Document:

exhibit1030.htm

    
      	
               

              AMENDED
      AND RESTATED CREDIT AGREEMENT

               

               

              dated
      as of

               

               

              November
      29, 2007,

               

               

              among

               

               

              YUM!
      BRANDS, INC.,

              YUM!
      RESTAURANT HOLDINGS,

              YUM!
      RESTAURANTS INTERNATIONAL S.à r.L., LLC (U.S. BRANCH),

              YUM!
      RESTAURANTS INTERNATIONAL (CANADA) LP,

               

               

              The
      Lenders Party Hereto

               

               

              and

               

               

              CITIBANK
      INTERNATIONAL PLC,

              as
      Facility Agent

               

              CITIBANK,
      N.A., CANADIAN BRANCH,

              as
      Canadian Facility Agent

               

               

                
      

               

              CITIGROUP
      GLOBAL MARKETS LIMITED,

              J.P.
      MORGAN SECURITIES INC.,

              as
      Lead Arrangers and Bookrunners

               

              HSBC
      BANK USA, N.A., and

              COOPERATIEVE
      CENTRALE RAIFFEISEN-BOERENLEENBANK B.A. 

              “RABOBANK
      INTERNATIONAL”, NEW YORK BRANCH

              as
      Co-Arrangers

               

            

    

    

    
      
        
          

          

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    TABLE OF
CONTENTS

     

    
      	 
      	 
      	
              Page

            
	 
      	 
      	 
      
	
              ARTICLE
      I

            
	 
      	 
      	 
      
	
              Definitions

            
	 
      	 
      	 
      
	
              SECTION
      1.01.

            	
              Defined
      Terms

            	
              1

            
	
              SECTION
      1.02.

            	
              Classification
      of Loans and Borrowings

            	
              26

            
	
              SECTION
      1.03.

            	
              Terms
      Generally

            	
              26

            
	
              SECTION
      1.04.

            	
              Accounting
      Terms; GAAP

            	
              27

            
	 
      	 
      	 
      
	
              ARTICLE
      II

            
	 
      	 
      	 
      
	
              The
      Credits

            
	 
      	 
      	 
      
	
              SECTION
      2.01.

            	
              Commitments

            	
              27

            
	
              SECTION
      2.02.

            	
              Loans
      and Borrowings

            	
              28

            
	
              SECTION
      2.03.

            	
              Requests
      for Revolving Borrowings

            	
              29

            
	
              SECTION
      2.04.

            	
              Bankers’
      Acceptances

            	
              30

            
	
              SECTION
      2.05.

            	
              Swingline
      Loans

            	
              33

            
	
              SECTION
      2.06.

            	
              Assigned
      Dollar Value

            	
              34

            
	
              SECTION
      2.07.

            	
              Funding
      of Borrowings

            	
              35

            
	
              SECTION
      2.08.

            	
              Interest
      Elections

            	
              36

            
	
              SECTION
      2.09.

            	
              Termination,
      Reduction and Extension of Commitments

            	
              38

            
	
              SECTION
      2.10.

            	
              Repayment
      of Loans and B/As; Evidence of Debt

            	
              39

            
	
              SECTION
      2.11.

            	
              Prepayment
      of Loans

            	
              40

            
	
              SECTION
      2.12.

            	
              Fees

            	
              41

            
	
              SECTION
      2.13.

            	
              Interest

            	
              42

            
	
              SECTION
      2.14.

            	
              Alternate
      Rate of Interest

            	
              43

            
	
              SECTION
      2.15.

            	
              Increased
      Costs

            	
              44

            
	
              SECTION
      2.16.

            	
              Break
      Funding Payments

            	
              45

            
	
              SECTION
      2.17.

            	
              Taxes

            	
              45

            
	
              SECTION
      2.18.

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

            	
              46

            
	
              SECTION
      2.19.

            	
              Mitigation
      Obligations; Replacement of Lenders

            	
              48

            
	 	 	 
	 
      	 
      	 
      
	
              ARTICLE
      III

            
	 
      	 
      	 
      
	
              Representations
      and Warranties

            
	 
      	 
      	 
      
	
              SECTION
      3.01.

            	
              Organization;
      Powers

            	
              49

            
	
              SECTION
      3.02.

            	
              Authorization;
      Enforceability

            	
              49

            
	
              SECTION
      3.03.

            	
              Governmental
      Approvals; No Conflicts

            	
              49

            

    

     

    
      
        
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2

    

    
      	
              SECTION
      3.04.

            	
              Financial
      Condition; No Material Adverse Change

            	
              50

            
	
              SECTION
      3.05.

            	
              Properties

            	
              50

            
	
              SECTION
      3.06.

            	
              Litigation
      and Environmental Matters

            	
              50

            
	
              SECTION
      3.07.

            	
              Compliance
      with Laws and Agreements

            	
              51

            
	
              SECTION
      3.08.

            	
              Investment
      Company Status

            	
              51

            
	
              SECTION
      3.09.

            	
              Taxes

            	
              51

            
	
              SECTION
      3.10.

            	
              ERISA

            	
              51

            
	
              SECTION
      3.11.

            	
              Disclosure

            	
              52

            
	
              SECTION
      3.12.

            	
              Initial
      Guarantors

            	
              52

            
	 
      	 
      	 
      
	 	 	 
	
              ARTICLE
      IV

            
	 
      	 
      	 
      
	
              Conditions

            
	 
      	 
      	 
      
	
              SECTION
      4.01.

            	
              Effective
      Date

            	
              52

            
	
              SECTION
      4.02.

            	
              Each
      Credit Event

            	
              54

            
	 
      	 
      	 
      
	 	 	 
	
              ARTICLE
      V

            
	 
      	 
      	 
      
	
              Affirmative
      Covenants

            
	 
      	 
      	 
      
	
              SECTION
      5.01.

            	
              Financial
      Statements and Other Information

            	
              54

            
	
              SECTION
      5.02.

            	
              Notices
      of Material Events

            	
              56

            
	
              SECTION
      5.03.

            	
              Existence;
      Conduct of Business

            	
              56

            
	
              SECTION
      5.04.

            	
              Payment
      of Obligations

            	
              57

            
	
              SECTION
      5.05.

            	
              Maintenance
      of Properties; Insurance

            	
              57

            
	
              SECTION
      5.06.

            	
              Books
      and Records; Inspection Rights

            	
              57

            
	
              SECTION
      5.07.

            	
              Compliance
      with Laws

            	
              57

            
	
              SECTION
      5.08.

            	
              Use
      of Proceeds

            	
              57

            
	
              SECTION
      5.09.

            	
              Principal
      Domestic Subsidiaries

            	
              58

            
	 
      	 
      	 
      
	 	 	 
	
              ARTICLE
      VI

            
	 
      	 
      	 
      
	
              Negative
      Covenants

            
	 
      	 
      	 
      
	
              SECTION
      6.01.

            	
              Subsidiary
      Indebtedness

            	
              58

            
	
              SECTION
      6.02.

            	
              Liens

            	
              58

            
	
              SECTION
      6.03.

            	
              Fundamental
      Changes

            	
              59

            
	
              SECTION
      6.04.

            	
              [Intentionally
      omitted.]

            	
              60

            
	
              SECTION
      6.05.

            	
              Hedging
      Agreements

            	
              60

            
	
              SECTION
      6.06.

            	
              [Intentionally
      omitted.]

            	
              60

            
	
              SECTION
      6.07.

            	
              Transactions
      with Affiliates

            	
              60

            
	
              SECTION
      6.08.

            	
              Issuances
      of Equity Interests by Principal Domestic Subsidiaries

            	
              61

            
	
              SECTION
      6.09.

            	
              Leverage
      Ratio

            	
              61

            
	
              SECTION
      6.10.

            	
              Fixed
      Charge Coverage Ratio

            	
              61

            

    

    
      
        
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3

    

    
      	
              SECTION
      6.11.

            	
              Sale
      and Lease-Back Transactions

            	
              61

            
	
              SECTION
      6.12.

            	
              Ownership
      of Borrowers

            	
              61

            
	 
      	 
      	 
      
	 	 	 
	
              ARTICLE
      VII

            
	 
      	 
      	 
      
	
              Events
      of Default

            
	 
      	 
      	 
      
	
              SECTION
      7.01.

            	
              Events
      of Default

            	
              62

            
	
              SECTION
      7.02.

            	
              Exclusion
      of Immaterial Subsidiaries

            	
              64

            
	 
      	 
      	 
      
	 	 	 
	
              ARTICLE
      VIII

            
	 
      	 
      	 
      
	
              The
      Agents

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 	 	 
	
              ARTICLE
      IX

            
	 
      	 
      	 
      
	
              Miscellaneous

            
	 
      	 
      	 
      
	
              SECTION
      9.01.

            	
              Notices

            	
              67

            
	
              SECTION
      9.02.

            	
              Waivers;
      Amendments

            	
              68

            
	
              SECTION
      9.03.

            	
              Expenses;
      Indemnity; Damage Waiver

            	
              69

            
	
              SECTION
      9.04.

            	
              Successors
      and Assigns

            	
              70

            
	
              SECTION
      9.05.

            	
              Survival

            	
              74

            
	
              SECTION
      9.06.

            	
              Counterparts;
      Integration; Effectiveness

            	
              74

            
	
              SECTION
      9.07.

            	
              Severability

            	
              75

            
	
              SECTION
      9.08.

            	
              Right
      of Setoff

            	
              75

            
	
              SECTION
      9.09.

            	
              Governing
      Law; Jurisdiction; Consent to Service of Process

            	
              75

            
	
              SECTION
      9.10.

            	
              WAIVER
      OF JURY TRIAL

            	
              76

            
	
              SECTION
      9.11.

            	
              Headings

            	
              76

            
	
              SECTION
      9.12.

            	
              Confidentiality

            	
              76

            
	
              SECTION
      9.13.

            	
              Interest
      Rate Limitation

            	
              77

            
	
              SECTION
      9.14.

            	
              Judgment
      Currency

            	
              77

            
	
              SECTION
      9.15.

            	
              USA
      Patriot Act

            	
              78

            
	
              SECTION
      9.16.

            	
              Existing
      Credit Agreement; Effectiveness of Amendment and
    Restatement

            	
              78

            

    

    

    SCHEDULES:

    Schedule
A – Initial Guarantors

    Schedule
2.01 -- Commitments

    Schedule
2.13 -- Mandatory Cost

    Schedule
2.17 -- PTR Scheme

    Schedule
3.06 -- Disclosed Matters

    Schedule
3.11 – Disclosure

     

    
      
        
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4

    Schedule
6.01 -- Existing Indebtedness

    Schedule
6.02 -- Existing Liens

     

    EXHIBITS:

     

    Exhibit A
-- Form of Assignment and Assumption Agreement

    Exhibit B
-- Form of Guarantee Agreement

    Exhibit
C-1 -- Form of Opinion of Mayer Brown LLP

    Exhibit
C-2 -- Form of Opinion of Stikeman Elliot LLP

    Exhibit
C-3 -- Form of Opinion of Kaufhold Ossola & Associés

    Exhibit
C-4 -- Form of Opinion of Linklaters

    Exhibit
C-5 -- Form of Opinion of counsel to Yum! Brands, Inc.

     

    

    
      
        
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    AMENDED
AND RESTATED CREDIT AGREEMENT dated as of November 29, 2007, as amended and
restated as of September 15, 2006, among YUM! BRANDS, INC., YUM! RESTAURANT
HOLDINGS, YUM! RESTAURANTS INTERNATIONAL S.à r.L., LLC (U.S. BRANCH) and YUM!
RESTAURANTS INTERNATIONAL (CANADA) LP, the LENDERS party hereto, CITIBANK
INTERNATIONAL PLC, as Facility Agent and CITIBANK, N.A., CANADIAN BRANCH, as
Canadian Facility Agent.

     

    WHEREAS,
the Company and the Borrowers have requested, and the Lenders and the Agents
have agreed, upon the terms and subject to the conditions set forth herein, that
the Existing Credit Agreement be amended and restated in its entirety as
provided herein effective upon satisfaction of the conditions set forth in
Section 4.01 below:

     

    NOW,
THEREFORE, the parties hereto agree as follows:

     

     

    ARTICLE
I

     

    Definitions

     

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

     

    “Acquired Business”
means any Person, property, business or asset acquired (or, as applicable,
proposed to be acquired) by the Company or a Subsidiary pursuant to a Permitted
Acquisition.

     

    “Act” has the meaning
assigned to such term in Section 9.15.

     

    “Adjusted EBITDA”
means, for any period, the Consolidated EBITDA of the Company for such period,
adjusted (a) to include (to the extent not otherwise included) the
Consolidated EBITDA of any Acquired Business acquired during such period (and,
solely for purposes of determining whether a proposed acquisition is a Permitted
Acquisition pursuant to clause (d) of the definition of the term Permitted
Acquisition, any Acquired Business that, at the time of calculation of Adjusted
EBITDA for such purpose, has been acquired subsequent to the end of such period
and prior to such time as well as that proposed to be acquired) pursuant to a
Permitted Acquisition and not subsequently sold, transferred or otherwise
disposed of during such period (or, solely for purposes of determining whether a
proposed acquisition is a Permitted Acquisition, subsequent to the end of such
period and prior to such time), based on the actual Consolidated EBITDA of such
Acquired Business for such period (including the portion thereof attributable to
such period prior to the date of acquisition of such Acquired Business) and
(b) to exclude the Consolidated EBITDA of any Sold Business sold, transferred or
otherwise disposed of during such period (and, solely for purposes
of

     

    
      
        
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2

    determining
whether a proposed acquisition is a Permitted Acquisition pursuant to clause (d)
of the definition of the term Permitted Acquisition, any Sold Business that, at
the time of calculation of Adjusted EBITDA for such purpose, has been sold,
transferred or otherwise disposed of subsequent to the end of such period and
prior to such time), based on the actual Consolidated EBITDA of such Sold
Business for such period (including the portion thereof attributable to such
period prior to the date of sale, transfer or disposition of such Sold
Business).  For purposes of calculating Adjusted EBITDA for any
period, the portion of the Consolidated EBITDA of any Acquired Business that is
to be included in Adjusted EBITDA for such period that is attributable to the
period prior to the date of acquisition of such Acquired Business shall be
determined as though all net income of such Acquired Business for such period
was distributed to the holders of the Equity Interests of such Acquired Business
ratably.

     

    “Adjusted LIBO Rate”
means (a) with respect to any LIBOR Borrowing denominated in U.S. Dollars
for any Interest Period, an interest rate per annum (rounded upwards, if
necessary, to the next 1/100 of 1%) equal to the product of (i) the LIBO
Rate for U.S. Dollars for such Interest Period multiplied by (ii) the
Statutory Reserve Rate and (b) with respect to any LIBOR Borrowing
denominated in Sterling for any Interest Period, an interest rate per annum
(rounded upwards, if necessary, to the next 1/100 of 1%) equal to the sum of
(x) the LIBO Rate for such currency and such Interest Period plus
(y) the Mandatory Cost.

     

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

     

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

     

    “Agents” means the
Facility Agent and the Canadian Facility Agent.

     

    “Alternative Currency”
means Sterling, with respect to the Loans made to the UK Borrower, or Canadian
Dollars, with respect to the Loans made to the Canadian Borrower.

     

    “Alternative Currency
Borrowing” means a Borrowing comprised of Alternative Currency
Loans.

     

    “Alternative Currency
Equivalent” means, with respect to an amount in U.S. Dollars on any date
in relation to a specified Alternative Currency, the amount of such specified
Alternative Currency that may be purchased with such amount of U.S. Dollars at
the Spot Exchange Rate with respect to such Alternative Currency on such
date.

     

    “Alternative Currency
Loan” means any Loan denominated in an Alternative
Currency.

    
      
        
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3

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

     

    “Applicable Margin”
means, for any day, with respect to any Loan hereunder, or with respect to the
commitment fees or the utilization fees payable hereunder, as the case may be,
the applicable margin per annum set forth below under the caption “Applicable
Margin”, “Commitment Fee Rate” or “Utilization Fee Rate”, as the case may be, as
determined in the manner set forth below based upon the ratings by Moody’s and
S&P, respectively, applicable on such date to the Index Debt.

     

    
      	
              Category

            	
              Index Debt
      Ratings

            	
              Commitment Fee
      Rate

              (basis
      points)

            	
              Applicable
      Margin

               (basis
      points)

            	
              Utilization Fee
      Rate

              (basis
      points)

            
	
              1

            	
              A3
      / A-

            	
              6.0

            	
              25.0

            	
              5.0

            
	
              2

            	
              Baa1
      / BBB+

            	
              8.0

            	
              35.0

            	
              5.0

            
	
              3

            	
              Baa2
      / BBB

            	
              10.0

            	
              45.0

            	
              5.0

            
	
              4

            	
              Baa3
      / BBB-

            	
              12.5

            	
              55.0

            	
              10.0

            
	
              5

            	
              Ba1
      / BB+

            	
              15.0

            	
              75.0

            	
              12.5

            
	
              6

            	
              <
      Ba1 / BB+

            	
              25.0

            	
              100.0

            	
              25.0

            

    

    

    For
purposes of the foregoing, (i) if neither Moody’s nor S&P shall have in
effect a rating for the Index Debt (other than by reason of the circumstances
referred to in the last sentence of this paragraph), then the Applicable Margin
shall be as set forth in Category 6; (ii) if Moody’s or S&P (but not
both) shall have in effect a rating for the Index Debt, then the Applicable
Margin shall be based on the rating for the Index Debt by the applicable rating
agency; (iii) if both Moody’s and S&P have in effect ratings for the Index
Debt and the ratings established by Moody’s and S&P for the Index Debt shall
fall within different Categories, the Applicable Margin shall be based on the
Category numerically lower (i.e., more favorable to the Borrowers) of the two
ratings unless one of the two ratings is two or more Categories numerically
lower (i.e., more favorable to the Borrowers) than the other, in which case the
Applicable Margin shall be determined by reference to the Category one
numerically higher (i.e., less favorable to the Borrowers) than the Category
numerically lower (i.e., more favorable to the Borrowers) of the two ratings;
and (iv) if the ratings established by Moody’s or S&P for the Index
Debt shall be changed (other than as a result of a change in the rating system
of Moody’s or S&P), (or if either such rating agency that has not been
rating the Index Debt establishes a rating therefor), such change (or new
rating) shall be effective as of the date on which it is first announced by the
applicable rating agency, irrespective of when notice of such change (or new
rating) shall have been furnished by the Company to the Agent and the Lenders
pursuant to Section 5.01 or otherwise.  Each change (or new rating) in
the Applicable Margin shall apply during the period commencing on the effective
date of such change (or new rating) and ending on the date immediately preceding
the effective date of the next such change (or new rating).  If
Moody’s or S&P is rating the Index Debt and its rating system shall change,
or if only one such rating agency is rating the Index Debt and it shall cease to
be in the business of rating corporate debt obligations, the Company,
the

    
      
        
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4

    Borrowers
and the Lenders shall negotiate in good faith to amend this definition to
reflect such changed rating system or the unavailability of ratings from such
rating agency and, pending the effectiveness of any such amendment, the
Applicable Margin shall be determined by reference to the rating most recently
in effect prior to such change or cessation.

     

    “Applicable Swingline
Percentage” means (a) in respect of any funding of Luxembourg Swingline
Loans, 43.75% for each of Citibank N.A., London and JPMorgan Chase Bank, N.A.
and 12.50% for Wachovia Bank N.A., and (b) in respect of any funding of UK
Swingline Loans, 41.77215% for each of Citibank N.A., London and JPMorgan Chase
Bank, N.A., and 16.4557% for Wachovia Bank N.A.

     

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

     

    “Assigned Dollar
Value” has the meaning assigned to such term in Section
2.06.

     

    “Assignment and
Assumption” means an assignment and assumption entered into by a Lender
and an assignee (with the consent of any party whose consent is required by
Section 9.04), and accepted by the Facility Agent, in the form of
Exhibit A or any other form approved by the Facility Agent.

     

    “Augmenting Lender”
has the meaning set forth in Section 2.06.

     

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

     

    “B/A” and “Banker’s Acceptances”
means a bill of exchange, including a depository bill issued in accordance with
the Depository Bills and Notes Act (Canada), denominated in Canadian Dollars,
drawn by the Canadian Borrower and accepted by a Lender in accordance with the
terms of this Agreement.

     

    “B/A Drawing” means
B/As accepted and purchased on the same date and as to which a single Contract
Period is in effect including any B/A Equivalent Loans accepted and purchased on
the same date and as to which a single Contract Period is in
effect.  For greater certainty, all provisions of this Agreement which
are applicable to B/As are also applicable, mutatis mutandis, to B/A Equivalent
Loans.

     

    “B/A Equivalent Loan”
has the meaning assigned to such term in Section 2.04.

     

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

     

    “Borrowers” means the
UK Borrower, the Luxembourg Borrower and the Canadian
Borrower.

     

    
      
        
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5

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

     

    “Borrowing Request”
means a request by a Borrower for a Revolving Borrowing in accordance with
Section 2.03 or a Swingline Borrowing pursuant to Section
2.05.

     

    “Business Day” means
any day that is not a Saturday, Sunday or other day on which commercial banks in
London or New York City are authorized or required by law to remain closed;
provided that,
(a) when used in connection with a LIBOR Loan, the term “Business Day” shall
also exclude any day on which banks are not open for dealings in deposits in the
applicable currency in the London interbank market, and (b) when used in
connection with any Loan or B/A made to or drawn by the Canadian Borrower, the
term “Business Day” shall also exclude any day on which banks are not open for
business in Toronto.

     

    “Canadian Alternate Base
Rate” means, for any day, a rate per annum equal to the greater of (a)
the interest rate per annum publicly announced from time to time by the Canadian
Facility Agent as its reference rate in effect on such day at its principal
office in Toronto for determining interest rates applicable to commercial loans
denominated in Canadian Dollars in Canada (each change in such reference rate
being effective from and including the date such change is publicly announced as
being effective) and (b) the interest rate per annum equal to the sum of (i) the
CDOR Rate on such day (or, if such rate is not so reported on the Reuters Screen
CDOR Page, the average of the rate quotes for bankers’ acceptances denominated
in Canadian Dollars with a term of 30 days received by the Canadian Facility
Agent at approximately 10:00 a.m., Toronto time, on such day (or, if such day is
not a Business Day, on the next preceding Business Day) from one or more banks
of recognized standing selected by it) and (ii) 0.50% per annum.

     

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

     

    “Canadian Borrower”
means Yum! Restaurants International (Canada) LP, a limited partnership
organized and existing under the laws of the Province of Ontario,
Canada.

     

    “Canadian Dollars” or
“Cdn.$” means
lawful currency of Canada.

     

    “Canadian Facility
Agent” means Citibank N.A., Canadian Branch in its capacity as facility
sub-agent for the Lenders hereunder.

     

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

    
      
        
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6

    “Canadian Revolving Credit
Exposure” means, with respect to any Lender at any time, the sum of (a)
the aggregate principal amount of such Lender’s Canadian Revolving Loans
denominated in U.S. Dollars outstanding at such time, (b) the Assigned Dollar
Value of the aggregate principal amount of such Lender’s Canadian Revolving
Loans denominated in Canadian Dollars outstanding at such time and (c) the
Assigned Dollar Value of the aggregate face amount of the B/As accepted by such
Lender and outstanding at such time.

     

    “Canadian Resident”
means at any time, a Person who at that time (i) is resident in Canada for
purposes of the Income Tax Act (Canada) or (ii) is an authorized foreign bank
which at all times holds all of its interest in the Loans made to the Canadian
Borrower hereunder in the course of its Canadian banking business for the
purposes of the Income Tax Act (Canada).

     

    “Canadian Revolving
Loan” means a Loan made pursuant to Section 2.01(a).

     

    “Capital Expenditures”
means, for any period, (a) the additions to property, plant and equipment
and other capital expenditures of the Company and its Included Subsidiaries that
are (or would be) set forth in a consolidated statement of cash flows of the
Company for such period prepared in accordance with GAAP (except for the
exclusion of Excluded Subsidiaries) and (b) Capital Lease Obligations
incurred by the Company and its Included Subsidiaries during such period;
provided that consideration paid for Permitted Acquisitions shall not be
construed to constitute Capital Expenditures.

     

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

     

    “CDOR Rate” means, on
any date, an interest rate per annum equal to the average discount rate
applicable to bankers’ acceptances denominated in Canadian Dollars with a term
of 30 days (for purposes of the definition of “Canadian Alternate Base
Rate”) or with a term equal to the Contract Period of the relevant B/As
(for purposes of the definition of “Discount Rate”)
appearing on the Reuters Screen CDOR Page (or on any successor or substitute
page of such Screen, or any successor to or substitute for such Screen,
providing rate quotations comparable to those currently provided on such page of
such Screen, as determined by the Canadian Facility Agent from time to time
acting reasonably) at approximately 10:00 a.m., Toronto time, on such date (or,
if such date is not a Business Day, on the next preceding Business
Day)

     

    “Change in Control”
means (a) the acquisition of ownership, directly or indirectly,
beneficially or of record, by any Person or group (within the meaning of the
Securities Exchange Act of 1934 and the rules of the Securities and Exchange
Commission thereunder as in effect on the date hereof), of Equity Interests
representing

     

    
      
        
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7

    more than
30% of the aggregate ordinary voting power represented by the issued and
outstanding Equity Interests of the Company; (b) occupation of a majority
of the seats (other than vacant seats) on the board of directors of the Company
by Persons who were neither (i) nominated by the board of directors of the
Company nor (ii) appointed by directors so nominated; or (c) the
acquisition of direct or indirect Control of the Company by any Person or
group.

     

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

     

    “Class”, (a) when
used in reference to any Loan or Borrowing, refers to whether such Loan, or the
Loans comprising such Borrowing, are Canadian Revolving Loans, Luxembourg
Revolving Loans or UK Revolving Loans, and (b) when used in reference to any
Borrower, refers to whether such Borrower is the Canadian Borrower, the
Luxembourg Borrower or the UK Borrower.

     

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

     

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

     

    “Commitment” means,
with respect to each Lender, the commitment of such Lender to make Revolving
Loans and Swingline Loans hereunder and to accept and purchase or arrange for
the purchase of B/As hereunder for the Canadian Borrower, expressed as an amount
representing the maximum aggregate amount of such Lender’s Revolving Credit
Exposure hereunder, as such commitment may be (a) reduced from time to time
pursuant to Section 2.09 or
(b)  reduced or increased from time to time pursuant to assignments by or
to such Lender pursuant to Section 9.04.  The
initial amount of each Lender’s Commitment is set forth on Schedule 2.01 as
of the Effective Date, or in the Assignment and Assumption pursuant to which
such Lender shall have assumed its Commitment, as applicable.  The
initial aggregate amount of the Lenders’ Commitments as of the Effective Date is
US$350,000,000.

     

    “Company” means Yum!
Brands, Inc., a North Carolina corporation.

     

    “Consenting Lender”
has the meaning set forth in Section 2.09(d).

     

    “Consolidated EBITDA”
means, for any Person for any period, Consolidated Net Income of such Person for
such period, plus, without duplication and to the extent deducted from revenues
in determining such Consolidated Net Income, the sum of (a) the aggregate
amount of Consolidated Interest Expense of such Person for such period,
(b) the aggregate amount of income tax expense of such Person for
such

    
      
        
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8

    period,
(c) all amounts attributable to depreciation and amortization of such
Person for such period, (d) all non-cash charges and non-cash losses of
such Person during such period and (e) all losses from the sale of assets
outside the ordinary course of business of such Person during such period and
minus, without duplication and to the extent added to revenues in determining
such Consolidated Net Income for such period, all gains from the sale of assets
outside the ordinary course of business of such Person during such period, all
as determined on a consolidated basis with respect to such Person and its
subsidiaries in accordance with GAAP (except, in the case of the Company, for
the exclusion of Excluded Subsidiaries).  Unless the context otherwise
requires, references to “Consolidated EBITDA” are to Consolidated EBITDA of the
Company and the Included Subsidiaries.

     

    “Consolidated EBITDAR”
means, for any Person for any period, the sum of Consolidated EBITDA of such
Person for such period and Rental Expense of such Person for such
period.  Unless the context otherwise requires, references to
“Consolidated EBITDAR” are to Consolidated EBITDAR of the Company and the
Included Subsidiaries.

     

    “Consolidated
Indebtedness” means, as of any date of determination, without duplication
(a) the aggregate principal amount of Indebtedness of the Company and the
Included Subsidiaries outstanding as of such date (including Indebtedness of
Excluded Subsidiaries to the extent Guaranteed by the Company or any Included
Subsidiary), plus (b) the Securitization Amount as of such date, minus
(c) the aggregate amount of cash and Permitted Investments (other than any
cash and Permitted Investments that are subject to a Lien) owned by the Company
and the Included Subsidiaries as of such date, determined on a consolidated
basis in accordance with GAAP (except for the exclusion of Excluded
Subsidiaries); provided that, for
purposes of this definition, the term “Indebtedness” shall exclude obligations
as an account party in respect of letters of credit to the extent that such
letters of credit have not been drawn upon.

     

    “Consolidated Interest
Expense” means, for any Person for any period, the interest expense, both
expensed and capitalized (including the interest component in respect of Capital
Lease Obligations), accrued or paid by such Person during such period,
determined on a consolidated basis with respect to such Person and its
Subsidiaries in accordance with GAAP (except, in the case of the Company, for
the exclusion of Excluded Subsidiaries); provided that interest expense of an
Excluded Subsidiary shall be deemed to be interest expense of the Company to the
extent such interest expense relates to Indebtedness to the extent Guaranteed by
the Company or an Included Subsidiary.  Unless the context otherwise
requires, references to “Consolidated Interest Expense” are to Consolidated
Interest Expense of the Company and the Included Subsidiaries.

     

    “Consolidated Net
Income” means, for any Person for any period, net income or loss of such
Person for such period determined on a consolidated basis with respect to such
Person and its subsidiaries in accordance with GAAP; provided that, in the case
of the Company, there shall be excluded (a) the income of any Person (other
than a Foreign Subsidiary) in which any other Person (other than the Company or
any

    
      
        
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9

    

    Domestic
Subsidiary or any director holding qualifying shares in compliance with
applicable law) has a joint interest, except to the extent of the Attributable
Income (as defined below) of such Person, (b) the income of any Excluded
Subsidiary, except to the extent of the amount of dividends or other
distributions (including distributions made as a return of capital or repayment
of principal of advances) actually paid to the Company or any Included
Subsidiaries by such Excluded Subsidiary during such period and (c) the
income (or loss) of any Person accrued prior to the date it becomes a Subsidiary
or is merged into or consolidated with the Company or any of the Subsidiaries or
the date such Person’s assets are acquired by the Company or any of the
Subsidiaries.  Unless the context otherwise requires, references to
“Consolidated Net Income” are to Consolidated Net Income of the Company and the
Included Subsidiaries.  For purposes hereof, “Attributable Income”
means, for any period, (i) in the case of any Domestic Subsidiary at least
90% of the Equity Interests in which are owned (directly or indirectly) by the
Company, a portion of the net income of such Subsidiary for such period equal to
the Company’s direct or indirect ownership percentage of the Equity Interests of
such Subsidiary or (ii) in the case of any Domestic Subsidiary less than
90% of the Equity Interests in which are owned (directly or indirectly) by the
Company, the amount of dividends or other distributions (including distributions
made as a return of capital or repayment of principal of advances) actually paid
by such Subsidiary to the Company or a wholly owned Domestic
Subsidiary.

     

    “Consolidated Net Tangible
Assets” means, with respect to the Company as of any date, the total
amount of assets (less applicable valuation allowances) after deducting
(a) all current liabilities (excluding (i) the amount of liabilities
which are by their terms extendable or renewable at the option of the obligor to
a date more than 12 months after the date as of which the amount is being
determined, (ii) the current portion of long-term Indebtedness and
(iii) loans outstanding under the Existing Company Credit Agreement) and
(b) all goodwill, tradenames, trademarks, patents, unamortized debt
discount and expense and other like intangible assets, all as set forth on the
most recent balance sheet of the Company and its consolidated Subsidiaries
included in financial statements of the Company delivered to the Facility Agent
on or prior to such date of determination pursuant to clause (a) or (b) of
Section 5.01 and determined on a consolidated basis in accordance with
GAAP.

     

    “Contract Period”
means, with respect to any B/A, the period commencing on the date such B/A is
issued and accepted and ending on the date 30, 60, 90 or 180 days (or, with the
consent of each Lender, any other number of days) thereafter, as the Canadian
Borrower may elect; provided that if such
Contract Period would end on a day other than a Business Day, such Contract
Period shall be extended to the next succeeding Business Day.

     

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

     

    “Declining Lender” has
the meaning set forth in Section 2.09(d).

    
      
        
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10

    

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

     

    “Denomination Date”
means, in relation to any Alternative Currency Borrowing, the date that is three
Business Days before the date such Borrowing is made.

     

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

     

    “Discount Proceeds”
means, with respect to any B/A, an amount (rounded upward, if necessary, to the
nearest Cdn.$.01) calculated by multiplying (a) the face amount of such B/A
by (b) the quotient obtained by dividing (i) one by (ii) the sum of
(A) one and (B) the product of (x) the Discount Rate (expressed
as a decimal) applicable to such B/A and (y) a fraction of which the
numerator is the Contract Period applicable to such B/A and the denominator is
365, with such quotient being rounded upward or downward to the fifth decimal
place and .000005 being rounded upward.

     

    “Discount Rate” means,
with respect to a B/A being accepted and purchased on any day, (a) for a
Lender which is a Schedule I Bank, (i) the CDOR Rate applicable to
such B/A or (ii) if the discount rate for a particular Contract Period is
not quoted on the Reuters Screen CDOR Page, the arithmetic average (as
determined by the Canadian Facility Agent) of the percentage discount rates
(expressed as a decimal and rounded upward, if necessary, to the nearest 1/100
of 1%) quoted to the Facility Agent by the Schedule I Reference Banks as
the percentage discount rate at which each such bank would, in accordance with
its normal practices, at approximately 10:00 a.m., Toronto time, on such
day, be prepared to purchase bankers’ acceptances accepted by such bank having a
face amount and term comparable to the face amount and Contract Period of such
B/A, and (b) for a Lender which is a Non-Schedule I Bank, the lesser of
(i) the CDOR Rate applicable to such B/A plus 0.10% per annum and
(ii) the arithmetic average (as determined by the Canadian Facility Agent)
of the percentage discount rates (expressed as a decimal and rounded upward, if
necessary, to the nearest 1/100 of 1%) quoted to the Canadian Facility Agent by
the Non-Schedule I Reference Banks as the percentage discount rate at which
each such bank would, in accordance with its normal practices, at approximately
10:00 a.m., Toronto time, on such day, be prepared to purchase bankers’
acceptances accepted by such bank having a face amount and term comparable to
the face amount and Contract Period of such B/A.

     

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

     

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

     

     “Environmental Laws”
means all laws, rules, regulations, codes, ordinances, orders, decrees,
judgments, injunctions or binding agreements issued, promulgated or entered into
by or with any Governmental Authority, relating in any way

     

    
      
        
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1

    to the
environment, preservation or reclamation of natural resources, the presence,
management, Release or threatened Release of any Hazardous Material or to health
and safety matters.

     

    “Environmental
Liability” means any liability, contingent or otherwise (including any
liability for damages, costs of environmental compliance, investigation or
remediation, fines, penalties or indemnities), of the Company or any Subsidiary
directly or indirectly resulting from or based upon (a) violation of any
Environmental Law, (b) the generation, use, handling, transportation,
storage, treatment or disposal of any Hazardous Materials, (c) exposure to
any Hazardous Materials, (d) the presence, Release or threatened Release of
any Hazardous Materials or (e) any contract, agreement or other consensual
arrangement pursuant to which liability is assumed or imposed with respect to
any of the foregoing.

     

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

     

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

     

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

     

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

     

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

     

    
      
        
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12

    

    “Excluded Equity
Interests” means, with respect to any Person, any Equity Interest that by
its terms or otherwise (a) matures or is subject to mandatory redemption or
repurchase pursuant to a sinking fund obligation or otherwise; (b) is
convertible into or exchangeable or exercisable for Indebtedness or any Excluded
Equity Interest at the option of the holder thereof; or (c) may be required to
be redeemed or repurchased at the option of the holder thereof, in whole or in
part.

     

    “Excluded Subsidiary”
means (a) a Foreign Subsidiary of which securities or other ownership interests
representing less than 80% of the outstanding capital stock or other equity
interests, as the case may be, are, at the time any determination is being made,
beneficially owned, whether directly or indirectly, by the Company or (b) a
Non-Controlled Subsidiary.

     

    “Excluded Taxes”
means, with respect to the Facility Agent, the Canadian Facility Agent, any
Lender or any other recipient of any payment to be made by or on account of any
obligation of any Borrower hereunder, (a) income or franchise taxes imposed
on (or measured by) its net income by the jurisdiction under the laws of which
such recipient is organized or in which its principal office is located or, in
the case of any Lender, in which its applicable lending office is located,
(b) any branch profits taxes or any similar tax imposed by any jurisdiction
in which the recipient is located and (c) in the case of a Foreign Lender
(and, for purposes of subsection (c)(x)(iii) of this definition, any Lender)
(other than an assignee pursuant to a request by the Company under
Section 2.19(b)), any withholding tax that is imposed on amounts payable to
such Lender (x) at the time such Lender (i) becomes a party to this Agreement,
(ii) designates a new lending office or (iii) in respect of any obligation
of the Canadian Borrower where such Lender is not a Canadian Resident (pursuant
to the definition of such term in effect at the Effective Date) or (y)
attributable to such Foreign Lender’s failure to comply with
Section 2.17(e) or Section 2.17(f), except and only to the extent that such
Foreign Lender (or its assignor, if any) was entitled, at the time of
designation of a new lending office (or assignment), to receive additional
amounts from the applicable Borrower with respect to such withholding tax
pursuant to Section 2.17(a).  For the purposes of item (c) above,
a withholding tax includes any Tax that a Lender is required to pay pursuant to
paragraph 212(1)(b) of the Income Tax Act (Canada).

     

    “Existing Company Credit
Agreement” means (i) the Amended and Restated Credit Agreement dated as
of September 7, 2004, among the Company, the lenders party thereto and JPMorgan
Chase Bank, N.A., as administrative agent or (ii) its replacement pursuant to an
amendment and restatement thereof, among the Company, the Subsidiaries of the
Company party thereto, the lenders party thereto and JPMorgan Chase Bank, N.A.,
as administrative agent.

     

    “Existing Credit
Agreement” means the Credit Agreement dated as of November 8, 2005, as
amended and restated as of September 15, 2006, among the Company, the Borrowers,
the lenders party thereto, the Facility Agent and the Canadian Facility
Agent.

     

    “Existing Maturity
Date” has the meaning set forth in Section 2.09(d).

    
      
        
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13

    

    “Extension Date” has
the meaning set forth in Section 2.09(d).

     

    “Facility Agent” means
Citibank International plc, in its capacity as facility agent for the Lenders
hereunder.

     

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

     

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

     

    “Fixed Charge Coverage
Ratio” means, for any period, the ratio of (i) Consolidated EBITDAR
of the Company for such period minus Capital Expenditures for such period to
(ii) the sum of Consolidated Interest Expense of the Company for such
period plus Rental Expense of the Company for such period.

     

    “Foreign Lender”
means, in respect of any payments to be made by or on account of any obligation
of any Borrower hereunder,  any Lender that is organized under the
laws of a jurisdiction other than the jurisdiction in which such Borrower is
organized.

     

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

     

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

     

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

     

    “Guarantee” of or by
any Person (the “guarantor”) means any
obligation, contingent or otherwise, of the guarantor guaranteeing or having the
economic effect of guaranteeing any Indebtedness or other obligation of any
other Person (the “primary obligor”) in
any manner, whether directly or indirectly, and including any obligation of the
guarantor, direct or indirect, (a) to purchase or pay (or advance or supply
funds for the purchase or payment of) such Indebtedness or other obligation or
to purchase (or to advance or supply funds for the purchase of) any security for
the payment thereof, (b) to purchase or lease property, securities or
services for the purpose of assuring the owner of such Indebtedness or other
obligation of the payment thereof, (c) to maintain working

     

    
      
        
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14

    

    capital,
equity capital or any other financial statement condition or liquidity of the
primary obligor so as to enable the primary obligor to pay such Indebtedness or
other obligation or (d) as an account party in respect of any letter of
credit or letter of guaranty issued to support such Indebtedness or obligation;
provided, that
the term Guarantee shall not include endorsements for collection or deposit in
the ordinary course of business.

     

    “Guarantee Agreement”
means the Guarantee Agreement substantially in the form of Exhibit B among
the Borrowers, the Company, the Guarantors and the Facility Agent.

     

    “Guarantors” means the
Company, the Initial Guarantors and any other Subsidiaries that become parties
to the Guarantee Agreement.

     

    “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 or byproducts, asbestos or asbestos-containing materials,
polychlorinated biphenyls, radon gas, infectious or medical wastes and all other
substances or wastes of any nature regulated pursuant to any Environmental
Law.

     

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

     

    “Included Subsidiary”
means any Subsidiary that is not an Excluded Subsidiary.

     

    “Indebtedness” of any
Person means, without duplication, (a) all obligations of such Person for
borrowed money or with respect to deposits or advances of any kind, (b) all
obligations of such Person evidenced by bonds, debentures, notes or similar
instruments, (c) all obligations of such Person upon which interest charges
are customarily paid, (d) all obligations of such Person under conditional
sale or other title retention agreements relating to property acquired by such
Person, (e) all obligations of such Person in respect of the deferred
purchase price of property or services (excluding current accounts payable
incurred in the ordinary course of business), (f) all Indebtedness of
others secured by (or for which the holder of such Indebtedness has an existing
right, contingent or otherwise, to be secured by) any Lien on property owned or
acquired by such Person, whether or not the Indebtedness secured thereby has
been assumed, (g) all Guarantees by such Person of outstanding Indebtedness
of others (other than Guarantees of contingent lease payments related to sales
of restaurants by the Company and the Subsidiaries or their predecessors in
interest (howsoever effected)), (h) all Capital Lease Obligations of such
Person, (i) all obligations, contingent or otherwise, of such Person as an
account party in respect of letters of credit and letters of guaranty and
(j) all obligations, contingent or otherwise, of such Person in respect of
bankers’ acceptances.  The Indebtedness of any Person shall include
the Indebtedness of any other entity (including any partnership in which such
Person is a general partner) to the extent such Person is liable therefor as a
result of such Person’s ownership interest in or other

    
      
        
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    relationship
with such entity, except to the extent the terms of such Indebtedness provide
that such Person is not liable therefor.

     

    “Indemnified Taxes”
means Taxes other than Excluded Taxes.

     

    “Index Debt” means
(a) indebtedness in respect of the obligations of the Company under the
Existing Company Credit Agreement or, if such indebtedness is not rated by
neither Moody’s nor S&P, then (b) senior unsecured, long-term
indebtedness for borrowed money of the Company that is not guaranteed by any
other Person or subject to any other credit enhancement (regardless of whether
there is any such indebtedness outstanding).

     

    “Information
Memorandum” means the Confidential Information Memorandum dated
October 2007 relating to the Company, the Borrowers and the
Transactions.

     

    “Initial Guarantors”
means the Subsidiaries listed on Schedule A.

     

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

     

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

     

    “Interest Period”
means (a) with respect to any LIBOR Borrowing that is not a Swingline Borrowing,
the period commencing on the date of such Borrowing and ending on the
numerically corresponding day in the calendar month that is one, two, three or
six months thereafter (or with the consent of each participating Lender,
such other number of months or days thereafter) as the applicable Borrower may
elect, and (b) with respect to any LIBOR Swingline Borrowing, the period
commencing on the date of such Borrowing and ending such number of days (not
exceeding seven days) thereafter as the applicable Borrower may elect; provided that
(i) if any Interest Period would end on a day other than a Business Day,
such Interest Period shall be extended to the next succeeding Business Day
unless (except in the case of a LIBOR Swingline Borrowing) such next succeeding
Business Day would fall in the next calendar month, in which case such Interest
Period shall end on the next preceding Business Day and (ii) any Interest
Period with a duration measured in months and that commences on the last
Business Day of a calendar month (or on a day for which there is no numerically
corresponding day in the last calendar month of such Interest Period) shall end
on the last Business Day of the last calendar month of such Interest
Period.  For purposes hereof, the date of a Borrowing initially shall
be the date on which such Borrowing is made and thereafter shall be the
effective date of the most recent conversion or continuation of such
Borrowing.

    
      
        
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16

    “Lead Arrangers” means
Citigroup Global Markets Limited and J.P. Morgan Securities Inc., in their
capacities as joint mandated lead arrangers hereunder.

     

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

     

    “Leverage Ratio”
means, on any date, the ratio of (a) Consolidated Indebtedness as of such
date to (b) Adjusted EBITDA for the period of four consecutive fiscal
quarters of the Company ended on such date (or, if such date is not the last day
of a fiscal quarter, ended on the last day of the fiscal quarter of the Company
most recently ended prior to such date).

     

    “LIBO Rate” means,
with respect to any LIBOR Borrowing for any Interest Period, (a) in the case of
a Revolving Borrowing, the London interbank offered rate per annum determined by
reference to the British Bankers’ Association Interest Settlement Rates for
deposits with a maturity comparable to such Interest Period denominated in the
currency in which such Borrowing is denominated as reflected on the applicable
page of the Telerate Screen (or on any successor or substitute page of such
service, providing rate quotations comparable to those currently provided on
such page of such service, as determined by the Facility Agent from time to time
for purposes of providing quotations of interest rates applicable to deposits in
the currency in which such Loan or Borrowing is denominated in the London
interbank market) at approximately 11:00 a.m., London time, two Business
Days prior to the commencement of such Interest Period, and (b) in the case of a
Swingline Borrowing, the arithmetic mean of the rates (rounded upwards to four
decimal places) as supplied to the Facility Agent at its request as quoted by
the applicable Reference Banks to leading banks in the London interbank market
at approximately 11:00 a.m., London time, on the date of commencement of such
Interest Period, for deposits with a maturity comparable to such Interest Period
denominated in the currency in which such Borrowing is
denominated.  In the event that a rate required to be determined
pursuant to clause (a) above with respect to any LIBOR Revolving Borrowing for
any Interest Period is not available at the time of determination for any
reason, then the “LIBO
Rate” with respect to such LIBOR Borrowing for such Interest Period shall
be the arithmetic mean of the rates (rounded upwards to four decimal places) for
deposits with a maturity comparable to such Interest Period denominated in the
currency of such Borrowing, as supplied to the Facility Agent at its request
quoted by the applicable Reference Banks to leading banks in the London
interbank market at approximately 11:00 a.m., London time, two Business
Days prior to the commencement of such Interest Period.

     

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

    
      
        
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17

    

    “Lien” means, with
respect to any asset, (a) any mortgage, deed of trust, lien, pledge,
hypothecation, encumbrance, charge or security interest in, on or of such asset,
(b) the interest of a vendor or a lessor under any conditional sale
agreement, capital lease or title retention agreement (or any financing lease
having substantially the same economic effect as any of the foregoing) relating
to such asset and (c) in the case of securities, any purchase option, call
or similar right of a third party (other than any such rights of a financial
institution under repurchase agreements described in clause (d) of the
definition of “Permitted Investments” entered into with such financial
institution) with respect to such securities.

     

    “Lien Basket Amount”
means, at any time, the sum of (a) the Securitization Amount at such time,
plus (b) the aggregate principal amount of obligations (including
contingent obligations, in the case of Guarantees or letters of credit) at such
time secured by Liens permitted under clause (h) of Section 6.02, plus
(c) the fair market value of all property sold or transferred after the
Effective Date (as defined in the Existing Company Credit Agreement) pursuant to
Sale and Lease-Back Transactions permitted by clause (b) of
Section 6.12.

     

    “Loan Documents” means
this Agreement, the Guarantee Agreement, any promissory notes issued pursuant to
Section 2.10(e).

     

    “Loan Parties” means
the Borrowers and the Guarantors.

     

    “Loan” means any loan
made by a Lender to a Borrower pursuant to this Agreement.

     

    “Luxembourg Borrower”
means Yum! Restaurants International S.à r.l., LLC (U.S. Branch), the U.S.
Branch of a Luxembourg limited liability company, registered to do business as a
foreign corporation in the State of Kentucky.

     

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

     

    “Luxembourg Revolving Credit
Exposure” means, with respect to any Lender at any time, the sum of (a)
the aggregate principal amount of such Lender’s Luxembourg Revolving Loans
outstanding at such time and (b) such Lender’s Luxembourg Swingline Exposure at
such time.

     

    “Luxembourg Revolving
Loan” means a Loan made pursuant to Section 2.01(b).

     

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

     

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

    
      
        
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18

    

    “Mandatory Cost” has
the meaning set forth in Schedule 2.13.

     

    “Material Adverse
Effect” means a material adverse effect on (a) the business, assets,
operations or condition, financial or otherwise, of the Company and the
Subsidiaries taken as a whole, (b) the ability of the Company or any
Borrower to perform any of its obligations under any Loan Document or
(c) the rights and remedies available to the Lenders under any Loan
Document.

     

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

     

    “Maturity Date” means,
with respect to any Class, November 29, 2012, as such date may be extended with
respect to such Class pursuant to Section 2.09.

     

    “Maturity Date Extension
Request” has the meaning set forth in Section 2.09(d).

     

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

     

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

     

    “New Lender” has the
meaning set forth in Section 2.09.

     

    “Non-Controlled
Subsidiary” means any direct or indirect subsidiary of the Company with
respect to which the Company (a) has reasonably determined that it does not
have sufficient operational control over such subsidiary to ensure that such
subsidiary (i) complies with the warranties and covenants applicable to
other Subsidiaries hereunder or (ii) does not take or omit to take any
actions that would constitute or lead to an Event of Default hereunder and
(b) has notified the Facility Agent in writing that such subsidiary is a
“Non-Controlled Subsidiary” hereunder and such notice specifies, in reasonable
detail, the reasons for such a determination as described in clause (a)
above; provided
(A) that no Subsidiary Borrower, Subsidiary Guarantor, or Principal
Domestic Subsidiary shall be a Non-Controlled Subsidiary, (B) no subsidiary
of which securities or other ownership interests representing more than 80% of
the outstanding Equity Interests at the time any determination is being made,
beneficially owned, whether directly or indirectly, by the Company shall be a
Non-Controlled Subsidiary and (C) as of any date of determination, the
Consolidated EBITDAR, calculated for the period of four consecutive fiscal
quarters most recently ended, of all Non-Controlled Subsidiaries (combined)
shall not exceed 7.5% of the Company’s Consolidated EBITDAR for
such

    
      
        
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19

    

    period,
in each case determined as though the Non-Controlled Subsidiaries were Included
Subsidiaries for this purpose.

     

    “Non-Schedule I Bank”
means any Lender in respect of a Canadian Revolving Loan or B/As that is not
named on Schedule I to the Bank Act (Canada).

     

    “Non-Schedule I Reference
Banks” means the Schedule II/III Reference Banks.

     

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

     

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

     

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

     

    “Permitted
Acquisition” means the acquisition by the Company or a Subsidiary of the
assets of a Person constituting a business unit or any Equity Interests of a
Person; provided that (a) immediately after giving effect thereto no
Default shall have occurred and be continuing or would result therefrom,
(b) all transactions related thereto shall be consummated in accordance
with applicable laws, except where the failure to do so, individually or in the
aggregate, would not reasonably be expected to result in a Material Adverse
Effect, (c) in the case of an acquisition of Equity Interests in a Person,
after giving effect to such acquisition, at least 90% of the Equity Interests in
such Person, and any other Subsidiary resulting from such acquisition, shall be
owned directly or indirectly by the Company or any of its wholly owned
Subsidiaries and all actions required to be taken, if any, with respect to each
Subsidiary resulting from such acquisition under Section 5.09 shall be
taken, (d) the Company and its Subsidiaries are in compliance, on a pro
forma basis after giving effect to such acquisition, with the covenants
contained in Sections 6.09 and 6.10 recomputed as of the last day of the most
recently ended fiscal quarter of the Company for which financial statements are
available as if such acquisition had occurred on the first day of each relevant
period for testing such compliance (using Adjusted EBITDA in lieu of
Consolidated EBITDA for the relevant period and including, for purposes of
Section 6.10, pro forma adjustments to Consolidated Interest Expense and
Rental Expense for the relevant period as if such acquisition had occurred on
the first day of such period), (e) the Company has delivered to the
Facility Agent a certificate of a Financial Officer to the effect set forth in
clauses (a), (c) and (d) above, together with all relevant financial information
for the business or entity being acquired and (f) in the case of an acquisition
of a publicly-owned entity, such acquisition shall not have been preceded by an
unsolicited tender offer.

     

    “Permitted
Encumbrances” means:

     

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

    
      
        
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20

    

    (b)
carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s and other like
Liens imposed by law, arising in the ordinary course of business and securing
obligations that are not overdue by more than 30 days or are being
contested in compliance with Section 5.04;

     

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

     

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

     

    (e)
judgment liens in respect of judgments that do not constitute an Event of
Default under clause (l) of Section 7.01; and

     

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

     

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

     

    “Permitted
Investments” means:

     

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

     

    (b)
investments in commercial paper maturing within 270 days from the date of
acquisition thereof and rated, at such date of acquisition, at least A-1 by
S&P or P-1 by Moody’s;

     

    (c)
investments in certificates of deposit, banker’s acceptances and time deposits
maturing within 180 days from the date of acquisition thereof issued or
guaranteed by or placed with, and money market deposit accounts issued or
offered by, any domestic office of any Lender, any Affiliate of any Lender, or
any other commercial bank organized under the laws of the United States of
America or any State thereof (or domestic office of any commercial bank that is
organized under the laws of any country that is a member of the OECD) which has
a combined capital and surplus and undivided profits of not less than
$500,000,000;

     

    (d) fully
collateralized repurchase agreements (i) with a term ending on the next
Business Day for direct obligations of, or obligations the principal of
and

     

    
      
        
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21

    

    interest
on which are unconditionally guaranteed by, the United States of America (or by
any agency thereof to the extent such obligations are backed by the full faith
and credit of the United Sates of America) and entered into with a financial
institution satisfying the criteria described in clause (c) above, or
(ii) with a term of not more than 30 days for securities described in
clause (a) above and entered into with a financial institution satisfying
the criteria described in clause (c) above;

     

    (e)
investments in money market funds (i) with a policy to invest substantially
all their assets in one or more investments described in the foregoing items
(a), (b), (c) and (d) or (ii) having the highest credit rating obtainable
from S&P or from Moody’s;

     

    (f)
investments in (i) any debt securities rated AA- or above by S&P and
Aa3 or above by Moody’s and maturing within one year from the date of
acquisition thereof and (ii) mutual funds with assets of at least
$5,000,000,000 and that invest 100% of their assets in securities described in
clause (a) above or subclause (i) of this clause (f);
and

     

    (g) in
the case of any Foreign Subsidiary, investments by such Subsidiary that are
denominated in U.S. Dollars, Euros or the currency of the jurisdiction where
such Foreign Subsidiary’s principal business activities are conducted and are
available in the principal financial markets of the jurisdiction and otherwise
are comparable (as nearly as practicable) to the investments described above;
provided that,
for purposes of this clause (g), (i) the foregoing clause (a)
shall be deemed to refer to obligations of, or obligations the principal of and
interest on which are unconditionally guaranteed by, the government of the
jurisdiction in which such Foreign Subsidiary is located, in each case maturing
within one year from the date of acquisition thereof, and (ii) commercial
banks referred to in the foregoing clause (c) shall be deemed to include
commercial banks located in the applicable jurisdiction that the applicable
Foreign Subsidiary determines in good faith to be among the most creditworthy
banks available for deposits in the location where such deposits are being
made.

     

    “Permitted Securitization
Transaction” means any sale, assignment or other transfer (or series of
related sales, assignments or other transfers) by the Company or any Subsidiary
of receivables or royalty payments owing to the Company or such Subsidiary or
any interest in any of the foregoing pursuant to a securitization transaction,
together in each case with any collections and other proceeds thereof, any
collection or deposit account related thereto, and any collateral, guarantees or
other property or claims supporting or securing payment by the obligor thereon
of, or otherwise related to, any such receivables or royalty
payments.

     

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

     

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

     

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

     

    “Principal Domestic
Subsidiary” means (a) any Subsidiary organized in the United States
of America whose consolidated assets exceed 5% of the consolidated assets of the
Company and its consolidated Subsidiaries or whose revenues exceed 5% of the
consolidated revenues of the Company and its consolidated Subsidiaries, in each
case as of the end of the most recent fiscal quarter or for the most recently
ended four consecutive fiscal quarters, respectively, or (b) any Subsidiary
that holds any material trademark (including any Kentucky Fried Chicken, KFC,
Pizza Hut, A&W, Long John Silver’s or Taco Bell trademark) for use in the
United States of America or any jurisdiction therein.

     

    “Reference Bank” means
(a) when used in connection with Canadian Revolving Loans or B/As, Schedule I
Reference Banks and Schedule II/III Reference Banks and (b) when used in
connection with UK Revolving Loans, UK Swingline Loans, Luxembourg Revolving
Loans or Luxembourg Swingline Loans, Citibank NA, London, JPMorgan Chase Bank,
N.A., HSBC Bank USA and Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A.
“Rabobank International”, New York Branch.

     

    “Refranchising
Transaction” means a transaction in which the Company or any of its
Subsidiaries sells, transfers, leases or otherwise disposes of assets (excluding
the sale, transfer or disposition of intellectual property, except for licenses
of intellectual property to franchisees or prospective franchisees) comprising
one or more restaurants to the franchisee or prospective franchisee
thereof.

     

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

     

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

     

    “Release” means any
spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting,
escaping, leaching, dumping, disposing or migrating into or through the
environment or any facility, building or structure.

     

    “Rental Expense”
means, for any Person for any period, the minimum rental expense of such Person
deducted in determining Consolidated Net Income of such Person for such
period.  Unless the context otherwise requires, references to “Rental
Expense” are to Rental Expense of the Company and the Included
Subsidiaries.

     

    
      
        
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    “Required Lenders”
means, at any time, Lenders having Revolving Credit Exposures and unused
Commitments representing more than 50% of the sum of the total Revolving Credit
Exposures and unused Commitments at such time.

     

    “Revaluation Date”
means, (a) with respect to an Alternative Currency Borrowing (other than a
CABR Borrowing) or B/A, the last day of each Interest Period or Contract
Period with respect to such Borrowing or B/A and, if the Borrower elects a new
Interest Period prior to the end of the existing Interest Period with respect to
such Borrowing, the date of commencement of such new Interest Period and (b)
with respect to any CABR Borrowing, the last day of each March, June, September
and December.

     

    “Revolving Borrowing”
means a UK Revolving Borrowing, a Luxembourg Revolving Borrowing or a
Canadian Revolving Borrowing.

     

    “Revolving Credit
Exposure” means UK Revolving Credit Exposure, Luxembourg Revolving
Credit Exposure or Canadian Revolving Credit Exposure.

     

    “Revolving Loan” means
a UK Revolving Loan, a Luxembourg Revolving Loan or a Canadian Revolving
Loan.

     

    “S&P” means
Standard & Poor’s.

     

    “Sale and Lease-Back
Transaction” has the meaning assigned to such term in Section
6.11.

     

    “Schedule I Bank”
means any bank named on Schedule I to the Bank Act (Canada).

     

    “Schedule I Reference
Bank” means, where there are two or fewer Lenders in respect of Canadian
Revolving Loans or B/As which are Canadian chartered banks that are Schedule I
Banks, all such Lenders, and where there are more than two such Lenders, two of
such Lenders chosen by the Canadian Facility Agent and the Canadian Borrower and
identified as such by notice from the Canadian Facility Agent to the
Lenders.

     

    “Schedule II/III Reference
Banks” means Citibank, N.A., Canadian Branch and JPMorgan ChaseBank,
N.A., Canada Branch; provided that if
either of such banks ceases to be a Lender or an Affiliate of a Lender, such
bank shall also cease to be a Schedule II/III Reference Bank, and a successor
Schedule II/III Reference Bank shall be chosen by the Canadian Facility Agent
and the Canadian Borrower from the Lenders in respect of Canadian Revolving
Loans or B/As which are not Schedule I Banks and identified as such by notice
from the Canadian Facility Agent to the applicable Lenders.

     

    “Securitization
Amount” means, at any date of determination thereof and in respect of any
Permitted Securitization Transaction, (a) in the case of a Permitted
Securitization Transaction structured as a borrowing of loans secured by
receivables or royalty payments, the outstanding principal amount of
Indebtedness incurred in respect of such Permitted Securitization Transaction
that is secured by such receivables or royalty

    
      
        
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24

    payments
and (b) in the case of a Permitted Securitization Transaction structured as
a sale or other transfer of receivables or royalty payments (other than a sale
or transfer of such receivables or royalty payments to a Subsidiary), the
aggregate amount of cash consideration received by the Company or any of its
Subsidiaries from such sale or transfer, but only to the extent representing the
outstanding equivalent of principal, capital or comparable interests in respect
of such receivables or royalty payments that remain uncollected at such time and
would not be distributed to the Company or a Subsidiary if such Permitted
Securitization Transactions were to be terminated at such time.

     

    “Securitization
Subsidiary” means any Subsidiary that is formed by the Company or any of
its Subsidiaries for the sole purpose of effecting or facilitating a Permitted
Securitization Transaction and that (a) owns no assets other than
receivables, royalty payments and other assets that are related to such
Permitted Securitization Transaction and (b) engages in no business and
incurs no Indebtedness, in each case, other than those related to such Permitted
Securitization Transaction.

     

    “Sold Business” means
any Person, property, business or asset sold, transferred or otherwise disposed
of by the Company or any Subsidiary, other than in the ordinary course of
business.

     

    “Specified Currency”
has the meaning assigned to such term in Section 9.14.

     

    “Spot Exchange Rate”
means, on any day, (a) with respect to any Alternative Currency in relation
to U.S. Dollars, the spot rate at which U.S. Dollars are offered on such day for
such Alternative Currency which appears on page FXFX of the Reuters Screen at
approximately 11:00 a.m., London time and (b) with respect to U.S.
Dollars in relation to any specified Alternative Currency, the spot rate at
which such specified Alternative Currency is offered on such day for U.S.
Dollars which appears on page FXFX of the Reuters Screen at approximately
11:00 a.m., London time.  For purposes of determining the Spot
Exchange Rate in connection with an Alternative Currency Borrowing, such Spot
Exchange Rate shall be determined as of the Denomination Date for such Borrowing
with respect to the transactions in the applicable Alternative Currency that
will settle on the date of such Borrowing.

     

    “Statutory Reserve
Rate” means a fraction (expressed as a decimal), the numerator of which
is the number one and the denominator of which is the number one minus the
aggregate of the maximum reserve percentages (including any marginal, special,
emergency or supplemental reserves) expressed as a decimal established by the
Board to which Citibank, N.A. is subject for eurocurrency funding (currently
referred to as “Eurocurrency Liabilities” in Regulation D of the
Board).  Such reserve percentages shall include those imposed pursuant
to such Regulation D.  LIBOR Loans shall be deemed to constitute
eurocurrency funding and to be subject to such reserve requirements without
benefit of or credit for proration, exemptions or offsets that may be available
from time to time to any Lender under such Regulation D or any comparable
regulation.

    
      
        
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25

    The
Statutory Reserve Rate shall be adjusted automatically on and as of the
effective date of any change in any reserve percentage.

     

    “Sterling” means
lawful currency of the United Kingdom.

     

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

     

    “Subsidiary” means any
subsidiary of the Company; provided that except
for purposes of Sections 3.04, 3.11, 5.01(a), 5.01(b) and 5.01(f), the term
“Subsidiary” shall not include a Non-Controlled Subsidiary.

     

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

     

    “Swingline Lenders”
means Citibank N.A., London, JPMorgan Chase Bank, N.A. and Wachovia Bank
N.A.

     

    “Swingline Loan” means
a UK Swingline Loan or a Luxembourg Swingline Loan.

     

    “System Unit” means
any restaurant operated under the name Kentucky Fried Chicken, KFC, Pizza Hut,
Taco Bell, A&W, Long John Silver’s or any other brand that is acquired and
operated by the Company or a Subsidiary or franchised or licensed by the Company
or a Subsidiary to any of its franchisees or licensees.

     

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

     

    “Transactions” means
the execution, delivery and performance by the Loan Parties of the Loan
Documents, the borrowing of Loans and the use of the proceeds
thereof.

     

    “Type”, when used in
reference to any Loan or Borrowing, refers to whether the rate of interest on
such Loan, or on the Loans comprising such Borrowing, is determined by reference
to the Adjusted LIBO Rate or, in the case of a Canadian Revolving Loan or
Canadian Revolving Borrowing, whether it is B/A or bears interest at the
Canadian Alternate Base Rate.

    
      
        
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    “UK Borrower” means
Yum! Restaurants Holdings, an unlimited liability company organized and existing
under the laws of England and Wales.

     

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

     

    “UK Revolving Credit
Exposure” means, with respect to any Lender at any time, the sum of (a)
the aggregate principal amount of such Lender’s UK Revolving Loans denominated
in U.S. Dollars outstanding at such time, (b) the Assigned Dollar Value of the
aggregate principal amount of such Lender’s UK Revolving Loans denominated in
Sterling outstanding at such time and (c) such Lender’s UK Swingline Exposure at
such time.

     

    “UK Revolving Loan”
means a Loan made pursuant to Section 2.01(c).

     

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

     

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

     

    “U.S. Dollar
Equivalent” means, with respect to an amount of any Alternative Currency
on any date, the amount of U.S. Dollars that may be purchased with such amount
of the Alternative Currency at the Spot Exchange Rate with respect to the
Alternative Currency on such date.

     

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

     

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

     

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

     

    SECTION
1.03.  Terms
Generally.  The definitions of terms herein shall apply equally
to the singular and plural forms of the terms defined.  Whenever the
context may require, any pronoun shall include the corresponding masculine,
feminine and neuter forms.  The words “include”, “includes” and
“including” shall be deemed to be followed by the phrase “without
limitation”.  The word “will” shall be construed to

    
      
        
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27

    

     

    
      have the
same meaning and effect as the word “shall”.  Unless the context
requires otherwise (a) any definition of or reference to any agreement,
instrument or other document herein shall be construed as referring to such
agreement, instrument or other document as from time to time amended,
supplemented or otherwise modified (subject to any restrictions on such
amendments, supplements or modifications set forth herein), (b) any
reference herein to any Person shall be construed to include such Person’s
successors and assigns, (c) the words “herein”, “hereof” and “hereunder”,
and words of similar import, shall be construed to refer to this Agreement in
its entirety and not to any particular provision hereof, (d) all references
herein to Articles, Sections, Exhibits and Schedules shall be construed to refer
to Articles and Sections of, and Exhibits and Schedules to, this Agreement and
(e) the words “asset” and “property” shall be construed to have the same
meaning and effect and to refer to any and all tangible and intangible assets
and properties, including cash, securities, accounts and contract
rights.

    

    
    

     

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

     

     

    ARTICLE
II

     

    The
Credits

     

    SECTION
2.01.  Commitments.  (a)
Subject to the terms and conditions set forth herein, each Lender agrees to make
Canadian Revolving Loans under this Section to the Canadian Borrower
(denominated in U.S. Dollars or Canadian Dollars), including by means of B/A or
B/A Equivalent Loans pursuant to Section 2.04, from time to time during the
Availability Period in an aggregate principal amount that will not result in
(i) such Lender’s Revolving Credit Exposure exceeding such Lender’s
Commitment or (ii) the total Revolving Credit Exposures exceeding the total
Commitments.  Within the foregoing limit and subject to the terms and
conditions set forth herein, the Canadian Borrower may borrow, prepay and
reborrow Canadian Revolving Loans.

     

    (b)  Each
Lender agrees to make Luxembourg Revolving Loans to the Luxembourg Borrower
(denominated in U.S. Dollars) from time to time during the Availability Period
in an aggregate principal amount that will not result in (i) such Lender’s
Revolving Credit Exposure exceeding such Lender’s Commitment or
(ii) the

    
      
        
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28

    total
Revolving Credit Exposures exceeding the total Commitments.  Within
the foregoing limit and subject to the terms and conditions set forth herein,
the Luxembourg Borrower may borrow, prepay and reborrow Luxembourg Revolving
Loans.

     

    (c)  Each
Lender agrees to make UK Revolving Loans to the UK Borrower (denominated in U.S.
Dollars or Sterling) from time to time during the Availability Period in an
aggregate principal amount that will not result in (i) such Lender’s
Revolving Credit Exposure exceeding such Lender’s Commitment or (ii) the
total Revolving Credit Exposures exceeding the total
Commitments.  Within the foregoing limit and subject to the terms and
conditions set forth herein, the UK Borrower may borrow, prepay and reborrow UK
Revolving Loans.

     

    SECTION
2.02.  Loans
and Borrowings.  (a)  Each Revolving Loan shall be
made as part of a Borrowing consisting of Revolving Loans of the same Class and
Type made by the Lenders ratably in accordance with their respective
Commitments.  The failure of any Lender to make any Loan required to
be made by it shall not relieve any other Lender of its obligations hereunder;
provided that
the Commitments of the Lenders are several and no Lender shall be responsible
for any other Lender’s failure to make Loans as required.

     

    (b)  Subject
to Section 2.14, each Revolving Borrowing shall be comprised entirely of
LIBOR Loans as the applicable Borrower may request in accordance herewith,
except that a Canadian Revolving Borrowing denominated in Canadian Dollars may
be a CABR Borrowing.  Each Lender at its option may make any LIBOR
Loan or any Canadian Revolving Loan (including those made by means of B/A or B/A
Equivalent Loans) by causing any domestic or foreign branch or Affiliate of such
Lender to make such Loan (and each Lender that is not a Canadian Resident shall
exercise such option, to the extent it can do so, so that Canadian Revolving
Loans are made by a branch or Affiliate that is a Canadian Resident); provided that any
exercise of such option shall not affect the obligation of the applicable
Borrower to repay such Loan in accordance with the terms of this Agreement and
shall not result in any increased costs under Section 2.15 or any
obligation by the applicable Borrower to make any payment under
Section 2.17 in excess of the amounts, if any, that such Lender would be
entitled to claim under Section 2.15 or 2.17, as applicable, without giving
effect to such change in lending office.

     

    (c)  At
the commencement of each Interest Period for any LIBOR Revolving Borrowing, such
Borrowing shall be in an aggregate amount that is an integral multiple of
US$1,000,000 and not less than US$10,000,000 (or the Alternative Currency
Equivalent).  Each CABR Revolving Borrowing shall be in an aggregate
amount that is an integral multiple of US$1,000,000 and not less than
US$10,000,000 (or the Alternative Currency Equivalent).  Each
Swingline Loan shall be in an amount that is an integral multiple of US$100,000
and not less than US$500,000 (or the Alternative Currency
Equivalent).  Borrowings of more than one Type and Class may be
outstanding at the same time; provided that there
shall not at any time be more than a total of 10 LIBOR Revolving Borrowings of
any Class outstanding.

    
      
        
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29

    (d)  Loans
made pursuant to any Alternative Currency Borrowing shall be made in the
Alternative Currency specified in the applicable Borrowing Request in an
aggregate amount equal to the Alternative Currency Equivalent of the U.S. Dollar
amount specified in such Borrowing Request; provided; that for
purposes of the Borrowing amounts specified in paragraph (c), each Alternative
Currency Borrowing shall be deemed to be in a principal amount equal to its
Assigned Dollar Value.

     

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

     

    SECTION
2.03.  Requests for Revolving
Borrowings.  To request a Revolving Borrowing, the applicable
Borrower shall notify the Facility Agent (and in the case of a Canadian
Revolving Borrowing, the Canadian Facility Agent) in writing of such request by
hand delivery or telecopy not later than 11:00 a.m., London time, three
Business Days before the date of the proposed Borrowing.  Each such
Borrowing Request shall be irrevocable and shall be in a form approved by such
Agent and signed by the applicable Borrower.  Each such Borrowing
Request shall specify the following information in compliance with
Section 2.02:

     

    (i) the
identity of the Borrower;

     

    (ii) the
aggregate amount of such Borrowing (expressed in U.S. Dollars) and the currency
thereof (as permitted by Section 2.01);

     

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

     

    (iv) in
the case of a Canadian Revolving Borrowing, whether such Borrowing is to be a
LIBOR Borrowing (in the case of a Borrowing denominated in Canadian Dollars or
U.S. Dollars) or a CABR Borrowing (in the case of a Borrowing denominated in
Canadian Dollars).

     

    (v) in
the case of a LIBOR Borrowing, the initial Interest Period to be applicable
thereto, which shall be a period contemplated by the definition of the term
“Interest Period”; and

     

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

     

    If no
election as to the Type of Revolving Borrowing is specified, then the requested
Revolving Borrowing shall be a LIBOR Borrowing if denominated in U.S. Dollars or
Sterling, or a CABR Borrowing if denominated in Canadian Dollars.  If
no Interest Period is specified with respect to any requested LIBOR Revolving
Borrowing, then the applicable Borrower shall be deemed to have selected an
Interest Period of one month’s duration.  Promptly following receipt
of a Borrowing Request in accordance with this Section, the applicable Agent
shall advise each participating Lender of the details thereof and of the amount
of such Lender’s Loan to be made as part of the requested
Borrowing.

     

    
      
        
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    SECTION
2.04.  Bankers’
Acceptances.  (a)  Each acceptance and purchase of
B/As of a single Contract Period pursuant to Section 2.01(a) shall be made
ratably by the Lenders in accordance with the amounts of their
Commitments.  The failure of any Lender to accept any B/A required to
be accepted by it shall not relieve any other Lender of its obligations
hereunder; provided that the
Commitments are several and no Lender shall be responsible for any other
Lender’s failure to accept B/As as required.

     

    (b)  The
B/As of a single Contract Period accepted and purchased on any date shall be in
an aggregate amount that is at least equal to the Alternative Currency
Equivalent (in Canadian Dollars) of US$10,000,000 and is an integral multiple of
the Alternative Currency Equivalent (in Canadian Dollars) of
US$1,000,000.  If any Lender’s ratable share of the B/As of any
Contract Period to be accepted on any date would not be an integral multiple of
Cdn.$100,000, the face amount of the B/As accepted by such Lender may be
increased or reduced to the nearest integral multiple of Cdn.$100,000 by the
Canadian Facility Agent in its sole discretion.  B/As of more than one
Contract Period, but not more than 10 Contract Periods, may be outstanding
at the same time.

     

    (c)  To
request an acceptance and purchase of B/As, the Canadian Borrower shall notify
the Canadian Facility Agent of such request in writing by telecopy or hand
delivery not later than 10:00 a.m., Toronto time, one Business Day before the
date of such acceptance and purchase.  Each such request shall be
irrevocable and shall be in a form approved by the Canadian Facility Agent and
signed by the Canadian Borrower.  Each such request shall specify the
following information:

     

    (i) the
aggregate face amount of the B/As to be accepted and purchased;

     

    (ii) the
date of such acceptance and purchase, which shall be a Business
Day;

     

    (iii) the
Contract Period to be applicable thereto, which shall be a period contemplated
by the definition of the term “Contract Period” (and which shall in no event end
after the Maturity Date); and

     

    (iv) the
location and number of the Canadian Borrower’s account to which the applicable
Discount Proceeds (net of applicable acceptance fees) are to be disbursed, which
shall comply with the requirements of Section 2.07.

     

    If no
Contract Period is specified with respect to any requested acceptance and
purchase of B/As, then the Canadian Borrower shall be deemed to have selected a
Contract Period of 30 days’ duration.

     

    Promptly
following receipt of a request in accordance with this paragraph, the Canadian
Facility Agent shall advise the Facility Agent and each Lender of the details
thereof and of the amount of B/As to be accepted and purchased by such
Lender.

     

    (d)  The
Canadian Borrower hereby appoints each Lender as its attorney to sign and
endorse on its behalf, manually or by facsimile or mechanical signature, as and
when deemed necessary by such Lender, blank forms of B/As, each such Lender
hereby

    
      
        
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31

    

    agreeing
that it will not sign or endorse B/As in excess of those required in connection
with B/A Drawings that have been requested by the Canadian Borrower
hereunder.  It shall be the responsibility of each Lender to maintain
an adequate supply of blank forms of B/As for acceptance under this
Agreement.  The Canadian Borrower recognizes and agrees that all B/As
signed and/or endorsed on its behalf by any Lender in accordance with the terms
and conditions of this Agreement shall bind the Canadian Borrower as fully and
effectually as if manually signed and duly issued by authorized officers of the
Canadian Borrower.  Each Lender is hereby authorized to issue such
B/As endorsed in blank in such face amounts as may be determined by such Lender;
provided that the aggregate face amount thereof is equal to the aggregate face
amount of B/As required to be accepted by such Lender.  No Lender
shall be liable for any damage, loss or claim arising by reason of any loss or
improper use of any such instrument unless such loss or improper use results
from the bad faith, gross negligence or willful misconduct of such
Lender.  Each Lender shall maintain a record with respect to B/As
(i) received by it from the Canadian Facility Agent in blank hereunder,
(ii) voided by it for any reason, (iii) accepted and purchased by it
hereunder and (iv) canceled at their respective maturities.  Each
Lender further agrees to retain such records in the manner and for the periods
provided in applicable provincial or federal statutes and regulations of Canada
and to provide such records to the Canadian Borrower upon its request and at its
expense.  Upon request by the Canadian Borrower, a Lender shall cancel
all forms of B/A that have been pre-signed or pre-endorsed on behalf of the
Canadian Borrower and that are held by such Lender and are not required to be
issued pursuant to this Agreement.

     

    (e)  Drafts
of the Canadian Borrower to be accepted as B/As hereunder shall be signed as set
forth in paragraph (d) above.  Notwithstanding that any Person
whose signature appears on any B/A may no longer be an authorized signatory for
any of the Lenders or Canadian Borrower at the date of issuance of such B/A,
such signature shall nevertheless be valid and sufficient for all purposes as if
such authority had remained in force at the time of such issuance and any such
B/A so signed and properly completed in accordance with the terms and conditions
of this Agreement shall be binding on the Canadian Borrower.

     

    (f)  Upon
acceptance of a B/A by a Lender, such Lender shall purchase such B/A from the
Canadian Borrower at the Discount Rate for such Lender applicable to such B/A
accepted by it and provide to the Canadian Facility Agent the Discount Proceeds
for the account of such Canadian Borrower as provided in
Section 2.07.  The acceptance fee payable by the Canadian
Borrower to a Lender under Section 2.12 in respect of each B/A accepted by
such Lender shall be set off against the Discount Proceeds payable by such
Lender under this paragraph.  Notwithstanding the foregoing, in the
case of any B/A Drawing resulting from the conversion or continuation of a B/A
Drawing or Canadian Revolving Loan pursuant to Section 2.01, the net amount
that would otherwise be payable to the Canadian Borrower by each Lender pursuant
to this paragraph will be applied as provided in
Section 2.08(f).

     

    (g)  Each
Lender may at any time and from time to time hold, sell, rediscount or otherwise
dispose of any or all B/A’s accepted and purchased by it.

     

    
      
        
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    (h)  Each
B/A accepted and purchased hereunder shall mature at the end of the Contract
Period applicable thereto.

     

    (i)  The
Canadian Borrower waives presentment for payment and any other defense to
payment of any amounts due to a Lender in respect of a B/A accepted and
purchased by it pursuant to this Agreement which might exist solely by reason of
such B/A being held, at the maturity thereof, by such Lender in its own right
and the Canadian Borrower agrees not to claim any days of grace if such Lender
as holder sues the Canadian Borrower on the B/A for payment of the amounts
payable by the Canadian Borrower thereunder.  On the last day of the
Contract Period of a B/A, or such earlier date as may be required pursuant to
the provisions of this Agreement, the Canadian Borrower shall pay the Lender
that has accepted and purchased such B/A the full face amount of such B/A, and
after such payment the Canadian Borrower shall have no further liability in
respect of such B/A and such Lender shall be entitled to all benefits of, and be
responsible for all payments due to third parties under, such B/A.

     

    (j)  At
the option of the Canadian Borrower and any Lender, B/As under this Agreement to
be accepted by that Lender may be issued in the form of depository bills for
deposit with The Canadian Depository for Securities Limited pursuant to the
Depository Bills and Notes Act (Canada).  All depository bills so
issued shall be governed by the provisions of this
Section 2.04.

     

    (k)  If
a Lender is not a chartered bank under the Bank Act (Canada) or if a Lender
notifies the Canadian Facility Agent in writing that it is otherwise unable to
accept B/As, such Lender will, instead of accepting and purchasing B/As, make a
Loan (a “B/A
Equivalent Loan”) to the Canadian Borrower in the amount and for the same
term as each draft which such Lender would otherwise have been required to
accept and purchase hereunder.  Each such Lender will provide to the
Canadian Facility Agent the Discount Proceeds of such B/A Equivalent Loan for
the account of the Canadian Borrower in the same manner as such Lender would
have provided the Discount Proceeds in respect of the draft which such Lender
would otherwise have been required to accept and purchase
hereunder.  Each such B/A Equivalent Loan will bear interest at the
same rate that would result if such Lender had accepted (and been paid an
acceptance fee) and purchased (at the applicable Discount Rate) a B/A for the
relevant Contract Period (it being the intention of the parties that each such
B/A Equivalent Loan shall have the same economic consequences for the Lenders
and the Canadian Borrower as the B/A that such B/A Equivalent Loan
replaces).  All such interest shall be paid in advance on the date
such B/A Equivalent Loan is made, and will be deducted from the principal amount
of such B/A Equivalent Loan in the same manner in which the Discount Proceeds of
a B/A would be deducted from the face amount of the B/A.  Subject to
the repayment requirements of this Agreement, on the last day of the relevant
Contract Period for such B/A Equivalent Loan, the Canadian Borrower shall be
entitled to convert each such B/A Equivalent Loan into another type of Loan, or
to roll over each such B/A Equivalent Loan into another B/A Equivalent Loan, all
in accordance with the applicable provisions of this Agreement.

     

    
      
        
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33

    (l)  Notwithstanding
any provision hereof but subject to Section 2.11(b), the Canadian Borrower
may not prepay any B/A Drawing other than on the last day of its Contract
Period.

     

    (m)  For
greater certainty, all provisions of this Agreement which are applicable to B/As
shall also be applicable, mutatis mutandis, to B/A
Equivalent Loans.

     

    SECTION
2.05.  Swingline
Loans.  (a)  Subject to the terms and conditions set
forth herein, the Swingline Lenders hereby agree to make UK Swingline Loans
(denominated in U.S. Dollars or Sterling) and Luxembourg Swingline Loans
(denominated in U.S. Dollars) ratably in accordance with their Applicable
Swingline Percentage, in each case as provided in this Section
2.05.  The aggregate principal amount of Swingline Loans at any time
outstanding shall not result in the total Revolving Credit Exposures exceeding
the total Commitments.  In addition (i) the aggregate principal amount
of Luxembourg Swingline Loans at any time outstanding shall not exceed
US$32,000,000 and (ii) the aggregate principal amount of UK Swingline Loans at
any time outstanding shall not exceed US$158,000,000 (based on Assigned Dollar
Values in the case of Swingline Loans denominated in Sterling).  No
Lender shall be required to make a Swingline Loan to refinance an outstanding
Swingline Loan.  No Swingline Loans of any Class will be made on the
last day of any calendar quarter, and if any Swingline Loans of any Class are
outstanding on the Business Day immediately preceding the last day of any
calendar quarter, the applicable Borrower shall prepay such Swingline
Loans.  Each Swingline Loan denominated in U.S. Dollars or Sterling
shall be made as a LIBOR Swingline Loan.  Within the foregoing limits
and subject to the terms and conditions set forth herein, the Borrowers may
borrow, prepay and reborrow Swingline Loans.

     

    (b)  To
request a Swingline Loan of any Class, the applicable Borrower shall notify the
Facility Agent of such request in writing by telecopy or hand delivery not later
than 9:00 a.m., London time, on the day of a proposed Swingline
Loan.  Each such notice shall be irrevocable and shall be in a form
approved by the applicable Agent and signed by the applicable
Borrower.  Each such Borrowing Request shall specify the following
information in compliance with Section 2.02:

     

    (i) the
identity of the Borrower;

     

    (ii) the
Class and aggregate amount of such Swingline Loan (expressed in U.S. Dollars)
and the currency thereof (as permitted by Section 2.01);

     

    (iii) the
date of such Swingline Loan, which shall be a Business Day;

     

    (iv) in
the case of a LIBOR Swingline Loan, the initial Interest Period to be applicable
thereto, which shall be a period contemplated by the definition of Interest
Period; and

     

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

    
      
        
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    In the
case of a request for a UK Swingline Loan or a Luxembourg Swingline Loan, the
Facility Agent will promptly notify the Swingline Lenders of any such notice
received from the UK Borrower or Luxembourg Borrower, as the case may
be.

     

    (c)  A
Swingline Lender may by written notice given to the Facility Agent not later
than 11:00 a.m., London time, on any Business Day require the Lenders to
acquire participations, on the date that is three Business Days thereafter, in
all or a portion of such Swingline Lender’s outstanding Swingline
Loans.  Promptly upon receipt of such notice, the Facility Agent will
give notice thereof to each Lender, specifying in such notice such Lender’s
Applicable Percentage of such Swingline Loan or Loans.  Each Lender
hereby absolutely and unconditionally agrees, on the date that is three Business
Days after the date of receipt of notice as provided above, to pay to the
Facility Agent, for the account of the applicable Swingline Lender, such
Lender’s Applicable Percentage of such Swingline Loan or Loans.  Each
such Lender acknowledges and agrees that its obligation to acquire
participations in Swingline Loans pursuant to this paragraph is absolute and
unconditional and shall not be affected by any circumstance whatsoever,
including the occurrence and continuance of a Default or reduction or
termination of the Commitments, and that each such payment shall be made without
any offset, abatement, withholding or reduction whatsoever.  Each such
Lender shall comply with its obligation under this paragraph by wire transfer of
immediately available funds, in the same manner as provided in Section 2.07
with respect to Loans made by such Lender (and Section 2.07 shall apply,
mutatis mutandis, to the
payment obligations of the Lenders), and the Facility Agent shall promptly pay
to the applicable Swingline Lender the amounts so received by it from the
applicable Lenders.  The Facility Agent shall notify the applicable
Borrower of any participations in any Swingline Loan acquired pursuant to this
paragraph, and thereafter payments in respect of such Swingline Loan shall be
made to the Facility Agent and not to the applicable Swingline
Lender.  Any amounts received by any Swingline Lender from any
Borrower (or other party on behalf of such Borrower) in respect of a Swingline
Loan after receipt by such Swingline Lender of the proceeds of a sale of
participations therein shall be promptly remitted to the Facility Agent; any
such amounts received by the Facility Agent shall be promptly remitted by the
Facility Agent to the Lenders that shall have made their payments pursuant to
this paragraph and to such Swingline Lender, as their interests may appear;
provided that
any such payment so remitted shall be repaid to such Swingline Lender or to the
Facility Agent, as applicable, if and to the extent such payment is required to
be refunded to such Borrower for any reason.  The purchase of
participations in a Swingline Loan pursuant to this paragraph shall not relieve
any Borrower of any default in the payment thereof.

     

    SECTION
2.06.  Assigned Dollar
Value.  (a)  With respect to each Alternative
Currency Borrowing or B/A, its “Assigned Dollar
Value” shall mean the following:

     

    (i) the
U.S. Dollar amount specified in the Borrowing Request therefor unless and until
adjusted pursuant to the following clause (ii), and

     

    (ii) as
of each Revaluation Date with respect to such Alternative Currency Borrowing or
B/A, the Assigned Dollar Value of such Borrowing or B/A shall be

     

    
      
        
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    adjusted
to be the U.S. Dollar Equivalent thereof (as determined by the Facility Agent
based upon the applicable Spot Exchange Rate, which determination shall be
conclusive absent manifest error), sub­ject to further adjustment in
accordance with this clause (ii) thereafter.

     

    (b)  The
Assigned Dollar Value of an Alternative Currency Loan shall equal the Assigned
Dollar Value of the Alternative Currency Borrowing of which such Loan is a part
multiplied by the percentage of such Borrowing represented by such
Loan.

     

    (c)  The
Facility Agent shall notify the Company and the relevant Lenders of any change
in the Assigned Dollar Value of any Alternative Currency Borrowing or B/A
promptly following determination of such change.

     

    SECTION
2.07.  Funding of
Borrowings.  (a)  Each Lender shall make each UK
Revolving Loan and Luxembourg Revolving Loan, and each Swingline Lender shall
make each Swingline Loan, in each case to be made by it hereunder on the
proposed date thereof by wire transfer of immediately available funds by 2:00
p.m., London time, to the account of the Facility Agent most recently designated
by it for such purpose by notice to the Lenders.  Each Lender shall
make each Canadian Revolving Loan, and disburse the Discount Proceeds (net of
applicable acceptance fees) of each B/A to be accepted and purchased by it
hereunder on the proposed date thereof by wire transfer of immediately available
funds by 2:00 p.m., Toronto time, to the account of the Canadian Facility Agent
most recently designated by it for such purpose by notice to the
Lenders.  The applicable Agent will make such Loans or Discount
Proceeds (as applicable) available to the applicable Borrower by promptly
crediting the amounts so received, in like funds, to an account of such Borrower
as designated in such Borrower’s applicable Borrowing Request (or, in the case
of a Borrowing made in an Alternative Currency, to an account mutually agreed
between the Borrower and the applicable Agent for funding such
Borrowing).

     

    (b)  Unless
an Agent shall have received notice from a Lender prior to the proposed date of
any Borrowing that such Lender will not make available to such Agent such
Lender’s share of such Borrowing, such Agent may assume that such Lender has
made such share available on such date in accordance with paragraph (a) of
this Section and may, in reliance upon such assumption, make available to the
applicable Borrower a corresponding amount.  In such event, if a
Lender has not in fact made its share of the applicable Borrowing available to
the applicable Agent, then such Lender and such Borrower severally agree to pay
to such Agent forthwith on demand such corresponding amount 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 such Agent, at
(i) in the case of such Lender, the rate determined by the applicable Agent
in accordance with banking industry rules on interbank compensation or
(ii) in the case of such Borrower, the interest rate applicable to the
Loans included in such Borrowing.  If such Lender pays such amount to
the applicable Agent, then such amount shall constitute such Lender’s Loan
included in such Borrowing.

    
      
        
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    SECTION
2.08.  Interest
Elections.  (a)  Each Revolving Borrowing initially
shall be of the Type specified in the applicable Borrowing Request and, in the
case of a LIBOR Borrowing, shall have an initial Interest Period as specified in
such Borrowing Request.  Each B/A Drawing shall have a Contract Period
as specified in the applicable request therefor.  Thereafter, (i) the
Canadian Borrower may elect to convert a Canadian Revolving Borrowing or B/A
Drawing to a different Type or to continue such Borrowing or B/A Drawing and
(ii) in the case of a LIBOR Borrowing, the applicable Borrower may elect to
continue such Borrowing as a LIBOR Borrowing and may elect Interest Periods
therefor, all as provided in this Section, it being understood that no B/A
Drawing may be converted or continued other than at the end of the Contract
Period applicable thereto.  The applicable Borrower may elect
different options with respect to different portions of the affected Borrowing
or B/A, as the case may be, in which case each such portion shall be allocated
ratably among the Lenders holding the Loans comprising such Borrowing or
accepting the B/As comprising such B/A Drawing, as the case may be, and any
Loans or B/As resulting from an election made with respect to any such portion
shall be considered a separate Borrowing or B/A Drawing.  This Section
shall not apply to Swingline Borrowings, which may not be converted or
continued.

     

    (b)  To
make an election pursuant to this Section, the applicable Borrower shall notify
the Facility Agent (or, in the case of an election that relates to a Canadian
Revolving Borrowing or B/A, the Canadian Facility Agent) of such election in
writing by telecopy or hand delivery (i) in the case of an election that would
result in a Borrowing, by the time and date that a Borrowing Request would be
required under Section 2.03 if such Borrower were requesting a Revolving
Borrowing resulting from such election to be made on the effective date of such
election, and (ii) in the case of an election that would result in a B/A Drawing
or the continuation of a B/A Drawing, by the time and date that a request would
be required under Section 2.04 if the Canadian Borrower were requesting an
acceptance and purchase of B/As to be made on the effective date of such
election. Each such Interest Election Request shall be irrevocable and shall be
in a form reasonably acceptable to the applicable Agent and signed by the
applicable Borrower.  Notwithstanding any other provision of this
Section, (i) no Borrower shall be permitted to change the Borrower or currency
of any Borrowing, and (ii) each conversion or continuation of a Borrowing shall
comply with the applicable provisions of Section 2.02.

     

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

     

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

     

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

    
      
        
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    (iii) in
the case of a Canadian Revolving Borrowing or B/A, whether the resulting
Borrowing is to be a LIBOR Borrowing, a CABR Borrowing or a B/A Drawing;
and

     

    (iv) if
the resulting Borrowing is a LIBOR Borrowing, the Interest Period to be
applicable thereto after giving effect to such election, which shall be a period
contemplated by the definition of the term “Interest Period”, and in the case of
an election of a B/A Drawing, the Contract Period to be applicable thereto,
which shall be a period contemplated by the definition of the term “Contract
Period”.

     

    If any
such Interest Election Request does not specify an Interest Period or Contract
Period, then the applicable Borrower shall be deemed to have selected an
Interest Period of one month’s duration or Contract Period of 30 days’ duration
as applicable.

     

    (d)  Promptly
following receipt of an Interest Election Request, the applicable Agent shall
advise each participating Lender of the details thereof and of such Lender’s
portion of each resulting Borrowing or B/A Drawing, as the case may
be.

     

    (e)  If
any Borrower fails to deliver a timely Interest Election Request (i) with
respect to a LIBOR Revolving Borrowing denominated in U.S. Dollars or Sterling,
then, unless such Borrowing is repaid as provided herein, at the end of the
Interest Period such Borrowing shall be continued as a LIBOR Borrowing with an
Interest Period of one month’s duration or (ii) with respect to a LIBOR
Revolving Borrowing or B/A Drawing denominated in Canadian Dollars, then, unless
such Borrowing or B/A Drawing is repaid as provided herein, at the end of the
Interest Period or Contract Period (as applicable) for such Borrowing or B/A
Drawing, such Borrowing or B/A Drawing shall be converted to  a CABR
Borrowing.  Notwithstanding any contrary provision hereof, if an Event
of Default has occurred and is continuing and the Facility Agent, at the request
of the Required Lenders, so notifies the Borrowers, then, so long as an Event of
Default is continuing, unless repaid (i) each LIBOR Revolving Borrowing shall be
continued at the end of the Interest Period applicable thereto as a LIBOR
Borrowing with an Interest Period of one month’s duration, (ii) no outstanding
Borrowing denominated in Canadian Dollars may be converted to or continued as a
B/A Drawing and (iii) unless repaid, each B/A Drawing shall be converted to a
CABR Borrowing at the end of the applicable Contract Period
therefor.

     

    (f)  Upon
the conversion of any Canadian Revolving Borrowing (or portion thereof), or the
continuation of any B/A Drawing (or portion thereof), to or as a B/A Drawing,
the net amount that would otherwise be payable to the Canadian Borrower by each
Lender pursuant to Section 2.04(f) in respect of such new B/A Drawing shall be
applied against the principal of the Canadian Revolving Loan made by such Lender
as part of such Canadian Revolving Borrowing (in the case of a conversion), or
the reimbursement obligation owed to such Lender under Section 2.04(i) in
respect of the B/As accepted by such Lender as part of such maturing B/A Drawing
(in the case of a continuation), and such Borrower shall pay to such Lender an
amount equal to the

    
      
        
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    difference
between the principal amount of such Canadian Revolving Loan or the aggregate
face amount of such maturing B/As, as the case may be, and such net
amount.

     

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

     

    (b)  The
Borrowers may at any time terminate, or from time to time reduce, the
Commitments; provided that
(i) each reduction of the Commitments shall be in an amount that is an
integral multiple of US$5,000,000 and not less than US$10,000,000 and
(ii) the Borrowers shall not terminate or reduce such Commitments if, after
giving effect to any concurrent prepayment of the Loans in accordance with
Section 2.11, the total Revolving Credit Exposures would exceed the total
Commitments.

     

    (c)  The
Borrowers to notify the Facility Agents of any election to terminate or reduce
the Commitments under paragraph (b) of this Section at least three Business
Days prior to the effective date of such termination or reduction, specifying
such election and the effective date thereof.  Promptly following
receipt of any notice, the Facility Agent shall advise the Lenders of the
contents thereof.  Each notice delivered by a Borrower pursuant to
this Section shall be irrevocable; provided that a
notice of termination of the Commitments delivered by a Borrower may state that
such notice is conditioned upon the effectiveness of other credit facilities, in
which case such notice may be revoked by the Borrower (by notice to the Agents
on or prior to the specified effective date) if such condition is not
satisfied.  Any termination or reduction of the Commitments shall be
permanent.  Each reduction of the Commitments shall be made ratably
among the Lenders in accordance with their respective Commitments.

     

    (d)  (i)  The
applicable Borrower may, by delivery of a written request (a “Maturity Date Extension
Request”) to the Agents (which shall promptly deliver a copy to each of
the Lenders) not less than 30 days and not more than 60 days prior to
the first or second anniversary of the Effective Date, request that the Lenders
of the applicable Class extend the Maturity Date for an additional period of one
year; provided
that there shall be no more than two extensions of the Maturity Date pursuant to
this Section.  Each Lender shall, by notice to the Company, the
Borrowers and the Agents given not later than the 15th day
after the date of the Agents’ receipt of the Borrowers’ Maturity Date Extension
Request (or such other date as the Borrowers and the Agents may otherwise agree,
which may include extensions of any previously announced date; such date, the
“Extension
Date”), advise the Borrowers whether or not it agrees to the requested
extension (each such Lender agreeing to a requested extension being called a
“Consenting
Lender”, and each such Lender declining to agree to a requested extension
being called a “Declining
Lender”).  Any Lender that has not so advised the Borrowers and
the Agents by such Extension Date shall be deemed to have declined to agree to
such extension and shall be a Declining Lender.  If Lenders holding
662⁄3% of the aggregate Commitments shall have agreed to a Maturity Date Extension
Request by the Extension Date, then the Maturity Date shall, as to the
Consenting Lenders, be extended to the first anniversary of the Maturity Date
theretofore in effect.  The decision to agree or withhold agreement to
any Maturity Date Extension Request shall be at the sole discretion of
each

     

    
      
        
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39

    Lender.  The
Commitment of any Declining Lender shall terminate on the Maturity Date in
effect prior to giving effect to any such extension (such Maturity Date being
called the “Existing
Maturity Date”).

     

    (ii) It
is understood that the applicable Borrower shall have the right, pursuant to
Section 2.19(b), at any time prior to the Existing Maturity Date, to
replace a Declining Lender with a Lender or other financial institution that
will agree to the Maturity Date Extension Request, and any such replacement
Lender shall for all purposes constitute a Consenting Lender as of the date it
agrees to replace such Declining Lender.

     

    (iii)
Notwithstanding the foregoing provisions of this Section 2.09, no extension of
the Existing Maturity Date shall be effective with respect to any Lender unless,
on and as of the Extension Date in respect of such extension, the conditions set
forth in Section 4.02 shall be satisfied (with all references in such
Section to a Borrowing being deemed to be references to such extension) and the
Agents shall have received a certificate to that effect, dated as of such
Extension Date, and executed by a Financial Officer.

     

    (iv) On
the Existing Maturity Date, if there remain any Declining Lenders and any
Revolving Loans are outstanding, the applicable Borrower or Borrowers
(A) shall prepay all Revolving Loans then outstanding (including all
accrued but unpaid interest thereon) and (B) may, at its or their option,
fund such prepayment by simultaneously borrowing Revolving Loans for the
Interest Periods specified in a Borrowing Request delivered pursuant to
Section 2.03, which Revolving Loans shall be made by the Lenders ratably in
accordance with their respective Commitments (calculated after giving effect to
the termination of the Commitments of the Declining Lenders).  The
payments made pursuant to clause (A) above in respect of each LIBOR Loan
shall be subject to Section 2.16.

     

    SECTION
2.10.  Repayment of Loans and
B/As; Evidence of Debt.

     

    (a)  Each
Borrower hereby unconditionally promises to pay to the Facility
Agent  (or, in the case of Canadian Revolving Loans, the Canadian
Facility Agent) for the account of each Lender or Swingline Lender, as
applicable, (i) the then unpaid principal amount of each Revolving Loan owing by
such Borrower to such Lender on the Maturity Date, and (ii) the then unpaid
principal amount of each Swingline Loan owing by such Borrower to such Lender or
Swingline Lender, as applicable, on the earlier of the Maturity Date or the last
day of the Interest Period applicable thereto; provided that on each
date that a Revolving Borrowing is made to such Borrower, such Borrower shall
repay all Swingline Loans to such Borrower which were outstanding at the time
such Borrowing was requested.  The Canadian Borrower hereby
unconditionally promises to pay on the Maturity Date, to the Canadian Facility
Agent for the account of each applicable Lender, the face amount of each B/A, if
any, accepted by such Lender as provided in Section 2.04.

     

    (b)  Each
Lender shall maintain in accordance with its usual practice an account or
accounts evidencing the indebtedness of the applicable Borrowers to
such

     

    
      
        
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40

    Lender
resulting from each Loan made by such Lender, including the amounts of principal
and interest payable and paid to such Lender from time to time
hereunder.

     

    (c)  The
Facility Agent (and, in the case of Loans to or B/As for the Canadian Borrower,
the Canadian Facility Agent) shall maintain accounts in which it shall record
(i) the amount and currency of each Loan made hereunder, the Class and Type
thereof and the Interest Period applicable thereto, and the amount of each B/A
and the Contract Period applicable thereto, (ii) the amount of any
principal or interest due and payable or to become due and payable from each
Borrower to each Lender hereunder and (iii) the amount of any sum received
by such Agent hereunder for the account of the Lenders of any Class and each
Lender’s share thereof.  The Canadian Facility Agent shall promptly
provide the Facility Agent with all information needed to maintain such accounts
in respect of Loans or B/A Drawings administered by such Agent.

     

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

     

    (e)  Any
Lender may request that Loans of any Class made by it be evidenced by a
promissory note.  In such event, the applicable Borrower shall
prepare, execute and deliver to such Lender a promissory note payable to the
order of such Lender (or, if requested by such Lender, to such Lender and its
registered assigns) and in a form approved by the applicable
Agent.  Thereafter, the Loans evidenced by such promissory note and
interest thereon shall at all times (including after assignment pursuant to
Section 9.04) be represented by one or more promissory notes in such form
payable to the order of the payee named therein (or, if such promissory note is
a registered note, to such payee and its registered assigns).

     

    SECTION
2.11.  Prepayment of
Loans.  i)Each Borrower shall have the right at any time and
from time to time to prepay any Borrowing in whole or in part, subject to prior
notice in accordance with paragraph (d) of this Section.

     

    (b)  If,
as of any Revaluation Date, the total Revolving Credit Exposure exceeds 105% of
the total amount of the Commitments, then the Borrowers shall, not later than
the date that is four Business Days after they receive notice thereof from
either Agent, prepay one or more Revolving Borrowings and Swingline Borrowings
in an aggregate amount sufficient to reduce the total Revolving Credit Exposures
to an amount not exceeding the total Commitments; provided, however,
that the Canadian Borrower shall not be obligated to prepay any B/A in order to
comply with the terms of this Section 2.11(b); provided, further,
that should a prepayment of all outstanding Revolving Borrowings and Swingline
Borrowings be insufficient to reduce the total Revolving Credit Exposure below
105% of the total Commitments, the Canadian Borrower shall provide cash
collateral to the Canadian Facility Agent in an amount sufficient to secure the
outstanding B/As to the extent necessary to comply with this paragraph (b) (and
such

    
      
        
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41

    collateral
will be held by the Canadian Facility Agent and applied to pay B/As as and when
due).

     

    (c)  A
Borrower shall notify the applicable Agent by telecopy of any prepayment by it
hereunder (i) in the case of prepayment of a LIBOR Revolving Borrowing, not
later than 11:00 a.m., London time, three Business Days before the date of
prepayment, (ii) in the case of prepayment of a UK Swingline Borrowing or a
Luxembourg Swingline Borrowing, not later than 9:00 a.m. London time, on the
date of prepayment and (iii) in the case of prepayment of a CABR Revolving
Borrowing, not later than 11:00 a.m., Toronto time, three Business Days before
the date of prepayment.  Each such notice shall be irrevocable and
shall specify the prepayment date and the principal amount of each Borrowing or
portion thereof to be prepaid; provided that if a
notice of optional prepayment is given in connection with a conditional notice
of termination of the Commitments as contemplated by Section 2.09, then
such notice of prepayment may be revoked if such notice of termination is
revoked in accordance with Section 2.09.  Promptly following
receipt of any such notice relating to a Borrowing, the applicable Agent shall
advise the participating Lenders of the contents thereof.  Each
partial prepayment of any Revolving Borrowing shall be in an amount that would
be permitted in the case of an advance of a Revolving Borrowing of the same Type
as provided in Section 2.02.  Each prepayment of a Borrowing
shall be applied ratably to the Loans included in the prepaid
Borrowing.  Prepayments shall be accompanied by accrued interest to
the extent required by Section 2.13.

     

    SECTION
2.12.  Fees.  (a)  The
Company agrees to pay (or to cause one or more of the Borrowers to pay) to the
Facility Agent, for the account of each Lender a commitment fee, which shall
accrue at the Applicable Margin on the daily unused amount of the Commitment of
such Lender during the period from and including the Effective Date to but
excluding the date on which such Commitment terminates.  Accrued
commitment fees shall be payable quarterly in arrears on the last day of March,
June, September and December of each year and upon the termination of the
Commitments, calculated based on the number of days elapsed in a 360-day
year.  For purposes of computing commitment fees, (i) a Commitment of
a Lender shall be deemed to be used to the extent of the outstanding Revolving
Loans and B/As of such Lender (and the Luxembourg Swingline Exposure and UK
Swingline Exposure of such Lender shall be disregarded for such purpose) and
(ii) amounts denominated in Alternative Currencies shall be based on Assigned
Dollar Values.

     

    (b)  The
Company agrees to pay (or to cause one or more of the Borrowers to pay) to the
Facility Agent for the account of each Lender such Lender’s Applicable
Percentage of a utilization fee, which shall accrue at the Applicable Margin on
the daily total amount of the Revolving Credit Exposure of  during any
period in which the total amount of outstanding Revolving Credit Exposures is
greater than 50% of the total Commitments; provided that if such
Lender continues to have any Revolving Credit Exposure to a Borrower after such
Lender’s Commitment to such Borrower terminates, then such utilization fee shall
continue to accrue on the daily amount of such Lender’s Revolving Credit
Exposure to such Borrower from and including the date on which its Commitment
terminates to but excluding the date on which such Lender ceases to
have

     

    
      
        
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    any such
Revolving Credit Exposure.  Accrued utilization fees shall be payable
in arrears on the last day of March, June, September and December of each year
and on the date on which the Commitments terminate, commencing on the first such
date to occur after the date hereof; provided that any
utilization fees accruing after the date on which the Commitments terminate
shall be payable on demand.  All utilization fees shall be computed on
the basis of a year of 360 days and shall be payable for the actual number of
days elapsed (including the first day but excluding the last day).

     

    (c)  The
Canadian Borrower agrees to pay to the Canadian Facility Agent, for the account
of each Lender, on each date on which B/As drawn by the Canadian Borrower are
accepted hereunder, in Canadian Dollars, an acceptance fee equal to (i) the
product of the Applicable Margin and the face amount of each B/A accepted by
such Lender multiplied by (ii) a fraction, the numerator of which is the number
of days in the Contract Period applicable to such B/A and the denominator of
which is 365.

     

    (d)  Each
Borrower agrees to pay to the Agents, for their own account, fees payable in the
amounts and at the times separately agreed upon between the Borrowers and the
Agents.

     

    (e)  All
fees payable hereunder shall be paid in U.S. Dollars (or, in the case of fees
payable under paragraph (b) above, Canadian Dollars) on the dates due, in
immediately available funds, to the applicable Agent for distribution, in the
case of commitment fees, to the Lenders.  Fees paid shall not be
refundable under any circumstances.

     

    SECTION
2.13.  Interest.  (a)  The
Loans comprising each CABR Borrowing shall bear interest at the Canadian
Alternate Base Rate plus, if the Applicable Margin exceeds 100 basis points, the
excess of such Applicable Margin over 100 basis points.

     

    (b)  The
Loans comprising each LIBOR Borrowing shall bear interest, at the aggregate of
(i) the Adjusted LIBO Rate for the Interest Period in effect for such Borrowing,
(ii) the Applicable Margin and (iii) in the case of UK Revolving Loans or UK
Swingline Loans denominated in Sterling, the Mandatory Cost (if
any).

     

    (c)  Notwithstanding
the foregoing, if any principal of or interest on any Loan or any fee or other
amount payable by any Borrower or the Company hereunder is not paid when due,
whether at stated maturity, upon acceleration or otherwise, such overdue amount
shall bear interest, after as well as before judgment, at a rate per annum equal
to (i) in the case of overdue principal of any Loan, 2% plus the rate
otherwise applicable to such Loan as provided in the preceding paragraphs of
this Section, (ii) in the case of any other amount denominated in Canadian
Dollars, 2% plus the rate applicable to CABR Loans as provided in paragraph (a)
of this Section or (iii) in the case of any other amount denominated in U.S.
Dollars or Sterling, 2% plus the rate applicable to LIBOR Borrowings as provided
in paragraph (b) of this Section, provided that for the
purposes of this Section, the Interest Period for any overdue amount shall be
any period selected by the Facility Agent not exceeding one
month.

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

     

    (e)  All
interest hereunder shall be computed on the basis of a year of 360 days,
except that the calculation of interest on UK Revolving Loans or UK Swingline
Loans that are denominated in Sterling shall be made on the basis of a year of
365 days, and in each case shall be payable for the actual number of days
elapsed (including the first day but excluding the last day).  The
applicable Canadian Alternate Base Rate, if any, shall be determined by the
Canadian Facility Agent and the applicable Adjusted LIBO Rate, if any, shall be
determined by the Facility Agent, and such determination shall be conclusive
absent manifest error.

     

    (f)  For
purposes of the Interest Act (Canada), (i) whenever any interest or fee under
this Agreement is calculated using a rate based on a year of 360 days or 365
days, as the case may be, the rate determined pursuant to such calculation, when
expressed as an annual rate, is equivalent to (x) the applicable rate based on a
year of 360 days or 365 days, as they case may be, (y) multiplied by the actual
number of days in the calendar year in which the period for which such interest
or fee is payable (or compounded) ends, and (z) divided by 360 or 365, as the
case may be, (ii) the principle of deemed reinvestment of interest does not
apply to any interest calculation under this Agreement, and (iii) the rates of
interest stipulated in this Agreement are intended to be nominal rates and not
effective rates or yields.  The provisions of this paragraph apply to
Loans made to the Canadian Borrower.

     

    SECTION
2.14.  Alternate Rate of
Interest.  If prior to the commencement of any Interest Period
for a LIBOR Borrowing:

     

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

     

    (b)  the
Facility Agent is advised by a majority in interest of the Lenders participating
in such Borrowing that the Adjusted LIBO Rate for such Interest Period will not
adequately and fairly reflect the cost to such Lenders of making or maintaining
their Loans included in such Borrowing for such Interest Period; 

     

    then the
Facility Agent shall give notice thereof to the applicable Borrower and the
Lenders by telecopy as promptly as practicable thereafter and, until the
Facility Agent notifies such Borrower and the Lenders that the circumstances
giving rise to such notice no longer exist, then (i) the rate of interest on
each Lender’s share of such Borrowing for 

    
      
        
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    such
Interest period shall be the percentage rate per annum which is the sum of (A)
the Applicable Margin, (B) the rate notified to the Facility Agent by such
Lender as soon as practicable and in any event before interest is due to be paid
in respect of that Interest Period, to be that which expresses as a percentage
rate per annum the cost to such Lender of funding its participation in such
Borrowing from whatever source it may reasonably select, and (C) in the case of
UK Revolving Loans denominated in Sterling, the Mandatory Cost (if any), (ii)
any Interest Election Request that requests the conversion of any Revolving
Borrowing of such Class to, or continuation of any Revolving Borrowing of such
Class as, a LIBOR Borrowing shall be ineffective and (iii) if any Borrowing
Request by the Canadian Borrower requests a LIBOR Revolving Borrowing
denominated in Canadian Dollars, such Borrowing shall be made as a CABR
Borrowing.

     

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

     

    (i)
impose, modify or deem applicable any reserve, special deposit or similar
requirement against assets of, deposits with or for the account of, or credit
extended by, any Lender (except any such reserve requirement reflected in the
Adjusted LIBO Rate); or

     

    (ii)
impose on any Lender or the London interbank market any other condition
affecting this Agreement or LIBOR Loans made by such Lender 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 LIBOR Loan (or of maintaining its obligation to make
any such Loan) or to reduce the amount of any sum received or receivable by such
Lender hereunder (whether of principal, interest or otherwise), then the
applicable Borrower will pay to such Lender such additional amount or amounts as
will compensate such Lender for such additional costs incurred or reduction
suffered.

     

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

     

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

    
      
        
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    (d)  Failure
or delay on the part of any Lender to demand compensation pursuant to this
Section shall not constitute a waiver of such Lender’s right to demand such
compensation; provided that the
applicable Borrower shall not be required to compensate a Lender pursuant to
this Section for any increased costs or reductions incurred more than
270 days prior to the date that such Lender, 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 intention to claim compensation therefor; provided further that, if the
Change in Law giving rise to such increased costs or reductions is retroactive,
then the 270-day period referred to above shall be extended to include the
period of retroactive effect thereof.

     

    SECTION
2.16.  Break
Funding Payments.  In the event of (a) the payment of any
principal of any LIBOR Loan other than on the last day of an Interest Period
applicable thereto (including as a result of an Event of Default), (b) the
conversion of any LIBOR Loan other than on the last day of the Interest Period
applicable thereto, (c) the failure to borrow, convert, continue or prepay
any LIBOR Loan or to issue B/As for acceptance on the date specified in any
notice delivered pursuant hereto (regardless of whether such notice may be
revoked under Section 2.11(b) and is revoked in accordance therewith),
(d) the assignment of any LIBOR Loan or the right to receive payment in
respect of a B/A other than on the last day of the Interest Period applicable
thereto as a result of a request by the Company pursuant to Section 2.19,
then, in any such event, the applicable Borrower shall compensate each affected
Lender for the loss, cost and expense attributable to such event.  In
the case of a LIBOR Loan, such loss, cost or expense to any Lender shall be
deemed to include an amount determined by such Lender to be the excess, if any,
of (i) the amount of interest which would have accrued on the principal
amount of such Loan had such event not occurred, at the Adjusted LIBO Rate that
would have been applicable to such Loan, for the period from the date of such
event to the last day of the then current Interest Period therefor (or, in the
case of a failure to borrow, convert or continue, for the period that would have
been the Interest Period for such Loan), over (ii) the amount of interest
which would accrue on such principal amount for such period at the interest rate
which such Lender would bid were it to bid, at the commencement of such period,
for deposits in the applicable currency and of a comparable amount and period
from other banks in the eurodollar market.  A certificate of any
Lender setting forth any amount or amounts that such Lender is entitled to
receive pursuant to this Section shall be delivered to the Company and shall be
conclusive absent manifest error.  The applicable shall pay such
Lender the amount shown as due on any such certificate within 10 days after
receipt thereof.

     

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

     

    
      
        
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    shall
make such deductions and (iii) such Borrower shall pay the full amount
deducted to the relevant Governmental Authority in accordance with applicable
law.

     

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

     

    (c)  Each
Borrower shall indemnify each Agent and each Lender, within 10 days after
written demand therefor, for the full amount of any Indemnified Taxes or Other
Taxes paid by the such Agent or such Lender, on or with respect to any payment
by or on account of any obligation of each Borrower hereunder (including
Indemnified Taxes or Other Taxes imposed or asserted on or attributable to
amounts payable under this Section) and any penalties, interest and reasonable
expenses arising therefrom or with respect thereto, whether or not such
Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted
by the relevant Governmental Authority.  A certificate as to the
amount of such payment or liability delivered to the applicable Borrower by a
Lender, or by an Agent on its own behalf or on behalf of a Lender, shall be
conclusive absent manifest error.

     

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

     

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

     

    (f)  The
Company, the UK Borrower and each UK Lender that is a Foreign Lender also agree
to the matters set forth in Schedule 2.17 to this Agreement.

     

    SECTION
2.18.  Payments Generally; Pro Rata
Treatment; Sharing of Set-offs.  (a)  Each of the UK
Borrower and the Luxembourg Borrower shall make each payment required to be made
by it hereunder (whether of principal, interest, fees or of amounts payable
under Section 2.15, 2.16 or 2.17, or otherwise) prior to 12:00 noon,
London time, on the date when due, in immediately available funds, without
set-off or counterclaim.  The Canadian Borrower shall make each
payment required to be made by it hereunder (whether of principal, interest,
fees or of amounts payable under Section 2.15, 2.16 or 2.17, or otherwise)
prior to 12:00 noon, Toronto time.  All such payments shall be made to
the Facility Agent at its offices in London or, in the case of payments to be
made by the Canadian Borrower, to the Canadian Facility Agent at
its

     

    
      
        
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    offices
in Toronto.  Any amounts received after the time required to be
received hereunder on any date may, in the discretion of the applicable Agent,
be deemed to have been received on the next succeeding Business Day for purposes
of calculating interest thereon.  The applicable Agent shall
distribute any such payments received by it for the account of any other Person
to the appropriate recipient promptly following receipt thereof.  If
any payment hereunder shall be due on a day that is not a Business Day, the date
for payment shall be extended to the next succeeding Business Day, and, in the
case of any payment accruing interest, interest thereon shall be payable for the
period of such extension.  All payments hereunder shall be made in
U.S. Dollars, except that (i) payments of principal of and interest on any
Alternative Currency Loan (and, if requested by the applicable Lender, payments
under Section 2.16 in respect thereof) shall be made in such Alternative
Currency, and payments in respect of B/As shall be made in Canadian Dollars, in
such funds as may then be customary for the settlement of international
transactions in such Alternative Currency and (ii) fees payable under Section
2.12(b) shall be payable in Canadian Dollars.

     

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

     

    (c)  If
any Lender shall, by exercising any right of set-off or counterclaim or
otherwise, obtain payment in respect of any principal of or interest on any of
its Revolving Loans, Swingline Loans or amount owing in respect of any B/A
Drawings resulting in such Lender receiving payment of a greater proportion of
the aggregate amount of its Revolving Loans, Swingline Loans and amounts owing
in respect of any B/A Drawings and accrued interest thereon than the proportion
received by any other Lender, then the Lender receiving such greater proportion
shall purchase (for cash at face value) participations in the Revolving Loans,
Swingline Loans or amounts owing in respect of any B/A Drawing of other Lenders
to the extent necessary so that the benefit of all such payments shall be shared
by the Lenders ratably in accordance with the aggregate amount of principal of
and accrued interest on their respective Revolving Loans,  Swingline
Loans and amounts owing in respect of any B/A Drawing; provided that the
provisions of this paragraph shall not be construed to apply to any payment made
by any Borrower pursuant to and in accordance with the express terms of this
Agreement or any payment obtained by a Lender as consideration for the
assignment of or sale of a participation in any of its Loans to any assignee or
participant, other than to the Company, any Borrower or any Subsidiary or
Affiliate thereof (as to which the provisions of this paragraph shall
apply).  Each Borrower consents to the foregoing and agrees, to the
extent it may effectively do so under applicable law, that any Lender acquiring
a participation pursuant to the foregoing arrangements may exercise against any
Borrower rights of set-off and counterclaim with respect to such participation
as fully as if such Lender were a direct creditor of such Borrower in the amount
of such participation.

    
      
        
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    (d)  Unless
the Facility Agent (or, in respect of a payment to be made by the Canadian
Borrower, the Canadian Facility Agent) shall have received notice from any
Borrower prior to the date on which any payment is due to such Agent for the
account of the Lenders hereunder that such Borrower will not make such payment,
such 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, 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 severally
agrees to repay to such Agent forthwith on demand the amount so distributed to
such Lender with interest thereon, for each day from and including the date such
amount is distributed to it to but excluding the date of payment to such Agent,
at the greater of the Federal Funds Effective Rate and a rate determined by such
Agent in accordance with banking industry rules on interbank
compensation.

     

    (e)  If
any Lender shall fail to make any payment required to be made by it pursuant to
Section 2.05(c), 2.07(b) or 2.18(d), then the applicable Agent may, in its
discretion (notwithstanding any contrary provision hereof), apply any amounts
thereafter received by such Agent for the account of such Lender to satisfy such
Lender’s obligations under such Sections until all such unsatisfied obligations
are fully paid.

     

    SECTION
2.19.  Mitigation Obligations;
Replacement of Lenders.  (a)  If any Lender requests
compensation under Section 2.15, or if any Borrower is required to pay any
additional amount to any Lender or any Governmental Authority for the account of
any Lender pursuant to Section 2.17, then such Lender shall use reasonable
efforts to file any certificate or document reasonably requested by the Company
or 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 such filing, designation or assignment
(i) would eliminate or reduce amounts payable pursuant to Section 2.15
or 2.17, as the case may be, in the future and (ii) in the judgment of such
Lender, would not subject such Lender to any unreimbursed cost or expense and
would not otherwise be disadvantageous to such Lender.  The Company
agrees to cause one or more of the Borrowers to pay all reasonable costs and
expenses incurred by any Lender in connection with any such designation or
assignment.

     

    (b)  If
any Lender is a Declining Lender in respect of any Maturity Date Request, or if
any Lender requests compensation under Section 2.15, or if any Borrower is
required to pay any additional amount to any Lender or any Governmental
Authority for the account of any Lender pursuant to Section 2.17, or if any
Lender defaults in its obligation to fund Loans hereunder, or if the Company is
entitled to replace a Lender pursuant to Section 9.02(c), then the Company
may, at its sole expense and effort, upon notice to such Lender and the Facility
Agent, require such Lender to assign and delegate, without recourse (in
accordance with and subject to the restrictions contained in Section 9.04),
all its interests, rights and obligations under this Agreement to an assignee
that shall assume such obligations (which assignee may be another Lender, if a
Lender accepts such assignment); provided that
(i) the Company shall have received the prior written consent of the
Facility Agent, which consent shall not be unreasonably withheld, (ii) such
Lender shall have received payment of an amount equal to the outstanding
principal of its Loans and Swingline Loans, accrued interest thereon, accrued
fees and all

    
      
        
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    other
amounts payable to it hereunder, from the assignee (to the extent of such
outstanding principal and accrued interest and fees) or the applicable Borrower
(in the case of all other amounts), (iii) in the case of any such
assignment resulting from a claim for compensation under Section 2.15 or
payments required to be made pursuant to Section 2.17, such assignment will
result in a reduction in such compensation or payments and (iv) in the case of
any such assignment resulting from a Lender being a Declining Lender, the
assignee shall have agreed to the Maturity Date Extension Request; provided further that, in the
case of any such right to require assignment by a Lender that becomes a
Declining Lender, such right shall not apply after the Extension Date unless the
Maturity Date Extension Request shall have become effective.  A Lender
shall not be required to make any such assignment and delegation if, prior
thereto, as a result of a waiver by such Lender or otherwise, the circumstances
entitling the Company to require such assignment and delegation cease to
apply.

     

     

    ARTICLE
III

     

    Representations and
Warranties

     

    The
Company represents and warrants to the Lenders that:

     

    SECTION
3.01.  Organization;
Powers.  Each of the Company and its Subsidiaries is duly
organized, validly existing and in good standing under the laws of the
jurisdiction of its organization, has all requisite power and authority to carry
on its business as now conducted and  is qualified to do business in,
and is in good standing in, every jurisdiction where such qualification is
required, in each case except where the failure to do so, individually or in the
aggregate, would not reasonably be expected to result in a Material Adverse
Effect.

     

    SECTION
3.02.  Authorization;
Enforceability.  The Transactions to be entered into by each
Loan Party are within such Loan Party’s corporate powers and have been duly
authorized by all necessary corporate (or partnership) and, if required,
stockholder action.  This Agreement and any promissory notes issued
pursuant to Section 2.10(e) have been duly executed and delivered by the
Company and each Borrower (or, in the case of any such promissory note, the
applicable Borrower) and constitute, and the Guarantee Agreement when executed
and delivered by any Loan Party that becomes party thereto will constitute, a
legal, valid and binding obligation of the Company, the applicable Borrower or
such Loan Party, as the case may be, enforceable in accordance with its terms,
subject to applicable bankruptcy, insolvency, reorganization, moratorium or
other laws affecting creditors’ rights generally and subject to general
principles of equity, regardless of whether considered in a proceeding in equity
or at law.

     

    SECTION
3.03.  Governmental Approvals; No
Conflicts.  The Transactions (a) do not require any
consent or approval of, registration or filing with, or any other action by, any
Governmental Authority, except such as have been obtained or

     

    
      
        
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    made and
are in full force and effect, (b) will not violate any applicable law or
regulation or the charter, by-laws or other organizational documents of the
Company or any of its Subsidiaries or any order of any Governmental Authority,
(c) will not violate or result in a default under any indenture, agreement
or other instrument binding upon the Company or any of its Subsidiaries or its
assets, or give rise to a right thereunder to require any payment (other than
pursuant to this Agreement) to be made by the Company or any of its
Subsidiaries, and (d) will not result in the creation or imposition of any
Lien on any asset of the Company or any of its Subsidiaries, except, with
respect to clauses (b) and (c), any such violations, defaults and payments
which, individually or in the aggregate, would not reasonably be expected to
result in a Material Adverse Effect and except, with respect to clause (d),
any such Liens set forth in Schedule 6.02.

     

    SECTION
3.04.  Financial Condition; No
Material Adverse Change.  (a)  The Company has
heretofore furnished to the Lenders (i) its consolidated balance sheet and
statements of income, stockholder’s equity and cash flows as of and for the
fiscal year ended December 30, 2006, reported on by KPMG LLP, independent public
accountants, and (ii) its condensed consolidated balance sheet as of
September 8, 2007, its condensed consolidated statements of income for the
quarters ended September 8, 2007 and September 9, 2006, and its condensed
consolidated statements of cash flows for the quarters ended September 8, 2007
and September 9, 2006, certified by its Financial Officer.  Such
financial statements present fairly, in all material respects, the financial
position and results of operations and cash flows of the Company and its
consolidated Subsidiaries as of such dates and for such periods in accordance
with GAAP, subject to year-end audit adjustments and the absence of footnotes in
the case of the statements referred to in clause (ii) above.

     

    (b)  As
of the Effective Date, there has been no material adverse change in the
business, assets, operations or condition, financial or otherwise, of the
Company and its Subsidiaries, taken as a whole since December 30,
2006.

     

    SECTION
3.05.  Properties.  (a)  Each
of the Company and its Subsidiaries has good title to, or valid leasehold
interests in, all its real and personal property material to the business of the
Company and its Subsidiaries on a consolidated basis, except for minor defects
in title and other matters that do not interfere with their ability to conduct
their businesses on a consolidated basis as currently conducted or to utilize
such properties for their intended purposes on a consolidated
basis.

     

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

     

    SECTION
3.06.  Litigation and Environmental
Matters.  (a)  There are no actions, suits or
proceedings (and, to the knowledge of the Company, there are no investigations)
by or before any arbitrator or Governmental Authority pending against
or,

    
      
        
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    to the
knowledge of the Company, threatened against or affecting the Company or any of
its Subsidiaries (i) as to which there is a reasonable likelihood of an
adverse determination and that, if adversely determined, would reasonably be
expected, individually or in the aggregate, to result in a Material Adverse
Effect (other than the Disclosed Matters) or (ii) that, other than actions,
suits or proceedings commenced by any Agent or any Lender, involve this
Agreement or the Transactions.

     

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

     

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

     

    SECTION
3.07.  Compliance with Laws and
Agreements.  Each of the Company and its Subsidiaries is in
compliance with all laws, regulations and orders of any Governmental Authority
applicable to it or its property and all indentures, agreements and other
instruments binding upon it or its property, except where the failure to do so,
individually or in the aggregate, would not reasonably be expected to result in
a Material Adverse Effect.  No Default has occurred and is
continuing.

     

    SECTION
3.08.  Investment Company
Status.  Neither the Company nor any of its Subsidiaries is an
“investment company” as defined in, or subject to regulation under, the
Investment Company Act of 1940.

     

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

     

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

    
      
        
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    all such
underfunded Plans by an amount which, if it were required to be fully paid,
would reasonably be expected to result in a Material Adverse
Effect.

     

    SECTION
3.11.  Disclosure.  The
Company has disclosed to the Lenders all agreements, instruments and corporate
or other restrictions to which it or any of its Subsidiaries is subject (to its
knowledge, in the case of those to which only its Non-Controlled Subsidiaries
are subject), and all other matters known to it, that, individually or in the
aggregate, would reasonably be expected to result in a Material Adverse Effect;
provided that
for purposes of this sentence, any information disclosed in any publicly
available filing made by the Company with the Securities and Exchange Commission
pursuant to the rules and regulations of the Securities and Exchange Commission
shall be considered to have been disclosed to the Lenders.  Except as
set forth in Schedule 3.11, neither the Information Memorandum nor any of
the other reports, financial statements, certificates or other information
furnished by or on behalf of the Company by any of its authorized
representatives to any Agent or any Lender in connection with the negotiation of
this Agreement or delivered hereunder (as modified or supplemented by other
information so furnished), when taken as a whole, contained, at the time so
furnished, any material misstatement of fact or omitted, at the time so
furnished, to state any material fact necessary to make the statements therein,
in the light of the circumstances under which they were made and the nature and
scope of the report, financial statement, certificate or other information being
furnished, 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.

     

    SECTION
3.12.  Initial
Guarantors.  As of the Effective Date, there are no Principal
Domestic Subsidiaries other than the Initial Guarantors.

     

     

    ARTICLE
IV

     

    Conditions

     

    SECTION
4.01.  Effective
Date.  The amendment and restatement of the Existing Credit
Agreement as provided herein and the obligations of the Lenders to make Loans
and accept and purchase B/As hereunder shall not become effective until the date
on which each of the following conditions is satisfied (or waived in accordance
with Section 9.02):

     

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

     

    (b)  The
Facility Agent (or its counsel) shall have received from each of the Company,
the Borrowers and the Initial Guarantors either (i) a counterpart of
the

    
      
        
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    Guarantee
Agreement signed on behalf of such party or (ii) written evidence satisfactory
to the Facility Agent (which may include telecopy transmission of a signed
signature page of the Guarantee Agreement) that such party has signed a
counterpart of the Guarantee Agreement.

     

    (c)  The
Facility Agent shall have received a favorable written opinion (addressed to the
Facility Agent and the Lenders and dated the Effective Date) of each of Mayer
Brown LLP, Stikeman Elliot, LLP, Kaufhold Ossola & Associés, and Linklaters,
US counsel, Canadian counsel, Luxembourg counsel and UK counsel, respectively,
for the Loan Parties, and R. Scott Toop, Esq., Vice President and Assistant
General Counsel to the Company, substantially in the form of Exhibits C-1, C-2,
C-3, C-4 and C-5 respectively, and covering such other matters relating to the
Loan Parties, the Loan Documents or the Transactions as the Required Lenders
shall reasonably request.  Each of the Company and the Borrowers
hereby requests such counsel to deliver such opinion.

     

    (d)  The
Facility Agent shall have received such documents and certificates as the
Facility Agent or its counsel may reasonably request relating to the
organization, existence and good standing of the Loan Parties, the authorization
of the Transactions and any other legal matters relating to the Loan Parties,
the Loan Documents or the Transactions, all in form and substance reasonably
satisfactory to the Facility Agent and its counsel.

     

    (e)  The
Facility Agent shall have received a certificate, dated the Effective Date and
signed by the President, a Vice President or a Financial Officer of the Company,
solely in his capacity as such and not individually, confirming compliance with
the conditions set forth in paragraphs (a) and (b) of
Section 4.02.

     

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

     

    (g)  All
outstanding loans, accrued and unpaid interest thereon and accrued an unpaid
fees and other amounts accrued and owing under the Existing Credit Agreement
shall be paid in full (without prejudice to any Borrower’s right to borrow
hereunder in order to finance such payment) and all commitments under the
Existing Credit Agreement (except those that are continuing as Commitments
hereunder) shall have been terminated.

     

    (h)  To
the extent requested, the Lenders shall have received all documentation and
other information required by bank regulatory authorities under applicable “know
your customer” and anti-money laundering rules and regulations, including
information required under the Act.

     

    The
Facility Agent shall notify the Company and the Lenders of the Effective Date,
and such notice shall be conclusive and binding.  Notwithstanding the
foregoing, the obligations of the Lenders to make Loans shall not become
effective unless each of the

     

    
      
        
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    foregoing
conditions is satisfied (or waived pursuant to Section 9.02) at or prior to 5:00
p.m., New York City time, on December 14, 2007 (and, in the event such
conditions are not so satisfied or waived, the Existing Credit Agreement shall
remain in effect without giving effect to any provisions of this
Agreement).

     

    SECTION
4.02.  Each
Credit Event.  The obligation of each Lender to make a Loan or
accept and purchase B/As on the occasion of any Borrowing or B/A Drawing is
subject to the satisfaction of the following conditions:

     

    (a)  The
representations and warranties of the Company set forth in this Agreement shall
be true and correct (or, in the case of any representation or warranty not
qualified as to materiality, true and correct in all material respects) on and
as of the date of such Borrowing or B/A Drawing except to the extent that any
such representations and warranties expressly relate to an earlier date in which
case any such representations and warranties shall be true and correct (or, in
the case of any such representation or warranty not qualified as to materiality,
true and correct in all material respects) at and as of such earlier
date.

     

    (b)  At
the time of and immediately after giving effect to such Borrowing or B/A
Drawing, no Default shall have occurred and be continuing.

     

    Each
Borrowing and each B/A Drawing shall be deemed to constitute a representation
and warranty by the Company and the applicable Borrower on the date thereof as
to the matters specified in paragraphs (a) and (b) of this
Section.

     

     

    ARTICLE
V

     

    Affirmative
Covenants

     

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

     

    SECTION
5.01.  Financial Statements and
Other Information.  The Company will furnish to the Facility
Agent (with sufficient copies for each Lender):

     

    (a)  within
90 days after the end of each fiscal year of the Company, its audited
consolidated balance sheet and related statements of operations, stockholders’
equity and cash flows as of the end of and for such year, setting forth in each
case in comparative form the figures for the previous fiscal year, all reported
on by KPMG LLP or other independent public accountants of recognized national
standing (without a “going concern” or like qualification or exception and
without any qualification or exception as to the scope of such audit) to the
effect that such consolidated financial statements present fairly in all
material respects the financial condition and results of operations of the
Company and its consolidated Subsidiaries on a consolidated basis in accordance
with GAAP (identifying in an explanatory paragraph any material
accounting

     

    
      
        
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    changes);
provided that
delivery of the Company’s form 10-K containing the information required to
be contained therein pursuant to the rules and regulations of the Securities and
Exchange Commission, including the financial statements described above reported
on by KPMG LLP or other independent public accountants of recognized national
standing (without a “going concern” or like qualification or exception and
without any qualification or exception as to the scope of such audit), shall be
deemed to satisfy the requirements of this clause (a);

     

    (b)  within
45 days after the end of each of the first three fiscal quarters of each
fiscal year of the Company, its condensed consolidated balance sheet and related
statements of operations, stockholders’ equity and cash flows as of the end of
and for such fiscal quarter and the then elapsed portion of the fiscal year,
setting forth in each case in comparative form the figures for the corresponding
period or periods of (or, in the case of the balance sheet, as of the end of)
the previous fiscal year, all certified by one of its Financial Officers as
presenting fairly in all material respects the financial condition and results
of operations of the Company and its consolidated Subsidiaries on a consolidated
basis in accordance with GAAP consistently applied, subject to normal year-end
audit adjustments and the absence of footnotes; provided that
delivery of the Company’s Form 10-Q, containing the information required to
be contained therein pursuant to the rules and regulations of the Securities and
Exchange Commission, together with the certificate of a Financial Officer as
described above, shall be deemed to satisfy the requirements of this
clause (b);

     

    (c)  concurrently
with any delivery of financial statements under clause (a) or
(b) above, a certificate of a Financial Officer of the Company
(i) certifying as to whether a Default has occurred and, if a Default has
occurred, specifying the details thereof and any action taken or proposed to be
taken with respect thereto, (ii) setting forth reasonably detailed
calculations demonstrating compliance with Sections 6.01, 6.09 and 6.10
(including any adjustments necessary to reflect the existence of any Excluded
Subsidiaries) and (iii) stating whether any material change in GAAP or in
the application thereof has occurred since the date of the audited financial
statements referred to in Section 3.04 and, if any such change has
occurred, specifying the effect of such change on the financial statements
accompanying such certificate;

     

    (d)  concurrently
with any delivery of financial statements under clause (a) above, a
certificate of the accounting firm that reported on such financial statements
stating whether they obtained knowledge during the course of their examination
of such financial statements of any Default (which certificate may be limited to
the extent required by accounting rules or guidelines);

     

    (e)  promptly
after the same become publicly available, copies of all periodic and other
reports, proxy statements and other materials filed by the Company or any
Subsidiary with the Securities and Exchange Commission, or any Governmental
Authority succeeding to any or all of the functions of said Commission, or with
any national securities exchange, or distributed by the Company to its
shareholders generally, as the case may be; and

    
      
        
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    (f)  promptly
following any request therefor, such other information regarding the operations,
business affairs and financial condition of the Company or any Subsidiary, or
compliance with the terms of this Agreement, as the Facility Agent or any Lender
may reasonably request; provided that any
request by a Lender for any information pursuant to this clause (f) shall
be made through the Facility Agent.

     

    Any
financial statement, report, proxy statement or other material required to be
delivered pursuant to clause (a), (b) or (e) of this Section shall be deemed to
have been furnished to the Facility Agent and each Lender on the date that the
Company notifies the Facility Agent that such financial statement, report, proxy
statement or other material is posted on the Securities and Exchange
Commission’s website at www.sec.gov; provided that the
Facility Agent will promptly inform the Lenders of any such notification by the
Company; provided further that the
Company will furnish paper copies of such financial statement, report, proxy
statement or material to the Facility Agent or any Lender that requests, by
notice to the Company, that the Company do so, until the Company receives notice
from the Facility Agent or such Lender, as applicable, to cease delivering such
paper copies.

     

    SECTION
5.02.  Notices of Material
Events.  The Company will furnish to the Facility Agent written
notice of any of the following promptly after a Financial Officer or other
executive officer of the Company becomes aware thereof:

     

    (a)  the
occurrence of any Default;

     

    (b)  the
filing or commencement of any action, suit or proceeding by or before any
arbitrator or Governmental Authority against or affecting the Company or any
Affiliate thereof that, if adversely determined, would reasonably be expected to
result in a Material Adverse Effect;

     

    (c)  the
occurrence of any ERISA Event that, alone or together with any other ERISA
Events that have occurred, could reasonably be expected to result in liability
of the Company and its Subsidiaries in an aggregate amount exceeding
US$100,000,000; and

     

    (d)  any
other development (except any change in general economic conditions) that
results in, or would reasonably be expected to result in, a Material Adverse
Effect.

     

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

     

    SECTION
5.03.  Existence; Conduct of
Business.  The Company will, and will cause each of its
Subsidiaries to, do or cause to be done all things necessary to preserve, renew
and keep in full force and effect its legal existence and the rights, licenses,
permits, privileges and franchises material to the conduct of the business of
the Company and its Subsidiaries on a consolidated basis; provided that the
foregoing shall

    
      
        
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    not
prohibit any merger, consolidation, liquidation, dissolution or sale of assets
permitted under Section 6.03.

     

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

     

    SECTION
5.05.  Maintenance of Properties;
Insurance.  The Company will, and will cause each of its
Subsidiaries to, (a) keep and maintain all property material to the conduct
of their business on a consolidated basis in good working order and condition,
ordinary wear and tear excepted, and (b) maintain, with financially sound
and reputable insurance companies (or pursuant to self-insurance arrangements
that are consistent with those used by other companies that are similarly
situated), insurance in such amounts and against such risks as are customarily
maintained by companies engaged in the same or similar businesses operating in
the same or similar locations.

     

    SECTION
5.06.  Books
and Records; Inspection Rights.  The Company will, and will
cause each of its Subsidiaries to, keep proper books of record and account in
which full, true and correct entries are made of all dealings and transactions
in relation to its business and activities.  The Company will, and
will cause each of its Subsidiaries to, permit any representatives designated by
the Facility Agent or any Lender, upon reasonable prior notice, to visit and
inspect its properties, to examine and make extracts from its books and records,
and to discuss its affairs, finances and condition with its officers and
independent accountants, all during normal business hours; provided that in the
case of any Lender, unless an Event of Default has occurred and is continuing,
the Company shall not be required to permit any such visits by such Lender or
its representatives pursuant to this Section more than once during any calendar
year (and the Lenders will exercise reasonable efforts to coordinate such visits
through the Facility Agent).

     

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

     

    SECTION
5.08.  Use
of Proceeds.  The proceeds of all Loans will be used only for
general corporate purposes, including payment by any Borrower of dividends to
its shareholders.  No part of the proceeds of any Loan will be used,
whether directly or indirectly, for any purpose that entails a violation of any
of the Regulations of the Board, including Regulations U and
X.

    
      
        
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    SECTION
5.09.  Principal Domestic
Subsidiaries.  Promptly after any Subsidiary (including any
Subsidiary formed or acquired after the date of execution and delivery of this
Agreement) that is not a Guarantor becomes a Principal Domestic Subsidiary, the
Company will cause such Subsidiary to enter into the Guarantee Agreement and
become a Guarantor as provided in the Guarantee Agreement; provided that (a) the
foregoing shall not apply to any Securitization Subsidiary and (b) this Section
shall not apply after all the Guarantees of Subsidiaries under the Guarantee
Agreement have been released and terminated pursuant to Section 11
thereof.

     

     

    ARTICLE
VI

     

    Negative
Covenants

     

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

     

    SECTION
6.01.  Subsidiary
Indebtedness.  The Company will not permit the aggregate
principal amount of Indebtedness of its Domestic Subsidiaries (excluding
(a) any Indebtedness of a Domestic Subsidiary owed to the Company or
another Domestic Subsidiary, (b) any Indebtedness of a Guarantor, so long
as its Guarantee under the Guarantee Agreement remains in effect, (c) any
Indebtedness of a Securitization Subsidiary that is included in calculating the
Securitization Amount, (d) any Guarantee by a Domestic Subsidiary of
Indebtedness of a Foreign Subsidiary, if the assets of such Domestic Subsidiary
consist solely of investments in Foreign Subsidiaries and a de minimis amount of
other assets, and (e) Indebtedness existing as of the Effective Date (as defined
in the Existing Company Credit Agreement) and set forth on Schedule 6.01, but
including (except as provided in clause (d) above) any Guarantee by a Domestic
Subsidiary (other than a Guarantor) of Indebtedness of any other Person,
including the Company, a Guarantor or a Foreign Subsidiary) at any time to
exceed US$200,000,000.

     

    SECTION
6.02.  Liens.  The
Company will not, and will not permit any Subsidiary to, create, incur, assume
or permit to exist any Lien on any property or asset now owned or hereafter
acquired by it, or assign or sell any income or revenues (including accounts
receivable) or rights in respect of any thereof, except:

     

    (a)  Permitted
Encumbrances;

     

    (b)  any
Lien on any property or asset of the Company or any Domestic Subsidiary existing
on the date of the Existing Company Credit Agreement; provided that
(i) such Lien shall not apply to any other property or asset of the Company
or any Subsidiary and (ii) such Lien shall secure only those obligations
which it secures on the date of the Existing Company Credit Agreement and
refinancings, extensions, renewals and replacements thereof that do not increase
the outstanding principal amount thereof; provided further that
any such Lien securing obligations in excess of US$2,000,000 shall not be
permitted under this clause (b) unless such Lien is set forth in
Schedule 6.02;

     

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

     

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

     

    (e)  Liens
securing Capital Lease Obligations arising out of Sale and Lease-Back
Transactions; provided that
(i) such Sale and Lease-Back Transaction is consummated within 90 days
after the purchase by the Company or a Subsidiary of the property or assets
which are the subject of such Sale and Lease-Back Transaction and (ii) such
Liens do not at any time encumber any property or assets other than the property
or assets that are the subject of such Sale and Lease-Back
Transaction;

     

    (f)  any
Lien on any property or asset of any Subsidiary securing obligations in favor of
the Company or any other Subsidiary;

     

    (g)  any
Lien on any property or asset of any Foreign Subsidiary securing obligations of
any Foreign Subsidiary; and

     

    (h)  Permitted
Securitization Transactions, Liens arising in connection with any Permitted
Securitization Transaction and other Liens not otherwise permitted by he
foregoing clauses of this Section; provided that the
Lien Basket Amount shall not at any time exceed 15% of the Consolidated Net
Tangible Assets of the Company.

     

    SECTION
6.03.  Fundamental
Changes.  (a)  The Company will not, and will not
permit any Subsidiary to, merge into or consolidate with any other Person, or
permit any other Person to merge into or consolidate with it, or sell, transfer,
lease or otherwise dispose of (in one transaction or in a series of
transactions) all or substantially all of the assets of the Company and the
Subsidiaries (taken as a whole), or liquidate or dissolve, except that, if at
the time thereof and immediately after giving effect thereto no Event of Default
shall have occurred and be continuing and no Default shall result

     

    
      
        
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    therefrom
(i) any Person may merge into the Company in a transaction in which the
Company is the surviving corporation, (ii) any Person may merge with any
Subsidiary in a transaction in which the surviving entity is a Subsidiary (and,
in the case of a merger involving a Borrower the survivor shall be such
Borrower), (iii) any Subsidiary (other than a 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 (iv) this Section shall not be construed
to restrict Permitted Securitization Transactions; provided that for
purposes of this Section 6.03, one or more Refinancing Transactions shall not
constitute the sale, transfer or disposition of all or substantially all of the
assets of the Company and the Subsidiaries.

     

    (b)  A
substantial majority of the business engaged in by the Company and its
Subsidiaries will continue to be businesses of the type conducted by the Company
and its Subsidiaries on the Effective Date (as defined in the Existing Company
Credit Agreement) and businesses reasonably related thereto; provided that the
foregoing shall not be construed to restrict the conduct of businesses that are
limited to serving the Company and its Subsidiaries and their respective
franchisees and licensees, such as the creation of Subsidiaries to conduct
insurance or inventory purchasing activities for the Company and its
Subsidiaries and their respective franchisees and licensees.

     

    SECTION
6.04.  [Intentionally
omitted.]

     

    SECTION
6.05.  Hedging
Agreements.  The Company will not, and will not permit any of
its Subsidiaries to, enter into any Hedging Agreement or commodity price
protection agreement or other commodity price hedging arrangement, other than
Hedging Agreements, commodity price protection agreements and other commodity
price hedging arrangements entered into in the ordinary course of business to
hedge or mitigate risks to which the Company or any Subsidiary is exposed in the
conduct of its business or the management of its liabilities.

     

    SECTION
6.06.  [Intentionally
omitted.]

     

    SECTION
6.07.  Transactions with
Affiliates.  The Company will not, and will not permit any of
its Subsidiaries to, sell, lease or otherwise transfer any property or assets
to, or purchase, lease or otherwise acquire any property or assets from, or
otherwise engage in any other transactions with, any of its then Affiliates,
except (a) in the ordinary course of business for consideration and on
terms and conditions not less favorable to the Company or such Subsidiary than
could be obtained on an arm’s-length basis from unrelated third parties
(including pursuant to joint venture agreements entered into after the Effective
Date with third parties that are not Affiliates), (b) transactions between
or among the Company and its wholly owned Subsidiaries or between or among
wholly owned Subsidiaries, in each case not involving any other Affiliate,
(c) the Company may declare and pay dividends with respect to its capital
stock payable solely in additional shares of its capital stock, (d) the
Company and its Subsidiaries may make Equity Payments in respect of any of their
respective Equity Interests, or pursuant to or in accordance with stock option
plans or employee benefit plans for management or employees of the Company and
its Subsidiaries and (e) the foregoing shall not prevent

     

    
      
        
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    the
Company or any Subsidiary from performing its obligations under agreements
existing on the date hereof between the Company or any of its Subsidiaries and
any joint venture of the Company or any of its Subsidiaries in accordance with
the terms of such agreements as in effect on the date of the Existing Company
Credit Agreement or pursuant to amendments or modifications to any such
agreements that are not adverse to the interests of the Lenders.

     

    SECTION
6.08.  Issuances of Equity
Interests by Principal Domestic Subsidiaries.  The Company will
not permit any Principal Domestic Subsidiary to issue any additional Equity
Interest in such Principal Domestic Subsidiary other than (a) to the
Company, (b) to another Subsidiary in which the Company owns, directly or
indirectly, a percentage interest not less than the percentage interest owned in
the Principal Domestic Subsidiary issuing such Equity Interest, (c) any
such issuance that does not reduce the Company’s direct or indirect percentage
ownership interest in such Principal Domestic Subsidiary and (d) issuances
of Equity Interests after the date of the Existing Company Credit Agreement
which are not otherwise permitted by the foregoing clauses of this Section,
provided that
the aggregate consideration received therefor (net of all consideration paid in
connection with all repurchases or redemptions thereof) does not exceed
US$100,000,000 during the period subsequent to the date of the Existing Company
Credit Agreement.

     

    SECTION
6.09.  Leverage
Ratio.  The Company will not permit the Leverage Ratio as of
any date to exceed 2.75 to 1.0.

     

    SECTION
6.10.  Fixed
Charge Coverage Ratio.  The Company will not permit the Fixed
Charge Coverage Ratio for any period of four consecutive fiscal quarters ending
after the Effective Date to be less than 1.40 to 1.00.

     

    SECTION
6.11.  Sale
and Lease-Back Transactions.  The Company will not, and will
not permit any of its Domestic Subsidiaries to, 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 (a “Sale and Lease-Back
Transaction”), except (a) any Sale and Lease-Back Transaction
consummated within 90 days after the purchase by the Company or a Domestic
Subsidiary of the property or assets (other than assets acquired pursuant to any
Permitted Acquisition) which are the subject of such Sale and Lease-Back
Transaction and (b) other Sale and Lease-Back Transactions; provided that any
Sale and Lease-Back Transaction permitted by clause (b) above shall be
subject to compliance with the limitation set forth in the proviso to
clause (h) of Section 6.02.

     

    SECTION
6.12.  Ownership of
Borrowers.  The Company will not permit a Borrower to cease to
be a direct or indirect wholly owned subsidiary (other than to the extent of
director’s qualifying shares) of the Company.

    
      
        
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              ARTICLE
      VII

            

    

     

    
    

    
      	
               
      

            	
              Events of
      Default

            

    

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    (g)  any
event or condition occurs that results in any Material Indebtedness becoming due
prior to its scheduled maturity; provided that this
clause (g) shall not apply to (i) Indebtedness that becomes due as a
result of the voluntary sale or transfer of property or assets by the Company or
a Subsidiary or (ii) any amount that becomes due under a Hedging Agreement
as a result of the termination thereof, other than a termination by the
applicable counterparty attributable to an event or condition that constitutes
or is in the nature of an event of default in respect of the Company or a
Subsidiary;

     

    (h)  [Intentionally
omitted.];

    
      
        
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    (i)  subject
to Section 7.02, an involuntary proceeding shall be commenced or an
involuntary petition shall be filed seeking (i) liquidation, reorganization
or other relief in respect of the Company or any Subsidiary or its debts, or of
a substantial part of its assets, under any Federal, state or foreign
bankruptcy, insolvency, receivership or similar law now or hereafter in effect
or (ii) the appointment of a receiver, trustee, custodian, sequestrator,
conservator or similar official for the Company or any Subsidiary or for a
substantial part of its assets, and, in any such case, such proceeding or
petition shall continue undismissed for 60 days or an order or decree
approving or ordering any of the foregoing shall be entered;

     

    (j)  subject
to Section 7.02, the Company or any Subsidiary shall (i) voluntarily
commence any proceeding or file any petition seeking liquidation, reorganization
or other relief under any Federal, state or foreign bankruptcy, insolvency,
receivership or similar law now or hereafter in effect, (ii) consent to the
institution of, or fail to contest in a timely and appropriate manner, any
proceeding or petition described in clause (h) of this Article,
(iii) apply for or consent to the appointment of a receiver, trustee,
custodian, sequestrator, conservator or similar official for the Company or any
Subsidiary or for a substantial part of its assets, (iv) file an answer
admitting the material allegations of a petition filed against it in any such
proceeding, (v) make a general assignment for the benefit of creditors or
(vi) take any action for the purpose of effecting any of the
foregoing;

     

    (k)  subject
to Section 7.02, the Company or any Subsidiary shall become unable, admit
in writing its inability or fail generally to pay its debts as they become
due;

     

    (l)  subject
to Section 7.02, one or more judgments for the payment of money in an
aggregate amount in excess of US$100,000,000 (excluding amounts believed in good
faith by the Company to be covered by insurance from financially sound insurance
companies) shall be rendered against the Company, any Subsidiary or any
combination thereof and the same shall remain undischarged for a period of
30 consecutive days during which execution shall not be effectively stayed,
or any action shall be legally taken by a judgment creditor to attach or levy
upon any assets of the Company or any Subsidiary to enforce any such
judgment;

     

    (m)  an
ERISA Event shall have occurred that, when taken together with all other ERISA
Events that have occurred, would reasonably be expected to result in a Material
Adverse Effect;

     

    (n)  a
Change in Control shall occur; or

     

    (o)  any
Guarantee by the Company or any Guarantor under the Guarantee Agreement shall be
determined by a court of competent jurisdiction, or shall be asserted by the
Company, a Borrower or a Guarantor, to be unenforceable, or the Company or any
Guarantor shall fail to observe or perform any material covenant, condition or
agreement contained in the Guarantee Agreement; provided that the
foregoing shall not apply with respect to the termination of any or all the
Guarantees (other than the Guarantee of the

     

    
      
        
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    Company)
under the Guarantee Agreement pursuant to Section 11 thereof or
Section 9.02(b) hereof;

     

    then, and
in every such event (other than an event with respect to the Company or a
Borrower described in clause (i) or (j) of this Article), and at any time
thereafter during the continuance of such event, the Facility Agent may, and at
the request of the Required Lenders shall, by notice to the Company, take any or
all of the following actions, at the same or different
times:  (i) terminate the Commitments, and thereupon the
Commitments shall terminate immediately, (ii) declare the Loans then
outstanding, and declare an amount equal to the full face amount of all
outstanding B/As, to be due and payable in whole (or in part, in which case any
principal not so declared to be due and payable may thereafter be declared to be
due and payable), and thereupon the principal of the Loans and an amount equal
to the full face amount of all such outstanding B/As so declared to be due and
payable, together with accrued interest thereon and all fees and other
obligations of the Company and the Borrowers accrued hereunder, shall become due
and payable immediately, without presentment, demand, protest or other notice of
any kind, all of which are hereby waived by the Company and the Borrowers, and
(iii) enforce its rights under the Guarantee Agreement on behalf of the
Lenders; and in case of any event with respect to the Company or a Borrower
described in clause (i) or (j) of this Article, the Commitments shall
automatically terminate and the principal of the Loans then outstanding and the
full face amount of all B/A then outstanding, together with accrued interest
thereon and all fees and other obligations of the Company and the Borrowers
accrued hereunder, shall automatically become due and payable, without
presentment, demand, protest or other notice of any kind, all of which are
hereby waived by the Company and the Borrowers.

     

    SECTION
7.02.  Exclusion of Immaterial
Subsidiaries.  Solely for purposes of determining whether a
Default has occurred under clause (i), (j), (k) or (l) of
Section 7.01, any reference in any such clause to any “Subsidiary” shall be
deemed not to include any Subsidiary (other than a Borrower) affected by any
event or circumstance referred to in any such clause that (a) is not a
Principal Domestic Subsidiary, (b) does not have consolidated assets
accounting for more than 3% of the consolidated assets of the Company and its
Subsidiaries, (c) did not, for the most recent period of four consecutive
fiscal quarters, have consolidated revenues accounting for more than 3% of the
consolidated revenues of the Company and its Subsidiaries and (d) did not,
for the most recent period of four consecutive fiscal quarters, have
Consolidated EBITDAR in an amount exceeding 3% of the Company’s Consolidated
EBITDAR for such period; provided that if it
is necessary to exclude more than one Subsidiary from clause (i), (j), (k)
and (l) of Section 7.01 pursuant to this Section in order to avoid a
Default thereunder, all excluded Subsidiaries shall be considered to be a single
consolidated Subsidiary for purposes of determining whether the conditions
specified in clauses (b), (c) and (d) above are satisfied.

     

    
      
        
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              ARTICLE
      VIII

            

    

     

    
    

    
      	
               
      

            	
              The
      Agents

            

    

     

    Each of
the Lenders hereby irrevocably appoints the Facility Agent as its agent and
authorizes the Facility Agent, and each of the Lenders also hereby irrevocably
appoints the Canadian Facility Agent as its sub-agent and authorizes the
Canadian Facility Agent, to take such actions on its behalf and to exercise such
powers as are delegated to the Facility Agent and Canadian Facility Agent,
respectively, by the terms of the Loan Documents, together with such actions and
powers as are reasonably incidental thereto.

     

    Any bank
serving as an Agent hereunder shall have the same rights and powers in its
respective capacities as a Lender as any other Lender and may exercise the same
as though they were not such Agent, and such banks and their Affiliates may
accept deposits from, lend money to and generally engage in any kind of business
with the Company or any Subsidiary or other Affiliate thereof as if they were
not an Agent hereunder.

     

    Any bank
serving as an Agent hereunder shall not have any duties or obligations except
those expressly set forth in the Loan Documents.  Without limiting the
generality of the foregoing, (a) such Agent shall not be subject to any
fiduciary or other implied duties, regardless of whether a Default has occurred
and is continuing, (b) such Agent shall not have any duty to take any
discretionary action or exercise any discretionary powers, except discretionary
rights and powers expressly contemplated by the Loan Documents that such Agent
is required to exercise in writing by the Required Lenders (or such other number
or percentage of the Lenders as shall be necessary under the circumstances as
provided in Section 9.02), and (c) except as expressly set forth in
the Loan Documents, such Agent shall not have any duty to disclose, and shall
not be liable for the failure to disclose, any information relating to the
Company, any Borrower or any of their Subsidiaries that is communicated to or
obtained by the bank serving as such Agent or any of their Affiliates in any
capacity.  An Agent shall not be liable for any action taken or not
taken by it with the consent or at the request of the Required Lenders (or such
other number or percentage of the Lenders as shall be necessary under the
circumstances as provided in Section 9.02) or in the absence of its own
gross negligence or wilful misconduct.  An Agent shall be deemed not
to have knowledge of any Default unless and until written notice thereof is
given to such Agent by the Company, a Borrower or a Lender, and such 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
any Loan Document, (ii) the contents of any certificate, report or other
document delivered thereunder or in connection therewith, (iii) the
performance or observance of any of the covenants, agreements or other terms or
conditions set forth in any Loan Document, (iv) the validity,
enforceability, effectiveness or genuineness of any Loan Document or any other
agreement, instrument or document, or (v) the satisfaction of any condition
set forth in Article IV or elsewhere in any Loan Document, other than to
confirm receipt of items expressly required to be delivered to such
Agent.

     

    
      
        
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    An Agent
shall be entitled to rely upon, and shall not incur any liability for relying
upon, any notice, request, certificate, consent, statement, instrument, document
or other writing believed by it to be genuine and to have been signed or sent by
the proper Person.  An Agent also may rely upon any statement made to
it orally or by telephone and believed by it to be made by the proper Person,
and shall not incur any liability for relying thereon.  An Agent may
consult with legal counsel (who may be counsel for the Company or any Borrower),
independent accountants and other experts selected by it, and shall not be
liable for any action taken or not taken by it in accordance with the advice of
any such counsel, accountants or experts.

     

    An Agent
may perform any and all its duties and exercise its rights and powers by or
through any one or more sub-agents appointed by such Agent.  Such
Agent and any such sub-agent, as applicable, may perform any and all their
duties and exercise their rights and powers through their respective Related
Parties.  The exculpatory provisions of the preceding paragraphs shall
apply to any such sub-agent and to the Related Parties of (i) the Facility Agent
and any such sub-agent and (ii) the Canadian Facility 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 Facility Agent and Canadian Facility Agent, respectively.

     

    Subject
to the appointment and acceptance of a successor Facility Agent or successor
Canadian Facility Agent, as the case may be, as provided in this paragraph, an
Agent may resign at any time by notifying the Lenders, the Company and the other
Agent.  Upon any such resignation, the Required Lenders shall have the
right, with the consent of the Company (which consent shall not be unreasonably
withheld, and shall not be required so long as any Event of Default set forth in
clause (i) or (j) of Section 7.01 has occurred and is continuing) and
the other Agent (which consent shall not be unreasonably withheld), to appoint a
successor.  If no successor shall have been so appointed by the
Required Lenders and shall have accepted such appointment within 30 days
after the retiring Agent gives notice of its resignation, then such retiring
Agent may, on behalf of the Lenders, appoint a successor Agent, which shall be
(i) a bank with an office in London, or an Affiliate of any such bank, for the
successor Facility Agent, and (ii) a bank with an office in Toronto, or an
Affiliate of any such bank, for the successor Canadian Facility
Agent.  Upon the acceptance of its appointment as Facility Agent or
Canadian Facility Agent hereunder by a successor, as the case may be, such
successor shall succeed to and become vested with all the rights, powers,
privileges and duties of the retiring Agent and such retiring Agent shall be
discharged from its duties and obligations hereunder.  The fees
payable by the Company or any Borrower to a successor Agent shall be the same as
those payable to its respective predecessor unless otherwise agreed between the
Company and such successor.  After an Agent’s resignation hereunder,
the provisions of this Article and Section 9.03 shall continue in effect
for the benefit of such retiring Agent, its respective sub-agents and their
respective Related Parties in respect of any actions taken or omitted to be
taken by any of them while it was acting as Agent.

     

    Each
Lender acknowledges that it has, independently and without reliance upon either
Agent or any other Lender and based on such documents and information
as

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

     

    Each
party hereto agrees and acknowledges that the Lead Arrangers do not have any
duties or responsibilities in their capacities as Lead Arrangers hereunder and
shall not have, or become subject to, any liability hereunder in such
capacities.

     

     

    ARTICLE
IX

     

    Miscellaneous

     

    SECTION
9.01.  Notices.  (a)  Subject
to paragraph (b) below, all notices and other communications provided for herein
shall be in writing and shall be delivered by hand or overnight courier service,
mailed by certified or registered mail or sent by telecopy, as
follows:

     

    (i) if to
the Company, to it at Yum! Brands, Inc., P.O. Box 32070, Louisville, KY 40232,
(or, in the case of overnight packages, 1900 Colonel Sanders Lane, Louisville,
KY 40213-1963), Attention of Mark Hutchens, Assistant Treasurer (Telecopy
No. (502) 874-2410);

     

    (ii) if
to the Canadian Borrower, to Yum! Restaurants International (Canada) L.P., c/o
Stikeman Elliott LLP, 5300 Commerce Court West, 199 Bay Street, Toronto, Ontario
M5L 1B9, Canada, Attention of Grace Walker (Telecopy No. (416)
847-0866);

     

    (iii) if
to the UK Borrower, to Yum! Restaurant Holdings, 32 Goldsworth Road, Woking,
Surrey GU21 6JT, England, Attention of Steve Jackson (Telecopy No.
+44-1483-717107)

     

    (iv) if
to the Luxembourg Borrower, to it at Yum! Restaurants International, S.à.r.l.,
LLC c/o CT Corporation System, Kentucky Home Life Building, Louisville,
KY  40202, (or, in the case of overnight packages, 1900 Colonel
Sanders Lane, Louisville, KY 40213-1963), Attention of Alan J. Kohn (Telecopy
No. (502) 874-2190);

     

    (v) if to
the Facility Agent, to Citibank International plc, 4 Harbour Exchange, 2nd
Floor, London E14 9GE, Attention of Bianca Els (Telecopy No. 44 208 636
3824);

     

    
      
        
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    (vi) if
to the Canadian Facility Agent, to Citigroup Global Markets, Inc., Global Loan
Specialist, 2 Penn’s Way, 1st Floor, New Castle, DE 19720, Attention of Ralph
Townley (Telecopy No. (212) 994-0961); or

     

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

     

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

     

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

     

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

     

    (b)  Neither
this Agreement nor any other Loan Document nor any provision thereof may be
waived, amended or modified except, in the case of this Agreement, pursuant to
an agreement or agreements in writing entered into by the Company, the Borrowers
and the Required Lenders or, in the case of any other Loan Document, pursuant to
an agreement or agreements in writing entered into by the Facility Agent and the
Loan Party or Loan Parties that are parties thereto, in each case with the
consent of the Required Lenders; provided that no such
agreement shall (i) increase  the Commitment of any Lender
without the written consent of such Lender, (ii) reduce the principal
amount of any Loan or any amount payable in respect of B/As or reduce the rate

     

    
      
        
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    of
interest thereon, or reduce any fees payable hereunder, without the written
consent of each Lender affected thereby, (iii) postpone the scheduled date
of payment of the principal amount of any Loan (or the date of any payment
required pursuant to Section 2.11(b)) or B/A or any interest thereon, or any
fees payable hereunder, or reduce the amount of, waive or excuse any such
payment, or postpone the scheduled date of expiration of any Commitment, without
the written consent of each Lender affected thereby, (iv) change
Section 2.18(b) or (c) in a manner that would alter the pro rata
sharing of payments required thereby, without the written consent of each
Lender, (v) release the Company from its guarantee under the Guarantee
Agreement or limit its obligations thereunder, without the written consent of
each Lender, or (vi) change any of the provisions of this Section or the
definition of “Required Lenders” or any other provision of any Loan Document
specifying the number or percentage of Lenders required to waive, amend or
modify any rights thereunder or make any determination or grant any consent
thereunder, without the written consent of each Lender; provided further that no such
agreement shall amend, modify or otherwise affect the rights or duties of any
Agent hereunder without the prior written consent of such Agent.

     

    (c)  If,
in connection with any proposed waiver, amendment or modification of this
Agreement or any other Loan Document or any provision hereof or thereof, the
consent of one or more of the Lenders whose consent is required is not obtained,
then the Company shall have the right to replace each such non-consenting Lender
with one or more assignees pursuant to Section 2.19(b); provided that at the
time of such replacement, each such assignee consents to the proposed waiver,
amendment or modification.

     

    SECTION
9.03.  Expenses; Indemnity; Damage
Waiver.  (a)  The Company shall pay (i) all
reasonable out-of-pocket expenses incurred by the Facility Agent, the Canadian
Facility Agent, the Lead Arrangers and their respective Affiliates, including
the reasonable fees, charges and disbursements of Cravath, Swaine & Moore
LLP, counsel for the Agents and the Lead Arrangers, in connection with the
syndication of the credit facilities provided for herein, the preparation and
administration of the Loan Documents or any amendments, modifications or waivers
of the provisions thereof (whether or not the transactions contemplated hereby
or thereby shall be consummated), (ii) all out-of-pocket expenses incurred
by either Agent or any Lender, including the fees, charges and disbursements of
any counsel for either Agent or any Lender, in connection with the enforcement
or protection of its rights in connection with the Loan Documents, including its
rights under this Section, or in connection with the Loans made and the B/As
accepted and purchased hereunder, including all such out-of-pocket expenses
incurred during  any workout, restructuring or negotiations in respect
of such Loans or B/As.

     

    (b)  The
Company shall indemnify each Agent, each Lead Arranger, each Lender, and each
Related Party of any of the foregoing Persons (each such Person being called an
“Indemnitee”)
against, and hold each Indemnitee harmless from, any and all losses, claims,
damages, liabilities and related expenses, including the fees, charges and
disbursements of any counsel for any Indemnitee, incurred by or asserted against
any Indemnitee arising out of, in connection with, or as a result of
(i) the execution or

    
      
        
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    delivery
of any Loan Document or any other agreement or instrument contemplated hereby,
the performance by the parties to the Loan Documents of their respective
obligations thereunder or the consummation of the Transactions or any other
transactions contemplated hereby, (ii) any Loan or B/A or the use of the
proceeds therefrom, (iii) any actual or alleged presence or Release of
Hazardous Materials on or from any property owned or operated by the Company or
any of its Subsidiaries, or any Environmental Liability related in any way to
the Company or any of its Subsidiaries, or (iv) any actual or prospective
claim, litigation, investigation or proceeding relating to any of the foregoing,
whether based on contract, tort or any other theory and regardless of whether
any Indemnitee is a party thereto; provided that such
indemnity shall not, as to any Indemnitee, be available (i) to the extent
that such losses, claims, damages, liabilities or related expenses are
determined by a court of competent jurisdiction by final and nonappealable
judgment to have resulted from the gross negligence or wilful misconduct of such
Indemnitee (it being understood that, for purposes of this clause, each of a
Lead Arranger, an Agent or a Lender, on the one hand, and their respective
officers, directors, employees, agents and controlling persons, on the other
hand, shall be considered to be a single party seeking indemnification) or
(ii) with respect to any amounts paid pursuant to any settlement made by
such Indemnitee without the consent of the Company, which consent shall not be
unreasonably withheld.

     

    (c)  To
the extent that the Company fails to pay any amount required to be paid by it to
an Agent under paragraph (a) or (b) of this Section, each Lender severally
agrees to pay to such Agent such Lender’s Applicable Percentage (determined as
of the time that the applicable unreimbursed expense or indemnity payment is
sought) of such unpaid amount; provided that the
unreimbursed expense or indemnified loss, claim, damage, liability or related
expense, as the case may be (i) was incurred by or asserted against such Agent
in its capacity as such.  Any payment by a Lender hereunder shall not
relieve the Company of its liability in respect thereof.

     

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

     

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

     

    SECTION
9.04.  Successors and
Assigns.  (a)  The provisions of this Agreement shall
be binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns permitted hereby, except that (i) neither
the Company nor any Borrower may assign or otherwise transfer any of its rights
or obligations hereunder without the prior written consent of each Lender or, in
the case of a Borrower, each relevant Lender (and any attempted assignment or
transfer by the Company or any Borrower without such consent shall be null and
void) and (ii) no Lender may assign or otherwise transfer its rights or
obligations hereunder except in accordance with this

    
      
        
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    Section.  Nothing
in this Agreement, expressed or implied, shall be construed to confer upon any
Person (other than the parties hereto, their respective successors and assigns
permitted hereby, Participants (to the extent provided in paragraph (c) of
this Section) and, to the extent expressly contemplated hereby, the Related
Parties of each Agent and each Lender) any legal or equitable right, remedy or
claim under or by reason of this Agreement.

     

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

     

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

     

    (B)  the
Facility Agent; provided that no
consent of the Facility Agent shall be required for an assignment to an assignee
that is (i) a Lender immediately prior to giving effect to such assignment,
(ii) an Affiliate of any such Lender or (iii) an Approved Fund with respect
to such Lender.

     

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

     

    (A)  except
in the case of an assignment to a Lender or an Affiliate of a Lender or an
assignment of the entire remaining amount of the assigning Lender’s Commitment,
the amount of the Commitment of the assigning Lender subject to each such
assignment (determined as of the date the Assignment and Assumption with respect
to such assignment is delivered to the Facility Agent) shall not be less than
US$5,000,000 unless each of the Company and the Facility Agent otherwise
consent; provided that no such
consent of the Company shall be required if an Event of Default has occurred and
is continuing;

     

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

     

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

     

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

     

    (E)  in
the case of an assignment by a Lender to a CLO (as defined below) administered
or managed by such Lender or by an Affiliate of such Lender, the assigning
Lender may retain the sole right to approve any amendment,

    
      
        
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    modification
or waiver of any provision of this Agreement, provided that the
Assignment and Assumption between such Lender and such CLO may provide that such
Lender will not, without the consent of such CLO, agree to any amendment,
modification or waiver described in the first proviso to Section 9.02(b)
that affects such CLO; and

     

    (F)  if
the assignee is not a Canadian Resident, such assignee shall have a branch or
Affiliate that is a Canadian Resident.

     

    For
purposes of this Section 9.04(b), the terms “Approved Fund” and “CLO” have
the following meanings:

     

    “Approved Fund” means,
with respect to any Lender, (a) a CLO administered or managed by such
Lender or an Affiliate of such Lender and (b) with respect to any Lender
that is a fund which invests in bank loans and similar extensions of credit, any
other fund that invests in bank loans and similar extensions of credit and is
managed by the same investment advisor as such Lender or by an Affiliate of such
investment advisor.

     

    “CLO” means any entity
(whether a corporation, partnership, trust or otherwise) that is engaged in
making, purchasing, holding or otherwise investing in bank loans and similar
extensions of credit in the ordinary course of its business and is administered
or managed by a Lender or an Affiliate of such Lender.

     

    (iii)  Subject
to acceptance and recording thereof pursuant to paragraph (b)(iv) of this
Section, from and after the effective date specified in each Assignment and
Assumption the assignee thereunder shall be a party hereto and, to the extent of
the interest assigned by such Assignment and Assumption, have the rights and
obligations of a Lender under this Agreement, and the assigning Lender
thereunder shall, to the extent of the interest assigned by such Assignment and
Assumption, be released from its obligations under this Agreement (and, in the
case of an Assignment and Assumption covering all of the assigning Lender’s
rights and obligations under this Agreement, such Lender shall cease to be a
party hereto but shall continue to be entitled to the benefits of
Sections 2.15, 2.16, 2.17 and 9.03).  Any assignment or transfer
by a Lender of rights or obligations under this Agreement that does not comply
with this Section 9.04 shall be treated for purposes of this Agreement as a
sale by such Lender of a participation in such rights and obligations in
accordance with paragraph (c) of this Section.

     

    (iv)  The
Facility Agent, acting for this purpose as an agent of the Borrowers, shall
maintain at one of its offices a copy of each Assignment and Assumption
delivered to it and a register for the recordation of the names and addresses of
the Lenders, and the Commitment of, principal amount of the Loans owing to, and
amounts in respect of B/As owing to, each Lender pursuant to the terms hereof
from time to time (the “Register”), and shall
give prompt written notice to the Company of each Assignment and Assumption so
accepted and recorded.  The entries in the Register shall be
conclusive, and the Company, the Borrowers, the Agents and the Lenders may
treat

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

     

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

     

    (c)  (i)  Any
Lender may, without the consent of the Company, any Agent or any Swingline
Lender, sell participations to one or more banks or other entities (a “Participant”) in all
or a portion of such Lender’s rights and obligations under this Agreement
(including all or a portion of its Commitment and the Loans owing to it); provided that
(A) such Lender’s obligations under this Agreement shall remain unchanged,
(B) such Lender shall remain solely responsible to the other parties hereto
for the performance of such obligations and (C) the Company, the Borrowers,
the Agents and the other Lenders shall continue to deal solely and directly with
such Lender in connection with such Lender’s rights and obligations under this
Agreement.  Any agreement or instrument pursuant to which a Lender
sells such a participation shall provide that such Lender shall retain the sole
right to enforce the Loan Documents and to approve any amendment, modification
or waiver of any provision of the Loan Documents; provided that such
agreement or instrument may provide that such Lender will not, without the
consent of the Participant, agree to any amendment, modification or waiver
described in the first proviso to Section 9.02(b) that affects such
Participant.  Subject to paragraph (c)(ii) of this Section, each
of the Company and the Borrowers agrees that each Participant shall be entitled
to the benefits of Sections 2.15, 2.16 and 2.17 to the same extent as if it
were a Lender and had acquired its interest by assignment pursuant to
paragraph (b) of this Section.  To the extent permitted by law,
each Participant also shall be entitled to the benefits of Section 9.08 as
though it were a Lender, provided that such Participant agrees to be subject to
Section 2.18(c) as though it were a Lender.  Each Lender that
sells a participating interest in all or a portion of such Lender’s rights and
obligations under this Agreement (including all or a portion of its Commitment
and the Loans owing to it) to a Participant shall, as agent of the applicable
Borrower solely for the purpose of this Section 9.04(c), record in book entries
maintained by such Lender the name and the amount of the participating interest
of each Participant entitled to receive payments in respect of such
participating interests.

     

    (ii)  A
Participant shall not be entitled to receive any greater payment under
Section 2.15 or 2.17 than the applicable Lender would have been entitled to
receive with respect to the participation sold to such Participant, unless the
sale of the

    
      
        
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    participation
to such Participant is made with the prior written consent of the
Company.  A Participant that would be a Foreign Lender if it were a
Lender shall not be entitled to the benefits of Section 2.17 unless the
Company is notified of the participation sold to such Participant and such
Participant agrees, for the benefit of the Company and the Borrowers, to comply
with Section 2.17(e) as though it were a Lender.

     

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

     

    SECTION
9.05.  Survival.  All
covenants, agreements, representations and warranties made by the Loan Parties
in the Loan Documents and in the certificates or other instruments delivered in
connection with or pursuant to this Agreement or any other Loan Document shall
be considered to have been relied upon by the other parties hereto and shall
survive the execution and delivery of the Loan Documents and the making of any
Loans or acceptance of any B/A, regardless of any investigation made by any such
other party or on its behalf and notwithstanding that any Agent or any Lender
may have had notice or knowledge of any Default or incorrect representation or
warranty at the time any credit is extended hereunder, and shall continue in
full force and effect as long as the principal of or any accrued interest on any
Loan or any fee or any other amount payable under this Agreement is outstanding
and so long as the Commitments have not expired or terminated.  The
provisions of Sections 2.15, 2.16, 2.17 and 9.03 and Article VIII
shall survive and remain in full force and effect regardless of the consummation
of the transactions contemplated hereby, the repayment of the Loans and B/A, the
expiration or termination of the Commitments or the termination of this
Agreement or any provision hereof.

     

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

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

     

    SECTION
9.08.  Right
of Setoff.  If an Event of Default shall have occurred and be
continuing, each Lender and each of its Affiliates is hereby authorized at any
time and from time to time, to the fullest extent permitted by law, to set off
and apply any and all deposits (general or special, time or demand, provisional
or final) at any time held and other obligations at any time owing by such
Lender or Affiliate to or for the credit or the account of the Company or any
Borrower against any of and all the obligations of the Company or such Borrower
now or hereafter existing under this Agreement held by such Lender, irrespective
of whether or not such Lender shall have made any demand under this Agreement,
but only to the extent such obligations are then due and payable.  The
rights of each Lender under this Section are in addition to other rights and
remedies (including other rights of setoff) which such Lender may
have.

     

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

     

    (b)  Each
of the Company and the Borrowers hereby irrevocably and unconditionally submits,
for itself and its property, to the nonexclusive jurisdiction of the Supreme
Court of the State of New York sitting in New York County and of the
United States District Court of the Southern District of New York, and any
appellate court from any thereof, in any action or proceeding arising out of or
relating to any Loan Document, or for recognition or enforcement of any
judgment, and each of the parties hereto hereby irrevocably and unconditionally
agrees that all claims in respect of any such action or proceeding may be heard
and determined in such New York State or, to the extent permitted by law,
in such Federal court.  Each of the parties hereto agrees that a final
judgment in any such action or proceeding shall be conclusive and may be
enforced in other jurisdictions by suit on the judgment or in any other manner
provided by law.  Nothing in this Agreement or any other Loan Document
shall affect any right that any Agent, or any Lender may otherwise have to bring
any action or proceeding relating to this Agreement or any other Loan Document
against the Company or any Borrower or its properties in the courts of any
jurisdiction.

     

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

    
      
        
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      (d)  Each
party to this Agreement irrevocably consents to service of process in the manner
provided for notices in Section 9.01.  Each Borrower hereby
irrevocably designates, appoints and empowers CT Corporation System, with offices on the date hereof at 111 Eighth
Avenue, 13th Floor, New York, New York 10011, as its designee, appointee and
agent to receive and accept for an on its behalf, and in respect of its
property, service of any and all legal process, summons, notices and documents
which may be served in any action or proceeding described in paragraph (b)
above.  If for any reason such designee, appointee and agent shall
cease to act as such, each Borrower agrees to designate a new designee,
appointee and agent in New York City on the terms and for the purposes of this
provision reasonably satisfactory to the Agents.  Nothing in this
Agreement or any other Loan Document will affect the right of any party to this
Agreement to serve process in any other manner permitted by
law.

    

    
       

    

    SECTION
9.10.  WAIVER OF JURY
TRIAL.  EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY
IN  ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR
RELATING TO THIS AGREEMENT, THE GUARANTEE AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER
THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE,
AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE,
THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO
HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE
MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

     

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

     

    SECTION
9.12.  Confidentiality.  Each
of the Facility Agent and Canadian Facility Agent and each of the Lenders agrees
to maintain the confidentiality of the Information (as defined below), except
that Information may be disclosed (a) to its and its Affiliates’ directors,
officers, employees and agents, including accountants, legal counsel and other
advisors (it being understood that the Persons to whom such disclosure is made
will be informed of the confidential nature of such Information and instructed
to keep such Information confidential), (b) to the extent requested by any
regulatory authority, (c) to the extent  required by applicable
laws or regulations or by any subpoena or similar legal process (subject to the
last sentence of this paragraph), (d) to any other party to this Agreement,
(e) in connection with the exercise of any remedies hereunder or any suit,
action or proceeding relating to this Agreement or 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

     

    
      
        
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    obligations
under this Agreement or (ii) any actual or prospective counterparty (or its
advisors) to any swap or derivative transaction relating to the Company and its
obligations, (g) with the consent of the Company or any Borrower,
(h) to any party to the Existing Company Credit Agreement, or (i) to
the extent such Information (i) becomes publicly available other than as a
result of a breach of this Section or (ii) becomes available to any Agent
or any Lender on a nonconfidential basis from a source other than the Company or
any Borrower.  For the purposes of this Section, “Information” means
all information received from the Company or any Borrower relating to the
Company or its business, other than any such information that is available to
any Agent or any Lender on a nonconfidential basis prior to disclosure by the
Company or any Borrower.  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.  If any
Lender receives any subpoena or similar legal process referred to in
clause (c) above, such Lender will endeavor, to the extent practicable, to
notify the Company and afford the Company an opportunity to challenge the same
before disclosing any confidential Information pursuant thereto.

     

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

     

    SECTION
9.14.  Judgment
Currency.  If for the purposes of obtaining judgment in any
court it is necessary to convert a sum due from any Borrower hereunder in the
currency expressed to be payable herein (the “Specified Currency”)
into another currency, the parties hereto agree, to the fullest extent that they
may effectively do so, that the rate of exchange used shall be that at which in
accordance with normal banking procedures the Facility Agent or Canadian
Facility Agent could purchase the Specified Currency with such other currency at
the Facility Agent’s London office or the Canadian Facility Agent’s Toronto
office, respectively, on the Business Day preceding that on which final judgment
is given.  The obligations of each Borrower in respect of any sum due
to any Lender or any Agent hereunder shall, notwithstanding any judgment in a
currency other than the Specified Currency, be discharged only to the extent
that on the Business Day following receipt by such Lender or such Agent (as the
case may be) of any sum adjudged to be so due in such other currency such Lender
or such Agent (as the

    
      
        
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    case may
be) may in accordance with normal banking procedures purchase the Specified
Currency with such other currency; if the amount of the Specified Currency so
purchased is less than the sum originally due to such Lender or such Agent, as
the case may be, in the Specified Currency, the applicable Borrower agrees, to
the fullest extent that it may effectively do so, as a separate obligation and
notwithstanding any such judgment, to indemnify such Lender or such Agent, as
the case may be, against such loss.

     

    SECTION
9.15.  USA
Patriot Act.  Each Lender hereby notifies the Company and 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 Company and each
Borrower, which information includes the name and address of the Company and
each Borrower and other information that will allow such Lender to identify the
Company and each Borrower in accordance with the Act.

     

    SECTION
9.16.  Existing Credit Agreement;
Effectiveness of Amendment and Restatement.  Until this
Agreement becomes effective in accordance with the terms of Section 4.01, the
Existing Credit Agreement shall remain in full force and effect and shall not be
affected hereby.  After the Effective Date, the provisions of the
Existing Credit Agreement shall be superseded by the provisions
hereof.  The parties hereto agree to waive any notices required under
Section 2.09(c), 2.11(b) or 2.11(c) of the Existing Credit Agreement in
connection with the effectiveness of this Agreement.

    
      
        
          [[NYCORP:3031108v4:4452W:11/27/07--08:05
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79

    

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

     

     

    
      	 
      	
              YUM!
      BRANDS, INC.,

               

            
	 
      	 
      	
              by

               

            
	 
      	 
      	
              Name:  R.
      Scott Toop

            
	 
      	 
      	
              Title:    Vice
      President, Associate

              General
      Counsel and

              Assistant Secretary

               

            
	 
      	 
      	 
      
	 
      	
              YUM!
      RESTAURANT HOLDINGS,

               

            
	 
      	 
      	
              by

               

            
	 
      	 
      	
              Name:  Timothy
      J. Ashby

            
	 
      	 
      	
              Title:     Director

               

            
	 
      	 
      	 
      
	 
      	
              YUM!
      RESTAURANTS INTERNATIONAL S.À.R.L., LLC (U.S. BRANCH),

               

            
	 
      	 
      	
              by

               

            
	 
      	 
      	
              Name:
      Alan J. Kohn

            
	 
      	 
      	
              Title:Branch
      Manager

               

            
	 
      	 
      	 
      
	 
      	
              YUM!
      RESTAURANTS

              INTERNATIONAL
      (CANADA) LP,

              by
      its general partner YUM! BRANDS CANADA MANAGEMENT HOLDING
      INC.,

               

            
	 
      	 
      	
              by

               

            
	 
      	 
      	
              Name:  Sabina
      Rizvi

            
	 
      	 
      	
              Title:   
      Chief Financial Officer

            

    

     

    
      
        
          [[NYCORP:3031108v4:4452W:11/27/07--08:05
p]] 

        

         

      

      
         

        
          

        

      

      
         

      
80

    

    
      	 
      	
              CITIBANK
      INTERNATIONAL PLC,

              individually
      and as Facility Agent,

               

            
	 
      	 
      	
              by

               

            
	 
      	 
      	
              Name:

            
	 
      	 
      	
              Title:

               

            
	 
      	 
      	 
      
	 
      	
              CITIBANK
      N.A., CANADIAN BRANCH,

              individually
      and as Canadian Facility Agent,

               

            
	 
      	 
      	
              by

               

            
	 
      	 
      	
              Name:

            
	 
      	 
      	
              Title:

               

            
	 
      	 
      	 
      
	 
      	
              JPMORGAN
      CHASE BANK, N.A.

               

            
	 
      	 
      	
              by

               

            
	 
      	 
      	
              Name:

            
	 
      	 
      	
              Title:

               

            

    

     

    
      
        
          [[NYCORP:3031108v4:4452W:11/27/07--08:05
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81

    
    

     

    
      	 	 LENDERS
      UNDER THE CREDIT AGREEMENT
	 	 
	 	 SIGNATURE PAGE TO AMENDED AND RESTATED CREDIT AGREEMENT DATED AS OF
      _____________ ___, 2007, AMONG YUM! BRANDS, INC., YUM! RESTAURANTS
      HOLDINGS, YUM! RESTAURANTS INTERNATIONAL S.à.R.L., LLC (U.S. BRANCH), YUM!
      RESTAURANTS INTERNATIONAL (CANADA) LP, THE LENDERS PARTY THERETO, CITIBANK
      INTERNATIONAL PLC, AS FACILITY AGENT AND CITIBANK, N.A., AS CANADIAN
      FACILITY AGENT.

    

     

    
      	 
      	
              Name
      of Institution:

               

               

               

            
	 
      	 
      	
               

               

              by

               

            
	 
      	 
      	
              Name:

            
	 
      	 
      	
              Title:

               

            
	 
      	 
      	 
      
	 
      	 
      	
              by

               

            
	 
      	 
      	
              Name:

            
	 
      	 
      	
              Title:

               

            

    

     

    
      
        
          [[NYCORP:3031108v4:4452W:11/27/07--08:05
p]] 

        

         

      

      
         

        
          

        

      

      
         

      
82

    

     

    SCHEDULE
A

     

    TO

     

    CREDIT
AGREEMENT

     

    INITIAL
GUARANTORS

     

    Subsidiary (Jurisdiction of
Incorporation)

    

    A&W
Restaurants, Inc. (Michigan)

    Kentucky
Fried Chicken Corporate Holdings Ltd. (Delaware)

    Kentucky
Fried Chicken International Holdings, Inc. (Delaware)

    KFC
Corporation (Delaware)

    KFC
Holding Co. (Delaware)

    KFC U.S.
Properties, Inc. (Delaware)

    LJS
Restaurants, Inc. (Delaware)

    Long John
Silver’s, Inc. (Delaware)

    Pizza
Hut, Inc. (California)

    Pizza Hut
International, LLC (Delaware)

    Pizza Hut
of America, Inc. (Delaware)

    Taco Bell
Corp. (California)

    Taco Bell
of America, Inc. (Delaware)

    YGR
America, Inc. (Delaware)

    Yorkshire
Global Restaurants, Inc. (Maryland)

    YUM
Restaurant Services Group, Inc. (Delaware)

     

    
      
        
          [[NYCORP:3031108v4:4452W:11/27/07--08:05
p]] 

        

         

      

      
         

        
          

        

      

      
         

        
          SCHEDULE
2.01

          To Credit
Agreement

        

      

    

    COMMITMENTS

     

    

    
      	
              Lenders

            	
              Commitments

            
	
              JPMorgan
      Chase Bank, N.A.

            	
              US$90,000,000

            
	
              Citibank,
      N.A.

            	
              US$90,000,000

            
	
              HSBC
      Bank USA, N.A.

            	
              US$50,000,000

            
	
              Cooperative
      Centrale Raiffeisen-

              Boerenleenbank
      B.A., “Rabobank Nederland”

            	
               

              US$50,000,000

            
	
              The
      Bank of Nova Scotia

            	
              US$35,000,000

            
	
              Wachovia
      Bank, National Association

            	
              US$35,000,000

            
	
              Total

            	
              US$350,000,000.00

            

    

    

     

    
      
        
          [[NYCORP:3031108v4:4452W:11/27/07--08:05
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          SCHEDULE
2.13

          To Credit
Agreement

        

      

    

    CALCULATION OF THE MANDATORY
COST

     

    
      	
              1.

            	
              General

            

    

     

    
      	
              (a)

            	
              The
      Mandatory Cost is to compensate a Lender for the cost of compliance
      with:

            

    

     

    
      	
               
      

            	
              (i)

            	
              the
      requirements of the Bank of England and/or the Financial Services
      Authority (or, in either case, any other authority which replaces any of
      its functions); or

            

    

     

    
      	
               
      

            	
              (ii)

            	
              the
      requirements of the European Central
Bank.

            

    

     

    
      	
              (b)

            	
              The
      Mandatory Cost is expressed as a percentage rate per
  annum.

            

    

     

    
      	
              (c)

            	
              The
      “Mandatory Cost” is the weighted average (weighted in proportion to the
      percentage share of each Lender in the relevant Loan) of the rates for the
      Lenders calculated by the Facility Agent in accordance with this Schedule
      2.13 on the first day of an Interest Period (or as soon as possible
      thereafter).

            

    

     

    
      	
              (d)

            	
              The
      Facility Agent must distribute each amount of Mandatory Cost among the
      Lenders on the basis of the rate for each
  Lender.

            

    

     

    
      	
              (e)

            	
              Any
      determination by the Facility Agent pursuant to this Schedule 2.13 will
      be, in the absence of manifest error, conclusive and binding on all the
      Parties.

            

    

     

    
      	
              2.

            	
              For
      a Lender lending from a Facility Office in the
  U.K.

            

    

     

    
      	
              (a)

            	
              The
      relevant rate for a Lender lending from a Facility Office in the U.K. is
      calculated in accordance with the following
  formula:

            

    

     

    
      
        	
                E x
      0.01

              	
                 
      per cent. per annum

              
	
                300

              

      

where on
the day of application of the formula, E is calculated by the Facility Agent as
being the average of the rates of charge under the Fees Rules supplied by the
Reference Banks to the Facility Agent under paragraph (d) below and expressed in
pounds per £1 million.

     

    
      	
              (b)

            	
              For
      the purposes of this paragraph 2:

            

    

     

    
      	
              (i)   

            	
               “Facility
      Office” means, for the purposes of this Schedule 2.13, the office
      or offices notified by a Lender to the Facility Agent in writing on or
      before the date it becomes a Lender (or, following
      that date, by not less than five Business Days’ written notice) as the
      office or offices through which it will perform its obligations under this
      Agreement;

            

    

     

    
      
        
          [[NYCORP:3031108v4:4452W:11/27/07--08:05
p]] 

        

         

      

      
         

        
          

        

      

      
         

        
          SCHEDULE
2.13

          To Credit
Agreement

        

      

    

    
      	
               (ii)   

            	
               “Fees Rules” means
      the then current rules on periodic fees in the FSA Supervision Manual or
      any other law or regulation as may then be in force for the payment of
      fees for the acceptance of
deposits;

            

    

     

    
      	
               
      (iii)  

            	
              “Fee Tariffs”
      means the fee tariffs specified in the Fees Rules under the activity group
      A.1 Deposit acceptors (ignoring any minimum fee or zero rated fee required
      pursuant to the Fees Rules but applying any applicable discount
      rate);

            

    

     

    
       (iv)  “FSA” means the
Financial Services Authority;

    

     

    
      	
               
      (v)   

            	
              “Participating Member
      State” means any member state of the European Community that adopts
      or has adopted the Euro as its lawful currency in accordance with
      legislation of the European Community relating to Economic and Monetary
      Union;

            

    

     

    
      	
               
      (vi)  

            	
              “Tariff Base”
      has the meaning given to it in, and will be calculated in accordance with,
      the Fees Rules.

            

    

     

    
      	
              (c) 

            	
              Each
      rate calculated in accordance with the formula is, if necessary, rounded
      to four decimal places.

            

    

     

    
      	
              (d)  

            	
              If
      requested by the Facility Agent, each Reference Bank must, as soon as
      practicable after publication by the FSA, supply to the Facility Agent the
      rate of charge payable by that Reference Bank to the FSA under the Fees
      Rules for that financial year of the FSA (calculated by that Reference
      Bank as being the average of the Fee Tariffs applicable to that Reference
      Bank for that financial year) and expressed in pounds per £1 million of
      the Tariff Base of that Reference
Bank.

            

    

     

    
      	
              (e)

            	
              Each
      Lender must supply to the Facility Agent the information required by it to
      make a calculation of the rate for that Lender.  In particular,
      each Lender must supply the following information on or prior to the date
      on which it becomes a Lender:

            

    

     

    
      	
               
      (i)    

            	
              the
      jurisdiction of its Facility Office;
and

            

    

     

    
      	
              (ii)

            	
              any
      other information that the Facility Agent reasonably requires for that
      purpose.

            

    

     

    Each
Lender must promptly notify the Facility Agent of any change to the information
supplied to it under this paragraph.

     

    
      	
              (f)

            	
              The
      rates of charge of each Reference Bank for the purpose of E above are
      determined by the Facility Agent based upon the information supplied to it
      under paragraphs (d) and (e) above.

            

    

     

    
      	
              (g)

            	
              The
      Facility Agent has no liability to any Party if its calculation over or
      under compensates any Lender.  The Facility Agent is entitled to
      assume that the information provided by any Lender or Reference Bank under
      this Schedule is true and correct in all
  respects.

            

    

     

    
      
        
          [[NYCORP:3031108v4:4452W:11/27/07--08:05
p]] 

        

         

      

      
         

        
          

        

      

      
         

        
          SCHEDULE
2.13

          To Credit
Agreement

        

      

    

     

    
      	
              3.

            	
              For
      a Lender lending from a Facility Office in a Participating Member
      State

            

    

     

    
      	
              (a)

            	
              The
      relevant rate for a Lender lending from a Facility Office in a
      Participating Member State is the percentage rate per annum notified by
      that Lender to the Facility Agent.  This percentage rate per
      annum must be certified by that Lender in its notice to the Facility Agent
      as its reasonable determination of the cost (expressed as a percentage of
      that Lender’s share in all Loans made from that Facility Office) of
      complying with the minimum reserve requirements of the European Central
      Bank in respect of Loans made from that Facility
  Office.

            

    

     

    
      	
              (b)

            	
              If
      a Lender fails to specify a rate under paragraph (a) above, the Facility
      Agent will assume that the Lender has not incurred any such
      cost.

            

    

     

    
      	
              4.

            	
              Changes

            

    

     

    
      	
              (a)

            	
              The
      Facility Agent may, after consultation with the Company and the Lenders,
      determine and notify all the Parties of any amendment to this Schedule
      2.13 which is required in order to comply
with:

            

    

     

    
      	
              (i)

            	
              any
      change in law or regulation; or

            

    

     

    
      	
               (ii)    

            	
              any
      requirement imposed by the Bank of England, the Financial Services
      Authority or the European Central Bank (or, in any case, any successor
      authority).

            

    

     

    
      	
              (b)

            	
              If
      the Facility Agent, after consultation with the Company, determines that
      the Mandatory Cost for a Lender lending from a Facility Office in the U.K.
      can be calculated by reference to a screen, the Facility Agent may notify
      all the Parties of any amendment to this Agreement which is required to
      reflect this.

            

    

     

    
      
        
          [[NYCORP:3031108v4:4452W:11/27/07--08:05
p]] 

        

         

      

      
         

        
          

        

      

      
         

        
          SCHEDULE
2.17

          To Credit
Agreement

        

      

    

    
      	
               
      

            	
              PTR
      SCHEME

            

    

     

    
      	
               
      

            	
              (a)
      Each Treaty Lender:

            

    

     

    (i)
irrevocably appoints the Facility Agent to act as syndicate manager under, and
authorizes the Facility Agent to operate, and take any action necessary or
desirable under, the PTR Scheme in connection with the Loans made to the UK
Borrower;

     

    (ii)
shall co-operate with the Facility Agent in completing any procedural
formalities necessary under the PTR Scheme, and shall promptly supply to the
Facility Agent such information as the Facility Agent may request in connection
with the operation of the PTR Scheme;

     

    (iii)
without limiting the liability of the UK Borrower or the Company under this
Agreement, shall, within 5 Business Days of demand, indemnify the Facility Agent
for any liability or loss incurred by the Facility Agent as a result of the
Facility Agent acting as syndicate manager under the PTR Scheme in connection
with the Treaty Lender’s participation in any UK Revolving Loan or UK Swingline
Loan; and

     

    (iv)
shall, within 5 Business Days of demand, indemnify each of the UK Borrower and
the Company for any Tax which the UK Borrower or the Company, as applicable,
becomes liable to pay in respect of any payments made to such Treaty Lender
arising as a result of any provisional authority issued in respect of such
Treaty Lender by the UK HM Revenue & Customs (“HMRC”) under the PTR
Scheme being withdrawn, except and only to the extent that such Treaty Lender
would, if a deduction had been required in respect of such payments, have been
entitled to receive additional amounts under Section 2.17.

     

    
      	
               
      

            	
              (b)
      Each of the UK Borrower and the Company acknowledges that it is fully
      aware of its contingent obligations under the PTR Scheme and
      shall:

            

    

     

    (i) promptly supply to the Facility
Agent such information as the Facility Agent may reasonably request in
connection with the operation of the PTR Scheme; and

     

    
      	
               
      

            	
              (ii)
      act in accordance with any provisional notice issued by HMRC under the PTR
      Scheme.

            

    

     

    
      	
               
      

            	
              (c)
      The Facility Agent agrees to provide, as soon as reasonably practicable, a
      copy of any provisional authority issued to it under the PTR Scheme in
      connection with any UK Revolving Loan or UK Swingline Loan to the UK
      Borrower specified in such provisional
  authority.

            

    

     

    
      
        
          [[NYCORP:3031108v4:4452W:11/27/07--08:05
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          SCHEDULE
2.17

          To Credit
Agreement

        

      

    

    
      	
               
      

            	
              (d)
      Each of the Company, the UK Borrower and each Lender that is a Foreign
      Lender with respect to the UK Borrower acknowledge that the Facility
      Agent:

            

    

     

    
      	
               
      

            	
              (i)
      is entitled to rely completely upon information provided to it in
      connection with paragraphs (a) or (b)
above;

            

    

     

    
      	
               
      

            	
              (ii)
      is not obliged to undertake any enquiry into the accuracy of such
      information, nor into the status of the Treaty Lender or, as the case may
      be, the UK Borrower or the Company providing such
    information;

            

    

     

    
      	
               
      

            	
              (iii)
      shall have no liability to any person for the accuracy of any information
      it submits in connection with paragraph (a)(i) above;
  and

            

    

     

    
      	
               
      

            	
              (e)
      For the avoidance of doubt, nothing in this Schedule 2.17 shall cause the
      Facility Agent to be liable for (a) any act taken by it (or omission); or
      (b) any costs, loss or liability suffered by a Treaty Lender, in acting as
      syndicate manager for the Treaty Lenders under the PTR
    Scheme.

            

    

     

    In this
Schedule, the following terms are defined as follows:

     

    “PTR Scheme” means the
Provisional Treaty Relief scheme as described in Inland Revenue Guidelines dated
January 2003 and administered by the HMRC’s Centre for
Non-Residents.

     

    “Treaty Lender” means
a Lender which (i) is treated as a resident of a Treaty State for the purposes
of the Treaty and (ii) does not carry on a business in the United Kingdom
through a permanent establishment with which that Lender’s participation in
Loans made to the UK Borrower is effectively connected.

     

    “Treaty State” means a
jurisdiction having a double taxation agreement (a “Treaty”) with the
United Kingdom which makes provision for full exemption from tax imposed by the
United Kingdom on interest.

     

    
      
        
          [[NYCORP:3031108v4:4452W:11/27/07--08:05
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          SCHEDULE
3.06

          To Credit
Agreement

        

      

    

    DISCLOSED
MATTERS

    

    

    

    
      	
              1.

            	
              The
      matters described in the Company’s Annual Report on Form 10-K for the
      fiscal year ended December 30, 2006 under the captions “Item 3 – Legal
      Proceedings” and in “Note 22 – Guarantees, Commitments and Contingencies”
      in the Notes to Consolidated Financial Statements under “Item 8 –
      Financial Statements and Supplementary
Data.”

            

    

    

    
      	
              1.

            	
              The
      matters described in the Company’s Quarterly Report on Form 10-Q for the
      quarterly period ended September 8, 2007 under the captions “Part II –
      Item 1 – Legal Proceedings” and “Note 11 – Guarantees, Commitments and
      Contingencies” in the Notes to Condensed Consolidated Financial Statements
      under “Part I – Item 1 – Financial
Statements.”

            

    

     

    
      
        
          [[NYCORP:3031108v4:4452W:11/27/07--08:05
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          SCHEDULE
3.11

          To Credit
Agreement

        

      

    

    DISCLOSURE

    

    None.

     

    
      
        
          [[NYCORP:3031108v4:4452W:11/27/07--08:05
p]] 

        

         

      

      
         

        
          

        

      

      
         

        
          SCHEDULE
6.01

          To Credit
Agreement

        

      

    

    EXISTING
INDEBTEDNESS

    

    

    
      	
              1.

            	
              Indebtedness
      of Domestic Subsidiaries (relates to Capital Lease Obligations) as of
      November 3, 2007: US$ 98,175,000.

            

    

    

    
      	
              2.

            	
              Aircraft
      lease obligation of KFC U.S. Properties, Inc. (lessee) to Caremark
      Aviation, LLC (sublessor)*.

            

    

    

    

    

    * As of
the Effective Date, the nature of the lease and accounting treatment for this
obligation (i.e., whether it is an operating lease or a Capital Lease
Obligation) is still being determined.  The aircraft lease obligation
is expected to be no greater than US$60,000,000.

     

    
      
        
          [[NYCORP:3031108v4:4452W:11/27/07--08:05
p]] 

        

         

      

      
         

        
          

        

      

      
         

        
          SCHEDULE
6.02

          To Credit
Agreement

        

      

    

    EXISTING
LIENS

    

    
      	
               
      

            	
              1.

            	
              Liens
      created and existing pursuant to the sale-leaseback agreements, Master
      Lease Agreements and related agreements entered into by certain
      subsidiaries of the Company and evidencing the following sale-leaseback
      transactions:

            

    

    

    

    
      	
               

               

              Original
      Transaction

              Date

               

            	
               

               

              Lessor

            	
               

               

              Lessee

            
	
              April
      30, 2003

            	
              GE
      Capital Franchise Finance Corporation,

              successor
      in interest to FFCA Acquistion Corporation

            	
              KFC
      U.S. Properties, Inc.

            
	
              April
      30, 2003

              Amended
      August 15, 2003

               

            	
              LoJon
      Property II LLC

            	
              KFC
      U.S. Properties, Inc.

            

    

    

    

     

    [[NYCORP:3031108v4:4452W:11/27/07--08:05
p]]exhibit1033.htm

    Exhibit
10.33

    

     

    1999
LONG TERM INCENTIVE PLAN AWARD FOR JANUARY 24, 2008

    RESTRICTED
STOCK UNIT AGREEMENT

    

    AGREEMENT made as of January 24, 2008,
by and between YUM! Brands, Inc., a North Carolina corporation having its
principal office at 1441 Gardiner Lane, Louisville, Kentucky  40213
("YUM!") and the "Participant".

    

    W I T N E S S E T
H:

    

    WHEREAS, the shareholders of YUM!
approved the Long Term Incentive Plan (the "Plan"), for the purposes and subject
to the provisions set forth in the Plan;

    

    WHEREAS, pursuant to authority granted
to it in said Plan, the Compensation Committee of the Board of Directors of YUM!
(the "Committee"), has granted to Participant restricted stock units (to be
known hereinafter as “Yum Restricted Stock Units” or “YRSUs”) with respect to
the number of shares of YUM! Common Stock as set forth below;

    

    WHEREAS, YRSUs granted under the Plan
are to be evidenced by an Agreement in such form and containing such terms and
conditions as the Committee shall determine; and

    

    WHEREAS, in consideration of this
Award, the Participant is required to agree to restrictions on competition and
solicitation as set forth in this Agreement;

    

    NOW, THEREFORE, it is mutually agreed
as follows:

    

    1. Terms of
Award.  The following terms used in this Agreement shall have
the meanings set forth in this paragraph 1:

     

    
      	
              (a)  

            	
              The
      “Participant” is David C. Novak.

            

    

     

    
      	
              (b)  

            	
              The
      “Grant Date” is January 24, 2008.

            

    

     

    
      	
              (c)  

            	
              The
      number of “Units” granted under this Agreement is 187,398
      Units.  Each “Unit” represents the right to receive one share of
      Stock as of the Delivery Date, to the extent that the Participant is
      vested in such Units as of the Delivery Date, subject to the terms of this
      Agreement and the Plan.

            

    

     

    
      	
              (d)  

            	
              The
      “Delivery Date” shall be the day that is six months after the date on
      which the Participant incurs a Separation from Service; provided that if
      the Participant’s Separation from Service occurs by reason of his death,
      the “Delivery Date” will be his date of
death.

            

    

     

    Other
words and phrases used in this Agreement are defined in the Plan or elsewhere in
this Agreement.  Except where the context clearly implies or indicates
the contrary, a word, term, or phrase used in the Plan is similarly used in this
Agreement.

     

     

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    2. Award.  The
Participant is hereby granted the number of Units set forth in paragraph
1.

     

    3. Dividends and Voting
Rights.  The Participant will be credited with additional Units
to reflect dividends payable with respect to Stock during the period between the
Grant Date and the date shares are delivered to the Participant pursuant to
paragraph 5.  The number of Units to be credited by reason of
dividends shall equal the number of shares of Stock which could be purchased
with the dividends (assuming each Unit was a share of Stock), based on the value
of such Stock at the time such dividends are paid.  Dividends shall be
vested at the time, if any, at which the Units granted in accordance with
paragraph 1 of this Agreement are vested.  No dividends shall be
credited to or for the benefit of the Participant for Units with respect to
record dates occurring prior to the Grant Date, or with respect to record dates
occurring on or after the date, if any, on which the Participant has forfeited
those Units.  The Participant shall not be a shareholder of record
with respect to the Units and shall have no voting rights with respect to the
Units prior to the Delivery Date.

     

    4. Vesting and
Forfeiture.  If a Separation from Service does not occur prior
to the four-year anniversary of the Grant Date, then the Participant shall
become vested in all Units credited to the Participant under this Agreement on
such four-year anniversary, subject to the provisions of paragraph
8.  If a Change in Control occurs prior to the four-year anniversary
of the Grant Date and prior to the Participant’s Separation from Service, then
the Participant shall become vested in all Units credited to the Participant
under this Agreement on the Change in Control, subject to the provisions of
paragraph 8.  If the Participant’s Separation from Service occurs
prior to the four-year anniversary by reason of death or disability, then the
Participant shall become vested in all Units credited to the Participant under
this Agreement on the Separation from Service, subject to the provisions of
paragraph 8.  If the Participant’s Separation from Service occurs for
reasons other than death or disability prior to the four-year anniversary of the
Grant Date and prior to a Change in Control, the Participant shall forfeit all
Units on Separation from Service.  "Disability" shall mean the total
disability of the Participant as determined by the Committee, upon the basis of
such evidence as the Committee deems necessary and advisable.

     

    5. Delivery of
Shares.  If the Participant is vested in the Units as of the
Separation from Service, and prior to delivery of the shares in accordance with
this paragraph 5, such Units have not been forfeited in accordance with
paragraph 8, then, on the Delivery Date, the Participant shall receive one share
of Stock for each Unit credited to the Participant, subject to the terms of this
Agreement and the Plan.  As of the date of distribution of Shares with
respect to any Units, such Units shall be canceled.

     

    6. Withholding.  All
deliveries and distributions under this Agreement are subject to withholding of
all applicable taxes.  At the election of the Participant, and subject
to such rules and limitations as may be established by the Committee from time
to time, such withholding obligations may be satisfied through the surrender of
shares of Stock (i) which the Participant already owns; or (ii) to which the
Participant is otherwise entitled under the Plan; provided, however, that shares
described in this clause (ii) may be used to satisfy not more than the minimum
statutory withholding obligation (based on minimum statutory withholding rates
for Federal and state tax purposes, including payroll taxes, that are applicable
to such taxable income).

     

     

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

     

    7. Heirs and
Successors.  This Agreement shall be binding upon and inure to
the benefit of any assignee or successor in interest to YUM!, whether by merger,
consolidation or the sale of all or substantially all of the assets of
YUM!.  YUM! will require any successor (whether direct or indirect, by
purchase, merger, consolidation or otherwise) to all or substantially all of the
business and/or assets of YUM! to expressly assume and agree to perform this
Agreement in the same manner and to the same extent that YUM! would be required
to perform if no such succession had taken place.  This Agreement
shall be binding upon and inure to the benefit of the Participant or his or her
legal representative and any person to whom the YRSUs may be transferred by will
or the applicable laws of descent and distribution.  If any rights
exercisable by the Participant or benefits distributable to the Participant
under this Agreement have not been exercised or distributed, respectively, at
the time of the Participant’s death, such rights shall be exercisable by the
Designated Beneficiary, and such benefits shall be distributed to the Designated
Beneficiary, in accordance with the provisions of this Agreement and the
Plan.  The “Designated Beneficiary” shall be the beneficiary or
beneficiaries designated by the Participant in a writing filed with the
Committee in such form and at such time as the Committee shall
require.  If a deceased Participant fails to designate a beneficiary,
or if the Designated Beneficiary does not survive the Participant, any rights
that would have been exercisable by the Participant and any benefits
distributable to the Participant shall be exercised by or distributed to the
legal representative of the estate of the Participant.  If a deceased
Participant designates a beneficiary and the Designated Beneficiary survives the
Participant but dies before the Designated Beneficiary’s exercise of all rights
under this Agreement or before the complete distribution of benefits to the
Designated Beneficiary under this Agreement, then any rights that would have
been exercisable by the Designated Beneficiary shall be exercised by the legal
representative of the estate of the Designated Beneficiary, and any benefits
distributable to the Designated Beneficiary shall be distributed to the legal
representative of the estate of the Designated Beneficiary.

     

    8. Non-Compete and
Non-Solicitation.  During the period beginning on the Grant
Date and continuing until the two-year anniversary of the Separation from
Service, and regardless of whether the Participant’s Separation from Service
occurs before, at, or after the four-year anniversary of the Grant Date, the
Participant covenants and agrees as follows:

     

    
      	
              (a)  

            	
              He
      shall not, without the prior written consent of the Chairman of the
      Compensation Committee of Yum!, Participate (as defined below) in the
      management of any national or international quick service restaurant
      organization headquartered in the United States or doing business in the
      United States or Asia, including the following entities and each of their
      subsidiaries or successor
companies:

            

    

     

    -
McDonald’s Corporation

    - Wendy’s
Corporation

    - Burger
King Corporation

    - AFC
Enterprises, Inc.

    - Subway
Restaurants

     

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    -
Domino’s Pizza

    - Little
Caesar’s Pizza

     

    For
purposes of this paragraph (a), “Participate” shall mean: (A) holding a position
in which the Participant directly manages such a business entity; (B) holding a
position in which anyone else who directly manages such a business entity is in
the Participant’s reporting chain or chain-of-command, regardless of the number
of reporting levels between them; or (C) providing input, advice, guidance, or
suggestions in any material respect regarding the management of such a business
entity to anyone responsible therefore.

     

    
      	
              (b)  

            	
              He
      shall not directly or indirectly solicit or encourage any employee of Yum!
      or any Subsidiary who was an employee of the Company or Subsidiary as of
      the Participant’s Separation from Service, to leave the Company or
      Subsidiary or accept any position with any other
  entity.

            

    

     

    
      	
              (c)  

            	
              He
      shall not directly or indirectly contact any then-existing franchisees or
      vendors of the Company or the Subsidiaries for the purpose of soliciting
      or encouraging such franchisees or vendors to alter their relationship
      with the Company or Subsidiaries in any way that would be adverse to the
      Company or Subsidiary.

            

    

     

    
      	
              (d)  

            	
              If,
      prior to the Distribution Date, the Participant violates any of the
      provisions of this paragraph 8, he shall forfeit all YRSUs and the right
      to distribution of shares (or other amounts) in settlement of those
      YRSUs.

            

    

     

    
      	
              (e)  

            	
              The
      Participant acknowledges that the Company would be irreparably injured by
      a violation of this paragraph 8, and he agrees that the Company, in
      addition to any other remedies available to it for such breach or
      threatened breach, shall be entitled to a preliminary injunction,
      temporary restraining order, or other equivalent relief, restraining the
      Participant from any actual or threatened breach of this paragraph
      8.  If a bond is required to be posted in order for the Company
      to secure an injunction or other equitable remedy, the parties agree that
      said bond need not be more than a nominal
sum.

            

    

     

    
      	
              (f)  

            	
              The
      restrictions imposed by this paragraph 8 shall be in addition to the
      restrictions imposed by subsection 6.5 of the
  Plan.

            

    

     

    9. Administration.  The
authority to manage and control the operation and administration of this
Agreement shall be vested in the Committee, and the Committee shall have all
powers with respect to this Agreement as it has with respect to the
Plan.  Any interpretation of the Agreement by the Committee and any
decision made by it with respect to the Agreement is final and binding on all
persons.

     

    10. Plan
Governs.  Notwithstanding anything in this Agreement to the
contrary, the terms of this Agreement shall be subject to the terms of the Plan,
a copy of which may be obtained by the Participant from the office of the
Secretary of YUM!; and this Agreement is subject to all interpretations,
amendments, rules and regulations promulgated by the Committee from time to time
pursuant to the Plan.

     

     

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    11. Fractional
Shares.  In lieu of issuing a fraction of a share of Stock
resulting from an adjustment of the Award pursuant to paragraph 4.2(f) of the
Plan or otherwise, YUM! will be entitled to pay to the Participant an amount
equal to the fair market value of such fractional share.

     

    12. Not An Employment
Contract.  The Award will not confer on the Participant any
right with respect to continuance of employment or other service with YUM! or
any Subsidiary, nor will it interfere in any way with any right YUM! or any
Subsidiary would otherwise have to terminate or modify the terms of such
Participant’s employment or other service at any time.

     

    13. Notices.  Any
written notices provided for in this Agreement or the Plan shall be in writing
and shall be deemed sufficiently given if either hand delivered or if sent by
fax or overnight courier, or by postage paid first class
mail.  Notices sent by mail shall be deemed received three business
days after mailing but in no event later than the date of actual
receipt.  Notices shall be directed, if to the Participant, at the
Participant’s address indicated by the records of YUM!, or if to YUM!, at the
principal executive office of YUM!.

     

    14. No Rights As
Shareholder.  The Participant shall not have any rights of a
shareholder with respect to the shares subject to the Award, until a stock
certificate has been duly issued as provided herein.

     

    15. Amendment.  This
Agreement may be amended in accordance with the provisions of the Plan, and may
otherwise be amended by written agreement of the Participant and YUM! without
the consent of any other person.

     

    16. Rights to Future Grants;
Compliance with Law.  By entering into this Agreement, the
Participant acknowledges and agrees that the award and acceptance of YRSUs
pursuant to this Agreement does not entitle the Participant to future grants of
stock options or other awards under the Plan or any other plan.  The
Participant further agrees to seek all necessary approval under, make all
required notifications under and comply with all laws, rules and regulations
applicable to the ownership of YRSUs, including, without limitation, currency
and exchange laws, rules and regulations.

     

    17. Governing
Law.  This Agreement shall be governed by and construed in
accordance with the laws of the State of North Carolina.

     

    18. Agreement by
Participant.  As a condition of receiving this Award, the
Participant must sign and return a copy of this Agreement to Laura Warren not
later than February 1, 2008.  Failure to return a signed copy by that
deadline will cause the Award to expire, and the Participant shall have no
rights under this Award.

     

    19. Separation from
Service.  For purposes of this Agreement, the term “Separation
from Service” shall have the meaning ascribed to it in Code §409A, including the
regulations and other guidance thereunder.

     

     

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

     

    IN
WITNESS WHEREOF, the Participant has executed this Agreement, and YUM! has
caused these presents to be executed in its name and on its behalf, all as of
the Grant Date.

     

    

    Participant

     

    __________________________________________

     

    YUM!
Brands, Inc.

     

    By:
______________________________________

     

    Its:
______________________________________

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