Document:

Exhibit 4.21

 

CONFORMED COPY

 

 

AMENDMENT
AGREEMENT

 

 

Dated
27 November, 2009

 

 

for

 

 

LUXOTTICA U.S. HOLDINGS CORP.

 

as
Borrower

 

 

arranged
by

BANC OF AMERICA SECURITIES LIMITED

 

 

with

 

 

BANC OF AMERICA SECURITIES LIMITED

acting
as Agent

 

 

RELATING TO A BRIDGE FACILITY AGREEMENT
DATED

 

12 OCTOBER 2007 (as amended and
supplemented from time to time and, in particular, on 29 April 2008 and on
the date hereof)

 

 

 

Ref: DM/LL

 

Studio Legale Associato

 

in association with Linklaters LLP

 

 

CONTENTS

 

	
  CLAUSE

  	
   

  	
   

  	
  PAGE

  
	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
  Definitions and interpretation

  	
   

  	
  1

  
	
  2.

  	
  Conditions precedent

  	
   

  	
  3

  
	
  3.

  	
  Representations

  	
   

  	
  3

  
	
  4.

  	
  Amendment

  	
   

  	
  4

  
	
  5.

  	
  Transaction expenses

  	
   

  	
  4

  
	
  6.

  	
  Fees

  	
   

  	
  4

  
	
  7.

  	
  Miscellaneous

  	
   

  	
  4

  
	
  8.

  	
  Governing law

  	
   

  	
  4

  

 

THE SCHEDULES

 

	
  SCHEDULE

  	
   

  	
  PAGE

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 1 The Parties

  	
   

  	
  5

  
	
  SCHEDULE 2 Conditions precedent

  	
   

  	
  7

  
	
  SCHEDULE 3 Amendments to Original Facility Agreement

  	
   

  	
  8

  

 

i

 

THIS AGREEMENT is dated 27 November,
2009 and made in London, England between:

 

(1)         LUXOTTICA GROUP S.p.A. (the “Company”);

 

(2)         LUXOTTICA U.S. HOLDINGS CORP. as borrower (the “Borrower”);

 

(3)         LUXOTTICA GROUP S.p.A. and LUXOTTICA S.r.l., as original
guarantors (the “Original Guarantors”);

 

(4)         BANC OF AMERICA SECURITIES LIMITED as exclusive bookrunner
and mandated lead arranger (the “Arranger”);

 

(5)         BANK OF AMERICA, N.A. as underwriter (the “Underwriter”);

 

(6)         THE FINANCIAL INSTITUTION listed in Part II of
Schedule 1 as Lender (the “Lender”); and

 

(7)         BANC OF AMERICA SECURITIES LIMITED, as agent of the other
Finance Parties (the “Agent”).

 

WHEREAS:

 

(A)        As contemplated and referred to in the Prepayment Waiver
Request and in the Prepayment Notice (each term as defined below), it is the
intention of the Borrower to prepay in full on 30 November 2009 the
Commitment of UniCredito Italiano S.p.A. — New York Branch thus reducing the
Total Commitments from U.S.$150,000,000 to U.S.$75,000,000. It is intended
that, upon the prepayment in full on 30 November 2009 the Commitment of
UniCredito Italiano S.p.A. — New York Branch, UniCredito Italiano S.p.A. — New
York Branch and its Affiliates which are currently parties to the Original
Facility Agreement will cease to be parties to the Original Facility Agreement
in all and any relevant capacities and, in particular: (i) Bayerische
Hypo- und Vereinsbank AG, Milan Branch will cease to be an Arranger; (ii) UniCredito
Italiano S.p.A., New York Branch will cease to be a New Underwriter; and (iii) UniCredito
Italiano S.p.A., New York Branch will cease to be a New Lender;

 

(B)         as set out in Clause 4.1 (Amendments)
below, this Agreement will become effective as of the Effective Date and, in
particular, only after the full prepayment of the Commitment of UniCredito
Italiano S.p.A. — New York Branch; and

 

(C)         in light of the above, this Agreement is entered into only
among the Company, the Borrower, the Original Guarantors, Bank of America, N.A.
and Banc of America Securities Limited, considering that, as of the Effective
Date, these entities will be the only Finance Parties under the Original
Facility Agreement.

 

IT IS AGREED as follows:

 

1.           DEFINITIONS AND INTERPRETATION

 

1.1         Definitions

 

In this Agreement:

 

“Amended
Agreement” means the Original Facility Agreement, as amended by this
Agreement.

 

“Amendment Fee”
means a fee of 0.30 per cent. flat on the aggregate Extended Facility Amount.

 

“Effective Date” means:

 

1

 

(a)             with respect to the amendments listed in Schedule 3 (Amendments to Original Facility Agreement) of this Agreement
(other than those amendments set out in paragraphs 7 and 8 of that schedule),
the date on which the Commitment of Unicredito Italiano S.p.A. — New York
Branch is prepaid in full and, consequently, the Total Commitments are reduced
from U.S.$150,000,000 to U.S.$75,000,000 following the prepayment by the
Borrower contemplated in the Prepayment Waiver Request and the Prepayment
Notice; and

 

(b)             only with respect to the amendments listed paragraphs 7
and 8 of Schedule 3 (Amendments to Original
Facility Agreement) of this Agreement, the date that the Borrower
delivers to the Agent its first set of consolidated financial statements
accompanied by an independent auditors’ report in the form agreed under
the amendment agreement in relation to the US$ 1.5 Facility Agreement
dated October 12, 2007.

 

“Extended Facility Amount” means the amount equal to
U.S.$75,000,000 on the Effective Date.

 

“First Amendment and
Transfer Agreement” means the amendment and transfer agreement
entered into on 29 April, 2008 between, inter alios,
the Company, the Borrower, the Original Guarantors, the Arrangers, the Existing
Underwriters, the New Underwriters, the Existing Lenders, the New Lenders and
the Agent named in it in relation to the Original Facility Agreement, pursuant
to which, upon the condition of the reduction of the Total Commitments from
U.S.$500,000,000 to U.S.$150,000,000: (i) the Existing Lenders transferred
their Commitments, rights and obligations under the Original Facility Agreement
to the New Lenders, (ii) the Existing Underwriters transferred their
rights and obligations under Original Facility Agreement to the New
Underwriters, and (iii) certain terms and conditions of the Original
Facility Agreement were amended.

 

“Original
Facility Agreement” means the U.S.$500,000,000 bridge facility
agreement dated 12 October 2007 between the Company, the Borrower, the
Original Guarantors, the Agent, the Arrangers named in it and Bank of America,
N.A. and Bayerische Hypo- und Vereinsbank AG, New York Branch (part of
UniCredit Markets and Investment Banking) as Lender as amended and supplemented
by, respectively, the First Amendment and Transfer Agreement and the Prepayment
Waiver Request.

 

“Party” means a
party to this Agreement.

 

“Prepayment Notice” means the prepayment notice dated 23 November, 2009 from
the Borrower to the Agent pursuant to which the Borrower irrevocably undertakes
to make the voluntary  prepayment of
U.S.$75,000,000 (plus interest, fees and expenses, if any) to prepay in full
the Commitment of Unicredito Italiano S.p.A., New York branch under the
Original Facility Agreement.

 

“Prepayment Waiver Request”
means (i) the waiver request dated 23 November, 2009 from the Borrower and
the Original Guarantors to the Agent; and (ii) the consent to waiver
request letter dated 26 November, 2009 from the Agent (also on behalf of the
Majority Lenders) pursuant to which (A) certain terms and conditions of
the Original Facility Agreement have been waived in order, inter alia, to allow the  voluntary  prepayment of the participation of Unicredito Italiano 

 

2

 

S.p.A., New York branch only,
notwithstanding the pro-rata provisions under the Original Facility Agreement
(as amended by the First Amendment and Transfer Agreement); and (B) it has
been acknowledged that, upon voluntary  prepayment of
the Commitment of Unicredito Italiano S.p.A., New York branch, Unicredito
Italiano S.p.A., New York branch and its Affiliates which were at that time
parties to the Bridge Facility Agreement will cease to be parties to the Bridge
Facility Agreement in all and any relevant capacities.

 

1.2         Incorporation of defined terms

 

(a)         Unless a contrary indication appears, terms defined in the
Original Facility Agreement have the same meaning in this Agreement.

 

(b)         The principles of construction set out in the Original
Facility Agreement shall have effect as if set out in this Agreement.

 

1.3         Clauses

 

In this Agreement any reference to a “Clause”
or a “Schedule” is, unless the context otherwise requires, a reference to a
Clause or Schedule to this Agreement.

 

1.4         Third Party Rights

 

A person who is not a Party has no right
under the Contracts (Rights of Third Parties) Act 1999 to enforce or to enjoy
the benefit of any term of this Agreement.

 

1.5         Designation

 

In accordance with the Original Facility
Agreement, each of the Company and the Agent designate this Agreement as a
Finance Document.

 

2.           CONDITIONS PRECEDENT

 

The provisions of Clause 4 (Amendment) shall be effective only if (i) the
date referred to in paragraph (a) of the definition of Effective Date
occurs on or prior to 30 November 2009, and (ii) on or prior to the
date referred to in paragraph (a) of the definition of Effective Date, or
such other date as the Company and the Agent may agree, the Agent has received
all the documents and other evidence listed in SCHEDULE 2 (Conditions precedent) in form and
substance satisfactory to the Agent (acting reasonably). The Agent shall notify
the Company and the Lender promptly upon being so satisfied.

 

3.           REPRESENTATIONS

 

Each Obligor makes the Repeating
Representations by reference to the facts and circumstances then existing:

 

(a)            on the date of this Agreement; and

 

(b)           on the Effective Date,

 

but as if references in Clause 18 (Representations) of the Original Facility
Agreement to “the Finance Documents” were instead to this Agreement and, on the
Effective Date, to this Agreement and the Amended Agreement.

 

3

 

4.           AMENDMENT

 

4.1         Amendment

 

Subject to Clause 2 (Conditions Precedent) with effect from the Effective Date
the Original Facility Agreement shall be amended as set out in SCHEDULE 3 (Amendments to Original Facility Agreement).

 

4.2         Continuing obligations

 

The provisions of the Original Facility
Agreement and the other Finance Documents (including, without limitation, the
guarantee and indemnity of each Original Guarantor) shall, save as amended by
this Agreement, continue in full force and effect.

 

4.3         Guarantees

 

With respect to the guarantee granted by
any Original Guarantor incorporated in Italy pursuant to the Original Facility
Agreement, and without prejudice to the continuing validity and effectiveness
of any such guarantee, the Parties acknowledge that any amendment made under
this Agreement shall not result under Italian law in a novazione of (or have an effetto novativo on) the Original Facility
Agreement.

 

5.           TRANSACTION EXPENSES

 

The Borrower shall within five Business
Days of demand reimburse the Agent for the amount of all costs and expenses
(including pre-agreed legal fees) reasonably incurred by the Agent in
connection with the negotiation, preparation, printing and execution of this
Agreement and any other documents referred to in this Agreement.

 

6.           FEES

 

(a)         On the date referred to in paragraph (a) of the
definition of Effective Date, the Borrower shall pay to the Agent (for the
account of the Lender) the Amendment Fee.

 

(b)         Without prejudice to any other provision of this
Agreement, if the date referred to in paragraph (a) of the definition of
Effective Date has not occurred on or prior to 30 November, 2009 this Agreement
will not become effective and, consequently, the Amendment Fee will not be
payable.

 

7.           MISCELLANEOUS

 

7.1         Incorporation of terms

 

The provisions of Clause 31 (Notices) and Clause 39 (Enforcement) of the Original Facility
Agreement shall be incorporated into this Agreement as if set out in full in
this Agreement and as if references in those clauses to “this Agreement” and “any
Finance Document” are references to this Agreement.

 

7.2         Counterparts

 

This Agreement may be executed in any
number of counterparts, and this has the same effect as if the signatures on
the counterparts were on a single copy of this Agreement.

 

8.           GOVERNING LAW

 

This Agreement is governed by English
law.

 

This Agreement has been entered into on the date
stated at the beginning of this Agreement.

 

4

 

SCHEDULE 1

 

THE PARTIES

 

PART I

 

THE OBLIGORS

 

	
  Name of
  Borrower

  	
   

  	
  Registration
  number (or equivalent, if any)

  
	
   

  	
   

  	
   

  
	
  Luxottica U.S. Holdings Corp.

  	
   

  	
  Not applicable

  

 

	
  Name of
  Original Guarantor

  	
   

  	
  Registration
  number (or equivalent, if any)

  
	
   

  	
   

  	
   

  
	
  Luxottica Group S.p.A.

  	
   

  	
  00891030272

  
	
   

  	
   

  	
   

  
	
  Luxottica S.r.l.

  	
   

  	
  00064820251

  

 

5

 

PART II

 

THE LENDER

 

	
  Name of Lender

  	
   

  	
  Notice details

  	
   

  	
  Account details

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bank of America, N.A.

  	
   

  	
  On record with Agent

  	
   

  	
  On record with Agent

  

 

6

 

SCHEDULE
2

 

CONDITIONS
PRECEDENT

 

1.           Obligors

 

(a)         A certificate of each Obligor certifying that its
constitutional documents previously delivered to the Agent for the purposes of
the Original Facility Agreement have not been amended and remain in full force
and effect (or, if such constitutional documents have been amended since
delivery to the Agent for the purposes of the Original Facility Agreement, a
copy of such documents in their amended form).

 

(b)         A copy of a resolution of the board of directors of each
Obligor:

 

(i)             approving the terms of, and the transactions contemplated
by, this Agreement and resolving that it execute this Agreement;

 

(ii)            authorising a specified person or persons to execute this
Agreement on its behalf; and

 

(iii)           authorising a specified person or persons, on its behalf,
to sign and/or despatch all documents and notices to be signed and/or
despatched by it under or in connection with this Agreement.

 

(c)         A specimen of the signature of each person authorised by
the resolution referred to in paragraph (b) above, where not already held
by the Agent.

 

(d)         A certificate of an authorised signatory of the relevant
Obligor certifying that each copy document relating to it specified in this
SCHEDULE 2 is correct, complete and in full force and effect as at a date no
earlier than the date of this Agreement.

 

2.           Other
documents and evidence

 

(a)         Evidence that the prepayment contemplated in the
Prepayment Notice has been made.

 

(b)         A copy of the duly executed (i) Prepayment Waiver
Letter and (ii) Prepayment Notice.

 

(c)         Evidence that the fees, costs and expenses then due from
the Borrower on or prior to the Effective Date pursuant to Clause 5 (Transaction expenses) and Clause 6 (Fees) have been paid or will be paid on or
prior to the Effective Date.

 

7

 

SCHEDULE 3

 

AMENDMENTS TO ORIGINAL FACILITY
AGREEMENT

 

1.           On the cover page of the Original Facility Agreement,
delete the reference to “U.S.$150,000,000” and replace with “U.S.$75,000,000”.

 

2.           In Clause 1.1 (Definitions) of
the Original Facility Agreement, delete the definition of “Margin” and replace
with the following:

 

“ “Margin” means
1.90 per cent. per annum.”

 

3.           In Clause 1.1 (Definitions) of
the Original Facility Agreement, delete the definition of “Termination Date”
and replace with the following:

 

“ “Termination Date”
means the date falling 24 months after the Second Effective Date.”

 

4.           In Clause 1.1 (Definitions) of
the Original Facility Agreement, delete the definition of “Total Commitments”
and replace with the following:

 

“ “Total Commitments”
means the aggregate amount of the Commitments, being U.S.$75,000,000

 

5.           In Clause 1.1 (Definitions) of
the Original Facility Agreement, insert a definition of “Second Effective Date”
as follows:

 

“ “Second  Effective Date” means the date that the Borrower reduces the
Total Commitments from U.S.$150,000,000 to U.S.$75,000,000

 

6.           Delete Clause 6.1 (Repayment Loans)
of the Original Facility Agreement and replace with the following:

 

“6.1          Repayment Loans

 

The Borrower shall repay:

 

(a)           an amount equal to US.$25,000,000, on the date falling on
the first anniversary after the Second Effective Date; and

 

(b)           any other outstanding Loan made to it, on the Termination
Date.”

 

7.           Delete paragraph 18.11.1 of Clause 18.11 (Financial statements) of the Original Facility Agreement and
replace with the following:

 

8

 

“The
most recent audited Consolidated Financial Statements (in the case of the
Company) and consolidated financial statements accompanied by an independent
auditors’ report in the form agreed under the
amendment agreement in relation to the US$ 1.5 Facility Agreement
dated October 12, 2007(in case of the Borrower) delivered to the Agent
were prepared in accordance with GAAP consistently applied.

 

8.           Delete paragraph 18.11.2 of Clause 18.11 (Financial statements) of the Original Facility Agreement and
replace with the following:

 

“The most recent audited Consolidated Financial Statements (in the case of
the Company) and consolidated financial statements accompanied by an
independent auditors’ report in the form agreed under the
amendment agreement in relation to the US$ 1.5 Facility Agreement
dated October 12, 2007  (in the case of the Borrower), delivered to
the Agent in each case fairly represent the consolidated financial condition
and operations of the relevant company or the Group in the case of the Company
during the relevant financial year.”

 

9.           Delete paragraph 19.1.2 of Clause 19.1 (Financial statements) of the Original Facility Agreement and
replace with the following:

 

“The Borrower shall supply or procure
the supply to the Agent (in sufficient copies for all the Lenders) as soon as
practicable after they become available, but in any event within 150 days of
each of its financial years its consolidated financial statements accompanied
by an independent auditors’ report in the form agreed under the
amendment agreement in relation to the US$ 1.5 Facility Agreement
dated October 12, 2007.”

 

10.         Delete the table in Part 2 (the Lenders)
of Schedule 1 (The Parties) of the Original
Facility Agreement and replace it with the table below:

 

	
  Name of Lender

  	
   

  	
  Commitment

  (in U.S.$)

  
	
   

  	
   

  	
   

  
	
  Bank of America, N.A.

  	
   

  	
  75,000,000

  
	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
  U.S.$75,000,000

  

 

11.         In Schedules 3 (Requests), 5 (Form of Transfer Certificate), 6 (Form of
Compliance Certificate) and 12 (Additional Guarantors)
of the Original Facility Agreement, delete all references to “U.S.$150,000,000”
and replace with “U.S.$75,000,000”.

 

9

 

SIGNATURES

 

	
  The Company

  	
   

  
	
  LUXOTTICA GROUP S.p.A.

  	
   

  
	
   

  	
   

  
	
  /s/ ENRICO CAVATORTA

  	
   

  
	
  By: E. Cavatorta

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  The Borrower

  	
   

  
	
  LUXOTTICA U.S. HOLDINGS CORP.

  	
   

  
	
   

  	
   

  
	
  /s/ ENRICO CAVATORTA

  	
   

  
	
  By: E. Cavatorta

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  The Original Guarantors

  	
   

  
	
  LUXOTTICA GROUP S.p.A.

  	
   

  
	
   

  	
   

  
	
  /s/ ENRICO CAVATORTA

  	
   

  
	
  By: E. Cavatorta

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  LUXOTTICA S.r.l.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ ENRICO CAVATORTA

  	
   

  
	
  By: E. Cavatorta

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  The Arranger

  	
   

  
	
  BANC OF AMERICA SECURITIES LIMITED

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ MAURO MAIOLI

  	
   

  
	
  By: Mauro Maioli

  	
   

  

 

10

 

	
  The Underwriter

  	
   

  
	
  BANK OF AMERICA, N.A.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ MAURO MAIOLI

  	
   

  
	
  By: Mauro Maioli

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  The Lender

  	
   

  
	
  BANK OF AMERICA, N.A.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ MAURO MAIOLI

  	
   

  
	
  By: Mauro Maioli

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  The Agent

  	
   

  
	
  BANC OF AMERICA SECURITIES LIMITED

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ MAURO MAIOLI

  	
   

  
	
  By: Mauro Maioli

  	
   

  

 

11Exhibit 10.1

 

Conformed Copy

	
   

  	
   

  

 

Published CUSIP Number: 
89189EAA3

 

CREDIT AGREEMENT

 

Dated as of January 1, 2010

 

among

 

TOWERS WATSON & CO. (1)

and

CERTAIN SUBSIDIARIES,

as Borrowers,

 

BANK OF AMERICA, N.A.,

as Administrative Agent, Swing Line Lender 

and 

an L/C Issuer,

 

PNC BANK, NATIONAL ASSOCIATION,

as Syndication Agent,

 

HSBC BANK USA, NATIONAL ASSOCIATION,

SUNTRUST BANK

and

U.S. BANK, NATIONAL ASSOCIATION,

as Co-Documentation Agents

 

and

 

The Other Lenders Party Hereto

 

BANC OF AMERICA SECURITIES LLC,

and

PNC CAPITAL MARKETS, LLC

as

Joint Lead Arrangers and Joint Book Managers

	
   

  	
   

  

 

(1) Formerly known as Jupiter Saturn Holding Company.

 

 

TABLE OF
CONTENTS

 

	
  Section

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ARTICLE I.

  DEFINITIONS AND ACCOUNTING TERMS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  1.01

  	
  Defined Terms

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
  1.02

  	
  Other Interpretive Provisions

  	
   

  	
  29

  
	
   

  	
   

  	
   

  	
   

  
	
  1.03

  	
  Accounting Terms

  	
   

  	
  30

  
	
   

  	
   

  	
   

  	
   

  
	
  1.04

  	
  Rounding

  	
   

  	
  31

  
	
   

  	
   

  	
   

  	
   

  
	
  1.05

  	
  Exchange Rates; Currency Equivalents

  	
   

  	
  31

  
	
   

  	
   

  	
   

  	
   

  
	
  1.06

  	
  Additional Alternative Currencies

  	
   

  	
  32

  
	
   

  	
   

  	
   

  	
   

  
	
  1.07

  	
  Change of Currency

  	
   

  	
  32

  
	
   

  	
   

  	
   

  	
   

  
	
  1.08

  	
  Times of Day

  	
   

  	
  33

  
	
   

  	
   

  	
   

  	
   

  
	
  1.09

  	
  Letter of Credit Amounts

  	
   

  	
  33

  
	
   

  	
   

  	
   

  	
   

  
	
  1.10

  	
  Accounting Adjustments

  	
   

  	
  33

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ARTICLE II.

  THE COMMITMENTS AND CREDIT EXTENSIONS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2.01

  	
  Revolving Loans

  	
   

  	
  34

  
	
   

  	
   

  	
   

  	
   

  
	
  2.02

  	
  Borrowings, Conversions and Continuations of Revolving Loans

  	
   

  	
  34

  
	
   

  	
   

  	
   

  	
   

  
	
  2.03

  	
  Letters of Credit

  	
   

  	
  36

  
	
   

  	
   

  	
   

  	
   

  
	
  2.04

  	
  Swing Line Loans

  	
   

  	
  47

  
	
   

  	
   

  	
   

  	
   

  
	
  2.05

  	
  Prepayments

  	
   

  	
  50

  
	
   

  	
   

  	
   

  	
   

  
	
  2.06

  	
  Termination or Reduction of Commitments

  	
   

  	
  51

  
	
   

  	
   

  	
   

  	
   

  
	
  2.07

  	
  Repayment of Loans

  	
   

  	
  52

  
	
   

  	
   

  	
   

  	
   

  
	
  2.08

  	
  Interest

  	
   

  	
  52

  
	
   

  	
   

  	
   

  	
   

  
	
  2.09

  	
  Fees

  	
   

  	
  53

  
	
   

  	
   

  	
   

  	
   

  
	
  2.10

  	
  Computation of Interest and Fees; Retroactive Adjustments of
  Applicable Rate

  	
   

  	
  53

  
	
   

  	
   

  	
   

  	
   

  
	
  2.11

  	
  Evidence of Debt

  	
   

  	
  54

  
	
   

  	
   

  	
   

  	
   

  
	
  2.12

  	
  Payments Generally; Administrative Agent’s Clawback

  	
   

  	
  54

  
	
   

  	
   

  	
   

  	
   

  
	
  2.13

  	
  Sharing of Payments by Lenders

  	
   

  	
  56

  
	
   

  	
   

  	
   

  	
   

  
	
  2.14

  	
  Designated Borrowers

  	
   

  	
  57

  
	
   

  	
   

  	
   

  	
   

  
	
  2.15

  	
  Increase in Commitments

  	
   

  	
  59

  
	
   

  	
   

  	
   

  	
   

  
	
  2.16

  	
  Cash Collateral and Other Credit Support

  	
   

  	
  60

  
	
   

  	
   

  	
   

  	
   

  
	
  2.17

  	
  Defaulting Lenders

  	
   

  	
  61

  

 

i

 

	
   

  	
  ARTICLE III.

  TAXES, YIELD PROTECTION AND ILLEGALITY

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  3.01

  	
  Taxes

  	
   

  	
  63

  
	
   

  	
   

  	
   

  	
   

  
	
  3.02

  	
  Illegality

  	
   

  	
  68

  
	
   

  	
   

  	
   

  	
   

  
	
  3.03

  	
  Inability to Determine Rates

  	
   

  	
  68

  
	
   

  	
   

  	
   

  	
   

  
	
  3.04

  	
  Increased Costs; Reserves on Eurocurrency Rate Loans

  	
   

  	
  69

  
	
   

  	
   

  	
   

  	
   

  
	
  3.05

  	
  Compensation for Losses

  	
   

  	
  71

  
	
   

  	
   

  	
   

  	
   

  
	
  3.06

  	
  Mitigation Obligations; Replacement of Lenders

  	
   

  	
  72

  
	
   

  	
   

  	
   

  	
   

  
	
  3.07

  	
  Survival

  	
   

  	
  72

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ARTICLE IV.

  CONDITIONS PRECEDENT TO EFFECTIVENESS AND CREDIT EXTENSIONS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  4.01

  	
  Conditions to Effectiveness of this Agreement

  	
   

  	
  72

  
	
   

  	
   

  	
   

  	
   

  
	
  4.02

  	
  Conditions to Initial Funding

  	
   

  	
  74

  
	
   

  	
   

  	
   

  	
   

  
	
  4.03

  	
  Conditions to All Credit Extensions

  	
   

  	
  78

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ARTICLE V.

  REPRESENTATIONS AND WARRANTIES

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  5.01

  	
  Existence, Qualification and Power

  	
   

  	
  79

  
	
   

  	
   

  	
   

  	
   

  
	
  5.02

  	
  Authorization; No Contravention

  	
   

  	
  79

  
	
   

  	
   

  	
   

  	
   

  
	
  5.03

  	
  Governmental Authorization; Other Consents

  	
   

  	
  79

  
	
   

  	
   

  	
   

  	
   

  
	
  5.04

  	
  Binding Effect

  	
   

  	
  79

  
	
   

  	
   

  	
   

  	
   

  
	
  5.05

  	
  Financial Statements; No Material Adverse Effect

  	
   

  	
  80

  
	
   

  	
   

  	
   

  	
   

  
	
  5.06

  	
  Litigation

  	
   

  	
  81

  
	
   

  	
   

  	
   

  	
   

  
	
  5.07

  	
  No Default

  	
   

  	
  81

  
	
   

  	
   

  	
   

  	
   

  
	
  5.08

  	
  Ownership of Property; Liens

  	
   

  	
  81

  
	
   

  	
   

  	
   

  	
   

  
	
  5.09

  	
  Environmental Compliance

  	
   

  	
  81

  
	
   

  	
   

  	
   

  	
   

  
	
  5.10

  	
  Insurance

  	
   

  	
  81

  
	
   

  	
   

  	
   

  	
   

  
	
  5.11

  	
  Taxes

  	
   

  	
  81

  
	
   

  	
   

  	
   

  	
   

  
	
  5.12

  	
  ERISA Compliance

  	
   

  	
  82

  
	
   

  	
   

  	
   

  	
   

  
	
  5.13

  	
  Subsidiaries; Equity Interests

  	
   

  	
  82

  
	
   

  	
   

  	
   

  	
   

  
	
  5.14

  	
  Margin Regulations; Investment Company Act

  	
   

  	
  83

  
	
   

  	
   

  	
   

  	
   

  
	
  5.15

  	
  Disclosure

  	
   

  	
  83

  
	
   

  	
   

  	
   

  	
   

  
	
  5.16

  	
  Compliance with Laws

  	
   

  	
  83

  
	
   

  	
   

  	
   

  	
   

  
	
  5.17

  	
  Taxpayer Identification Number; Other Identifying
  Information

  	
   

  	
  83

  

 

ii

 

	
  5.18

  	
  Intellectual Property; Licenses, Etc

  	
   

  	
  84

  
	
   

  	
   

  	
   

  	
   

  
	
  5.19

  	
  Solvency

  	
   

  	
  84

  
	
   

  	
   

  	
   

  	
   

  
	
  5.20

  	
  Casualty, Etc.

  	
   

  	
  84

  
	
   

  	
   

  	
   

  	
   

  
	
  5.21

  	
  Labor Relations

  	
   

  	
  84

  
	
   

  	
   

  	
   

  	
   

  
	
  5.22

  	
  OFAC

  	
   

  	
  84

  
	
   

  	
   

  	
   

  	
   

  
	
  5.23

  	
  Representations as to Foreign Obligors

  	
   

  	
  85

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ARTICLE VI.

  AFFIRMATIVE COVENANTS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  6.01

  	
  Financial Statements

  	
   

  	
  86

  
	
   

  	
   

  	
   

  	
   

  
	
  6.02

  	
  Certificates; Other Information

  	
   

  	
  87

  
	
   

  	
   

  	
   

  	
   

  
	
  6.03

  	
  Notices

  	
   

  	
  88

  
	
   

  	
   

  	
   

  	
   

  
	
  6.04

  	
  Payment of Obligations

  	
   

  	
  89

  
	
   

  	
   

  	
   

  	
   

  
	
  6.05

  	
  Preservation of Existence, Etc.

  	
   

  	
  89

  
	
   

  	
   

  	
   

  	
   

  
	
  6.06

  	
  Maintenance of Properties

  	
   

  	
  90

  
	
   

  	
   

  	
   

  	
   

  
	
  6.07

  	
  Maintenance of Insurance

  	
   

  	
  90

  
	
   

  	
   

  	
   

  	
   

  
	
  6.08

  	
  Compliance with Laws

  	
   

  	
  90

  
	
   

  	
   

  	
   

  	
   

  
	
  6.09

  	
  Books and Records

  	
   

  	
  90

  
	
   

  	
   

  	
   

  	
   

  
	
  6.10

  	
  Inspection Rights

  	
   

  	
  90

  
	
   

  	
   

  	
   

  	
   

  
	
  6.11

  	
  Additional Subsidiary Guarantors

  	
   

  	
  91

  
	
   

  	
   

  	
   

  	
   

  
	
  6.12

  	
  Initial Funding Date

  	
   

  	
  91

  
	
   

  	
   

  	
   

  	
   

  
	
  6.13

  	
  Senior Subordinated Notes

  	
   

  	
  91

  
	
   

  	
   

  	
   

  	
   

  
	
  6.14

  	
  Additional Equity Interests

  	
   

  	
  91

  
	
   

  	
   

  	
   

  	
   

  
	
  6.15

  	
  Further Assurances

  	
   

  	
  91

  
	
   

  	
   

  	
   

  	
   

  
	
  6.16

  	
  Foreign Subsidiary Ownership

  	
   

  	
  91

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ARTICLE VII.

  NEGATIVE COVENANTS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  7.01

  	
  Liens

  	
   

  	
  92

  
	
   

  	
   

  	
   

  	
   

  
	
  7.02

  	
  Investments

  	
   

  	
  93

  
	
   

  	
   

  	
   

  	
   

  
	
  7.03

  	
  Indebtedness

  	
   

  	
  95

  
	
   

  	
   

  	
   

  	
   

  
	
  7.04

  	
  Fundamental Changes

  	
   

  	
  97

  
	
   

  	
   

  	
   

  	
   

  
	
  7.05

  	
  Dispositions

  	
   

  	
  97

  
	
   

  	
   

  	
   

  	
   

  
	
  7.06

  	
  Restricted Payments

  	
   

  	
  99

  
	
   

  	
   

  	
   

  	
   

  
	
  7.07

  	
  Change in Nature of Business

  	
   

  	
  100

  

 

iii

 

	
  7.08

  	
  Transactions with Affiliates

  	
   

  	
  100

  
	
   

  	
   

  	
   

  	
   

  
	
  7.09

  	
  Burdensome Agreements

  	
   

  	
  100

  
	
   

  	
   

  	
   

  	
   

  
	
  7.10

  	
  Use of Proceeds

  	
   

  	
  101

  
	
   

  	
   

  	
   

  	
   

  
	
  7.11

  	
  Sale and Leaseback Transactions

  	
   

  	
  101

  
	
   

  	
   

  	
   

  	
   

  
	
  7.12

  	
  Amendment to Material Documents

  	
   

  	
  101

  
	
   

  	
   

  	
   

  	
   

  
	
  7.13

  	
  Modification of Certain Documents

  	
   

  	
  101

  
	
   

  	
   

  	
   

  	
   

  
	
  7.14

  	
  Company Activities

  	
   

  	
  101

  
	
   

  	
   

  	
   

  	
   

  
	
  7.15

  	
  Financial Covenants

  	
   

  	
  101

  
	
   

  	
   

  	
   

  	
   

  
	
  7.16

  	
  Approvals and Authorizations

  	
   

  	
  102

  
	
   

  	
   

  	
   

  	
   

  
	
  7.17

  	
  Changes in Accounting Practices

  	
   

  	
  102

  
	
   

  	
   

  	
   

  	
   

  
	
  7.18

  	
  Post-Funding Deliveries

  	
   

  	
  102

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ARTICLE VIII.

  EVENTS OF DEFAULT AND REMEDIES

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  8.01

  	
  Events of Default

  	
   

  	
  102

  
	
   

  	
   

  	
   

  	
   

  
	
  8.02

  	
  Remedies Upon Event of Default

  	
   

  	
  105

  
	
   

  	
   

  	
   

  	
   

  
	
  8.03

  	
  Application of Funds

  	
   

  	
  105

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ARTICLE IX.

  ADMINISTRATIVE AGENT

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  9.01

  	
  Appointment and Authority

  	
   

  	
  106

  
	
   

  	
   

  	
   

  	
   

  
	
  9.02

  	
  Rights as a Lender

  	
   

  	
  107

  
	
   

  	
   

  	
   

  	
   

  
	
  9.03

  	
  Exculpatory Provisions

  	
   

  	
  107

  
	
   

  	
   

  	
   

  	
   

  
	
  9.04

  	
  Reliance by Administrative Agent

  	
   

  	
  108

  
	
   

  	
   

  	
   

  	
   

  
	
  9.05

  	
  Delegation of Duties

  	
   

  	
  108

  
	
   

  	
   

  	
   

  	
   

  
	
  9.06

  	
  Resignation of Administrative Agent

  	
   

  	
  109

  
	
   

  	
   

  	
   

  	
   

  
	
  9.07

  	
  Non-Reliance on Administrative Agent and Other Lenders

  	
   

  	
  110

  
	
   

  	
   

  	
   

  	
   

  
	
  9.08

  	
  No Other Duties, Etc.

  	
   

  	
  110

  
	
   

  	
   

  	
   

  	
   

  
	
  9.09

  	
  Administrative Agent May File Proofs of Claim

  	
   

  	
  110

  
	
   

  	
   

  	
   

  	
   

  
	
  9.10

  	
  Collateral and Guaranty Matters

  	
   

  	
  111

  
	
   

  	
   

  	
   

  	
   

  
	
  9.11

  	
  Secured Cash Management Agreements and Secured Hedge Agreements

  	
   

  	
  111

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ARTICLE X.

  MISCELLANEOUS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  10.01

  	
  Amendments, Etc.

  	
   

  	
  112

  
	
   

  	
   

  	
   

  	
   

  
	
  10.02

  	
  Notices; Effectiveness; Electronic Communication

  	
   

  	
  113

  

 

iv

 

	
  10.03

  	
  No Waiver; Cumulative Remedies; Enforcement

  	
   

  	
  115

  
	
   

  	
   

  	
   

  	
   

  
	
  10.04

  	
  Expenses; Indemnity; Damage Waiver

  	
   

  	
  116

  
	
   

  	
   

  	
   

  	
   

  
	
  10.05

  	
  Payments Set Aside

  	
   

  	
  118

  
	
   

  	
   

  	
   

  	
   

  
	
  10.06

  	
  Successors and Assigns

  	
   

  	
  118

  
	
   

  	
   

  	
   

  	
   

  
	
  10.07

  	
  Treatment of Certain Information; Confidentiality

  	
   

  	
  123

  
	
   

  	
   

  	
   

  	
   

  
	
  10.08

  	
  Right of Setoff

  	
   

  	
  124

  
	
   

  	
   

  	
   

  	
   

  
	
  10.09

  	
  Interest Rate Limitation

  	
   

  	
  124

  
	
   

  	
   

  	
   

  	
   

  
	
  10.10

  	
  Counterparts; Integration; Effectiveness

  	
   

  	
  125

  
	
   

  	
   

  	
   

  	
   

  
	
  10.11

  	
  Survival of Representations and Warranties

  	
   

  	
  125

  
	
   

  	
   

  	
   

  	
   

  
	
  10.12

  	
  Severability

  	
   

  	
  125

  
	
   

  	
   

  	
   

  	
   

  
	
  10.13

  	
  Replacement of Lenders

  	
   

  	
  126

  
	
   

  	
   

  	
   

  	
   

  
	
  10.14

  	
  Governing Law; Jurisdiction; Etc.

  	
   

  	
  126

  
	
   

  	
   

  	
   

  	
   

  
	
  10.15

  	
  Waiver of Jury Trial

  	
   

  	
  128

  
	
   

  	
   

  	
   

  	
   

  
	
  10.16

  	
  No Advisory or Fiduciary Responsibility

  	
   

  	
  128

  
	
   

  	
   

  	
   

  	
   

  
	
  10.17

  	
  Electronic Execution of Assignments and Certain Other Documents

  	
   

  	
  128

  
	
   

  	
   

  	
   

  	
   

  
	
  10.18

  	
  USA PATRIOT Act Notice

  	
   

  	
  129

  
	
   

  	
   

  	
   

  	
   

  
	
  10.19

  	
  Judgment Currency

  	
   

  	
  129

  
	
   

  	
   

  	
   

  	
   

  
	
  SIGNATURES

  	
   

  	
  S-1

  

 

v

 

SIGNING DATE SCHEDULES

 

	
  1.01A

  	
   

  	
  Mandatory Cost Formulae

  
	
  2.01

  	
   

  	
  Commitments and Applicable Percentages

  
	
  4.01(a)(iii)

  	
   

  	
  Jurisdictions of Existence

  
	
  5.11

  	
   

  	
  Tax Sharing Agreements

  
	
  5.13

  	
   

  	
  Subsidiaries; Other Equity Investments

  
	
  5.17

  	
   

  	
  Identification Numbers for Designated Borrowers that are Foreign
  Subsidiaries

  
	
  7.01

  	
   

  	
  Existing Liens

  
	
  7.02

  	
   

  	
  Existing Investments

  
	
  7.03(c)

  	
   

  	
  Existing Indebtedness

  
	
  7.03(f)

  	
   

  	
  Existing Guarantees of Operating Leases

  
	
  10.02

  	
   

  	
  Administrative Agent’s Office; Certain Addresses for Notices

  

 

INITIAL FUNDING DATE  SCHEDULES

 

	
  1.01B

  	
   

  	
  Existing Letters of Credit

  
	
  4.02(b)(v)

  	
   

  	
  Jurisdictions of Existence

  
	
  5.05

  	
   

  	
  Supplement to Interim Financial Statements

  
	
  5.11

  	
   

  	
  Tax Sharing Agreements

  
	
  5.13

  	
   

  	
  Subsidiaries; Other Equity Investments

  
	
  5.17

  	
   

  	
  Identification Numbers for Designated Borrowers that are Foreign
  Subsidiaries

  
	
  7.01

  	
   

  	
  Existing Liens

  
	
  7.02

  	
   

  	
  Existing Investments

  
	
  7.03(c)

  	
   

  	
  Existing Indebtedness

  
	
  7.03(f)

  	
   

  	
  Existing Guarantees of Operating Leases

  
	
  7.18

  	
   

  	
  Post Funding Deliveries

  

 

EXHIBITS

 

Form of

 

	
  A

  	
   

  	
  Revolving Loan Notice

  
	
  B

  	
   

  	
  Swing Line Loan Notice

  
	
  C

  	
   

  	
  Note

  
	
  D

  	
   

  	
  Compliance Certificate

  
	
  E-1

  	
   

  	
  Assignment and Assumption

  
	
  E-2

  	
   

  	
  Administrative Questionnaire

  
	
  F

  	
   

  	
  Company Guaranty

  
	
  G

  	
   

  	
  Subsidiary Guaranty

  
	
  H

  	
   

  	
  Designated Borrower Request and Assumption Agreement

  
	
  I

  	
   

  	
  Designated Borrower Notice

  
	
  J

  	
   

  	
  Report of Letter of Credit Information

  
	
  K

  	
   

  	
  Pledge Agreement

  

 

vi

 

CREDIT
AGREEMENT

 

This CREDIT AGREEMENT (“Agreement”) is entered
into as of January 1, 2010,  among TOWERS
WATSON & CO. (f/k/a Jupiter Saturn Holding Company), a Delaware
corporation (the “Company”), certain Subsidiaries of the Company party
hereto pursuant to Section 2.14 (each a “Designated Borrower”
and, together with the Company, the “Borrowers” and, each a “Borrower”),
each lender from time to time party hereto (collectively, the “Lenders”
and individually, a “Lender”), and BANK OF AMERICA, N.A., as Administrative Agent, Swing Line Lender and an L/C
Issuer.

 

The Company has requested that the Lenders provide a
revolving credit facility, and the Lenders have indicated their willingness to
lend and each L/C Issuer has indicated its willingness to issue letters of
credit, in each case on the terms and conditions set forth herein.

 

In consideration of the mutual covenants and
agreements herein contained, the parties hereto covenant and agree as follows:

 

ARTICLE I.

DEFINITIONS AND ACCOUNTING TERMS

 

1.01        Defined Terms.  As used in this Agreement, the following
terms shall have the meanings set forth below:

 

“Acquired Indebtedness” has the meaning
specified in Section 7.03(l).

 

“Acquisition”, by any Person, means the
acquisition by such Person, in a single transaction or in a series of related
transactions, of all or any substantial portion of the property of another
Person or at least a majority of the voting stock of another Person, in each
case whether or not involving a merger or consolidation with such other Person
and whether for cash, property, services, assumption of Indebtedness,
securities or otherwise.

 

“Administrative Agent” means Bank of America in
its capacity as administrative agent under any of the Loan Documents, or any
successor administrative agent appointed pursuant to Section 9.06.

 

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

 

“Administrative Questionnaire” means an
Administrative Questionnaire in substantially the form of Exhibit E-2
or any other form approved by the Administrative Agent.

 

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

 

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

 

1

 

“Agreement” means this Credit Agreement.

 

“Alternative Currency” means each of Euro,
Sterling, Yen, Canadian Dollars, Australian Dollars, New Zealand Dollars, Hong
Kong Dollars and each other currency (other than Dollars) that is approved in
accordance with Section 1.06.

 

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

 

“Alternative Currency Sublimit” means an amount
equal to $250,000,000.  The Alternative
Currency Sublimit is part of, and not in addition to, the Aggregate
Commitments.

 

“Applicable Percentage” means with respect to
any Lender at any time, the percentage (carried out to the ninth decimal place)
of the Aggregate Commitments represented by such Lender’s Commitment at such
time.  If the commitment of each Lender
to make Loans and the obligation of each L/C Issuer to make L/C Credit
Extensions have been terminated pursuant to Section 8.02 or if the
Aggregate Commitments have expired, then the Applicable Percentage of each
Lender shall be determined based on the Applicable Percentage of such Lender
most recently in effect, giving effect to any subsequent assignments.  The initial Applicable Percentage of each
Lender is set forth opposite the name of such Lender on Schedule 2.01 or
in the Assignment and Assumption pursuant to which such Lender becomes a party
hereto, as applicable.

 

“Applicable Rate” means the following
percentages per annum, based upon the Consolidated Leverage Ratio as set forth
in the most recent Compliance Certificate received by the Administrative Agent
pursuant to Section 6.02(b):

 

Applicable Rate

 

	
  Pricing

  Level

  	
   

  	
  Consolidated Leverage Ratio

  	
   

  	
  Commitment

  Fee

  	
   

  	
  Eurocurrency Rate

  Loans and Letters of

  Credit

  	
   

  	
  Base Rate

  Loans

  	
   

  
	
  1

  	
   

  	
  Less than 1.00 to 1.00

  	
   

  	
  0.500

  	
  %

  	
  2.500

  	
  %

  	
  1.500

  	
  %

  
	
  2

  	
   

  	
  Greater than or equal to 1.00 to 1.00 but less than 1.50 to 1.00

  	
   

  	
  0.625

  	
  %

  	
  3.000

  	
  %

  	
  2.000

  	
  %

  
	
  3

  	
   

  	
  Greater than or equal to 1.50

  	
   

  	
  0.750

  	
  %

  	
  3.250

  	
  %

  	
  2.250

  	
  %

  

 

Any increase or decrease in the Applicable Rate
resulting from a change in the Consolidated Leverage Ratio shall become
effective as of the first Business Day immediately following the date a Compliance
Certificate is delivered pursuant to Section 6.02(b); provided,
however, that if a Compliance Certificate is not delivered when due in
accordance with such Section, then, upon the request of the Required Lenders,
Pricing Level 3 shall apply as of the first Business Day after the date on
which such Compliance Certificate was required to have been delivered and shall
remain in effect until the date on which such Compliance Certificate is 

 

2

 

delivered; provided
further that at any time an Event of Default exists and is continuing, if the
Company delivers a Compliance Certificate that demonstrates a Consolidated
Leverage Ratio that would result in a decrease in the Applicable Rate, such
decrease shall not take effect until such Event of Default has been cured or
waived in accordance with the terms hereof. 
The Applicable Rate in effect from the Signing Date through the Initial
Funding Date shall be determined based upon Pricing Level 1.  The Applicable Rate in effect from
the Initial Funding Date through the first Business Day immediately following
the date the first Compliance Certificate is delivered pursuant to Section 6.02(b) shall
be determined based upon the Consolidated Leverage Ratio set forth in the Compliance
Certificate delivered pursuant to Section 4.02(b)(xiii).

 

Notwithstanding anything to the contrary contained in
this definition, the determination of the Applicable Rate for any period shall
be subject to the provisions of Section 2.10(b).

 

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

 

“Applicant Borrower” has the meaning specified
in Section 2.14.

 

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

 

“Arrangers” means Banc of America  Securities LLC and PNC Capital Markets, LLC, in their
capacity as joint lead arrangers and joint book managers.

 

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

 

“Assignment and Assumption” means an assignment
and assumption entered into by a Lender and an Eligible Assignee (with the
consent of any party whose consent is required by Section 10.06(b)),
and accepted by the Administrative Agent, in substantially the form of Exhibit E-1
or any other form approved by the Administrative Agent.

 

“Attributable Indebtedness” means, on any date,
(a) in respect of any capital lease of any Person, the capitalized amount
thereof that would appear on a balance sheet of such Person prepared as of such
date in accordance with GAAP, and (b) in respect of any Synthetic Lease
Obligation, the capitalized amount of the remaining lease payments under the
relevant lease that would appear on a balance sheet of such Person prepared as
of such date in accordance with GAAP if such lease were accounted for as a
capital lease.

 

“Australian Dollar” or “Aus $” means the
lawful currency of Australia.

 

“Availability Period” means the period from and
including the Initial Funding Date to the earliest of (a) the Maturity
Date, (b) the date of termination of the Aggregate Commitments 

 

3

 

pursuant to Section 2.06,
and (c) the date of termination of the commitment of each Lender to make
Loans and of the obligation of each L/C Issuer to make L/C Credit Extensions
pursuant to Section 8.02.

 

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

 

“Base Rate” means for any day a fluctuating
rate per annum equal to the highest of (a) the Federal Funds Rate plus 1/2
of 1%, (b) the rate of interest in effect for such day as publicly
announced from time to time by Bank of America as its “prime rate,” and (c) the
Eurocurrency Rate (determined in accordance with clause (b) of the
definition thereof) plus 1.00%.  The “prime
rate” is a rate set by Bank of America based upon various factors including
Bank of America’s costs and desired return, general economic conditions and
other factors, and is used as a reference point for pricing some loans, which
may be priced at, above, or below such announced rate.  Any change in such “prime rate” announced by
Bank of America shall take effect at the opening of business on the day
specified in the public announcement of such change.

 

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

 

“Base Rate Revolving Loan” means a Revolving
Loan that is a Base Rate Loan.

 

“Borrower” and “Borrowers” each has the
meaning specified in the introductory paragraph hereto.

 

“Borrower Materials” has the meaning specified
in Section 6.02.

 

“Borrowing” means a Revolving Borrowing or a
Swing Line Borrowing, as the context may require.

 

“Business Day” means any day other than a
Saturday, Sunday or other day on which commercial banks are authorized to close
under the Laws of, or are in fact closed in, the state where the Administrative
Agent’s Office with respect to Obligations denominated in Dollars is located
and:

 

(a)           if such day relates to any interest rate
settings as to a Eurocurrency Rate Loan denominated in Dollars, any fundings,
disbursements, settlements and payments in Dollars in respect of any such
Eurocurrency Rate Loan, or any other dealings in Dollars to be carried out
pursuant to this Agreement in respect of any such Eurocurrency Rate Loan, means
any such day that is also a London Banking Day;

 

(b)           if such day relates to any interest rate
settings as to a Eurocurrency Rate Loan denominated in Euro, any fundings,
disbursements, settlements and payments in Euro in respect of any such
Eurocurrency Rate Loan, or any other dealings in Euro to be carried out
pursuant to this Agreement in respect of any such Eurocurrency Rate Loan, means
a TARGET Day;

 

4

 

(c)           if such day relates to any interest rate
settings as to a Eurocurrency Rate Loan denominated in a currency other than
Dollars or Euro, means any such day on which dealings in deposits in the
relevant currency are conducted by and between banks in the London or other
applicable offshore interbank market for such currency; and

 

(d)           if such day relates to any fundings,
disbursements, settlements and payments in a currency other than Dollars or
Euro in respect of a Eurocurrency Rate Loan denominated in a currency other
than Dollars or Euro, or any other dealings in any currency other than Dollars
or Euro to be carried out pursuant to this Agreement in respect of any such
Eurocurrency Rate Loan (other than any interest rate settings), means any such
day on which banks are open for foreign exchange business in the principal
financial center of the country of such currency.

 

“Canadian Dollar” or “Can $” means the
lawful currency of Canada.

 

“Canadian Loan Program” shall mean Watson Wyatt’s
employee loan program established for the benefit of its Canadian employees.

 

“Cash Collateralize” means to pledge and
deposit with or deliver to the Administrative Agent, for the benefit of the
respective L/C Issuers, Existing L/C Issuers or the Swing Line Lender (as
applicable) and the Lenders, as collateral for L/C Obligations, Obligations in
respect of Swing Line Loans, or obligations of Lenders to fund participations
in respect of either thereof (as the context may require), cash or deposit
account balances pursuant to documentation in form and substance reasonably
satisfactory to (a) the Administrative Agent and (b) the respective
L/C Issuers, Existing L/C Issuers or the Swing Line Lender (as applicable). “Cash
Collateral” shall have a meaning correlative to the foregoing.  Notwithstanding anything to the contrary
contained in this Agreement, neither the Company nor any other Loan Party shall
be required to pledge and deposit, and the terms “Cash Collateralize” and “Cash
Collateral” shall be deemed not to refer to, cash or deposit account balances
subject to existing restrictions or encumbrances.

 

“Cash Management Agreement” means any agreement
to provide cash management services, including treasury, depository, overdraft,
credit, purchasing or debit card, electronic funds transfer and other cash management
arrangements.

 

“Cash Management Bank” means any Person that, (a) at
the time it enters into a Cash Management Agreement, is a Lender, or (b) at
the time it becomes a Lender, is a party to a Cash Management Agreement with a
Loan Party in each case in its capacity as a party to such Cash Management
Agreement.

 

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

 

“Change of Control” means an event or series of
events by which:

 

5

 

(a)           any “person” or “group” (as such terms
are used in Sections 13(d) and 14(d) of the Securities Exchange Act
of 1934, but excluding any employee benefit plan of such person or its
subsidiaries, and any person or entity acting in its capacity as trustee, agent
or other fiduciary or administrator of any such plan) becomes the “beneficial
owner” (as defined in Rules 13d-3 and 13d-5 under the Securities Exchange
Act of 1934, except that a person or group shall be deemed to have “beneficial
ownership” of all securities that such person or group has the right to
acquire, whether such right is exercisable immediately or only after the
passage of time (such right, an “option right”)), directly or
indirectly, of 25% or more of the equity securities of the Company entitled to
vote for members of the board of directors or equivalent governing body of the
Company on a fully-diluted basis (and taking into account all such securities
that such person or group has the right to acquire pursuant to any option
right);

 

(b)           during any period of twelve (12)
consecutive months, a majority of the members of the board of directors or
other equivalent governing body of the Company (other than vacant seats) cease
to be composed of individuals (i) who were members of that board or
equivalent governing body on the first day of such period, (ii) whose
election or nomination to that board or equivalent governing body was approved
by individuals referred to in clause (i) above constituting at the
time of such election or nomination at least a majority of that board or
equivalent governing body (other than vacant seats) or (iii) whose
election or nomination to that board or other equivalent governing body was
approved by individuals referred to in clauses (i) and (ii) above
constituting at the time of such election or nomination at least a majority of
that board or equivalent governing body (other than vacant seats) (excluding,
in the case of both clause (ii) and clause (iii), any
individual whose initial nomination for, or assumption of office as, a member
of that board or equivalent governing body occurs as a result of an actual or
threatened solicitation of proxies or consents for the election or removal of
one or more directors by any person or group other than a solicitation for the
election of one or more directors by or on behalf of the board of directors); provided,
however, that if the total number of seats of that board of directors or
equivalent governing body (other than vacant seats) is reduced by a corporate
or other organizational resolution or action, then, for purposes of this
definition, the determination of majority during any twelve (12) month period
in which such reduction has occurred shall be made by reference to the
composition and number of seats of such board of directors or equivalent
governing body prior to such reduction; or

 

(c)           any Person or two or more Persons acting
in concert shall have acquired by contract or otherwise the power to exercise,
directly or indirectly, a controlling influence over the management or policies
of the Company, or control over the equity securities of the Company entitled
to vote for members of the board of directors or equivalent governing body of
the Company on a fully-diluted basis (and taking into account all such
securities that such Person or group has the right to acquire pursuant to any
option right) representing 25% or more of the combined voting power of such
securities.

 

For the avoidance of doubt, none of the Merger, the
Transaction nor any other transaction permitted by Section 7.04
shall constitute a Change of Control.

 

6

 

“Code” means the Internal Revenue Code of 1986.

 

“Collateral Documents” means, collectively, the
Pledge Agreement (and any Pledge
Joinder Agreement), each Uniform Commercial Code financing statement,
any control agreement and any other agreement or instrument related thereto
pursuant to which the Company or any other Loan Party grants or purports to
grant a security interest in the Pledged Interests to the Administrative Agent
for the benefit of the Lenders securing all or part of the Obligations, each of which shall be in form and substance
reasonably satisfactory to Administrative Agent.

 

“Commitment” means, as to each Lender, its
obligation to (a) make Revolving Loans to the Borrowers pursuant to Section 2.01,
(b) purchase participations in L/C Obligations, and (c) purchase
participations in Swing Line Loans, in an aggregate principal amount at any one
time outstanding not to exceed the Dollar amount set forth opposite such Lender’s
name on Schedule 2.01 or in the Assignment and Assumption pursuant to
which such Lender becomes a party hereto, as applicable, as such amount may be
adjusted from time to time in accordance with this Agreement.

 

“Commitment Fee Period” means the period from
and including the Signing Date to the earliest of (a) the Maturity Date, (b) the
date of termination of the Aggregate Commitments pursuant to Section 2.06,
(c) the date of termination of the commitment of each Lender to make Loans
and of the obligation of each L/C Issuer to make L/C Credit Extensions pursuant
to Section 8.02.

 

“Commitment Letter” has the meaning specified
in Section 4.02(b)(xiii).

 

“Company” has the meaning specified in the
introductory paragraph hereto.

 

“Company Guaranty” means the Company Guaranty
Agreement made by the Company in favor of the Guaranteed Parties in connection
with the addition of one or more Designated Borrowers pursuant to Section 2.14,
substantially in the form of Exhibit F.

 

“Compliance Certificate” means a certificate
substantially in the form of Exhibit D.

 

“Consolidated EBITDA” means, for any period,
for the Company and its Subsidiaries on a consolidated basis, an amount equal
to Consolidated Net Income for such period plus (a) the following
to the extent deducted in calculating such Consolidated Net Income and without
duplication:  (i) Consolidated
Interest Charges for such period, (ii) income tax for such period, (iii) depreciation
and amortization expense for such period, (iv) transaction fees, costs and
expenses incurred on or prior to the Initial Funding Date in connection with
the Transaction, provided that in no event shall all such fees, costs
and expenses added back pursuant to this clause (iv) exceed $60,000,000
in the aggregate,  (v) actual pretax expenses
resulting from Transaction-related headcount reductions and enhanced
administrative efficiencies incurred during such period, provided that
in no event shall all such expenses added back pursuant to this clause (v) exceed
$80,000,000 in the aggregate during the term of this Agreement, (vi) only
with respect to the consolidated results of operations prior to
the Initial Funding Date of Towers Perrin and its Subsidiaries, the
aggregate amount of bonus-based employee compensation accrued during such
period, minus 45% of the gross contribution during such
period, (vii) in each of the first four fiscal quarters preceding the
Initial Funding Date, 25% of Qualified 

 

7

 

Retirement Savings, (viii) non-cash
extraordinary losses, and (ix) other expenses of the Company and its
Subsidiaries reducing such Consolidated Net Income which do not represent a
cash item in such period or any future period, including non-cash, stock-based
compensation expense for such period and minus (b) the following to
the extent included in calculating such Consolidated Net Income and without duplication:  (i) extraordinary Federal, state, local
and foreign income tax credits of the Company and its Subsidiaries for such
period, (ii) all extraordinary gains and (iii) extraordinary all
non-cash items increasing Consolidated Net Income for such period.

 

“Consolidated Funded Indebtedness” means, as of
any date of determination, for the Company and its Subsidiaries on a
consolidated basis, the sum of (a) the outstanding principal amount of all
obligations, whether current or long-term, for borrowed money (including
Obligations hereunder) and the outstanding principal amount all obligations
evidenced by bonds, debentures, notes, loan agreements or other similar
instruments, (b) all purchase money Indebtedness, (c) all direct
obligations arising under letters of credit (including standby and commercial),
bankers’ acceptances, bank guaranties, surety bonds and similar instruments, (d) all
obligations in respect of the deferred purchase price of property or services
(other than trade accounts payable in the ordinary course of business), (e) Attributable
Indebtedness in respect of capital leases and Synthetic Lease Obligations, (f) without
duplication, all Guarantees with respect to outstanding Indebtedness of the
types specified in clauses (a) through (e) above of
Persons other than the Company or any Subsidiary, and (g) all Indebtedness
of the types referred to in clauses (a) through (f) above
of any partnership or joint venture (other than a joint venture that is itself
a corporation or limited liability company) in which the Company or a
Subsidiary is a general partner or joint venturer, unless such Indebtedness is
expressly made non-recourse to the Company or such Subsidiary.

 

“Consolidated Interest Charges” means, for any
period, for the Company and its Subsidiaries on a consolidated basis, total interest
expense, including without limitation the interest component of any payments
during such period in respect of capital lease obligations capitalized or
expensed during such period.

 

“Consolidated Interest Coverage Ratio” means,
as of any date of determination, the ratio of (a) Consolidated EBITDA for
the period of the four consecutive fiscal quarters most recently ended to (b) Consolidated Interest Charges for such period.

 

“Consolidated Leverage Ratio” means, as of any
date of determination, the ratio of (a) Consolidated Funded Indebtedness
as of such date to (b) Consolidated EBITDA
for the period of the four consecutive fiscal quarters most recently ended.

 

“Consolidated Net Income” means, for any
period, for the Company and its Subsidiaries on a consolidated basis, the net
income of the Company and its Subsidiaries (excluding the net income
attributable to minority interests) for that period.

 

“Consolidated Tangible Assets” means, as of the
date of determination, the total assets of the Company and its Subsidiaries,
which are shown on the consolidated balance sheet of the Company and its
Subsidiaries as of the most recent date for which such a balance sheet is
available, minus Intangible Assets, each of the foregoing determined on a
consolidated basis in accordance with GAAP.

 

8

 

“Contractual Obligation” means, as to any
Person, any provision of any security issued by such Person or of any
agreement, instrument or other undertaking to which such Person is a party or
by which it or any of its property is bound.

 

“Control” means the possession, directly or
indirectly, of the power to direct or cause the direction of the management or
policies of a Person, whether through the ability to exercise voting power, by
contract or otherwise.  “Controlling,”
“Controlled” and “under common Control” have meanings correlative
thereto.

 

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

 

“CSAP” shall mean
Watson Wyatt’s Canadian Separation Allowance Plan established for the benefit
of Watson Wyatt’s Canadian employees in connection with the Canadian Loan
Program.

 

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

 

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

 

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

 

“Defaulting Lender” means any Lender that, as
determined by the Administrative Agent, (with notice to the Company of such
determination) (a) has failed to perform its obligation to fund any
portion of its Loans (or participations in respect of Letters of Credit or
Swing Line Loans) within three Business Days of the date required to be funded
by it hereunder, (b) has notified any 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 that it
does not intend to comply with its funding obligations under this Agreement or
generally under other agreements in which it commits to extend credit, (c) has
failed, within three Business Days after written request by the Administrative
Agent, to confirm in a manner satisfactory to the Administrative Agent, the
Swing Line Lender and the L/C Issuers that it will comply with the terms of
this Agreement relating to its obligations to fund prospective Loans (or
participations in respect of Letters of Credit or Swing Line Loans), (d) otherwise
has 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, or (e) has, or has a direct or 

 

9

 

indirect
parent company that has, (i) become the subject of a proceeding under any
Debtor Relief Law, (ii) had a receiver, conservator, trustee,
administrator, assignee for the benefit of creditors or similar Person charged
with reorganization or liquidation of its business or a custodian appointed for
it, or (iii) taken any action in furtherance of, or indicated its consent
to, approval of or acquiescence in any such proceeding or appointment; provided
that a Lender shall not be a Defaulting Lender solely by virtue of the
ownership or acquisition of any Equity Interest in such Lender or any direct or
indirect parent company thereof by a Governmental Authority.  A Lender that has become a Defaulting Lender
because of an event referenced in this definition may cure such status and
shall no longer constitute a Defaulting Lender as provided in the last
paragraph of Section 2.17.

 

“Designated Borrower” has the meaning specified
in the introductory paragraph hereto.

 

“Designated Borrower Sublimit” means an amount
equal to $200,000,000.  The Designated
Borrower Sublimit is part of, and not in addition to, the Aggregate
Commitments.

 

“Designated Borrower Notice” has the meaning
specified in Section 2.14.

 

“Designated Borrower Request and Assumption
Agreement” has the meaning specified in Section 2.14.

 

“Disposition” or “Dispose” means the
sale, transfer, license, lease or other disposition (including any sale and
leaseback transaction) of any property by any Person, including any sale,
assignment, transfer or other disposal, with or without recourse, of any notes
or accounts receivable or any rights and claims associated therewith.

 

“Dollar” and “$” mean lawful money of
the United States.

 

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

 

“Domestic Subsidiary” means any Subsidiary that
is organized under the laws of any political subdivision of the United States.

 

“Eligible Assignee” means any Person that meets
the requirements to be an assignee under Section 10.06(b)(iii) and
(v) (subject to such consents, if any, as may be required under Section 10.06(b)(iii)).

 

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

 

“EMU Legislation” means the legislative
measures of the European Council for the introduction of, changeover to or
operation of a single or unified European currency.

 

10

 

“Environmental Laws” means any and all
applicable Federal, state, local, and foreign statutes, laws, regulations,
ordinances, rules, judgments, orders, decrees, permits, concessions, grants,
franchises, licenses, agreements or governmental restrictions relating to
pollution and the protection of the environment or the release of any Hazardous
Materials into the environment.

 

“Environmental Liability” means any liability,
contingent or otherwise (including any liability for damages, costs of
environmental remediation, fines, penalties or indemnities), of the Company,
any other Loan Party or any of their respective Subsidiaries directly or
indirectly resulting from or based upon (a) violation of any Environmental
Law, (b) the generation, use, handling, transportation, storage, treatment
or disposal of any Hazardous Materials, except for incidental quantities that
may be lawfully generated, used, handled, transported, stored, treated and/or
disposed of in connection with routine building operation, maintenance and
repair activities (c) exposure to any Hazardous Materials, (d) the
release or threatened release of any Hazardous Materials into the environment
or (e) any contract or agreement pursuant to which liability is assumed or
imposed with respect to any of the foregoing, except for such liability as
would not reasonably be expected to have a Material Adverse Effect.

 

“Equity Interests” means, with respect to any
Person, all of the shares of capital stock of (or other ownership or profit
interests in) such Person, all of the warrants, options or other rights for the
purchase or acquisition from such Person of shares of capital stock of (or
other ownership or profit interests in) such Person, all of the securities
convertible into or exchangeable for shares of capital stock of (or other
ownership or profit interests in) such Person or warrants, rights or options
for the purchase or acquisition from such Person of such shares (or such other
interests), and all of the other ownership or profit interests in such Person
(including partnership, member or trust interests therein), whether voting or
nonvoting, and whether or not such shares, warrants, options, rights or other
interests are outstanding on any date of determination.

 

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

 

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

 

“ERISA Event” shall mean (a) a Reportable
Event with respect to a Pension Plan; (b) the withdrawal of any Borrower
or any ERISA Affiliate from a Pension Plan subject to Section 4063 during
a plan year in which such entity was a “substantial employer” as defined in Section 4001(a)(2) of
ERISA or a cessation of operations that is treated as such a withdrawal under Section 4062(e) of
ERISA; (c) a complete or partial withdrawal by the Borrower or any ERISA
Affiliate from a Multiemployer Plan or notification that a Multiemployer Plan
is in reorganization; (d) the filing of a notice of intent to terminate or
the treatment of a Pension Plan amendment as a termination under Section 4041
or 4041A of ERISA; (e) the institution by the PBGC of proceedings to
terminate a Pension Plan; (f) any event or condition which might
reasonably constitute grounds under Section 4042 of ERISA for the
termination of, or the appointment of a trustee to administer, any Pension Plan
of any Borrower or any ERISA Affiliate; (g) the determination that any
Pension Plan is considered an at-risk plan or a plan in endangered or critical
status within the meaning of Sections 430, 431 and 432 of the Code or 

 

11

 

Sections 303, 304 and 305
of ERISA; or (h) the imposition of any liability under Title IV of ERISA,
other than for PBGC premiums due but not delinquent under Section 4007 of
ERISA, upon any Borrower or any ERISA Affiliate.

 

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

 

“Eurocurrency Rate” means,

 

(a) for any Interest Period with respect to a
Eurocurrency Rate Loan, the rate per annum equal to (i) the British Bankers
Association LIBOR Rate (“BBA LIBOR”), as published by Reuters (or such
other commercially available source providing quotations of BBA LIBOR as may be
designated by the Administrative Agent from time to time) at approximately
11:00 a.m., London time, two London Banking Days prior to the commencement
of such Interest Period, for deposits in the relevant currency (for delivery on
the first day of such Interest Period) with a term equivalent to such Interest
Period, or (ii) if such rate is not available at such time for any reason,
the rate per annum determined by the Administrative Agent to be the rate at
which deposits in the relevant currency for delivery on the first day of such
Interest Period in Same Day Funds in the approximate amount of the Eurocurrency
Rate Loan being made, continued or converted by Bank of America and with a term
equivalent to such Interest Period would be offered by Bank of America’s London
Branch (or other Bank of America branch or Affiliate) to major banks in the
London or other offshore interbank market for such currency at their request at
approximately 11:00 a.m. (London time) two London Banking Days prior to
the commencement of such Interest Period; and

 

(b)                                 for any interest calculation with respect
to a Base Rate Loan on any date, the rate per annum equal to (i) BBA
LIBOR, at approximately 11:00 a.m., London time determined two London
Banking Days prior to such date for Dollar deposits being delivered in the
London interbank market for a term of one month commencing that day or (ii) if
such published rate is not available at such time for any reason, the rate per
annum determined by the Administrative Agent to be the rate at which deposits
in Dollars for delivery on the date of determination in Same Day Funds in the
approximate amount of the Base Rate Loan being made or maintained with a term
equal to one month would be offered by Bank of America’s London Branch to major
banks in the London interbank eurodollar market at their request at the date
and time of determination.

 

“Eurocurrency Rate Loan” means a Revolving Loan
that bears interest at a rate determined by reference to subsection (a) of
the definition of Eurocurrency Rate. 
Eurocurrency Rate Loans may be denominated in Dollars or in an
Alternative Currency.  All Revolving
Loans denominated in an Alternative Currency must be Eurocurrency Rate Loans.

 

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

 

“Excluded Taxes” means, with respect to the
Administrative Agent, any Lender, the L/C Issuers, the Existing L/C Issuers or
any other recipient of any payment to be made by or on account of any
obligation of any Borrower hereunder, (a) taxes imposed on or measured by
its overall net income (however denominated), and franchise taxes imposed on it
(in lieu of net 

 

12

 

income taxes), by the
jurisdiction (or any political subdivision thereof) under the Laws of which
such recipient is organized or in which its principal office is located or, in
the case of any Lender, in which its applicable Lending Office is located, (b) any
branch profits taxes imposed by the United States or any similar tax imposed by
any other jurisdiction in which such Borrower is located, (c) any backup
withholding tax that is required by the Code to be withheld from amounts
payable to a Lender that has failed to comply with clause (A) of Section 3.01(e)(ii),
and (d) in the case of a Foreign Lender (other than an assignee pursuant
to a request by the Company under Section 10.13), any United States
withholding tax that (i) is required to be imposed on amounts payable to
such Foreign Lender pursuant to the Laws in force at the time such Foreign
Lender becomes a party hereto (or designates a new Lending Office) or (ii) is
attributable to such Foreign Lender’s failure or inability (other than as a
result of a Change in Law) to comply with clause (B) of Section 3.01(e)(ii),
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 such Borrower with respect to such
withholding tax pursuant to Section 3.01(a)(i) or Section 3.01(c).  Notwithstanding anything to the contrary
contained in this definition, “Excluded Taxes” shall not include any
withholding tax imposed at any time on payments made by or on behalf of a
Foreign Obligor to any Lender hereunder or under any other Loan Document, provided
that such Lender shall have complied with Section 3.01(e)(i).

 

“Existing Debt Retirement” means the repayment
and cancellation of all indebtedness of (i) Watson Wyatt under the
Existing Watson Wyatt Credit Agreement, and (ii) Towers Perrin under the
Existing Towers Perrin Credit Agreement, and, in each case, the termination of
all documentation related thereto and release of all Liens and guaranties
thereunder, to occur on the Initial Funding Date.

 

“Existing L/C Issuer” means each Lender (other
than Bank of America and PNC) that has issued an Existing Letter of Credit, in
its capacity as issuer of such Existing Letter of Credit.

 

“Existing Letters of Credit” means those
standby letters of credit outstanding on the Initial Funding Date and set forth
Schedule 1.01B delivered pursuant to Section 4.02(b)(viii).

 

“Existing Towers Perrin Credit Agreement” means
that certain Credit Agreement dated as of November 8, 2006, among Towers
Perrin, as borrower, the lenders party thereto and PNC, as administrative
agent, as amended.

 

“Existing Watson Wyatt Credit Agreement” means
that certain Amended and Restated Revolving Credit Agreement dated as of July 11,
2005, among Watson Wyatt, as borrower, the lenders party thereto and SunTrust
Bank, as administrative agent, as amended.

 

“Facility Termination Date” means the date as
of which all of the following shall have occurred:  (a) the Aggregate Commitments have
terminated,  (b) all Obligations have
been paid in full (other than indemnities and other similar contingent
obligations surviving the termination of this Agreement for which no claim has
been made and which are unknown and not calculable at the time of termination
and those obligations under
any Swap Contract), and (c) all Letters of Credit have terminated or
expired (other than Letters of Credit as to which other arrangements with
respect thereto satisfactory to the Administrative Agent and the applicable L/C
Issuer shall have been made).

 

13

 

“FASB ASC” means the Accounting Standards
Codification of the Financial Accounting Standards Board.

 

“Federal Funds Rate” means, for any day, the
rate per annum equal to the weighted average of the rates on overnight Federal
funds transactions with members of the Federal Reserve System arranged by
Federal funds brokers on such day, as published by the Federal Reserve Bank of
New York on the Business Day next succeeding such day; provided that (a) if
such day is not a Business Day, the Federal Funds Rate for such day shall be
such rate on such transactions on the next preceding Business Day as so
published on the next succeeding Business Day, and (b) if no such rate is
so published on such next succeeding Business Day, the Federal Funds Rate for
such day shall be the average rate (rounded upward, if necessary, to a whole
multiple of 1/100 of 1%) charged to Bank of America on such day on such
transactions as determined by the Administrative Agent.

 

“Fee Letters” means (i) the letter
agreement, dated October 5, 2009, among Towers Perrin, Watson Wyatt, the
Administrative Agent, PNC and the Arrangers (the “Joint Fee Letter”), (ii) the
letter agreement, dated October 5, 2009, among Towers Perrin, Watson
Wyatt, the Administrative Agent and Banc of America Securities LLC, and (iii) the
letter agreement, dated October 5, 2009, among Towers Perrin, Watson
Wyatt, PNC and PNC Capital Markets, LLC.

 

“Final Senior Subordinated Indenture” means
that certain Indenture relating to the Senior Subordinated Notes, which will be
entered into by and between the Company and Wilmington Trust FSB on or about
the closing date of the Merger in substantially the form attached as Exhibit C
to the Merger Agreement.

 

“Foreign Lender” means, with respect to any
Borrower, any Lender that is organized under the Laws of a jurisdiction other
than that in which such Borrower is resident for tax purposes (including such a
Lender when acting in the capacity of an L/C Issuer).  For purposes of this definition, the United
States, each State thereof and the District of Columbia shall be deemed to
constitute a single jurisdiction.

 

“Foreign Obligor” means a Loan Party that is a
Foreign Subsidiary.

 

“Foreign Subsidiary” means any Subsidiary that
is organized under the laws of a jurisdiction other than the United States, a
State thereof or the District of Columbia.

 

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

 

“Fronting Exposure” means, at any time there is
a Defaulting Lender, (a) with respect to an L/C Issuer or an Existing L/C
Issuer, such Defaulting Lender’s Applicable Percentage of the outstanding L/C
Obligations held by such L/C Issuer other than L/C Obligations as to which (i) such
Defaulting Lender’s participation obligation has been reallocated pursuant to Section 2.17(d),
or (ii) Cash Collateral acceptable to such L/C Issuer or Existing L/C
Issuer, as applicable, shall have been provided in accordance with Section 2.03,
and (b) with respect to the Swing Line Lender, such Defaulting Lender’s
Applicable Percentage of Swing Line Loans other than Swing Line Loans as to
which (i) such Defaulting Lender’s participation obligation has 

 

14

 

been reallocated pursuant
to Section 2.17(d), or (ii) Cash Collateral acceptable to the
Swing Line Lender shall have been provided in accordance with Section 2.04.

 

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

 

“GAAP” means generally accepted accounting
principles in the United States set forth in the opinions and pronouncements of
the Accounting Principles Board and the American Institute of Certified Public
Accountants and statements and pronouncements of the Financial Accounting
Standards Board or such other principles as may be approved by a significant
segment of the accounting profession in the United States, that are applicable
to the circumstances as of the date of determination, consistently applied.

 

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

 

“Guarantee” means, as to any Person, any
obligation, contingent or otherwise, of such Person guaranteeing or having the
economic effect of guaranteeing any Indebtedness or other obligation payable or
performable by another Person (the “primary obligor”) in any manner, whether
directly or indirectly, and including any obligation of such Person, direct or
indirect, (i) to purchase or pay (or advance or supply funds for the
purchase or payment of) such Indebtedness or other obligation, (ii) to
purchase or lease property, securities or services for the purpose of assuring
the obligee in respect of such Indebtedness or other obligation of the payment
or performance of such Indebtedness or other obligation, (iii) to maintain
working capital, equity capital or any other financial statement condition or
liquidity or level of income or cash flow of the primary obligor so as to
enable the primary obligor to pay such Indebtedness or other obligation, or (iv) entered
into for the purpose of assuring in any other manner the obligee in respect of
such Indebtedness or other obligation of the payment or performance thereof or
to protect such obligee against loss in respect thereof (in whole or in part); provided,
that the term “Guarantee” shall not include endorsements for collection or
deposits in the ordinary course of business. 
The amount of any Guarantee shall be deemed to be an amount equal to the
stated or determinable amount of the related primary obligation, or portion
thereof, in respect of which such Guarantee is made or, if not stated or
determinable, the maximum reasonably anticipated liability in respect thereof
as determined by the guaranteeing Person in good faith.  The term “Guarantee” as a verb has a
corresponding meaning.

 

“Guaranteed Cash Management Agreement” means
any Cash Management Agreement that (a) exists between any Loan Party and
any Cash Management Bank at the time such Cash Management Bank becomes a Lender
or (b) is entered into by and between any Loan Party and any Cash
Management Bank.

 

15

 

“Guaranteed Hedge Agreement” means any Swap
Contract permitted under Article VII that is entered into by and
between any Loan Party and any Hedge Bank.

 

“Guaranteed Parties” means, collectively, the
Administrative Agent, the Lenders, the L/C Issuers, the Hedge Banks, the Cash
Management Banks, and each co-agent or sub-agent appointed by the
Administrative Agent pursuant to Section 9.05.

 

“Guaranties” means, collectively, the Company
Guaranty and the Subsidiary Guaranty.

 

“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.

 

“Hedge Bank” means any Person that, (a) at
the time it enters into a Swap Contract permitted by Article VII,
is a Lender, or (b) at the time it becomes a Lender, is a party to a Swap
Contract, in each case in its capacity as a party to such Swap Contract.

 

“Hong Kong Dollar” or “HK $” means the
lawful currency of Hong Kong.

 

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

 

(a)                                  the principal amount of all obligations
of such Person for borrowed money and the principal amount of all obligations
of such Person evidenced by bonds, debentures, notes, loan agreements or other
similar instruments;

 

(b)                                 all direct or contingent obligations of
such Person arising under letters of credit (including standby and commercial),
bankers’ acceptances, bank guaranties, surety bonds and similar instruments;

 

(c)                                  net obligations of such Person under any
Swap Contract;

 

(d)                                 all obligations of such Person to pay the
deferred purchase price of property or services (other than trade accounts
payable in the ordinary course of business);

 

(e)                                  indebtedness (excluding prepaid interest
thereon) secured by a Lien on property owned or being purchased by such Person
(including indebtedness arising under conditional sales or other title
retention agreements), whether or not such indebtedness shall have been assumed
by such Person or is limited in recourse;

 

(f)                                    (i) capital leases and (ii) Synthetic
Lease Obligations;

 

(g)                                 all obligations of such Person to
purchase, redeem, retire, defease or otherwise make any payment in respect of
any Equity Interest in such Person or any other 

 

16

 

Person, valued, in the case of a redeemable preferred
interest, at the greater of its voluntary or involuntary liquidation preference
plus accrued and unpaid dividends; and

 

(h)                                 all Guarantees of such Person in respect
of any of the foregoing.

 

For all purposes hereof, the Indebtedness of any
Person shall include the Indebtedness of any partnership or joint venture
(other than a joint venture that is itself a corporation or limited liability
company) in which such Person is a general partner or a joint venturer, unless
such Indebtedness is expressly made non-recourse to such Person.  The amount of any net obligation under any
Swap Contract on any date shall be deemed to be the Swap Termination Value
thereof as of such date.  The amount of
any capital lease or Synthetic Lease Obligation as of any date shall be deemed
to be the amount of Attributable Indebtedness in respect thereof as of such
date.

 

“Indemnified Taxes” means Taxes other than
Excluded Taxes.

 

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

 

“Information” has the meaning specified in Section 10.07.

 

“Initial Funding Date” means the first date all
the conditions precedent in Section 4.02 are satisfied or waived in
accordance with Section 4.02 or 10.01 and the initial Credit
Extensions are made hereunder.

 

“Initial Funding Date Material Adverse Effect”
means, with respect to any Person, any Material Adverse Effect with respect to
such Person other than:  any event,
change, circumstance, occurrence, effect or state of facts reflecting or
resulting from (a) any event, change, circumstance, occurrence, effect or
state of facts generally affecting the human capital, risk and financial
services, reinsurance or insurance consulting services industries, (b) any
event, change, circumstance, occurrence, effect or state of facts generally
affecting the economy or the financial, securities or credit markets, interest
rates or political or regulatory conditions, in the United States or any other
jurisdiction in which the Company, Watson Wyatt, Towers Perrin and their
respective Subsidiaries have substantial business operations, (c) any
outbreak or escalation of hostilities or acts of war or terrorism, (d) changes
in applicable laws or generally accepted accounting principles, (e) any
change attributable to the negotiation, execution, announcement or pendency of
the Loan Documents or the Transaction, including any litigation resulting
therefrom, (f) with respect only to Watson Wyatt, any change in the price
or trading volume of Watson Wyatt’s common stock, and (g) any failure by
the Company, Watson Wyatt or Towers Perrin to meet internal or, with respect
only to Watson Wyatt, published projections, forecasts or revenue or earnings
predictions, in and of itself; provided further that, with respect to clauses
(a), (b), (c) and (d), the impact of such event,
change, circumstances, occurrence, effect or state of facts is not
disproportionately adverse to Towers Perrin and its Subsidiaries, taken as a
whole, relative to the adverse impact on Watson Wyatt and its Subsidiaries,
taken as a whole, or vice versa.

 

“Intangible Assets” means assets that are
considered to be intangible assets under GAAP, including customer lists,
goodwill, computer software, copyrights, trade names, trademarks, patents,
franchises, licenses, unamortized deferred charges, unamortized debt discount
and capitalized research and development costs.

 

17

 

“Interest Payment Date” means, (a) as to
any Loan other than a Base Rate Loan, the last day of each Interest Period
applicable to such Loan and the Maturity Date; provided, however,
that if any Interest Period for a Eurocurrency Rate Loan exceeds three months,
the respective dates that fall every three months after the beginning of such
Interest Period shall also be Interest Payment Dates; and (b) as to any
Base Rate Loan (including a Swing Line Loan), the first Business Day after the
end of each March, June, September and December and the Maturity
Date.

 

“Interest Period” means, as to each
Eurocurrency Rate Loan, the period commencing on the date such Eurocurrency
Rate Loan is disbursed or converted to or continued as a Eurocurrency Rate Loan
and ending on the date one, two, three or six months thereafter, as selected by
the Company in its Revolving Loan Notice; provided that:

 

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

 

(ii)                                  any Interest Period that begins on the
last Business Day of a calendar month (or on a day for which there is no
numerically corresponding day in the calendar month at the end of such Interest
Period) shall end on the last Business Day of the calendar month at the end of
such Interest Period; and

 

(iii)                               no Interest Period shall extend beyond
the Maturity Date.

 

“Investment” means, as to any Person, any
direct or indirect acquisition or investment by such Person, whether by means
of (a) the purchase or other acquisition of capital stock or other
securities of another Person, (b) a loan, advance or capital contribution
to, Guarantee or assumption of debt of, or purchase or other acquisition of any
other debt or equity participation or interest in, another Person, including
any partnership or joint venture interest in such other Person and any
arrangement pursuant to which the investor Guarantees Indebtedness of such
other Person, or (c) the purchase or other acquisition (in one transaction
or a series of transactions) of all or substantially all of the assets of
another Person or any business unit thereof. 
For purposes of covenant compliance, the amount of any Investment shall
be the amount actually invested, without adjustment for subsequent increases or
decreases in the value of such Investment.

 

“IP Rights” has the meaning specified in Section 5.18.

 

“IRS” means the United States Internal Revenue
Service.

 

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

 

“Issuer Documents” means with respect to any
Letter of Credit, the Letter of Credit Application, and any other document,
agreement and instrument entered into by an L/C Issuer or an Existing L/C
Issuer, as applicable, and the Company (or any Subsidiary) or the applicable 

 

18

 

Designated Borrower or in
favor of such L/C Issuer or such Existing L/C Issuer, as applicable, and
relating to such Letter of Credit.

 

“Joint Fee Letter” has the meaning specified in
the definition of Fee Letter.

 

“Laws” means, collectively, all international,
foreign, Federal, state and local statutes, treaties, rules, guidelines,
regulations, ordinances, codes and administrative or judicial precedents or
authorities, including the interpretation or administration thereof by any
Governmental Authority charged with the enforcement, interpretation or
administration thereof, and all applicable administrative orders, directed
duties, requests, licenses, authorizations and permits of, and agreements with,
any Governmental Authority, in each case whether or not having the force of
law.

 

“L/C Advance” means, with respect to each
Lender, such Lender’s funding of its participation in any L/C Borrowing in
accordance with its Applicable Percentage. All L/C Advances shall be denominated
in (x) with respect to Letters of Credit issued in Dollars, Dollars and (x) with
respect to Letters of Credit issued in an Alternative Currency, the Dollar
Equivalent of the applicable Alternative Currency.

 

“L/C Borrowing” means an extension of credit
resulting from a drawing under any Letter of Credit which has not been
reimbursed on the date when made or refinanced as a Revolving Borrowing. All
L/C Borrowings shall be denominated in (x) with respect to Letters of
Credit issued in Dollars, Dollars and (x) with respect to Letters of
Credit issued in an Alternative Currency, the Dollar Equivalent of the
applicable Alternative Currency.

 

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

 

“L/C Issuer” means Bank of America, PNC, each
in its capacity as issuer of Letters of Credit hereunder, or any successor
issuer of Letters of Credit hereunder. 
L/C Issuer shall also include any Lender appointed by the Company (with
the consent of the Administrative Agent, which consent shall not be
unreasonably withheld, conditioned or delayed) as an “L/C Issuer” by notice to
the Lenders as a replacement for any L/C Issuer who is at the time of such
appointment a Defaulting Lender.  All
singular references to the L/C Issuer shall mean any L/C Issuer, the L/C Issuer
that has issued the applicable Letter of Credit or all L/C Issuers, as the
context may require.

 

“L/C Obligations” means, as at any date of determination,
the aggregate amount available to be drawn under all outstanding Letters of
Credit plus the aggregate of all Unreimbursed Amounts, including all L/C
Borrowings.  For purposes of computing
the amount available to be drawn under any Letter of Credit, the amount of such
Letter of Credit shall be determined in accordance with Section 1.09.  For all purposes of this Agreement, if on any
date of determination a Letter of Credit has expired by its terms but any
amount may still be drawn thereunder by reason of the operation of Rule 3.14
of the ISP, such Letter of Credit shall be deemed to be “outstanding” in the
amount so remaining available to be drawn.

 

“Lender” has the meaning specified in the
introductory paragraph hereto and, as the context requires, includes the Swing
Line Lender.

 

19

 

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

 

“Letter of Credit” means any standby letter of
credit issued hereunder  and shall
include the Existing Letters of Credit. 
Letters of Credit may be issued in Dollars or in an Alternative
Currency.

 

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

 

“Letter of Credit Expiration Date” means the
day that is seven days prior to the Maturity Date then in effect (or, if such
day is not a Business Day, the next preceding Business Day).

 

“Letter of Credit Fee” has the meaning
specified in Section 2.03(h).

 

“Letter of Credit Sublimit” means an amount
equal to $50,000,000.  The Letter of
Credit Sublimit is part of, and not in addition to, the Aggregate Commitments.

 

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

 

“Loan” means an extension of credit by a Lender
to a Borrower under Article II in the form of a Revolving Loan or a
Swing Line Loan.

 

“Loan Documents” means this Agreement, each
Designated Borrower Request and Assumption Agreement, each Note, the Company
Guaranty, the Subsidiary Guaranty (including any Subsidiary Guaranty Joinder Agreement),
the Collateral Documents, each Issuer Document, any agreement creating or
perfecting rights in Cash Collateral pursuant to the provisions of Section 2.16
of this Agreement and the Fee Letters (to the extent the terms of such Fee
Letters survive the execution of this Agreement).

 

“Loan Parties” means, collectively, the
Company, each Designated Borrower, each Subsidiary Guarantor and each Domestic
Subsidiary pledging collateral to the Administrative Agent for the benefit of
the Guaranteed Parties.

 

“London Banking Day” means any day on which
dealings in Dollar deposits or the applicable Alternative Currency are
conducted by and between banks in the London interbank eurodollar market.

 

“Mandatory Cost” means, with respect to any
period, the percentage rate per annum determined in accordance with Schedule
1.01A.

 

20

 

“Material Adverse Effect” means (a) a
material adverse change in, or a material adverse effect on, the operations,
business, assets, properties, liabilities (actual or contingent) or condition
(financial or otherwise) of (i) Watson Wyatt and its Subsidiaries, taken
as a whole, (ii) Towers Perrin and its Subsidiaries, taken as a whole, or (iii) the
Company and its Subsidiaries, taken as a whole; (b) a material impairment
of the rights and remedies of the Administrative Agent or any Lender under any
Loan Document, or of the ability of the Company or any other Loan Party to
perform its obligations under any Loan Document to which it is a party; or (c) a
material adverse effect upon any substantial portion of the collateral under
the Collateral Documents or the legality, validity, binding effect or
enforceability against the Company or any other Loan Party of any Loan Document
to which it is a party.

 

“Maturity Date” means December 31, 2012; provided,
however, that  if such date
is not a Business Day, the Maturity Date shall be the next preceding Business
Day.

 

“Merger” means the
merger of Watson Wyatt and Towers Perrin through one or more merger
Subsidiaries to occur on or before the Initial Funding Date which, in any
event, shall be consummated in material accordance with the terms of the Merger
Agreement.

 

“Merger Agreement”
means that certain Agreement and Plan of Merger dated as of June 26, 2009
(as amended by Amendment No. 1 dated as of October 19, 2009), by and
among the Company, Watson Wyatt, Towers Perrin and their respective merger
Subsidiaries (including all exhibits and schedules thereto), pursuant to which
Wyatt Watson and Towers Perrin shall become wholly-owned direct Subsidiaries of
the Company.

 

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

 

“Multiple Employer Plan” shall mean a Plan
which has two or more contributing sponsors (including any Borrower or any
ERISA Affiliate) at least two of whom are not under common Control, as such a
plan is described in Section 4064 of ERISA.

 

“New Zealand Dollar” or “NZ $” means the
lawful currency of New Zealand.

 

“Note” means a promissory note made by a
Borrower in favor of a Lender evidencing Loans made by such Lender to such
Borrower, substantially in the form of Exhibit C.

 

“Obligations” means all advances to, and debts,
liabilities, obligations, covenants and duties of, any Loan Party arising under
any Loan Document or otherwise with respect to any Loan, Letter of Credit,
Guaranteed Cash Management Agreement or Guaranteed Hedge Agreement, in each
case whether direct or indirect (including those acquired by assumption),
absolute or contingent, due or to become due, now existing or hereafter arising
and including interest and fees that accrue after the commencement by or
against any Loan Party or any Affiliate thereof of any proceeding under any
Debtor Relief Laws naming such Person as the debtor in such proceeding,
regardless of whether such interest and fees are allowed claims in such
proceeding.

 

21

 

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

 

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

 

“Outstanding Amount” means (i) with
respect to Revolving Loans on any date, the Dollar Equivalent amount of the
aggregate outstanding principal amount thereof after giving effect to any
borrowings and prepayments or repayments of such Revolving Loans occurring on
such date; (ii) with respect to Swing Line Loans on any date, the
aggregate outstanding principal amount thereof after giving effect to any
borrowings and prepayments or repayments of such Swing Line Loans occurring on
such date; and (iii) with respect to any L/C Obligations on any date, the
Dollar Equivalent amount of the aggregate outstanding amount of such L/C
Obligations on such date after giving effect to any L/C Credit Extension
occurring on such date and any other changes in the aggregate amount of the L/C
Obligations as of such date, including as a result of any reimbursements by the
Company of Unreimbursed Amounts.

 

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

 

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

 

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

 

“PBGC” means the Pension Benefit Guaranty
Corporation.

 

“PCIC” means Professional Consultants Insurance Company, Inc., a Vermont
corporation.

 

“Pension Act” shall mean the Pension Protection
Act of 2006.

 

22

 

“Pension Plan” shall mean any employee pension
benefit plan (including a Multiple Employer Plan and a Multiemployer Plan) that
is covered by Title IV of ERISA or is subject to the minimum funding standards
under Section 412 of the Code and is maintained or is contributed to by
any Borrower and any ERISA Affiliate.

 

“Pension Funding Rules” shall mean the rules of
the Code and ERISA regarding minimum required contributions (including any
installment payment thereof) to Pension Plans and set forth in, with respect to
plan years ending prior to the effective date of the Pension Act, Section 412
of the Code and Section 302 of ERISA, each as in effect prior to the
Pension Act and, thereafter, Sections 412, 430, 431, 432 and 436 of the Code
and Sections 302, 303, 304, 305, 306 and 307 of ERISA.

 

“Permitted Acquisition”
means any purchase or
other acquisition of Equity Interests or property permitted by Section 7.02(k).

 

“Permitted CSAP Loan” shall mean a loan
extended under the Canadian Loan Program to one of Watson Wyatt’s Canadian
employees for which a Separation Allowance Account is maintained having a
balance not in excess of 90% of the dollar amount credited from time to time to
such account.

 

“Permitted Investments”
shall mean:

 

(i)            Investments
consisting of stock, obligations, securities or other property received in
settlement receivable (created in the ordinary course of business) from
bankrupt obligors;

 

(ii)           Permitted
CSAP Loans in an aggregate amount not to exceed CAN$3,500,000 at any
outstanding;

 

(iii)          Investments
in PCIC or any other captive insurance professional liability insurance for the
Company and its Subsidiaries in an aggregate amount not to exceed $100,000,000
at any time outstanding;

 

(iv)          Investments
in the form of short term marketable debt securities; and

 

(v)           any other Investments contemplated, made in connection
with, or permitted by the short-term investment policy of the Company and its
Subsidiaries.

 

“Permitted Lien” means any Lien permitted by Section 7.01.

 

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

 

“Platform” has the meaning specified in Section 6.02.

 

“Pledge Agreement” means that certain
Securities Pledge Agreement among certain Domestic Subsidiaries of the Company
as own Pledged Interests in favor of the Administrative Agent for the benefit
of the Guaranteed Parties substantially in the form of Exhibit K
hereto, as

 

23

 

supplemented from time to
by the execution and delivery of Pledge Joinder Agreements pursuant to Section 6.14,
as the same may be otherwise supplemented (including by Pledge Agreement
Supplement).

 

“Pledge Agreement Supplement” means, with
respect to the Pledge Agreement, the Pledge Agreement Supplement in the form
affixed as an Exhibit to the Pledge Agreement.

 

“Pledge Joinder Agreement” means each Pledge
Joinder Agreement, substantially in the form thereof attached to the Pledge
Agreement, executed and delivered by the Company or a Domestic Subsidiary, as
applicable, to the Administrative Agent pursuant to Section 6.14
hereof or otherwise.

 

“Pledged Interests” means (i) 65% of the
Voting Interests of TP Luxembourg (or if the relevant Person shall own less
than 65% of such Voting Interests, then 100% of the Voting Interests of TP
Luxembourg owned by such Person so long as the aggregate amount of such Voting
Interests of TP Luxembourg  pledged by the
Company and its Subsidiaries does not exceed 65% of the aggregate amount of
such Voting Interests of) and (ii) 100% of the nonvoting Equity Interests (at all
times exclusive of the meaning of “stock entitled to vote” as described in
Treasury Regulation Section 1.956-2(c)(2)) of TP Luxembourg.

 

“PNC” means PNC Bank, National Association.

 

“Pro Forma Financial Statements” has the
meaning specified in Section 4.02(b)(x)(B).

 

“Public Lender” has the meaning specified in Section 6.02.

 

“Qualified Retirement Savings” means, for each
of the first four fiscal quarters preceding the Initial Funding Date, actual
pretax cash savings resulting from the retirement of Towers Perrin employees
that retire within three (3) months of the Initial Funding Date; provided
that Qualified Retirement Savings shall not exceed $41,000,000 in the
aggregate.

 

“Reference Financial Statements” means (i) the
audited consolidated balance sheet of Watson Wyatt and its Subsidiaries for the
fiscal year ended June 30, 2009, and the related consolidated statements
of income or operations, shareholders’ equity and cash flows for such fiscal
year of Watson Wyatt and its Subsidiaries, including the notes thereto (the “Reference
Watson Wyatt Financial Statements”) and (ii) the unaudited
consolidated balance sheet of Towers Perrin and its Subsidiaries for the six
months ended June 30, 2009 and the related consolidated statements of
income or operations, shareholders’ equity and cash flows for such fiscal
period of Towers Perrin and its Subsidiaries, including the notes thereto.

 

“Reference Watson Wyatt Financial Statements”
has the meaning set forth in the definition of “Reference Financial Statements”.

 

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

 

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

 

24

 

“Reportable Event”
means any of the events set forth in Section 4043(c) of ERISA, other
than (a) events for which the 30 day notice period has been waived, (b) a
merger, in accordance with the requirements of ERISA and the Code, of two or
more Pensions Plans maintained by any Borrower or any ERISA Affiliate as of the
Initial Funding Date and (c) the substitution of any Borrower or any ERISA
Affiliate as the sponsor of a Pension Plan maintained by any Borrower or any
ERISA Affiliate as of the Initial Funding Date.

 

“Request for Credit Extension” means (a) with
respect to a Borrowing, conversion or continuation of Revolving Loans, a
Revolving Loan Notice, (b) with respect to an L/C Credit Extension, a
Letter of Credit Application, and (c) with respect to a Swing Line Loan, a
Swing Line Loan Notice.

 

“Required Lenders” means, as of any date of
determination, Lenders having more than 50% of the Aggregate Commitments or, if
the commitment of each Lender to make Loans and the obligation of each L/C
Issuer to make L/C Credit Extensions have been terminated pursuant to Section 8.02,
Lenders holding in the aggregate more than 50% of the Total Outstandings (with
the aggregate amount of each Lender’s risk participation and funded
participation in L/C Obligations and Swing Line Loans being deemed “held” by
such Lender for purposes of this definition); provided that the
Commitment of, and the portion of the Total Outstandings held or deemed held
by, any Defaulting Lender shall be excluded for purposes of making a
determination of Required Lenders.

 

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

 

“Restricted Payment” means any dividend or
other distribution (whether in cash, securities or other property) with respect
to any capital stock or other Equity Interest of the Company or any 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 capital stock
or other Equity Interest, or on account of any return of capital to the Company’s
stockholders, partners or members (or the equivalent Person thereof).

 

“Revaluation Date” means (a) with respect
to any Loan, each of the following:  (i) each
date of a Borrowing of a Eurocurrency Rate Loan denominated in an Alternative
Currency, (ii) each date of a continuation of a Eurocurrency Rate Loan
denominated in an Alternative Currency pursuant to Section 2.02,
and (iii) such additional dates as the Administrative Agent shall
determine or the Required Lenders shall require; and (b) with respect to
any Letter of Credit, each of the following: 
(i) each date of issuance of a Letter of Credit denominated in an
Alternative Currency, (ii) each date of an amendment of any such Letter of
Credit having the effect of increasing the amount thereof (solely with respect
to the increased amount), (iii) each date of any payment by the applicable
L/C Issuer or Existing L/C Issuer under any Letter of Credit denominated in an
Alternative Currency, (iv) in the case of any Existing Letters of Credit

 

25

 

denominated in an
Alternative Currency, the Initial Funding Date and (v) such additional
dates as the Administrative Agent shall determine or the Required Lenders shall
require.

 

“Revolving Borrowing” means a borrowing
consisting of simultaneous Revolving Loans of the same Type, in the same
currency and, in the case of Eurocurrency Rate Loans, having the same Interest
Period made by each of the Lenders pursuant to Section 2.01.

 

“Revolving Loan” has the meaning specified in Section 2.01.

 

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

 

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

 

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

 

“Senior Note Indebtedness” means all
Indebtedness outstanding under the Senior Subordinated Notes and the Final
Senior Subordinated Indenture.

 

“Senior Subordinated Notes” means those certain
up to $200,000,000 senior subordinated unsecured notes issued by the Company
pursuant to the Final Senior Subordinated Indenture and due within one year of
the issuance thereof.

 

“Separation Allowance
Account” shall mean the account established for Watson Wyatt’s qualified
Canadian employees to which, from time to time, Watson Wyatt may credit Dollar
amounts allocated to such employee based on such employee’s share in the
CSAP.  For the avoidance of doubt, no
such account shall be funded with actual Dollars, but the dollar amount
credited thereto shall be reflected as a liability on the balance sheet of
Watson Wyatt.

 

“Signing Date” means the first date all the
conditions precedent in Section 4.01 are satisfied or waived in
accordance with Section 10.01.

 

“Solvent” and “Solvency” mean, with
respect to any Person on any date of determination, that on such date (a) the
fair value of the property of such Person is greater than the total amount of
liabilities, including contingent liabilities, of such Person, (b) the
present fair salable value of the assets of such Person is not less than the
amount that will be required to pay the probable liability of such Person on
its debts as they become absolute and matured, (c) such Person does not
intend to, and does not believe that it will, incur debts or liabilities beyond
such Person’s ability to pay such debts and liabilities as they mature, (d) such
Person is not engaged in business or a transaction, and is not about to engage
in business or a transaction, for which such Person’s 

 

26

 

property would constitute
an unreasonably small capital, and (e) such Person is able to pay its
debts and liabilities, contingent obligations and other commitments as they
mature in the ordinary course of business. 
The amount of contingent liabilities at any time shall be computed as
the amount that, in the light of all the facts and circumstances existing at
such time, represents the amount that can reasonably be expected to become an
actual or matured liability.

 

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

 

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

 

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

 

“Subsidiary” of a Person means a corporation,
partnership, joint venture, limited liability company or other business entity
of which a majority of the shares of securities or other interests having
ordinary voting power for the election of directors or other governing body
(other than securities or interests having such power only by reason of the
happening of a contingency) are at the time beneficially owned, or the
management of which is otherwise controlled, directly, or indirectly through
one or more intermediaries, or both, by such Person.  Unless otherwise specified, all references
herein to a “Subsidiary” or to “Subsidiaries” shall refer to a Subsidiary or
Subsidiaries of the Company.

 

“Subsidiary Guarantors” means, collectively,
each Domestic Subsidiary (other than PCIC) executing the Subsidiary Guaranty on
the Initial Funding Date and each other Domestic Subsidiary that enters into a
Subsidiary Guaranty Joinder Agreement as required by the terms and conditions
of this Agreement.

 

“Subsidiary Guaranty” means the Subsidiary
Guaranty Agreement made by the Subsidiary Guarantors in favor of the Guaranteed
Parties, substantially in the form of Exhibit G, as supplemented from time to time by
execution and delivery of Subsidiary Guaranty Joinder Agreements pursuant to Section 6.11.

 

“Subsidiary Guaranty Joinder Agreement” means
each Subsidiary Guaranty Joinder Agreement, substantially in the form thereof
attached to the Subsidiary Guaranty, executed and delivered by a Domestic
Subsidiary to the Administrative Agent pursuant to Section 6.11.

 

27

 

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

 

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

 

“Swing Line Borrowing” means a borrowing of a
Swing Line Loan pursuant to Section 2.04.

 

“Swing Line Lender” means Bank of America in
its capacity as provider of Swing Line Loans, or any successor swing line
lender hereunder.

 

“Swing Line Loan” has the meaning specified in Section 2.04(a).

 

“Swing Line Loan Notice” means a notice of a
Swing Line Borrowing pursuant to Section 2.04(b), which, if in
writing, shall be substantially in the form of Exhibit B.

 

“Swing Line Sublimit” means an amount equal to
the lesser of (a) $30,000,000 and (b) the Aggregate Commitments.  The Swing Line Sublimit is part of, and not
in addition to, the Aggregate Commitments.

 

“Synthetic Lease Obligation” means the monetary
obligation of a Person under (a) a so-called synthetic, off-balance sheet
or tax retention lease, or (b) an agreement for the use or possession of
property creating obligations that do not appear on the balance sheet of such
Person but which, upon the insolvency or bankruptcy of such Person, would be
characterized as the indebtedness of such Person (without regard to accounting
treatment).

 

“TARGET Day” means any day on which the
Trans-European Automated Real-time Gross Settlement Express Transfer (TARGET)
payment system (or, if such payment system

 

28

 

ceases to be operative,
such other payment system (if any) determined by the Administrative Agent to be
a suitable replacement) is open for the settlement of payments in Euro.

 

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

 

“Threshold Amount” means $25,000,000.

 

“Total Outstandings” means the aggregate
Outstanding Amount of all Loans and all L/C Obligations.

 

“Towers Perrin” means Towers Watson
Pennsylvania Inc. (f/k/a Towers, Perrin, Forster & Crosby, Inc.),
a Pennsylvania corporation.

 

“TP Luxembourg” means
Towers Perrin Luxembourg Holdings S.A.R.L., a Luxembourg societe a
responsabilite limitee.

 

“Transaction” means, collectively, (i) the
Merger, (ii) the entering into of this Agreement and the initial Credit
Extensions provided hereunder on the Initial Funding Date, (iii) the
Existing Debt Retirement, (iv) the issuance and sale of the Senior
Subordinated Notes, (v) the issuance of Class A Holding Company
Stock, Class B-1 Restricted Common Stock, Class B-2 Restricted Common
Stock, Class B-3 Restricted Common Stock, Class B-4 Restricted Common
Stock, Class F Restricted Holding Company Stock, Class R Restricted
Holding Company Stock and Class S Restricted Holding Company Stock (as
each such term in this clause (v) is defined in the Merger
Agreement) and (vi) all related transactions.

 

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

 

“United States” and “U.S.” mean the
United States of America.

 

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

 

“Voting Interests” means Equity Interests
issued by any other Person, the holders of which are ordinarily, in the absence
of contingencies, entitled to vote for the election of directors (or persons
performing similar functions) of such Person, even if the right so to vote has
been suspended by the happening of such a contingency, and in any event, this
definition shall at all times be consistent with the meaning of “stock entitled
to vote” as described in Treasury Regulation Section 1.956-2(c)(2).

 

“Watson Wyatt” means Towers Watson Delaware Inc.
(f/k/a Watson Wyatt Worldwide, Inc.), a Delaware corporation.

 

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

 

1.02        Other Interpretive Provisions. 
With reference to this Agreement and each other Loan Document, unless
otherwise specified herein or in such other Loan Document:

 

29

 

(a)           The definitions of terms herein shall
apply equally to the singular and plural forms of the terms defined.  Whenever the context may require, any pronoun
shall include the corresponding masculine, feminine and neuter forms.  The words “include,” “includes”
and “including” shall be deemed to be followed by the phrase “without
limitation.”  The word “will”
shall be construed to have the same meaning and effect as the word “shall.”  Unless the context requires otherwise, (i) any
definition of or reference to any agreement, instrument or other document
(including any Organization Document) shall be construed as referring to such
agreement, instrument or other document as from time to time amended,
supplemented or otherwise modified (subject to any restrictions on such
amendments, supplements or modifications set forth herein or in any other Loan
Document), (ii) any reference herein to any Person shall be construed to
include such Person’s successors and permitted assigns, (iii) the words “herein,”
“hereof” and “hereunder,” and words of similar import when used
in any Loan Document, shall be construed to refer to such Loan Document in its
entirety and not to any particular provision thereof, (iv) all references
in a Loan Document to Articles, Sections, Exhibits and Schedules shall be
construed to refer to Articles and Sections of, and Exhibits and Schedules to,
the Loan Document in which such references appear, (v) any reference to
any law shall include all statutory and regulatory provisions consolidating,
amending, replacing or interpreting such law and any reference to any law or
regulation shall, unless otherwise specified, refer to such law or regulation
as amended, modified or supplemented from time to time, and (vi) the words
“asset” and “property” shall be construed to have the same
meaning and effect and to refer to any and all tangible and intangible assets
and properties, including cash, securities, accounts and contract rights.

 

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

 

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

 

1.03        Accounting Terms.  (a)  Generally.  All accounting terms not specifically or
completely defined herein shall be construed in conformity with, and all
financial data (including financial ratios and other financial calculations)
required to be submitted pursuant to this Agreement shall be prepared in
conformity with, GAAP applied on a consistent basis, as in effect from time to
time, applied in a manner consistent with that used in preparing the Reference
Watson Wyatt Financial Statements, except as otherwise specifically
prescribed herein.  Notwithstanding the
foregoing, for purposes of determining compliance with any covenant (including
the computation of any financial covenant) contained herein, Indebtedness of
the Company and its Subsidiaries shall be deemed to be carried at 100% of the
outstanding principal amount thereof, and the effects of FASB ASC 825 and FASB
ASC 470-20  on financial liabilities shall be
disregarded.

 

(b)          Changes in GAAP.  If at any
time any change in GAAP would affect the computation of any financial ratio or
requirement set forth in any Loan Document, and either the Company or the
Required Lenders shall so request, the Administrative Agent, the Lenders and

 

30

 

the Company shall
negotiate in good faith to amend such ratio or requirement to preserve the
original intent thereof in light of such change in GAAP (subject to the approval
of the Required Lenders, not to be unreasonably withheld, conditioned or
delayed); provided  that, until so amended, (i) such ratio or
requirement shall continue to be computed in accordance with GAAP prior to such
change therein and (ii) the Company shall provide to the Administrative
Agent and the Lenders financial statements and other documents required under
this Agreement or as reasonably requested hereunder setting forth a
reconciliation between calculations of such ratio or requirement made before
and after giving effect to such change in GAAP.

 

(c)           Consolidation of Variable Interest Entities. 
All references herein to consolidated financial statements of the
Company and its Subsidiaries or to the determination of any amount for the
Company and its Subsidiaries on a consolidated basis or any similar reference
shall, in each case, be deemed to include each variable interest entity that
the Company is required to consolidate pursuant to FASB ASC 810 as if such
variable interest entity were a Subsidiary as defined herein (provided that
such entity shall not be deemed to be a Subsidiary hereunder for any other
purpose.

 

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

 

1.05        Exchange Rates; Currency Equivalents.

 

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

 

(b)          Wherever in this Agreement in connection with a
Revolving Borrowing, conversion, continuation or prepayment of a Eurocurrency
Rate Loan or the issuance, amendment or extension of a Letter of Credit, an
amount, such as a required minimum or multiple amount, is expressed in Dollars,
but such Revolving Borrowing, Eurocurrency Rate Loan or Letter of Credit is
denominated in an Alternative Currency, such amount shall be the relevant
Alternative Currency Equivalent of such Dollar amount (rounded to the nearest
unit of such Alternative Currency, with 0.5 of a unit being rounded upward), as
determined by the Administrative Agent, such L/C Issuer or such Existing L/C
Issuer, as the case may be.

 

31

 

1.06        Additional Alternative Currencies.

 

(a)           The Company or the applicable Designated Borrower may
from time to time request that Eurocurrency Rate Loans be made and/or Letters
of Credit be issued in a currency other than those specifically listed in the
definition of “Alternative Currency”; provided that such requested
currency is a lawful currency (other than Dollars) that is readily available
and freely transferable and convertible into Dollars.  In the case of any such request with respect
to the making of Eurocurrency Rate Loans, such request shall be subject to the
consent of the Administrative Agent and the Lenders, which consent shall not be
unreasonably withheld, conditioned or delayed but shall be subject to each
Lender’s then-existing capability to offer such currency generally to its
corporate borrowers; and in the case of any such request with respect to the
issuance of Letters of Credit, such request shall be subject to the consent of
the Administrative Agent and the applicable L/C Issuer.

 

(b)          Any such request shall be made to the Administrative
Agent not later than 11:00 a.m., ten (10) Business Days prior to the
date of the desired Credit Extension (or such other time or date as may be
agreed by the Administrative Agent and, in the case of any such request
pertaining to Letters of Credit, the applicable L/C Issuer, in its or their
sole discretion).  In the case of any
such request pertaining to Eurocurrency Rate Loans, the Administrative Agent
shall promptly notify each Lender thereof; and in the case of any such request
pertaining to Letters of Credit, the Administrative Agent shall promptly notify
such L/C Issuer thereof.  Each Lender (in
the case of any such request pertaining to Eurocurrency Rate Loans) or the
applicable L/C Issuer (in the case of a request pertaining to Letters of
Credit) shall notify the Administrative Agent, not later than 11:00 a.m.,
five (5) Business Days after receipt of such request whether it consents
to the making of Eurocurrency Rate Loans or the issuance of Letters of Credit,
as the case may be, in such requested currency.

 

(c)           Any failure by a Lender or an L/C Issuer, as the case
may be, to respond to such request within the time period specified in the
preceding sentence shall be deemed to be a refusal by such Lender or such L/C
Issuer, as the case may be, to permit Eurocurrency Rate Loans to be made or
Letters of Credit to be issued in such requested currency.  If the Administrative Agent and all the
Lenders consent to making Eurocurrency Rate Loans in such requested currency,
the Administrative Agent shall promptly so notify the Company and such currency
shall thereupon be deemed for all purposes to be an Alternative Currency
hereunder for purposes of any Revolving Borrowings of Eurocurrency Rate Loans;
and if the Administrative Agent and the applicable L/C Issuer consent to the
issuance of Letters of Credit in such requested currency, the Administrative
Agent shall promptly so notify the Company and such currency shall thereupon be
deemed for all purposes to be an Alternative Currency hereunder for purposes of
any Letter of Credit issuances by such L/C Issuer. If the Administrative Agent
shall fail to obtain consent to any request for an additional currency under
this Section 1.06, the Administrative Agent shall promptly so
notify the Company.

 

1.07        Change of Currency.  (a) Each
obligation of the Borrowers to make a payment denominated in the national
currency unit of any member state of the European Union that adopts the Euro as
its lawful currency after the date hereof shall be redenominated into Euro at
the time of such adoption (in accordance with the EMU Legislation).  If, in relation to the currency of any such
member state, the basis of accrual of interest expressed in this Agreement in
respect of that currency shall be inconsistent with any convention or practice
in the London interbank market for the basis of accrual of interest in respect
of the Euro, such expressed basis

 

32

 

shall be replaced by such
convention or practice with effect from the date on which such member state
adopts the Euro as its lawful currency; provided that if any Revolving
Borrowing in the currency of such member state is outstanding immediately prior
to such date, such replacement shall take effect, with respect to such
Revolving Borrowing, at the end of the then current Interest Period.

 

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

 

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

 

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

 

1.09        Letter of Credit Amounts.  Unless otherwise specified herein, the
amount of a Letter of Credit at any time shall be deemed to be the Dollar
Equivalent of the stated amount of such Letter of Credit in effect at such
time; provided, however, that with respect to any Letter of
Credit that, by its terms or the terms of any Issuer Document related thereto,
provides for one or more automatic increases in the stated amount thereof, the
amount of such Letter of Credit shall be deemed to be the Dollar Equivalent of
the maximum stated amount of such Letter of Credit after giving effect to all
such increases, whether or not such maximum stated amount is in effect at such
time.

 

1.10        Accounting
Adjustments.

 

(a)           With respect to the computation of financial covenants
or components thereof that includes any period (the “Pro-Forma Period”)
prior to the Initial Funding Date, the financial condition and results of
operation (as applicable) of the Company and its Subsidiaries for the relevant
Pro-Forma Period shall be deemed to be those obtained by combining the
respective consolidated financial conditions and results of operations of
Towers Perrin and Watson Wyatt and their respective Subsidiaries, giving effect
to only such adjustments as are expressly provided for herein.

 

(b)          For each period of four fiscal quarters ending next following the date of any
Acquisition, for purposes of determining the Consolidated Leverage Ratio, the
consolidated results of operations of the Company and its Subsidiaries shall
include the results of operations of the Person or assets subject to such
Acquisition on a historical pro forma basis to the extent information in
sufficient detail concerning such historical results of such Person or assets
is reasonably available, and which amounts shall include only adjustments
reasonably satisfactory to Administrative Agent and shall not include any
synergies resulting from such Acquisition other than those permitted pursuant
to Regulation S-X of the SEC.

 

33

 

ARTICLE II.

THE COMMITMENTS AND CREDIT
EXTENSIONS

 

2.01        Revolving Loans.  Subject to the terms and conditions set
forth herein, each Lender severally agrees to make loans (each such loan, a “Revolving
Loan”) to the Borrowers in Dollars or in one or more Alternative Currencies
from time to time, on any Business Day during the Availability Period, in an
aggregate amount not to exceed at any time outstanding the amount of such
Lender’s Commitment; provided, however, that after giving effect
to any Revolving Borrowing, (i) the Total Outstandings shall not exceed
the Aggregate Commitments, (ii) the aggregate Outstanding Amount of the
Revolving Loans of any Lender, plus such Lender’s Applicable Percentage
of the Outstanding Amount of all L/C Obligations, plus such Lender’s
Applicable Percentage of the Outstanding Amount of all Swing Line Loans shall
not exceed such Lender’s Commitment, (iii) the aggregate Outstanding
Amount of all Revolving Loans made to the Designated Borrowers shall not exceed
the Designated Borrower Sublimit, and (iv) the aggregate Outstanding
Amount of all Revolving Loans denominated in Alternative Currencies shall not
exceed the Alternative Currency Sublimit. 
Within the limits of each Lender’s Commitment, and subject to the other
terms and conditions hereof, the Borrowers may borrow under this Section 2.01,
prepay under Section 2.05, and reborrow under this Section 2.01.  Revolving Loans may be Base Rate Loans or
Eurocurrency Rate Loans, as further provided herein.

 

2.02        Borrowings, Conversions and Continuations of Revolving Loans.

 

(a)           Each Revolving Borrowing, each conversion of Revolving
Loans from one Type to the other, and each continuation of Eurocurrency Rate
Loans shall be made upon the Company’s or the applicable Designated Borrower’s
irrevocable notice to the Administrative Agent, which may be given by
telephone.  Each such notice must be
received by the Administrative Agent not later than 11:00 a.m. (i) three
Business Days prior to the requested date of any Borrowing of, conversion to or
continuation of Eurocurrency Rate Loans denominated in Dollars or of any
conversion of Eurocurrency Rate Loans denominated in Dollars to Base Rate
Revolving Loans, (ii) four Business Days (or five Business Days in the
case of a Special Notice Currency) prior to the requested date of any Borrowing
or continuation of Eurocurrency Rate Loans denominated in Alternative
Currencies, and (iii) on the requested date of any Borrowing of Base Rate
Revolving Loans. Each telephonic notice by the Company or the applicable
Designated Borrower pursuant to this Section 2.02(a) must be
confirmed promptly by delivery to the Administrative Agent of a written
Revolving Loan Notice, appropriately completed and signed by a Responsible
Officer of the Company or the applicable Designated Borrower.  Each Borrowing of, conversion to or
continuation of Eurocurrency Rate Loans shall be in a principal amount of
$2,000,000 or a whole multiple of $500,000 in excess thereof.  Except as provided in Sections 2.03(c) and
2.04(c), each Revolving Borrowing of or conversion to Base Rate
Revolving Loans shall be in a principal amount of $500,000 or a whole multiple
of $100,000 in excess thereof.  Each
Revolving Loan Notice (whether telephonic or written) shall specify (i) whether
the Company or the applicable Designated Borrower is requesting a Revolving
Borrowing, a conversion of Revolving Loans from one Type to the other, or a
continuation of Eurocurrency Rate Loans, (ii) the requested date of the
Borrowing, conversion or continuation, as the case may be (which shall be a Business
Day), (iii) the principal amount of Revolving Loans to be borrowed,
converted or continued, (iv) the Type of Revolving Loans to be borrowed or
to

 

34

 

which existing Revolving
Loans are to be converted, (v) if applicable, the duration of the Interest
Period with respect thereto, (vi) the currency of the Revolving Loans to
be borrowed, and (vii) if applicable and if such notice is submitted by
the Company on behalf of a Designated Borrower, the Designated Borrower.  If the Company or the applicable Designated
Borrower fails to specify a currency in a Revolving Loan Notice requesting a
Borrowing, then the Revolving Loans so requested shall be made in Dollars.  If the Company fails to specify the Borrower
to whom the Revolving Loans shall be made in a Revolving Loan Notice requesting
a Borrowing, then the Revolving Loans so requested shall be made to the
Company.  If the Company or the
applicable Designated Borrower fails to specify a Type of Revolving Loan in a
Revolving Loan Notice or if the Company fails to give a timely notice
requesting a conversion or continuation, then the applicable Revolving Loans
shall be made as, or converted to, Base Rate Loans; provided, however,
that in the case of a failure to timely request a continuation of Revolving
Loans denominated in an Alternative Currency, such Loans shall be continued as
Eurocurrency Rate Loans in their original currency with an Interest Period of
one month.  Any automatic conversion to
Base Rate Loans shall be effective as of the last day of the Interest Period
then in effect with respect to the applicable Eurocurrency Rate Loans.  If the Company or the applicable Designated
Borrower requests a Borrowing of, conversion to, or continuation of Eurocurrency
Rate Loans in any such Revolving Loan Notice, but fails to specify an Interest
Period, it will be deemed to have specified an Interest Period of one
month.  No Revolving Loan may be
converted into or continued as a Revolving Loan denominated in a different
currency, but instead must be prepaid in the original currency of such
Revolving Loan and reborrowed in the other currency.

 

(b)          Following receipt of a Revolving Loan Notice, the
Administrative Agent shall promptly notify each Lender of the amount (and currency)
of its Applicable Percentage of the applicable Revolving Loans, and if no
timely notice of a conversion or continuation is provided by the Company or the
applicable Designated Borrower, the Administrative Agent shall notify each
Lender of the details of any automatic conversion to Base Rate Loans or
continuation of Revolving Loans denominated in a currency other than Dollars,
in each case as described in the preceding subsection.  In the case of a Revolving Borrowing, each
Lender shall make the amount of its Revolving Loan available to the
Administrative Agent in Same Day Funds at the Administrative Agent’s Office for
the applicable currency not later than 1:00 p.m., in the case of any
Revolving Loan denominated in Dollars, and not later than the Applicable Time
specified by the Administrative Agent in the case of any Revolving Loan in an
Alternative Currency, in each case on the Business Day specified in the
applicable Revolving Loan Notice.  Each Lender
may, at its option, make any Loan available to any Designated Borrower that is
a Foreign Subsidiary by causing any foreign or domestic branch or Affiliate of
such Lender to make such Loan; provided that any exercise of such option
shall not affect the obligation of such Designated Borrower that is a Foreign
Subsidiary to repay such Loan in accordance with the terms of this Agreement or
any obligation of such Lender hereunder or the rights of any other party to the
Credit Agreement in respect of such Lender.  Upon
satisfaction of the applicable conditions set forth in Section 4.03
(and, if such Borrowing is the initial Credit Extension, Sections 4.01
and 4.02), the Administrative Agent shall make all funds so received
available to the Company or the applicable Designated Borrower in like funds as
received by the Administrative Agent either by (i) crediting the account
of such Borrower on the books of the Administrative Agent with the amount of
such funds or (ii) wire transfer of such funds, in each case in accordance
with instructions provided to (and reasonably acceptable to) the Administrative
Agent by the Company or the applicable Designated Borrower; provided, however,
that if, on the date the 

 

35

 

Revolving Loan Notice
with respect to such Borrowing denominated in Dollars is given by the Company
or the applicable Designated Borrower, there are L/C Borrowings outstanding,
then the proceeds of such Borrowing, first, shall be applied to the
payment in full of any such L/C Borrowings, and, second, shall be made
available to the applicable Borrower as provided above.

 

(c)           Except as otherwise provided herein, a Eurocurrency
Rate Loan may be continued or converted only on the last day of an Interest
Period for such Eurocurrency Rate Loan. 
During the existence of a Default, no Loans may be requested as,
converted to or continued as Eurocurrency Rate Loans (whether in Dollars or any
Alternative Currency) without the consent of the Required Lenders, and the
Required Lenders may demand that any or all of the then outstanding
Eurocurrency Rate Loans denominated in an Alternative Currency be prepaid, or
redenominated into Dollars in the amount of the Dollar Equivalent thereof, on
the last day of the then current Interest Period with respect thereto.

 

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

 

(e)           After giving effect to all Revolving Borrowings, all
conversions of Revolving Loans from one Type to the other, and all
continuations of Revolving Loans as the same Type, there shall not be more than
twelve (12) Interest Periods in effect with respect to Revolving Loans.

 

2.03        Letters of Credit.

 

(a)           The Letter of Credit Commitment.

 

(i)            Subject to the terms and conditions set
forth herein, (A) each L/C Issuer, and for purposes of clause (2) each
Existing L/C Issuer, agrees, in reliance upon the agreements of the Lenders set
forth in this Section 2.03, (1) from time to time on any
Business Day during the period from the Initial Funding Date until the Letter
of Credit Expiration Date, to issue Letters of Credit denominated in Dollars or
in one or more Alternative Currencies for the account of the Company or its
Subsidiaries, and to amend or extend Letters of Credit previously issued by it,
in accordance with subsection (b) below, and (2) to honor
drawings under the Letters of Credit; and (B) the Lenders severally agree
to participate in Letters of Credit issued for the account of the Company or
its Subsidiaries  and any drawings thereunder; provided
that after giving effect to any L/C Credit Extension with respect to any Letter
of Credit, (x) the Total Outstandings shall not exceed the Aggregate
Commitments, (y) the aggregate Outstanding Amount of the Revolving Loans
of any Lender, plus such Lender’s Applicable Percentage of the
Outstanding Amount of all L/C Obligations, plus such Lender’s Applicable
Percentage of the Outstanding Amount of all Swing Line Loans shall not exceed
such Lender’s Commitment, and (z) the Outstanding Amount of the L/C
Obligations shall not exceed the Letter of Credit Sublimit.  Each request by the Company or the applicable
Designated

 

36

 

Borrower for the issuance or amendment of a Letter of Credit shall be
deemed to be a representation by the Company or the applicable Designated
Borrower that the L/C Credit Extension so requested complies with the
conditions set forth in the proviso to the preceding sentence.  Within the foregoing limits, and subject to
the terms and conditions hereof, the ability of the Company or the applicable
Designated Borrower to obtain Letters of Credit shall be fully revolving, and
accordingly the Company or the applicable Designated Borrower may, during the
foregoing period, obtain Letters of Credit to replace Letters of Credit that
have expired or that have been drawn upon and reimbursed.  On the Initial Funding Date, all Existing
Letters of Credit shall be deemed to have been issued pursuant hereto, and from
and after the Initial Funding Date, shall be subject to and governed by the
terms and conditions hereof.  Within
sixty (60) days following the Initial Funding Date, the Company will cause each
Existing Letter of Credit issued by SunTrust Bank to be returned to SunTrust
Bank with instructions from the applicable beneficiaries to cancel such
Existing Letter of Credit.  The Company
agrees to promptly notify the Administrative Agent of the designation of any
Lender or Affiliate of a Lender as an L/C Issuer.

 

(ii)           No L/C Issuer shall issue any Letter of
Credit, if:

 

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

 

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

 

(iii)          No
L/C Issuer shall be under any obligation to issue any Letter of Credit if:

 

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

 

(B)           the issuance of such Letter of Credit
would violate one or more policies of such L/C Issuer applicable to letters of
credit generally;

 

37

 

(C)           except as otherwise agreed by the
Administrative Agent and such L/C Issuer, such Letter of Credit is in an
initial stated amount less than $250,000;

 

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

 

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

 

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

 

(G)           any Lender is at such time a
Defaulting Lender, unless (x) such L/C Issuer (in its sole discretion) has
entered into arrangements satisfactory to such L/C Issuer with the Company or the applicable Designated Borrower or such
Defaulting Lender to eliminate such L/C Issuer’s actual or potential Fronting
Exposure with respect to such Defaulting Lender as to the Letter of Credit then
proposed to be issued or (y) each L/C Issuer having actual or potential
Fronting Exposure with respect to issued Letters of Credit has entered into
arrangements satisfactory to each such L/C Issuer as to Letters of Credit
issued by it (in its sole discretion) with the Company, the applicable Designated Borrower or such
Defaulting Lender to eliminate such actual or potential risk.

 

(iv)          Neither any L/C Issuer nor any Existing
L/C Issuer shall amend any Letter of Credit if such L/C Issuer or Existing L/C
Issuer, as applicable, would not be permitted at such time to issue such Letter
of Credit in its amended form under the terms hereof.

 

(v)           Neither any L/C Issuer nor any Existing
L/C Issuer shall be under any obligation to amend any Letter of Credit if (A) such
L/C Issuer or Existing L/C Issuer, as applicable, would not have any obligation
at such time to issue such Letter of Credit in its amended form under the terms
hereof, or (B) the beneficiary of such Letter of Credit does not accept
the proposed amendment to such Letter of Credit.

 

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

 

38

 

(b)                                 Procedures for Issuance and Amendment of
Letters of Credit; Auto-Extension Letters of Credit.

 

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

 

(ii)                                  Promptly after receipt of any Letter of
Credit Application, the applicable L/C Issuer or Existing L/C Issuer will
confirm with the Administrative Agent (by telephone or in writing) (a) that
the Administrative Agent has received a copy of such Letter of Credit
Application from the Company or the applicable Designated Borrower and, if not,
such L/C Issuer or Existing L/C Issuer, as applicable, will provide the
Administrative Agent with a copy thereof and (b) the Outstanding Amount of
all L/C Obligations as of such date. 
Unless the applicable L/C Issuer or Existing L/C Issuer has received
written notice from any Lender, the Administrative Agent, the Company or a
Designated Borrower, at least one (1) Business Day prior to the requested
date of issuance or amendment of the applicable Letter of Credit, that one or
more applicable conditions contained in Article IV shall not then
be satisfied, then, subject to the terms and conditions hereof, such L/C Issuer
shall, on the requested date, issue a Letter of Credit for the account of the Company,
the applicable Designated Borrower, or other applicable Subsidiary or such L/C
Issuer or Existing L/C Issuer, as applicable, shall enter into the applicable
amendment, as the case may be, in each case in accordance with such 

 

39

 

L/C Issuer’s or Existing L/C Issuer’s, as applicable, usual and
customary business practices. 
Immediately upon the issuance of each Letter of Credit (and upon the
Initial Funding Date with respect to each Existing Letter of Credit), each
Lender shall be deemed to, and hereby irrevocably and unconditionally agrees
to, purchase from the applicable L/C Issuer or Existing L/C Issuer a risk
participation in such Letter of Credit in an amount equal to the product of
such Lender’s Applicable Percentage times the amount of such Letter of
Credit.

 

(iii)                               If the Company or the applicable Designated Borrower
so requests in any applicable Letter of Credit Application, the applicable L/C
Issuer may, in its sole and absolute discretion, agree to issue a Letter of
Credit that has automatic extension provisions (each, an “Auto-Extension
Letter of Credit”); provided that any such Auto-Extension Letter of
Credit must permit such L/C Issuer to prevent any such extension at least once
in each twelve-month period (commencing with the date of issuance of such
Letter of Credit) by giving prior notice to the beneficiary thereof not later
than a day (the “Non-Extension Notice Date”) in each such twelve-month
period to be agreed upon at the time such Letter of Credit is issued.  Unless otherwise directed by the applicable
L/C Issuer, neither the Company nor the applicable Designated Borrower shall be
required to make a specific request to such L/C Issuer for any such
extension.  Once an Auto-Extension Letter
of Credit has been issued, the Lenders shall be deemed to have authorized (but
may not require) the applicable L/C Issuer to permit the extension of such
Letter of Credit at any time to an expiry date not later than the Letter of
Credit Expiration Date; provided, however, that such L/C Issuer
shall not permit any such extension if (A) such L/C Issuer has determined
that it would not be permitted, or would have no obligation, at such time to
issue such Letter of Credit in its revised form (as extended) under the terms
hereof (by reason of the provisions of clause (ii) or (iii) of
Section 2.03(a) or otherwise), or (B) it has received
notice (which may be by telephone or in writing) on or before the day that is
seven Business Days before the Non-Extension Notice Date (1) from the
Administrative Agent that the Required Lenders have elected not to permit such
extension or (2) from the Administrative Agent, any Lender, the Company or
any Designated Borrower that one or more of the applicable conditions specified
in Section 4.03 is not then satisfied, and in each such case
directing such L/C Issuer not to permit such extension.

 

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

 

(v)                                 Notwithstanding anything to the contrary
contained herein, the Existing L/C Issuers may (but shall be under no
obligation to) amend Existing Letters of Credit (subject to the restrictions on
such amendment set forth above) but shall not issue any Letters of Credit
hereunder.

 

40

 

(c)                                  Drawings and Reimbursements; Funding of
Participations.

 

(i)                                     Upon receipt from the beneficiary of any
Letter of Credit of any notice of a drawing under such Letter of Credit, the
applicable L/C Issuer or Existing L/C Issuer shall notify the Company or the
applicable Designated Borrower and the Administrative Agent thereof.  In the case of a Letter of Credit denominated
in an Alternative Currency, the Company or the applicable Designated Borrower
shall reimburse the applicable L/C Issuer or Existing L/C Issuer in such
Alternative Currency, unless (A) the applicable L/C Issuer or Existing L/C
Issuer (at its option) shall have specified in such notice that it will require
reimbursement in Dollars, or (B) in the absence of any such requirement
for reimbursement in Dollars, the Company or the applicable Designated Borrower
shall have notified the applicable L/C Issuer or Existing L/C Issuer promptly
following receipt of the notice of drawing that the Company or the applicable
Designated Borrower will reimburse such L/C Issuer or Existing L/C Issuer, as
applicable, in Dollars.  In the case of
any such reimbursement in Dollars of a drawing under a Letter of Credit
denominated in an Alternative Currency, the applicable L/C Issuer or Existing
L/C Issuer shall notify the Company or the applicable Designated Borrower of
the Dollar Equivalent of the amount of the drawing promptly following the
determination thereof.  Not later than 11:00 a.m.
on the date of any payment by the applicable L/C Issuer or Existing L/C Issuer
under a Letter of Credit to be reimbursed in Dollars, or the Applicable Time on
the date of any payment by the applicable L/C Issuer or Existing L/C Issuer
under a Letter of Credit to be reimbursed in an Alternative Currency (each such
date, an “Honor Date”), the Company or the applicable Designated
Borrower shall reimburse such L/C Issuer or Existing L/C Issuer, as applicable,
through the Administrative Agent in an amount equal to the amount of such
drawing and in the applicable currency. 
If the Company or the applicable Designated Borrower fails to so
reimburse the applicable L/C Issuer or Existing L/C Issuer by such time, the
Administrative Agent shall promptly notify each Lender of the Honor Date, the
amount of the unreimbursed drawing (expressed in Dollars in the amount of the
Dollar Equivalent thereof in the case of a Letter of Credit denominated in an
Alternative Currency) (the “Unreimbursed Amount”), and the amount of
such Lender’s Applicable Percentage thereof. 
In such event, the Company or the applicable Designated Borrower shall
be deemed to have requested a Revolving Borrowing of Base Rate Loans to be
disbursed on the Honor Date in an amount equal to the Unreimbursed Amount,
without regard to the minimum and multiples specified in Section 2.02
for the principal amount of Base Rate Loans, but subject to the amount of the
unutilized portion of the Aggregate Commitments and the conditions set forth in
Section 4.03 (other than the delivery of a Revolving Loan
Notice).  Any notice given by the
applicable L/C Issuer, the applicable Existing L/C Issuer or the Administrative
Agent pursuant to this Section 2.03(c)(i) may be given by
telephone if immediately confirmed in writing; provided that the lack of
such an immediate confirmation shall not affect the conclusiveness or binding
effect of such notice.

 

(ii)                                  Each Lender shall upon any notice
pursuant to Section 2.03(c)(i) make funds available (including
for this purpose the application of available Cash Collateral provided for this
purpose pursuant to Section 2.03(a)(iii)(G)) to the Administrative
Agent for the account of the applicable L/C Issuer or Existing L/C Issuer, in
Dollars, at the Administrative Agent’s Office for Dollar-denominated payments
in an amount equal to 

 

41

 

its Applicable Percentage of the Unreimbursed Amount not later than
1:00 p.m. on the Business Day specified in such notice by the
Administrative Agent, whereupon, subject to the provisions of Section 2.03(c)(iii),
each Lender that so makes funds available shall be deemed to have made a Base
Rate Revolving Loan to the Company or the applicable Designated Borrower in
such amount.  The Administrative Agent
shall remit the funds so received to the applicable L/C Issuer or Existing L/C
Issuer in Dollars.

 

(iii)                               With respect to any Unreimbursed Amount that is not
fully refinanced by a Revolving Borrowing of Base Rate Loans because the
conditions set forth in Section 4.03 cannot be satisfied or for any
other reason, the Company or the applicable Designated Borrower shall be deemed
to have incurred from the applicable L/C Issuer or Existing L/C Issuer an L/C
Borrowing in the amount of the Unreimbursed Amount that is not so refinanced,
which L/C Borrowing shall be due and payable on demand (together with interest)
and shall bear interest at the Default Rate. 
In such event, each Lender’s payment to the Administrative Agent for the
account of the applicable L/C Issuer or Existing L/C Issuer pursuant to Section 2.03(c)(ii) shall
be deemed payment in respect of its participation in such L/C Borrowing and
shall constitute an L/C Advance from such Lender in satisfaction of its
participation obligation under this Section 2.03.

 

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

 

(v)                                 Each Lender’s obligation to make
Revolving Loans or L/C Advances to reimburse the applicable L/C Issuer or
Existing L/C Issuer for amounts drawn under Letters of Credit, as contemplated
by this Section 2.03(c), shall be absolute and unconditional and
shall not be affected by any circumstance, including (A) any setoff,
counterclaim, recoupment, defense or other right which such Lender or any other
Person may have against the applicable L/C Issuer or Existing L/C Issuer, the
Company, any Subsidiary or any other Person for any reason whatsoever; (B) the
occurrence or continuance of a Default or the termination of the Commitments,
or (C) any other occurrence, event or condition, whether or not similar to
any of the foregoing; provided, however, that each Lender’s
obligation to make Revolving Loans pursuant to this Section 2.03(c) is
subject to the conditions set forth in Section 4.03 (other than
delivery by the Company or the applicable Designated Borrower of a Revolving
Loan Notice).  No such making of an L/C
Advance shall relieve or otherwise impair the obligation of the Company or the
applicable Designated Borrower to reimburse the applicable L/C Issuer or
Existing L/C Issuer for the amount of any payment made by such L/C Issuer or
Existing L/C Issuer, as applicable, under any Letter of Credit, together with
interest as provided herein.

 

(vi)                              If any Lender fails to make available to
the Administrative Agent for the account of the applicable L/C Issuer or
Existing L/C Issuer any amount required to be paid by such Lender pursuant to
the foregoing provisions of this Section 2.03(c) by the time
specified in Section 2.03(c)(ii), then, without limiting the other
provisions of this 

 

42

 

Agreement, such L/C Issuer or Existing L/C Issuer, as applicable, shall
be entitled to recover from such Lender (acting through the Administrative
Agent), on demand, such amount with interest thereon for the period from the
date such payment is required to the date on which such payment is immediately
available to such L/C Issuer or Existing L/C Issuer, as applicable, at a rate
per annum equal to the applicable Overnight Rate from time to time in effect,
plus any administrative, processing or similar fees customarily charged by such
L/C Issuer or Existing L/C Issuer, as applicable, in connection with the
foregoing.  If such Lender pays such
amount (with interest and fees as aforesaid), the amount so paid shall
constitute such Lender’s Revolving Loan included in the relevant Revolving
Borrowing or L/C Advance in respect of the relevant L/C Borrowing, as the case
may be.  A certificate of the applicable
L/C Issuer or Existing L/C Issuer submitted to any Lender (through the
Administrative Agent) with respect to any amounts owing under this clause (vi) shall
be conclusive absent manifest error.

 

(d)                                 Repayment of Participations.

 

(i)                                     At any time after the applicable L/C
Issuer or Existing L/C Issuer has made a payment under any Letter of Credit and
has received from any Lender such Lender’s L/C Advance in respect of such
payment in accordance with Section 2.03(c), if the Administrative
Agent receives for the account of such L/C Issuer or Existing L/C Issuer, as
applicable, any payment in respect of the related Unreimbursed Amount or
interest thereon (whether directly from the Company or otherwise, including
proceeds of Cash Collateral applied thereto by the Administrative Agent), the
Administrative Agent will distribute to such Lender its Applicable Percentage
thereof in Dollars and in the same funds as those received by the
Administrative Agent.

 

(ii)                                  If any payment received by the
Administrative Agent for the account of the applicable L/C Issuer or Existing
L/C Issuer pursuant to Section 2.03(c)(i) is required to be
returned under any of the circumstances described in Section 10.05
(including pursuant to any settlement entered into by such L/C Issuer or
Existing L/C Issuer, as applicable, in its discretion), each Lender shall pay
to the Administrative Agent for the account of such L/C Issuer or Existing L/C
Issuer, as applicable, its Applicable Percentage thereof on demand of the
Administrative Agent, plus interest thereon from the date of such demand to the
date such amount is returned by such Lender, at a rate per annum equal to the
applicable Overnight Rate from time to time in effect.  The obligations of the Lenders under this
clause shall survive the payment in full of the Obligations and the termination
of this Agreement.

 

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

 

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

 

43

 

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

 

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

 

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

 

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

 

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

 

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

 

(f)                                    Role of L/C Issuer.  Each Lender, the Company and each
Designated Borrower agree that, in paying any drawing under a Letter of Credit,
the applicable L/C Issuer or Existing L/C Issuer shall not have any
responsibility to obtain any document (other than any sight draft, certificates
and documents expressly required by the Letter of Credit or a related sight
draft) or to ascertain or inquire as to the validity or accuracy of any such
document or the authority of the Person executing or delivering any such
document.  None of the applicable L/C
Issuer, the 

 

44

 

applicable Existing L/C
Issuer, the Administrative Agent, any of their respective Related Parties nor
any correspondent, participant or permitted assignee of the applicable L/C
Issuer or Existing L/C Issuer shall be liable to any Lender for (i) any
action taken or omitted in connection herewith at the request or with the
approval of the Lenders or the Required Lenders, as applicable; (ii) any
action taken or omitted in the absence of gross negligence or willful
misconduct; or (iii) the due execution, effectiveness, validity or
enforceability of any document or instrument related to any Letter of Credit or
Issuer Document.  The Company and each
Designated Borrower hereby assumes all risks of the acts or omissions of any
beneficiary or transferee with respect to its use of any Letter of Credit; provided,
however, that this assumption is not intended to, and shall not,
preclude the Company’s or the applicable Designated Borrower’s pursuing such
rights and remedies as it may have against the beneficiary or transferee at law
or under any other agreement.  None of
the applicable L/C Issuer, applicable Existing L/C Issuer, the Administrative
Agent, any of their respective Related Parties nor any correspondent,
participant or assignee of such L/C Issuer or Existing L/C Issuer, as
applicable, shall be liable or responsible for any of the matters described in clauses
(i) through (v) of Section 2.03(e); provided,
however, that anything in such clauses to the contrary notwithstanding,
the Company or the applicable Designated Borrower may have a claim against such
L/C Issuer or Existing L/C Issuer, as applicable, and such L/C Issuer or
Existing L/C Issuer, as applicable, may be liable to the Company or the
applicable Designated Borrower, as the case may be, to the extent, but only to
the extent, of any direct, as opposed to consequential or exemplary, damages
suffered by the Company or the applicable Designated Borrower which the Company
or the applicable Designated Borrower proves were caused by such L/C Issuer’s
or Existing L/C Issuer’s, as applicable, willful misconduct or gross negligence
as determined by a court of competent jurisdiction by a final and nonappealable
judgment or such L/C Issuer’s or Existing L/C Issuer’s, as applicable, willful
or grossly negligent failure to pay under any Letter of Credit after the
presentation to it by the beneficiary of a sight draft and certificate(s) strictly
complying with the terms and conditions of a Letter of Credit.   In furtherance and
not in limitation of the foregoing, the applicable L/C Issuer or Existing L/C
Issuer may accept documents that appear on their face to be in order, without
responsibility for further investigation, regardless of any notice or
information to the contrary, and such L/C Issuer or Existing L/C Issuer, as
applicable, shall not be responsible for the validity or sufficiency of any
instrument transferring or assigning or purporting to transfer or assign a
Letter of Credit or the rights or benefits thereunder or proceeds thereof, in
whole or in part, which may prove to be invalid or ineffective for any reason.

 

(g)                                 Applicability of ISP. 
Unless otherwise expressly agreed by the applicable L/C Issuer or
Existing L/C Issuer and the Company or the applicable Designated Borrower when
a Letter of Credit is issued (including any such agreement applicable to an
Existing Letter of Credit), the rules of the ISP shall apply to each
Letter of Credit.

 

(h)                                 Letter of Credit Fees. 
The Company shall, on and after the Initial Funding Date, pay to the
Administrative Agent for the account of each Lender in accordance with its
Applicable Percentage, in Dollars,  a Letter of
Credit fee (the “Letter of Credit Fee”)  for
each Letter of Credit equal to the Applicable Rate times the Dollar
Equivalent of the actual daily amount available to be drawn under such Letter
of Credit; provided, however, any Letter of Credit Fees otherwise
payable for the account of a Defaulting Lender with respect to any Letter of
Credit as to which such Defaulting Lender has not provided Cash Collateral
arrangements satisfactory to the applicable L/C Issuer or Existing L/C Issuer
pursuant to this Section 2.03 shall be payable, to the 

 

45

 

maximum extent permitted
by applicable Laws, to the other Lenders in accordance with the upward
adjustments in their respective Applicable Percentages allocable to such Letter
of Credit pursuant to Section 2.17(d), with the balance of such
fee, if any, payable to such L/C Issuer or Existing L/C Issuer, as applicable,
for its own account.  For purposes of
computing the daily amount available to be drawn under any Letter of Credit,
the amount of such Letter of Credit shall be determined in accordance with Section 1.09.  Letter of Credit Fees shall be (i) due
and payable on the first Business Day after the end of each March, June, September and
December, commencing with the first such date to occur after the issuance of
such Letter of Credit (or the Initial Funding Date with respect to each
Existing Letter of Credit), on the Letter of Credit Expiration Date and
thereafter on demand and (ii) computed on a quarterly basis in
arrears.  If there is any change in the
Applicable Rate during any quarter, the actual daily amount available to be
drawn under each Letter of Credit shall be computed and multiplied by the
Applicable Rate separately for each period during such quarter that such
Applicable Rate was in effect. 
Notwithstanding anything to the contrary contained herein, upon the
request of the Required Lenders, while any Event of Default exists, all Letter
of Credit Fees shall accrue at the Default Rate.

 

(i)                                     Fronting Fee and Documentary and
Processing Charges Payable to L/C Issuer.  The Company or the applicable
Designated Borrower shall, on and after the Initial Funding Date, pay directly
to each L/C Issuer for its own account, in Dollars, a fronting fee with respect
to each Letter of Credit (other than Existing Letters of Credit), at the rate
per annum specified in the Joint Fee Letter, computed on the Dollar Equivalent
of the actual daily amount available to be drawn under such Letter of Credit on
a quarterly basis in arrears.  Such
fronting fee shall be due and payable on the tenth Business Day after the end
of each March, June, September and December in respect of the most
recently-ended quarterly period (or portion thereof, in the case of the first
payment), commencing with the first such date to occur after the issuance of
such Letter of Credit, on the Letter of Credit Expiration Date and thereafter
on demand.  For purposes of computing the
actual daily amount available to be drawn under any Letter of Credit, the amount
of such Letter of Credit shall be determined in accordance with Section 1.09.  In addition, the Company or the applicable
Designated Borrower shall, on and after the Initial Funding Date, pay directly
to each L/C Issuer for its own account, in Dollars, the customary issuance,
presentation, amendment and other processing fees, and other standard costs and
charges, of such L/C Issuer relating to letters of credit as from time to time
in effect with respect to each Letter of Credit.  The Company or applicable Subsidiary shall
have paid or will pay directly to each Existing L/C Issuer for its own account
a fronting fee with respect to each applicable Existing Letter of Credit in
accordance with the terms agreed with such Existing L/C Issuer.  In addition, the Company or applicable
Subsidiary shall pay directly to each Existing L/C Issuer for its own account
the customary issuance, presentation, amendment and other processing fees, and
other standard costs and charges, of such Existing L/C Issuer relating to letters
of credit as from time to time in effect. 
Such customary fees and standard costs and charges are due and payable
on demand and are nonrefundable.

 

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

 

(k)                                  Letters of Credit Issued for Subsidiaries. 
Notwithstanding that a Letter of Credit issued or outstanding hereunder
is in support of any obligations of, or is for the account of, a 

 

46

 

Designated Borrower or
other Subsidiary of the Company, the Company shall be obligated to reimburse
the applicable L/C Issuer or Existing L/C Issuer hereunder for any and all
drawings under such Letter of Credit. 
The Company hereby acknowledges that the issuance of Letters of Credit
for the account of Designated Borrowers and other if its Subsidiaries inures to
the benefit of the Company, and that the Company’s business derives substantial
benefits from the businesses of such Designated Borrowers and such other of its
Subsidiaries.

 

(l)                                     Letters of Credit Reports.  For so long as any Letter of
Credit issued by an L/C Issuer or Existing L/C Issuer is outstanding, such L/C
Issuer or Existing L/C Issuer, as applicable, shall deliver to the
Administrative Agent on the last Business Day of each calendar month, and on
each date that an L/C Credit Extension occurs with respect to any such Letter
of Credit, a report in the form of Exhibit J hereto, appropriately
completed with the information for every outstanding Letter of Credit issued by
such L/C Issuer or Existing L/C Issuer. 
The Administrative Agent shall deliver to the Lenders on a monthly basis
a report of all outstanding Letters of Credit.

 

2.04                        Swing Line Loans.

 

(a)                                  The Swing Line. 
Subject to the terms and conditions set forth herein, the Swing Line
Lender, in reliance upon the agreements of the other Lenders set forth in this Section 2.04,
may in its sole discretion make loans in Dollars (each such loan, a “Swing
Line Loan”) to the Company from time to time on any Business Day during the
Availability Period in an aggregate amount not to exceed at any time
outstanding the amount of the Swing Line Sublimit, notwithstanding the fact
that such Swing Line Loans, when aggregated with the Applicable Percentage of
the Outstanding Amount of Revolving Loans and L/C Obligations of the Lender
acting as Swing Line Lender, may exceed the amount of such Lender’s Commitment;
provided, however, that after giving effect to any Swing Line
Loan, (i) the Total Outstandings shall not exceed the Aggregate
Commitments, and (ii) the aggregate Outstanding Amount of the Revolving
Loans of any Lender, plus such Lender’s Applicable Percentage of the
Outstanding Amount of all L/C Obligations, plus such Lender’s Applicable
Percentage of the Outstanding Amount of all Swing Line Loans shall not exceed
such Lender’s Commitment, and provided, further, that the Company
shall not use the proceeds of any Swing Line Loan to refinance any outstanding
Swing Line Loan.  Within the foregoing
limits, and subject to the other terms and conditions hereof, the Company may
borrow under this Section 2.04, prepay under Section 2.05,
and reborrow under this Section 2.04.  Each Swing Line Loan shall be a Base Rate
Loan.  Immediately upon the making of a
Swing Line Loan, each Lender shall be deemed to, and hereby irrevocably and
unconditionally agrees to, purchase from the Swing Line Lender a risk
participation in such Swing Line Loan in an amount equal to the product of such
Lender’s Applicable Percentage times the amount of such Swing Line Loan.

 

(b)                                 Borrowing Procedures. 
Each Swing Line Borrowing shall be made upon the Company’s irrevocable
notice to the Swing Line Lender and the Administrative Agent, which may be given
by telephone. Each such notice must be received by the Swing Line Lender and
the Administrative Agent not later than 1:00 p.m. on the requested
borrowing date, and shall specify (i) the amount to be borrowed, which
shall be a minimum of $100,000 or a whole multiple of $50,000 in excess
thereof, and (ii) the requested borrowing date, which shall be a Business
Day.  Each such telephonic notice must be
confirmed promptly by delivery to the Swing Line Lender 

 

47

 

and the Administrative
Agent of a written Swing Line Loan Notice, appropriately completed and signed
by a Responsible Officer of the Company. 
Promptly after receipt by the Swing Line Lender of any telephonic Swing
Line Loan Notice, the Swing Line Lender will confirm with the Administrative
Agent (by telephone or in writing) that the Administrative Agent has also
received such Swing Line Loan Notice and, if not, the Swing Line Lender will
notify the Administrative Agent (by telephone or in writing) of the contents
thereof.  Unless the Swing Line Lender
has received notice (by telephone or in writing) from the Administrative Agent
(including at the request of any Lender) prior to 2:00 p.m. on the date of
the proposed Swing Line Borrowing (A) directing the Swing Line Lender not
to make such Swing Line Loan as a result of the limitations set forth in the
first proviso to the first sentence of Section 2.04(a), or (B) that
one or more of the applicable conditions specified in Article IV is
not then satisfied, then, subject to the terms and conditions hereof, the Swing
Line Lender will, following its determination in its discretion to make such
Swing Line Loan, not later than 3:00 p.m. on the borrowing date specified
in such Swing Line Loan Notice, make the amount of its Swing Line Loan
available to the Company at its office by crediting the account of the Company
on the books of the Swing Line Lender in Same Day Funds.

 

(c)                                  Refinancing of Swing Line Loans.

 

(i)                                     The Swing Line Lender at any time in its
sole and absolute discretion may request, on behalf of the Company (which
hereby irrevocably authorizes the Swing Line Lender to so request on its
behalf), that each Lender make a Base Rate Revolving Loan in an amount equal to
such Lender’s Applicable Percentage of the amount of Swing Line Loans then
outstanding.  Such request shall be made
in writing (which written request shall be deemed to be a Revolving Loan Notice
for purposes hereof) and in accordance with the requirements of Section 2.02,
without regard to the minimum and multiples specified therein for the principal
amount of Base Rate Loans, but subject to the unutilized portion of the
Aggregate Commitments and the conditions set forth in Section 4.03.  The Swing Line Lender shall furnish the
Company with a copy of the applicable Revolving Loan Notice promptly after
delivering such notice to the Administrative Agent.  Each Lender shall make an amount equal to its
Applicable Percentage of the amount specified in such Revolving Loan Notice
available (which may be by release of Cash Collateral previously provided by
such Lender in accordance with Section 2.04(c)(v)) to the
Administrative Agent in Same Day Funds for the account of the Swing Line Lender
at the Administrative Agent’s Office for Dollar-denominated payments not later
than 1:00 p.m. on the day specified in such Revolving Loan Notice,
whereupon, subject to Section 2.04(c)(ii), each Lender that so
makes funds available shall be deemed to have made a Base Rate Revolving Loan
to the Company in such amount.  The
Administrative Agent shall remit the funds so received to the Swing Line
Lender.

 

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

 

48

 

(iii)                               If any Lender fails to make available to the
Administrative Agent for the account of the Swing Line Lender any amount
required to be paid by such Lender pursuant to the foregoing provisions of this
Section 2.04(c) by the time specified in Section 2.04(c)(i),
the Swing Line Lender shall be entitled to recover from such Lender (acting
through the Administrative Agent), on demand, such amount with interest thereon
for the period from the date such payment is required to the date on which such
payment is immediately available to the Swing Line Lender at a rate per annum
equal to the applicable Overnight Rate from time to time in effect, plus any
administrative processing or similar fees customarily charged by the Swing Line
Lender in connection with the foregoing. 
If such Lender pays such amount (with interest and fees as aforesaid),
the amount so paid shall constitute such Lender’s Revolving Loan included in
the relevant Revolving Borrowing or funded participation in the relevant Swing
Line Loan, as the case may be.  A
certificate of the Swing Line Lender submitted to any Lender (through the
Administrative Agent) with respect to any amounts owing under this clause (iii) shall
be conclusive absent manifest error.

 

(iv)                              Each Lender’s obligation to make Revolving
Loans or to purchase and fund risk participations in Swing Line Loans pursuant
to this Section 2.04(c) shall be absolute and unconditional
and shall not be affected by any circumstance, including (A) any setoff,
counterclaim, recoupment, defense or other right which such Lender may have
against the Swing Line Lender, the Company or any other Person for any reason
whatsoever, (B) the occurrence or continuance of a Default, or (C) any
other occurrence, event or condition, whether or not similar to any of the
foregoing; provided, however, that each Lender’s obligation to
make Revolving Loans pursuant to this Section 2.04(c) is
subject to the conditions set forth in Section 4.03.  No such funding of risk participations shall
relieve or otherwise impair the obligation of the Company to repay Swing Line
Loans, together with interest as provided herein.

 

(v)                                 In the event that the Swing Line Lender,
in the exercise of its discretion, requires that, as a condition to the making
of any Swing Line Loan, a Defaulting Lender, or the Borrowers, enter into
arrangements satisfactory to the Swing Line Lender for the provision of
sufficient Cash Collateral acceptable to the Swing Line Lender, to eliminate
the Swing Line Lender’s actual or potential Fronting Exposure with respect to
any such Lender, then the provisions of Section 2.16 shall apply.

 

(d)                                 Repayment of Participations.

 

(i)                                     At any time after any Lender has
purchased and funded a risk participation in a Swing Line Loan, if the Swing
Line Lender receives any payment on account of such Swing Line Loan, the Swing
Line Lender will distribute to such Lender its Applicable Percentage thereof in
the same funds as those received by the Swing Line Lender.

 

(ii)                                  If any payment received by the Swing Line
Lender in respect of principal or interest on any Swing Line Loan is required
to be returned by the Swing Line Lender under any of the circumstances
described in Section 10.05 (including pursuant to any settlement
entered into by the Swing Line Lender in its discretion), each Lender shall pay
to the Swing Line Lender its Applicable Percentage thereof on demand of the 

 

49

 

Administrative Agent, plus interest thereon from the date of such
demand to the date such amount is returned, at a rate per annum equal to the
applicable Overnight Rate.  The
Administrative Agent will make such demand upon the request of the Swing Line
Lender.  The obligations of the Lenders
under this clause shall survive the payment in full of the Obligations and the
termination of this Agreement.

 

(e)                                  Interest for Account of Swing Line Lender. 
The Swing Line Lender shall be responsible for invoicing the Company for
interest on the Swing Line Loans.  Until
each Lender funds its Base Rate Revolving Loan or risk participation pursuant
to this Section 2.04 to refinance such Lender’s Applicable
Percentage of any Swing Line Loan, interest in respect of such Applicable
Percentage shall be solely for the account of the Swing Line Lender.

 

(f)                                    Payments Directly to Swing Line Lender. 
The Company shall make all payments of principal and interest in respect
of the Swing Line Loans directly to the Swing Line Lender.

 

2.05                        Prepayments.  (a) Each
Borrower may, upon notice from the Company to the Administrative Agent, at any
time or from time to time voluntarily prepay Revolving Loans in whole or in
part without premium or penalty, and without reduction of the Aggregate
Commitments; provided that (i) such notice must be received by the
Administrative Agent not later than 11:00 a.m. (A) three Business
Days prior to any date of prepayment of Eurocurrency Rate Loans denominated in
Dollars, (B) four Business Days (or five, in the case of prepayment of
Loans denominated in Special Notice Currencies) prior to any date of prepayment
of Eurocurrency Rate Loans denominated in Alternative Currencies, and (C) on
the date of prepayment of Base Rate Revolving Loans; (ii) any prepayment
of Eurocurrency Rate Loans denominated in Dollars shall be in a principal
amount of $2,000,000 or a whole multiple of $500,000 in excess thereof; (iii) any
prepayment of Eurocurrency Rate Loans denominated in Alternative Currencies
shall be in a minimum principal amount of $2,000,000 or a whole multiple of
$500,000 in excess thereof; and (iv) any prepayment of Base Rate Revolving
Loans shall be in a principal amount of $500,000 or a whole multiple of
$100,000 in excess thereof or, in each case, if less, the entire principal
amount thereof then outstanding.  Each
such notice shall specify the date and amount of such prepayment and the Type(s) of
Revolving Loans to be prepaid and, if Eurocurrency Rate Loans are to be
prepaid, the Interest Period(s) of such Revolving Loans.  The Administrative Agent will promptly notify
each Lender of its receipt of each such notice, and of the amount of such
Lender’s Applicable Percentage of such prepayment.  If such notice is given by the Company, the
applicable Borrower shall make such prepayment and the payment amount specified
in such notice shall be due and payable on the date specified therein.  Any prepayment of a Eurocurrency Rate Loan
shall be accompanied by all accrued interest on the amount prepaid, together
with any additional amounts required pursuant to Section 3.05.  Subject to Section 2.17, each
such prepayment shall be applied to the Revolving Loans of the Lenders in
accordance with their respective Applicable Percentages.

 

(b)                                 The Company may, upon notice to the Swing
Line Lender (with a copy to the Administrative Agent), at any time or from time
to time, voluntarily prepay Swing Line Loans in whole or in part without
premium or penalty, and without reduction of the Swing Line Sublimit; provided
that (i) such notice must be received by the Swing Line Lender and the
Administrative Agent not later than 1:00 p.m. on the date of the
prepayment, and (ii) any such prepayment shall be in a minimum principal
amount of $100,000 or, if the amount of Swing Line Loans 

 

50

 

outstanding on the date
of such prepayment (before giving effect to any such prepayment) is less than
$100,000, then such prepayment may be for the full amount of such Swing Line
Loans outstanding.  Each such notice
shall specify the date and amount of such prepayment.  If such notice is given by the Company, the
Company shall make such prepayment and the payment amount specified in such
notice shall be due and payable on the date specified therein.

 

(c)                                  If the Administrative Agent notifies the
Company at any time that the Total Outstandings at such time exceed an amount
equal to 100%  of the Aggregate Commitments then
in effect, and, within five (5) Business Days after receipt of such
notice, the Company and the applicable Designated Borrower shall prepay Loans
and/or the Company and the applicable Designated Borrower shall Cash
Collateralize the L/C Obligations in an aggregate amount sufficient to reduce
such Outstanding Amount as of such date of payment to an amount not to exceed
100% of the Aggregate Commitments then in effect, and without reduction of the
Aggregate Commitments or the Letter of Credit Sublimit; provided, however,
that, subject to the provisions of Section 2.03(g)(ii), no Borrower
shall be required to Cash Collateralize the L/C Obligations pursuant to this Section 2.05(c) unless
after the prepayment in full of the Loans the Total Outstandings exceed the
Aggregate Commitments then in effect. 
The Administrative Agent may, at any time and from time to time after
the initial deposit of such Cash Collateral, request that additional Cash
Collateral be provided in order to protect against the results of further
exchange rate fluctuations to the extent reasonably determined by the
Administrative Agent to be necessary.

 

(d)                                 The Administrative Agent shall notify the
Company at any time that the Outstanding Amount of all Loans and L/C
Obligations denominated in Alternative Currencies at such time exceeds an
amount equal to 105% of the Alternative Currency Sublimit then in effect, then,
within five (5) Business Days after receipt of such notice, the Borrowers shall
prepay Loans or Cash Collateralize the L/C Obligations in an aggregate amount
sufficient to reduce such Outstanding Amount as of such date of payment  to an amount not to exceed 100% of the Alternative Currency
Sublimit then in effect, but without reduction of the Alternative Currency
Sublimit.

 

2.06                        Termination or Reduction of
Commitments.  The Company may, upon notice to the
Administrative Agent, terminate the Aggregate Commitments, or from time to time
permanently reduce the Aggregate Commitments; provided that (i) any
such notice shall be received by the Administrative Agent not later than 11:00 a.m.
five (5) Business Days prior to the date of termination or reduction, (ii) any
such partial reduction shall be in an aggregate amount of $10,000,000 or any
whole multiple of $1,000,000 in excess thereof, (iii) the Company shall
not terminate or reduce the Aggregate Commitments if, after giving effect
thereto and to any concurrent prepayments hereunder, the Total Outstandings
would exceed the Aggregate Commitments as reduced, and (iv) if, after
giving effect to any reduction of the Aggregate Commitments, the Alternative
Currency Sublimit, the Letter of Credit Sublimit, the Designated Borrower
Sublimit or the Swing Line Sublimit exceeds the amount of the Aggregate
Commitments as reduced, such Sublimit shall be automatically reduced by the
amount of such excess.  The
Administrative Agent will promptly notify the Lenders of any such notice of
termination or reduction of the Aggregate Commitments.  The amount of any such Aggregate Commitment
reduction shall not be applied to the Alternative Currency Sublimit, the Letter
of Credit Sublimit, the Designated Borrower Sublimit or the Swing Line Sublimit
unless otherwise 

 

51

 

specified by the
Company.  Any reduction of the Aggregate
Commitments shall be applied to the Commitment of each Lender according to its
Applicable Percentage.  All fees accrued until
the effective date of any termination of the Aggregate Commitments shall be
paid on the effective date of such termination.

 

2.07                        Repayment of Loans.  (a) Each
Borrower shall repay to the Lenders on the Maturity Date the aggregate
principal amount of Revolving Loans made to such Borrower outstanding on such
date.

 

(b)                                 The Company shall repay each Swing Line
Loan on the earlier to occur of (i) demand by the Swing Line Lender and (ii) the
Maturity Date.

 

2.08                        Interest.  (a) Subject
to the provisions of subsection (b) below, (i) each
Eurocurrency Rate Loan shall bear interest on the outstanding principal amount
thereof for each Interest Period at a rate per annum equal to the Eurocurrency
Rate for such Interest Period plus the Applicable Rate plus (in
the case of a Eurocurrency Rate Loan of any Lender which is lent from a Lending
Office in the United Kingdom or a Participating Member State) the Mandatory
Cost; (ii) each Base Rate Revolving Loan shall bear interest on the
outstanding principal amount thereof from the applicable borrowing date at a
rate per annum equal to the Base Rate plus the Applicable Rate; and (iii) each
Swing Line Loan shall bear interest on the outstanding principal amount thereof
from the applicable borrowing date at a rate per annum equal to the Base Rate plus
the Applicable Rate.

 

(b)                                 (i)                                     If any amount
of principal of any Loan is not paid when due, whether at stated maturity, by
acceleration or otherwise, such amount shall thereafter bear interest at a
fluctuating interest rate per annum at all times equal to the Default Rate to
the fullest extent permitted by applicable Laws.

 

(ii)                                  If any amount (other than principal of
any Loan) payable by any Borrower under any Loan Document is not paid when due
(after the expiration of any applicable grace periods), whether at stated
maturity, by acceleration or otherwise, then upon the request of the Required
Lenders, such amount shall thereafter bear interest at a fluctuating interest
rate per annum at all times equal to the Default Rate to the fullest extent
permitted by applicable Laws.

 

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

 

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

 

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

 

52

 

(d)                                 For the purposes of the Interest Act
(Canada), (i) whenever a rate of interest or fee rate hereunder is
calculated on the basis of a year (the “deemed year”) that contains fewer days
than the actual number of days in the calendar year of calculation, such rate
of interest or fee rate shall be expressed as a yearly rate by multiplying such
rate of interest or fee rate by the actual number of days in the calendar year
of calculation and dividing it by the number of days in the deemed year, (ii) the
principle of deemed reinvestment of interest shall not apply to any interest
calculation hereunder and (iii) the rates of interest stipulated herein
are intended to be nominal rates and not effective rates or yields.

 

2.09                        Fees.  In addition to certain fees described in subsections
(i) and (j) of Section 2.03:

 

(a)                                  Commitment Fee. 
The Company shall pay to the Administrative Agent for the account of
each Lender in accordance with its Applicable Percentage, a commitment fee in
Dollars equal to the Applicable Rate times the actual daily amount by
which the Aggregate Commitments exceed the sum of (i) the Outstanding
Amount of Revolving Loans and (ii) the Outstanding Amount of L/C
Obligations, subject to adjustment as provided in Section 2.17.  The commitment fee shall accrue at all times
during the Commitment Fee Period, including at any time during which one or
more of the conditions in Article IV is not met, and shall be due
and payable quarterly in arrears on the first Business Day after the end of
each March, June, September and December, commencing with the first such
date to occur after the Signing Date, and on the last day of the Availability
Period.  The commitment fee shall be
calculated quarterly in arrears, and if there is any change in the Applicable
Rate during any quarter, the actual daily amount shall be computed and
multiplied by the Applicable Rate separately for each period during such
quarter that such Applicable Rate was in effect.

 

(b)                                 Other Fees.  The Company
shall pay to the Arrangers and the Administrative Agent for their own
respective accounts, in Dollars, fees in the amounts and at the times specified
in the Fee Letters.  Such fees shall be
fully earned when paid and shall not be refundable for any reason whatsoever
absent an error in calculation by the Administrative or the Lenders.

 

2.10                        Computation of Interest and Fees;
Retroactive Adjustments of Applicable Rate.  (a) All
computations of interest for Base Rate Loans (including when the Base Rate is
determined by reference to the Eurocurrency Rate) shall be made on the basis of
a year of 365 or 366 days, as the case may be, and actual days elapsed.  All other computations of fees and interest shall
be made on the basis of a 360-day year and actual days elapsed (which results
in more fees or interest, as applicable, being paid than if computed on the
basis of a 365-day year), or, in the case of interest in respect of Revolving
Loans denominated in Alternative Currencies as to which market practice differs
from the foregoing, in accordance with such market practice.  Interest shall accrue on each Loan for the
day on which the Loan is made, and shall not accrue on a Loan, or any portion
thereof, for the day on which the Loan or such portion is paid, provided
that any Loan that is repaid on the same day on which it is made shall, subject
to Section 2.12(a), bear interest for one day.  Each determination by the Administrative
Agent of an interest rate or fee hereunder shall be conclusive and binding for
all purposes, absent manifest error.

 

(b)                                 If, as a result
of any restatement of or other adjustment to the financial statements of the
Company or for any other reason, the Company or the Lenders determine that (i)(A) the

 

53

 

Consolidated Leverage Ratio
as calculated by the Company as of any applicable date was inaccurate and (B) a
proper calculation of the Consolidated Leverage Ratio would have resulted in
higher pricing for such period, each Borrower shall immediately and
retroactively be obligated to pay to the Administrative Agent for the account
of the applicable Lenders, the applicable L/C Issuer or the applicable Existing L/C Issuer, as the case
may be, promptly on demand by the Administrative Agent (or, after the
occurrence of an actual or deemed entry of an order for relief with respect to
any Borrower under the Bankruptcy Code of the United States, automatically and
without further action by the Administrative Agent, any Lender, any L/C Issuer
or any Existing L/C
Issuer), an amount equal to the excess of the amount of interest and fees
that should have been paid for such period over the amount of interest and fees
actually paid for such period; and (ii)(A) the Consolidated Leverage Ratio
as calculated by the Company as of any applicable date was inaccurate and (B) a
proper calculation of the Consolidated Leverage Ratio would have resulted in
lower pricing for such period, the Applicable Rate shall be adjusted as of the
date of receipt by the Administrative Agent of a Compliance Certificate
reflecting such proper calculation.  This
paragraph shall not limit the rights of the Administrative Agent, any Lender,
any L/C Issuer or any Existing
L/C Issuer, as the case may be, under Section 2.03(c)(iii), 2.03(i) or
2.08(b) or  under Article VIII.  The Borrowers’ obligations under this
paragraph shall survive the termination of the Aggregate Commitments and the
repayment of all other Obligations hereunder.

 

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

 

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

 

2.12                        Payments Generally;
Administrative Agent’s Clawback.  (a) General.  All payments to be made by the Borrowers
shall be made without condition or deduction for any counterclaim, defense,
recoupment or setoff.  Except as
otherwise expressly provided herein and 

 

54

 

except with respect to
principal of and interest on Loans denominated in an Alternative Currency, all
payments by the Borrowers hereunder shall be made to the Administrative Agent,
for the account of the respective Lenders to which such payment is owed, at the
applicable Administrative Agent’s Office in Dollars and in Same Day Funds not
later than 2:00 p.m. on the date specified herein.  Except as otherwise expressly provided
herein, all payments by the Borrowers hereunder with respect to principal and
interest on Loans denominated in an Alternative Currency shall be made to the Administrative
Agent, for the account of the respective Lenders to which such payment is owed,
at the applicable Administrative Agent’s Office in such Alternative Currency
and in Same Day Funds not later than the Applicable Time specified by the
Administrative Agent on the dates specified herein. Without limiting the
generality of the foregoing, the Administrative Agent may require that any
payments due under this Agreement be made in the United States.  If, for any reason, any Borrower is
prohibited by any Law from making any required payment hereunder in an
Alternative Currency, such Borrower shall make such payment in Dollars in the
Dollar Equivalent of the Alternative Currency payment amount.  The Administrative Agent will promptly
distribute to each Lender its Applicable Percentage (or other applicable share
as provided herein) of such payment in like funds as received by wire transfer
to such Lender’s Lending Office.  All
payments received by the Administrative Agent (i) after 2:00 p.m., in
the case of payments in Dollars, or (ii) after the Applicable Time
specified by the Administrative Agent in the case of payments in an Alternative
Currency, shall in each case be deemed received on the next succeeding Business
Day and any applicable interest or fee shall continue to accrue.  If any payment to be made by any Borrower
shall come due on a day other than a Business Day, payment shall be made on the
next following Business Day, and such extension of time shall be reflected in
computing interest or fees, as the case may be.

 

(b)                                 (i)                                     Funding by Lenders; Presumption by Administrative
Agent.  Unless the Administrative Agent shall have
received notice from a Lender prior to the proposed date of any Revolving
Borrowing of Eurocurrency Rate Loans (or, in the case of any Revolving
Borrowing of Base Rate Loans, prior to 12:00 noon on the date of such Revolving
Borrowing) that such Lender will not make available to the Administrative Agent
such Lender’s share of such Revolving Borrowing, the Administrative Agent may
assume that such Lender has made such share available on such date in
accordance with Section 2.02 (or, in the case of a Revolving
Borrowing of Base Rate Loans, that such Lender has made such share available in
accordance with and at the time required by Section 2.02) and may,
in reliance upon such assumption, make available to the applicable Borrower a
corresponding amount.  In such event, if
a Lender has not in fact made its share of the applicable Revolving Borrowing
available to the Administrative Agent, then the applicable Lender and the
applicable Borrower severally agree to pay to the Administrative Agent
forthwith on demand such corresponding amount in Same Day Funds with interest
thereon, for each day from and including the date such amount is made available
to such Borrower to but excluding the date of payment to the Administrative
Agent, at (A) in the case of a payment to be made by such Lender, the
Overnight Rate, plus any administrative, processing or similar fees customarily
charged by the Administrative Agent in connection with the foregoing, and (B) in
the case of a payment to be made by such Borrower, the interest rate applicable
to such Revolving Borrowing.  If such
Borrower and such Lender shall pay such interest to the Administrative Agent for
the same or an overlapping period, the Administrative Agent shall promptly
remit to such Borrower the amount of such interest paid by such Borrower for
such period.  If such Lender pays its
share of the applicable Revolving Borrowing to the 

 

55

 

Administrative Agent,
then the amount so paid shall constitute such Lender’s Revolving Loan included
in such Revolving Borrowing.  Any payment
by such Borrower shall be without prejudice to any claim such Borrower may have
against a Lender that shall have failed to make such payment to the
Administrative Agent.

 

(ii)                                  Payments by Borrowers; Presumptions by
Administrative Agent.  Unless the Administrative Agent shall have
received notice from a Borrower prior to the date on which any payment is due
to the Administrative Agent for the account of the Lenders, any L/C Issuer or
any Existing L/C Issuer hereunder that such Borrower will not make such
payment, the Administrative Agent may assume that such Borrower has made such
payment on such date in accordance herewith and may, in reliance upon such
assumption, distribute to the Lenders, such L/C Issuer or such Existing L/C
Issuer, as the case may be, the amount due. 
In such event, if such Borrower has not in fact made such payment, then
each of the Lenders, the applicable L/C Issuer or the applicable Existing L/C
Issuer, as the case may be, severally agrees to repay to the Administrative
Agent forthwith on demand the amount so distributed to such Lender, such L/C
Issuer or such Existing L/C Issuer, as applicable, in Same Day Funds with
interest thereon, for each day from and including the date such amount is
distributed to it to but excluding the date of payment to the Administrative
Agent, at the Overnight Rate.

 

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

 

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

 

(d)                                 Obligations of Lenders Several. 
The obligations of the Lenders hereunder to make Revolving Loans, to
fund participations in Letters of Credit and Swing Line Loans and to make
payments pursuant to Section 10.04(c) are several and not
joint.  The failure of any Lender to make
any Revolving Loan, to fund any such participation or to make any payment under
Section 10.04(c) on any date required hereunder shall not
relieve any other Lender of its corresponding obligation to do so on such date,
and no Lender shall be responsible for the failure of any other Lender to so
make its Revolving Loan, to purchase its participation or to make its payment
under Section 10.04(c).

 

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

 

2.13                        Sharing of Payments by
Lenders.  If any Lender shall, by exercising any right of setoff
or counterclaim or otherwise, obtain payment in respect of any principal of or
interest on any of the Revolving Loans made by it, or the participations in L/C
Obligations or in Swing 

 

56

 

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

 

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

 

(ii)                                  the provisions of this Section shall
not be construed to apply to (x) any payment made by or on behalf of a
Borrower pursuant to and in accordance with the express terms of this Agreement
(including the application of funds arising from the existence of a Defaulting
Lender), (y) the application of Cash Collateral (and proceeds thereof) in
respect of obligations relating to Letters of Credit and Swing Line Loans
(including related Lender participation obligations) provided for in Section 2.16,
or (z) any payment obtained by a Lender as consideration for the
assignment of or sale of a participation in any of its Revolving Loans or
subparticipations in L/C Obligations or Swing Line Loans to any assignee or participant,
other than to a Borrower or any Subsidiary thereof (as to which the provisions
of this Section shall apply).

 

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

 

2.14                        Designated Borrowers.

 

(a)                                  Effective as of the Initial Funding Date,
each of Watson Wyatt and Towers Perrin shall be a “Designated Borrower”
hereunder and may receive Loans for its account on the terms and conditions set
forth in this Agreement.

 

(b)                                 The Company may at any time, upon not
less than 15 Business Days’ notice from the Company to the Administrative Agent
(or such shorter period as may be agreed by the Administrative Agent in its
sole discretion), designate any wholly-owned Subsidiary of the Company (an “Applicant
Borrower”) as a Designated Borrower to receive Loans hereunder by
delivering to the Administrative Agent (which shall promptly deliver
counterparts thereof to each Lender) a duly executed notice and agreement in
substantially the form of Exhibit H (a “Designated Borrower
Request and Assumption Agreement”); provided, however, that
the Company may not have more than five (5) Designated Borrowers at any
time; and provided  further that no Subsidiary organized under the
Laws of Canada may become a Designated 

 

57

 

Borrower.  The parties hereto acknowledge and agree that
prior to any Applicant Borrower becoming entitled to utilize the credit
facilities provided for herein the Administrative Agent and the Lenders shall
have received, with respect to each designation of a wholly-owned Subsidiary as
a Designated Borrower, such supporting resolutions, incumbency certificates,
opinions of counsel and other documents or information, in form, content and
scope reasonably satisfactory to the Administrative Agent, as may be required
by the Administrative Agent or the Required Lenders in their reasonable
discretion and consistent with the requirement of Article IV, and
Notes signed by such new Borrowers to the extent any Lenders so require.  If the Administrative Agent and each Lender
approve in writing (such approval not to be unreasonably withheld, conditioned
or delayed) that an Applicant Borrower shall be entitled to receive Loans
hereunder, then promptly following receipt of all such requested resolutions,
incumbency certificates, opinions of counsel and other documents or
information, the Administrative Agent shall send a notice in substantially the
form of Exhibit I (a “Designated Borrower Notice”) to the
Company and the Lenders specifying the effective date upon which the Applicant
Borrower shall constitute a Designated Borrower for purposes hereof, whereupon
each of the Lenders agrees to permit such Designated Borrower to receive Loans
hereunder, on the terms and conditions set forth herein, and each of the
parties agrees that such Designated Borrower otherwise shall be a Borrower for
all purposes of this Agreement.

 

(c)                                  The Obligations of the Company and each
Designated Borrower that is a Domestic Subsidiary shall be joint and several in
nature; therefore, the Company and each Designated Borrower that is Domestic
Subsidiary shall be jointly and severally liable for all of the Obligations,
including in respect of all Loans to Designated Borrowers that are Foreign
Subsidiaries.  The
Obligations of all Designated Borrowers that are Foreign Subsidiaries shall be
several in nature, and in no event shall any such Designated Borrower that is a
Foreign Subsidiary be jointly and severally liable for the Obligations of the
Company or any Designated Borrower that is a Domestic Subsidiary.

 

(d)                                 Each Subsidiary of the Company that is or  becomes a “Designated Borrower” pursuant to this Section 2.14
hereby irrevocably appoints the Company as its agent for all purposes relevant
to this Agreement and each of the other Loan Documents, including in (i) the
giving and receipt of notices, (ii) the execution and delivery of all
documents, instruments and certificates contemplated herein and all
modifications hereto, and (iii) the receipt of the proceeds of any Loans
made by the Lenders, to any such Designated Borrower hereunder.  Any acknowledgment, consent, direction,
certification or other action which might otherwise be valid or effective only
if given or taken by all Borrowers, or by each Borrower acting singly, shall be
valid and effective if given or taken only by the Company, whether or not any
such other Borrower joins therein.  Any
notice, demand, consent, acknowledgement, direction, certification or other
communication delivered to the Company in accordance with the terms of this
Agreement shall be deemed to have been delivered to each Designated Borrower.

 

58

 

(e)           The Company may from time to time, upon not less than
15 Business Days’ notice from the Company to the Administrative Agent (or such
shorter period as may be agreed by the Administrative Agent in its sole
discretion), terminate a Designated Borrower’s status as such, provided
that there are no outstanding Loans payable by such Designated Borrower, or
other amounts payable by such Designated Borrower on account of any Loans made
to it, as of the effective date of such termination. The Administrative Agent
will promptly notify the Lenders of any such termination of a Designated
Borrower’s status.

 

2.15        Increase
in Commitments.

 

(a)           Request for
Increase.  Provided
there exists no Default, upon notice to the Administrative Agent (which shall
promptly notify the Lenders), the Company may from time to time, request an
increase in the Aggregate Commitments by an amount (for all such requests) not
exceeding $150,000,000; provided that (i) any such request for an
increase shall be in a minimum amount of $25,000,000, and (ii) the Company may
make a maximum of five such requests.  At
the time of sending such notice, the Company (in consultation with the
Administrative Agent) shall specify the time period within which each Lender is
requested to respond (which shall in no event be less than ten Business Days
from the date of delivery of such notice to the Lenders).

 

(b)          Lender
Elections to Increase.  Each
Lender shall notify the Administrative Agent within such time period whether or
not it agrees to increase its Commitment and, if so, whether by an amount equal
to, greater than, or less than its Applicable Percentage of such requested
increase.  Any Lender not responding
within such time period shall be deemed to have declined to increase its
Commitment.

 

(c)           Notification by
Administrative Agent; Additional Lenders.  The Administrative Agent shall notify the
Company and each Lender of the Lenders’ responses to each request made
hereunder.  To achieve the full amount of
a requested increase and subject to the approval of the Administrative Agent,
the L/C Issuers and the Swing Line Lender (which approvals shall not be
unreasonably withheld, conditioned or delayed), the Company may also invite
additional Eligible Assignees to become Lenders pursuant to a joinder agreement
in form and substance reasonably satisfactory to the Administrative Agent and
its counsel.

 

(d)          Increase
Effective Date and Allocations.  If the Aggregate Commitments are increased in
accordance with this Section, the Administrative Agent and the Company shall
determine the effective date (the “Increase Effective Date”) and the
final allocation of such increase.  The
Administrative Agent shall promptly notify the Company and the Lenders of the
final allocation of such increase and the Increase Effective Date.  No such increase in the Aggregate Commitments
shall increase any of the Alternative Currency Sublimit, the Letter of Credit Sublimit, the
Designated Borrower Sublimit or the Swing Line Sublimit.

 

(e)           Conditions to
Effectiveness of Increase.  As a
condition precedent to such increase, the Company shall deliver to the
Administrative Agent a certificate of, on or behalf of, each Loan Party dated
as of the Increase Effective Date (in sufficient copies for each Lender) signed
by a Responsible Officer of such Loan Party (i) certifying and attaching the
resolutions adopted by such Loan Party approving or consenting to such
increase, and (ii) in the case of the Company, certifying that, before and
after giving effect to such increase, (A) the representations 

 

59

 

and
warranties contained in Article V and the other Loan Documents are true
and correct in all material respects (except, if a qualifier relating to
materiality, Material Adverse Effect or a similar concept applies, such
representation or warranty shall be required to be true and correct in all
respects) on and as of the Increase Effective Date, except to the extent that
such representations and warranties specifically refer to an earlier date, in
which case they are true and correct in all material respects (except, if a
qualifier relating to materiality, Material Adverse Effect or a similar concept
applies, such representation or warranty shall be required to be true and
correct in all respects) as of such earlier date, and except that for purposes
of this Section 2.15, the representations and warranties contained in Section
5.05(a) and (b) shall be deemed to refer to the most recent
statements furnished pursuant to clauses (a) and (b),
respectively, of Section 6.01, and (B) no Default exists.  The Borrowers shall prepay any Revolving
Loans outstanding on the Increase Effective Date (and pay any additional
amounts required pursuant to Section 3.05) to the extent necessary to
keep the outstanding Revolving Loans ratable with any revised Applicable
Percentages arising from any nonratable increase in the Commitments under this
Section.

 

(f)            Conflicting Provisions.  This Section shall supersede any provisions
in Section 2.13 or 10.01 to the contrary.

 

2.16        Cash
Collateral and Other Credit Support.

 

(a)           Certain Credit Support
Events; Grant of Security Interest.  Upon the request of the Administrative Agent, (i) if
an L/C Issuer or an Existing L/C Issuer, as applicable, has honored any full or
partial drawing request under any Letter of Credit and such drawing has
resulted in an L/C Borrowing, or (ii) if, as of the Letter of Credit Expiration
Date, any L/C Obligation for any reason remains outstanding, the Borrower
shall, in each case, promptly Cash Collateralize the then Outstanding Amount of
all L/C Obligations.  In addition, (v) if
the Administrative Agent notifies the Company at any time that the Outstanding
Amount of all L/C Obligations at such time exceeds 105% of the Letter of Credit
Sublimit then in effect, then, within five (5) Business Days after receipt of
such notice, the Company shall Cash Collateralize the L/C Obligations in an
amount equal to the amount by which the Outstanding Amount of all L/C
Obligations exceeds the Letter of Credit Sublimit, (w) the Administrative Agent
may, at any time and from time to time after the initial deposit of Cash
Collateral, request that additional Cash Collateral be provided in order to
protect against the results of exchange rate fluctuations as reasonably
determined by the Administrative Agent, (x) Sections 2.05(c), 2.05(d)
and  8.02(c) set forth certain additional requirements to deliver
Cash Collateral hereunder, (y) Section 2.03(a)(iii)(G) contemplates the
delivery of Cash Collateral in certain circumstances to support the issuance of
Letters of Credit, and (z) Section 2.04 contemplates the delivery of
Cash Collateral in connection with the issuance of Swing Line Loans.  The Company, and to the extent provided by any Lender,
such Lender, hereby grants to the Administrative Agent, for the benefit of the
Administrative Agent, the L/C Issuers, the Existing L/C Issuers and the Lenders
(including the Swing Line Lender), a security interest in all such cash,
deposit accounts and all balances therein, and all other property provided as
collateral pursuant to Section 2.03, 2.04, 2.05(c), 2.05(d)
and 8.02(c), and all proceeds of the foregoing.  Cash Collateral shall be maintained in
blocked, interest bearing deposit accounts at Bank of America subject to the
control of the Administrative Agent.  For
the avoidance of doubt, to the extent that any other Person may have a claim,
by virtue of an intercreditor arrangement, tag-along right or any other term in
any other 

 

60

 

document or instrument, to share in any Cash
Collateral provided pursuant to any of the aforementioned sections of this
Agreement, an L/C Issuer, an Existing L/C Issuer, Swing Line Lender or
Administrative Agent, as applicable, may take such provisions into account in
determining whether Cash Collateral is satisfactory.

 

(b)           Application.  Notwithstanding anything to the
contrary contained in this Agreement, (i) Cash Collateral (and proceeds
thereof) provided by any Defaulting Lender pursuant to Sections 2.03 or 2.04
to support the obligations of such Lender in respect of Letters of Credit or
Swing Line Loans shall be held and applied, first, to fund the L/C
Advances of such Lender, such Lender’s funding of participations in Swing Line
Loans, or such Lender’s Applicable Percentage of Base Rate Revolving Loans used
to repay L/C Borrowings, L/C Advances or Swing Line Loans with respect to which
such Cash Collateral was provided, as applicable, and, second, to fund
any interest accrued for the benefit of the applicable L/C Issuer, applicable
Existing L/C Issuer or Swing Line Lender pursuant to Sections 2.03(c)(vi)
and 2.04(c)(iii) allocable to such Lender, and (ii) Cash Collateral (and
proceeds thereof) otherwise provided by or on behalf of any Borrower under Sections 2.03, 2.04, 2.05(c),
2.05(d)  or 8.02(c) to support
L/C Obligations or Swing Line Loans shall be held and applied, first, to
the satisfaction of the specific L/C Obligations, Swing Line Loans or
obligations to fund participations therein of the applicable Defaulting Lender
for which the Cash Collateral was so provided and, second, if remedies
under Section 8.02 shall have been exercised, to the application of such
collateral or other credit support (or proceeds thereof) to any other
Obligations in accordance with Section 8.03.

 

(c)           Release.  Cash
Collateral provided under Section 2.03 or 2.04 in connection with
any Lender’s status as a Defaulting Lender shall be released (except as the
applicable L/C Issuer, applicable Existing L/C Issuer or Swing Line Lender and the
Person providing such Cash Collateral may agree otherwise (as applicable))
promptly following the earlier to occur of (A) the termination of such Lender’s
status as a Defaulting Lender or (B) following the applicable L/C Issuer’s,
Existing L/C Issuer’s or Swing Line Lender’s (as applicable) good faith
determination that there remain outstanding no L/C Obligations or Swing Line
Loans, as applicable, as to which it has actual or potential Fronting Exposure
in relation to such Lender as to which it desires to maintain Cash Collateral;
subject, however, to the additional condition that, as to any such Cash
Collateral provided by or on behalf of a Borrower, no Default or Event of
Default shall then have occurred and be continuing.

 

2.17        Defaulting Lenders.  Notwithstanding
anything to the contrary contained in this Agreement to the contrary, if any Lender becomes a
Defaulting Lender, then, until such time as such Lender is no longer a
Defaulting Lender, to the extent permitted by applicable Law:

 

(a)           Waivers and Amendments.  Such
Defaulting Lender’s right to approve or disapprove any amendment, waiver or
consent with respect to this Agreement shall be restricted as set forth in Section
10.01.

 

(b)           Reallocation of Loan Payments.  (i)
Any payment or prepayment of any portion of the principal amount of Loans of
such Lender (whether voluntary or mandatory, at maturity, pursuant to Article
VIII or otherwise) shall be applied, first, to the Loans of other
Lenders as if such Defaulting Lender had no Loans outstanding, until such time
as the Outstanding Amount of 

 

61

 

Revolving Loans of each Lender shall equal its pro
rata share thereof based on its Applicable Percentage (without giving effect to
Section 2.17(d)), ratably to the Lenders in accordance with their
Applicable Percentages of Loans being repaid or prepaid; second, to the then outstanding amounts (including interest
thereon) owed under the terms hereof by such Defaulting Lender to the
Administrative Agent or (to the extent the Administrative Agent has received
notice thereof) to any other Lender, ratably to the Persons entitled thereto,
and third, to the posting of Cash Collateral in respect of its
Applicable Percentage (without giving effect to the last sentence in the
definition thereof) of L/C Obligations and Swing Line Loans, ratably to an L/C
Issuer, an Existing L/C Issuer and Swing Line Lender in accordance with their
respective applicable Fronting Exposures, and (ii) any other amounts thereafter
received by the Administrative Agent for the account of such Defaulting Lender
(including amounts made available to the Administrative Agent by such
Defaulting Lender pursuant to Section 10.08) shall be applied, first,
to the liabilities above referred to in item second  of
clause (i) above, and second, to the matters above referred to in
item third  of clause (i) above.  Any payments, prepayments or other amounts
paid or payable to a Defaulting Lender that are reallocated to pay outstanding
amounts owed by a Defaulting Lender or to post Cash Collateral pursuant to this
Section 2.17(b)) shall be deemed paid to such Defaulting Lender, and
each Lender hereby irrevocably consents thereto.

 

(c)           Certain Fees. Such Defaulting Lender (i) shall not be entitled to
receive any commitment fee pursuant to Section 2.09(a) for any period
during which such Lender is a Defaulting Lender (and the Borrowers shall not be
required to pay any such fee that otherwise would have been required to have
been paid to such Defaulting Lender) and (ii) shall be limited in
its right to receive Letter of Credit Fees as provided in Section 2.03(h).

 

(d)           Reallocation of Applicable Percentages to Reduce
Fronting Exposure.
During any period in which there is a Defaulting Lender as to which an L/C
Issuer, an Existing L/C Issuer or Swing Line Lender (as applicable) has not
received Cash Collateral acceptable to it in respect of the related
participation and funding obligations of such Defaulting Lender, then upon the
request of an L/C Issuer, an Existing L/C Issuer or Swing Line Lender (as
applicable) to the Administrative Agent, for purposes of computing the amount
of the obligation of each non-Defaulting Lender to acquire, refinance or fund
participations in Letters of Credit or Swing Line Loans pursuant to Sections
2.03 and 2.04, the “Applicable Percentage” of each non-Defaulting
Lender shall be computed without giving effect to the Commitment of such
Defaulting Lender; provided, that, (i) in all cases, the obligation of
each non-Defaulting Lender to acquire, refinance or fund participations in
Letters of Credit or Swing Line Loans shall not exceed the positive difference,
if any, between (1) the Commitment of such non-Defaulting Lender and (2) the
aggregate Outstanding Amount of the Revolving Loans of such Lender, plus
such Lender’s Applicable Percentage of the Outstanding Amount of all other L/C
Obligations (prior to giving effect to such reallocation), plus such
Lender’s Applicable Percentage of the Outstanding Amount of all other Swing
Line Loans (prior to giving effect to such reallocation), and (ii) each such
reallocation shall be given effect only if, at the initial date of such
reallocation, no Default or Event of Default shall have occurred or be
continuing.

 

A
Lender that has become a Defaulting Lender because of an event referenced in
the definition of Defaulting Lender may cure such status and shall no longer
constitute a Defaulting Lender as a result of such event when (i) such
Defaulting Lender shall have fully funded or paid, as applicable, all Loans,
participations in respect of Letters of Credit or Swing Line Loans or 

 

62

 

other amounts required to be
funded or paid by it hereunder as to which it is delinquent (together, in each
case, with such interest thereon as shall be required to any Person as
otherwise provided in this Agreement), (ii) the Administrative Agent shall have
received a certification by such Defaulting Lender of its ability and intent to
comply with the provisions of this Agreement going forward, and (iii) each of (x)
the Administrative Agent, (y) the L/C Issuers, the Existing L/C Issuers, the Swing Line Lender and
any other Lender as to which a delinquent obligation was owed, and (z) in the
case of the failure to fund any Loan, the Company, shall have determined (and
notified the Administrative Agent) that they are satisfied, in their sole
discretion, that such Defaulting Lender intends to continue to perform its
obligations as a Lender hereunder and has all approvals required to enable it,
to continue to perform its obligations as a Lender hereunder.  No reference in this subsection to an event
being “cured” shall by itself preclude any claim by any Person against any
Lender that becomes a Defaulting Lender for such direct damages as may
otherwise be available to such Person arising from any failure to fund or pay
any amount when due hereunder or from any other event that gave rise to such
Lender’s status as a Defaulting Lender.

 

ARTICLE
III.

TAXES, YIELD PROTECTION AND ILLEGALITY

 

3.01        Taxes.

 

(a)           Payments Free of Taxes; Obligation to Withhold;
Payments on Account of Taxes.

 

(i)            Any and all payments by or on account of
any obligation of the respective Borrowers hereunder or under any other Loan
Document shall to the extent permitted by applicable Laws be made free and
clear of and without reduction or withholding for any Taxes.  If, however, applicable Laws require any
Borrower or the Administrative Agent to withhold or deduct any Tax, such Tax
shall be withheld or deducted in accordance with such Laws as determined by
such Borrower or the Administrative Agent, as the case may be, upon the basis
of the relevant information and documentation that is delivered to the Company
or the Administrative Agent pursuant to subsection (e) below.

 

(ii)           If any Borrower or the Administrative
Agent shall be required by the Code to withhold or deduct any Taxes, including
both United States Federal backup withholding and withholding taxes, from any
payment, then (A) the Administrative Agent shall withhold or make such
deductions as are determined by the Administrative Agent to be required based
upon the Code or other applicable Law and the information and documentation it
has received pursuant to subsection (e) below, (B) the Administrative
Agent shall timely pay the full amount withheld or deducted to the relevant
Governmental Authority in accordance with the Code and other applicable Law,
and (C) to the extent that the withholding or deduction is made on account of
Indemnified Taxes or Other Taxes, the sum payable by such Borrower shall be
increased as necessary so that after any required withholding or the making of
all required deductions (including deductions applicable to additional sums
payable under this Section 3.01) the Administrative Agent, Lender, the
applicable L/C Issuer or the applicable Existing L/C 

 

63

 

Issuer, as the case may be, receives an amount equal to the sum it
would have received had no such withholding or deduction been made.

 

(iii)          If
any Borrower or the Administrative Agent shall be required by any applicable
Laws other than the Code to withhold or deduct any Taxes from any payment, then
(A) such Borrower or the Administrative Agent, as required by such Laws, shall
withhold or make such deductions as are determined by it to be required based
upon applicable Law and the information and documentation it has received
pursuant to subsection (e) below, (B) such Borrower or the
Administrative Agent, to the extent required by such Laws, shall make such
deductions and (iii) such Borrower shall timely pay the full amount so withheld
or deducted by it to the relevant Governmental Authority in accordance with
such Laws, and (C) to the extent that the withholding or deduction is made on
account of Indemnified Taxes or Other Taxes, the sum payable by such Borrower
shall be increased as necessary so that after any required withholding or the
making of all required deductions (including deductions applicable to
additional sums payable under this Section 3.01) the Administrative
Agent, Lender, the applicable L/C Issuer or the applicable Existing L/C Issuer,
as the case may be, receives an amount equal to the sum it would have received
had no such withholding or deduction been made.

 

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

 

(c)           Tax Indemnifications.

 

(i)            Without limiting the provisions of subsection
(a) or (b) above, each Borrower shall, and does hereby, indemnify
the Administrative Agent, each Lender, each L/C Issuer and each Existing L/C
Issuer, and shall make payment in respect thereof within 10 days after demand
therefor, for the full amount of any Indemnified Taxes or Other Taxes
(including Indemnified Taxes or Other Taxes imposed or asserted on or
attributable to amounts payable under this Section 3.01) withheld or
deducted by such Borrower or the Administrative Agent or paid by the
Administrative Agent, such Lender, such L/C Issuer or such Existing L/C Issuer,
as the case may be, and any penalties, interest and reasonable expenses arising
therefrom or with respect thereto, whether or not such Indemnified Taxes or
Other Taxes were correctly or legally imposed or asserted by the relevant
Governmental Authority.  Each Borrower
shall also, and does hereby, indemnify the Administrative Agent, and shall make
payment in respect thereof within 10 days after demand therefor, for any amount
which a Lender, an L/C Issuer or an Existing L/C Issuer for any reason fails to
pay indefeasibly to the Administrative Agent as required by clause (ii) of
this subsection.  A certificate as to the
amount of any such payment or liability delivered to a Borrower by a Lender, an
L/C Issuer or an Existing L/C Issuer (with a copy to the Administrative Agent),
or by the Administrative Agent on its own behalf or on behalf of a Lender, an
L/C Issuer or an Existing L/C Issuer, shall be conclusive absent manifest
error.

 

(ii)           Without limiting the provisions of subsection
(a) or (b) above, each Lender, each L/C Issuer and each Existing L/C
Issuer shall, and does hereby, indemnify 

 

64

 

each Borrower and the Administrative Agent, and shall make payment in
respect thereof within 10 days after demand therefor, for the full amount of
any and all Taxes and any and all related losses, claims, liabilities,
penalties, interest and expenses (including the fees, charges and disbursements
of any counsel for the Borrower or the Administrative Agent) incurred by or
asserted against the Borrower or the Administrative Agent by any Governmental
Authority as a result of the failure by such Lender, such L/C Issuer or such
Existing L/C Issuer, as the case may be, to deliver, or as a result of the
inaccuracy, inadequacy or deficiency of, any documentation required to be
delivered by such Lender, such L/C Issuer or such Existing L/C Issuer, as the
case may be, to such Borrower or the Administrative Agent pursuant to subsection
(e).  Each Lender, each L/C Issuer
and each Existing L/C Issuer hereby authorizes the Administrative Agent to set
off and apply any and all amounts at any time owing to such Lender, such L/C
Issuer or such Existing L/C Issuer, as the case may be, under this Agreement or
any other Loan Document against any amount due to the Administrative Agent
under this clause (ii).  The
agreements in this clause (ii) shall survive the resignation and/or
replacement of the Administrative Agent, any assignment of rights by, or the
replacement of, a Lender, an L/C Issuer or an Existing L/C Issuer, the
termination of the Aggregate Commitments and the repayment, satisfaction or
discharge of all other Obligations.

 

(d)          Evidence of Payments.  Upon request
by a Borrower or the Administrative Agent, as the case may be, after any
payment of Taxes by such Borrower or by the Administrative Agent to a
Governmental Authority as provided in this Section 3.01, such Borrower
shall deliver to the Administrative Agent or the Administrative Agent shall
deliver to such Borrower, as the case may be, the original or a certified copy
of a receipt issued by such Governmental Authority evidencing such payment, a
copy of any return required by Laws to report such payment or other evidence of
such payment reasonably satisfactory to such Borrower or the Administrative
Agent, as the case may be.

 

(e)           Status of Lenders; Tax Documentation.

 

(i)            Each Lender, each L/C Issuer and each
Existing L/C Issuer shall deliver to the Company and to the Administrative
Agent, at the time or times prescribed by applicable Laws or when reasonably
requested by the Company or the Administrative Agent, such properly completed
and executed documentation prescribed by applicable Laws or by the taxing
authorities of any jurisdiction and such other reasonably requested information
as will permit the Company or the Administrative Agent, as the case may be, to
determine (A) whether or not payments made by the respective Borrowers
hereunder or under any other Loan Document are subject to Taxes, (B) if
applicable, the required rate of withholding or deduction, and (C) such Lender’s,
such L/C Issuer’s or such Existing L/C Issuer’s entitlement to any available
exemption from, or reduction of, applicable Taxes in respect of all payments to
be made to such Lender, such L/C Issuer or such Existing L/C Issuer by the
respective Borrowers pursuant to this Agreement or otherwise to establish such
Lender’s, such L/C Issuer’s or such Existing L/C Issuer’s status for
withholding tax purposes in the applicable jurisdictions.

 

(ii)           Without limiting the generality of the
foregoing, if a Borrower is resident for tax purposes in the United States,

 

65

 

(A)          any Lender, any L/C Issuer or any
Existing L/C Issuer that is a “United States person” within the meaning of Section
7701(a)(30) of the Code shall deliver to the Company and the Administrative
Agent executed originals of Internal Revenue Service Form W-9 or such other
documentation or information prescribed by applicable Laws or reasonably
requested by the Company or the Administrative Agent as will enable such
Borrower or the Administrative Agent, as the case may be, to determine whether
or not such Lender, such L/C Issuer or such Existing L/C Issuer is subject to
backup withholding or information reporting requirements; and

 

(B)           Each Foreign Lender, and each L/C Issuer
and Existing L/C Issuer that is a Foreign Lender, that is entitled under the
Code or any applicable treaty to an exemption from or reduction of withholding
tax with respect to payments hereunder or under any other Loan Document shall
deliver to the Company and the Administrative Agent (in such number of copies
as shall be requested by the recipient) on or prior to the date on which such
Foreign Lender, such L/C Issuer or such Existing L/C Issuer becomes a Lender
under this Agreement (and from time to time thereafter upon the request of the
Company on behalf of such Borrower or the Administrative Agent, but only if
such Foreign Lender, such L/C Issuer or such Existing L/C Issuer is legally
entitled to do so), whichever of the following is applicable:

 

(I)           duly completed and executed originals of Internal
Revenue Service Form W-8BEN, or any successor form thereto, claiming
eligibility for benefits of an income tax treaty to which the United States is
a party;

 

(II)           duly completed and executed originals of
Internal Revenue Service Form W-8ECI, or any successor form thereto;

 

(III)         executed
originals of Internal Revenue Service Form W-8IMY and all required supporting
documentation;

 

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

 

(V)           duly completed and executed originals of
any other form prescribed by applicable Laws as a basis for claiming exemption
from or a reduction in United States Federal withholding tax together with such
supplementary documentation as may be prescribed by applicable Laws to 

 

66

 

permit
such Borrower or the Administrative Agent to determine the withholding or
deduction required to be made.

 

(iii)          Each
Lender, each L/C Issuer and each Existing L/C Issuer shall promptly (A) notify
the Company and the Administrative Agent of any change in circumstances which
would modify or render invalid any claimed exemption or reduction, and (B) take
such steps as shall not be materially disadvantageous to it, in the reasonable
judgment of such Lender, such L/C Issuer or such Existing L/C Issuer, and as
may be reasonably necessary (including the re-designation of its Lending
Office) to avoid any requirement of applicable Laws of any jurisdiction that
any Borrower or the Administrative Agent make any withholding or deduction for
Taxes from amounts payable to such Lender, such L/C Issuer or such Existing L/C
Issuer.

 

(iv)          Each of the Borrowers shall promptly
deliver to the Administrative Agent or any Lender, as the Administrative Agent
or such Lender shall reasonably request, on or prior to the Signing Date (or
such later date on which it first becomes a Borrower), and in a timely fashion
thereafter, such documents and forms required by any relevant taxing
authorities under the Laws of any jurisdiction, duly executed and completed by
such Borrower, as are required to be furnished by such Lender or the
Administrative Agent under such Laws in connection with any payment by the
Administrative Agent or any Lender of Taxes or Other Taxes, or otherwise in
connection with the Loan Documents, with respect to such jurisdiction.

 

(f)           Treatment of Certain Refunds. 
Unless required by applicable Laws, at no time shall the Administrative
Agent have any obligation to file for or otherwise pursue on behalf of a
Lender, an L/C Issuer or an Existing L/C Issuer, or have any obligation to pay
to any Lender, any L/C Issuer or any Existing L/C Issuer, any refund of Taxes
withheld or deducted from funds paid for the account of such Lender, such L/C
Issuer or such Existing L/C Issuer, as the case may be.  If the Administrative Agent, any Lender, any
L/C Issuer or any Existing L/C Issuer determines, in its sole discretion, that
it has received a refund of any Taxes or Other Taxes as to which it has been
indemnified by any Borrower or with respect to which any Borrower has paid
additional amounts pursuant to this Section, it shall pay to such Borrower an
amount equal to such refund (but only to the extent of indemnity payments made,
or additional amounts paid, by such Borrower under this Section with respect to
the Taxes or Other Taxes giving rise to such refund), net of all out-of-pocket
expenses and net of any loss or gain realized in the conversion of such funds
from or to another currency incurred by the Administrative Agent, such Lender,
such L/C Issuer or such Existing L/C Issuer, as the case may be, and without
interest (other than any interest paid by the relevant Governmental Authority
with respect to such refund), provided that each Borrower, upon the
request of the Administrative Agent, such Lender, such L/C Issuer or such
Existing L/C Issuer, agrees to repay the amount paid over to such Borrower
(plus any penalties, interest or other charges imposed by the relevant
Governmental Authority) to the Administrative Agent, such Lender, such L/C
Issuer or such Existing L/C Issuer in the event the Administrative Agent, such
Lender, such L/C Issuer or such Existing L/C Issuer is required to repay such
refund to such Governmental Authority. 
This subsection shall not be construed to require the Administrative
Agent, any Lender, any L/C Issuer or any Existing L/C Issuer to make available
its tax returns (or any other information relating to its taxes that it deems
confidential) to any Borrower or any other Person.

 

67

 

3.02        Illegality.  If any Lender determines that any Law has
made it unlawful, or that any Governmental Authority has asserted that it is
unlawful, for any Lender or its applicable Lending Office to make, maintain or
fund Loans (whether denominated in Dollars or an Alternative Currency) whose
interest is determined by reference to the Eurocurrency Rate, or to determine
or charge interest rates based upon the Eurocurrency Rate, or any Governmental
Authority has imposed material restrictions on the authority of such Lender to
purchase or sell, or to take deposits of, Dollars or any Alternative Currency
in the applicable interbank market, then, on notice thereof by such Lender to
the Company through the Administrative Agent, (i) any obligation of such Lender
to make or continue Eurocurrency Rate Loans in the affected currency or
currencies or, in the case of Eurocurrency Rate Loans in Dollars, to convert
Base Rate Revolving Loans to Eurocurrency Rate Loans, shall be suspended and (ii)
if such notice asserts the illegality of such Lender making or maintaining Base
Rate Loans the interest rate on which is determined by reference to the
Eurocurrency Rate component of the Base Rate, the interest rate on which Base
Rate Loans of such Lender shall, if necessary to avoid such illegality, be
determined by the Administrative Agent without reference to the Eurocurrency
Rate component of the Base Rate, in each case until such Lender notifies the
Administrative Agent and the Company that the circumstances giving rise to such
determination no longer exist.  Upon
receipt of such notice, (x) each Borrower shall, following demand from such
Lender (with a copy to the Administrative Agent), prepay or, if applicable and
such Loans are denominated in Dollars, convert all such Eurocurrency Rate Loans
of such Lender to Base Rate Loans (the interest rate on which Base Rate Loans
of such Lender shall, if necessary to avoid such illegality, be determined by
the Administrative Agent without reference to the Eurocurrency Rate component
of the Base Rate), in each case, either on the last day of the Interest Period
therefor, if such Lender may lawfully continue to maintain such Eurocurrency
Rate Loans to such day, or immediately, if such Lender may not lawfully
continue to maintain such Eurocurrency Rate Loans and (y) if such notice
asserts the illegality of such Lender determining or charging interest rates
based upon the Eurocurrency Rate, the Administrative Agent, upon receipt of the
copy of the demand made by the Borrower to such Lender, shall during the period
of such suspension compute the Base Rate applicable to such Lender without
reference to the Eurocurrency Rate component thereof.  Upon any such prepayment or conversion, each
Borrower shall also pay accrued interest on the amount so prepaid or converted.

 

3.03        Inability to Determine Rates.  If, prior to the commencement of any
Interest Period for any Eurocurrency Rate Loan, the Required Lenders determine
that for any reason in connection with any request for a Eurocurrency Rate Loan
or a conversion to or continuation thereof that (a) deposits (whether in
Dollars or an Alternative Currency) are not being offered to banks in the
applicable offshore interbank market for such currency for the applicable
amount and Interest Period of such Eurocurrency Rate Loan, (b) adequate and
reasonable means do not exist for determining the Eurocurrency Rate for any
requested Interest Period with respect to a proposed Eurocurrency Rate Loan
(whether denominated in Dollars or an Alternative Currency) or in connection
with an existing or proposed Base Rate Loan, or (c) the Eurocurrency Rate for
any requested Interest Period with respect to a proposed Eurocurrency Rate Loan
does not adequately and fairly reflect the cost to such Lenders of funding such
Eurocurrency Rate Loan, the Administrative Agent will promptly so notify the
Company and each Lender.  Thereafter,
until the Administrative Agent shall notify the Borrowers and the Lenders that
the circumstances giving rise to such notice no longer exist, (x) the obligation
of the Lenders to make or maintain Eurocurrency Rate Loans in the affected
currency or currencies shall be suspended and (y) in the 

 

68

 

event of a determination
described in the preceding sentence with respect to the Eurocurrency Rate
component of the Base Rate, the utilization of the Eurocurrency Rate component
in determining the Base Rate shall be suspended, in each case until the
Administrative Agent (upon the instruction of the Required Lenders) revokes
such notice.  Upon receipt of such
notice, each Borrower may revoke any pending request for a Borrowing of,
conversion to or continuation of Eurocurrency Rate Loans in the affected
currency or currencies or, failing that, will be deemed to have converted such
request into a request for a Revolving Borrowing of Base Rate Loans in the
amount specified therein.

 

3.04        Increased Costs; Reserves on Eurocurrency Rate Loans.

 

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

 

(i)            impose, modify or deem applicable any
reserve, special deposit, compulsory loan, insurance charge or similar
requirement against assets of, deposits with or for the account of, or credit
extended or participated in by, any Lender (except (A) any reserve requirement contemplated
by Section 3.04(e) and (B) the requirements of the Bank of England and
the Financial Services Authority or the European Central Bank reflected in the
Mandatory Cost, other than as set forth below), any L/C Issuer or any Existing
L/C Issuer;

 

(ii)           subject any Lender, any L/C Issuer or any
Existing L/C Issuer to any tax of any kind whatsoever with respect to this
Agreement, any Letter of Credit, any participation in a Letter of Credit or any
Eurocurrency Rate Loan made by it, or change the basis of taxation of payments
to such Lender or such L/C Issuer in respect thereof (except for Indemnified
Taxes or Other Taxes covered by Section 3.01 and the imposition of, or
any change in the rate of, any Excluded Tax payable by such Lender, such L/C
Issuer or such Existing L/C Issuer);

 

(iii)          result
in the failure of the Mandatory Cost, as calculated hereunder, to represent the
cost to any Lender of complying with the requirements of the Bank of England
and/or the Financial Services Authority or the European Central Bank in
relation to its making, funding or maintaining Eurocurrency Rate Loans; or

 

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

 

and the result of any of the foregoing shall be to
increase the cost to such Lender of making or maintaining any Loan the interest
on which is determined by reference to the Eurocurrency Rate (or of maintaining
its obligation to make any such Loan), or to increase the cost to such Lender,
such L/C Issuer or such Existing L/C Issuer of participating in, issuing or
maintaining any Letter of Credit (or of maintaining its obligation to
participate in or to issue any Letter of Credit), or to reduce the amount of
any sum received or receivable by such Lender, such L/C Issuer or such Existing
L/C Issuer hereunder (whether of principal, interest or any other amount) then,
upon request of such Lender, such L/C Issuer or such Existing L/C Issuer, the
Company or the 

 

69

 

applicable Designated Borrower will pay to such
Lender, such L/C Issuer or such Existing L/C Issuer, as the case may be, such
additional amount or amounts as will compensate such Lender or such L/C Issuer,
as the case may be, for such additional costs incurred or reduction suffered.

 

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

 

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

 

(d)          Delay in Requests.  Failure or
delay on the part of any Lender, such L/C Issuer or such Existing L/C Issuer to
demand compensation pursuant to the foregoing provisions of this Section shall
not constitute a waiver of such Lender’s, such L/C Issuer’s or such Existing
L/C Issuer’s right to demand such compensation, provided that no Company
shall be required to compensate a Lender, an L/C Issuer or an Existing L/C
Issuer pursuant to the foregoing provisions of this Section for any increased
costs incurred or reductions suffered more than six (6) months prior to the
date that such Lender, such L/C Issuer or such Existing L/C Issuer, as the case
may be, notifies the Company of the Change in Law giving rise to such increased
costs or reductions and of such Lender’s, such L/C Issuer’s or such Existing
L/C Issuer’s intention to claim compensation therefor (except that, if the
Change in Law giving rise to such increased costs or reductions is retroactive,
then the six-month period referred to above shall be extended to include the
period of retroactive effect thereof).

 

(e)           Additional Reserve Requirements.  The Company or the applicable
Designated Borrower shall pay to each Lender, (i) as long as such Lender shall
be required to maintain reserves with respect to liabilities or assets
consisting of or including Eurocurrency funds or 

 

70

 

deposits (currently known
as “Eurocurrency liabilities”), additional interest on the unpaid principal
amount of each Eurocurrency Rate Loan equal to the actual costs of such
reserves allocated to such Loan by such Lender (as determined by such Lender in
good faith, which determination shall be conclusive, absent manifest error),
and (ii) as long as such Lender shall be required to comply with any reserve
ratio requirement or analogous requirement of any other central banking or
financial regulatory authority imposed in respect of the maintenance of the
Commitments or the funding of the Eurocurrency Rate Loans, such additional
costs (expressed as a percentage per annum and rounded upwards, if necessary,
to the nearest five decimal places) equal to the actual costs allocated to such
Commitment or Loan by such Lender (as determined by such Lender in good faith,
which determination shall be conclusive, absent manifest error, which in each
case shall be due and payable on each date on which interest is payable on such
Loan, provided the Company shall have received at least 10 days’ prior
notice (with a copy to the Administrative Agent) of such additional interest or
costs from such Lender.  If a Lender
fails to give notice 10 days prior to the relevant Interest Payment Date, such
additional interest or costs shall be due and payable 10 days from receipt of
such notice.

 

3.05        Compensation for Losses.  Within ten (10) days after receipt by a
Borrower of demand of any Lender (with a copy to the Administrative Agent) from
time to time, the Company or the applicable Designated Borrower shall promptly
compensate such Lender for and hold such Lender harmless from any loss, cost or
expense incurred by it as a result of:

 

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

 

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

 

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

 

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

 

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

 

For purposes of calculating amounts payable by the
Company (or the applicable Designated Borrower) to the Lenders under this Section
3.05, each Lender shall be deemed to have funded each Eurocurrency Rate
Loan made by it at the Eurocurrency Rate for such Loan by a matching deposit or
other borrowing in the offshore interbank market for such currency for a
comparable 

 

71

 

amount and for a comparable period, whether or not
such Eurocurrency Rate Loan was in fact so funded.

 

3.06        Mitigation Obligations; Replacement of Lenders.

 

(a)           Designation of a Different Lending Office. 
If any Lender requests compensation under Section 3.04, or any
Borrower is required to pay any additional amount to any Lender, any L/C
Issuer, any Existing L/C Issuer or any Governmental Authority for the account
of any Lender, any L/C Issuer or any Existing L/C Issuer pursuant to Section
3.01, or if any Lender gives a notice pursuant to Section 3.02, then
such Lender, such L/C Issuer or such Existing L/C Issuer shall, as applicable,
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 L/C Issuer or such Existing L/C Issuer, such designation or
assignment (i) would eliminate or reduce amounts payable pursuant to Section
3.01 or 3.04, as the case may be, in the future, or eliminate the
need for the notice pursuant to Section 3.02, as applicable, and (ii) in
each case, would not subject such Lender, such L/C Issuer or such Existing L/C
Issuer, as the case may be, to any unreimbursed cost or expense and would not
otherwise be disadvantageous to such Lender, such L/C Issuer or such Existing
L/C Issuer, as the case may be.  The
Company or each Designated Borrower hereby agrees to pay all reasonable costs
and expenses incurred by any Lender, any L/C Issuer or any Existing L/C Issuer
in connection with any such designation or assignment.

 

(b)          Replacement of Lenders.  If any Lender
requests compensation under Section 3.04, or if any Borrower is required
to pay any additional amount to any Lender or any Governmental Authority for
the account of any Lender pursuant to Section 3.01, the Company may
replace such Lender in accordance with Section 10.13.

 

3.07        Survival.  All of the Borrowers’ obligations under
this Article III shall survive termination of the Aggregate Commitments,
repayment of all other Obligations hereunder and resignation of the
Administrative Agent.

 

ARTICLE
IV.

CONDITIONS PRECEDENT TO EFFECTIVENESS AND CREDIT EXTENSIONS

 

4.01        Conditions to Effectiveness of this Agreement. 
The effectiveness of this Agreement is subject to satisfaction of the
following conditions precedent:

 

(a)           The Administrative Agent’s receipt of the following,
each of which shall be originals or telecopies (followed promptly by originals)
unless otherwise specified, each properly executed by a Responsible Officer of
the Company, each dated the Signing Date (or, in the case of certificates of
governmental officials, a recent date before the Signing Date) and each in form
and substance satisfactory to the Administrative Agent and each of the Lenders:

 

(i)            executed counterparts of this Agreement,
sufficient in number for distribution to the Administrative Agent, each Lender
and the Company;

 

72

 

(ii)           such certificates of resolutions or other
action, incumbency certificates and/or other certificates of Responsible
Officers of the Company as the Administrative Agent may reasonably require
evidencing the identity, authority and capacity of each Responsible Officer
thereof authorized to act as a Responsible Officer in connection with this
Agreement and the other Loan Documents to which the Company is a party;

 

(iii)          such
documents and certifications as the Administrative Agent may reasonably require
to evidence that the Company is duly organized or formed, and that the Company
is validly existing, in good standing and qualified to engage in business in
each jurisdiction where its ownership, lease or operation of properties or the
conduct of its business requires such qualification, except to the extent that
failure to do so could not reasonably be expected to have an Initial Funding
Date Material Adverse Effect, which such jurisdictions are set forth on Schedule
4.01(a)(iii);

 

(iv)          an opinion of Hunton & Williams LLP,
counsel to the Company, addressed to the Administrative Agent and each Lender,
in form and substance satisfactory to the Administrative Agent and the Required
Lenders;

 

(v)           an opinion of Walter Bardenwerper, general counsel to the Company,
addressed to the Administrative Agent and each Lender, in form and substance
satisfactory to the Administrative Agent and the Required Lenders;

 

(vi)          such other assurances, certificates,
documents, consents or opinions as the Administrative Agent, any L/C Issuer,
the Swing Line Lender or the Required Lenders reasonably may require.

 

(b)          Any fees required to be paid on or before the Signing
Date shall have been paid, including without limitation, the Ticking Fee (as
defined in the Commitment Letter), which such fee shall cease accruing after
the Signing Date.

 

(c)           Unless waived by the Administrative Agent, the Company
shall have paid all actual and reasonable fees, charges and disbursements of
counsel to the Administrative Agent (directly to such counsel if requested by
the Administrative Agent) to the extent invoiced prior to or on the Signing
Date, plus such additional amounts of such fees, charges and disbursements as
shall constitute its reasonable estimate of such fees, charges and disbursements
incurred or to be incurred by it through the effectiveness proceedings
(provided that such estimate shall not thereafter preclude a final settling of
accounts between the Company and the Administrative Agent).

 

(d)          The Signing Date shall have occurred on or before February
26, 2010.

 

Without limiting the generality of the provisions of Section
9.04, for purposes of determining compliance with the conditions specified
in this Section 4.01, each Lender that has signed this Agreement shall
be deemed to have consented to, approved or accepted or to be satisfied with,
each document or other matter required hereunder to be consented to or approved
by or acceptable or satisfactory to a Lender unless the Administrative Agent
shall have received notice from such Lender prior to the proposed Signing Date
specifying its objection thereto.

 

73

 

4.02        Conditions to Initial Funding.  The obligation of each Lender and each
L/C Issuer to make its initial Credit Extension hereunder is subject to the
satisfaction of the following conditions precedent:

 

(a)           The Signing Date shall have occurred;

 

(b)          The Administrative Agent’s receipt of the following,
each of which shall be originals or telecopies (followed promptly by originals)
unless otherwise specified, each properly executed by a Responsible Officer of
the signing Loan Party (to the extent applicable), each dated the Initial
Funding Date unless otherwise noted below (or, in the case of certificates of
governmental officials, a recent date before the Initial Funding Date) and each
in form and substance satisfactory to the Administrative Agent and each of the
Lenders:

 

(i)            counterparts of the Subsidiary Guaranty
duly executed by each Domestic Subsidiary of the Company, sufficient in number
for distribution to the Administrative Agent and the Lenders;

 

(ii)           counterparts of the Company Guaranty duly
executed by the Company, sufficient in number for distribution to the
Administrative Agent and the Lenders;

 

(iii)          Notes
executed by the Company and each Designated Borrower in favor of each Lender
requesting Notes;

 

(iv)          such certificates of resolutions or other
action, incumbency certificates and/or other certificates of Responsible
Officers of each Loan Party as the Administrative Agent may reasonably require
evidencing the identity, authority and capacity of each Responsible Officer
thereof authorized to act as a Responsible Officer in connection with this
Agreement and the other Loan Documents to which such Loan Party is a party;

 

(v)           such documents and certifications as the
Administrative Agent may reasonably require to evidence that each Loan Party is
duly organized or formed, and that each Loan Party is validly existing, in good
standing and qualified to engage in business in each jurisdiction where its
ownership, lease or operation of properties or the conduct of its business
requires such qualification, except to the extent that failure to do so could
not reasonably be expected to have an Initial Funding Date Material Adverse Effect,
which such jurisdictions are set forth on Schedule 4.02(b)(v);

 

(vi)          (i) an opinion of Hunton & Williams
LLP, counsel to the Loan Parties, addressed to the Administrative Agent and
each Lender, in form and substance satisfactory to the Administrative Agent and
the Required Lenders; and (ii) an opinion of general counsel to the Company,
addressed to the Administrative Agent and each Lender, in form and substance
satisfactory to the Administrative Agent and the Required Lenders;

 

(vii)         opinions
of local counsel to the Loan Parties in the States of Delaware, Pennsylvania,
and such other jurisdictions as are required for the states of organization of
each Subsidiary Guarantor, in form and substance satisfactory to the
Administrative Agent and the Required Lenders;

 

74

 

(viii)        [intentionally
omitted];

 

(ix)           a certificate of a Responsible Officer of
each Loan Party attaching (A) all Requisite Regulatory Approvals (as defined
in, and required by, the Merger Agreement), and all such Requisite Regulatory
Approvals shall be in full force and effect, and (B) either (i) attaching
copies of all other material governmental, shareholder and third party
consents, licenses and approvals required in connection with the Transaction,
including the execution, delivery and performance by such Loan Party and the
validity against such Loan Party of the Loan Documents to which it is a party,
and such consents, licenses and approvals shall be in full force and effect, or
(ii) stating that no such other material consents, licenses or approvals are so
required, except those as have been obtained or made and are in full force and
effect;

 

(x)            a certificate signed by a Responsible
Officer of the Company certifying (A) that the conditions specified in Sections
4.03(a) and (b) have been satisfied, and (B) that there has been no
event or condition since (1) in the case of Watson Wyatt and its Subsidiaries, June
30, 2009, (2) in the case of Towers Perrin and its Subsidiaries, June 30, 2009,
or (3) in the case of the Company and its Subsidiaries, the date of its
formation, that has had or could be reasonably expected, either individually or
in the aggregate, to have an Initial Funding Date Material Adverse Effect; and (C)
as to the accuracy of and attaching (1) a proposed Schedule 1.01B of
Existing Letters of Credit, (2) a proposed Schedule 5.05, (3) a proposed
Schedule 5.11, (4) proposed updated parts (a) and (b) of Schedule
5.13, (5) a proposed updated Schedule 5.17, (6) a proposed updated Schedule
7.01, (7) a proposed Schedule 7.02, (8) a proposed updated Schedule
7.03(c), and (9) a proposed updated Schedule 7.03(f), in each case
as of the Initial Funding Date and giving effect to the Merger for approval by
the Administrative Agent and each Lender, such approval not to be unreasonably
withheld, conditioned or delayed;

 

(xi)           a certificate signed by a Responsible
Officer of the Company, Watson Wyatt and Towers Perrin certifying as to the
absence of any action, suit, investigation or proceeding pending or, to the
knowledge of the Company, Watson Wyatt or Towers Perrin, threatened in writing,
in any court or before any arbitrator or Governmental Authority that could
reasonably be expected to (A) have an Initial Funding Date Material Adverse
Effect or (B) materially delay or alter the terms of the Transaction;

 

(xii)          (A)
interim financial statements of each of Watson Wyatt and Towers Perrin and
their respective Subsidiaries dated as of September 30, 2009, which interim
financial statements shall be substantially consistent with, and not materially
worse than, the Reference Financial Statements, and (B) pro forma consolidated
financial statements (the “Pro Forma Financial Statements”) of the
Company and its Subsidiaries giving effect to all elements of the Transaction
as of the date of such interim statements which are consistent in all material
respects with the pro forma consolidated financial statements filed with the
SEC in the connection with the S-4 on September 3, 2009;

 

(xiii)         a
duly completed Compliance Certificate showing financial covenant calculations
as of the Initial Funding Date and as of the last day of the fiscal quarter of
Watson Wyatt and the fiscal period of Towers Perrin, in each case, ended as of 

 

75

 

September 30, 2009 (giving effect to the Transaction as if the
Transaction occurred on the first date of the period of the four fiscal
consecutive quarters most recently then ended), signed by a Responsible Officer
of the Company;

 

(xiv)        certificates
signed by a responsible officer of each of the Company, Watson Wyatt and Towers
Perrin, respectively, attesting to the Solvency of the Company and its
Subsidiaries, taken as a whole, Watson Wyatt and its Subsidiaries, taken as a
whole, and Towers Perrin and its Subsidiaries, taken as a whole (in each case,
after giving effect to the Transaction and the initial incurrence of
Indebtedness hereunder and under the Senior Subordinated Notes);

 

(xv)         a certificate of a Responsible Officer of
the Company attaching the Merger Agreement and all other agreements,
instruments and documents relating to the Merger and certifying that (A) the
final terms and conditions of each aspect of the Transaction, including,
without limitation, all tax aspects thereof, are (i) as described in the
commitment letter agreement dated as of October 2, 2009 among Watson Wyatt,
Towers Perrin, Bank of America, PNC and the Arrangers (the “Commitment
Letter”) and otherwise materially consistent with the description thereof
received in writing as part of the Information (as defined in the Commitment
Letter) and (ii) are otherwise reasonably satisfactory to the Lenders, (B) the
Merger Agreement in the form executed on June 26, 2009 (as amended by
Amendment No. 1 dated as of October 19, 2009), and all other agreements, instruments and documents
relating to the Merger have not have been altered, amended or otherwise changed
or supplemented or any condition therein waived in a manner that is adverse to
the Lenders (as determined by the Arrangers in their sole discretion), other
than with the prior written consent of the Arrangers, and (C) the Merger has
been, or will be substantially simultaneously with the Initial Funding Date,
consummated in material accordance with the terms of the Merger Agreement and
in compliance with applicable law and regulatory approvals other than those
regulatory approvals non-compliance with which could not reasonably be expected
to result in an Initial Funding Date Material Adverse Effect;

 

(xvi)        delivery
of (A) documents and/or evidence of other actions as may be reasonably
necessary under applicable law to perfect and register the Liens of the
Administrative Agent under the Pledge Agreement as a first priority Lien in and
to such Pledged Interests as the Administrative Agent may reasonably require,
including the delivery by the Company and each Domestic Subsidiary having an
Equity Interest of TP Luxembourg of all certificates evidencing Pledged
Interests, accompanied in each case by duly executed stock powers (or other
appropriate transfer documents) in blank affixed thereto; and (B) each other
document (including Uniform Commercial Code financing statements) required by
the Collateral Documents or under law or reasonably requested by the
Administrative Agent to be filed, registered or recorded in order to create in
favor of the Administrative Agent, for the benefit of the Guaranteed Parties, a
perfected Lien on the collateral described therein, prior to any other Liens
(subject only to Liens permitted pursuant to Section 7.01), in proper
form for filing, registration or recording. 
The Administrative Agent is hereby irrevocably authorized to execute and
file or cause to be filed, with or if permitted by applicable law without the
signatures of the Company or any other Loan Party, as applicable, Uniform
Commercial Code financing statements 

 

76

 

reflecting the Company or any Domestic Subsidiary party to a Collateral
Document as “debtor” and the Administrative Agent as “secured party”, and
continuations thereof and amendments thereto, as the Administrative Agent deems
necessary or advisable to give effect to the transactions contemplated hereby
and by the other Loan Documents;

 

(xvii)       a
certificate of a Responsible Officer of the Company listing the transaction
fees, costs and expenses incurred on or prior to the Initial Funding Date in
connection with the Transaction and described in clause (iv) of the
definition of Consolidated EBITDA;

 

(xviii)      evidence
that each of the Existing Watson Wyatt Credit Agreement and the Existing Towers
Perrin Credit Agreement has been or concurrently with the Initial Funding Date
is being terminated and all Liens securing obligations and guaranties under the
Existing Watson Wyatt Credit Agreement and the Existing Towers Perrin Credit
Agreement have been or concurrently with the Initial Funding Date are being
released; and

 

(xix)         such
other assurances, certificates, documents, consents or opinions as the
Administrative Agent, any L/C Issuer, the Swing Line Lender or the Required
Lenders reasonably may require.

 

(c)           Any fees required to be paid on or before the Initial
Funding Date shall have been paid, including without limitation any fees
required to be paid by Wyatt Watson or Towers Perrin pursuant to the Fee
Letters.

 

(d)          Unless waived by the Administrative Agent, the Company
shall have paid all actual and reasonable fees, charges and disbursements of
counsel to the Administrative Agent (directly to such counsel if requested by
the Administrative Agent) to the extent invoiced prior to or on the Initial
Funding Date, plus such additional amounts of such fees, charges and
disbursements as shall constitute its reasonable estimate of such fees, charges
and disbursements incurred or to be incurred by it through the initial funding
proceedings (provided that such estimate shall not thereafter preclude a final
settling of accounts between the Company and the Administrative Agent).

 

(e)           No Law shall be applicable, which in the reasonable
judgment of the Administrative Agent, could restrain, prevent or impose any
material adverse conditions on the Company and its Subsidiaries or that could
seek or threaten any of the foregoing

 

(f)           The Initial Funding Date shall have occurred on or
before April 30, 2010.  The parties
hereto acknowledge and agree that if all of the conditions precedent set forth
in this Section 4.02 have not been satisfied or waived and the Initial
Funding Date has not occurred on or prior to April 30, 2010, this Agreement
(and the commitment of each Lender to make Loans and of the obligation of each
L/C Issuer to make L/C Credit Extensions hereunder) shall terminate and be of
no further force or effect other than with respect to those contingent
reimbursement and indemnity obligations (including without limitation
reimbursement of actual and reasonable fees and expenses of counsel) which by
the terms of this Agreement are stated to survive termination of this
Agreement.

 

77

 

Without limiting the generality of the provisions of Section 9.04,
for purposes of determining compliance with the conditions specified in this Section 4.02,
each Lender that has signed this Agreement shall be deemed to have consented
to, approved or accepted or to be satisfied with, each document or other matter
required hereunder to be consented to or approved by or acceptable or
satisfactory to a Lender unless the Administrative Agent shall have received
notice from such Lender prior to the Initial Funding Date specifying its
objection thereto.

 

4.03                        Conditions to All Credit
Extensions.  The obligation of each Lender to honor
any Request for Credit Extension (other than a Revolving Loan Notice requesting
only a conversion of Revolving Loans to the other Type, or a continuation of
Eurocurrency Rate Loans) is subject to the following conditions precedent:

 

(a)                               The representations and warranties of (i) the
Borrowers contained in Article V and (ii) each Loan Party
contained in each other Loan Document or in any document furnished at any time
under or in connection herewith or therewith, shall be true and correct in all
material respects on and as of the date of such Credit Extension, except that (w) if
a qualifier relating to materiality, Material Adverse Effect, Initial Funding
Date Material Adverse Effect or a similar concept applies, such representation
or warranty shall be required to be true and correct in all respects, (x) to
the extent that such representations and warranties specifically refer to an
earlier date, in which case they shall be true and correct as of such earlier
date, (y) for purposes of this Section 4.03, the
representations and warranties contained in Sections 5.05(a) and (b) shall
be deemed to refer to the most recent statements furnished pursuant to clauses
(a) and (b), respectively, of Section 6.01 and (z) the
references to “Material Adverse Effect” in such representations and warranties
made by the Borrowers and the other Loan Parties on the Initial Funding Date
shall be deemed to be a reference to “Initial Funding Date Material Adverse
Effect”.

 

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

 

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

 

(d)                               If the applicable Borrower is a
Designated Borrower, then the conditions of Section 2.14 to the
designation of such Borrower as a Designated Borrower shall have been met to
the satisfaction of the Administrative Agent.

 

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

 

78

 

Each Request for Credit Extension (other than a
Revolving Loan Notice requesting only a conversion of Revolving Loans to the
other Type or a continuation of Eurocurrency Rate Loans) submitted by the
Company shall be deemed to be a representation and warranty that the conditions
specified in Sections 4.03(a) and (b) have been
satisfied on and as of the date of the applicable Credit Extension.

 

ARTICLE V.

REPRESENTATIONS AND WARRANTIES

 

Except as otherwise provided in Section 5.23,
each Borrower represents and warrants to the Administrative Agent and the
Lenders that:

 

5.01                        Existence, Qualification and
Power.  Each Loan Party and each Subsidiary thereof (a) is
duly organized or formed, validly existing and, as applicable, in good standing
under the Laws of the jurisdiction of its incorporation or organization, (b) has
all requisite corporate or other organizational power and authority to (i) carry
on its business as now conducted and (ii) execute, deliver and perform its
obligations under the Loan Documents to which it is a party, and (c) is
duly qualified and is licensed and, as applicable, in good standing under the
Laws of each jurisdiction where its ownership, lease or operation of properties
or the conduct of its business requires such qualification or license; except
in each case referred to in clause (a) (with respect only to
Subsidiaries other than Loan Parties), (b)(i) or (c), to the
extent that failure to do so could not reasonably be expected to have a
Material Adverse Effect.

 

5.02                        Authorization; No Contravention.  The execution, delivery and performance by each Loan
Party of each Loan Document to which such Loan Party is party, have been duly
authorized by all necessary corporate or other organizational action, and do
not and will not (a) contravene the terms of any of such Person’s
Organization Documents; (b) conflict with or result in any breach or
contravention of, or the creation of any Lien (other than Liens (if any)
created under this Agreement or any other Loan Document) under, or require any
payment to be made under (i) any Contractual Obligation constituting any
indenture, agreement or other instrument to which such Loan Party is a party or
affecting such Loan Party or the properties of such Person or any of its
Subsidiaries or (ii) any order, injunction, writ or decree of any Governmental
Authority or any arbitral award to which such Person or its property is
subject; or (c) violate any Law applicable to such Loan Party, in the case
of each of clauses (b) and (c) which could reasonably
be expected to have a Material Adverse Effect.

 

5.03                        Governmental Authorization; Other
Consents.  No approval, consent, exemption,
authorization, or other action by, or notice to, or filing with, any
Governmental Authority or any other Person is necessary or required in
connection with the execution, delivery or performance by any Loan Party of
this Agreement or any other Loan Document to which such Loan Party is a party,
except those as have been obtained or made and are in full force and effect.

 

5.04                        Binding Effect.  This Agreement has been, and each other Loan Document,
when delivered hereunder, will have been, duly executed and delivered by each
Loan Party that is party thereto.  This
Agreement constitutes, and each other Loan Document when so executed and
delivered will constitute, a legal, valid and binding obligation of such Loan
Party, enforceable 

 

79

 

against each Loan Party
that is party thereto in accordance with its terms, except as may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium, Debtor Relief
Laws or similar Laws affecting the enforcement of creditors’ rights generally
and by general principles of equity.

 

5.05                        Financial Statements; No Material
Adverse Effect.  On and after the Initial Funding Date:

 

(a)                               The Reference Financial Statements (i) were
prepared in accordance with GAAP consistently applied throughout the period
covered thereby, except as otherwise expressly noted therein; (ii) fairly
present in all material respects the financial condition of Wyatt Watson and
its Subsidiaries and Towers Perrin and its Subsidiaries, respectively, as of
the date thereof and their results of operations for the period covered thereby
in accordance with GAAP consistently applied throughout the period covered
thereby, except as otherwise expressly noted therein; and (iii) show all
material indebtedness and other liabilities, direct or contingent, of such
Persons as of the date thereof, including liabilities for taxes, material
commitments and Indebtedness.  The
Parties hereto acknowledge and agree that after the Initial Funding Date the
representations and warranties contained in this Section 5.05(a) shall
refer to the Company and its Subsidiaries and the financial statements most
recently delivered by the Company and its Subsidiaries pursuant to Section 6.01(a).

 

(b)                               The unaudited consolidated balance sheets
of Watson Wyatt and its Subsidiaries and Towers Perrin and its Subsidiaries
dated September 30, 2009, and the related consolidated statements of
income or operations, shareholders’ equity and cash flows for the fiscal
quarter ended on that date (i) were prepared in accordance with GAAP
consistently applied throughout the period covered thereby, except as otherwise
expressly noted therein, and (ii) fairly present in all material respects
the financial condition of such Persons as of the date thereof and their
results of operations for the period covered thereby, subject, in the case of clauses
(i) and (ii), to the absence of footnotes and to normal
year-end audit adjustments.  Schedule
5.05 sets forth all material indebtedness and other liabilities, direct or
contingent, of such Persons not set forth in such financial statements,
including liabilities for taxes, material commitments and Indebtedness. The
Parties hereto acknowledge and agree that after the Initial Funding Date the
representations and warranties contained in this Section 5.05(b) shall
refer to the Company and its Subsidiaries and the financial statements required
to be delivered by the Company and its Subsidiaries pursuant to Section 6.01(b).

 

(c)                                Since the date of the Reference Financial
Statements, there has been no event or circumstance, either individually or in
the aggregate, that has had or could reasonably be expected to have a Material
Adverse Effect.

 

(d)          The Pro Forma
Financial Statements, certified by a Responsible Officer of Watson Wyatt and
Towers Perrin, copies of which have been furnished to each Lender, fairly
present the consolidated  pro forma
financial condition of such Persons as at such date and the consolidated  pro forma results of operations of such Persons for the
period ended on such date, all in accordance with GAAP.

 

80

 

5.06                        Litigation.  There are no actions, suits, proceedings, claims or
disputes pending or, to the knowledge of the Company, threatened in writing, at
law, in equity, in arbitration or before any Governmental Authority, by or
against the Company or any of its Subsidiaries or against any of their
properties or revenues that (a) purport to draw into question the validity
or enforceability of this Agreement or any other Loan Document or of any Lien
granted hereunder or thereunder, or (b) either individually or in the
aggregate, if determined adversely, could reasonably be expected to have a
Material Adverse Effect.

 

5.07                        No Default.  Neither any Loan Party nor any Subsidiary thereof is
in default under or with respect to any Contractual Obligation that could,
either individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect.  No Default has
occurred and is continuing or would result from the consummation of the
transactions contemplated by this Agreement or any other Loan Document.

 

5.08                        Ownership of Property;
Liens.  Each of the Company and each Subsidiary has good
record to, or valid leasehold interests in, all real property necessary or used
in the ordinary conduct of its business, except for Permitted Liens and such
other defects in title as could not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.  The property of the Company and its
Subsidiaries is subject to no Liens, other than Permitted Liens.

 

5.09                        Environmental Compliance.  The Company and its Subsidiaries conduct in the
ordinary course of business a review of the effect of existing Environmental
Laws and claims alleging potential liability or responsibility for violation of
any Environmental Law on their respective businesses, operations and
properties, and as a result thereof the Company has reasonably concluded that
such Environmental Laws and claims could not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

 

5.10                        Insurance.  The properties of the Company and its Subsidiaries are
insured with financially sound and reputable insurance companies not Affiliates
of the Company, in such amounts (after giving effect to any self-insurance
compatible with the following standards), with such deductibles and covering
such risks as are customarily carried by companies engaged in similar
businesses and owning similar properties in localities where the Company or the
applicable Subsidiary operates.

 

5.11                        Taxes.  The Company and its Subsidiaries have filed all
foreign, Federal, state and other material tax returns and reports required to
be filed, and have paid all foreign, Federal, state and other material taxes,
assessments, fees and other governmental charges levied or imposed upon them or
their properties, income or assets otherwise due and payable, except those
which are being contested in good faith by appropriate proceedings diligently
conducted and for which adequate reserves have been provided in accordance with
GAAP.  There is no proposed tax
assessment against the Company or any Subsidiary that could reasonably be
expected to result in a Material Adverse Effect.  Neither any Loan Party nor any Subsidiary
thereof is party to any tax sharing agreement with a Person that is not a Loan
Party or a Subsidiary thereof, except as set forth on Schedule 5.11.

 

81

 

5.12                        ERISA Compliance.

 

(a)                               Each Pension Plan is in compliance in all
material respects with the applicable provisions of ERISA, the Code and other
Federal or state laws; provided, however, that this sentence
applies to a Multiemployer Plan only the extent to the knowledge of the
Borrowers.  Each Pension Plan which is
intended to be a qualified plan under Section 401(a) of the Code has
received a favorable determination letter from the Internal Revenue Service to
the effect that the form of such Pension Plan as to which the favorable
determination letter was issued is qualified under Section 401(a) of the
Code and the trust related thereto has been determined by the Internal Revenue
Service to be exempt from federal income tax under Section 501(a) of
the Code; provided, however, that this sentence applies to a
Multiemployer Plan only the extent to the knowledge of the Borrowers.

 

(b)                               There are no pending or, to the knowledge
of the Borrowers, threatened claims, actions or lawsuits, or action by any
Governmental Authority, with respect to any Pension Plan that could reasonably
be expected to have a Material Adverse Effect. 
There has been no prohibited transaction or violation of the fiduciary
responsibility rules with respect to any Pension Plan that has resulted or
could reasonably be expected to result in a Material Adverse Effect; provided,
however, that this sentence applies to a Multiemployer Plan only the
extent to the knowledge of the Borrowers.

 

(c)                                (i) Neither any Borrower nor any
ERISA Affiliate has taken any action which would constitute or result in an
ERISA Event with respect to any Pension Plan and as to which any Borrower or
any ERISA Affiliate has any unsatisfied liability; (ii) each Borrower and
each ERISA Affiliate has met all applicable requirements under the Pension
Funding Rules in respect of each Pension Plan (other than a Multiemployer
Plan) and has made all required contributions to each Multiemployer Plan on a
timely basis, and no waiver of the minimum funding standards under the Pension
Funding Rules has been applied for or obtained for any Pension Plan (other
than a Multiemployer Plan only to the extent to the knowledge of the
Borrowers); (iii) neither any Borrower nor any ERISA Affiliate has
incurred any liability to the PBGC other than for the payment of premiums, and
there are no premium payments which have become due which are unpaid; (iv) neither
any Borrower nor any ERISA Affiliate has engaged in a transaction that could be
subject to Section 4069 or 4212(c) of ERISA; (v) no Pension Plan
has been terminated by the plan administrator thereof nor by the PBGC, and no
event or circumstance has occurred or exists that could reasonably be expected
to cause the PBGC to institute proceedings under Title IV of ERISA to terminate
any Pension Plan; and (vi) neither any Borrower nor any ERISA Affiliate
has any unsatisfied liability on account of the termination, before the Signing
Date, of a plan that was subject to Title IV of ERISA, Section 302 of
ERISA or Section 412 of the Code.

 

5.13                        Subsidiaries; Equity
Interests.  As of the
Signing Date, the
Company has no Subsidiaries other than those specifically disclosed in Part (a) of
Schedule 5.13, and all of the outstanding Equity Interests in such
Subsidiaries have been validly issued, are fully paid and nonassessable and are
owned by a Loan Party or another Subsidiary of the Company in the amounts
specified on Part (a) of Schedule 5.13 free and clear
of all Liens (other than Permitted Liens that attach to all assets of the
holder of such Equity Interests).  The
Company has no equity investments in any other corporation or entity other than
those specifically disclosed in Part (b) 

 

82

 

of Schedule 5.13.  All of the outstanding Equity Interests in
the Company have been validly issued  and are fully
paid and nonassessable.

 

5.14                        Margin Regulations; Investment
Company Act.

 

(a)                               No Borrower is engaged or will engage,
principally or as one of its important activities, in the business of
purchasing or carrying margin stock (within the meaning of Regulation U issued
by the FRB), or extending credit for the purpose of purchasing or carrying
margin stock.  Following
the application of the proceeds of each Borrowing or drawing under each Letter
of Credit, not more than 25% of the value of the assets (either of the
applicable Borrower only or of the Company and its Subsidiaries on a
consolidated basis) subject to the provisions of Section 7.01 or Section 7.05
or subject to any restriction contained in any agreement or instrument between
any Borrower and any Lender or any Affiliate of any Lender relating to
Indebtedness and within the scope of Section 8.01(e) will be margin
stock.

 

(b)                               None of the Company, any Person
Controlling the Company, or any Subsidiary is or is required to be registered
as an “investment company” under the Investment Company Act of 1940.

 

5.15                        Disclosure.  The Company has disclosed to the Administrative Agent
and the Lenders all agreements, instruments and corporate or other restrictions
to which it or any of its Subsidiaries is subject, and all other matters known
to it, that, individually or in the aggregate, could reasonably be expected to
result in a Material Adverse Effect.  No
report, financial statement, certificate or other information furnished
(whether in writing or orally) by or on behalf of any Loan Party to the
Administrative Agent or any Lender in connection with the transactions
contemplated hereby and the negotiation of this Agreement or delivered
hereunder or under any other Loan Document (in each case, as modified or
supplemented by other information so furnished) contains any material
misstatement of fact or omits to state any material fact necessary to make the
statements therein, taken as a whole, in the light of the circumstances under
which they were made, not materially misleading; provided that, with
respect to projected financial information, the Company represents only that
such information was prepared in good faith based upon assumptions believed to
be reasonable at the time, and based only on information currently available at
the time of the making thereof.

 

5.16                        Compliance with Laws.  Each Loan Party and each Subsidiary thereof is in
compliance in all material respects with the requirements of all Laws and all
orders, writs, injunctions and decrees applicable to it or to its properties,
except in such instances in which (a) such requirement of Law or order,
writ, injunction or decree is being contested in good faith by appropriate
proceedings diligently conducted or (b) the failure to comply therewith,
either individually or in the aggregate, could not reasonably be expected to
have a Material Adverse Effect.

 

5.17                        Taxpayer Identification Number;
Other Identifying Information.  The true and correct U.S. taxpayer
identification number of the Company and each Designated Borrower that is a
Domestic Subsidiary and a party hereto on the Signing Date is set forth on Schedule
10.02.  The true and correct unique
identification number of each Designated Borrower that is a 

 

83

 

Foreign Subsidiary and a
party hereto on the Signing Date that has been issued by its jurisdiction of
organization and the name of such jurisdiction are set forth on Schedule
5.17.

 

5.18                        Intellectual Property; Licenses,
Etc.  The
Company and its Subsidiaries own, or possess the right to use, all of the
trademarks, service marks, trade names, copyrights, patents, patent rights,
franchises, licenses and other intellectual property rights (collectively, “IP
Rights”) that are reasonably necessary for the operation of their
respective businesses, without conflict with the rights of any other Person,
which conflict, either individually or in the aggregate, could reasonably be
expected to have a Material Adverse Effect. 
To the knowledge of the Company, no slogan or other advertising device,
product, process, method, substance, part or other material now employed, or
now contemplated to be employed, by the Company or any Subsidiary infringes
upon any rights held by any other Person, which infringement, either
individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect.  No claim or
litigation regarding any of the foregoing is pending or, to the knowledge of
the Company, threatened in writing, which, either individually or in the
aggregate, could reasonably be expected to have a Material Adverse Effect.

 

5.19                        Solvency.  Both before and after giving effect to the Loans
hereunder, the Loan Parties on a consolidated basis are Solvent.

 

5.20                        Casualty, Etc.  Neither the businesses nor
the properties of any Loan Party or any of its Subsidiaries are affected by any
fire, explosion, accident, strike, lockout or other labor dispute, drought,
storm, hail, earthquake, embargo, act of God or of the public enemy or other
casualty (whether or not covered by insurance) that, either individually or in
the aggregate, could reasonably be expected to have a Material Adverse Effect.

 

5.21                        Labor Relations.  There are no strikes,
lockouts or other material labor disputes or grievances against the Company or
any of its Subsidiaries, or, to the knowledge of the Loan Parties, threatened
against or affecting the Company or any of its Subsidiaries, and no significant
unfair labor practice, charges or grievances are pending against the Company or
any of its Subsidiaries, or to the knowledge of the Loan Parties, threatened
against any of them before any Governmental Authority, that, either individually
or in the aggregate, could reasonably be expected to have a Material Adverse
Effect.  All payments due from the
Company or any of its Subsidiaries pursuant to the provisions of any collective
bargaining agreement have been paid or accrued as a liability on the books of
the Company or applicable Subsidiary, except where the failure to do so could
not reasonably be expected to have a Material Adverse Effect.

 

5.22                        OFAC.  No Loan Party (i) is a
person whose property or interest in property is blocked or subject to blocking
pursuant to Section 1 of Executive Order 13224 of September 23, 2001
Blocking Property and Prohibiting Transactions With Persons Who Commit,
Threaten to Commit, or Support Terrorism (66 Fed. Reg. 49079 (2001)), (ii) engages
in any dealings or transactions prohibited by Section 2 of such executive
order, or is otherwise associated with any such person in any manner violative
of Section 2, or (iii) is a person on the list of Specially
Designated Nations and Blocked Persons or subject to the limitations or
prohibitions under any other U.S. Department of Treasury’s Office of Foreign
Asset Control regulation or executive order.

 

84

 

5.23                        Representations as to Foreign
Obligors.  Each of the Company and each Foreign
Obligor represents and warrants to the Administrative Agent and the Lenders
that:

 

(a)                               Such Foreign Obligor is subject to civil
and commercial Laws with respect to its obligations under this Agreement and
the other Loan Documents to which it is a party (collectively as to such
Foreign Obligor, the “Applicable Foreign Obligor Documents”), and the
execution, delivery and performance by such Foreign Obligor of the Applicable
Foreign Obligor Documents constitute and will constitute private and commercial
acts and not public or governmental acts. 
Neither such Foreign Obligor nor any of its property has any immunity
from jurisdiction of any court or from any legal process (whether through
service or notice, attachment prior to judgment, attachment in aid of
execution, execution or otherwise) under the laws of the jurisdiction in which
such Foreign Obligor is organized and existing in respect of its obligations
under the Applicable Foreign Obligor Documents.

 

(b)                               The Applicable Foreign Obligor Documents
are in proper legal form under the applicable Laws of the jurisdiction in which
such Foreign Obligor is organized and existing for the enforcement thereof
against such Foreign Obligor under the Laws of such jurisdiction, and to ensure
the legality, validity, enforceability, priority or admissibility in evidence
of the Applicable Foreign Obligor Documents, except as may be limited by
applicable bankruptcy, insolvency, moratorium, Debtor Relief Laws or similar
Laws affecting the enforcement of creditors’ rights generally and by general
principles of equity.  It is not
necessary to ensure the legality, validity, enforceability, priority or
admissibility in evidence of the Applicable Foreign Obligor Documents that the
Applicable Foreign Obligor Documents be filed, registered or recorded with, or
executed or notarized before, any court or other authority in the jurisdiction
in which such Foreign Obligor is organized and existing or that any
registration charge or stamp or similar tax be paid on or in respect of the
Applicable Foreign Obligor Documents or any other document, except for (i) any
such filing, registration, recording, execution or notarization as has been
made or is not required to be made until the Applicable Foreign Obligor
Document or any other document is sought to be enforced and (ii) any
charge or tax as has been timely paid.

 

(c)                                There is no material tax, levy, impost,
duty, fee, assessment or other governmental charge, or any deduction or
withholding, imposed by any Governmental Authority in or of the jurisdiction in
which such Foreign Obligor is organized and existing either (i) on or by
virtue of the execution or delivery of the Applicable Foreign Obligor Documents
or (ii) on any payment to be made by such Foreign Obligor pursuant to the
Applicable Foreign Obligor Documents, except as has been disclosed to the
Administrative Agent.

 

(d)                               The execution, delivery and performance
of the Applicable Foreign Obligor Documents executed by such Foreign Obligor
are, under applicable foreign exchange control regulations of the jurisdiction
in which such Foreign Obligor is organized and existing, not subject to any
notification or authorization except (i) such as have been made or
obtained or (ii) such as cannot be made or obtained until a later date (provided
that any notification or authorization described in clause (ii) shall
be made or obtained as soon as is reasonably practicable).

 

85

 

ARTICLE VI.

AFFIRMATIVE COVENANTS

 

So long as any Lender shall have any Commitment
hereunder, any Obligation hereunder shall remain unpaid or unsatisfied, or any
Letter of Credit shall remain outstanding (other than indemnities and
other similar contingent obligations surviving the termination of this
Agreement for which no claim has been made and which are unknown and not
calculable at the time of termination and those obligations under any Swap Contract), the Company shall, and shall (except in
the case of the covenants set forth in Sections 6.01, 6.02, and 6.03)
cause each Subsidiary to:

 

6.01                        Financial Statements.  Deliver to the Administrative Agent (with sufficient
copies for each Lender), in form and detail reasonably satisfactory to the
Administrative Agent and the Required Lenders:

 

(a)                               as soon as available, but in any event no
later than the earlier of (x) five (5) days after the date on which
the consolidated financial statements for each fiscal year are required to be
filed with the SEC under the Securities Exchange Act of 1934 and (y) 90
days after the end of such fiscal year of the Company (commencing with the
fiscal year ended  June 30, 2010), a
consolidated and consolidating balance sheet of the Company and its
Subsidiaries as at the end of such fiscal year, and the related consolidated
statements of income or operations, changes in shareholders’ equity, and cash
flows for such fiscal year, setting forth in each case in comparative form the
figures for the previous fiscal year, all in reasonable detail and prepared in
accordance with GAAP, audited and accompanied by a report and opinion of an
independent certified public accountant of nationally recognized standing
reasonably acceptable to the Required Lenders, which report and opinion shall
be prepared in accordance with generally accepted auditing standards and shall
not be subject to any “going concern” or like qualification or exception or any
qualification or exception as to the scope of such audit; and

 

(b)                               as soon as available, but in any event no
later than the earlier of (x) five (5) days after the date on which
the consolidated financial statements for each of the first three fiscal
quarters of each fiscal year are required to be filed with the SEC under the
Securities Exchange Act of 1934 and (y) 50 days after the end of such
fiscal quarter of the Company (commencing with the fiscal quarter ended March 31,
2010), a consolidated balance sheet of the Company and its Subsidiaries as at
the end of such fiscal quarter, and the related consolidated statements of
income or operations for such fiscal quarter and for the portion of the Company’s
fiscal year then ended, and the related consolidated statements of changes in
shareholders’ equity, and cash flows for the portion of the Company’s fiscal
year then ended, in each case setting forth in each case in comparative form,
as applicable, the figures for the corresponding fiscal quarter of the previous
fiscal year and the corresponding portion of the previous fiscal year, all in
reasonable detail, certified by the chief executive officer, chief financial
officer, treasurer or controller of the Company as fairly presenting in all
material respects the financial condition, results of operations, shareholders’
equity and cash flows of the Company and its Subsidiaries in accordance with
GAAP, subject only to normal year-end audit adjustments and the absence of
footnotes.

 

86

 

As to any information contained in materials furnished
pursuant to Section 6.02(c), the Company shall not be separately
required to furnish such information under clause (a) or (b) above,
but the foregoing shall not be in derogation of the obligation of the Company
to furnish the information and materials described in clauses (a) and
(b) above at the times specified therein.

 

6.02                        Certificates; Other
Information.  Deliver to the Administrative Agent (with
sufficient copies for each Lender), in form and detail reasonably satisfactory
to the Administrative Agent and the Required Lenders:

 

(a)                               concurrently with the delivery of the
financial statements referred to in Sections 6.01(a) and (b),
a duly completed Compliance Certificate signed by the chief executive officer,
chief financial officer, treasurer or controller of the Company;

 

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

 

(c)                                promptly after the same become publicly
available, copies of each annual report, proxy or financial statement or other
report or communication sent to the stockholders of the Company, and copies of
all annual, regular, periodic and special reports and registration statements
which the Company may file or be required to file with the SEC under Section 13
or 15(d) of the Securities Exchange Act of 1934, and not otherwise
required to be delivered to the Administrative Agent pursuant hereto;

 

(d)                               promptly after the furnishing thereof,
copies of any statement or report furnished to any holder of debt securities of
any Loan Party or any Subsidiary thereof pursuant to the terms of any
indenture, loan or credit or similar agreement and not otherwise required to be
furnished to the Lenders pursuant to Section 6.01 or any other clause
of this Section 6.02; and

 

(e)                                promptly, and in any event within five
Business Days after receipt thereof by any Loan Party or any Subsidiary
thereof, copies of each notice or other correspondence received from the SEC
(or comparable agency in any applicable non-U.S. jurisdiction) concerning any
investigation or possible investigation or other inquiry by such agency
regarding financial or other operational results of any Loan Party or any
Subsidiary thereof; and

 

(f)                                 promptly, such additional information
regarding the business, financial or corporate affairs of the Company or any
Subsidiary, or compliance with the terms of the Loan Documents, as the
Administrative Agent or any Lender may from time to time reasonably request.

 

Documents required to be delivered pursuant to Section 6.01(a) or
(b) or Section 6.02(c) (to the extent any such
documents are included in materials otherwise filed with the SEC) may be
delivered electronically and if so delivered, shall be deemed to have been
delivered on the date (i) on which the Company posts such documents, or
provides a link thereto on the Company’s website on the Internet at the website
address listed on Schedule 10.02; or (ii) on which such documents
are posted on the Company’s behalf on an Internet or intranet website, if any,
to which each Lender and the Administrative Agent have access (whether a
commercial, 

 

87

 

third-party website or
whether sponsored by the Administrative Agent); provided that: (i) the
Company shall deliver paper copies of such documents to the Administrative
Agent (with sufficient copies for any requesting Lender) for the Administrative
Agent or any Lender that requests the Company to deliver such paper copies
until a written request to cease delivering paper copies is given by the
Administrative Agent or such Lender and (ii) the Company shall notify the
Administrative Agent (by telecopier or electronic mail) of the posting of any
such documents and provide to the Administrative Agent by electronic mail
electronic versions (i.e., soft copies) of such documents.  Notwithstanding anything contained herein, in
every instance the Company shall be required to provide paper copies of the
Compliance Certificates required by Section 6.02(b) to the
Administrative Agent.  Except for such
Compliance Certificates, the Administrative Agent shall have no obligation to
request the delivery or to maintain copies of the documents referred to above,
and in any event shall have no responsibility to monitor compliance by the
Company with any such request for delivery, and each Lender shall be solely
responsible for requesting delivery to it or maintaining its copies of such
documents.

 

Each Borrower hereby acknowledges that (a) the
Administrative Agent and/or the Arrangers will make available to the Lenders
and the L/C Issuers materials and/or Information provided by or on behalf of
the Borrowers hereunder (collectively, “Borrower Materials”) by posting
the Borrower Materials on IntraLinks or another similar electronic system (the “Platform”)
and (b) certain of the Lenders (each, a “Public Lender”) may have
personnel who do not wish to receive material non-public information with
respect to any of the Borrowers or their respective Affiliates, or the
respective securities of any of the foregoing, and who may be engaged in
investment and other market-related activities with respect to such Persons’
securities.  Each Borrower hereby agrees
that (w) all Borrower Materials that are to be made available to Public Lenders
shall be clearly and conspicuously marked “PUBLIC” which, at a minimum, shall
mean that the word “PUBLIC” shall appear prominently on the first page thereof;
(x) by marking Borrower Materials “PUBLIC”, each Borrower shall be deemed
to have authorized the Administrative Agent, the Arrangers, the L/C Issuers and
the Lenders to treat such Borrower Materials as not containing any material
non-public information with respect to such Borrower or its securities for
purposes of United States Federal and state securities laws (provided, however,
that to the extent such Borrower Materials constitute Information, they shall
be treated as set forth in Section 10.07); (y) all Borrower
Materials marked “PUBLIC” are permitted to be made available through a portion
of the Platform designated “Public Side Information”; and (z) the
Administrative Agent and the Arrangers shall be entitled to treat any Borrower
Materials that are not marked “PUBLIC” as being suitable only for posting on a
portion of the Platform not designated “Public Side Information”.  Notwithstanding the foregoing, no Borrower
shall be under any obligation to mark any Borrower Materials “PUBLIC.”

 

6.03                        Notices.  Promptly notify the Administrative Agent and each
Lender:

 

(a)                               of the occurrence of any Default;

 

(b)                               of any matter that has resulted or could
reasonably be expected to result in a Material Adverse Effect, including (i) breach
or non-performance of, or any default under, a Contractual Obligation of the
Company or any Subsidiary; (ii) any dispute, litigation, investigation,
proceeding or suspension between the Company or any Subsidiary and any 

 

88

 

Governmental Authority;
or (iii) the commencement of, or any material development in, any
litigation or proceeding affecting the Company or any Subsidiary, including
pursuant to any applicable Environmental Laws;

 

(c)                                of the occurrence of any ERISA Event that
has resulted in, or could reasonably be expected to result in, liability of any
Borrower or any ERISA Affiliate in an aggregate amount in excess of the
Threshold Amount; and

 

(d)                               of any material change in accounting
policies or financial reporting practices by the Company or any Subsidiary, including any
determination by the Company referred to in Section 2.10(b).

 

Each notice pursuant to this Section 6.03
shall be accompanied by a statement of a Responsible Officer of the Company
setting forth details of the occurrence referred to therein and stating what
action the Company has taken and proposes to take with respect thereto.  Each notice pursuant to Section 6.03(a) shall
describe with reasonable particularity any and all provisions of this Agreement
and any other Loan Document that have been breached.

 

6.04                        Payment of Obligations.  Pay and discharge as the same shall become due and
payable, all its obligations and liabilities, including (a) all tax
liabilities, assessments and governmental charges or levies upon it or its
properties or assets, unless (i) the same are being contested in good faith by
appropriate proceedings diligently conducted, (ii) adequate reserves in
accordance with GAAP are being maintained by the Company or such Subsidiary,
and (iii) the failure to make such payment pending such contest could not
reasonably be expected to result in a Material Adverse Effect; (b) all
lawful claims which, if unpaid, would by law become a Lien upon its property,
unless (i) the same are being contested in good faith be appropriate
proceedings diligently conducted, (ii) adequate reserves in accordance with
GAAP are being maintained by the Company or such Subsidiary and (iii) the
failure to make such payment pending such contest could not reasonably be
expected to result in a Material Adverse Effect; and (c) all Indebtedness
(other than Indebtedness the non-payment of which would not violate Section 8.01(e)),
as and when due and payable, but subject to any subordination provisions
contained in any instrument or agreement evidencing such Indebtedness.

 

6.05                        Preservation of Existence,
Etc.  (a) Except as contemplated by Schedule 7.18,
preserve, renew and maintain in full force and effect its legal existence and
good standing under the Laws of the jurisdiction of its organization except in
a transaction permitted by Section 7.04 or 7.05; (b) take
all reasonable action to maintain all rights, privileges, permits, licenses and
franchises necessary or desirable in the ordinary course of its business,
except to the extent that failure to do so could not reasonably be expected to
have a Material Adverse Effect; and (c) preserve or renew all of its
registered patents, trademarks, trade names and service marks, the
non-preservation of which could reasonably be expected to have a Material
Adverse Effect.  Notwithstanding anything
to the contrary contained in this Agreement, the Company and its Subsidiaries
may consummate the Transaction, including, without limitation, the Merger and
all changes of organizational name and organizational structure relating
thereto and contemplated thereby.

 

89

 

6.06                        Maintenance of Properties.  (a) Maintain, preserve and protect all of its
material properties and equipment necessary in the operation of its business in
good working order and condition, ordinary wear and tear excepted; and (b) make
all necessary repairs thereto and renewals and replacements thereof except, in
the case of each of clause (a) and (b), where the failure to
do so could not reasonably be expected to have a Material Adverse Effect.

 

6.07                        Maintenance of Insurance.  Maintain with financially sound and reputable
insurance companies not Affiliates of the Company (other than PCIC providing errors and
omissions insurance covering such loss or damage, in such amounts and
structured with reinsurance and supplemental coverage as is materially
equivalent to the coverage in effect on the Initial Funding Date or in amounts
or with program structures which provide such coverage as is customarily
carried by Persons in the same or similar business or in amounts or with
program structures which provide such coverage as is customarily carried by
Persons in the same or similar business) insurance with respect to its properties and business
against loss or damage of the kinds customarily insured against by Persons
engaged in the same or similar business, of such types and in such amounts
(after giving effect to any self-insurance compatible with the following
standards) as are customarily carried under similar circumstances by such other
Persons  and endeavoring to provide for not
less than 30 days’ prior notice to the Administrative Agent of termination,
lapse or cancellation of such insurance (or for ten (10) days’ prior
notice in the case of termination, lapse or cancellation of such insurance by
reason of nonpayment).

 

6.08                        Compliance with Laws.  Comply in all material respects with the requirements
of all Laws and all orders, writs, injunctions and decrees, in each case,
applicable to it or to its business or property, except in such instances in
which (a) such requirement of Law or order, writ, injunction or decree is
being contested in good faith by appropriate proceedings diligently conducted;
or (b) the failure to comply therewith, either individually or in the
aggregate, could not reasonably be expected to have a Material Adverse Effect.

 

6.09                        Books and Records.  Maintain books of record and account, in which full,
true and correct entries in conformity with GAAP consistently applied shall be
made of all financial transactions and matters involving the assets and
business of the Company or such Subsidiary, as the case may be.

 

6.10                        Inspection Rights.  Permit representatives and independent contractors of
the Administrative Agent and each Lender to visit and inspect any of its
properties, to examine its corporate, financial and operating records, and make
copies thereof or abstracts therefrom, and to discuss its affairs, finances and
accounts with its directors, officers, and independent public accountants, all
at such reasonable times during normal business hours and as often as may be
reasonably desired, upon reasonable advance notice to the Company; provided,
however, that so long as no Event of Default has occurred and is
continuing, the Company shall only be required to reimburse the Administrative
Agent and the Lenders for the cost of once such visit and examination per
fiscal year of the Company; provided  further that when an Event
of Default exists the Administrative Agent or any Lender (or any of their
respective representatives or independent contractors) may do any of the
foregoing at the expense of the Company at any time during normal business
hours and without advance notice.

 

90

 

6.11                        Additional Subsidiary Guarantors. 
Notify the Administrative Agent at the time that any Person becomes a Domestic
Subsidiary, and promptly thereafter (and in any event within 60  days), cause such Person to (i) become a Subsidiary
Guarantor by executing and delivering to the Administrative Agent a Subsidiary
Guaranty Joinder Agreement or such other documents as the Administrative Agent
shall deem appropriate for such purpose, and (ii) deliver to the
Administrative Agent documents of the types referred to in clauses (iii) and
(iv) of Section 4.01(a) and favorable opinions of
counsel to such Person (which shall cover, among other things, the legality,
validity, binding effect and enforceability of the documentation referred to in
clause (i)), all in form, content and scope reasonably satisfactory to
the Administrative Agent.

 

6.12                        Initial Funding Date. 
In the event the Initial Funding Date shall not have occurred on or
before April 30, 2010, pay (on or before April 30, 2010) any and all
accrued and unpaid fees and expenses required to be paid under this Agreement
or the Commitment Letter through such date.

 

6.13                        Senior Subordinated Notes. 
Not later than five (5) Business Days after the Initial Funding
Date, deliver or cause to be delivered to the Administrative Agent a
certificate of a Responsible Officer of the Company (a) attaching the
Final Senior Subordinated Indenture and all other final documentation for the
Senior Subordinated Notes, (b) certifying that the Final Senior
Subordinated Indenture is in substantially the form of the draft Indenture
delivered to the Arrangers on September 3, 2009 (the “Draft Indenture”)
(in any event, the Final Senior Subordinated Indenture shall not be more
adverse to the Lenders than the Draft Indenture (as determined by the Arrangers
in their sole discretion)), and which such final documentation for the Senior
Subordinated Notes shall be in form and substance reasonably satisfactory to
the Arrangers and (c) certifying as to that effectiveness of the Final
Senior Subordinated Indenture and the funding of the Senior Subordinated Notes
substantially simultaneously with the closing thereof.

 

6.14                        Additional Equity Interests.  Subject to Section 6.16, notify
the Administrative Agent at the time the Company or any Domestic Subsidiary acquires an Equity Interest of TP
Luxembourg, and promptly thereafter (and in any event within 60  days), cause the Company or such Domestic Subsidiary, as applicable, to enter into a Pledge Joinder
Agreement pursuant to which the Company or such Domestic Subsidiary, as applicable, shall pledge its then owned Pledged
Interests.

 

6.15                        Further Assurances.  Take, and
cause each other Loan Party to take, such actions as are necessary or as the
Administrative Agent or the Required Lenders may reasonably request from time
to time to ensure that the Obligations of each Loan Party under the Loan
Documents are secured by the Collateral Documents, including (a) the
execution and delivery of Collateral Documents and the filing or recording
thereof and (b) the delivery of certificated securities and other
collateral with respect to which perfection is obtained by possession.

 

6.16                        Foreign Subsidiary Ownership. 
Cause TP Luxembourg to be owned directly by the Company or any Domestic
Subsidiary of the Company (or a combination thereof).

 

91

 

ARTICLE VII.

NEGATIVE COVENANTS

 

So long as any Lender shall have any Commitment
hereunder, any Obligation hereunder shall remain unpaid or unsatisfied, or any
Letter of Credit shall remain outstanding (other than indemnities and
other similar contingent obligations surviving the termination of this
Agreement for which no claim has been made and which are unknown and not
calculable at the time of termination and those obligations under any Swap Contract), the Company shall not, nor shall it
permit any Subsidiary to, directly or indirectly:

 

7.01                        Liens.  On or after the Signing Date, create, incur, assume or
suffer to exist any Lien upon any of its property, assets or revenues, whether
now owned or hereafter acquired, other than the following:

 

(a)                               Liens pursuant to any Loan Document;

 

(b)                               Liens existing on the date hereof and
listed on Schedule 7.01 and any renewals or extensions thereof, provided
that (i) the property covered thereby is not changed, (ii) the amount
secured or benefited thereby is not increased except as contemplated by Section 7.03(c),
(iii) the direct or any contingent obligor with respect thereto is not
changed, and (iv) any renewal or extension of the obligations secured or
benefited thereby is permitted by Section 7.03(c);

 

(c)                                Liens for taxes not yet due or which are
being contested in good faith and by appropriate proceedings diligently
conducted, if adequate reserves with respect thereto are maintained on the
books of the applicable Person in accordance with GAAP;

 

(d)                               carriers’, warehousemen’s, mechanics’,
materialmen’s, repairmen’s or other like Liens arising in the ordinary course
of business which are not overdue for a period of more than 30 days or which
are being contested in good faith and by appropriate proceedings diligently
conducted, if adequate reserves with respect thereto are maintained on the
books of the applicable Person;

 

(e)                                pledges or deposits in the ordinary
course of business in connection with workers’ compensation, unemployment
insurance and other social security legislation, other than any Lien imposed by
ERISA;

 

(f)                                 Liens and deposits to secure the
performance of bids, trade contracts and leases (other than Indebtedness),
statutory obligations, surety and appeal bonds, performance bonds and other
obligations of a like nature incurred in the ordinary course of business;

 

(g)                                easements, rights-of-way, restrictions
and other similar encumbrances affecting real property which, in the aggregate,
are not substantial in amount, and which do not in any case materially detract
from the value of the property subject thereto or materially interfere with the
ordinary conduct of the business of the applicable Person;

 

(h)                               Liens securing judgments for the payment
of money not constituting an Event of Default under Section 8.01(h);

 

92

 

(i)                                   any interest or title of a lessor under,
and Liens arising from Uniform Commercial Code financing statements (or
equivalent filings, registration or agreements in foreign
jurisdictions) relating to, leases that are not capital leases;

 

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

 

(k)          Liens of a collection bank arising under Section 4-
210 of the UCC on items in the course of collection;

 

(l)                                   Liens deemed to exist in connection with
Investments in repurchase agreements that constitute Permitted Investments;

 

(m)         Liens of the Administrative Agent for the
benefit of the Administrative Agent and the Lenders;

 

(n)          Liens securing Indebtedness permitted
under Section 7.03(h); provided that (i) such Liens do
not at any time encumber any property other than the property financed by such
Indebtedness and (ii) the Indebtedness secured thereby does not exceed the
cost or fair market value, whichever is lower, of the property being acquired
on the date of acquisition;

 

(o)          Liens to secure Indebtedness permitted by
Section 7.03(j) and Section 7.03(k);

 

(p)          Liens securing Acquired Indebtedness
permitted under Section 7.03(l); provided that (i) such
Liens do not at any time encumber any property other than the property financed
by such Indebtedness and (ii) the Indebtedness secured thereby does not
exceed the cost or fair market value, whichever is lower, of the property being
acquired on the date of acquisition;

 

(q)                               extensions, renewals, or replacements of
any Lien referred to in Section 7.01(c) through 7.01(p);
provided, that the principal amount of the Indebtedness secured thereby
is not increased and that any such extension, renewal or replacement is limited to the assets originally encumbered
thereby.

 

7.02                        Investments.  Make any Investments, except:

 

(a)          Investments existing on the Signing Date
(other than Permitted Investments and Investments permitted by Section 7.02(d))
and set forth on Schedule 7.02 and extensions
and renewals thereof; provided that (i) the amount of such
Investment is not increased at the time of such extension or renewal, and (ii) the
terms of such renewal or extension taken as a whole, and of any agreement
entered into and of any instrument issued in connection therewith, are no less
favorable in any material respect to the Loan Parties or the Lenders than the
terms of any agreement or instrument governing the Investment being extended or
renewed;

 

(b)                               Investments held by the Company or such
Subsidiary in the form of cash equivalents and other Permitted Investments;

 

93

 

(c)                                Loans or advances to officers, directors
and employees of the Company and its Subsidiaries in an aggregate amount not to
exceed $5,000,000 at any time outstanding, made in the ordinary course of
business;

 

(d)                               (i) Investments of the Company or
any Subsidiary Guarantor in the Company or any Subsidiary Guarantor, and (ii) Investments
of the Company or any Subsidiary Guarantor in any Designated Borrower that is a
Foreign Subsidiary or in TP Luxembourg; provided that the amount of
Investments permitted by this Section 7.02(d)(ii), when taken
together with (x) any Investments of any Loan Party in any Subsidiary that
is not a Loan Party (other than TP Luxembourg) and any Investments of TP
Luxembourg in any Subsidiary that is not a Loan Party permitted by Section 7.02(i) and
(y) any Indebtedness of any Designated Borrower that is a Foreign
Subsidiary or of TP Luxembourg owing to the Company and any Subsidiary
Guarantor permitted by Section 7.03(k)(iii), shall not exceed
$50,000,000 in the aggregate at any time outstanding;

 

(e)                                Investments of any Subsidiary that is not
a Loan Party (other than TP Luxembourg) in any other Subsidiary that is not a
Loan Party (other than TP Luxembourg);

 

(f)                                 Investments consisting of extensions of
credit in the nature of accounts receivable or notes receivable arising from
the grant of trade credit in the ordinary course of business, and Investments
received in satisfaction or partial satisfaction thereof from financially
troubled account debtors to the extent reasonably necessary in order to prevent
or limit loss;

 

(g)                                Guarantees permitted by Section 7.03;

 

(h)                               transactions in connection with Swap
Contracts permitted by Section 7.03(g);

 

(i)                                   (i) Investments of any Loan Party in
any Subsidiary that is not a Loan Party (other than TP Luxembourg), and (ii) Investments
of TP Luxembourg in any Subsidiary that is not a Loan Party; provided
that the amount of Investments permitted by this Section 7.02(i),
when taken together with (x) any Investments of the Company and any
Subsidiary Guarantor in any such Designated Borrower that is a Foreign
Subsidiary or in TP Luxembourg permitted by Section 7.02(d)(ii) and
(y) any Indebtedness of any Designated Borrower that is a Foreign
Subsidiary or of TP Luxembourg owing to the Company and any Subsidiary
Guarantor permitted by Section 7.03(k)(iii), shall not exceed
$50,000,000 in the aggregate at any time outstanding;

 

(j)                                  (i) Investments of a Foreign
Subsidiary (other than TP Luxembourg) (except as may be restricted by Section 7.02(i))
in the Company or another Subsidiary; and (ii) Investments of TP
Luxembourg in the Company or any Subsidiary Guarantor;

 

(k)                               the purchase or other acquisition of all
of the Equity Interests in, or all or substantially all of the property of, any
Person (or any division or other business unit of such Person) that, upon the
consummation thereof, will be wholly-owned directly by the Company or one or
more of its wholly-owned Subsidiaries (including as a result of a merger or
consolidation); provided that, with respect to each purchase or other
acquisition made pursuant to this Section 7.02(k);

 

94

 

(i)                                     any such newly-created or acquired
Subsidiary that is a Domestic Subsidiary shall comply with the requirements of Section 6.11;

 

(ii)                                  the lines of business of the Person to be
(or the property of which is to be) so purchased or otherwise acquired shall be
substantially the same lines of business as one or more of the principal
businesses of the Borrower and its Subsidiaries in the ordinary course;

 

(iii)                               in the case of the purchase or other
acquisition of the Equity Interests in, or all of substantially all of the
property of any Person, the board of directors (or other comparable governing
body) of such Person shall have duly approved such purchase or other
acquisition; and

 

(iv)                              (A) immediately before and
immediately after giving pro forma effect to any such purchase or other
acquisition, no Default shall have occurred and be continuing, and (B) immediately
after giving pro forma effect to such purchase or other acquisition, the
Company and its Subsidiaries shall demonstrate a Consolidated Leverage Ratio of
less than 2.00 to 1.00, such compliance to be determined on the basis of the
financial information most recently delivered to the Administrative Agent and
the Lenders pursuant to Section 6.01(a) or (b) as
though such purchase or other acquisition had been consummated as of the first
day of the fiscal period covered thereby;

 

(l)                                   Dispositions permitted by Sections 7.05(d), 7.05(g), 7.05(h),
7.05(i) and 7.05(j); and

 

(m)                           other Investments not exceeding
$30,000,000 in the aggregate in any fiscal year of the Company.

 

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

 

(a)                               Indebtedness under the Loan Documents;

 

(b)                               Senior Note Indebtedness;

 

(c)                                Indebtedness outstanding on the Signing
Date and listed on Schedule 7.03(c) and any refinancings, refundings,
renewals or extensions thereof; provided that (i) the principal
amount (giving effect to accrued interest on any principal balance being
refinanced, refunded, renewed or extended) of such Indebtedness is not
increased at the time of such refinancing, refunding, renewal or extension
except by an amount equal to a reasonable premium or other reasonable amount
paid, and fees and expenses reasonably incurred, in connection with such
refinancing and by an amount equal to any existing commitments unutilized
thereunder and (ii) the terms relating to principal amount, amortization,
maturity, collateral (if any) and subordination (if any), and other material
terms taken as a whole, of any such refinancing, refunding, renewing or
extending Indebtedness, and of any agreement entered into and of any instrument
issued in connection therewith, are no less favorable in any material respect
to the Loan Parties or the Lenders than the terms of any agreement or
instrument governing the Indebtedness being refinanced, refunded, renewed or
extended and the interest rate applicable to 

 

95

 

any such refinancing,
refunding, renewing or extending Indebtedness does not exceed the then
applicable market interest rate;

 

(d)                               (i) Guarantees of the Company or any
Subsidiary Guarantor in respect of Indebtedness otherwise permitted hereunder
of the Company or of any Subsidiary Guarantor; (ii) Guarantees by the
Company or any Subsidiary Guarantor in respect of Indebtedness otherwise permitted
hereunder of any Designated Borrower that is a Foreign Subsidiary or of TP
Luxembourg; and (iii) to the extent not permitted by clause (i) or (ii) of
this Section 7.03(d), Guarantees by any Subsidiary in respect of
Indebtedness of the Company or any other Subsidiary; provided, that
Guarantees by any Loan Party or by TP Luxembourg of Indebtedness of any
Subsidiary that is not Subsidiary Guarantor shall be subject to Section 7.02;

 

(e)           Guarantees
in favor of the Administrative Agent for the benefit of the Administrative
Agent and the Lenders;

 

(f)           Guarantees
of the Company and its Subsidiaries as set forth on Schedule 7.03(f),
existing on the Signing Date and incurred in connection with operating leases;

 

(g)                                obligations (contingent or otherwise) of
the Company or any Subsidiary existing or arising under any Swap Contract, provided
that (i) such obligations are (or were) entered into by such Person in the
ordinary course of business for the purpose of directly mitigating risks
associated with liabilities, commitments, investments, assets, or property held
or reasonably anticipated by such Person, or changes in the value of securities
issued by such Person, and not for purposes of speculation or taking a “market
view”; and (ii) such Swap Contract does not contain any provision
exonerating the non-defaulting party from its obligation to make payments on
outstanding transactions to the defaulting party;

 

(h)                               Indebtedness in respect of capital
leases, Synthetic Lease Obligations and purchase money obligations for fixed or
capital assets within the limitations set forth in Section 7.01(n);
provided, however, that the aggregate amount of all such
Indebtedness at any one time outstanding shall not exceed $50,000,000;

 

(i)                                   unsecured Indebtedness of the Company or
any Subsidiary Guarantor;

 

(j)                                  except as otherwise permitted by this Section 7.03,
(i) secured Indebtedness of the Company or any Subsidiary Guarantor; and (ii) Indebtedness
of Foreign Subsidiaries; provided that the aggregate amount of all such
Indebtedness permitted by this clause (ii) at any one time
outstanding shall not exceed $25,000,000; provided further that the
aggregate amount of all such Indebtedness permitted by this Section 7.03(j) at
any one time outstanding shall not exceed $100,000,000;

 

(k)                               (i) secured Indebtedness of the
Company owing to any Subsidiary Guarantor, (ii) secured Indebtedness of
any Subsidiary Guarantor owing to the Company, and (iii) Indebtedness of
any Designated Borrower that is a Foreign Subsidiary or of TP Luxembourg owing to
the Company or any Subsidiary Guarantor; provided that the amount of
Indebtedness permitted by this Section 7.03(k)(iii), when taken
together with (x) any Investments of the Company and any Subsidiary
Guarantor in any such Designated Borrower that is a Foreign Subsidiary or in TP
Luxembourg permitted by Section 7.02(d)(ii) and (y) any
Investments of any 

 

96

 

Loan Party in any
Subsidiary that is not a Loan Party (other than TP Luxembourg) and any
Investments of TP Luxembourg in any Subsidiary that is not a Loan Party
permitted by Section 7.02(i), shall not exceed $50,000,000 in the
aggregate at any time outstanding;

 

(l)                                   Indebtedness of any Person acquired in
connection with an Investment permitted by Section 7.02(k); provided
that such Indebtedness (i) is existing at the time such Person is
acquired, (ii) was not created in contemplation of such acquisition (such
Indebtedness, “Acquired Indebtedness”); provided that the aggregate
principal amount of Acquired Indebtedness shall not exceed $30,000,000 at any
time outstanding;

 

(m)         Indebtedness
payable to former employees of the Company or any Subsidiary in the ordinary
course of business consistent with past practice in connection with the
employee stock buyback program of the Company or such Subsidiary; and

 

(n)                               obligations of the Company to purchase,
redeem, retire or otherwise make any payment in respect of Class R
Restricted Holding Company Stock and Class S Restricted Holding Company
Stock (as each such term is defined in the Merger Agreement).

 

7.04                        Fundamental Changes.  Merge, dissolve, liquidate, consolidate with or into
another Person, or Dispose of (whether in one transaction or in a series of
transactions) all or substantially all of its assets (whether now owned or
hereafter acquired) to or in favor of any Person, except that, so long as no
Default exists or would result therefrom:

 

(a)                               any Subsidiary may merge with (i) the
Company, provided that the Company shall be the continuing or surviving
Person, or (ii) any one or more other Subsidiaries, provided that
when any Subsidiary Guarantor is merging with another Subsidiary, the
Subsidiary Guarantor shall be the continuing or surviving Person;

 

(b)                               any Subsidiary may Dispose of all or
substantially all of its assets (upon voluntary liquidation or otherwise) to
the Company or to another Subsidiary; provided that if the transferor in
such a transaction is a Subsidiary Guarantor, then the transferee must either
be the Company or a Subsidiary Guarantor; provided  further that
if the transferor of such property is TP Luxembourg then the transferee must be
the Company or a Subsidiary Guarantor;

 

(c)           the Company, Watson Wyatt and Towers
Perrin, whether through one or more merger Subsidiaries, may consummate the Merger
in accordance in all material respects with the Merger Agreement and may
otherwise consummate the Transaction;

 

(d)                               any Subsidiary
(other than a Subsidiary
Guarantor or a Designated Borrower) may liquidate or dissolve
if the Company determines in good faith that such liquidation or dissolution is in the best interests of the Company and
is not materially disadvantageous to the Lenders; and

 

(e)                                the Company and its Subsidiaries may Dispose of assets as permitted by Sections
7.05(d), 7.05(g), 7.05(h), 7.05(i) and 7.05(j).

 

7.05                        Dispositions.  Make any Disposition or enter into any agreement to
make any Disposition, except:

 

97

 

(a)           Dispositions of obsolete or worn out
property, whether now owned or hereafter acquired, in the ordinary course of
business;

 

(b)          Dispositions of inventory and
Permitted Investments in the ordinary course of business;

 

(c)           Dispositions of equipment or real
property to the extent that (i) such property is exchanged for credit
against the purchase price of similar replacement property or (ii) the
proceeds of such Disposition are reasonably promptly applied to the purchase
price of such replacement property;

 

(d)          Dispositions of property by any
Subsidiary to the Company or to a wholly-owned Subsidiary; provided that
if the transferor of such property is a Subsidiary Guarantor, the transferee
thereof must either be the Company or a Subsidiary Guarantor; provided  further
that if the transferor of such property is TP Luxembourg, then such transfer
shall comply with the requirements set forth in Section 7.05(i);

 

(e)           Dispositions permitted by Section 7.04;

 

(f)           non-exclusive licenses of IP Rights
in the ordinary course of business for terms not exceeding  five  years;

 

(g)          Dispositions of Intangible Assets
directly related to the Disposition of any tangible asset permitted by this Section 7.05;

 

(h)          Dispositions of Intangible Assets by
the Company, Subsidiary Guarantors and TP Luxembourg to any Foreign Subsidiary;
provided that (i) the aggregate book value of all such Intangible Assets
Disposed of in reliance on this clause (h) during the term of this
Agreement shall not exceed $200,000,000 and (ii)(x) if the transferee of
such Intangible Asset is a first-tier Foreign Subsidiary (other than TP
Luxembourg), the holders of Equity Interests in such Foreign Subsidiary shall
pledge 65% of the Voting Interests of such Foreign Subsidiary (or if the
relevant Person shall own less than 65% of such Voting Interests, then 100% of
the Voting Interests of such Foreign Subsidiary owned by such Person so long as
the aggregate amount of such Voting Interests of such Foreign Subsidiary
pledged by the Company and its Subsidiaries does not exceed 65% of the
aggregate amount of such Voting Interests of) and 100% of the nonvoting Equity
Interests (at all times exclusive of the meaning of “stock entitled
to vote” as described in Treasury Regulation Section 1.956-2(c)(2)) of such Foreign Subsidiary, and (y) if
the transferee of such Intangible Asset is not a first-tier Foreign Subsidiary,
the holders of Equity Interests in the first-tier Foreign Subsidiary (other
than TP Luxembourg) that is the direct or indirect parent of such Foreign
Subsidiary shall pledge 65% of the Voting Interests of such Foreign Subsidiary
(or if the relevant Person shall own less than 65% of such Voting Interests,
then 100% of the Voting Interests of such Foreign Subsidiary owned by such
Person so long as the aggregate amount of such Voting Interests of such Foreign
Subsidiary pledged by the Company and its Subsidiaries does not exceed 65% of
the aggregate amount of such Voting Interests of) and 100% of the nonvoting
Equity Interests (at all times exclusive of the meaning of “stock
entitled to vote” as described in Treasury Regulation Section 1.956-2(c)(2))
of such Foreign
Subsidiary;

 

98

 

(i)            Dispositions of tangible assets by
the Company and its Subsidiaries to any Subsidiary; provided that (i) at
the time of such Disposition, no Default shall exist or would result from such
Disposition and (ii) after giving effect to any such Disposition and all
other permitted Dispositions, (A) the Company, Subsidiary Guarantors and TP
Luxembourg (on an unconsolidated basis) own at least 60% of the Consolidated
Tangible Assets of the Company and its Subsidiaries and (B) the Company,
Subsidiary Guarantors and TP Luxembourg (on an unconsolidated basis) represent
at least of 60% of total revenues of the Company and its Subsidiaries
(calculated on a consolidated basis for the most recent period for which
financial statements are available); for the avoidance of doubt, reference
herein to TP Luxembourg on an unconsolidated basis specifically means without
consolidating the tangible assets or total revenues of any of its directly or
indirectly owned Subsidiaries; and

 

(j)            Dispositions of tangible assets by
the Company and its Subsidiaries not otherwise permitted under this Section 7.05;
provided that (i) at the time of such Disposition, no Default shall
exist or would result from such Disposition, (ii) the aggregate book value
of all such tangible assets Disposed of in reliance on this clause (j) during
the term of this Agreement shall not exceed 10% of the amount of Consolidated
Tangible Assets  of the Company and its
Subsidiaries  as of the Initial Funding Date;
and (iii) after giving effect to any such Disposition and all other
permitted Dispositions, (A) the Company, Subsidiary Guarantors and TP
Luxembourg (on an unconsolidated basis) own at least 60% of the Consolidated
Tangible Assets of the Company and its Subsidiaries and (B) the Company,
Subsidiary Guarantors and TP Luxembourg (on an unconsolidated basis) represent
at least of 60% of total revenues of the Company and its Subsidiaries
(calculated on a consolidated basis for the most recent period for which
financial statements are available); for the avoidance of doubt, reference
herein to TP Luxembourg on an unconsolidated basis specifically means without
consolidating the tangible assets or total revenues of any of its directly or
indirectly owned Subsidiaries;

 

provided, however, that any Disposition
pursuant to clauses (a), (b), (c), (e), (f) and
(j) shall be for fair market value.

 

7.06        Restricted Payments.  Declare or make, directly or indirectly, any
Restricted Payment, or incur any obligation (contingent or otherwise) to do so,
except that, so long as no Default shall have occurred and be continuing at the
time of any action described below or would result therefrom:

 

(a)           each Subsidiary may make Restricted
Payments to the Company, any other Subsidiary and any other Person that owns an
Equity Interest in such Subsidiary, ratably according to their respective
holdings of the type of Equity Interest in respect of which such Restricted
Payment is being made;

 

(b)          the Company and each Subsidiary may
declare and make dividend payments or other distributions payable solely in the
common stock or other common Equity Interests of such Person;

 

(c)           the Company and each Subsidiary may
purchase, redeem or otherwise acquire Equity Interests issued by it with the
proceeds received from the substantially concurrent issue of new shares of its
common stock or other common Equity Interests;

 

99

 

(d)          cash dividends and distributions paid
and payable on the stock of the Company, Watson Wyatt and Towers Perrin; and

 

(e)           repurchases and redemptions of the
stock of the Company, Watson Wyatt and Towers Perrin;

 

provided, that in the case of clauses ( d) and (e) above,
(i) immediately before and immediately after giving effect to any such
Restricted Payment, no Default shall have occurred and be continuing, and (ii) immediately
after giving pro forma effect to any such Restricted Payment, other than a
quarterly cash dividend under clause (d) above payable in the
ordinary course of business, and any Indebtedness incurred to fund such
Restricted Payment, the Company and its Subsidiaries shall demonstrate a
Consolidated Leverage Ratio of less than 2.00 to 1.00, such compliance to be
determined on the basis of the financial information most recently delivered to
the Administrative Agent and the Lenders pursuant to Section 6.01(a) or
(b) as though such Restricted Payment had been made as of the last
day of the fiscal period covered thereby.

 

7.07        Change in Nature of Business.  Engage in any material line of business substantially
different from those lines of business conducted by the Company and its
Subsidiaries on the date hereof or any business reasonably related or
incidental thereto.

 

7.08        Transactions with Affiliates.  Enter into any transaction of any kind with any
Affiliate of the Company, whether or not in the ordinary course of business,
other than on fair and reasonable terms substantially as favorable to the
Company or such Subsidiary as would be obtainable by the Company or such
Subsidiary at the time in a comparable arm’s length transaction with a Person
other than an Affiliate, provided that the foregoing restriction shall not
apply to (i) transactions between or among the Company and/or its
Subsidiaries as permitted by this Agreement, (ii) Restricted Payments
permitted to be made or paid pursuant to this Agreement, (iii) payment of
employees in accordance with past practices or as approved by the board of
directors or comparable governing body of the Company or any Subsidiary, (iv) provision of financial and other services and
the sharing of know- how, technology and office space in the ordinary course of
business, (v) indemnification agreements between the Company or any
Subsidiary and its officers, directors, and certain other employees relating to
such Person’s service or employment, as applicable, and (vi) any aspect of
the Transaction, including, without limitation, the Merger.

 

7.09        Burdensome Agreements.  On and after the Initial Funding Date, enter into any
Contractual Obligation (other than this Agreement or any other Loan Document)
that (a) limits the ability (i) of any Subsidiary to make Restricted
Payments to the Company or any Subsidiary Guarantor or to otherwise transfer
property to the Company or any Subsidiary Guarantor, (ii) of any
Subsidiary to Guarantee the Indebtedness of the Company or (iii) of the
Company or any Subsidiary to create, incur, assume or suffer to exist Liens on
property of such Person; provided, however, that this clause (iii) shall
not prohibit any negative pledge incurred or provided in favor of any holder of
Indebtedness permitted under Section 7.03(h) solely to the
extent any such negative pledge relates to the property financed by or the
subject of such Indebtedness; or (b) requires the grant of a Lien to
secure an obligation of such Person if a Lien is granted to secure another
obligation of such Person; provided, that the foregoing
shall not apply to 

 

100

 

restrictions or conditions imposed by law or by this
Agreement or any other Loan Document, nor to transactions permitted expressly
by the terms of this Agreement or the other Loan Documents.

 

7.10        Use of Proceeds.  (a) Use the proceeds of any Credit Extension,
whether directly or indirectly, and whether immediately, incidentally or
ultimately, to purchase or carry margin stock (within the meaning of Regulation
U of the FRB) or to extend credit to others for the purpose of purchasing or
carrying margin stock or to refund indebtedness originally incurred for such
purpose; or (b) use the proceeds of the Credit Extensions other than (i) for
the Existing Debt Retirement, (ii) to finance the costs and expenses of
the Transaction and certain other costs and expenses, (iii) to finance
payments to retiring shareholders related to the Merger, (iv) to finance
the repurchase of shares of capital stock of Watson Wyatt, Towers Perrin and
the Company, (v) to finance Permitted Acquisitions and other acquisitions
permitted by this Agreement, (vi) to repay the Senior Subordinated Notes,
and (vii) to finance ongoing working capital and other general corporate
or business purposes of the Company and its Subsidiaries after consummation of
the Merger; in each case, not in contravention (x) of any Loan Document or
(y) in any material respect of any applicable Law.

 

7.11        Sale and Leaseback Transactions.  Enter into any arrangement, directly or indirectly,
whereby it shall sell or transfer any property, real or personal, used or
useful in its business, whether now owned or hereinafter acquired, and
thereafter rent or lease such property or other property that it intends to use
for substantially the same purpose or purposes as the property sold or
transferred.

 

7.12        Amendment to Material Documents.  Amend, modify or waive any of its rights in a manner
materially adverse to the Lenders under (a) its Organization Documents
(other than in connection with the consummation of the Transaction) or (b) any
Contractual Obligation, if any, disclosed by the Company in filings with the
SEC.

 

7.13        Modification
of Certain Documents.  Amend, modify, terminate or change in any
manner any term or condition of the Merger Agreement, the Final Senior
Subordinated Indenture, the Senior Subordinated Notes (or any refinancing
thereof), in each case, so that the terms and conditions thereof are less
favorable in any material respect to the Administrative Agent, the Lenders and
the L/C Issuers than the terms and conditions of the relevant documents as
of the Initial Funding Date.

 

7.14        Company
Activities.  At any time before the Initial Funding
Date, with respect to the Company only, engage in any business activity other
than (i) maintaining its legal existence and good standing, (ii) consummating
the Transaction and business activities incidental and reasonably related
thereto and (iii) owning Equity Interests in Subsidiaries subject to this Section 7.14.

 

7.15        Financial Covenants.

 

(a)           Consolidated Interest Coverage
Ratio.  Permit the Consolidated
Interest Coverage Ratio as of the end of any period of four consecutive fiscal
quarters of the Company to be less than 3.00 to 1.00.

 

101

 

(b)          Consolidated Leverage Ratio.  Permit the Consolidated Leverage Ratio as of
the end of any period of four consecutive fiscal quarters of the Company to be
more than 2.50 to 1.00.

 

7.16        Approvals and Authorizations. 
Fail to maintain all material authorizations, consents, approvals and
licenses from, exemptions of, and filings and registrations with, each
Governmental Authority of the jurisdiction in which each Foreign Obligor is
organized and existing, and all approvals and consents of each other Person in
such jurisdiction, in each case that are required in connection with the Loan
Documents.

 

7.17        Changes in Accounting Practices. 
Make any change in (a) fiscal year or (b) accounting policies
or reporting practices, except (i) as required by GAAP or (ii) as related
to the conformance of accounting policies or reporting practices resulting from
the Transaction; provided, however, that if any such change in
the accounting policies would affect the computation of any financial ratio or
requirement set forth in any Loan Document, and either the Company or the
Required Lenders shall so request, the Administrative Agent, the Lenders and
the Company shall negotiate in good faith to amend such ratio or requirement to
preserve the original intent thereof in light of such change in accounting
policy or reporting practice (subject to the approval of the Required Lenders,
not to be unreasonably withheld, conditioned or delayed); provided  further
that, until so amended, (x) such ratio or requirement shall continue to be
computed in accordance with the accounting policies and reporting practices in
effect prior to such change therein and (y) the Company shall provide to
the Administrative Agent and the Lenders financial statements and other
documents required under this Agreement or as reasonably requested hereunder
setting forth a reconciliation between calculations of such ratio or
requirement made before and after giving effect to such change in accounting
policy or reporting practice.

 

7.18        Post-Funding Deliveries. 
Fail to satisfy any of the requirements set forth on Schedule 7.18
within the time period specified therein.

 

ARTICLE VIII.

EVENTS OF DEFAULT AND REMEDIES

 

8.01        Events of Default.  Any of the following shall constitute an
Event of Default:

 

(a)           Non-Payment.  Any Borrower or any other Loan Party fails to
pay (i) when and as required to be paid herein, and in the currency
required hereunder, any amount of principal of any Loan or any L/C Obligation,
or (ii) within five (5) Business Days after the same becomes due, any
interest on any Loan or on any L/C Obligation, or any fee due hereunder, or (iii) within
five (5) Business Days after the same becomes due, any other amount
payable hereunder or under any other Loan Document; or

 

(b)          Specific Covenants.  The Company fails to perform or observe any
term, covenant or agreement contained in any of Section 6.01, 6.02, 6.03, 6.05(a) (with
respect to the existence of each Loan Party), 6.10, 6.11, 6.14
or 6.16 or Article VII; or

 

102

 

(c)           Other Defaults.  Any Loan Party fails to perform or observe
any other covenant or agreement (not specified in subsection (a) or
(b) above) contained in any Loan Document on its part to be
performed or observed and such failure continues for 30 days (other than with
respect to a failure to observe Section 6.08 and such failure
continues for 90 days, provided that (i) the Company has commenced
action to cure such Default within 30 days of such Default and (ii) such
action to cure is diligently pursued during such period) after the earlier of (x) written
notice thereof has been given by the Administrative Agent to the Company and (y) any
Responsible Officer of the Company becomes aware of such failure; or

 

(d)          Representations and Warranties.  Any representation, warranty, certification
or statement of fact made or deemed made by or on behalf of the Company or any
other Loan Party herein, in any other Loan Document, or in any document
delivered in connection herewith or therewith shall be incorrect or misleading
in any material respect (except, if a qualifier relating to materiality,
Material Adverse Effect or a similar concept applies, such representation or
warranty was incorrect or misleading in any respect when made or deemed made)
when made or deemed made, except to the extent that such
representations and warranties specifically refer to an earlier date, in which
case they are true and correct in all material respects (except, if a qualifier
relating to materiality, Material Adverse Effect or a similar concept applies,
such representation or warranty shall be required to be true and correct in all
respects) as of such earlier date; or

 

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

 

(f)           Insolvency Proceedings, Etc.  Any Loan Party or any of its Subsidiaries
institutes or consents to the institution of any proceeding under any Debtor
Relief Law, or makes an assignment for the benefit of creditors; or applies for
or consents to the appointment of any receiver, trustee, custodian,
conservator, liquidator, rehabilitator or similar officer for it or for all 

 

103

 

or any material part of
its property; or any receiver, trustee, custodian, conservator, liquidator,
rehabilitator or similar officer is appointed without the application or
consent of such Person and the appointment continues undischarged or unstayed
for 90 calendar days; or any proceeding under any Debtor Relief Law relating to
any such Person or to all or any material part of its property is instituted
without the consent of such Person and continues undismissed or unstayed for 90
calendar days, or an order for relief is entered in any such proceeding; or

 

(g)          Inability to Pay Debts; Attachment.  (i) The Company or any Subsidiary
becomes unable or admits in writing its inability or fails generally to pay its
debts as they become due, or (ii) any writ or warrant of attachment or
execution or similar process is issued or levied against all or any material
part of the property of any such Person and is not released, vacated or fully
bonded within 60 days after its issue or levy; or

 

(h)          Judgments.  There is entered against the Company or any
Subsidiary (i) one or more final judgments or orders for the payment of
money in an aggregate amount (as to all such judgments or orders) in excess of
$50,000,000 (to the extent not covered by (x) independent third-party
insurance or (y) PCIC maintained in accordance with Section 6.07,
in the case of each of clauses (x) and (y) as to which
the insurer does not dispute coverage), or (ii) any one or more
non-monetary final judgments that have, or could reasonably be expected to
have, individually or in the aggregate, a Material Adverse Effect and, in
either case, (A) enforcement proceedings are commenced by any creditor
upon such judgment or order, or (B) there is a period of 30 consecutive
days during which a stay of enforcement of such judgment, by reason of a
pending appeal or otherwise, is not in effect; or

 

(i)            ERISA.  (i) An ERISA Event occurs with respect
to a Pension Plan or Multiemployer Plan which has resulted or could reasonably
be expected to result in liability of the Company under Title IV of ERISA to
the Pension Plan, Multiemployer Plan or the PBGC in an aggregate amount in
excess of $50,000,000, or (ii) the Company or any ERISA Affiliate fails to
pay when due, after the expiration of any applicable grace period, any
installment payment with respect to its withdrawal liability under Section 4201
of ERISA under a Multiemployer Plan in an aggregate amount in excess of
$50,000,000; or

 

(j)            Invalidity of Loan Documents.  (i) Any provision of any Loan Document,
at any time after its execution and delivery and for any reason other than as
expressly permitted hereunder or thereunder or satisfaction in full of all the
Obligations (other than indemnities and other similar contingent
obligations surviving the termination of this Agreement for which no claim has
been made and which are unknown and not calculable at the time of termination
and those obligations under
any Swap Contract), ceases to be in full force and effect; or any Loan Party or any other
Person contests in any manner the validity or enforceability of any provision
of any Loan Document; or any Loan Party denies that it has any or further
liability or obligation under any Loan Document, or purports to revoke,
terminate or rescind any provision of any Loan Document, or (ii) the
subordination or standstill provisions set forth in the Senior Subordinated
Notes or the Final Senior Subordinated Indenture cease to be in full force and
effect; or

 

(k)           Change of Control.  There occurs any Change of Control.

 

104

 

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

 

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

 

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

 

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

 

(d)          exercise on behalf of itself, the
Lenders, the L/C Issuers and the Existing L/C Issuers all rights and remedies
available to it, the Lenders, the L/C Issuers and the Existing L/C Issuers
under the Loan Documents;

 

provided, however, that upon the
occurrence of an actual or deemed entry of an order for relief with respect to
any Borrower under the Bankruptcy Code of the United States in connection with
an Event of Default under Section 8.01(f), the obligation of each
Lender to make Loans and any obligation of each L/C Issuer to make L/C Credit
Extensions shall automatically terminate, the unpaid principal amount of all
outstanding Loans and all interest and other amounts as aforesaid shall
automatically become due and payable, and the obligation of the Company to Cash
Collateralize the L/C Obligations as aforesaid shall automatically become effective,
in each case without further act of the Administrative Agent or any Lender.

 

8.03        Application of Funds.  After the exercise of remedies provided for in Section 8.02
(or after the Loans have automatically become immediately due and payable and
the L/C Obligations have automatically been required to be Cash Collateralized
as set forth in the proviso to Section 8.02), any amounts received
on account of the Obligations shall, subject to the provisions of Sections
2.16 and 2.17, be applied by the Administrative Agent in the
following order:

 

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

 

Second, to payment of that portion of the Obligations
constituting reasonable fees, indemnities and other amounts (other than
principal, interest and Letter of Credit Fees) payable to the Lenders, the L/C
Issuers and the Existing L/C Issuers (including actual and reasonable fees,
charges and disbursements of counsel to the respective Lenders, the L/C Issuers
and the Existing L/C Issuers and amounts payable under Article III),
ratably among them in proportion to the respective amounts described in this
clause Second payable to them;

 

105

 

Third, to payment of that portion of the Obligations
constituting accrued and unpaid Letter of Credit Fees and interest on the
Loans, L/C Borrowings and other Obligations arising under the Loan Documents,
ratably among the Lenders, the L/C Issuers and the Existing L/C Issuers in
proportion to the respective amounts described in this clause Third
payable to them;

 

Fourth, to payment of that portion of the Obligations
constituting unpaid principal of the Loans, L/C Borrowings and Obligations then
owing under Guaranteed Hedge Agreements and Guaranteed Cash Management Agreements,
ratably among the Lenders, the L/C Issuers, the Existing L/C Issuers, the Hedge
Banks and the Cash Management Banks in proportion to the respective amounts
described in this clause Fourth held by them;

 

Fifth, to the Administrative Agent for the account of the
L/C Issuers or the Existing L/C Issuers, as applicable, to Cash Collateralize
that portion of L/C Obligations comprised of the aggregate undrawn amount of
Letters of Credit, to the extent not otherwise Cash Collateralized by the
Company pursuant to Section 2.03; and

 

Last, the balance, if any, after all of the Obligations
have been indefeasibly paid in full (other than indemnities and
other similar contingent obligations surviving the termination of this
Agreement for which no claim has been made and which are unknown and not
calculable at the time of termination and those obligations under any Swap Contract), to the Company or as otherwise required
by Law.

 

Subject to Sections 2.03(c) and 2.16,
amounts used to Cash Collateralize the aggregate undrawn amount of Letters of
Credit pursuant to clause Fifth above shall be applied to satisfy
drawings under such Letters of Credit as they occur.  If any amount remains on deposit as Cash
Collateral after all Letters of Credit have either been fully drawn or expired,
such remaining amount shall be applied to the other Obligations, if any, in the
order set forth above.

 

Notwithstanding the
foregoing, Obligations arising under Guaranteed Cash Management Agreements and
Guaranteed Hedge Agreements shall be excluded from the application described
above if the Administrative Agent has not received written notice thereof,
together with such supporting documentation as the Administrative Agent may
request, from the applicable Cash Management Bank or Hedge Bank, as the case
may be.  Each Cash Management Bank or
Hedge Bank not a party to this Agreement that has given the notice contemplated
by the preceding sentence shall, by such notice, be deemed to have acknowledged
and accepted the appointment of the Administrative Agent pursuant to the terms
of Article IX for itself and its Affiliates as if a “Lender” party
hereto.

 

ARTICLE IX.

ADMINISTRATIVE AGENT

 

9.01        Appointment and Authority.  (a)  Each of the Lenders, each L/C Issuer and
each Existing L/C Issuer hereby irrevocably appoints Bank of America to act on
its behalf as the Administrative Agent hereunder and under the other Loan
Documents and authorizes the Administrative Agent to take such actions on its
behalf and to exercise such powers as are delegated to the Administrative Agent
by the terms hereof or thereof, together with such actions 

 

106

 

and powers as are
reasonably incidental thereto.  The
provisions of this Article are solely for the benefit of the Administrative
Agent, the Lenders, the L/C Issuers and the Existing L/C Issuers, other than
the first and second sentences of Section 9.06(a), and no Borrower
shall have rights as a third party beneficiary of any of such provisions.

 

(b)          The Administrative Agent shall also
act as the “collateral agent” under the Loan Documents, and each of the Lenders
(including in its capacities as a potential Hedge Bank and a potential Cash
Management Bank), the L/C Issuers and the Existing L/C Issuers hereby
irrevocably appoints and authorizes the Administrative Agent to act as the
agent of such Lender, such L/C Issuer and such Existing L/C Issuer for purposes
of acquiring, holding and enforcing any and all Liens on the Pledged Interests
granted by any of the Loan Parties to secure any of the Obligations, together
with such powers and discretion as are reasonably incidental thereto.  In this connection, the Administrative Agent,
as “collateral agent” and any co-agents, sub-agents and attorneys-in-fact
appointed by the Administrative Agent pursuant to Section 9.05 for
purposes of holding or enforcing any Lien on the Pledged Interests (or any
portion thereof) granted under the Collateral Documents, or for exercising any
rights and remedies thereunder at the direction of the Administrative Agent),
shall be entitled to the benefits of all provisions of this Article IX
and Article X (including Section 10.04(c), as though
such co-agents, sub-agents and attorneys-in-fact were the “collateral agent”
under the Loan Documents) as if set forth in full herein with respect thereto.

 

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

 

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

 

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

 

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

 

107

 

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

 

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

 

The Administrative Agent shall not be responsible for
or have any duty to ascertain or inquire into (i) any statement, warranty
or representation made in or in connection with this Agreement or any other
Loan Document, (ii) the contents of any certificate, report or other
document delivered hereunder or thereunder or in connection herewith or
therewith, (iii) the performance or observance of any of the covenants,
agreements or other terms or conditions set forth herein or therein or the
occurrence of any Default, (iv) the validity, enforceability,
effectiveness or genuineness of this Agreement, any other Loan Document or any
other agreement, instrument or document or (v) the satisfaction of any
condition set forth in Article IV or elsewhere herein, other than
to confirm receipt of items expressly required to be delivered to the
Administrative Agent.

 

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

 

9.05        Delegation of Duties.  The Administrative Agent may perform any and all of
its duties and exercise its rights and powers hereunder or under any other Loan
Document by or through any one or more sub agents appointed by the
Administrative Agent.  The Administrative
Agent and any such sub agent may perform any and all of its duties and exercise
its rights and 

 

108

 

powers by or through
their respective Related Parties.  The
exculpatory provisions of this Article shall apply to any such sub agent
and to the Related Parties of the Administrative Agent and any such sub agent,
and shall apply to their respective activities in connection with the syndication
of the credit facilities provided for herein as well as activities as
Administrative Agent.

 

9.06        Resignation
of Administrative Agent.

 

(a)           The Administrative Agent may at any
time give notice of its resignation to the Lenders, the L/C Issuers, the
Existing L/C Issuers and the Company. 
Upon receipt of any such notice of resignation, the Required Lenders
shall have the right, subject to the approval of the Company provided that no
Event of Default has occurred and is continuing, to appoint a successor, which
shall be a bank with an office in the United States, or an Affiliate of any
such bank with an office in the United States. 
If no such successor shall have been so appointed by the Required
Lenders and shall have accepted such appointment within 30 days after the
retiring Administrative Agent gives notice of its resignation, then the
retiring Administrative Agent may on behalf of the Lenders, the L/C Issuers and
the Existing L/C Issuers, appoint a successor Administrative Agent meeting the
qualifications set forth above; provided that if the Administrative
Agent shall notify the Company and the Lenders that no qualifying Person has
accepted such appointment, then such resignation shall nonetheless become
effective in accordance with such notice and (1) the retiring
Administrative Agent shall be discharged from its duties and obligations
hereunder and under the other Loan Documents and (2) all payments,
communications and determinations provided to be made by, to or through the
Administrative Agent shall instead be made by or to each Lender, each L/C
Issuer and each Existing L/C Issuer directly, until such time as the Required
Lenders appoint a successor Administrative Agent as provided for above in this
Section.  Upon the acceptance of a
successor’s appointment as Administrative Agent hereunder, such successor shall
succeed to and become vested with all of the rights, powers, privileges and
duties of the retiring (or retired) Administrative Agent, and the retiring
Administrative Agent shall be discharged from all of its duties and obligations
hereunder or under the other Loan Documents (if not already discharged
therefrom as provided above in this Section). 
The fees payable by the Company to a successor Administrative Agent
shall be the same as those payable to its predecessor unless otherwise agreed
between the Company and such successor. 
After the retiring Administrative Agent’s resignation hereunder and
under the other Loan Documents, the provisions of this Article and Section 10.04
shall continue in effect for the benefit of such retiring Administrative Agent,
its sub agents and their respective Related Parties in respect of any actions
taken or omitted to be taken by any of them while the retiring Administrative
Agent was acting as Administrative Agent.

 

(b)          Any resignation by Bank of America as
Administrative Agent pursuant to this Section shall also constitute its
resignation as an L/C Issuer and Swing Line Lender.  Upon the acceptance of a successor’s
appointment as Administrative Agent hereunder, (a) such successor shall
succeed to and become vested with all of the rights, powers, privileges and
duties of the retiring L/C Issuer and Swing Line Lender, (b) the retiring
L/C Issuer and Swing Line Lender shall be discharged from all of their respective
duties and obligations hereunder or under the other Loan Documents, and (c) the
successor L/C Issuer shall issue letters of credit in substitution for the
Letters of Credit, if any, outstanding at the time of such succession or make
other arrangements satisfactory to the retiring L/C Issuer to effectively
assume the obligations of the retiring L/C Issuer with respect to such Letters
of Credit.

 

109

 

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

 

9.08        No Other Duties, Etc.  Anything herein to the contrary notwithstanding, none
of the Bookrunners, Arrangers, Syndication Agent or Co-Documentation Agents
listed on the cover page hereof shall have any powers, duties or
responsibilities under this Agreement or any of the other Loan Documents,
except in its capacity, as applicable, as the Administrative Agent, a Lender,
an L/C Issuer or an Existing L/C Issuer hereunder.

 

9.09        Administrative Agent May File
Proofs of Claim.  In case of the pendency of any proceeding
under any Debtor Relief Law or any other judicial proceeding relative to any
Loan Party, the Administrative Agent (irrespective of whether the principal of
any Loan or L/C Obligation shall then be due and payable as herein expressed or
by declaration or otherwise and irrespective of whether the Administrative
Agent shall have made any demand on any Borrower) shall be entitled and
empowered, by intervention in such proceeding or otherwise

 

(a)           to file and prove a claim for the
whole amount of the principal and interest owing and unpaid in respect of the
Loans, L/C Obligations and all other Obligations that are owing and unpaid and
to file such other documents as may be necessary or advisable in order to have
the claims of the Lenders, the L/C Issuers, the Existing L/C Issuers and the
Administrative Agent (including any claim for the reasonable compensation,
expenses, disbursements and advances of the Lenders, the L/C Issuers, the
Existing L/C Issuers and the Administrative Agent and their respective agents
and counsel and all other amounts due the Lenders, the L/C Issuers, the
Existing L/C Issuers and the Administrative Agent under Sections 2.03(i) and
(j), 2.09 and 10.04) allowed in such judicial proceeding;
and

 

(b)          to collect and receive any monies or
other property payable or deliverable on any such claims and to distribute the
same;

 

and any custodian, receiver, assignee, trustee,
liquidator, sequestrator or other similar official in any such judicial
proceeding is hereby authorized by each Lender, each L/C Issuer and each
Existing L/C Issuer to make such payments to the Administrative Agent and, in
the event that the Administrative Agent shall consent to the making of such
payments directly to the Lenders, the L/C Issuers and the Existing L/C Issuers,
to pay to the Administrative Agent any amount due for the reasonable
compensation, expenses, disbursements and advances of the Administrative Agent
and its agents and counsel, and any other amounts due the Administrative Agent
under Sections 2.09 and 10.04.

 

110

 

Nothing contained herein shall be deemed to authorize
the Administrative Agent to authorize or consent to or accept or adopt on
behalf of any Lender, any L/C Issuer or any Existing L/C Issuer any plan of
reorganization, arrangement, adjustment or composition affecting the
Obligations or the rights of any Lender, any L/C Issuer or any Existing L/C
Issuer to authorize the Administrative Agent to vote in respect of the claim of
any Lender, any L/C Issuer or any Existing L/C Issuer in any such proceeding.

 

9.10        Collateral and Guaranty Matters.  Each of the Lenders (including in its capacities as a
potential Hedge Bank and potential Cash Management Bank), the L/C Issuers and
the Existing L/C Issuers irrevocably authorize the Administrative Agent, at its
option and in its discretion,

 

(a)           to release any Lien on any property
granted to or held by the Administrative Agent under any Loan Document (i) upon
termination of the Aggregate Commitments and payment in full of all Obligations
(other than (A) indemnities and other similar contingent
obligations surviving the termination of this Agreement for which no claim has
been made and which are unknown and not calculable at the time of termination
and (B) obligations
and liabilities under Guaranteed Cash Management Agreements and Guaranteed
Hedge Agreements as to which arrangements satisfactory to the applicable Cash
Management Bank or Hedge Bank shall have been made) and the expiration or termination of all Letters of
Credit, (ii) that is sold or to be sold as part of or in connection with
any sale permitted hereunder or under any other Loan Document, or (iii) subject
to Section 10.01, if approved, authorized or ratified in writing by
the Required Lenders;  and

 

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

 

Upon request by the Administrative Agent at any time,
the Required Lenders will confirm in writing the Administrative Agent’s
authority to release its interest in particular types or items of property or
to release any Subsidiary Guarantor from its obligations under the Guaranty
pursuant to this Section 9.10.

 

9.11        Secured Cash Management Agreements and
Secured Hedge Agreements.  No Cash Management Bank or
Hedge Bank who obtains the benefit of the provisions of Section 8.03,
any Guaranty or any Pledged Interest by virtue of the provisions hereof or of
any Guaranty or any Collateral Document shall have any right to notice of any
action or to consent to, direct or object to any action hereunder or under any
other Loan Document or otherwise in respect of the Pledged Interests (including
the release or impairment of any Pledged Interest) other than in its capacity
as a Lender and, in such case, only to the extent expressly provided in the
Loan Documents.  Notwithstanding any
other provision of this Article IX to the contrary, the
Administrative Agent shall be required to verify the payment of, or that other
satisfactory arrangements have been made with respect to, Obligations arising
under Guaranteed Cash Management Agreements and Guaranteed Hedge Agreements
only if the Administrative Agent has received written notice of such
Obligations, together with such supporting documentation as the Administrative
Agent may request, from the applicable Cash Management Bank or Hedge Bank, as
the case may be.

 

111

 

ARTICLE X.

MISCELLANEOUS

 

10.01      Amendments, Etc.  No amendment or waiver of any provision of this
Agreement or any other Loan Document, and no consent to any departure by the
Company or any other Loan Party therefrom, shall be effective unless in writing
signed by the Required Lenders and the Company or the applicable Loan Party, as
the case may be, and acknowledged by the Administrative Agent, and each such
waiver or consent shall be effective only in the specific instance and for the
specific purpose for which given; provided, however, that no such
amendment, waiver or consent shall:

 

(a)           waive any condition set forth in Section 4.01(a),
Section 4.02 or Section 4.03 (relating to the Signing
Date or the Initial Funding Date and the initial Credit Extension), as
applicable) without the written consent of each Lender;

 

(b)          extend or increase the Commitment of
any Lender (or reinstate any Commitment terminated pursuant to Section 8.02)
without the written consent of such Lender;

 

(c)           postpone any date fixed by this
Agreement or any other Loan Document for any payment of principal, interest,
fees or other amounts due to the Lenders (or any of them) hereunder or under
any other Loan Document without the written consent of each Lender directly
affected thereby;

 

(d)          reduce the principal of, or the rate
of interest specified herein on, any Loan or L/C Borrowing, or (subject to clause
(iv) of the second proviso to this Section 10.01) any fees
or other amounts payable hereunder or under any other Loan Document without the
written consent of each Lender directly affected thereby; provided, however,
that only the consent of the Required Lenders shall be necessary (i) to
amend the definition of “Default Rate” or to waive any obligation of any
Borrower to pay interest or Letter of Credit Fees at the Default Rate or (ii) to
amend any financial covenant hereunder (or any defined term used therein) even
if the effect of such amendment would be to reduce the rate of interest on any
Loan or L/C Borrowing or to reduce any fee payable hereunder;

 

(e)           change Section 8.03 in a
manner that would alter the pro rata sharing of payments required thereby
without the written consent of each Lender;

 

(f)           amend Section 1.06 or the
definition of “Alternative Currency” without the written consent of each
Lender;

 

(g)          change any provision of this Section or
the definition of “Required Lenders” or any other provision hereof specifying
the number or percentage of Lenders required to amend, waive or otherwise
modify any rights hereunder or make any determination or grant any consent
hereunder without the written consent of each Lender; or

 

(h)          release (i) the Company from the
Company Guaranty  or release all or substantially
all of the value of the Subsidiary Guaranty  without the
written consent of each Lender, or (ii) all or substantially all of the Pledged Interests or any other collateral
securing the Obligations except with respect to Dispositions and releases of
Pledged Interests permitted or required hereunder or 

 

112

 

as
provided in the other Loan Documents, except to the extent any such release
under clause (i) or clause (ii) above is permitted
pursuant to Section 9.10 (in which case such release may be made by
the Administrative Agent acting alone);

 

and, provided  further, that (i) no
amendment, waiver or consent shall, unless in writing and signed by the
applicable L/C Issuer or Existing L/C Issuer in addition to the Lenders
required above, affect the rights or duties of the applicable L/C Issuer or
Existing L/C Issuer under this Agreement or any Issuer Document relating to any
Letter of Credit issued or to be issued by it; (ii) no amendment, waiver
or consent shall, unless in writing and signed by the Swing Line Lender in
addition to the Lenders required above, affect the rights or duties of the
Swing Line Lender under this Agreement; (iii) no amendment, waiver or
consent shall, unless in writing and signed by the Administrative Agent in
addition to the Lenders required above, affect the rights or duties of the
Administrative Agent under this Agreement or any other Loan Document; and (iv) each
Fee Letter may be amended, or rights or privileges thereunder waived, in a
writing executed only by the parties thereto. 
Notwithstanding anything to the contrary herein, no Defaulting Lender
shall have any right to approve or disapprove any amendment, waiver or consent
(and any amendment, waiver or consent which by its terms requires the consent
of all Lenders may be effected with the consent of all Lenders other than
Defaulting Lenders), except that (x) the Commitment of any Defaulting
Lender may not be increased or extended without the consent of such Defaulting
Lender and (y) any waiver, amendment or the modification requiring the
consent of all Lenders or each affected Lender that by its terms affects any
Defaulting Lender more adversely than other affected Lenders shall require the
consent of such Defaulting Lender.

 

10.02      Notices; Effectiveness; Electronic Communication.

 

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

 

(i)            if
to a Borrower, the Administrative Agent, Bank of America as an L/C Issuer or
the Swing Line Lender, to the address, telecopier number, electronic mail
address or telephone number specified for such Person on Schedule 10.02;

 

(ii)           if
to any other Lender or L/C Issuer, to the address, telecopier number,
electronic mail address or telephone number specified in its Administrative
Questionnaire; and

 

(iii)          if
to any Existing L/C Issuer, to the address, telecopier number, electronic mail
address or telephone number specified in the Administrative Questionnaire
submitted in its capacity as a Lender.

 

Notices and other communications sent by hand or
overnight courier service, or mailed by certified or registered mail, shall be
deemed to have been given when received; notices and other communications sent
by telecopier shall be deemed to have been given when sent (except that, if 

 

113

 

not given during normal business hours for the
recipient, shall be deemed to have been given at the opening of business on the
next business day for the recipient). 
Notices and other communications delivered through electronic
communications to the extent provided in subsection (b) below,
shall be effective as provided in such subsection (b).

 

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

 

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

 

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

 

114

 

any L/C Issuer, any
Existing L/C Issuer or any other Person for indirect, special, incidental,
consequential or punitive damages (as opposed to direct or actual damages).

 

(d)          Change of Address, Etc.  Each of the Borrowers, the Administrative
Agent, the Swing Line Lender, the L/C Issuers and the Existing L/C Issuers may
change its address, telecopier or telephone number for notices and other
communications hereunder by notice to the other parties hereto.  Each other Lender may change its address,
telecopier or telephone number for notices and other communications hereunder
by notice to the Company, the Administrative Agent, the Swing Line Lender, the
L/C Issuers and the Existing L/C Issuers. 
In addition, each Lender agrees to notify the Administrative Agent from
time to time to ensure that the Administrative Agent has on record (i) an
effective address, contact name, telephone number, telecopier number and
electronic mail address to which notices and other communications may be sent
and (ii) accurate wire instructions for such Lender.  Furthermore, each Public Lender agrees to
cause at least one individual at or on behalf of such Public Lender to at all
times have selected the “Private Side Information” or similar designation on
the content declaration screen of the Platform in order to enable such Public
Lender or its delegate, in accordance with such Public Lender’s compliance
procedures and applicable Law, including United States Federal and state
securities Laws, to make reference to Borrower Materials that are not made
available through the “Public Side Information” portion of the Platform and
that may contain material non-public information with respect to the Borrower
or its securities for purposes of United States Federal or state securities
Laws (provided, however, that to the extent the same constitutes
Information, it shall be treated no less confidentially than as set forth in Section 10.07).

 

(e)           Reliance by Administrative Agent,
L/C Issuers, Existing L/C Issuers and Lenders.  The Administrative Agent, the L/C
Issuers, the Existing L/C Issuers and the Lenders shall be entitled to rely and
act upon any notices (including telephonic Revolving Loan Notices and Swing
Line Loan Notices) purportedly given by or on behalf of any Borrower even if (i) such
notices were not made in a manner specified herein, were incomplete or were not
preceded or followed by any other form of notice specified herein, or (ii) the
terms thereof, as understood by the recipient, varied from any confirmation
thereof.  The Company shall indemnify the
Administrative Agent, each L/C Issuer, each Existing L/C Issuer, each Lender
and the Related Parties of each of them from all losses, costs, expenses and
liabilities resulting from the reliance by such Person on each notice
purportedly given by or on behalf of any Borrower.  All telephonic notices to and other
telephonic communications with the Administrative Agent may be recorded by the
Administrative Agent, and each of the parties hereto hereby consents to such
recording.

 

10.03      No Waiver; Cumulative Remedies;
Enforcement.  No failure by any Lender or the
Administrative Agent to exercise, and no delay by any such Person in
exercising, any right, remedy, power or privilege hereunder shall operate as a
waiver thereof; nor shall any single or partial exercise of any right, remedy,
power or privilege hereunder preclude any other or further exercise thereof or
the exercise of any other right, remedy, power or privilege.  The rights, remedies, powers and privileges
herein provided are cumulative and not exclusive of any rights, remedies,
powers and privileges provided by law.

 

Notwithstanding anything to the contrary
contained herein or in any other Loan Document, the authority to enforce rights
and remedies hereunder and under the other Loan Documents against the Loan
Parties or any of them shall be vested exclusively in, and all actions 

 

115

 

and proceedings at law in connection with such enforcement shall be
instituted and maintained exclusively by, the Administrative Agent in
accordance with Section 8.02 for the benefit of all the Lenders,
the L/C Issuers and the Existing L/C Issuers; provided, however,
that the foregoing shall not prohibit (a) the Administrative Agent from
exercising on its own behalf the rights and remedies that inure to its benefit
(solely in its capacity as Administrative Agent) hereunder and under the other
Loan Documents, (b) any L/C Issuer, any Existing L/C Issuer or the Swing
Line Lender from exercising the rights and remedies that inure to its benefit
(solely in its capacity as L/C Issuer, Existing L/C Issuer or Swing Line
Lender, as the case may be) hereunder and under the other Loan Documents, (c) any
Lender from exercising setoff rights in accordance with Section 10.08
(subject to the terms of Section 2.13), or (d) any Lender form
filing proofs of claim or appearing and filing pleadings on its own behalf
during the pendency of a proceeding relative to any Loan Party under any Debtor
Relief Law; and provided, further, that if at any time there is
no Person acting as Administrative Agent hereunder and under the other Loan
Documents, then (i) the Required Lenders shall have the rights otherwise
ascribed to the Administrative Agent pursuant to Section 8.02 and (ii) in
addition to the matters set forth in clauses (b), (c) and (d) of
the preceding proviso and subject to Section 2.13, any Lender may,
with the consent of the Required Lenders, enforce any rights and remedies
available to it and as authorized by the Required Lenders.

 

10.04      Expenses; Indemnity; Damage Waiver.

 

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

 

(b)          Indemnification by the Company.  The Company shall indemnify the
Administrative Agent (and any sub-agent thereof), each Lender, each L/C Issuer
and each Existing L/C Issuer, and each Related Party of any of the foregoing
Persons (each such Person being called an “Indemnitee”) against, and
hold each Indemnitee harmless from, any and all losses, claims, damages,
liabilities and related documented out-of-pocket expenses (including,
without limitation, the reasonable fees, disbursements and other charges of (w) one
counsel for all Indemnitees, (x) if deemed necessary by the Administrative
Agent, one firm of local counsel 

 

116

 

in each
appropriate jurisdiction for all Indemnitees, (y) if deemed necessary by
the Administrative Agent, special regulatory counsel and (z) in the case
of an actual or perceived conflict of interest with respect to any Indemnitee,
of another firm of counsel for such affected Indemnitee), incurred by any Indemnitee or asserted
against any Indemnitee by any third party or by any Borrower or any other Loan
Party arising out of, in connection with, or as a result of (i) any aspect
of the Transaction or any similar transaction and any of the other transactions
contemplated thereby, whether or not any aspect of the Transaction is
consummated, (ii) the execution or delivery of this Agreement, any other
Loan Document or any agreement or instrument contemplated hereby or thereby,
the performance by the parties hereto of their respective obligations hereunder
or thereunder, the consummation of the transactions contemplated hereby or
thereby, or, in the case of the Administrative Agent (and any sub-agent
thereof) and its Related Parties only, the administration of this Agreement and
the other Loan Documents (including in respect of any matters addressed in Section 3.01),
(iii) any Loan or Letter of Credit or the use or proposed use of the
proceeds therefrom (including any refusal by the applicable L/C Issuer or
Existing L/C Issuer to honor a demand for payment under a Letter of Credit if
the documents presented in connection with such demand do not strictly comply
with the terms of such Letter of Credit), (iv) any actual or alleged
presence or release of Hazardous Materials on or from any property owned or
operated by any Borrower or any of its Subsidiaries, or any Environmental
Liability related in any way to any Borrower or any of its Subsidiaries, or (v) any
actual or prospective claim, litigation, investigation or proceeding relating
to any of the foregoing, whether based on contract, tort or any other theory,
whether brought by a third party or by the Company or any other Loan Party, and
regardless of whether any Indemnitee is a party thereto; provided that
such indemnity shall not, as to any Indemnitee, be available to the extent that
such losses, claims, damages, liabilities or related expenses (x) are
determined by a court of competent jurisdiction by final and nonappealable
judgment to have resulted from the gross negligence or willful misconduct of
such Indemnitee or (y) result from a claim brought by the Company or any
other Loan Party against an Indemnitee for breach in bad faith of such
Indemnitee’s obligations hereunder or under any other Loan Document, if the
Company or such other Loan Party has obtained a final and nonappealable
judgment in its favor on such claim as determined by a court of competent
jurisdiction.

 

(c)           Reimbursement by Lenders.  To the extent that the Company for any reason
fails to pay any amount required under subsection (a) or (b) of
this Section to be paid by it to the Administrative Agent (or any
sub-agent thereof), each L/C Issuer, each Existing L/C Issuer or any Related
Party of any of the foregoing, each Lender severally agrees to pay to the
Administrative Agent (or any such sub-agent), such L/C Issuer, such Existing
L/C Issuer or such Related Party, as the case may be, such Lender’s Applicable
Percentage (determined as of the time that the applicable unreimbursed expense
or indemnity payment is sought) of such unpaid amount, provided that the
unreimbursed expense or indemnified loss, claim, damage, liability or related
expense, as the case may be, was incurred by or asserted against the
Administrative Agent (or any such sub-agent), such L/C Issuer or such Existing
L/C Issuer in its capacity as such, or against any Related Party of any of the
foregoing acting for the Administrative Agent (or any such sub-agent), such L/C
Issuer or such Existing L/C Issuer in connection with such capacity.  The obligations of the Lenders under this subsection
(c) are subject to the provisions of Section 2.12(d).

 

117

 

(d)          Waiver of Consequential Damages, Etc. 
To the fullest extent permitted by applicable law, no Borrower shall
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, the Transaction, this Agreement, any other Loan Document or any agreement
or instrument contemplated hereby, the transactions contemplated hereby or
thereby, any Loan or Letter of Credit or the use of the proceeds thereof.  No Indemnitee referred to in subsection (b)
above shall be liable for any damages arising from the use by unintended
recipients of any information or other materials distributed to such unintended
recipients by such Indemnitee through telecommunications, electronic or other
information transmission systems in connection with this Agreement or the other
Loan Documents or the transactions contemplated hereby or thereby other than
for direct or actual damages resulting from the gross negligence, willful
misconduct or breach in bad faith of such Indemnitee as determined by a final
and nonappealable judgment of a court of competent jurisdiction.

 

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

 

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

 

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

 

10.06      Successors and Assigns.

 

(a)           Successors and Assigns Generally. 
The provisions of this Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns
permitted hereby, except that no Borrower
may assign or otherwise transfer any of its 

 

118

 

rights or obligations
hereunder without the prior written consent of the Administrative Agent and
each Lender and no Lender may assign or otherwise transfer any of its rights or
obligations hereunder except (i) to an assignee in accordance with the
provisions of subsection (b) of this Section, (ii) by way of
participation in accordance with the provisions of subsection (d) of
this Section, or (iii) by way of pledge or assignment of a security interest
subject to the restrictions of subsection (f) of this Section (and any
other attempted assignment or transfer by any party hereto shall be null and
void).  Nothing in this Agreement,
expressed or implied, shall be construed to confer upon any Person (other than
the parties hereto, their respective successors and assigns permitted hereby,
Participants to the extent provided in subsection (d) of this Section and,
to the extent expressly contemplated hereby, the Related Parties of each of the
Administrative Agent, the L/C Issuers, the Existing L/C Issuers and the
Lenders) any legal or equitable right, remedy or claim under or by reason of
this Agreement.

 

(b)          Assignments by Lenders.  Any Lender
may at any time 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 (including for purposes of this subsection (b),
participations in L/C Obligations and in Swing Line Loans) at the time owing to
it); provided that any such assignment shall be subject to the following
conditions:

 

(i)            Minimum Amounts.

 

(A)          in the case of an assignment of the
entire remaining amount of the assigning Lender’s Commitment and the Loans at
the time owing to it or in the case of an assignment to a Lender, an Affiliate
of a Lender or an Approved Fund, no minimum amount need be assigned; and

 

(B)           in any case not described in subsection
(b)(i)(A) of this Section, the aggregate amount of the Commitment (which
for this purpose includes Loans outstanding thereunder) or, if the Commitment
is not then in effect, the principal outstanding balance of the Loans of the
assigning Lender subject to each such assignment, determined as of the date the
Assignment and Assumption with respect to such assignment is delivered to the
Administrative Agent or, if “Trade Date” is specified in the Assignment and
Assumption, as of the Trade Date, shall not be less than $1,000,000  unless each of the Administrative Agent and, so long as no
Event of Default has occurred and is continuing, the Company otherwise consents
(each such consent not to be unreasonably withheld or delayed); provided,
however, that concurrent assignments to members of an Assignee Group and
concurrent assignments from members of an Assignee Group to a single Eligible
Assignee (or to an Eligible Assignee and members of its Assignee Group) will be
treated as a single assignment for purposes of determining whether such minimum
amount has been met.

 

(ii)           Proportionate Amounts. 
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 with respect to the Loans or the Commitment assigned, except
that this clause (ii) shall not apply to the Swing Line Lender’s rights
and obligations in respect of Swing Line Loans;

 

119

 

(iii)          Required
Consents.  No consent shall be required for any
assignment except to the extent required by subsection (b)(i)(B) of this
Section and, in addition:

 

(A)          the consent of the Company (such consent
not to be unreasonably withheld or delayed) shall be required unless (1) an
Event of Default has occurred and is continuing at the time of such assignment
or (2) such assignment is to a Lender, an Affiliate of a Lender or an Approved
Fund; provided that the Company shall be deemed to have consented to any such
assignment unless it shall object thereto by written notice to the
Administrative Agent within five (5) Business Days after having received notice
thereof;

 

(B)           the consent of the Administrative Agent
(such consent not to be unreasonably withheld or delayed) shall be required if
such assignment is to a Person that is not a Lender, an Affiliate of such
Lender or an Approved Fund with respect to such Lender;

 

(C)           the consent of the L/C Issuers or the
Existing L/C Issuers, as the case may be, (such consent not to be unreasonably
withheld or delayed) shall be required for any assignment that increases the
obligation of the assignee to participate in exposure under one or more Letters
of Credit (whether or not then outstanding); and

 

(D)          the consent of the Swing Line Lender
(such consent not to be unreasonably withheld or delayed) shall be required for
any assignment.

 

(iv)         Assignment and Assumption. 
The parties to each assignment shall execute and deliver to the
Administrative Agent an Assignment and Assumption, together with a processing
and recordation fee in the amount of $3,500; provided, however,
that the Administrative Agent may, in its sole discretion, elect to waive such
processing and recordation fee in the case of any assignment.  The assignee, if it is not a Lender, shall
deliver to the Administrative Agent an Administrative Questionnaire.

 

(v)          No Assignment to Certain Persons. 
No such assignment shall be made (A) to any Defaulting Lender or any of
its Subsidiaries, or any Person who, upon becoming a Lender hereunder, would
constitute any of the foregoing Persons described in this clause (A), (B)
the Company or any of the Company’s Affiliates or Subsidiaries or (C) to a
natural person.

 

(vii)        Certain Additional Payments. In connection with any assignment of
rights and obligations of any Defaulting Lender hereunder, no such assignment
shall be effective unless and until, in addition to the other conditions
thereto set forth herein, the parties to the assignment shall make such
additional payments to the Administrative Agent in an aggregate amount
sufficient, upon distribution thereof as appropriate (which may be outright
payment, purchases by the assignee of participations or subparticipations, or
other compensating actions, including funding, with the consent of the Company
and the Administrative Agent, the applicable pro rata share of Loans previously
requested but not funded by the Defaulting Lender, to each of which the 

 

120

 

applicable
assignee and assignor hereby irrevocably consent), to (x) pay and satisfy in
full all payment liabilities then owed by such Defaulting Lender to the
Administrative Agent or any Lender hereunder (and interest accrued thereon) and
(y) acquire (and fund as appropriate) its full pro rata share of all Loans and
participations in Letters of Credit and Swing Line Loans in accordance with its
Applicable Percentage.

 

(viii)       No Assignment
Resulting in Additional Indemnified Taxes.  No such assignment shall be made to any
Person that, through its Lending Offices, is not capable of lending the
applicable Alternative Currencies to the relevant Borrowers without the
imposition of any additional Indemnified Taxes.

 

Subject to acceptance and recording thereof by the
Administrative Agent pursuant to subsection (c) of this Section, from
and after the effective date specified in each Assignment and Assumption, the
assignee thereunder shall be a party to this Agreement 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
3.01, 3.04, 3.05, and 10.04 with respect to facts and
circumstances occurring prior to the effective date of such assignment.  Upon request, each Borrower (at its expense)
shall execute and deliver a Note to the assignee Lender.  Any assignment or transfer by a Lender of
rights or obligations under this Agreement that does not comply with this
subsection 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 subsection
(d) of this Section.

 

(c)           Register.  The
Administrative Agent, acting solely for this purpose as an agent of the Borrowers,
shall maintain at the Administrative Agent’s Office a copy of each Assignment
and Assumption delivered to it and a register for the recordation of the names
and addresses of the Lenders, and the Commitments of, and principal amounts of
the Loans and L/C Obligations owing to, each Lender pursuant to the terms
hereof from time to time (the “Register”).  The entries in the Register shall be
conclusive, and the Borrowers, the Administrative Agent and the Lenders may
treat each Person whose name is recorded in the Register pursuant to the terms
hereof as a Lender hereunder for all purposes of this Agreement,
notwithstanding notice to the contrary. 
In addition, the Administrative Agent shall maintain on the Register information
regarding the designation, and revocation of designation, of any Lender as a
Defaulting Lender.  The Register shall be
available for inspection by each of the Borrowers and any Lender, at any
reasonable time and from time to time upon reasonable prior notice.

 

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

 

121

 

shall remain solely
responsible to the other parties hereto for the performance of such obligations
and (iii) the Borrowers, the Administrative Agent, the Lenders, the L/C Issuers
and the Existing L/C Issuers 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, waiver or other modification described in
the first proviso to Section 10.01 that affects such Participant.  Subject to subsection (e) of this
Section, each Borrower agrees that each Participant shall be entitled to the
benefits of Sections 3.01, 3.04 and 3.05  to the same extent as if it were a Lender and had acquired
its interest by assignment pursuant to subsection (b) of this
Section.  To the extent permitted by law,
each Participant also shall be entitled to the benefits of Section 10.08  as though it were a Lender, provided such
Participant agrees to be subject to Section 2.13 as though it were a
Lender.

 

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

 

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

 

(g)          Resignation as an L/C Issuer or Swing Line Lender
after Assignment.  Notwithstanding anything to the contrary
contained herein, (i) if at any time Bank of America assigns all of its
Commitment and Loans pursuant to subsection (b) above, Bank of America
may, (A) upon 30 days’ notice to the Company and the Lenders, resign as an L/C
Issuer and/or (B) upon 30 days’ notice to the Company, resign as Swing Line
Lender, and (ii) if at any time PNC assigns all of its Commitment and Loans
pursuant to subsection (b) above, PNC may, upon 30 days’ notice to the
Company and the Lenders, resign as an L/C Issuer.  In the event of any such resignation as an
L/C Issuer or Swing Line Lender, the Required Lenders, subject to the approval
of the Company, shall be entitled to appoint from among the Lenders a successor
L/C Issuer or Swing Line Lender hereunder; provided, however,
that no failure by the Company to appoint any such successor shall affect the
resignation of (x) Bank of America as an L/C Issuer or Swing Line Lender and (y)
PNC as an L/C Issuer, as the case may be. 
If Bank of America or PNC resign as an L/C Issuer, it shall retain all
the rights, powers, privileges and duties of the an L/C Issuer hereunder with
respect to all Letters of Credit outstanding as of the effective date of 

 

122

 

its resignation as an L/C
Issuer and all L/C Obligations with respect thereto (including the right to
require the Lenders to make Base Rate Revolving Loans or fund risk
participations in Unreimbursed Amounts pursuant to Section 2.03(c)).  If Bank of America resigns as Swing Line Lender,
it shall retain all the rights of the Swing Line Lender provided for hereunder
with respect to Swing Line Loans made by it and outstanding as of the effective
date of such resignation, including the right to require the Lenders to make
Base Rate Revolving Loans or fund risk participations in outstanding Swing Line
Loans pursuant to Section 2.04(c). 
Upon the appointment of a successor L/C Issuer and/or Swing Line Lender,
(a) such successor shall succeed to and become vested with all of the rights,
powers, privileges and duties of the retiring L/C Issuer or Swing Line Lender,
as the case may be, and (b) such successor L/C Issuer shall issue letters of
credit in substitution for the Letters of Credit, if any, outstanding at the
time of such succession or make other arrangements satisfactory to Bank of
America or PNC, as the case may be, to effectively assume the obligations of
Bank of America or PNC, as the case may be, with respect to such Letters of
Credit.

 

10.07      Treatment of Certain Information; Confidentiality.  Each of the Administrative Agent, the Lenders, the L/C
Issuers and the Existing L/C Issuers agrees to maintain the confidentiality of
the Information (as defined below), except that Information may be disclosed (a)
to its Affiliates and to its and its Affiliates’ respective partners,
directors, officers, employees, agents, trustees, advisors and representatives,
in each case, who may need to know the Information in connection with this
Transaction or as necessary to effectuate the administration and enforcement of
or performance under this Agreement, any other Loan Document or any related
transaction (it being understood that the Persons to whom such disclosure is
made will be informed of the confidential nature of such Information and
instructed to keep such Information confidential), (b) to the extent requested
by any regulatory authority purporting to have jurisdiction over it (including
any self-regulatory authority, such as the National Association of Insurance
Commissioners), (c) to the extent required by applicable Laws or regulations or
by any subpoena or similar legal process, (d) to any other party hereto, (e) in
connection with the exercise of any remedies hereunder or under any other Loan
Document or any action or proceeding relating to this Agreement or any other
Loan Document or the enforcement of rights hereunder or thereunder, (f) subject
to an agreement containing provisions substantially the same as those of this
Section, to (i) any assignee of or Participant in, or any prospective assignee
of or Participant in, any of its rights or obligations under this Agreement or any Eligible
Assignee invited to be a Lender pursuant to Section 2.15(c)  or (ii) any actual or prospective
counterparty (or its advisors) to any swap or derivative transaction relating
to a Borrower and its obligations, (g) with the consent of the Company or (h) to
the extent such Information (x) becomes publicly available other than as a
result of a breach of this Section or (y) becomes available to the
Administrative Agent, any Lender, any L/C Issuer, any Existing L/C Issuer or
any of their respective Affiliates on a nonconfidential basis from a source
other than the Company.

 

For purposes of this Section, “Information”
means all information received from the Company or any Subsidiary relating to
the Company or any Subsidiary or any of their respective businesses, other than
any such information that is available to the Administrative Agent, any Lender,
any L/C Issuer or any Existing L/C Issuer on a nonconfidential basis prior to
disclosure by the Company or any Subsidiary, provided that, in the case
of information received from the Company or any Subsidiary after the date
hereof, such information is clearly identified at the 

 

123

 

time of delivery as
confidential (it being understood that a single written notice to the
Administrative Agent that all such information delivered with such notice shall
be deemed to be confidential shall suffice as clear identification as to the confidential
nature of all such information delivered or to be delivered).  Any Person required to maintain the
confidentiality of Information as provided in this Section shall be considered
to have complied with its obligation to do so if such Person has exercised the
same degree of care to maintain the confidentiality of such Information as such
Person would accord to its own confidential information.

 

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

 

10.08      Right of Setoff.  If an Event of Default shall have
occurred and be continuing, each Lender, each L/C Issuer, each Existing L/C
Issuer and each of their respective Affiliates is hereby authorized at any time
and from time to time, to the fullest extent permitted by applicable law, to
set off and apply any and all deposits (general or special, time or demand,
provisional or final, in whatever currency) at any time held and other
obligations (in whatever currency) at any time owing by such Lender, such L/C
Issuer, such Existing L/C Issuer or any such Affiliate to or for the credit or
the account of any Borrower against any and all of the obligations of any
Borrower now or hereafter existing under this Agreement or any other Loan
Document to such Lender, such L/C Issuer or such Existing L/C Issuer, irrespective
of whether or not such Lender, such L/C Issuer or such Existing L/C Issuer
shall have made any demand under this Agreement or any other Loan Document, to
the extent such obligations of such Borrower are then due and owing, or are
owed to a branch or office of such Lender, such L/C Issuer or such Existing L/C
Issuer different from the branch or office holding such deposit or obligated on
such indebtedness; provided, that in the event that any
Defaulting Lender shall exercise any such right of setoff, (x) all amounts so
set off shall be paid over immediately to the Administrative Agent for further
application in accordance with the provisions of Section 2.17 and,
pending such payment, shall be segregated by such Defaulting Lender from its
other funds and deemed held in trust for the benefit of the Administrative
Agent and the Lenders, and (y) the Defaulting Lender shall provide promptly to
the Administrative Agent a statement describing in reasonable detail the
Obligations owing to such Defaulting Lender as to which it exercised such right
of setoff.  The rights of each Lender, each L/C Issuer,
each Existing L/C Issuer and their respective Affiliates under this Section are
in addition to other rights and remedies (including other rights of setoff) that
such Lender, such L/C Issuer, such Existing L/C Issuer or their respective
Affiliates may have.  Each Lender, each
L/C Issuer and each Existing L/C Issuer agrees to notify the Company and the
Administrative Agent promptly after any such setoff and application, provided
that the failure to give such notice shall not affect the validity of such
setoff and application.

 

10.09      Interest Rate Limitation.  Notwithstanding anything to the contrary
contained in any Loan Document, the interest paid or agreed to be paid under
the Loan Documents shall not exceed the maximum rate of non-usurious interest
permitted by applicable Law (the “Maximum Rate”).  If the Administrative Agent or any Lender
shall receive interest in an amount that 

 

124

 

exceeds the Maximum Rate,
the excess interest shall be applied to the principal of the Loans or, if it
exceeds such unpaid principal, refunded to the Company.  In determining whether the interest
contracted for, charged, or received by the Administrative Agent or a Lender
exceeds the Maximum Rate, such Person may, to the extent permitted by
applicable Law, (a) characterize any payment that is not principal as an
expense, fee, or premium rather than interest, (b) exclude voluntary prepayments
and the effects thereof, and (c) amortize, prorate, allocate, and spread in
equal or unequal parts the total amount of interest throughout the contemplated
term of the Obligations hereunder.

 

10.10      Counterparts; Integration; Effectiveness.  This Agreement and the other Loan Documents may be
executed in counterparts (and by different parties hereto in different
counterparts), each of which shall constitute an original, but all of which
when taken together shall constitute a single contract.  This Agreement and the other Loan Documents
constitute the entire contract among the parties relating to the subject matter
hereof and supersede any and all previous agreements and understandings, oral
or written, relating to the subject matter hereof.  Except as provided in Section 4.01 and
Section 4.02, this Agreement and the other Loan Documents shall become
effective when it shall have been executed by the Administrative Agent and when
the Administrative Agent shall have received counterparts hereof that, when taken
together, bear the signatures of each of the other parties hereto.  Delivery of an executed counterpart of a
signature page of this Agreement and any other Loan Document by telecopy or
other electronic imaging means shall be effective as delivery of a manually
executed counterpart of this Agreement and the other Loan Documents.

 

10.11      Survival of Representations and Warranties.  All representations and warranties made hereunder and
in any other Loan Document or other document delivered pursuant hereto or
thereto or in connection herewith or therewith shall survive the execution and
delivery hereof and thereof.  Such
representations and warranties have been or will be relied upon by the
Administrative Agent and each Lender, regardless of any investigation made by
the Administrative Agent or any Lender or on their behalf and notwithstanding
that the Administrative Agent or any Lender may have had notice or knowledge of
any Default at the time of any Credit Extension, and shall continue in full
force and effect as long as any Obligation hereunder shall remain unpaid or
unsatisfied or any Letter of Credit shall remain outstanding (other than
indemnities and other similar contingent obligations surviving the termination
of this Agreement for which no claim has been made and which are unknown and
not calculable at the time of termination and those obligations under any Swap Contract).

 

10.12      Severability.  If any provision of this Agreement or the
other Loan Documents is held to be illegal, invalid or unenforceable, (a) the
legality, validity and enforceability of the remaining provisions of this
Agreement and the other Loan Documents shall not be affected or impaired
thereby and (b) the parties shall endeavor in good faith negotiations to
replace the illegal, invalid or unenforceable provisions with valid provisions
the economic effect of which comes as close as possible to that of the illegal,
invalid or unenforceable provisions.  The
invalidity of a provision in a particular jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction.  Without limiting the foregoing provisions of
this Section 10.12, if and to the extent that the enforceability of any
provisions in this Agreement relating to Defaulting Lenders shall be limited by
Debtor Relief Laws, as determined reasonably 

 

125

 

and in good faith by the
Administrative Agent, the L/C Issuers or the Swing Line Lender, as applicable,
then such provisions shall be deemed to be in effect only to the extent not so
limited.

 

10.13      Replacement of Lenders.  If any Lender requests compensation under
Section 3.04, or if any Borrower is required to pay any additional
amount to any Lender or any Governmental Authority for the account of any
Lender pursuant to Section 3.01, or if any Lender is a Defaulting Lender
or a Restricted Lender (as defined below) or if any other circumstance exists
hereunder that gives the Company the right to replace a Lender as a party
hereto, then the Company may, at its sole expense and effort, upon notice to
such Lender and the Administrative Agent, require such Lender to assign and
delegate, without recourse (in accordance with and subject to the restrictions
contained in, and consents required by, Section 10.06), all of its
interests, rights and obligations under this Agreement and the related Loan
Documents to an assignee that shall assume such obligations (which assignee may
be another Lender, if a Lender accepts such assignment), provided that:

 

(a)           the Company shall have paid (or caused a Designated
Borrower to pay) to the Administrative Agent the assignment fee specified in Section
10.06(b);

 

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

 

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

 

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

 

(e)           with respect to the replacement of a Restricted
Lender, such assignment is requested within 90 days of such Lender’s failure to
approve the applicable amendment, waiver or consent.

 

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

 

For the purposes of this Section 10.13, a “Restricted
Lender” means a Lender that fails to approve an amendment, waiver or consent
requested by the Company or any other Loan Party pursuant to Section 10.01
that has received the written approval of not less than the Required Lenders
but also requires the approval of such Lender.

 

10.14      Governing Law; Jurisdiction; Etc.

 

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

 

126

 

EACH
LOAN DOCUMENT (OTHER THAN AS OTHERWISE EXPRESSLY SET FORTH IN A LOAN DOCUMENT)
WILL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE LAWS OF THE
STATE OF NEW YORK (INCLUDING FOR SUCH PURPOSES SECTIONS 5-1401 AND 5-1402 OF
THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK).

 

(b)          SUBMISSION TO JURISDICTION. 
EACH BORROWER AND EACH OTHER PARTY HERETO IRREVOCABLY AND
UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE
JURISDICTION OF THE COURTS 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 ANY OTHER LOAN DOCUMENT, OR FOR
RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO
IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION
OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE COURT OR, TO
THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT.  EACH OF THE PARTIES HERETO AGREES THAT A
FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE
ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER
PROVIDED BY LAW.  NOTHING IN THIS
AGREEMENT OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT THE
ADMINISTRATIVE AGENT, ANY LENDER, ANY L/C ISSUER OR ANY EXISTING L/C ISSUER MAY
OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR
ANY OTHER LOAN DOCUMENT AGAINST ANY BORROWER OR ITS PROPERTIES IN THE COURTS OF
ANY JURISDICTION.

 

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

 

(d)          SERVICE OF PROCESS.  (i)  EACH PARTY HERETO IRREVOCABLY CONSENTS TO
SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 10.02.  NOTHING IN THIS AGREEMENT WILL AFFECT THE
RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY
APPLICABLE LAW.  (ii) EACH DESIGNATED
BORROWER THAT IS A FOREIGN SUBSIDIARY APPOINTS THE COMPANY AS ITS AGENT FOR
SERVICE OF PROCESS.

 

127

 

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

 

10.16      No Advisory or Fiduciary
Responsibility.  In connection with all aspects of each
transaction contemplated hereby (including in connection with any amendment,
waiver or other modification hereof or of any other Loan Document), each
Borrower acknowledges and agrees, and
acknowledges its Affiliates’ understanding, that:  (i) (A) the arranging and other
services regarding this Agreement provided by the Administrative Agent, the
Arrangers and the Lenders are arm’s-length commercial transactions between such
Borrower and its Affiliates, on
the one hand, and the Administrative Agent and the Arrangers, on the other hand, (B) such Borrower has
consulted its own legal, accounting, regulatory and tax advisors to the extent
it has deemed appropriate, and (C) such Borrower is capable of evaluating,
and understands and accepts, the terms, risks and conditions of the
transactions contemplated hereby and by the other Loan Documents; (ii) (A) the
Administrative Agent, the Arrangers and the Lenders each is and has been acting
solely as a principal and, except as expressly agreed in writing by the
relevant parties, has not been, is not, and will not be acting as an advisor,
agent or fiduciary for such Borrower or any of its Affiliates or any other Person and (B) neither the
Administrative Agent, the Arrangers nor the Lenders has any obligation to such
Borrower or any of its
Affiliates with respect to the transactions contemplated hereby except those obligations
expressly set forth herein and in the other Loan Documents and (iii) the
Administrative Agent, the Arrangers and the Lenders and their respective
Affiliates may be engaged in a broad range of transactions that involve
interests that differ from those of such Borrower and its Affiliates, and neither the Administrative Agent, the
Arrangers nor the Lenders has any obligation to disclose any of such interests
to such Borrower or its Affiliates.  To
the fullest extent permitted by law, each of the Borrowers hereby waives and
releases any claims that it may have against the Administrative Agent, the
Arrangers or the Lenders with respect to any breach or alleged breach of agency
or fiduciary duty in connection with any aspect of any transaction contemplated
hereby.

 

10.17      Electronic Execution of Assignments and
Certain Other Documents.  The words “execution,” “signed,” “signature,”
and words of like import in any Assignment and Assumption or in any amendment
or other modification hereof (including waivers and consents) shall be deemed
to include electronic signatures or the keeping of records in electronic form,
each of which shall be of the same legal effect, validity or enforceability as
a manually executed signature or the use of a paper-based recordkeeping system,
as the case may be, to the extent and as provided for in any applicable law,
including the Federal Electronic Signatures in Global and 

 

128

 

National Commerce Act,
the New York State Electronic Signatures and Records Act, or any other similar
state laws based on the Uniform Electronic Transactions Act.

 

10.18      USA PATRIOT Act Notice.  Each Lender that is subject to the Act (as hereinafter
defined) and the Administrative Agent (for itself and not on behalf of any
Lender) hereby notifies the Borrowers that pursuant to the requirements of the
USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26,
2001)) (the “Act”), it is required to obtain, verify and record
information that identifies the Borrowers, which information includes the name
and address of each Borrower and other information that will allow such Lender
or the Administrative Agent, as applicable, to identify such Borrower in
accordance with the Act.  Each Borrower
shall, promptly following a request by the Administrative Agent or any Lender,
provided all documentation and other information that the Administrative Agent
or such Lender requests in order to comply with its ongoing obligations under
applicable “know your customer” and anti-money laundering rules and
regulations, including the Act.

 

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

 

129

 

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

 

	
   

  	
  COMPANY:

  
	
   

  	
   

  
	
   

  	
  TOWERS WATSON & CO. (f/k/a
  Jupiter Saturn

  Holding Company)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Roger F. Millay

  
	
   

  	
  Name:

  	
  Roger F. Millay

  
	
   

  	
  Title:

  	
  Chief
  Financial Officer 

  

 

Jupiter
Saturn Holding Company

Credit
Agreement

Signature
Page

 

 

	
   

  	
  BANK OF AMERICA, N.A., as

  
	
   

  	
  Administrative Agent

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William S. Rowe

  
	
   

  	
  Name:

  	
  William S. Rowe

  
	
   

  	
  Title:

  	
  Senior
  Vice President

  

 

Jupiter
Saturn Holding Company

Credit
Agreement

Signature
Page

 

 

	
   

  	
  BANK OF AMERICA, N.A., as a Lender,
  an L/C

  Issuer and Swing Line Lender

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William S. Rowe

  
	
   

  	
  Name:

  	
  William S. Rowe

  
	
   

  	
  Title:

  	
  Senior
  Vice President

  

 

Jupiter
Saturn Holding Company

Credit
Agreement

Signature
Page

 

 

	
   

  	
  PNC BANK, NATIONAL ASSOCIATION, as a

  Lender and an L/C Issuer

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Denise D. Killen

  
	
   

  	
  Name:

  	
  Denise D. Killen

  
	
   

  	
  Title:

  	
  Senior
  Vice President

  

 

Jupiter
Saturn Holding Company

Credit
Agreement

Signature
Page

 

 

	
   

  	
  HSBC BANK USA, NATIONAL ASSOCIATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Reed R. Menefee

  
	
   

  	
  Name:

  	
  Reed R. Menefee

  
	
   

  	
  Title:

  	
  Vice
  President

  

 

Jupiter
Saturn Holding Company

Credit
Agreement

Signature
Page

 

 

	
   

  	
  SUNTRUST BANK

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mark A. Flatin

  
	
   

  	
  Name:

  	
  Mark A. Flatin

  
	
   

  	
  Title:

  	
  Managing
  Director

  

 

Jupiter
Saturn Holding Company

Credit
Agreement

Signature
Page

 

 

	
   

  	
  U.S. BANK, NATIONAL ASSOCIATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Patrick McGraw

  
	
   

  	
  Name:

  	
  Patrick McGraw

  
	
   

  	
  Title:

  	
  Vice
  President

  

 

Jupiter
Saturn Holding Company

Credit
Agreement

Signature
Page

 

 

	
   

  	
  JPMORGAN CHASE BANK, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Philip A. Mousin

  
	
   

  	
  Name:

  	
  Philip A. Mousin

  
	
   

  	
  Title:

  	
  Senior
  Vice President

  

 

Jupiter
Saturn Holding Company

Credit
Agreement

Signature
Page

 

 

	
   

  	
  CITIZENS BANK OF PENNSYLVANIA

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Leslie D. Broderick

  
	
   

  	
  Name:

  	
  Leslie D. Broderick

  
	
   

  	
  Title:

  	
  Senior Vice President

  

 

Jupiter
Saturn Holding Company

Credit
Agreement

Signature
Page

 

 

	
   

  	
  SOVEREIGN BANK, as a Lender and a
  Co-Documentation Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Francis D. Phillips

  
	
   

  	
  Name:

  	
  Francis D. Phillips

  
	
   

  	
  Title:

  	
  Senior Vice President

  

 

Jupiter
Saturn Holding Company

Credit
Agreement

Signature
Page

 

 

	
   

  	
  BRANCH BANKING AND TRUST COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James E. Davis

  
	
   

  	
  Name:

  	
  James E. Davis

  
	
   

  	
  Title:

  	
  Senior Vice President

  

 

Jupiter
Saturn Holding Company

Credit
Agreement

Signature
Page

 

 

	
   

  	
  ROYAL BANK OF CANADA

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Dustin Craven

  
	
   

  	
  Name:

  	
  Dustin Craven

  
	
   

  	
  Title:

  	
  Attorney-in-Fact

  

 

Jupiter
Saturn Holding Company

Credit
Agreement

Signature
Page

 

 

	
   

  	
  TORONTO DOMINION (NEW YORK) LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Debbi L. Brito

  
	
   

  	
  Name:

  	
  Debbi L. Brito

  
	
   

  	
  Title:

  	
  Authorized Signatory

  

 

Jupiter
Saturn Holding Company

Credit
Agreement

Signature
Page

 

 

	
   

  	
  WELLS FARGO BANK, NATIONAL ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Donald Schwartz

  
	
   

  	
  Name:

  	
  Donald Schwartz

  
	
   

  	
  Title:

  	
  Senior Vice President

  

 

Jupiter
Saturn Holding Company

Credit
Agreement

Signature
Page

 

 

	
   

  	
  CITIBANK, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ross Levitsky

  
	
   

  	
  Name:

  	
  Ross Levitsky

  
	
   

  	
  Title:

  	
  Managing Director

  

 

Jupiter
Saturn Holding Company

Credit
Agreement

Signature
Page

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