Document:

Exhibit 10.a

 

U.S.
$1,000,000,000

 

SEVENTH
AMENDED AND RESTATED CREDIT AGREEMENT

 

(364-Day Facility)

 

Dated as of April 24, 2003

 

Among

 

UNITED
PARCEL SERVICE, INC.

 

as Borrower

 

and

 

THE INITIAL
LENDERS NAMED HEREIN

 

as Initial Lenders

 

and

 

CITIGROUP
GLOBAL MARKETS INC.

 

as Arranger

 

and

 

BANK OF
AMERICA, N.A.

 

and

 

BANK ONE,
NA

 

as Co-Documentation Agents

 

and

 

CITIBANK,
N.A.

 

as Administrative Agent and
Syndication Agent

 

 

T A B L
E  O F 
C O N T E N T S

 

	
  ARTICLE I

  	
   

  
	
   

  	
   

  	
   

  
	
  DEFINITIONS AND
  ACCOUNTING TERMS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  1.01.

  	
  Certain
  Defined Terms

  	
   

  
	
  SECTION
  1.02.

  	
  Computation
  of Time Periods

  	
   

  
	
  SECTION
  1.03.

  	
  Accounting
  Terms

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
   

  
	
   

  	
   

  	
   

  
	
  AMOUNTS AND TERMS OF
  THE ADVANCES

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  2.01.

  	
  The
  Revolving Credit Advances

  	
   

  
	
  SECTION
  2.02.

  	
  Making
  the Revolving Credit Advances

  	
   

  
	
  SECTION
  2.03.

  	
  The
  Competitive Bid Advances

  	
   

  
	
  SECTION
  2.04.

  	
  Fees

  	
   

  
	
  SECTION
  2.05.

  	
  Termination
  or Reduction of the Commitments

  	
   

  
	
  SECTION
  2.06.

  	
  Repayment
  of Revolving Credit Advances

  	
   

  
	
  SECTION
  2.07.

  	
  Interest
  on Revolving Credit Advances

  	
   

  
	
  SECTION
  2.08.

  	
  Interest
  Rate Determination

  	
   

  
	
  SECTION
  2.09.

  	
  Optional
  Conversion of Revolving Credit Advances

  	
   

  
	
  SECTION
  2.10.

  	
  Optional
  Prepayments of Advances

  	
   

  
	
  SECTION
  2.11.

  	
  Increased
  Costs

  	
   

  
	
  SECTION
  2.12.

  	
  Illegality

  	
   

  
	
  SECTION
  2.13.

  	
  Payments
  and Computations

  	
   

  
	
  SECTION
  2.14.

  	
  Taxes

  	
   

  
	
  SECTION
  2.15.

  	
  Sharing
  of Payments, Etc

  	
   

  
	
  SECTION
  2.16.

  	
  Extensions
  of Termination Date and Final Maturity Date

  	
   

  
	
  SECTION
  2.17.

  	
  Substitution
  of Lender

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
   

  
	
   

  	
   

  	
   

  
	
  CONDITIONS TO
  EFFECTIVENESS AND LENDING

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  3.01.

  	
  Conditions
  Precedent to Effectiveness of Sections 2.01 and 2.03

  	
   

  
	
  SECTION
  3.02.

  	
  Conditions Precedent to Each Revolving
  Credit Borrowing and to Extension of the Final Maturity Date

  	
   

  
	
  SECTION
  3.03.

  	
  Conditions
  Precedent to Each Competitive Bid Borrowing

  	
   

  
	
  SECTION
  3.04.

  	
  Determinations
  Under Section 3.01

  	
   

  
	
  SECTION
  3.05.

  	
  Labor
  Dispute

  	
   

  

 

 

	
  ARTICLE IV

  	
   

  
	
   

  	
   

  	
   

  
	
  REPRESENTATIONS AND
  WARRANTIES

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  4.01.

  	
  Representations
  and Warranties of the Borrower

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
   

  
	
   

  	
   

  	
   

  
	
  COVENANTS
  OF THE BORROWER

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  5.01.

  	
  Affirmative
  Covenants

  	
   

  
	
  SECTION
  5.02.

  	
  Negative
  Covenants

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI

  	
   

  
	
   

  	
   

  	
   

  
	
  EVENTS OF DEFAULT

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  6.01.

  	
  Events of
  Default

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII

  	
   

  
	
   

  	
   

  	
   

  
	
  THE AGENTS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  7.01.

  	
  Authorization
  and Action

  	
   

  
	
  SECTION
  7.02.

  	
  The
  Agents’ Reliance, Etc

  	
   

  
	
  SECTION
  7.03.

  	
  Citibank,
  B of A, Bank One and Their Affiliates

  	
   

  
	
  SECTION
  7.04.

  	
  Lender
  Credit Decision

  	
   

  
	
  SECTION
  7.05.

  	
  Indemnification

  	
   

  
	
  SECTION
  7.06.

  	
  Successor
  Agents

  	
   

  
	
  SECTION
  7.07.

  	
  Documentation
  Agent

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  	
   

  
	
   

  	
   

  	
   

  
	
  MISCELLANEOUS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  8.01.

  	
  Amendments,
  Etc

  	
   

  
	
  SECTION
  8.02.

  	
  Notices,
  Etc

  	
   

  
	
  SECTION
  8.03.

  	
  No
  Waiver; Remedies

  	
   

  
	
  SECTION
  8.04.

  	
  Costs and
  Expenses

  	
   

  
	
  SECTION
  8.05.

  	
  Right of
  Setoff

  	
   

  
	
  SECTION
  8.06.

  	
  Binding
  Effect

  	
   

  
	
  SECTION
  8.07.

  	
  Assignments,
  Designations and Participations

  	
   

  
	
  SECTION
  8.08.

  	
  Confidentiality

  	
   

  
	
  SECTION
  8.09.

  	
  Governing
  La w

  	
   

  
	
  SECTION
  8.10.

  	
  Execution
  in Counterparts

  	
   

  
	
  SECTION
  8.11.

  	
  Jurisdiction,
  Etc

  	
   

  

 

 

	
  SCHEDULE

  
	
   

  	
   

  
	
  Schedule
  I —

  	
  Commitments
  and Applicable Lending Offices

  
	
   

  	
   

  
	
   

  	
   

  
	
  EXHIBITS

  
	
   

  	
   

  
	
  Exhibit A-1 —

  	
  Form of Revolving Credit Note

  
	
  Exhibit A-2 —

  	
  Form of Competitive Bid Note

  
	
  Exhibit B-1 —

  	
  Form of Notice of Revolving Credit Borrowing

  
	
  Exhibit B-2 —

  	
  Form of Notice of Competitive Bid Borrowing

  
	
  Exhibit C —

  	
  Form of Assignment and Acceptance

  
	
  Exhibit D —

  	
  Form of Designation Agreement

  
	
  Exhibit E —

  	
  Form of Guaranty

  
	
  Exhibit F —

  	
  Form of Indemnity Agreement

  
	
  Exhibit G —

  	
  Form of Opinion of Counsel for the Borrower

  
	
  Exhibit H —

  	
  Debenture Indenture

  

 

 

SEVENTH AMENDED AND RESTATED
CREDIT AGREEMENT

 

(364-Day Facility)

 

Dated as of April 24, 2003

 

UNITED PARCEL SERVICE, INC.,
a Delaware corporation (the “Borrower”), the banks, financial
institutions and other institutional lenders (collectively, the “Initial
Lenders”) listed on the signature pages hereof, Citibank, N.A. (“Citibank”),
as administrative agent (in such capacity, the “Administrative Agent”)
and as syndication agent (in such capacity, the “Syndication Agent”) for
the Lenders (as hereinafter defined), Bank of America, N.A. (“B of A”)
and Bank One, NA (“Bank One”), as co-documentation agents (in such
capacity, the “Co-Documentation Agents”) for such Lenders, and Citigroup
Global Markets Inc., as sole arranger and book manager (in such capacity, the “Arranger”)
under the Loan Documents (as hereinafter defined), agree as follows:

 

ARTICLE I

 

DEFINITIONS
AND ACCOUNTING TERMS

 

SECTION
1.01.   Certain Defined Terms.   As used in this Agreement, the following
terms shall have the following meanings (such meanings to be equally applicable
to both the singular and plural forms of the terms defined):

 

“Administrative Agent”
has the meaning specified in the recital of parties to this Agreement.

 

“Administrative Agent’s
Account” means the account of the Administrative Agent maintained by the
Administrative Agent at Citibank with its office at 399 Park Avenue, New York,
New York 10043, Account No. 36852248, Attention: Lee Tang.

 

“Advance” means a
Revolving Credit Advance or a Competitive Bid Advance, as the context may
require.

 

“Affiliate” means, as
to any Person, any other Person that, directly or indirectly, controls, is
controlled by or is under common control with such Person; provided, however,
that Overseas Partners shall not be deemed to be an Affiliate of the Borrower.

 

“Agent” means the
Administrative Agent or the Documentation Agent, as the context may require.

 

“Applicable Fee
Percentage” means, as of any date, a percentage per annum determined by
reference to the Public Debt Rating in effect on such date as set forth below:

 

 

	
  Public Debt Rating

  S&P/Moody's

  	
   

  	
  Applicable

  FeePercentage

  	
   

  
	
  Level 1

  	
   

  	
   

  	
   

  
	
  AA- / Aa3 or above

  	
   

  	
  0.050

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Level 2

  	
   

  	
   

  	
   

  
	
  Lower than Level 1 but at least A- / A3

  	
   

  	
  0.075

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Level 3

  	
   

  	
   

  	
   

  
	
  Lower than Level 2

  	
   

  	
  0.100

  	
  %

  

 

“Applicable Lending
Office” means, with respect to each Lender, such Lender’s Domestic Lending
Office in the case of a Base Rate Advance and such Lender’s Eurodollar Lending
Office in the case of a Eurodollar Rate Advance and, in the case of a
Competitive Bid Advance, the office of such Lender notified by such Lender to
the Administrative Agent and the Borrower as its Applicable Lending Office with
respect to such Competitive Bid Advance.

 

“Applicable Margin”
means (a) as of any date up to the Termination Date, 0.00% per annum for Base
Rate Advances and 0.12% per annum for Eurodollar Rate Advances and (b) as of
any date from and after the Termination Date, a percentage per annum determined
by reference to the Public Debt Rating in effect on such date as set forth
below:

 

	
  Public Debt Rating

  S&P/Moody's

  	
   

  	
  Applicable
  Margin

  for Base
  Rate

  Advances

  	
   

  	
  Applicable
  Margin

  for
  Eurodollar Rate

  Advances

  	
   

  
	
  Level 1

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  AA- / Aa3 or above

  	
   

  	
  0.00

  	
  %

  	
  0.300

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Level 2

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lower than Level 1 but at least A- / A3

  	
   

  	
  0.00

  	
  %

  	
  0.500

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Level 3

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lower than Level 2

  	
   

  	
  0.00

  	
  %

  	
  0.725

  	
  %

  

 

provided, however, that if as of any date of
determination the aggregate principal amount of Advances outstanding exceeds
33% of the aggregate Commitments (without giving effect to any termination
thereof, with respect to any period following the Termination

 

2

 

Date), the Applicable Margin
for such date shall be the percentage per annum determined in accordance with
clause (a) or (b) above plus
0.05%.

 

“Arranger” has the
meaning specified in the recital of parties to this Agreement.

 

“Assignment and
Acceptance” means an assignment and acceptance entered into by a Lender and
an Eligible Assignee, and accepted by the Administrative Agent, in
substantially the form of Exhibit C hereto.

 

“Attributable Debt”
has the meaning specified in the Debenture Indenture.

 

“B of A” has the
meaning specified in the recital of parties to this Agreement.

 

“Bank One” has the
meaning specified in the recital of parties to this Agreement.

 

“Base Rate” means a
fluctuating interest rate per annum in effect from time to time, which rate per
annum shall at all times be equal to the highest of:

 

(a)
           the rate of interest announced
publicly by Citibank in New York, New York, from time to time, as Citibank’s
prime rate;

 

(b)
          the sum (adjusted to the nearest
1/16 of 1% or, if there is no nearest 1/16 of 1%, to the next higher 1/16 of
1%) of (i) 1/2 of 1% per annum plus
(ii) the rate obtained by dividing (A) the latest three-week moving average of
secondary market morning offering rates in the United States for three- month
certificates of deposit of major United States money market banks, such
three-week moving average (adjusted to the basis of a year of 360 days ) being
determined weekly on each Monday (or, if such day is not a Business Day, on the
next succeeding Business Day) for the three-week period ending on the previous
Friday by Citibank on the basis of such rates reported by certificate of
deposit dealers to and published by the Federal Reserve Bank of New York or, if
such publication shall be suspended or terminated, on the basis of quotations
for such rates received by Citibank from three New York certificate of deposit
dealers of recognized standing selected by Citibank, by (B) a percentage equal
to 100% minus the average of the daily percentages specified during such
three-week period by the Board of Governors of the Federal Reserve System (or
any successor) for determining the maximum reserve requirement (including, but
not limited to, any emergency, supplemental or other marginal reserve
requirement) for Citibank with respect to liabilities consisting of or
including (among other liabilities) three- month Dollar nonpersonal time
deposits in the United States, plus
(iii) the average during such three-week period of the annual assessment rates
estimated by Citibank for determining the then current annual assessment
payable by Citibank to the Federal Deposit Insurance Corporation (or any
successor) for insuring Dollar deposits of Citibank in the United States; and

 

(c)
          1/2 of 1% per annum above the
Federal Funds Rate.

 

3

 

“Base Rate Advance”
means a Revolving Credit Advance that bears interest as provided in Section
2.07(a)(i).

 

“Beneficial Ownership”
means beneficial ownership as determined in accordance with Rule 13d-3 of the
Securities and Exchange Commission under the Exchange Act, as in effect on the
date hereof.

 

“Borrower” has the
meaning specified in the recital of parties to this Agreement.

 

“Borrower’s Account”
means the account of the Borrower designated in writing by the Borrower to the
Administrative Agent from time to time.

 

“Borrowing” means a
Revolving Credit Borrowing or a Competitive Bid Borrowing, as the context may
require.

 

“Business Day” means
a day of the year (other than a Saturday or a Sunday) on which banks are not
required or authorized by law to close in New York City and, if the applicable
Business Day relates to any Eurodollar Rate Advances or LIBO Rate Advances, on
which dealings are carried on in the London interbank market.

 

“Capital Lease
Obligations” of any Person means all 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.

 

“Change of Control”
means the occurrence of any of the following:

 

(a)
           any Person or two or more
Persons acting in concert other than a Permitted Person shall have acquired
Beneficial Ownership, directly or indirectly, through a purchase, merger or
other transaction or series of transactions or otherwise, of (i) 10% or more of
the shares of common stock of the Borrower or (ii) Voting Stock of the Borrower
to which 10% or more of the total Voting Power of the Borrower is attributable;
or

 

(b)
          Permitted Persons shall not have
Beneficial Ownership of (i) 75% or more of the shares of common stock of the
Borrower or (ii) Voting Stock of the Borrower to which 75% or more of the total
Voting Power of the Borrower is attributable.

 

“Citibank” has the
meaning specified in the recital of parties to this Agreement.

 

“Co-Documentation Agents”
has the meaning specified in the recital of parties to this Agreement.

 

“Commitment” has the
meaning specified in Section 2.01.

 

4

 

“Competitive Bid Advance”
means an advance by a Lender to the Borrower as part of a Competitive Bid
Borrowing resulting from the auction bidding procedure described in Section
2.03 and refers to a Fixed Rate Advance or a LIBO Rate Advance, as the context
may require.

 

“Competitive Bid
Borrowing” means a borrowing consisting of simultaneous Competitive Bid
Advances from each of the Lenders whose offer to make one or more Competitive
Bid Advances as part of such borrowing has been accepted by the Borrower under
the auction bidding procedure described in Section 2.03.

 

“Competitive Bid Note”
means a promissory note of the Borrower payable to the order of any Lender, in
substantially the form of Exhibit A-2 hereto, evidencing the indebtedness of
the Borrower to such Lender resulting from a Competitive Bid Advance made by
such Lender.

 

“Competitive Bid
Reduction” has the meaning specified in Section 2.01.

 

“Confidential Information”
means information that the Borrower furnishes to an Agent or any Lender in a
writing designated as confidential, but does not include any such information
that is or becomes generally available to the public or that is or becomes
available to an Agent or such Lender from a source other than the Borrower
(unless such Agent or such Lender knows that such information is not generally
available to the public).

 

“Consolidated” refers
to the consolidation of accounts in accordance with GAAP.

 

“Consolidated Net
Tangible Assets” has the meaning specified in the Debenture Indenture.

 

“Consolidated Net Worth”
means the shareholders’ equity of the Borrower and its Subsidiaries, computed
in accordance with GAAP.

 

“Convert”, “Conversion”
and “Converted” each refers to a conversion of Revolving Credit Advances
of one Type into Revolving Credit Advances of the other Type pursuant to
Section 2.08 or 2.09.

 

“Debenture Indenture”
means the Indenture, dated as of December 1, 1989, between United Parcel
Service of America, Inc. and Chemical Bank pursuant to which the 8-3/8%
Debentures Due April 1, 2020 were issued, as in effect on the date of this
Agreement (without giving effect to any amendment, supplement or other
modification thereto, any repayment or covenant defeasance thereunder or any
termination thereof), a copy of which is attached as Exhibit H hereto.

 

“Debt” of any Person
means, without duplication, (a) all obligations of such Person for borrowed
money, or with respect to deposits with or advances of any kind to such Person,
(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

 

5

 

retention agreements
relating to property or assets purchased by such Person, (e) all obligations of
such Person issued or assumed as the deferred purchase price of property or
services, (f) all Debt of others secured by (or for which the holder of such
Debt has an existing right, contingent or otherwise, to be secured by) any Lien
on property or assets owned or acquired by such Person (other than Non-Recourse
Debt), (g) all Guarantees by such Person of Debt of others, (h) all Capital
Lease Obligations of such Person, (i) all obligations of such Person in respect
of Hedge Agreements; provided, however, that at any given time the term
“obligations” as used in this clause (i) shall only include the net amounts due
and payable at such time under any such agreements or arrangements and (j) all
obligations of such Person as an account party in respect of letters of credit
and bankers’ acceptances.  The Debt of
any Person shall include the Debt of any partnership in which such Person is a
general partner.

 

“Declining Lender”
has the meaning specified in Section 2.16(a).

 

“Default” means any
Event of Default or any event that would constitute an Event of Default but for
the requirement that notice be given or time elapse or both.

 

“Designated Bidder”
means (a) an Eligible Assignee or (b) a special purpose corporation that is
engaged in making, purchasing or otherwise investing in commercial loans in the
ordinary course of its business and that issues (or the parent of which issues)
commercial paper rated at least “Prime-1” (or the then equivalent grade) by
Moody’s or “A-1” (or the then equivalent grade) by S&P that, in either
case, (i) is organized under the laws of the United States or any state thereof
or the District of Columbia, (ii) shall have become a party to this Agreement
pursuant to Section 8.07(d), (e) and (f) and (iii) is not otherwise a Lender.

 

“Designation Agreement”
means a designation agreement entered into by a Lender (other than a Designated
Bidder) and a Designated Bidder, and accepted by the Administrative Agent, in
substantially the form of Exhibit D hereto.

 

“Documentation Agent”
means the Co-Documentation Agents.

 

“Dollars” and the
sign “$” mean lawful currency of the United States of America.

 

“Domestic Lending Office”
means, with respect to any Lender, the office of such Lender specified as its
“Domestic Lending Office” opposite its name on Schedule I hereto or in the
Assignment and Acceptance pursuant to which it became a Lender, or such other
office of such Lender as such Lender may from time to time specify to the
Borrower and the Administrative Agent.

 

“Effective Date” has
the meaning specified in Section 3.01.

 

“Eligible Assignee”
means (i) a Lender; (ii) an Affiliate of a Lender that is otherwise an Eligible
Assignee; (iii) a commercial bank organized under the laws of the United
States, or any state thereof, and having total assets in excess of
$1,000,000,000, calculated in accordance with the accounting principles
prescribed by the regulatory authority applicable to such bank in its
jurisdiction of organization; (iv) a commercial

 

6

 

bank organized under the
laws of any other country that is a member of the OECD, or a political
subdivision of any such country, and having total assets in excess of
$1,000,000,000, calculated in accordance with the accounting principles
prescribed by the regulatory authority applicable to such bank in its
jurisdiction of organization, so long as such bank is acting through a branch
or agency located in the country in which it is organized or another country
that is described in this clause (iv); (v) the central bank of any country that
is a member of the OECD; (vi) a finance company, insurance company or other
financial institution or fund (whether a corporation, partnership, trust or
other entity) organized under the laws of the United States, or any state
thereof, that is engaged in making, purchasing or otherwise investing in
commercial loans in the ordinary course of its business and having total assets
in excess of $1,000,000,000, calculated in accordance with the accounting principles
prescribed by the regulatory authority applicable to such entity in its
jurisdiction of organization; provided,
however, that neither the
Borrower nor an Affiliate of the Borrower shall qualify as an Eligible
Assignee.

 

“ERISA” means the
Employee Retirement Income Security Act of 1974, as amended from time to time,
and the regulations promulgated and rulings issued thereunder.

 

“ERISA Affiliate”
means any trade or business (whether or not incorporated) that is a member of a
group of which the Borrower is a member and which is treated as a single
employer under Section 414 of the Internal Revenue Code.

 

“Eurocurrency Liabilities”
has the meaning assigned to that term in Regulation D.

 

“Eurodollar Lending
Office” means, with respect to any Lender, the office of such Lender
specified as its “Eurodollar Lending Office” opposite its name on Schedule I
hereto or in the Assignment and Acceptance pursuant to which it became a Lender
(or, if no such office is specified, its Domestic Lending Office), or such other
office of such Lender as such Lender may from time to time specify to the
Borrower and the Administrative Agent.

 

“Eurodollar Rate”
means, for any Interest Period for each Eurodollar Rate Advance comprising part
of the same Revolving Credit Borrowing, an interest rate per annum equal to the
rate per annum obtained by dividing (a) the average (rounded upward to the
nearest whole multiple of 1/16 of 1% per annum, if such average is not such a
multiple) of the rate per annum at which deposits in Dollars are offered by the
principal office of each of the Reference Banks in London, England to prime
banks in the London interbank market at 11:00 A.M. (London time) two Business
Days before the first day of such Interest Period in an amount substantially
equal to such Reference Bank’s Eurodollar Rate Advance comprising part of such
Revolving Credit Borrowing to be outstanding during such Interest Period and
for a period equal to such Interest Period by (b) a percentage equal to 100%
minus the Eurodollar Rate Reserve Percentage for such Interest Period.  The Eurodollar Rate for any Interest Period
for each Eurodollar Rate Advance comprising part of the same Revolving Credit
Borrowing shall be determined by the Administrative Agent on the basis of
applicable rates furnished to and received by

 

7

 

the Administrative Agent
from the Reference Banks two Business Days before the first day of such
Interest Period, subject, however, to the provisions of Section
2.08(e).

 

“Eurodollar Rate Advance”
means a Revolving Credit Advance that bears interest as provided in Section
2.07(a)(ii).

 

“Eurodollar Rate Reserve
Percentage” means, for any Interest Period for all Eurodollar Rate Advances
or LIBO Rate Advances comprising part of the same Borrowing, the reserve
percentage applicable two Business Days before the first day of such Interest
Period under regulations issued from time to time by the Board of Governors of
the Federal Reserve System (or any successor) for determining the maximum reserve
requirement (including, without limitation, any emergency, supplemental or
other marginal reserve requirement) for a member bank of the Federal Reserve
System in New York City with respect to liabilities or assets consisting of or
including Eurocurrency Liabilities (or with respect to any other category of
liabilities that includes deposits by reference to which the interest rate on
Eurodollar Rate Advances or LIBO Rate Advances is determined) having a term
equal to such Interest Period.

 

“Event of Default”
has the meaning specified in Section 6.01.

 

“Exchange Act” means
the Securities Exchange Act of 1934, as amended from time to time, and the
regulations promulgated and rulings issued thereunder.

 

“Existing Credit
Facilities” means the credit facilities provided pursuant to (a) the Sixth
Amended and Restated Credit Agreement (364-Day Facility), dated as of April 25,
2002, as amended, supplemented or otherwise modified from time to time prior to
the date hereof, among United Parcel Service, Inc., a Delaware corporation, the
banks, financial institutions and other institutional lenders parties thereto,
Citibank, as administrative agent and syndication agent, Bank of America, N.A.
and Bank One, NA as co-documentation agents, and Salomon Smith Barney Inc., as
arranger thereunder and (b) the Third Amended and Restated Credit Agreement
(Five-year Facility) dated as of April 26, 2001, among United Parcel Service,
Inc., a Delaware corporation, the banks, financial institutions and other
institutional lenders parties thereto, Citibank, as administrative agent and
syndication agent, Salomon Smith Barney Inc. and Banc of America Securities
LLC, as co-arrangers, and Bank of America, N.A. as documentation agent
thereunder.

 

“Extending Lender”
has the meaning specified in Section 2.16(a).

 

“Federal Funds Rate”
means, for any period, a fluctuating interest rate per annum equal for each day
during such period to the weighted average of the rates on overnight federal
funds transactions with members of the Federal Reserve System arranged by
federal funds brokers, as published for such day (or, if such day is not a
Business Day, for the next preceding 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 of the quotations for such day on such transactions received
by the Administrative Agent from three federal funds brokers of recognized
standing selected by it.

 

8

 

“Final Maturity Date”
means (a) the Termination Date or (b) if extended pursuant to Section 2.16(b),
the date requested by the Borrower pursuant to Section 2.16(b), but in no event
shall such date be later than the third anniversary of the then scheduled  Termination Date.

 

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

 

“Fiscal Year” means,
with respect to any Person, the period commencing on January 1 and ending on
December 31 of any calendar year.

 

“Fixed Rate Advances”
has the meaning specified in Section 2.03(a)(i).

 

“GAAP” has the
meaning specified in Section 1.03.

 

“Governmental Authority”
means any federal, state, local or foreign court or governmental agency,
authority, instrumentality or regulatory body.

 

“Guarantee” of or by
any Person means any obligation, contingent or otherwise, of such Person
guaranteeing or having the economic effect of guaranteeing any Debt of any
other Person (the “primary obligor”) in any manner, whether directly or
indirectly, and including, without limitation, any obligation of such Person,
direct or indirect, (a) to purchase or pay (or advance or supply funds for the
purchase or payment of) such Debt or to purchase (or to advance or supply funds
for the purchase of) any security for the payment of such Debt, (b) to purchase
property, securities or services for the purpose of assuring the owner of such
debt of the payment of such Debt or (c) to maintain working capital, equity capital
or other financial statement condition or liquidity of the primary obligor so
as to enable the primary obligor to pay such Debt; provided, however,
that the term “Guarantee” shall not include endorsements for collection or
deposit, in either case in the ordinary course of business.

 

“Guarantor” means
each of UPSCO, UPSNY and UPSO.

 

“Guaranty” has the
meaning specified in Section 3.01(e)(ii).

 

“Hedge Agreements”
means interest rate swap, cap or collar agreements, interest rate future or
option contracts, currency swap agreements, currency future or option contracts
and other similar agreements.

 

“Incurrence” has the
meaning specified in Section 5.02(a).

 

“Indemnified Matters”
has the meaning specified in Section 8.04(b).

 

“Indemnified Party”
has the meaning specified in Section 8.04(b).

 

“Indemnity Agreement”
has the meaning specified in Section 3.01(e)(iii).

 

9

 

“Initial Lender” has
the meaning specified in the recital of parties to this Agreement.

 

“Interest Period”
means, for each Eurodollar Rate Advance comprising part of the same Revolving
Credit Borrowing and each LIBO Rate Advance comprising part of the same
Competitive Bid Borrowing, the period commencing on the date of such Eurodollar
Rate Advance or LIBO Rate Advance or the date of the Conversion of any Base
Rate Advance into such Eurodollar Rate Advance and ending on the last day of
the period selected by the Borrower pursuant to the provisions below and,
thereafter, each subsequent period commencing on the last day of the
immediately preceding Interest Period and ending on the last day of the period
selected by the Borrower pursuant to the provisions below.  The duration of each such Interest Period
shall be (a) in the case of Eurodollar Rate Advances, one, two, three or six
months, as the Borrower may, upon notice received by the Administrative Agent
not later than 11:00 A.M. (New York City time) on the third Business Day prior
to the first day of such Interest Period, select and (b) in the case of LIBO
Rate Advances, a minimum of seven days; provided,
however, that:

 

(i)            the Borrower may not select any Interest Period that ends
after the Final Maturity Date;

 

(ii)
          Interest Periods commencing on
the same date for Eurodollar Rate Advances comprising part of the same
Revolving Credit Borrowing or for LIBO Rate Advances comprising part of the
same Competitive Bid Borrowing shall be of the same duration;

 

(iii)          whenever the last day of any Interest Period would
otherwise occur on a day other than a Business Day, the last day of such
Interest Period shall be extended to occur on the next succeeding Business Day,
provided, however, that, if such extension would
cause the last day of such Interest Period to occur in the next following
calendar month, the last day of such Interest Period shall occur on the next
preceding Business Day; and

 

(iv)          whenever the first day of (A) any Interest Period in
respect of Eurodollar Rate Advances or (B) any Interest Period in respect of
LIBO Rate Advances the durations of which are one, two, three or six months,
occurs on a day of an initial calendar month for which there is no numerically
corresponding day in the calendar month that succeeds such initial calendar
month by the number of months equal to the number of months in such Interest
Period, such Interest Period shall end on the last Business Day of such
succeeding calendar month.

 

“Internal Revenue Code”
means the Internal Revenue Code of 1986, as amended from time to time, and the
regulations promulgated and rulings issued thereunder.

 

“Lenders” means the
Initial Lenders and each Person that shall become a party hereto pursuant to
Section 8.07(a), (b) and (c) and, except when used in reference to a

 

10

 

Revolving Credit Advance, a
Revolving Credit Borrowing, a Revolving Credit Note, a Commitment or a related
term, each Designated Bidder.

 

“LIBO Rate” means,
for any Interest Period for all LIBO Rate Advances comprising part of the same
Competitive Bid Borrowing, an interest rate per annum equal to the rate per
annum obtained by dividing (a) the average (rounded upward to the nearest whole
multiple of 1/16 of 1% per annum, if such average is not such a multiple)
of  the rate per annum at which deposits
in Dollars are offered to the principal office of each of the Reference Banks
in London, England by prime banks in the London interbank market at 11:00 A.M.
(London time) two Business Days before the first day of such Interest Period in
an amount substantially equal to the amount that would be the Reference Banks’
respective ratable shares of such Borrowing if such Borrowing were to be a
Revolving Credit Borrowing to be outstanding during such Interest Period and
for a period equal to such Interest Period by (b) a percentage equal to 100%
minus the Eurodollar Rate Reserve Percentage for such Interest Period.  The LIBO Rate for any Interest Period for
each LIBO Rate Advance comprising part of the same Competitive Bid Borrowing
shall be determined by the Administrative Agent on the basis of applicable
rates furnished to and received by the Administrative Agent from the Reference
Banks two Business Days before the first day of such Interest Period, subject, however,
to the provisions of Section 2.08.

 

“LIBO Rate Advances”
has the meaning specified in Section 2.03(a)(i).

 

“Lien” means any
lien, security interest or other charge or encumbrance of any kind, including,
without limitation, the lien or retained security title of a conditional vendor
and any easement, right of way or other encumbrance on title to real property
and, in the case of securities, any purchase option, call or similar right of a
third party with respect to such securities.

 

“Loan Documents”
means this Agreement, the Notes, the Guaranty and the Indemnity Agreement.

 

“Loan Parties” means,
collectively, the Borrower and each of the Guarantors.

 

“Margin Stock” means
all “margin stock” within the meaning of Regulation U.

 

“Material Adverse Change”
means any material adverse change in the business, assets, operations, prospects
or financial condition of the Borrower and its Subsidiaries, taken as a
whole.  For purposes hereof, it is
understood and agreed that the occurrence of a labor dispute shall not in and
of itself constitute a Material Adverse Change.

 

“Material Adverse Effect”
means (a) a material adverse effect on the business, assets, operations,
prospects or financial condition of the Borrower and its Subsidiaries, taken as
a whole, (b) material impairment of the ability of the Borrower or any Material
Subsidiary to perform any of its obligations under any Loan Document to which
it is or is to be a party or (c) material impairment of the rights of or
benefits available to the Lenders under any of the Loan Documents.  For purposes hereof, it is understood and

 

11

 

agreed that the occurrence
of a labor dispute shall not in and of itself constitute a Material Adverse
Effect.

 

“Material Subsidiary”
means any Subsidiary of the Borrower having (a) 5% of the Consolidated Net
Tangible Assets or (b) 5% of the total revenues appearing on the most recently
prepared Consolidated income statements of the Borrower and its Subsidiaries as
of the end of the immediately preceding fiscal quarter of the Borrower.

 

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

 

“Non-Recourse Debt”
means, with respect to any Person, Debt for which such Person neither (a)
provides credit support nor (b) is directly or indirectly liable.

 

“Note” means a
Revolving Credit Note or a Competitive Bid Note, as the context may require.

 

“Notice of Competitive
Bid Borrowing” has the meaning specified in Section 2.03(a).

 

“Notice of Revolving
Credit Borrowing” has the meaning specified in Section 2.02(a).

 

“OECD” means the
Organization for Economic Cooperation and Development and any successor.

 

“Overseas Partners”
means Overseas Partners Ltd., a Bermuda corporation.

 

“PBGC” means the
Pension Benefit Guaranty Corporation and any successor.

 

“Permitted Person”
means the UPS Managers Stock Trust, the UPS Stock Trust, the Annie E. Casey
Foundation, any retiree or present or former employee of the Borrower or any of
its Subsidiaries or their respective present or former spouse, relatives (by
consanguinity or law), estate or heirs (or their respective spouse’s estate or
heirs) or any other Person that has Beneficial Ownership of the common stock of
the Borrower on the date of this Agreement, or any Person that is created for
the benefit of any of the foregoing after the date of this Agreement.

 

“Person” means an
individual, partnership, corporation (including a business trust), joint stock
company, trust, unincorporated association, joint venture, limited liability
company or other entity, or a government or any political subdivision or agency
thereof.

 

“Plan” means any pension
plan subject to the provisions of Title IV of ERISA or Section 412 of the
Internal Re venue Code that is maintained for employees of the Borrower or any
ERISA Affiliate.

 

“Principal Property”
has the meaning specified in the Debenture Indenture.

 

12

 

“Public Debt Rating”
means, as of any date, the higher rating that has been most recently announced
by either S&P or Moody’s, as the case may be, for any class of non-credit
enhanced long-term senior unsecured debt issued by the Borrower.  For purposes of the foregoing, (a) if only
one of S&P and Moody’s shall have in effect a Public Debt Rating, the
Applicable Margin and the Applicable Fee Percentage shall be determined by
reference to the available rating; (b) if neither S&P nor Moody’s shall
have in effect a Public Debt Rating, the Applicable Margin and the Applicable
Fee Percentage will be set in accordance with Level 3 under the definition of
“Applicable Margin” or “Applicable Fee Percentage”, as the case may be; (c) if
the ratings established by S&P and Moody’s shall fall within different
levels, the Applicable Margin and the Applicable Fee Percentage shall be based
upon the higher rating; provided,
however, that if the lower of
such ratings is more than one level below the level of the higher of such
ratings, then the Applicable Margin and the Applicable Fee Percentage shall be
based upon the level immediately above the level of the lower of such ratings;
(d) if any rating established by S&P or Moody’s shall be changed, such
change shall be effective as of the date on which such change is first
announced publicly by the rating agency making such change; and (e) if S&P
or Moody’s shall change the basis on which ratings are established, each
reference to the Public Debt Rating announced by S&P or Moody’s, as the
case may be, shall refer to the then equivalent rating by S&P or Moody’s,
as the case may be; provided, however, that if prior thereto the
Borrower has selected, and the Required Lenders have approved, a rating agency
to replace S&P or Moody’s, as the case may be, such selection shall be
deemed to be S&P or Moody’s, as the case may be, for all purposes hereof.

 

“Reference Banks”
means Citibank, B of A and Bank One, or if any such Lender assigns all of its
Commitment, the Advances owing to it and the Note or Notes held by it pursuant
to Section 8.07(a), such other Lender as may be designated by the Required
Lenders and approved by the Borrower (such approval not to be unreasonably
withheld).

 

“Register” has the
meaning specified in Section 8.07(g).

 

“Regulation A”, “Regulation
D”, “Regulation T”, “Regulation U” or “Regulation X”
means Regulation A, Regulation D, Regulation T, Regulation U or Regulation X,
respectively, of the Board of Governors of the Federal Reserve System, in each
case as in effect from time to time, and all official rulings and
interpretations thereunder or thereof, respectively.

 

“Replacement Lender”
has the meaning specified in Section 2.16(a).

 

“Reportable Event”
means any reportable event as defined in Section 4043(b) of ERISA or the
regulations issued thereunder with respect to a Plan (other than a Plan
maintained by an ERISA Affiliate that is considered an ERISA Affiliate only
pursuant to subsection (m) or (o) of Section 414 of the Internal Revenue Code).

 

“Required Lenders”
means at any time Lenders owed greater than 50% of the then aggregate unpaid
principal amount of the Revolving Credit Advances owing to

 

13

 

Lenders, or, if no such
principal amount is then outstanding, Lenders having greater than 50% of the
Commitments.

 

“Restricted Subsidiary”
has the meaning specified in the Debenture Indenture.

 

“Revolving Credit Advance”
means an advance by a Lender to the Borrower as part of a Revolving Credit
Borrowing and refers to a Base Rate Advance or a Eurodollar Rate Advance (each
of which shall be a “Type” of  Revolving
Credit Advance), as the context may require.

 

“Revolving Credit
Borrowing” means a borrowing consisting of simultaneous Revolving Credit
Advances of the same Type made by each of the Lenders pursuant to Section 2.01.

 

“Revolving Credit Note”
means a promissory note of the Borrower payable to the order of any Lender, in
substantially the form of Exhibit A-1 hereto, evidencing the aggregate
indebtedness of the Borrower to such Lender resulting from the Revolving Credit
Advances made by such Lender.

 

“Sale and Leaseback
Transaction” has the meaning specified in the Debenture Indenture.

 

“Secured Indebtedness”
has the meaning specified in the Debenture Indenture.

 

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

 

“Subsidiary” of any
Person means any corporation, partnership, joint venture, limited liability
company, trust or estate of which (or in which) more than 50% of (a) the Voting
Power to elect a majority of the board of directors of such corporation
(irrespective of whether at the time capital stock of any other class or
classes of such corporation shall or might have voting power upon the
occurrence of any contingency), (b) the interest in the capital or profits of
such partnership or joint venture or (c) the beneficial interest in such trust
or estate is at the time owned or controlled by such Person, by such Person and
one or more of its other Subsidiaries or by one or more of such Person’s other
Subsidiaries; provided, however, that Overseas Partners shall not
be deemed to be a Subsidiary of the Borrower.

 

“Termination Date”
means the earlier of (a) April 22, 2004 or, if extended pursuant to Section
2.16(a), the date that is 364 days after the Termination Date then in effect,
and (b) the date of termination in whole of the Commitments pursuant to Section
2.05 or 6.01.

 

“Type” has the
meaning specified in the definition of “Revolving Credit Advance”.

 

“UPSCO” means United
Parcel Service Co., a Delaware corporation and a wholly owned Subsidiary of the
Borrower.

 

 

14

 

“UPSNY” means United
Parcel Service, Inc., a New York corporation and a wholly owned Subsidiary of
the Borrower.

 

“UPSO” means United
Parcel Service, Inc., an Ohio corporation and a wholly owned Subsidiary of the
Borrower.

 

“Voting Power” means,
with respect to any Voting Stock of any Person at any time, the number of votes
entitled to vote generally in the election of directors of such Person that are
attributable to such Voting Stock at such time divided by the number of votes
entitled to vote generally in the election of directors of such Person that are
attributable to all shares of capital stock of such Person (including such
Voting Stock) at such time.

 

“Voting Stock” means
capital stock issued by a corporation, or equivalent interests in any other
Person, the holders of which are ordinarily, in the absence of contingencies,
entitled to vote for the election of directors (or persons performing similar
functions) of such Person, even if the right so to vote has been suspended by
the happening of such a contingency.

 

SECTION
1.02.   Computation of Time
Periods.   In this Agreement in the
computation of periods of time from a specified date to a later specified date,
the word “from” means “from and including” and the words “to” and “until” each
means “to but excluding”.

 

SECTION
1.03.   Accounting Terms.   All accounting terms not specifically
defined herein shall be construed in accordance with generally accepted
accounting principles consistent with those applied in the preparation of the
financial statements referred to in Section 4.01(e) (“GAAP”).

 

ARTICLE II

 

AMOUNTS AND TERMS OF THE
ADVANCES

 

SECTION
2.01.   The Revolving Credit
Advances.   Each Lender severally
agrees, on the terms and conditions hereinafter set forth, to make Revolving
Credit Advances to the Borrower from time to time on any Business Day during
the period from the Effective Date until the Termination Date in an aggregate
amount not to exceed at any time outstanding the amount set forth opposite such
Lender’s name on Schedule I hereto or, if such Lender has entered into any
Assignment and Acceptance, set forth for such Lender in the Register maintained
by the Administrative Agent pursuant to Section 8.07(c), as such amount may be
reduced pursuant to Section 2.05 (such Lender’s “Commitment”), provided that the aggregate amount of the
Commitments of the Lenders shall be deemed used from time to time to the extent
of the aggregate amount of the Competitive Bid Advances then outstanding and
such deemed use of the aggregate amount of the Commitments shall be allocated
among the Lenders ratably according to their respective Commitments (such
deemed use of the aggregate amount of the Commitments being a “Competitive
Bid Reduction”).  Each Revolving
Credit Borrowing shall be in an aggregate amount of $25,000,000 or an integral
multiple of $1,000,000 in excess thereof (or, if less, an amount equal to the
remaining aggregate amount of unused Commitments or equal to the

 

15

 

amount by which the aggregate amount of a proposed Competitive Bid
Borrowing requested by the Borrower exceeds the aggregate amount of Competitive
Bid Advances offered to be made by the Lenders and accepted by the Borrower in
respect of such Competitive Bid Borrowing, if such Competitive Bid Borrowing is
made on the same date as such Revolving Credit Borrowing) and shall consist of
Revolving Credit Advances of the same Type made on the same day by the Lenders
ratably according to their respective Commitments.  Within the limits of each Lender’s Commitment, the Borrower may
borrow under this Section 2.01, prepay pursuant to Section 2.10 and, unless the
Borrower has delivered a request pursuant to the provisions of Section 2.16(b),
reborrow under this Section 2.01.

 

SECTION
2.02.   Making the Revolving
Credit Advances.   (a)  Each Revolving Credit Borrowing shall be
made on notice, given not later than 11:00 A.M. (New York City time) on the
third Business Day prior to the date of the proposed Revolving Credit Borrowing
in the case of a Revolving Credit Borrowing consisting of Eurodollar Rate
Advances, or on the date of the proposed Revolving Credit Borrowing in the case
of a Revolving Credit Borrowing consisting of Base Rate Advances, by the
Borrower to the Administrative Agent, which shall give to each Lender prompt
notice thereof by telecopier or telex. 
Each such notice of a Revolving Credit Borrowing (a “Notice of
Revolving Credit Borrowing”) shall be by telephone, telecopier or telex,
confirmed promptly in writing, in substantially the form of Exhibit B-1 hereto,
specifying therein the requested (i) date of such Revolving Credit Borrowing,
(ii) Type of Advances comprising such Revolving Credit Borrowing, (iii)
aggregate amount of such Revolving Credit Borrowing, and (iv) in the case of a
Revolving Credit Borrowing consisting of Eurodollar Rate Advances, initial
Interest Period for each such Revolving Credit Advance.  Each Lender shall, before 11:00 A.M. (New
York City time) on the date of such Revolving Credit Borrowing, make available
for the account of its Applicable Lending Office to the Administrative Agent at
the Administrative Agent’s Account, in same day funds, such Lender’s ratable
portion of such Revolving Credit Borrowing. 
After the Administrative Agent’s receipt of such funds and upon
fulfillment of the applicable conditions set forth in Article III, the
Administrative Agent will make such funds available to the Borrower in same day
funds at the Borrower’s Account.

 

(b)           Anything in subsection (a) of this Section 2.02 to the
contrary notwithstanding, the Borrower may not select Eurodollar Rate Advances
for any Revolving Credit Borrowing if the aggregate amount of such Revolving
Credit Borrowing is less than $25,000,000 or if the obligation of the Lenders
to make Eurodollar Rate Advances shall then be suspended pursuant to Section
2.08 or 2.12.

 

(c)           Each Notice of Revolving Credit Borrowing shall be
irrevocable and binding on the Borrower. 
In the case of any Revolving Credit Borrowing that the related Notice of
Revolving Credit Borrowing specifies is to be comprised of Eurodollar Rate
Advances, the Borrower shall indemnify each Lender against any loss, cost or
expense incurred by such Lender as a result of any failure by the Borrower to
fulfill on or before the date specified in such Notice of Revolving Credit
Borrowing for such Revolving Credit Borrowing the applicable conditions set
forth in Article III, including, without limitation, any loss (including loss
of anticipated profits), cost or expense incurred by reason of the liquidation
or reemployment of deposits or other funds acquired by such Lender to fund the
Revolving Credit Advance to be made by such

 

16

 

Lender as part of such Revolving Credit Borrowing when such Revolving
Credit Advance, as a result of such failure, is not made on such date.

 

(d)           Unless the Administrative Agent shall have received notice
from a Lender prior to the date of any Revolving Credit Borrowing that such
Lender will not make available to the Administrative Agent such Lender’s
ratable portion of such Revolving Credit Borrowing, the Administrative Agent
may assume that such Lender has made such portion available to the
Administrative Agent on the date of such Revolving Credit Borrowing in
accordance with subsection (a) of this Section 2.02 and the Administrative Agent
may, in reliance upon such assumption, make available to the Borrower on such
date a corresponding amount.  If and to
the extent that such Lender shall not have so made such ratable portion
available to the Administrative Agent, such Lender and the Borrower severally
agree to repay to the Administrative Agent forthwith on demand such
corresponding amount together with interest thereon, for each day from the date
such amount is made available to the Borrower until the date such amount is
repaid to the Administrative Agent, at (i) in the case of the Borrower, the
interest rate applicable at the time to Revolving Credit Advances comprising
such Revolving Credit Borrowing and (ii) in the case of such Lender, the
Federal Funds Rate.  If such Lender
shall repay to the Administrative Agent such corresponding amount, such amount
so repaid shall constitute such Lender’s Revolving Credit Advance as part of
such Revolving Credit Borrowing for purposes of this Agreement.

 

(e)           The failure of any Lender to make the Revolving Credit
Advance to be made by it as part of any Revolving Credit Borrowing shall not
relieve any other Lender of its obligation, if any, hereunder to make its
Revolving Credit Advance on the date of such Revolving Credit Borrowing, but no
Lender shall be responsible for the failure of any other Lender to make the
Revolving Credit Advance to be made by such other Lender on the date of any
Revolving Credit Borrowing.

 

SECTION
2.03.   The Competitive Bid
Advances.   (a)  Each Lender severally agrees that the
Borrower may make Competitive Bid Borrowings under this Section 2.03 from time
to time on any Business Day during the period from the date hereof until the
date occurring prior to the then scheduled Termination Date in the manner set
forth below; provided that,
following the making of each Competitive Bid Advance, the aggregate amount of
the Advances then outstanding shall not exceed the aggregate amount of the
Commitments of the Lenders (computed without regard to any Competitive Bid
Reduction).

 

(i)
           The Borrower may request a
Competitive Bid Borrowing under this Section 2.03 by delivering to the
Administrative Agent, by telecopier or telex, confirmed promptly in writing, a
notice of a Competitive Bid Borrowing (a “Notice of Competitive Bid
Borrowing”), in substantially the form of Exhibit B-2 hereto, specifying
therein (A) the date of such proposed Competitive Bid Borrowing, (B) the
aggregate amount of such proposed Competitive Bid Borrowing, (C) in the case of
a Competitive Bid Borrowing consisting of LIBO Rate Advances, the Interest
Period for such LIBO Rate Advances, (D) the maturity date for repayment of each
Competitive Bid Advance to be made as part of such Competitive Bid Borrowing
(which maturity date may not be earlier than the date occurring thirty days
after the date of such Competitive Bid Borrowing or later than the Termination
Date and, in the case of any LIBO Rate Advance to be made as part of such

 

17

 

Competitive Bid Borrowing,
shall be the last day of the interest period for such LIBO Rate Advance), (E)
the interest payment date or dates relating thereto, and (F) any other terms to
be applicable to such Competitive Bid Borrowing, not later than 10:00 A.M. (New
York City time) (1) at least one Business Day prior to the date of the proposed
Competitive Bid Borrowing, if the Borrower shall specify in the Notice of
Competitive Bid Borrowing that the rates of interest to be offered by the
Lenders shall be fixed rates per annum (the Advances comprising any such
Competitive Bid Borrowing being referred to herein as “Fixed Rate Advances”)
and (2) at least four Business Days prior to the date of the proposed
Competitive Bid Borrowing, if the Borrower shall instead specify in the Notice
of Competitive Bid Borrowing that the rates of interest to be offered by the
Lenders are to be based on the LIBO Rate (the Advances comprising such
Competitive Bid Borrowing being referred to herein as “LIBO Rate Advances”).  The Administrative Agent shall in turn promptly
notify each Lender of each request for a Competitive Bid Borrowing received by
it from the Borrower by sending such Lender a copy of the related Notice of
Competitive Bid Borrowing.

 

(ii)
          Each Lender may, if in its sole
discretion it elects to do so, irrevocably offer to make one or more
Competitive Bid Advances to the Borrower as part of such proposed Competitive
Bid Borrowing at a rate or rates of interest (including default rates not to
exceed 1% per annum above the rate per annum required to be paid on such
Competitive Bid Advance) specified by such Lender in its sole discretion, by
notifying the Administrative Agent (which shall give prompt notice thereof to
the Borrower), before 10:00 A.M. (New York City time) on the date of such
proposed Competitive Bid Borrowing, in the case of a Competitive Bid Borrowing
consisting of Fixed Rate Advances and three Business Days before the date of
such proposed Competitive Bid Borrowing, in the case of a Competitive Bid
Borrowing consisting of LIBO Rate Advances, of the minimum amount and maximum
amount of each Competitive Bid Advance which such Lender would be willing to
make as part of such proposed Competitive Bid Borrowing (which amounts may,
subject to the proviso to the first sentence of this Section 2.03(a), exceed
such Lender’s Commitment, if any), the rate or rates of interest therefor and
such Lender’s Applicable Lending Office with respect to such Competitive Bid
Advance; provided that if the
Administrative Agent in its capacity as a Lender shall, in its sole discretion,
elect to make any such offer, it shall notify the Borrower of such offer before
9:00 A.M. (New York City time) on the date on which notice of such election is
to be given to the Administrative Agent by the other Lenders.  If any Lender shall elect not to make such
an offer, such Lender shall so notify the Administrative Agent, before 10:00
A.M. (New York City time) on the date on which notice of such election is to be
given to the Administrative Agent by the other Lenders, and such Lender shall
not be obligated to, and shall not, make any Competitive Bid Advance as part of
such Competitive Bid Borrowing; provided
that the failure by any Lender to give such notice shall not cause such Lender
to be obligated to make any Competitive Bid Advance as part of such proposed
Competitive Bid Borrowing.

 

(iii)
The Borrower shall, in turn, before 11:00 A.M. (New York City time) on the date
of such proposed Competitive Bid Borrowing, in the case of a Competitive Bid
Borrowing consisting of Fixed Rate Advances and before 11:30 A.M. (New York
City

 

18

 

time) three Business Days
before the date of such proposed Competitive Bid Borrowing, in the case of a
Competitive Bid Borrowing consisting of LIBO Rate Advances, either:

 

(A)          cancel such Competitive Bid Borrowing by giving the
Administrative Agent notice to that effect, or

 

(B)           accept one or more of the offers made by any Lender or
Lenders pursuant to subsection (a)(ii) of this Section 2.03, in its sole
discretion, by giving notice to the Administrative Agent of the amount of each
Competitive Bid Advance (which amount shall be equal to or greater than the
minimum amount, and equal to or less than the maximum amount, notified to the
Borrower by the Administrative Agent on behalf of such Lender for such
Competitive Bid Advance pursuant to subsection (a)(ii) of this Section 2.03) to
be made by each Lender as part of such Competitive Bid Borrowing, and reject
any remaining offers made by Lenders pursuant to subsection (a)(ii) of this
Section 2.03 by giving the Administrative Agent notice to that effect.  The Borrower shall accept the offers made by
any Lender or Lenders to make Competitive Bid Advances in order of the lowest
to the highest rates of interest offered by such Lenders; provided, however,
that if the Borrower has a reasonable basis to believe that acceptance of the
offer of any such Lender has a reasonable likelihood of subjecting the Borrower
to additional costs pursuant to the provisions of Section 2.11, 2.12 or 2.14,
the Borrower may reject the offer of such Lender and accept the offer of the
Lender offering the next lowest rate of interest.  Subject to the next preceding sentence, if two or more Lenders
have offered the same interest rate, the amount to be borrowed at such interest
rate will be allocated among such Lenders in proportion to the amount that each
such Lender offered at such interest rate.

 

(iv)          If the Borrower notifies the
Administrative Agent that such Competitive Bid Borrowing is cancelled pursuant
to subsection (a)(iii)(A) of this Section 2.03, the Administrative Agent s hall
give prompt notice thereof to the Lenders and such Competitive Bid Borrowing
shall not be made.

 

(v)
          If the Borrower accepts one or
more of the offers made by any Lender or Lenders pursuant to subsection
(a)(iii)(B) of this Section 2.03, the Administrative Agent shall in turn
promptly notify (A) each Lender that has made an offer as described in
subsection (a)(ii) of this Section 2.03, of the date and aggregate amount of
such Competitive Bid Borrowing and whether or not any offer or offers made by
such Lender pursuant to subsection (a)(ii) of this Section 2.03 have been
accepted by the Borrower, (B) each Lender that is to make a Competitive Bid
Advance as part of such Competitive Bid Borrowing, of the amount of each
Competitive Bid Advance to be made by such Lender as part of such Competitive
Bid Borrowing, and (C) each Lender that is to make a Competitive Bid Advance as
part of such Competitive Bid Borrowing, upon receipt, that the Administrative
Agent has received forms of documents appearing to fulfill the applicable
conditions set forth in Article III. 
Each Lender that is to make a Competitive Bid Advance as part of such
Competitive Bid Borrowing shall, before 12:00 NOON (New York City time) on the
date of such Competitive Bid Borrowing specified in the

 

19

 

notice received from the
Administrative Agent pursuant to clause (A) of the next preceding sentence or
at such later date when such Lender shall have received notice from the
Administrative Agent pursuant to clause (C) of the next preceding sentence,
make available for the account of its Applicable Lending Office to the
Administrative Agent at the Administrative Agent’s Account, in same day funds,
such Lender’s portion of such Competitive Bid Borrowing.  Upon fulfillment of the applicable
conditions set forth in Article III and after receipt by the Administrative
Agent of such funds, the Administrative Agent will make such funds available to
the Borrower in same day funds at the Borrower’s Account.  Promptly after each Competitive Bid
Borrowing the Administrative Agent will notify each Lender of the amount of the
Competitive Bid Borrowing, the consequent Competitive Bid Reduction and the
dates upon which such Competitive Bid Reduction commenced and will terminate.

 

(b)           Each Competitive Bid Borrowing shall be in an aggregate
amount of $25,000,000 or an integral multiple of $1,000,000 in excess thereof
and, following the making of each Competitive Bid Borrowing, the Borrower shall
be in compliance with the limitation set forth in the proviso to the first
sentence of subsection (a) of this Section 2.03.

 

(c)           Within the limits and on the conditions set forth in this
Section 2.03, the Borrower may from time to time borrow under this Section
2.03, repay pursuant to subsection (d) of this Section 2.03, and, unless the
Borrower has delivered a request pursuant to the provisions of Section 2.16(b),
reborrow under this Section 2.03, provided
that a Competitive Bid Borrowing shall not be made within three Business Days
of the date of any other Competitive Bid Borrowing.

 

(d)           The Borrower shall repay to the Administrative Agent for
the account of each Lender that has made a Competitive Bid Advance, on the
maturity date of each Competitive Bid Advance (such maturity date being that
specified by the Borrower for repayment of such Competitive Bid Advance in the
related Notice of Competitive Bid Borrowing delivered pursuant to subsection
(a)(i) of this Section 2.03 and provided in the Competitive Bid Note evidencing
such Competitive Bid Advance), the then unpaid principal amount of such
Competitive Bid Advance.  The Borrower
may prepay any principal amount of any Competitive Bid Advance, subject to the
provisions of Sections 2.10 and 8.04(c), with the consent of the respective
Lender of such Competitive Bid Advance.

 

(e)           The Borrower shall pay interest on the unpaid principal
amount of each Competitive Bid Advance from the date of such Competitive Bid
Advance to the date the principal amount of such Competitive Bid Advance is
repaid in full, at the rate of interest for such Competitive Bid Advance
specified by the Lender making such Competitive Bid Advance in its notice with
respect thereto delivered pursuant to subsection (a)(ii) of this Section 2.03,
payable on the interest payment date or dates specified by the Borrower for
such Competitive Bid Advance in the related Notice of Competitive Bid Borrowing
delivered pursuant to subsection (a)(i) of this Section 2.03, as provided in
the Competitive Bid Note evidencing such Competitive Bid Advance.  Upon the occurrence and during the
continuance of an Event of Default, the Borrower shall pay interest on the
amount of unpaid principal of and interest on each Competitive Bid Advance
owing to a Lender, payable in arrears on the date or dates interest is

 

20

 

payable thereon, at a rate per annum equal to the default rate
specified by the appropriate Lender in respect of such Competitive Bid Advance.

 

(f)            The indebtedness of the Borrower resulting from each
Competitive Bid Advance made to the Borrower as part of a Competitive Bid
Borrowing shall be evidenced by a separate Competitive Bid Note of the Borrower
payable to the order of the Lender making such Competitive Bid Advance.  Upon repayment in full of each Competitive
Bid Advance in accordance with the provisions of subsection (d) of this Section
2.03 and the terms of the Competitive Bid Note evidencing such Competitive Bid
Advance, the Lender holding such Competitive Bid Note shall cancel such Note
and return such Note to the Borrower.

 

SECTION
2.04.   Fees.   (a) 
Facility Fee.  The
Borrower agrees to pay to the Administrative Agent for the account of each
Lender (other than the Designated Bidders) a facility fee (i) from the
Effective Date in the case of each Initial Lender and from the effective date
specified in the Assignment and Acceptance pursuant to which it became a Lender
in the case of each other Lender until the Termination Date then in effect at a
rate per annum equal to 0.03%, on the aggregate amount of such Lender’s
Commitment, or (ii) if the Borrower has extended the Final Maturity Date
pursuant to Section 2.16(b), from the Termination Date then in effect until
such Final Maturity Date at a rate per annum equal to the Applicable Fee
Percentage in effect from time to time, on the aggregate amount of such
Lender’s outstanding Advances, in each case payable in arrears quarterly on the
last day of each March, June, September and December, commencing June 30, 2003,
and on the Termination Date or such Final Maturity Date.

 

(b)           Agents’ Fees.  
The Borrower shall pay to each Agent for its own account such fees as
may from time to time be agreed between the Borrower and such Agent.

 

SECTION
2.05.   Termination or Reduction
of the Commitments.   The Borrower
shall have the right, upon at least three Business Days’ notice to the
Administrative Agent, to terminate in whole or reduce ratably in part the
unused portions of the respective Commitments of the Lenders, provided that each partial reduction shall
be in the aggregate amount of $25,000,000 or an integral multiple of $1,000,000
in excess thereof and provided  further that the aggregate amount of the
Commitments of the Lenders shall not be reduced to an amount that is less than
the aggregate principal amount of the Competitive Bid Advances then
outstanding.

 

SECTION
2.06.   Repayment of Revolving
Credit Advances.   The Borrower
shall repay to the Administrative Agent for the ratable account of the Lenders
on the Final Maturity Date the aggregate principal amount of the Revolving
Credit Advances then outstanding.

 

SECTION
2.07.   Interest on Revolving
Credit Advances.   (a)  Scheduled Interest.  The Borrower shall pay interest on the
unpaid principal amount of each Revolving Credit Advance owing to each Lender
from the date of such Revolving Credit Advance until such principal amount
shall be paid in full, at the following rates per annum:

 

(i)
           Base Rate Advances.   During such periods as such Revolving
Credit Advance is a Base Rate Advance, a rate per annum equal at all times to
the sum of (A) the Base Rate in effect from time to time plus (B) the Applicable Margin in effect
from

 

21

 

time to time, payable in
arrears quarterly on the last day of each March, June, September and December
during such periods and on the date such Base Rate Advance shall be Converted
or paid in full.

 

(ii)
          Eurodollar Rate Advances.   During such periods as such Revolving
Credit Advance is a Eurodollar Rate Advance, a rate per annum equal at all
times during each Interest Period for such Revolving Credit Advance to the sum
of (A) the Eurodollar Rate for such Interest Period for such Revolving Credit
Advance plus (B) the Applicable
Margin in effect from time to time, payable in arrears on the last day of such
Interest Period and, if such Interest Period has a duration of more than three
months, on each day that occurs during such Interest Period every three months
from the first day of such Interest Period and on the date such Eurodollar Rate
Advance shall be Converted or paid in full.

 

(b)           Default Interest.  
Upon the occurrence and during the continuance of an Event of Default,
the Borrower shall pay interest on (i) the unpaid principal amount of each
Revolving Credit Advance owing to each Lender, payable in arrears on the dates
referred to in subsection (a)(i) or (a)(ii) of this Section 2.07, at a rate per
annum equal at all times to 1% per annum above the rate per annum required to
be paid on such Revolving Credit Advance pursuant to subsection (a)(i) or
(a)(ii) of this Section 2.07 and (ii) the amount of any interest, fee or other
amount payable hereunder that is not paid when due, from the date such amount
shall be due until such amount shall be paid in full, payable in arrears on the
date such amount shall be paid in full and on demand, at a rate per annum equal
at all times to 1% per annum above the rate per annum required to be paid on
Base Rate Advances pursuant to subsection (a)(i) of this Section 2.07.

 

SECTION
2.08.   Interest Rate
Determination.   (a)  Each Reference Bank agrees to furnish to the
Administrative Agent timely information for the purpose of determining each
Eurodollar Rate and each LIBO Rate.  If
any one or more of the Reference Banks shall not furnish such timely
information to the Administrative Agent for the purpose of determining any such
interest rate, the Administrative Agent shall determine such interest rate on
the basis of timely information furnished by the remaining Reference Banks,
subject to the provisions of subsection (e) of this Section 2.08.  The Administrative Agent shall give prompt
notice to the Borrower and the Lenders of the applicable interest rate
determined by the Administrative Agent for purposes of Section 2.07(a)(i) or
2.07(a)(ii), and the rate, if any, furnished by each Reference Bank for the
purpose of determining the interest rate under Section 2.07(a)(ii).

 

(b)           If the Borrower shall fail to select the duration of any
Interest Period for any Eurodollar Rate Advances in accordance with the
provisions contained in the definition of “Interest Period” in Section 1.01,
the Administrative Agent will forthwith so notify the Borrower and the Lenders
and such Advances will automatically, on the last day of the then existing
Interest Period therefor, Convert into Base Rate Advances.

 

(c)           On the date on which the aggregate unpaid principal amount
of Eurodollar Rate Advances comprising any Revolving Credit Borrowing shall be
reduced, by payment or prepayment or otherwise, to less than $25,000,000, such
Advances shall automatically Convert into Base Rate Advances.

 

22

 

(d)           Upon the occurrence and during the continuance of any Event
of Default, (i) each Eurodollar Rate Advance will automatically, on the last
day of the then existing Interest Period therefor, Convert into a Base Rate
Advance and (ii) the obligations of the Lenders to make, or to Convert Advances
into, Eurodollar Rate Advances shall be suspended.

 

(e)           If fewer than two Reference Banks furnish timely
information to the Administrative Agent for determining the Eurodollar Rate or
LIBO Rate for any Eurodollar Rate Advances or LIBO Rate Advances, as the case
may be,

 

(i)
           the Administrative Agent shall
forthwith notify the Borrower and the Lenders that the interest rate cannot be
determined for such Eurodollar Rate Advances or LIBO Rate Advances, as the case
may be,

 

(ii)
          with respect to Eurodollar Rate
Advances, each such Advance will automatically, on the last day of the then
existing Interest Period therefor, Convert into a Base Rate Advance (or if such
Advance is then a Base Rate Advance, will continue as a Base Rate Advance), and

 

(iii) the obligations of the
Lenders to make Eurodollar Rate Advances or LIBO Rate Advances, or to Convert
Revolving Credit Advances into Eurodollar Rate Advances, shall be suspended
until the Administrative Agent shall notify the Borrower and the Lenders that
the circumstances causing such suspension no longer exist.

 

SECTION
2.09.   Optional Conversion of
Revolving Credit Advances.   The
Borrower may on any Business Day, upon notice given to the Administrative Agent
not later than 11:00 A.M. (New York City time) on the third Business Day prior
to the date of the proposed Conversion and subject to the provisions of
Sections 2.08, 2.12 and 8.04(c), Convert Revolving Credit Advances of one Type
comprising the same Borrowing into Revolving Credit Advances of the other Type;
provided, however, that any Conversion of Base Rate
Advances into Eurodollar Rate Advances shall be in an amount not less than the
minimum amount specified in Section 2.02(b). 
Each such notice of a Conversion shall, within the restrictions
specified above, specify (a) the date of such Conversion, (b) the Revolving
Credit Advances to be Converted, and (c) if such Conversion is into Eurodollar
Rate Advances, the duration of the initial Interest Period for each such
Advance.  Each notice of Conversion
shall be irrevocable and binding on the Borrower.

 

SECTION
2.10.   Optional Prepayments of
Advances.   The Borrower may, upon
at least two Business Days’ notice in the case of Eurodollar Rate Advances and
notice on the same Business Day in the case of Base Rate Advances to the
Administrative Agent stating the proposed date and aggregate principal amount
of the prepayment, and if such notice is given the Borrower shall, prepay the
outstanding principal amount of such Advances comprising part of the same
Borrowing in whole or ratably in part, together with accrued interest to the
date of such prepayment on the principal amount prepaid; provided, however,
that (a) each partial prepayment shall be in an aggregate principal amount of
$10,000,000 or an integral multiple of $1,000,000 in excess thereof and (b) in
the event of any such prepayment of a Eurodollar Rate Advance, the Borrower
shall be obligated to reimburse the Lenders in respect thereof pursuant to
Section 8.04(c).

 

23

 

SECTION
2.11.   Increased Costs.   (a) 
If, due to either (i) the introduction of or any change (other than any
change by way of imposition or increase of reserve requirements included in the
Eurodollar Rate Reserve Percentage) in or in the interpretation of any law or
regulation or (ii) the compliance with any guideline or request from any
central bank or other Governmental Authority (whether or not having the force
of law), there shall be any increase in the cost as measured from the date
hereof to any Lender of agreeing to make or making, funding or maintaining
Eurodollar Rate Advances or LIBO Rate Advances, then the Borrower shall from
time to time, upon demand by such Lender (with a copy of such demand to the
Administrative Agent), promptly pay to the Administrative Agent for the account
of such Lender additional amounts sufficient to compensate such Lender for such
increased cost.  A certificate as to the
amount of such increased cost, submitted to the Borrower and the Administrative
Agent by such Lender, shall be conclusive and binding for all purposes, absent
manifest error.

 

(b)           If any Lender (other than the Designated Bidders)
determines that compliance with any law or regulation or any guideline or
request from any central bank or other Governmental Authority (whether or not
having the force of law) affects or would affect the amount of capital required
or expected to be maintained by such Lender or any corporation controlling such
Lender and that the amount of such capital is increased by or based upon the
existence of such Lender’s commitment to lend hereunder and other commitments
of this type, then, upon demand by such Lender (with a copy of such demand to
the Administrative Agent), the Borrower shall promptly pay to the
Administrative Agent for the account of such Lender, from time to time as
specified by such Lender, additional amounts sufficient to compensate such
Lender or such corporation in the light of such circumstances, to the extent
that such Lender reasonably determines such increase in capital to be allocable
to the existence of such Lender’s commitment to lend hereunder.  A certificate as to such amounts submitted
to the Borrower and the Administrative Agent by such Lender shall be conclusive
and binding for all purposes, absent manifest error.

 

SECTION
2.12.   Illegality.   Notwithstanding any other provision of this
Agreement, if any Lender shall notify the Administrative Agent that the
introduction of or any change in or in the interpretation of any law or
regulation by any governmental authority charged with such interpretation makes
it unlawful, or any central bank or other Governmental Authority asserts that
it is unlawful, for any Lender or its Eurodollar Lending Office to perform its
obligations hereunder to make Eurodollar Rate Advances or LIBO Rate Advances or
to fund or maintain Eurodollar Rate Advances or LIBO Rate Advances hereunder,
(a) each Eurodollar Rate Advance or LIBO Rate Advance, as the case may be, will
automatically, upon such demand, Convert into a Base Rate Advance or an Advance
that bears interest at the rate set forth in Section 2.07(a)(i), as the case
may be, and (b) the obligation of the Lenders to make Eurodollar Rate Advances
or LIBO Rate Advances, or to Convert Revolving Credit Advances into Eurodollar
Rate Advances, shall be suspended until the Administrative Agent shall notify
the Borrower and the Lenders that the circumstances causing such suspension no
longer exist.

 

SECTION
2.13.   Payments and Computations.   (a) 
The Borrower shall make each payment hereunder and under the Notes not
later than 1:00 P.M. (New York City time) on the day when due, without setoff
or counterclaim, in Dollars to the Administrative Agent at the Administrative
Agent’s Account in same day funds.  The
Administrative Agent will promptly thereafter cause to be distributed like
funds relating to the payment of principal or interest,

 

24

 

facility fees or utilization fees ratably (other than amounts payable pursuant
to Section 2.03, 2.11, 2.14 or 8.04(c)) to the Lenders for the account of their
respective Applicable Lending Offices, and like funds relating to the payment
of any other amount payable to any Lender to such Lender for the account of its
Applicable Lending Office, in each case to be applied in accordance with the
terms of this Agreement.  Upon its
acceptance of an Assignment and Acceptance and recording of the information
contained therein in the Register pursuant to Section 8.07(d), from and after
the effective date specified in such Assignment and Acceptance, the
Administrative Agent shall make all payments hereunder and under the Notes in
respect of the interest assigned thereby to the Lender assignee thereunder, and
the parties to such Assignment and Acceptance shall make all appropriate
adjustments in such payments for periods prior to such effective date directly
between themselves.

 

(b)           The Borrower hereby authorizes the Administrative Agent, if
and to the extent payment owed to any Lender is not made when due hereunder or
under the Note held by such Lender, to charge from time to time against any or
all of the Borrower’s accounts with the Administrative Agent any amount so due.

 

(c)           All computations of interest based on the Base Rate shall be
made by the Administrative Agent on the basis of a year of 365 or 366 days, as
the case may be, and all computations of interest based on the Eurodollar Rate
or the Federal Funds Rate and of facility fees shall be made by the
Administrative Agent on the basis of a year of 360 days, in each case for the
actual number of days (including the first day but excluding the last day)
occurring in the period for which such interest or facility fees are
payable.  Each determination by the
Administrative Agent of an interest rate hereunder shall be conclusive and
binding for all purposes, absent manifest error.

 

(d)           Whenever any payment hereunder or under the Notes shall be
stated to be due on a day other than a Business Day, such payment shall be made
on the next succeeding Business Day, and such extension of time shall in such
case be included in the computation of payment of interest or facility fees, as
the case may be; provided, however, that, if such extension would
cause payment of interest on or principal of Eurodollar Rate Advances or LIBO
Rate Advances to be made in the next following calendar month, such payment
shall be made on the next preceding Business Day.

 

(e)           Unless the Administrative Agent shall have received notice
from the Borrower prior to the date on which any payment is due to the Lenders
hereunder that the Borrower will not make such payment in full, the
Administrative Agent may assume that the Borrower has made such payment in full
to the Administrative Agent on such date and the Administrative Agent may, in
reliance upon such assumption, cause to be distributed to each Lender on such
due date an amount equal to the amount then due such Lender.  If and to the extent the Borrower shall not
have so made such payment in full to the Administrative Agent, each Lender
shall repay to the Administrative Agent forthwith on demand such amount
distributed to such Lender together with interest thereon, for each day from
the date such amount is distributed to such Lender until the date such Lender
repays such amount to the Administrative Agent, at the Federal Funds Rate.

 

25

 

SECTION
2.14.   Taxes.   (a) 
Any and all payments by the Borrower hereunder or under the Notes shall
be made, in accordance with Section 2.13, free and clear of and without
deduction for any and all present or future taxes, levies, imposts, deductions,
charges or withholdings, and all liabilities with respect thereto, excluding, in the case of each Lender and
each Agent, taxes imposed on its net income, and franchise taxes measured by
income imposed on it, by the jurisdiction under the laws of which such Lender
or such Agent (as the case may be) is organized or any political subdivision
thereof and, in the case of each Lender, taxes imposed on its net income, and
franchise taxes measured by income imposed on it, by the jurisdiction of such
Lender’s Applicable Lending Office or any political subdivision thereof (all
such non-excluded taxes, levies, imposts, deductions, charges, withholdings and
liabilities in respect of payments hereunder or under the Notes being
hereinafter referred to as “Taxes”). 
If the Borrower shall be required by law to deduct any Taxes from or in
respect of any sum payable hereunder or under any Note to any Lender or any
Agent (i) the sum payable shall be increased as may be necessary so that after
making all required deductions (including deductions applicable to additional
sums payable under this Section 2.14) such Lender or such Agent (as the case
may be) receives an amount equal to the sum it would have received had no such
deductions been made, (ii) the Borrower shall make such deductions and (iii)
the Borrower shall pay the full amount deducted to the relevant taxation
authority or other authority in accordance with applicable law.

 

(b)           In addition, the Borrower agrees to pay any present or
future stamp or documentary taxes or any other excise or property taxes,
charges or similar levies that arise from any payment made hereunder or under
the Notes or from the execution, delivery or registration of, or otherwise with
respect to, this Agreement or the Notes hereinafter referred to as “Other
Taxes”).

 

(c)           The Borrower shall indemnify each Lender and each Agent for
the full amount of Taxes or Other Taxes (including, without limitation, any
Taxes or Other Taxes imposed by any jurisdiction on amounts payable under this
Section 2.14) paid by such Lender or such Agent or any of its Affiliates (as
the case may be) and any liability (including penalties, interest and expenses)
arising therefrom or with respect thereto, whether or not such Taxes or Other
Taxes were correctly or legally asserted. 
This indemnification shall be made within 30 days from the date such
Lender, such Agent or such Affiliate (as the case may be) makes written demand
therefor.

 

(d)           Within 30 days after the date of any payment of Taxes, the
Borrower shall furnish to the Administrative Agent, at its address referred to
in Section 8.02, the original or a certified copy of a receipt evidencing
payment thereof.  If no Taxes are
payable in respect of any payment hereunder or under the Notes, the Borrower
will furnish to the Administrative Agent, at such address, a certificate from
each appropriate taxing authority, or an opinion of counsel acceptable to the Administrative
Agent, in either case stating that such payment is exempt from or not subject
to Taxes.

 

(e)           Each Lender organized under the laws of a jurisdiction
outside the United States, on or prior to the date of its execution and
delivery of this Agreement in the case of each Initial Lender and on the date
of the Assignment and Acceptance pursuant to which it becomes a Lender in the
case of each other Lender, and from time to time thereafter if requested in
writing

 

26

 

by the Borrower (but only so long as such Lender remains lawfully able
to do so), shall provide each of the Administrative Agent and the Borrower with
Internal Revenue Service form 1001 or 4224, or (in the case of a Lender that
has certified in writing to the Administrative Agent that it is not a “bank” as
defined in Section 881(c)(3)(A) of the Internal Revenue Code) Form W-8 (and, if
such Non-U.S. Lender delivers a Form W-8, a certificate representing that such
Non-U.S. Lender is not a “bank” for purposes of Section 881(c) of the Internal
Revenue Code, is not a 10-percent shareholder (within the meaning of Section
871(h)(3)(B) of the Internal Revenue Code) of the Borrower and is not a
controlled foreign corporation related to the Borrower (within the meaning of
Section 864(d)(4) of the Internal Revenue Code)),as appropriate, or any
successor form prescribed by the Internal Revenue Service, certifying that such
Lender is entitled to benefits under an income tax treaty to which the United States
is a party which reduces the rate of withholding tax on payments of interest or
certifying that the income receivable pursuant to this Agreement is effectively
connected with the conduct of a trade or business in the United States.  Each such Lender shall provide the
Administrative Agent and the Borrower with a new form 1001, 4224 or W-8, as
appropriate, if and at such time as the previously provided form becomes
invalid.  If the form provided by a
Lender at the time such Lender first becomes a party to this Agreement or at
any other time indicates a United States interest withholding tax rate in
excess of zero, withholding tax at such rate shall be considered excluded from
“Taxes” as defined in Section 2.14(a).

 

(f)            For any period with respect to which a Lender has failed
to provide the Borrower with the appropriate form described in subsection (e)
of this Section 2.14 (other than
if such failure is due to a change in law occurring subsequent to the date on
which a form originally was required to be provided, or if such form otherwise
is not required under the first sentence of subsection (e) of this Section
2.14), such Lender shall not be entitled to indemnification under subsection
(a) or (c) of this Section 2.14 with respect to Taxes imposed by the United
States by reason of such failure; provided,
however, that should a Lender
become subject to Taxes because of its failure to deliver a form required
hereunder, the Borrower shall take such steps as the Lender shall reasonably
request to assist the Lender to recover such Taxes.

 

(g)           Notwithstanding any contrary provisions of this Agreement,
in the event that a Lender that originally provided such form as may be
required under subsection (e) of this Section 2.14 thereafter ceases to qualify
for complete exemption from United States withholding tax, such Lender, with
the prior written consent of the Borrower, which consent shall not be
unreasonably withheld, may assign its interest under this Agreement to any
assignee and such assignee shall be entitled to the same benefits under this
Section 2.14 as the assignor provided
that the rate of United States withholding tax applicable to such assignee
shall not exceed the rate then applicable to the assignor.

 

(h)           Without prejudice to the survival of any other agreement of
the Borrower hereunder, the agreements and obligations of the Borrower
contained in this Section 2.14 shall survive the payment in full of principal
and interest hereunder and under the Notes.

 

(i)            Any Lender claiming any additional amounts payable
pursuant to this Section 2.14 agrees to use reasonable efforts (consistent with
its internal policy and legal and regulatory restrictions) to change the
jurisdiction of its Eurodollar Lending Office if the making of such a change
would avoid the need for, or reduce the amount of, any such additional amounts

 

27

 

that may thereafter accrue and would not, in the reasonable judgment of
such Lender, be otherwise disadvantageous to such Lender.

 

SECTION
2.15.   Sharing of Payments, Etc.   If any Lender shall obtain any payment
(whether voluntary, involuntary, through the exercise of any right of setoff,
or otherwise) on account of the Revolving Credit Advances owing to it (other
than pursuant to Section 2.11, 2.14 or 8.04(c)) in excess of its ratable share
of payments on account of the Revolving Credit Advances obtained by all the
Lenders, such Lender shall forthwith purchase from the other Lenders such
participations in the Revolving Credit Advances owing to them as shall be
necessary to cause such purchasing Lender to share the excess payment ratably
with each of them; provided, however, that if all or any portion of
such excess payment is thereafter recovered from such purchasing Lender, such
purchase from each Lender shall be rescinded and such Lender shall repay to the
purchasing Lender the purchase price to the extent of such recovery together
with an amount equal to such Lender’s ratable share (according to the
proportion of (i) the amount of such Lender’s required repayment to (ii) the
total amount so recovered from the purchasing Lender) of any interest or other
amount paid or payable by the purchasing Lender in respect of the total amount
so recovered.  The Borrower agrees that
any Lender so purchasing a participation from another Lender pursuant to this
Section 2.15 may, to the fullest extent permitted by law, exercise all its
rights of payment (including the right of setoff) with respect to such
participation as fully as if such Lender were the direct creditor of the
Borrower in the amount of such participation.

 

SECTION
2.16.   Extensions of Termination
Date and Final Maturity Date.  
(a)  No earlier than 60 days and
no later than 45 days prior to the Termination Date in effect at any time, the
Borrower may, by written notice to the Administrative Agent, request that such
Termination Date be extended for a period of 364 days.  Such request shall be irrevocable and
binding upon the Borrower.  The
Administrative Agent shall promptly notify each Lender of such request.  If a Lender agrees, in its individual and
sole discretion, to so extend its Commitment (an “Extending Lender”), it
shall deliver to the Administrative Agent a written notice of its agreement to
do so no earlier than 30 days and no later than 20 days prior to such
Termination Date and the Administrative Agent shall notify the Borrower of such
Extending Lender’s agreement to extend its Commitment no later than 15 days
prior to such Termination Date.  The
Commitment of any Lender that fails to accept or respond to the Borrower’s
request for extension of the Termination Date (a “Declining Lender”)
shall be terminated on the Termination Date originally in effect (without
regard to any extension by other Lenders) and on such Termination Date the Borrower
shall pay in full the principal amount of all Advances owing to such Declining
Lender, together with accrued interest thereon to the date of such payment of
principal and all other amounts payable to such Declining Lender under this
Agreement.  The Administrative Agent
shall promptly notify each Extending Lender of the aggregate Commitments of the
Declining Lender.  The Extending
Lenders, or any of them, may offer to increase their respective Commitments by
an aggregate amount up to the aggregate amount of the Declining Lenders’
Commitments and any such Extending Lender shall deliver to the Administrative
Agent a notice of its offer to so increase its Commitment no later than 15 days
prior to such Termination Date.  To the
extent of any shortfall in the aggregate amount of extended Commitments, the
Borrower shall have the right to require any Declining Lender to assign in full
its rights and obligations under this Agreement to one or more Eligible
Assignees designated by the Borrower and acceptable to the Administrative
Agent, such acceptance not to

 

28

 

be unreasonably withheld, that agree to accept all of such rights and
obligations (each a “Replacement Lender”), provided that (i) such increase and/or such assignment is
otherwise in compliance with Section 8.07, (ii) such Declining Lender receives
payment in full of the principal amount of all Advances owing to such Declining
Lender, together with accrued interest thereon to the date of such payment of principal
and all other amounts payable to such Declining Lender under this Agreement and
(iii) any such increase shall be effective on the Termination Date in effect at
the time the Borrower requests such extension and any such assignment shall be
effective on the date specified by the Borrower and agreed to by the
Replacement Lender and the Administrative Agent.  If Extending Lenders and Replacement Lenders provide Commitments
in an aggregate amount greater than 50% of the aggregate amount of the
Commitments outstanding 30 days prior to the Termination Date in effect at the
time the Borrower requests such extension, the Termination Date shall be
extended by 364 days for such Extending Lenders and Replacement Lenders, subject, however,
to the provisions of subsection (b) of this Section 2.16.

 

(b)           On the Termination Date in effect at any time, the Borrower
may, by written notice to the Administrative Agent, request that the Final
Maturity Date be a date occurring up to the third anniversary of the then
scheduled Termination Date.  Such
request shall be irrevocable and binding upon the Borrower.  The Administrative Agent shall promptly
notify each Lender of such request. 
Subject to the satisfaction of the applicable conditions set forth in
Section 3.02 as of such Termination Date, the Final Maturity Date shall be,
effective as of such Termination Date, such date as the Borrower shall request
pursuant to this subsection (b) of this Section 2.16.  In the event that the Borrower shall request that the Final
Maturity Date be a date occurring up to the third anniversary of the then
scheduled Termination Date, and the Final Maturity Date shall be so extended as
provided in this subsection (b) of this Section 2.16, the right of the Borrower
to request an extension of the Termination Date pursuant to subsection (a) of
this Section 2.16 shall automatically terminate and any extension of the
Termination Date in effect at the time such request is made which would
otherwise occur as provided in subsection (a) of this Section 2.16 shall
automatically be cancelled.  The
Administrative Agent shall promptly notify each Lender of any such extension of
the Final Maturity Date and any such cancellation of an extension of the
Termination Date.

 

SECTION
2.17.   Substitution of Lender.   If the obligation of any Lender to make
Eurodollar Rate Advances has been suspended pursuant to Section 2.12 or any
Lender has demanded compensation or the Borrower is otherwise required to pay
additional amounts under Section 2.11 or 2.14, the Borrower shall have the
right to seek a substitute lender or lenders who qualify as Eligible Assignees
to assume, in accordance with the provisions of Section 8.07, the Commitment of
such Lender and to purchase the Revolving Credit Advances made by such Lender (without
recourse to or warranty by such Lender).

 

ARTICLE III

 

CONDITIONS TO EFFECTIVENESS
AND LENDING

 

SECTION
3.01.   Conditions Precedent to
Effectiveness of Sections 2.01 and 2.03.  
Sections 2.01 and 2.03 of this Agreement shall become effective on and as
of the first date (the “Effective Date”) on which the following
conditions precedent have been satisfied:

 

29

 

(a)
          The Borrower shall have notified
each Lender and the Administrative Agent in writing as to the proposed
Effective Date.

 

(b)
          The Borrower shall have paid all
fees and other amounts due and payable.

 

(c)
          The Borrower shall have repaid
all outstanding advances and shall have paid all other amounts payable under
each of the Existing Credit Facilities and the commitments under each such
Existing Credit Facility shall have been terminated.

 

(d)
          On the Effective Date, the
following statements shall be true and the Administrative Agent shall have
received for the account of each Lender a certificate signed by a duly
authorized officer of the Borrower, dated the Effective Date, stating that:

 

(i)
           the representations and
warranties contained in Section 4.01 are correct in all material respects on
and as of the Effective Date; and

 

(ii)
          no event has occurred and is
continuing that constitutes a Default.

 

(e)
          The Administrative Agent shall
have received on or before the Effective Date the following, each dated such
day, in form and substance satisfactory to the Administrative Agent and (except
for the Revolving Credit Notes) in sufficient copies for each Lender:

 

(i)
           The Revolving Credit Notes to
the order of the Lenders, respectively.

 

(ii)
          A guaranty, in substantially the
form of Exhibit E hereto (as amended, supplemented or otherwise modified from
time to time, the “Guaranty”), duly executed by each of the Guarantors.

 

(iii)          An indemnity, subrogation and contribution agreement, in
substantially the form of Exhibit F hereto (as amended, supplemented or
otherwise modified from time to time, the “Indemnity Agreement”), duly executed
by the Borrower and each of the Guarantors.

 

(iv)          Certified copies of the resolutions of the board of
directors of the Borrower approving this Agreement, the Notes and the Indemnity
Agreement, and of all documents evidencing other necessary corporate action and
governmental approvals, if any, with respect to this Agreement, the Notes and
the Indemnity Agreement.

 

(v)
          Certified copies of the
resolutions of the board of directors of each of the Guarantors approving the
Guaranty and the Indemnity Agreement, and of all documents evidencing other
necessary corporate action and governmental approvals, if any, with respect to
the Guaranty and the Indemnity Agreement.

 

(vi)          A certificate of the Secretary or an Assistant Secretary of
each of the Guarantors certifying the names and true signatures of the officers
of such

 

30

 

Guarantor authorized to sign
the Guaranty and the Indemnity Agreement and the other documents to be
delivered hereunder.

 

(vii)         A certificate of the Secretary or an
Assistant Secretary of the Borrower certifying the names and true signatures of
the officers of the Borrower authorized to sign this Agreement, the Notes and
the Indemnity Agreement and the other documents to be delivered hereunder.

 

(viii)        A favorable opinion of King &
Spalding LLP, counsel for the Borrower, substantially in the form of Exhibit G
hereto.

 

(ix)           A favorable opinion of Shearman & Sterling, counsel for
the Administrative Agent, in form and substance satisfactory to the
Administrative Agent.

 

SECTION
3.02.   Conditions Precedent to
Each Revolving Credit Borrowing and to Extension of the Final Maturity Date.   The obligation of each Lender to make a
Revolving Credit Advance on the occasion of each Revolving Credit Borrowing and
the extension of the Final Maturity Date pursuant to Section 2.16(b) shall be
subject to the conditions precedent that the Effective Date shall have occurred
and on the date of such Revolving Credit Borrowing or, in the case of the
Extension of the Final Maturity Date, on the Termination Date then in effect
the following statements shall be true (and each of the giving of the
applicable Notice of Revolving Credit Borrowing and the acceptance by the
Borrower of the proceeds of such Revolving Credit Borrowing and the giving of
the applicable notice of extension of the Final Maturity Date, as the case may
be, shall constitute a representation and warranty by the Borrower that on the
date of such Borrowing or such extension such statements are true):

 

(a)
          the representations and
warranties contained in Section 4.01 (except the representations set forth in
subsection (f) thereof and in subsection (h) thereof) are correct in all
material respects on and as of the date of such Revolving Credit Borrowing or
such extension, before and after giving effect to such Revolving Credit
Borrowing and to the application of the proceeds therefrom or to such
extension, as though made on and as of such date; and

 

(b)
          no event has occurred and is
continuing, or would result from such Revolving Credit Borrowing or from the
application of the proceeds therefrom or from such extension, that constitutes
a Default.

 

SECTION
3.03.   Conditions Precedent to
Each Competitive Bid Borrowing.  
The obligation of each Lender that is to make a Competitive Bid Advance
on the occasion of a Competitive Bid Borrowing to make such Competitive Bid
Advance as part of such Competitive Bid Borrowing is subject to the conditions
precedent that (a) the Administrative Agent shall have received the written
confirmatory Notice of Competitive Bid Borrowing with respect thereto,  (b) on or before the date of such
Competitive Bid Borrowing, but prior to such Competitive Bid Borrowing, the
Administrative Agent shall have received a Competitive Bid Note payable to the
order of such Lender for each of the one or more Competitive Bid Advances to be
made by such Lender as part of such Competitive Bid Borrowing, in a principal
amount equal to the principal

 

31

 

amount of the Competitive Bid Advance to be evidenced thereby and
otherwise on such terms as were agreed to for such Competitive Bid Advance in
accordance with Section 2.03, and (c) on the date of such Competitive Bid
Borrowing the following statements shall be true (and each of the giving of the
applicable Notice of Competitive Bid Borrowing and the acceptance by the
Borrower of the proceeds of such Competitive Bid Borrowing shall constitute a
representation and warrant y by the Borrower that on the date of such
Competitive Bid Borrowing such statements are true):

 

(i)
           the representations and
warranties contained in Section 4.01 (except the representations set forth in
subsection (f) thereof and in subsection (h) thereof) are correct in all
material respects on and as of the date of such Competitive Bid Borrowing,
before and after giving effect to such Competitive Bid Borrowing and to the
application of the proceeds therefrom, as though made on and as of such date;
and

 

(ii)
          no event has occurred and is
continuing, or would result from such Competitive Bid Borrowing or from the
application of the proceeds therefrom, that constitutes a Default.

 

SECTION
3.04.   Determinations Under
Section 3.01.   For purposes of
determining compliance with the conditions specified in Section 3.01, each
Lender shall be deemed to have consented to, approved or accepted or to be
satisfied with each document or other matter required thereunder to be
consented to or approved by or acceptable or satisfactory to the Lenders unless
an officer of the Administrative Agent responsible for the transactions
contemplated by this Agreement shall have received notice from such Lender
prior to the proposed Effective Date, as notified by the Borrower to the Lenders,
specifying its objection thereto.  The
Administrative Agent shall promptly notify the Borrower and the other Lenders
of the occurrence of any such objection. 
The Administrative Agent shall promptly notify the Borrower and the
Lenders of the Effective Date.

 

SECTION
3.05.   Labor Dispute.   Notwithstanding any condition precedent to
the contrary contained herein, a labor dispute of any sort involving employees
of the Borrower or its Subsidiaries shall not prevent the Borrower from
borrowing hereunder unless as a result thereof a Default exists under Section
6.01(a) or (e).

 

ARTICLE IV

 

REPRESENTATIONS AND
WARRANTIES

 

SECTION
4.01.   Representations and
Warranties of the Borrower.   The
Borrower represents and warrants as follows:

 

(a)
          Each of the Loan Parties and the
Subsidiaries of the Borrower (i) is a corporation duly organized, validly
existing and in good standing under the laws of the jurisdiction of its
incorporation, (ii) has the requisite power and authority to own its property
and assets and to carry on its business as now conducted, (iii) is qualified to
do business in every jurisdiction where such qualification is required, except
where the failure so to qualify would not result in a Material Adverse Effect,
(iv) in the case of each

 

32

 

of the Loan Parties, has the
corporate power and authority to execute, deliver and perform its obligations
under each Loan Document to which it is or is to be a party and each other
agreement or instrument contemplated thereby to which it is or is to be a party
and (v) in the case of the Borrower, has the corporate power and authority to
borrow under this Agreement.

 

(b)
          The execution, delivery and
performance by each of the Loan Parties of each Loan Document to which it is or
is to be a party and the consummation of the transactions contemplated thereby
are within such Loan Party’s corporate powers, have been duly authorized by all
necessary corporate action and, if required, stockholder action, and do not (i)
contravene the charter or other constitutive documents or by- laws of such Loan
Party or any Subsidiary of the Borrower, (ii) violate any law or order of any
Governmental Authority or any provision of any indenture, agreement or other
instrument to which any Loan Party or any Subsidiary of the Borrower is a party
or by which any of them or any of their property is or may be bound or
affected, (iii) conflict with, result in a breach of or constitute (alone or
with notice or lapse of time or both) a default under any such indenture,
agreement or other instrument or (iv) result in the creation or imposition of
any Lien upon or with respect to any property or assets now owned or hereafter
acquired by any Loan Party or any Subsidiary of the Borrower.

 

(c)
          No authorization, approval or
other action by, and no notice to or filing with, any Governmental Authority is
required for the due execution, delivery and performance by any Loan Party of
this Agreement, the Notes or any other Loan Document to which it is or is to be
a party, or for the consummation of the transactions contemplated hereby and
thereby, except for such authorizations, approvals, actions, notices or filings
that have been made or obtained and are in full force and effect.

 

(d)
          This Agreement has been, and
each of the Notes and each other Loan Document when delivered hereunder will
have been, duly executed and delivered by each of the Loan Parties party
thereto.  This Agreement is, and each of
the Notes and each other Loan Document when delivered hereunder will be, the
legal, valid and binding obligation of each of the Loan Parties party thereto
enforceable against such Loan Party in accordance with their respective terms
(subject, as to the enforcement of remedies, to applicable bankruptcy,
reorganization, insolvency, moratorium and similar laws affecting creditors’
rights generally).

 

(e)
          (i)  The Consolidated balance sheet of the Borrower and its
Subsidiaries as at December 31, 2002, and the related Consolidated statements
of income and cash flows of the Borrower and its Subsidiaries for the Fiscal
Year then ended, all audited and certified by Deloitte & Touche LLP,
independent public accountants, copies of which have been furnished to each
Lender, fairly present the Consolidated financial condition of the Borrower and
its Subsidiaries at such dates and the Consolidated results of the operations
of the Borrower and its Subsidiaries for the periods ended on such dates, all
in accordance with GAAP consistently applied. 
Such balance sheets and the notes thereto disclose all material
liabilities, direct or contingent, of the Borrower and its Subsidiaries on a
Consolidated basis as of the dates thereof.

 

33

 

(f)
           There has been no Material
Adverse Change since December 31, 2002.

 

(g)
          Each of the Borrower and its
Material Subsidiaries has good and marketable title to, or valid leasehold
interests in, all their material properties and assets, except for such
properties as are no longer used or useful in the conduct of their businesses
or as have been disposed of in the ordinary course of business and except for
minor defects in title that do not interfere with the ability of the Borrower
or any of its Material Subsidiaries to conduct its businesses as currently conducted.  All such properties and assets are free and
clear of Liens, other than Liens expressly permitted by Section 5.02(b).

 

(h)
          Except as set forth in the
financial statements referred to in subsection (e) of this Section 4.01, there
is no pending or, to the knowledge of the Borrower, threatened action, suit,
investigation, litigation or proceeding affecting the Borrower or any of its
Material Subsidiaries or any business, property or rights of the Borrower or
any Material Subsidiary (i) as to which there is a reasonable possibility of an
adverse determination and which, if adversely determined, could reasonably be
expected to have, individually or in the aggregate, a Material Adverse Effect
or (ii) that purports to affect the legality, validity or enforceability of
this Agreement, any Note or any other Loan Document or the consummation of the
transactions contemplated hereby or thereby. 
Neither the Borrower nor any of its Subsidiaries is in violation of any
law, rule or regulation, or in default with respect to any judgement, writ,
injunction or decree of any Governmental Authority, where such violation or
default could result in a Material Adverse Effect.

 

(i)
           Neither the Borrower nor any of
its Subsidiaries is a party to any agreement or instrument or subject to any
corporate restriction that has resulted or could  reasonably be expected to result in a Material Adverse
Effect.  Neither the Borrower nor any of
its Subsidiaries is in default in any manner under any provision of any
indenture or other agreement or instrument evidencing Debt, or any other
material agreement or instrument to which it is a party or by which it or any
of its properties or assets are or may be bound, where such default could
result in a Material Adverse Effect.

 

(j)
           Neither the Borrower nor any of
its Subsidiaries is engaged principally, or as one of its important activities,
in the business of extending credit for the purpose of purchasing or carrying
Margin Stock.  No part of the proceeds
of any Advance will be used, whether directly or indirectly, and whether
immediately, incidentally or ultimately, (i) to purchase or carry Margin Stock
or to extend credit to others for the purpose of purchasing or carrying Margin
Stock or to refund indebtedness originally incurred for such purpose or (ii)
for any purpose which entails a violation of, or which is inconsistent with,
the provisions of the Regulations of the Board of Governors of the Federal
Reserve System, including Regulation T, U or X thereof.

 

(k)
          Neither the Borrower nor any of
its Subsidiaries is (i) an “investment company”, as defined in, or subject to
regulation under, the Investment Company Act of 1940, as amended or (ii) a
“holding company” as defined in, or subject to regulation under, the Public
Utility Holding Company Act of 1935, as amended.

 

34

 

(l)
           The Borrower will use the
proceeds of the Advances only as a commercial paper backstop and for lawful
general corporate purposes.

 

(m)          Each of the Borrower and its Subsidiaries has filed or
caused to be filed all federal, state and local tax returns required to have
been filed by it and has paid or caused to be paid all taxes shown to be due
and payable on such returns or on any assessments received by it, except taxes
that are otherwise permitted in accordance with the provisions of Section
5.01(b).

 

(n)
          No information, report,
financial statement, exhibit or schedule prepared or furnished by or on behalf
of the Borrower to the Administrative Agent, the Documentation Agent, the
Arranger or any Lender in connection with the negotiation of any Loan Document
or included therein or delivered pursuant thereto contained, contains or will
contain any material misstatement of fact or omitted, omits or will omit to
state any material fact necessary to make the statements therein, in the light
of the circumstances under which they were, are or will be made, not
misleading.

 

(o)
          Each of the Borrower and its
Subsidiaries is in compliance in all material respects with the applicable
provisions of ERISA and the regulations and published interpretations
thereunder that are applicable to the Borrower and its Subsidiaries.  As of the date hereof, no Reportable Event
has occurred as to which the Borrower or any of its Subsidiaries was required
to file a report with the PBGC, and no material unfunded vested liabilities
exist under any Plan.

 

(p)
          Each of the Borrower and its
Subsidiaries is in substantial compliance with all applicable federal, state
and local environmental laws, regulations and ordinances governing its
business, properties or assets with respect to discharges into the ground and
surface water, emissions into the ambient air and generation, storage,
transportation and disposal of waste materials or process by-products, except
such noncompliances as are not likely to have a Material Adverse Effect.  All licenses, permits or registrations
required for the business of the Borrower and its Subsidiaries under any
federal, state or local environmental laws, regulations or ordinances have been
secured, and the Borrower and each Subsidiary are in substantial compliance
therewith, except such licenses, permits or registrations the failure to secure
or to comply therewith are not likely to have a Material Adverse Effect.

 

ARTICLE V

 

COVENANTS OF THE BORROWER

 

SECTION
5.01.   Affirmative Covenants.   So long as any Advance shall remain unpaid
or any Lender shall have any Commitment hereunder, the Borrower will, and will
cause each of its Material Subsidiaries to, unless the Required Lenders shall
otherwise consent in writing:

 

(a)
          Compliance with Laws, Etc.   Comply with all applicable laws, rules,
regulations and orders of any Governmental Authority, whether now in effect or
hereafter

 

35

 

enacted,
such compliance to include, without limitation, compliance with ERISA and
applicable environmental laws, except for such noncompliance as would not
result in a Material Adverse Effect.

 

(b)
          Payment of Taxes, Etc.   Pay and discharge promptly when due all
taxes, assessments and governmental charges or levies imposed upon it or upon
its income or profits or in respect of its property, before the same shall
become delinquent or in default, as well as all lawful claims for labor,
materials and supplies or otherwise that, if unpaid, might give rise to a Lien
upon such properties or any part thereof; provided,
however, that such payment and
discharge shall not be required with respect to any such tax, assessment,
charge, levy or claim so long as the validity or amount thereof shall be
contested in good faith by appropriate proceedings or where the failure to pay
such tax, assessment, charge, levy or claim would not (i) result in a Material
Adverse Effect or (ii) result in the imposition of any lien securing a material
amount in favor of any party entitling such party to priority of payment over
the Lenders, and the Borrower or such Subsidiary shall, to the extent required
by generally accepted accounting principles applied on a consistent basis, have
set aside on its books adequate reserves with respect thereto.

 

(c)
          Maintenance of Insurance.   (i) Keep its insurable properties
adequately insured at all times by financially sound and reputable insurers,
(ii) maintain such other insurance, to such extent and against such risks,
including fire and other risks insured against by extended coverage, as is
customary with companies in the same or similar businesses, including public
liability insurance against claims for personal injury or death or property damage
occurring upon, in, about or in connection with the use of any properties
owned, occupied or controlled by the Borrower or any of its Subsidiaries, in
such amount as the Borrower or such Subsidiary shall reasonably deem necessary
and (iii) maintain such other insurance as may be required by law or as may be
reasonably requested by the Lenders for purposes of assuring compliance with
this Section 5.01(c) (it being understood that the Borrower may self- insure
against certain risks to the extent customary with companies similarly situated
and in the same or similar lines of business).

 

(d)
          Preservation of Corporate
Existence, Etc.   Preserve and
maintain, and cause its Subsidiaries to preserve and maintain, its corporate
existence; obtain, preserve, renew, extend and keep in full force and effect
the rights, licenses, permits, franchises, authorizations, patents, copyrights,
trademarks and tradename material to the conduct of its business (unless the
failure to so preserve or renew would not result in a Material Adverse Effect);
and maintain and operate, and cause its Subsidiaries to maintain and operate,
its businesses in materially the same manner in which they are currently
conducted and operated; provided,
however, that the Borrower and
its Subsidiaries may consummate any merger or consolidation permitted under
Section 5.02(d).

 

(e)
          Visitation Rights.   At any reasonable time and from time to
time, upon ten Business Days’ prior notice, permit the Administrative Agent or
any Lender (other than a Designated Bidder) or any agents or representatives
thereof, to examine and make copies of and abstracts from the records and books
of account of, and visit the properties of, the Borrower and any of its
Subsidiaries, and to discuss the affairs, finances and accounts of

 

36

 

the Borrower and any of its
Subsidiaries (i) with any of their officers and (ii) with their independent
certified public accountants, in the presence of one or more officers of the
Borrower if so requested by the Borrower (it being understood that information
obtained by the Lenders pursuant to this Section 5.01(e) shall be kept
confidential except to the extent that any such information becomes public or
is required to be disclosed by law or requested to be disclosed by any
Governmental Authority; provided that such information may be disclosed to the
same extent that other Confidential Information may be disclosed pursuant to
Section 8.08).

 

(f)
           Keeping of Books.   Keep, and cause each of its Subsidiaries to
keep, proper books of record and account, in which full and correct entries
shall be made of all financial transactions and the assets and business of the
Borrower and each such Subsidiary in accordance with generally accepted
accounting principles in effect from time to time.

 

(g)
          Maintenance of Properties,
Etc.   Maintain and preserve all of
its properties material to the conduct of its business in good repair, working
order and condition, ordinary wear and tear excepted, and from time to time
make, or cause to be made, all needful and proper repairs, renewals, additions,
improvements and replacements thereto necessary in order that the business
carried on in connection therewith may be properly conducted at all times.

 

(h)
          Reporting Requirements.   In the case of the Borrower, furnish to
each Agent and each Lender (other than a Designated Bidder):

 

(i)
           within 120 days after the end
of each Fiscal Year of the Borrower, Consolidated balance sheets of the
Borrower and its Subsidiaries showing the financial condition of the Borrower
and its Subsidiaries as of the close of such Fiscal Year and the related
statements of Consolidated income and statements of Consolidated cash flow as
of and for such Fiscal Year, all such Consolidated financial statements of the
Borrower and its Subsidiaries to be reported on by Deloitte & Touche or
other independent accountants acceptable to the Required Lenders, and to be in
form reasonably acceptable to the Required Lenders;

 

(ii)
          within 60 days after the end of the
first three fiscal quarters of each Fiscal Year, unaudited Consolidated balance
sheets and statements of Consolidated income and statements of Consolidated
cash flow showing the financial condition and results of operations of the
Borrower as of the end of each such quarter and, with respect to statements of
Consolidated cash flow, for the then-elapsed portion of the Fiscal Year,
certified by a Financial Officer of the Borrower as presenting fairly the
financial position and results of operations of the Borrower on a Consolidated
basis and as having been prepared in accordance with GAAP, in each case subject
to normal year-end audit adjustments;

 

(iii)          promptly after the same become publicly available, copies
of (A) such annual, periodic and other reports, and such proxy statements and
other information as shall be filed by the Borrower or any Material Subsidiary
with the

 

37

 

Securities and Exchange
Commission pursuant to the requirements of the Exchange Act and (B) such
registration statements filed by the Borrower or any Material Subsidiary
pursuant to the requirements of Securities Act of 1933, as amended, other than
any such registration statements filed on Form S-8 or any comparable form;

 

(iv)          concurrently with subsections (h)(i) and (h)(ii) of this
Section 5.01, a certificate of a Financial Officer of the Borrower stating
compliance, as of the dates of the financial statements being furnished at such
time, with the covenant set forth in Section 5.02(a);

 

(v)
          concurrently with subsections
(h)(i) and (h)(ii) of this Section 5.01, a certificate of the Person referred
to therein (which certificate furnished by the independent accountants referred
to in subsection (h)(i) of this Section 5.01 may be limited to accounting
matters and disclaim responsibility for legal interpretations) certifying that
to the best of his, her or its knowledge no Default or Event of Default has
occurred and, in the case of a certificate of a Financial Officer of the
Borrower, if such a Default or Event of Default has occurred, specifying the
nature and extent thereof and any corrective action taken or proposed to be
taken with respect thereto;

 

(vi)          prompt written notice of any Default, specifying the nature
and extent thereof and any corrective action taken or proposed to be taken with
respect thereto;

 

(vii)         prompt written notice of the filing or
commencement of, or any threat or notice of intention of any Person to file or
commence, any action, suit, arbitration proceeding or other proceeding, whether
at law or in equity or by or before any Governmental Authority, against the
Borrower or any Subsidiary thereof that, if adversely determined, could result
in a Material Adverse Effect;

 

(viii)        prompt written notice of any development
in the business or affairs of the Borrower or any of its Subsidiaries that has
resulted in or which is likely, in the reasonable judgment of the Borrower, to
result in a Material Adverse Effect (it being understood that material provided
to any Agent or Lender pursuant to this subsection (h)(viii) of this Section
5.01 shall be kept confidential except to the extent that any such material
becomes public or is required to be disclosed by law or requested to be
disclosed by any Governmental Authority having jurisdiction over such Agent or
Lender; provided that such information may be disclosed to the same extent that
other Confidential Information may be disclosed pursuant to Section 8.08);

 

(ix)           prompt written notice of the issuance by any Governmental Authority
of any injunction, order, decision or other restraint prohibiting, or having
the effect of prohibiting, the making of the Advances or the initiation of any
litigation or similar proceedings seeking any such injunction, order or other
restraint;

 

38

 

(x)            prompt written notice of any Change of Control;

 

(xi)           prompt written notice of any change in the identity of the
Principal Properties from those set forth on the schedule to be delivered
pursuant to Section 5.01(j) after the date such schedule is delivered to the
Administrative Agent and each Lender; and

 

(xii)          prompt written notice of any change in
the identity of the Restricted Subsidiaries from those set forth on the
schedule to be delivered pursuant to Section 5.01(j) after the date such
schedule is delivered to the Administrative Agent and each Lender.

 

(i)
           Compliance with ERISA.   Comply in all material respects with the
applicable provisions of ERISA and furnish to the Administrative Agent, the
Documentation Agent and each Lender (other than a Designated Bidder) (i) as
soon as possible, and in any event within 30 days after any Financial Officer
of the Borrower knows or has reason to know that any Reportable Event has
occurred that alone or together with any other Reportable Event with respect to
the same or another Plan could reasonably be expected to result in liability of
the Borrower or any Subsidiary to the PBGC in an aggregate amount exceeding
$1,000,000, a statement of a Financial Officer setting forth details as to such
Reportable Event and the action proposed to be taken with respect thereto,
together with a copy of the notice, if any, of such Reportable Event given to
the PBGC and (ii) promptly after receipt thereof, a copy of any notice the
Borrower or any Subsidiary may receive from the PBGC relating to the intention
of the PBGC to terminate any Plan or Plans or to appoint a trustee to
administer any Plan or Plans.

 

(j)
           Principal Properties;
Restricted Subsidiaries.   Promptly
deliver to the Administrative Agent and each Lender (other than a Designated
Bidder) on the date on which the Borrower’s Public Debt Rating is lower than
S&P AA- or Moody’s AA3, a schedule setting forth each Principal Property
and each Restricted Subsidiary as of such date.

 

SECTION
5.02.   Negative Covenants.   So long as any Advance shall remain unpaid
or any Lender shall have any Commitment hereunder, the Borrower will not, and
will not permit any of its Subsidiaries to, without the written consent of the
Required Lenders:

 

(a)
          Secured Indebtedness.   In the case of the Borrower and each of its
Restricted Subsidiaries, create, assume, incur or guarantee, or permit any
Restricted Subsidiary to create, assume, incur or guarantee (each such
creation, assumption, incurrence or guarantee being an “Incurrence”),
any Secured Indebtedness without making provision whereby all amounts
outstanding under this Agreement and each other Loan Document shall be secured
equally and ratably with (or prior to) such Secured Indebtedness (together
with, if the Borrower shall so determine, any other Debt of the Borrower or
such Restricted Subsidiary then existing or thereafter created that is not
subordinate to such amounts outstanding under this Agreement and the other Loan
Documents) so long as such Secured Indebtedness shall be outstanding, unless
such Secured Indebtedness, when added to (i) the aggregate amount of all
Secured

 

39

 

Indebtedness then
outstanding (not including in this computation (A) any Secured Indebtedness if
all amounts outstanding under this Agreement and each other Loan Document are
secured equally and ratably with (or prior to) such Secured Indebtedness and
(B) any Secured Indebtedness that is concurrently being retired) and (ii) the
aggregate amount of all Attributable Debt then outstanding pursuant to Sale and
Leaseback Transactions entered into by the Borrower after December 1, 1989, or
entered into by any Restricted Subsidiary after December 1, 1989, or, if later,
the date on which such Subsidiary became a Restricted Subsidiary (not including
in this computation any Attributable Debt that is currently being retired)
would not exceed 10% of Consolidated Net Tangible Assets at the time of such
Incurrence.

 

(b)
          Liens, Etc.   In the case of the Borrower and each of the
Restricted Subsidiaries, create, incur, assume or permit to exist any Lien on
any property or assets (including stock or other securities of any Person,
including any Subsidiary) now owned or hereafter acquired, or assign or convey
any rights to or security interests in any future revenue, except:

 

(i)
           Liens on property or assets of
the Borrower and its Subsidiaries existing on the date hereof and (A) disclosed
in the financial statements referred to in Section 4.01(e) or (B) securing Debt
in an aggregate principal amount not in excess of $50,000,000; provided that such Liens shall secure only
those obligations which they secure on the date hereof;

 

(ii)
          any Lien existing on any
property or asset prior to the acquisition thereof by the Borrower or any
Subsidiary; provided that (A)
such Lien is not created in contemplation of or in connection with such
acquisition and (B) such Lien does not apply to any other property or assets of
the Borrower or any Subsidiary;

 

(iii)          carriers’, warehousemen’s, mechanics’,
materialmen’s, repairmen’s or other like Liens arising in the ordinary course
of business and securing obligations that are not due or which are otherwise
allowed in accordance with the provisions of Section 5.01(b);

 

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

 

(v)
          deposits to secure the
performance of bids, trade contracts (other than for Debt), leases (other than
Capital Lease Obligations), statutory obligations, surety and appeal bonds,
performance bonds and other obligations of a like nature incurred in the
ordinary course of business;

 

(vi)          zoning restrictions, easements, rights-of-way, restrictions
on use of real property and other similar encumbrances incurred in the ordinary
course of business that, in the aggregate, are not substantial in amount and do
not materially

 

40

 

detract from the value of
the property subject thereto or interfere with the ordinary conduct of the
business of the Borrower or any of its Subsidiaries;

 

(vii)
        Liens upon any property acquired,
constructed or improved by the Borrower or any Subsidiary that are created or
incurred contemporaneously with acquisition, construction or improvement to
secure or provide for the payment of any part of the purchase price of such
property or the cost of such construction or improvement (but no other amounts);
provided that any such Lien shall not apply to any other property of the
Borrower or any Subsidiary;

 

(viii)
       Liens securing the payment of
taxes, assessments and governmental charges or levies, either (A) not
delinquent or (B) permitted in accordance with Section 5.01(b);

 

(ix)
          Liens on the property or assets
of any Subsidiary in favor of  the
Borrower or another Subsidiary;

 

(x)
           extensions, renewals and
replacements of Liens referred to in subsections (b)(i) through (b)(ix) of this
Section 5.02; provided that any such extension, renewal or replacement Lien
shall be limited to the property or assets covered by the Lie n extended,
renewed or replaced and that the obligations secured by any such extension,
renewal or replacement Lien shall be in an amount not greater than the amount
of the obligations secured by the Lien extended, renewed or replaced;

 

(xi)
          Liens in connection with Debt
permitted to be incurred pursuant to subsections (a) and (c) of this Section
5.02;

 

(xii)
         Liens in connection with Debt
incurred in the ordinary course of business in connection with workmen’s
compensation, unemployment insurance and other social security laws or
regulations;

 

(xiii)
        any attachment or judgment Lien
not in excess of $50,000,000 unless (A) enforcement proceedings shall have been
commenced by any  creditor upon such
attachment or judgment or (B) there shall be any period of 45 consecutive days
during which a stay of enforcement of such attachment or judgment, by reason of
a pending appeal or otherwise, shall not be in effect;

 

(xiv)
       other Liens securing Debt in an
aggregate principal amount not to exceed 1% of Consolidated Net Worth at any
time outstanding;

 

(xv)
        Liens arising in connection with
rights of setoff that commercial banks and other financial institutions obtain
against monies, securities or other properties of the Borrower and its
Restricted Subsidiaries in possession of or on deposit with such banks or
financial institutions, whether in general or special deposit accounts or held
for safekeeping, transmission, collection or otherwise; and

 

41

 

(xvi)        Liens on aircraft, airframes or aircraft
engines, aeronautic equipment or computers and electronic data processing
equipment.

 

(c)
          Sale and Lease-Back
Transactions.   In the case of the
Borrower and its Restricted Subsidiaries, enter into any Sale and Leaseback
Transaction unless at such time it would be permitted to enter into such Sale
and Leaseback Transaction pursuant to Section 1006 of the Debenture Indenture.

 

(d)
          Mergers, Etc.   Merge or consolidate with or into, or
convey, transfer, lease or otherwise dispose of (whether in one transaction or
in a series of transactions) all or substantially all of its assets (whether
now owned or hereafter acquired) to, any Person, or permit another Person to
merge into it, or acquire all or substantially all of the assets of any other
Person, except that (i) any Subsidiary of the Borrower may merge into the
Borrower or any other Subsidiary of the Borrower, (ii) the Borrower or any
Subsidiary of the Borrower may merge or consolidate with or into any other
Person so long as the Borrower or such Subsidiary is the surviving corporation,
and (iii) the Borrower and any of its Subsidiaries may acquire all or substantially
all of the assets of another Person; provided
that any Subsidiary that is not a Guarantor may not acquire all or
substantially all of the assets of a Guarantor unless such Subsidiary duly
executes a guaranty in favor of the Lenders in substantially the form of
Exhibit E hereto; and provided  further, in each case, that no Default
shall have occurred and be continuing at the time of such proposed transaction
or would result therefrom.

 

ARTICLE VI

 

EVENTS OF DEFAULT

 

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

 

(a)
          the Borrower shall fail to pay
(i) any principal of any Advance when the same becomes due and payable or (ii)
any interest on any Advance or any other amount payable under this Agreement or
any Note when the same becomes due and payable and such failure to pay such
interest or such other amount shall remain unremedied for three Business Days;
or

 

(b)
          any representation or warranty
made or deemed made by any Loan Party (or any of its officers) in or in
connection with any Loan Document or any Borrowing under this Agreement, or any
representation, warranty, statement or information contained in any report,
certificate, financial statement or other instrument furnished in connection
with or pursuant to any Loan Document, shall prove to have been incorrect in
any material respect when made or deemed made; or

 

(c)
          the Borrower or any of its
Subsidiaries shall fail to perform or observe (i) any term, covenant or
agreement contained in subsection (a), (d), (e), (f), (g) or (h) (other than
subsections (h)(i) through (h)(v)) of Section 5.01 or Section 5.02 or (ii) any
other term, covenant or agreement contained in any Loan Document on its part to
be performed

 

42

 

or observed if such failure
to perform such other term, covenant or agreement shall remain unremedied for
30 days after written notice thereof shall have been given to the Borrower or
such Subsidiary, as the case may be, by the Administrative Agent; or

 

(d)
          the Borrower or any of its
Subsidiaries shall fail to pay any principal of or premium or interest on any
Debt that is outstanding in a principal amount of at least $100,000,000 in the
aggregate (but excluding Debt evidenced by the Notes) of the Borrower or such
Subsidiary (as the case may be), when the same becomes due and payable (whether
at maturity, by acceleration or otherwise), and such failure shall continue
after the applicable grace period, if any, specified in the agreement or
instrument relating to such Debt; or any other event shall occur or condition
shall exist under any agreement or instrument relating to any such Debt and
shall continue after the applicable grace period, if any, specified in such
agreement or instrument, if the effect of such event or condition is to
accelerate (with or without notice or lapse of time or both), or to permit the
acceleration (with or without notice or lapse of time or both) of, the maturity
of such Debt; or

 

(e)
          the Borrower or any of its
Material Subsidiaries shall generally not pay its debts as such debts become
due, or shall admit in writing its inability to pay its debts generally, or
shall make a general assignment for the benefit of creditors; or any proceeding
shall be instituted by or against the Borrower or any of its Material
Subsidiaries seeking to adjudicate it a bankrupt or insolvent, or seeking
liquidation, winding up, reorganization, arrangement, adjustment, protection,
relief, or composition of it or its debts under any law relating to bankruptcy,
insolvency or reorganization or relief of debtors, or seeking the entry of an
order for relief or the appointment of a receiver, trustee, custodian or other
similar official for it or for any substantial part of its property and, in the
case of any such proceeding instituted against it (but not instituted by it),
either such proceeding shall remain undismissed or unstayed for a period of 60
days, or any of the actions sought in such proceeding (including, without limitation,
the entry of an order for relief against, or the appointment of a receiver,
trustee, custodian or other similar official for, it or for any substantial
part of its property) shall occur; or the Borrower or any of its Material
Subsidiaries shall take any corporate action to authorize any of the actions
set forth above in this subsection (e); or

 

(f)
           any final judgment or order for
the payment of money in excess of $50,000,000 in the aggregate shall be
rendered against the Borrower or any of its Subsidiaries or any combination
thereof and either (i) enforcement proceedings shall have been commenced by any
creditor upon such judgment or order or (ii) there shall be any period of 45
consecutive days during which a stay of enforcement of such judgment or order,
by reason of a pending appeal or otherwise, shall not be in effect; or

 

(g)
          any Change of Control shall have
occurred; or

 

(h)
          a Reportable Event or Reportable
Events, or a failure to make a required installment or other payment (within
the meaning of Section 412(n)(1) of the Internal Revenue Code), shall have
occurred with respect to any Plan or Plans that reasonably could be expected to
result in liability of the Borrower or any Subsidiary to the PBGC or

 

43

 

to a Plan in an aggregate
amount exceeding $25,000,000 and, within 30 days after the reporting of any
such Reportable Event or Reportable Events to the Administrative Agent, the
Administrative Agent shall have notified the Borrower, in writing that (i) the
Required Lenders have made a determination that, on the basis of such
Reportable Event or Reportable Events or the failure to make a required
payment, there are reasonable grounds (A) for the termination of such Plan or
Plans by the PBGC or (B) for the appointment by the appropriate United States
District Court of a trustee to administer such Plan or Plans and (ii) as a
result thereof, an Event of Default exists hereunder; or the PBGC shall have
instituted proceedings to terminate any Plan or Plans with vested unfunded
liabilities aggregating in excess of $25,000,000; or a trustee shall be
appointed by a United States District Court to administer any such Plan or
Plans and the Borrower is being requested to make a payment with respect to vested
unfunded liabilities aggregating in excess of $25,000,000; or

 

(i)
           (i)  any senior debt securities of the Borrower shall become rated
lower than BBB- (or the equivalent thereof) by S&P or lower than Baa3 (or
the equivalent thereof) by Moody’s and such ratings shall remain in effect for
a period of 90 days (it being understood that if either S&P or Moody’s (but
not both such rating agencies) shall cease to rate the senior debt securities
of the Borrower, then the occurrence of the event described in this subsection
(i)(i) shall be determined solely by reference to the rating assigned to the
senior debt securities of the Borrower by the rating agency continuing to rate
such securities) or (ii) the senior debt securities of the Borrower shall cease
to be rated by both S&P and Moody’s; or

 

(j)
           this Agreement, the Guaranty or
any other Loan Document shall for any reason cease to be, or shall be asserted
by the Borrower, any Guarantor or any other Subsidiary of the Borrower not to
be, a legal, valid and binding obligation of any party thereto (other than the
Administrative Agent or any Lender), enforceable in accordance with its terms,
except as otherwise permitted by Section 5.02(d);

 

then, and in any such event, the Administrative Agent (i) shall at the
request, or may with the consent, of the Required Lenders, by notice to the
Borrower, declare the obligation of each Lender to make Advances to be
terminated, whereupon the same shall forthwith terminate, and (ii) shall at the
request, or may with the consent, of the Required Lenders, by notice to the
Borrower, declare the Notes, all interest thereon and all other amounts payable
under this Agreement to be forthwith due and payable, whereupon the Notes, all
such interest and all such amounts shall become and be forthwith due and
payable, without presentment, demand, protest or further notice of any kind,
all of which are hereby expressly waived by the Borrower; provided, however,
that in the event of an actual or deemed entry of an order for relief with
respect to the Borrower or any of its Subsidiaries under the Federal Bankruptcy
Code, (A) the obligation of each Lender to make Advances shall automatically be
terminated and (B) the Notes, all such interest and all such amounts shall
automatically become and be due and payable, without presentment, demand,
protest or any notice of any kind, all of which are hereby expressly waived by
the Borrower.

 

44

 

ARTICLE VII

 

THE AGENTS

 

SECTION
7.01.   Authorization and Action.   Each Lender hereby appoints and authorizes
(a) the Administrative Agent to take such action as agent on its behalf and to
exercise such powers and discretion under this Agreement as are delegated to
the Administrative Agent by the terms hereof, together with such powers and
discretion as are reasonably incidental thereto, and (b) the Documentation
Agent to take such action as agent on its behalf and to exercise such powers
and discretion under this Agreement as are delegated to the Documentation Agent
by the terms hereof, together with such powers and discretion as are reasonably
incidental thereto.  As to any matters
not expressly provided for by this Agreement (including, without limitation,
enforcement or collection of the Notes), the Administrative Agent shall not be
required to exercise any discretion or take any action, but shall be required
to act or to refrain from acting (and shall be fully protected in so acting or
refraining from acting) upon the instructions of the Required Lenders, and such
instructions shall be binding upon all Lenders and all holders of Notes; provided, however,
that the Administrative Agent shall not be required to take any action that
exposes the Administrative Agent to personal liability or that is contrary to
this Agreement or applicable law.  The
Administrative Agent agrees to give to each Lender prompt notice of each notice
given to it by the Borrower or any of its Subsidiaries pursuant to the terms of
this Agreement.

 

SECTION
7.02.   The Agents’ Reliance, Etc.   Neither the Administrative Agent or the
Documentation Agent nor any of its respective directors, officers, agents or
employees shall be liable for any action taken or omitted to be taken by it or
them under or in connection with this Agreement, except for its or their own
gross negligence or willful misconduct. 
Without limitation of the generality of the foregoing, the
Administrative Agent and the Documentation Agent:  (i) may treat the payee of any Note as the holder thereof until
the Administrative Agent receives and accepts an Assignment and Acceptance
entered into by the Lender that is the payee of such Note, as assignor, and an
Eligible Assignee, as assignee, as provided in Section 8.07; (ii) may consult
with legal counsel (including counsel for the Borrower), independent public
accountants and other experts selected by it and shall not be liable for any
action taken or omitted to be taken in good faith by it in accordance with the
advice of such counsel, accountants or experts; (iii) make no warranty or representation
to any Lender and shall not be responsible to any Lender for any statements,
warranties or representations (whether written or oral) made in or in
connection with this Agreement; (iv) shall not have any duty to ascertain or to
inquire as to the performance or observance of any of the terms, covenants or
conditions of this Agreement on the part of the Borrower or any of its
Subsidiaries or to inspect the property (including the books and records) of
the Borrower or any of its Subsidiaries; (v) shall not be responsible to any
Lender for the due execution, legality, validity, enforceability, genuineness,
sufficiency or value of this Agreement or any other instrument or document
furnished pursuant hereto; and (vi) shall incur no liability under or in respect
of this Agreement by acting upon any notice, consent, certificate or other
instrument or writing (which may be by telecopier, telegram or telex) believed
by it to be genuine and signed or sent by the proper party or parties.

 

SECTION
7.03.   Citibank, B of A, Bank One
and Their Affiliates.   With respect
to its Commitment, the Advances made by it and the Note issued to it, each of
Citibank, B of A

 

45

 

and Bank One shall have the same rights and powers under this Agreement
as any other Lender and may exercise the same as though it were not the
Administrative Agent or a Co-Documentation Agent, respectively; and the term
“Lender” or “Lenders” shall, unless otherwise expressly indicated, include each
of Citibank, B of A and Bank One in its individual capacity.  Citibank, B of A, Bank One and their
Affiliates may accept deposits from, lend money to, act as trustee under
indentures of, accept investment banking engagements from and generally engage
in any kind of business with, the Borrower, any of its Subsidiaries and any
Person who may do business with or own securities of the Borrower or any such
Subsidiary, all as if Citibank, B of A, Bank One and their Affiliates were not
the Administrative Agent or a Co-Documentation Agent, respectively, and without
any duty to account therefor to the Lenders.

 

SECTION
7.04.   Lender Credit Decision.   Each Lender acknowledges that it has,
independently and without reliance upon the Administrative Agent or any other
Lender and based on the financial statements referred to in Section 4.01 and
such other documents and information as it has deemed appropriate, made its own
credit analysis and decision to enter into this Agreement.  Each Lender also acknowledges that it will,
independently and without reliance upon the Administrative Agent or any other
Lender and based on such documents and information as it shall deem appropriate
at the time, continue to make its own credit decisions in taking or not taking
action under this Agreement.

 

SECTION
7.05.   Indemnification.   The Lenders (other than the Designated
Bidders) agree to indemnify each of the Administrative Agent, the Documentation
Agent and their respective Affiliates (to the extent not reimbursed by the
Borrower), ratably according to the respective principal amounts of the
Revolving Credit Notes then held by each of them (or if no Revolving Credit
Notes are at the time outstanding or if any Revolving Credit Notes are held by
Persons that are not Lenders, ratably according to the respective amounts of
their Commitments), from and against any and all liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind or nature whatsoever that may be imposed on, incurred
by, or asserted against the Administrative Agent, the Documentation Agent or
such Affiliate in any way relating to or arising out of this Agreement or any
action taken or omitted by the Administrative Agent or the Documentation Agent
under this Agreement (collectively, the “Indemnified Costs”), provided that no Lender shall be liable
for any portion of such Indemnified Costs resulting from the Administrative
Agent’s, the Documentation Agent’s or such Affiliate’s gross negligence or
willful misconduct.  Without limitation
of the foregoing, each Lender (other than the Designated Bidders) agrees to
reimburse the Administrative Agent, the Documentation Agent and their
respective Affiliates promptly upon demand for its ratable share of any
out-of-pocket expenses (including counsel fees and disbursements) incurred by
the Administrative Agent, the Documentation Agent or such Affiliate in
connection with the preparation, execution, delivery, administration,
modification, amendment or enforcement (whether through negotiations, legal
proceedings or otherwise) of, or legal advice in respect of rights or
responsibilities under, this Agreement, to the extent that the Administrative
Agent, the Documentation Agent or such Affiliate is not reimbursed for such
expenses by the Borrower.  In the case
of any investigation, litigation or proceeding giving rise to any Indemnified
Costs, this Section 7.05 applies whether any such investigation, litigation or
proceeding is brought by the Administrative Agent, any Lender or a third party.

 

46

 

SECTION
7.06.   Successor Agents.   The Administrative Agent or the
Documentation Agent may resign at any time by giving written notice thereof to
the Lenders and the Borrower and may be removed at any time with or without
cause by the Required Lenders.  Upon any
such resignation or removal, the Required Lenders shall have the right to
appoint a successor Administrative Agent or Documentation Agent, as the case
may be, with the approval of the Borrower so long as no Event of Default
exists, such approval not to be unreasonably withheld or delayed.  If no successor Administrative Agent or
Documentation Agent, as the case may be, shall have been so appointed by the
Required Lenders, and shall have accepted such appointment, within 30 days
after the retiring Administrative Agent’s or Documentation Agent’s giving of
notice of resignation or the Required Lenders’ removal of the retiring
Administrative Agent or Documentation Agent, then the retiring Administrative
Agent or Documentation Agent may, on behalf of the Lenders, with the approval
of the Borrower, such approval not to be unreasonably withheld, appoint a
successor Administrative Agent or Documentation Agent, as the case may be,
which shall be a commercial bank organized under the laws of the United States
of America or of any State thereof and having a combined capital and surplus of
at least $500,000,000.  Upon the
acceptance of any appointment as Administrative Agent or Documentation Agent
hereunder by a successor Administrative Agent or Documentation Agent, as the
case may be, such successor Administrative Agent or Documentation Agent shall
thereupon succeed to and become vested with all the rights, powers, discretion,
privileges and duties of the retiring Administrative Agent or Documentation
Agent, and the retiring Administrative Agent or Documentation Agent shall be
discharged from its duties and obligations under this Agreement.  After any retiring Administrative Agent’s or
Documentation Agent’s resignation or removal hereunder as Administrative Agent
or Documentation Agent, the provisions of this Article VII shall inure to its
benefit as to any actions taken or omitted to be taken by it while it was
Administrative Agent or Documentation Agent under this Agreement.

 

SECTION
7.07.   Documentation Agent.   The Documentation Agent shall not have any
duty in connection with this Agreement and the other Loan Documents except as
expressly set forth herein or in the other Loan Documents.

 

ARTICLE VIII

 

MISCELLANEOUS

 

SECTION
8.01.   Amendments, Etc.   No amendment or waiver of any provision of
this Agreement or the Revolving Credit Notes, nor consent to any departure by
the Borrower therefrom, shall in any event be effective unless the same shall
be in writing and signed by the Required Lenders, and then such waiver or
consent shall be effective only in the specific instance and for the specific
purpose for which given; provided,
however, that no amendment,
waiver or consent shall, unless in writing and signed by all the Lenders (other
than the Designated Bidders), do any of the following:  (a) waive any of the conditions specified in
Section 3.01, 3.02 or 3.03, (b) except as permitted in accordance with Section
2.16, increase the Commitments of the Lenders or subject the Lenders to any
additional obligations, (c) reduce the principal of, or interest on, the
Revolving Credit Notes or any fees or other amounts payable hereunder, (d)
except as permitted in accordance with Section 2.16, postpone any date fixed
for any payment of principal of, or interest on, the Revolving Credit Notes or
any fees or other amounts payable

 

47

 

hereunder, (e) change the percentage of the Commitments or of the
aggregate unpaid principal amount of the Revolving Credit Notes, or the number
of Lenders, that shall be required for the Lenders or any of them to take any
action hereunder, (f) except as permitted in accordance with Section 5.02(d),
release any Guarantor under the Guaranty or (g) amend this Section 8.01; and provided  further
that no amendment, waiver or consent shall, unless in writing and signed by the
Administrative Agent or the Documentation Agent in addition to the Lenders
required above to take such action, affect the rights or duties of the
Administrative Agent or Documentation Agent, as the case may be, under this
Agreement or any Note.

 

SECTION
8.02.   Notices, Etc.   All notices and other communications
provided for hereunder shall be in writing (including telecopier, telegraphic
or telex communication) and mailed, telecopied, telegraphed, telexed or
delivered, if to the Borrower, at its address at 55 Glenlake Parkway, N.E.,
Atlanta, Georgia 30328, Attention: Financial Resources Department (telecopier
number (404) 828-6562); if to any Initial Lender, at its Domestic Lending
Office specified opposite its name on Schedule I hereto; if to any other
Lender, at its Domestic Lending Office specified in the Assignment and
Acceptance pursuant to which it became a Lender; if to the Administrative
Agent, at its address at Two Penns Way, Suite 200, New Castle, Delaware 19720,
Attention: Pat Dimery (telecopier number (302) 894-6120), with a copy to 400
Perimeter Center Terrace, Suite 600, Atlanta, Georgia 30346, Attention: Bruce Simmons
(telecopier number (770) 668-8137); if to B of A as Co-Documentation Agent, at
its address at 901 Main Street, 14th Floor, Dallas, Texas 75202,
Attention:  Betty Canales (telecopier
number(214) 290-8377); and if to Bank One as Co-Documentation Agent, at its
address at 1 Bank One Plaza, Chicago, Illinois 60670, Attention: Mark Gibbs
(telecopier number (312) 732-1117); or, as to the Borrower or the
Administrative Agent, at such other address as shall be designated by such
party in a written notice to the other parties and, as to each other party, at
such other address as shall be designated by such party in a written notice to
the Borrower and the Administrative Agent. 
All such notices and communications shall, when mailed, telecopied,
telegraphed or telexed, be effective when deposited in the mails, telecopied,
delivered to the telegraph company or confirmed by telex answerback,
respectively, except that notices and communications to the Administrative
Agent pursuant to Article II, III or VII shall not be effective until received
by the Administrative Agent.

 

SECTION
8.03.   No Waiver; Remedies.   No failure on the part of any Lender, the
Administrative Agent or the Documentation Agent to exercise, and no delay in
exercising, any right, power or privilege hereunder or under any Note shall
operate as a waiver thereof; nor shall any single or partial exercise of any
such right, power or privilege preclude any other or further exercise thereof
or the exercise of any other right, power or privilege.  The remedies herein provided are cumulative
and not exclusive of any remedies provided by law.

 

SECTION
8.04.   Costs and Expenses.   (a) 
The Borrower agrees to pay on demand all reasonable out-of-pocket costs
and expenses of the Administrative Agent and Citigroup Global Markets Inc. in
connection with the preparation, execution, delivery, administration,
modification and amendment of this Agreement, the Notes, each other Loan
Document and the other documents to be delivered hereunder, including, without
limitation, (i) all due diligence, syndication (including printing,
distribution and bank meetings), transportation, computer, duplication,
appraisal, consultant, and audit expenses and (ii) the reasonable fees and
expenses of counsel for the Administrative Agent with respect thereto and with
respect to

 

48

 

advising the Administrative Agent as to its rights and responsibilities
under this Agreement.  The Borrower
further agrees to pay on demand all costs and expenses of the Administrative
Agent, the Documentation Agent and the Lenders, if any (including, without
limitation, reasonable counsel fees and expenses), in connection with the
enforcement (whether through negotiations, legal proceedings or otherwise) of
this Agreement, the Notes, each other Loan Document and the other documents to
be delivered hereunder, including, without limitation, reasonable fees and
expenses of counsel for the Administrative Agent, the Documentation Agent and
each Lender in connection with the enforcement of rights under this Section
8.04(a).

 

(b)           The Borrower agrees to defend, protect, indemnify and hold
harmless the Administrative Agent, the Documentation Agent, the Arranger, each
Lender, each of their Affiliates and their officers, directors, employees,
agents and advisors (each, an “Indemnified Party”) from and against any
and all liabilities, obligations, losses (other than loss of profits), damages,
penalties, actions, judgments, suits, claims, costs, expenses and disbursements
of any kind or nature whatsoever (excluding any taxes and including, without
limitation, the reasonable fees and disbursements of counsel for such
Indemnified Party in connection with any investigative, administrative or
judicial proceeding, whether or not such Indemnified Party shall be designated
a party thereto), imposed on, incurred by, or asserted against such Indemnified
Party in any manner relating to or arising out of this Agreement, the Notes,
the other Loan Documents, any of the transactions contemplated hereby or
thereby, the Commitments, the use of proceeds, or any act, event or transaction
related or attendant thereto (collectively, the “Indemnified Matters”); provided, however,
the Borrower shall have no obligation to an Indemnified Party hereunder with
respect to Indemnified Matters directly caused by or directly resulting from
the willful misconduct or gross negligence of such Indemnified Party, as
determined by a court of competent jurisdiction.

 

(c)           If any payment of principal of, or Conversion of, any
Eurodollar Rate Advance or LIBO Rate Advance is made by the Borrower to or for
the account of a Lender other than on the last day of the Interest Period for
such Advance, as a result of a payment or Conversion pursuant to Section
2.08(c) or (d), 2.10 or 2.12, acceleration of the maturity of the Notes
pursuant to Section 6.01 or for any other reason, or by an Eligible Assignee to
a Lender other than on the last day of the Interest Period for such Advance
upon an assignment of rights and obligations under this Agreement pursuant to
Section 8.07 as a result of a demand by the Borrower pursuant to Section
8.07(a), the Borrower shall, upon demand by such Lender (with a copy of such
demand to the Administrative Agent), pay to the Administrative Agent for the
account of such Lender any amounts required to compensate such Lender for any
additional losses, costs or expenses that it may reasonably incur as a result
of such payment or Conversion, including, without limitation, any loss
(including loss of anticipated profits), cost or expense incurred by reason of
the liquidation or reemployment of deposits or other funds acquired by any
Lender to fund or maintain such Advance.

 

SECTION
8.05.   Right of Setoff.   Upon (a) the occurrence and during the
continuance of any Event of Default and (b) the making of the request or the
granting of the consent specified by Section 6.01 to authorize the
Administrative Agent to declare the Notes due and payable pursuant to the
provisions of Section 6.01, 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, but

 

49

 

excluding any accounts designated as collateral accounts securing other
Debt) at any time held and other indebtedness at any time owing by such Lender
or such Affiliate to or for the credit or the account of the Borrower against
any and all of the obligations of the Borrower now or hereafter existing under
this Agreement and the Note held by such Lender, whether or not such Lender
shall have made any demand under this Agreement or such Note and although such
obligations may be unmatured.  Each
Lender agrees promptly to notify the Borrower after any such setoff and
application, provided that the
failure to give such notice shall not affect the validity of such setoff and
application.  The rights of each Lender
and its Affiliates under this Section 8.05 are in addition to other rights and
remedies (including, without limitation, other rights of setoff) that such
Lender and its Affiliates may have.

 

SECTION
8.06.   Binding Effect.   This Agreement shall become effective
(other than Sections 2.01 and 2.03, which shall only become effective upon
satisfaction of the conditions precedent set forth in Sections 3.01 and 3.03)
when it shall have been executed by the Borrower, the Administrative Agent and
the Documentation Agent and when the Administrative Agent shall have been
notified by each Initial Lender that such Initial Lender has executed it and
thereafter shall be binding upon and inure to the benefit of the Borrower, the
Administrative Agent, the Documentation Agent and each Lender and their respective
successors and assigns, except that the Borrower shall not have the right to
assign its rights hereunder or any interest herein without the prior written
consent of the Lenders.

 

SECTION
8.07.   Assignments, Designations
and Participations.   (a)  Each Lender (other than a Designated Bidder)
may, with the consent of the Borrower, such consent not to be unreasonably
withheld or delayed, and shall, so long as no Default has occurred and is
continuing and if demanded by the Borrower (pursuant to the provisions of
Section 2.17) upon at least five Business Days’ notice to such Lender and the
Administrative Agent, assign to one or more Persons all or a portion of its
rights and obligations under this Agreement (including, without limitation, all
or a portion of its Commitment, the Revolving Credit Advances owing to it and
the Revolving Credit Note or Notes held by it); provided, however,
that:

 

(i)
           each such assignment shall be
of a constant, and not a varying, percentage of all rights and obligations under
this Agreement (other than any right to make Competitive Bid Advances,
Competitive Bid Advances owing to it or Competitive Bid Notes),

 

(ii)
          except in the case of an
assignment to a Person that, immediately prior to such assignment, was a Lender
or an assignment of all of a Lender’s rights and obligations under this
Agreement, the amount of the Commitment of the assigning Lender being assigned
pursuant to each such assignment (determined as of the date of the Assignment
and Acceptance with respect to such assignment) shall in no event be less than
$10,000,000 or an integral multiple of $1,000,000 in excess thereof,

 

(iii)          each such assignment shall be to an
Eligible Assignee,

 

(iv)          each such assignment made as a result of a demand by the
Borrower pursuant to this Section 8.07(a) shall be arranged by the Borrower at
the Borrower’s expense, shall be to an Eligible Assignee acceptable to the
Administrative Agent (which

 

50

 

acceptance shall not be
unreasonably withheld) and shall be either an assignment of all of the rights
and obligations of the assigning Lender under this Agreement or an assignment
of a portion of such rights and obligations made concurrently with another such
assignment or other such assignments that together cover all of the rights and
obligations of the assigning Lender under this Agreement,

 

(v)
          no Lender shall be obligated to
make any such assignment as a result of a demand by the Borrower pursuant to
this Section 8.07(a) unless and until such Lender shall have received one or
more payments from either the Borrower or one or more Eligible Assignees in an
aggregate amount at least equal to the aggregate outstanding principal amount
of the Advances owing to such Lender, together with accrued interest thereon to
the date of payment of such principal amount and all other amounts payable to
such Lender under this Agreement,

 

(vi)          the parties to each such assignment shall execute and
deliver to the Administrative Agent, for its acceptance and recording in the
Register, an Assignment and Acceptance, together with any Revolving Credit Note
subject to such assignment and a processing and recordation fee of $3,000,

 

(vii)         if such assignment shall be made as a
result of a demand by the Borrower pursuant to this Section 8.07(a) to an
assignee that, immediately prior to such assignment, was neither a Lender nor
an Affiliate of a Lender, an administrative fee of $3,000 shall have been paid
by the Borrower to the Administrative Agent upon its demand,

 

(viii)        notwithstanding any other provision set
forth in this Agreement, a Lender may assign to any of its Affiliates all or a
portion of its rights and obligations under this Agreement (including, without
limitation, all or a portion of its Commitment, the Revolving Credit Advances
owing to it and the Revolving Credit Note or Notes held by it) upon notice to
the Borrower and the Administrative Agent, with or without the consent of the
Borrower or the Administrative Agent (but without releasing the obligations of
the assigning Lender hereunder except with the written consent of the
Borrower), so long as such assignment is otherwise in compliance with this
Agreement, and

 

(ix)           notwithstanding any other provision set forth in this
Agreement, a Lender may assign to any assignee all or a portion of its rights
and obligations under this Agreement (including, without limitation, all or a
portion of its Commitment, the Revolving Credit Advances owing to it and the
Revolving Credit Note or Notes held by it) upon notice to the Administrative
Agent, with or without the consent of the Borrower, so long as any Event of
Default shall have occurred and be continuing.

 

Upon such execution, delivery, acceptance and recording, from and after
the effective date specified in each Assignment and Acceptance, (A) the
assignee thereunder shall be a party hereto and, to the extent that rights and
obligations hereunder have been assigned to it pursuant to such Assignment and
Acceptance, have the rights and obligations of a Lender hereunder and (B) the
Lender assignor thereunder shall, to the extent that rights and obligations
hereunder have been assigned by it pursuant to such Assignment and Acceptance,
relinquish its rights and be released from its obligations under this Agreement
(and, in the case of an Assignment and Acceptance

 

51

 

covering all or the remaining portion of an assigning Lender’s rights
and obligations under this Agreement, such Lender shall cease to be a party
hereto).

 

(b)           By executing and delivering an Assignment and Acceptance,
the Lender assignor thereunder and the assignee thereunder confirm to and agree
with each other and the other parties hereto as follows:

 

(i)
           other than as provided in such
Assignment and Acceptance, such assigning Lender makes no representation or
warranty and assumes no responsibility with respect to any statements,
warranties or representations made in or in connection with this Agreement or
any other Loan Document or the execution, legality, validity, enforceability,
genuineness, sufficiency or value of this Agreement or any other Loan Document
or any other instrument or document furnished pursuant hereto or thereto;

 

(ii)
          such assigning Lender makes no
representation or warranty and assumes no responsibility with respect to the
financial condition o f any Loan Party or the performance or observance by any
Loan Party of any of its obligations under this Agreement, any other Loan
Document or any other instrument or document furnished pursuant hereto or
thereto;

 

(iii)          such assignee confirms that it has
received a copy of this Agreement and each other Loan Document, together with
copies of the financial statements referred to in Section 4.01 and such other
documents and information as it has deemed appropriate to make its own credit
analysis and decision to enter into such Assignment and Acceptance;

 

(iv)          such assignee will, independently and without reliance upon
the Administrative Agent, the Documentation Agent, such assigning Lender or any
other Lender and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or
not taking action under this Agreement or any other Loan Document;

 

(v)           such assignee confirms that it is an Eligible Assignee;

 

(vi)          such assignee appoints and authorizes (A) the Administrative
Agent  to take such action as agent on
its behalf and to exercise such powers and discretion under this Agreement and
each other Loan Document as are delegated to the Administrative Agent by the
terms hereof and thereof, together with such powers and discretion as are
reasonably incidental thereto and (B) the Documentation Agent to take such
action as agent on its behalf and to exercise such powers and discretion under
this Agreement and each other Loan Document as are delegated to the
Documentation Agent by the terms hereof and thereof, together with such powers
and discretion as are reasonably incidental thereto; and

 

(vii)         such assignee agrees that it will perform
in accordance with their terms all of the obligations that by the terms of this
Agreement and each other Loan Document are required to be performed by it as a
Lender.

 

52

 

(c)           Upon its receipt of an Assignment and Acceptance executed
by an assigning Lender and an assignee representing that it is an Eligible
Assignee, together with any Revolving Credit Note or Notes subject to such
assignment, the Administrative Agent shall, if such Assignment and Acceptance
has been completed and is in substantially the form of Exhibit C hereto and has
been consented to by the Borrower if such consent is required, (i) accept such
Assignment and Acceptance, (ii) record the information contained therein in the
Register and (iii) give prompt notice thereof to the Borrower.  Within five Business Days after its receipt
of such notice, the Borrower, at its own expense, shall execute and deliver to
the Administrative Agent in exchange for the surrendered Revolving Credit Note
a new Note to the order of such Eligible Assignee in an amount equal to the
Commitment assumed by it pursuant to such Assignment and Acceptance and, if the
assigning Lender has retained a Commitment hereunder, a new Revolving Credit
Note to the order of the assigning Lender in an amount equal to the Commitment
retained by it hereunder.  Such new
Revolving Credit Note or Notes shall be in an aggregate principal amount equal
to the aggregate principal amount of such surrendered Revolving Credit Note or
Notes, shall be dated the effective date of such Assignment and Acceptance and
shall otherwise be in substantially the form of Exhibit A-1 hereto.

 

(d)           Each Lender (other than the Designated Bidders) may
designate one or more banks or other entities to have a right to make
Competitive Bid Advances as a Lender pursuant to Section 2.03; provided, however,
that (i) no such Lender shall be entitled to make more than five such
designations, (ii) each such Lender making one or more of such designations
shall retain the right to make Competitive Bid Advances as a Lender pursuant to
Section 2.03, (iii) each such designation shall be to a Designated Bidder and
(iv) the parties to each such designation shall execute and deliver to the
Administrative Agent, for its acceptance and recording in the Register, a
Designation Agreement.  Upon such
execution, delivery, acceptance and recording, from and after the effective
date specified in each Designation Agreement, the designee thereunder shall be
a party hereto with a right to make Competitive Bid Advances as a Lender
pursuant to Section 2.03 and the obligations related thereto.

 

(e)           By executing and delivering a Designation Agreement, the
Lender making the designation thereunder and its designee thereunder confirm
and agree with each other and the other parties hereto as follows:

 

(i)
           such Lender makes no
representation or warranty and assumes no responsibility with respect to any
statements, warranties or representations made in or in connection with this
Agreement or any other Loan Document or the execution, legality, validity,
enforceability, genuineness, sufficiency or value of this Agreement or any
other Loan Document or any other instrument or document furnished pursuant
hereto or thereto;

 

(ii)
          such Lender makes no representation
or warranty and assumes no responsibility with respect to the financial
condition of any Loan Party or the performance or observance by any Loan Party
of any of its obligations under this Agreement or any other Loan Document or
any other instrument or document furnished pursuant hereto or thereto;

 

53

 

(iii)          such designee confirms that it has
received a copy of this Agreement and each other Loan Document, together with
copies of the financial statements referred to in Section 4.01 and such other
documents and information as it has deemed appropriate to make its own credit
analysis and decision to enter into such Designation Agreement;

 

(iv)          such designee will, independently and without reliance upon the
Administrative Agent, the Documentation Agent, such designating Lender or any
other Lender and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or
not taking action under this Agreement or any other Loan Document;

 

(v)           such designee confirms that it is a Designated Bidder;

 

(vi)          such designee appoints and authorizes (A) the Administrative
Agent to take such action as agent on its behalf and to exercise such powers
and discretion under this Agreement and each other Loan Document as are
delegated to the Administrative Agent by the terms hereof and thereof, together
with such powers and discretion as are reasonably incidental thereto and (B)
the Documentation Agent to take such action as agent on its behalf and to
exercise such powers and discretion under this Agreement and each other Loan
Document as are delegated to the Documentation Agent by the terms hereof and
thereof, together with such powers and discretion as are reasonably incidental
thereto; and

 

(vii)         such designee agrees that it will
perform in accordance with their terms all of the obligations which by the
terms of this Agreement and each other Loan Document are required to be
performed by it as a Lender.

 

(f)            Upon its receipt of a Designation Agreement executed by a
designating Lender and a designee representing that it is a Designated Bidder,
the Administrative Agent shall, if such Designation Agreement has been
completed and is substantially in the form of Exhibit D hereto, (i) accept such
Designation Agreement, (ii) record the information contained therein in the
Register and (iii) give prompt notice thereof to the Borrower.

 

(g)           The Administrative Agent shall maintain at its address
referred to in Section 8.02 a copy of each Assignment and Acceptance and each
Designation Agreement delivered to and accepted by it and a register for the
recordation of the names and addresses of the Lenders and, with respect to
Lenders (other than Designated Bidders), the Commitment of, and principal
amount of the Advances owing to, each Lender from time to time (the “Register”).  The entries in the Register shall be
conclusive and binding for all purposes, absent manifest error, and the
Borrower, the Administrative Agent, the Documentation Agent and the Lenders
shall treat only the Person whose name is recorded in the Register as a Lender
hereunder for all purposes of this Agreement and each other Loan Document.  The Register shall be available for
inspection by the Borrower or any Lender at any reasonable time and from time
to time upon reasonable prior notice. 
The Administrative Agent shall be considered to act as the agent of the
Borrower in connection with its duties in respect of the Register.

 

54

 

(h)           Each Lender may sell participations to one or more banks or
other entities in or to all or a portion of its rights and obligations under
this Agreement (including, without limitation, all or a portion of its
Commitment, the Advances owing to it and the Note or Notes held by it); provided, however,
that (i) such Lender’s obligations under this Agreement (including, without
limitation, its Commitment to the Borrower hereunder) shall remain unchanged,
(ii) such Lender shall remain solely responsible to the other parties hereto
for the performance of such obligations, (iii) such Lender shall remain the
holder of any such Note for all purposes of this Agreement, (iv) the Borrower,
the Administrative Agent, the Documentation Agent and the other Lenders shall
continue to deal solely and directly with such Lender in connection with such
Lender’s rights and obligations under this Agreement and the other Loan
Documents and (v) no participant under any such participation shall have any right
to approve any amendment or waiver of any provision of this Agreement, any Note
or any other Loan Document, or any consent to any departure by the Borrower
therefrom, except to the extent that such amendment, waiver or consent would
reduce the principal of, or interest on, the Notes or any fees or other amounts
payable hereunder, in each case to the extent subject to such participation, or
postpone any date fixed for any payment of principal of, or interest on, the
Notes or any fees or other amounts payable hereunder, in each case to the
extent subject to such participation.

 

(i)            Any Lender ma y, in connection with any assignment,
designation or participation or proposed assignment, designation or
participation pursuant to this Section 8.07, disclose to the assignee, designee
or participant or proposed assignee, designee or participant, any information
relating to any Loan Party furnished to such Lender by or on behalf of the
Borrower; provided that, prior to
any such disclosure, the assignee, designee or participant or proposed
assignee, designee or participant shall agree to preserve the confidentiality
of any Confidential Information relating to any Loan Party received by it from
such Lender.

 

(j)            Notwithstanding any other provision set forth in this Agreement,
any Lender may at any time create a security interest in all or any portion of
its rights under this Agreement (including, without limitation, the Advances
owing to it and the Note or Notes held by it) in favor of any Federal Reserve
Bank in accordance with Regulation A.

 

SECTION
8.08.   Confidentiality.   None of the Administrative Agent, the
Documentation Agent, or any Lender shall disclose any Confidential Information
to any Person without the consent of the Borrower, other than (a) to the Administrative
Agent’s, the Documentation Agent’s, or such Lender’s Affiliates and their
officers, directors, employees, agents, advisors, auditors and accountants and
to actual or prospective assignees and participants, and then only on a
confidential basis, (b) as required by any law, rule or regulation or judicial
process, (c) to any rating agency when required by it, provided that, prior to any such
disclosure, such rating agency shall undertake to preserve the confidentiality
of any Confidential Information relating to the Borrower received by it from
such Lender and (d) as requested or required by any state, federal or foreign
authority or examiner regulating banks or banking.  Notwithstanding anything herein to the contrary, the Agents and
the Lenders may disclose to any and all Persons, without limitation of any
kind, the U.S. tax treatment and tax structure of the transactions contemplated
hereby and all materials of any kind (including opinions or other tax analyses)
that are provided to the Agents or any Lender relating to such U.S. tax
treatment and tax structure.

 

55

 

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

 

SECTION
8.10.   Execution in Counterparts.   This Agreement may be executed in any
number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed shall be deemed to be an original
and all of which taken together shall constitute one and the same
agreement.  Delivery of an executed
counterpart of a signature page to this Agreement by telecopier shall be
effective as delivery of a manually executed counterpart of this Agreement.

 

SECTION
8.11.   Jurisdiction, Etc.   (a) 
Each of the parties hereto hereby irrevocably and unconditionally
submits, for itself and its property, to the nonexclusive jurisdiction of any
New York State court or federal court of the United States of America sitting
in New York City, and any appellate court from any thereof, in any action or
proceeding arising out of or relating to this Agreement or any other Loan
Document to which it is a party, 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 any such New York State or, to the extent permitted by law,
in such federal court.  Each of the
parties hereto agrees that a final judgment in any such action or proceeding
shall be conclusive and may be enforced in other jurisdictions by suit on the
judgment or in any other manner provided by law.  Nothing in this Agreement shall affect any right that any party
may otherwise have to bring any action or proceeding relating to this Agreement
or any other Loan Document to which it is a party in the courts of any
jurisdiction.

 

(b)           Each of the parties hereto irrevocably and unconditionally
waives, to the fullest extent it may legally and effectively do so, any
objection that 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 to which it is a party in any New York State or federal
court.  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.

 

56

 

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

 

 

	
   

  	
  UNITED PARCEL SERVICE,
  INC., a Delaware corporation, as Borrower

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  UNITED PARCEL SERVICE,
  INC., a New York corporation, as Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  UNITED PARCEL SERVICE,
  INC., an Ohio corporation, as Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  UNITED PARCEL SERVICE CO.,
  a Delaware corporation, as Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
				

 

 

	
   

  	
  THE AGENTS

  
	
   

  	
   

  	
   

  
	
   

  	
  CITIBANK, N.A.,

  as Administrative Agent and Syndication Agent

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BANK OF AMERICA, N.A.,

  as Documentation Agent

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BANK ONE, NA

  as Documentation Agent

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CITIGROUP GLOBAL MARKETS
  INC.

  as Arranger

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
				

 

 

	
   

  	
  THE INITIAL LENDERS

  
	
   

  	
   

  	
   

  
	
   

  	
  CITIBANK, N.A., as Lender

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
				

 

 

 

	
   

  	
   

  	
  , as Lender

  
	
   

  	
  [type
  or print legal name of lender]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
					

 

 

SCHEDULE I

LIST OF APPLICABLE LENDING OFFICES

 

	
  Name of
  Lender

  	
   

  	
  Commitment

  	
   

  	
  Domestic
  Lending Office

  	
   

  	
  Eurodollar
  Lending Office

  	
   

  
	
  Citibank, N.A. 

  	
   

  	
  $125,000,000

  	
   

  	
  Citibank, N.A.

  2 Penns Way Suite 200

  New Castle, DE 19720

  Attn: Pat Dimery

  T: (302) 894-6023

  F: (302) 894-6120

  	
   

  	
  Citibank, N.A.

  2 Penns Way Suite 200

  New Castle, DE 19720

  Attn: Pat Dimery

  T: (302 894-6023

  F: (302 894-6120

  	
   

  
	
  Bank of America, N.A.

  	
   

  	
  $100,000,000

  	
   

  	
  Bank of America

  901 Main Street, 14th
  Floor

  Dallas, TX 75202

  Attn: Betty Canales

  T: (214) 209-2131

  F: (214) 290-8377

  	
   

  	
  Bank of America

  901 Main Street, 14th
  Floor

  Dallas, TX 75202

  Attn: Betty Canales

  T: (214) 209-2131

  F: (214) 290-8377

  	
   

  
	
  Bank One, NA 

  	
   

  	
  $100,000,000

  	
   

  	
  Bank One, NA

  1 Bank One Plaza

  Chicago, IL 60670

  Attn: Mark Gibbs

  T: (312) 732-7624

  F: (312) 732-1117

  	
   

  	
  Bank One, NA

  1 Bank One Plaza

  Chicago, IL 60670

  Attn: Mark Gibbs

  T: (312) 732-7624

  F: (312) 732-1117

  	
   

  
	
  ABN AMRO Bank, N.V.

  	
   

  	
  $75,000,000

  	
   

  	
  ABN AMRO Bank N.V.

  208 South LaSalle St.,
  Suite 1500

  Chicago, IL 60604-1003

  Attn: Loan Administration

  T: (312) 992-5160

  F: (312) 992-5155

  	
   

  	
  ABN AMRO Bank N.V.

  208 South LaSalle St.,
  Suite 1500

  Chicago, IL 60604-1003

  Attn: Loan Administration

  T: (312) 992-5160

  F: (312) 992-5155

  	
   

  
	
  JP Morgan Chase Bank

  	
   

  	
  $75,000,000

  	
   

  	
  JP Morgan Chase Bank

  1 Chase Manhattan Plaza

  8th Floor

  New York, NY 10081

  Attn: May Fong

  T: (212) 552-7314

  F: (212) 552-5650

  	
   

  	
  JP Morgan Chase Bank

  1 Chase Manhattan Plaza

  8th Floor

  New York, NY 10081

  Attn: May Fong

  T: (212) 552-7314

  F: (212) 552-5650

  	
   

  
	
  BNP Paribas 

  	
   

  	
  $75,000,000

  	
   

  	
  BNP Paribas

  1200 Smith Street, Suite 3100

  Houston, TX 77002

  Attn: Leah Evans-Hughes

  T: (713) 982-1126

  F: (713) 659-5305

  	
   

  	
  BNP Paribas

  1200 Smith Street, Suite
  3100

  Houston, TX 77002

  Attn: Leah Evans-Hughes

  T: (713) 982-1126

  F: (713) 659-5305

  	
   

  
	
  Mellon Bank, N.A. 

  	
   

  	
  $75,000,000

  	
   

  	
  Mellon Bank, N.A.

  One Mellon Bank Center

  Pittsburgh, PA

  15258-0001

  Attn: Daniel Lenckos

  T: (412) 234-0733

  F: (412) 236-1914

  	
   

  	
  Mellon Bank, N.A.

  One Mellon Bank Center

  Pittsburgh, PA

  15258-0001

  Attn: Daniel Lenckos

  T: (412) 234-0733

  F: (412) 236-1914

  	
   

  

 

 

	
  Name of Lender

  	
   

  	
  Commitment

  	
   

  	
  Domestic Lending Office

  	
   

  	
  Eurodollar Lending Office

  	
   

  
	
  Wells Fargo Bank, National
  Association

  	
   

  	
  $75,000,000

  	
   

  	
  Wells Fargo Bank, N.A.

  201 Third Street — 8th
  Floor

  MAC A0187-081

  San Francisco, CA 94103

  Attn: Maria Belle Garcia

  T: (415) 477-5471

  F: (415) 979-0675

  	
   

  	
  Wells Fargo Bank, N.A.

  201 Third Street — 8th
  Floor

  MAC A0187-081

  San Francisco, CA 94103

  Attn: Maria Belle Garcia

  T: (415) 477-5471

  F: (415) 979-0675

  	
   

  
	
  Barclays Bank Plc 

  	
   

  	
  $50,000,000

  	
   

  	
  Barclays Bank Plc

  222 Broadway

  New York, NY 10038

  Attn: Eddie Cotto Jr.

  T: (212) 412-3701

  F: (212) 412-5306

  	
   

  	
  Barclays Bank Plc

  222 Broadway

  New York, NY 10038

  Attn: Eddie Cotto Jr.

  T: (212) 412-3701

  F: (212) 412-5306

  	
   

  
	
  Dresdner Bank AG, New York
  and Grand Cayman Branches

  	
   

  	
  $50,000,000

  	
   

  	
  Dresdner Bank

  1301 Avenue of the
  Americas

  New York, NY 10019

  Attn: Deborah Carlson

  T: (212) 895-1763

  F: (212) 895-1766

  	
   

  	
  Dresdner Bank

  1301 Avenue of the
  Americas

  New York, NY 10019

  Attn: Deborah Carlson

  T: (212) 895-1763

  F: (212) 895-1766

  	
   

  
	
  Royal Bank of Canada 

  	
   

  	
  $50,000,000

  	
   

  	
  Royal Bank of Canada,

  New York Branch

  One Liberty Plaza, 3rd Floor

  New York, NY 10006-1404

  Attn: Manager, Loans

  Administration

  T: (212) 428-6322

  F: (212) 428-2372

  	
   

  	
  Royal Bank of Canada,

  New York Branch

  One Liberty Plaza, 3rd
  Floor

  New York, NY 10006-1404

  Attn: Manager, Loans

  Administration

  T: (212) 428-6322

  F: (212) 428-2372

  	
   

  
	
  Standard Chartered Bank

  	
   

  	
  $50,000,000

  	
   

  	
  Standard Chartered Bank

  1 Madison Avenue

  Third Floor

  New York, NY 10010-3603

  Attn: Vijayant Jain

  T: (212) 667-0499

  F: (212) 667-0251

  	
   

  	
  Standard Chartered Bank

  1 Madison Avenue

  Third Floor

  New York, NY 10010-3603

  Attn: Vijayant Jain

  T: (212) 667-0499

  F: (212) 667-0251

  	
   

  
	
  Credit Suisse First
  Boston, acting through its Cayman Islands branch

  	
   

  	
  $25,000,000

  	
   

  	
  Credit Suisse First Boston

  11 Madison Avenue

  New York, NY 10010-3629

  Attn: Sonya Shillingford

  T: (212) 538-3361

  F: (212) 538-6851

  	
   

  	
  Credit Suisse First Boston

  11 Madison Avenue

  New York, NY 10010-3629

  Attn: Sonya Shillingford

  T: (212) 538-3361

  F: (212) 538-6851

  	
   

  
	
  Merrill Lynch Bank USA

  	
   

  	
  $25,000,000

  	
   

  	
  Merrill Lynch Bank USA

  15 W. South Temple, Suite
  300

  Salt Lake City, UT 84101

  Attn: Butch Alder

  T: (801) 526-8324

  F: (801) 531-7470

  	
   

  	
  Merrill Lynch Bank USA

  15 W. South Temple, Suite
  300

  Salt Lake City, UT 84101

  Attn: Butch Alder

  T: (801) 526-8324

  F: (801) 531-7470

  	
   

  
	
  UBS AG, Stamford Branch

  	
   

  	
  $25,000,000

  	
   

  	
  UBS AG, Stamford Branch

  677 Washington Blvd.

  Stamford, CT 06901

  Attn: Vladimira Holeckova

  T: (203) 719-6403

  F: (203) 719-3888

  	
   

  	
  UBS AG, Stamford Branch

  677 Washington Blvd.

  Stamford, CT 06901

  Attn: Vladimira Holeckova

  T: (203) 719-6403

  F: (203) 719-3888

  	
   

  

 

 

	
  Name of Lender

  	
   

  	
  Commitment

  	
   

  	
  Domestic Lending Office

  	
   

  	
  Eurodollar Lending Office

  	
   

  
	
  State Street Bank and
  Trust Company

  	
   

  	
  $25,000,000

  	
   

  	
  State Street Bank and
  Trust

  Company

  2 Avenue De Lafayette

  Boston, MA 02111

  Attn: Ms. C. Jaynelle Landy

  T: (617) 662-3677

  F: (617) 662-4201

  	
   

  	
  State Street Bank and Trust

  Company

  2 Avenue De Lafayette

  Boston, MA 02111

  Attn: Ms. C. Jaynelle
  Landy

  (617) 662-3677

  F: (617) 662-4201

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
  TOTAL OF

  COMMITMENTS

  	
   

  	
  $1,000,000,000Exhibit 10.b

 

U.S.
$1,000,000,000

 

CREDIT AGREEMENT

 

(Five-Year
Facility)

 

Dated
as of April 24, 2003

 

Among

 

UNITED PARCEL SERVICE, INC.

 

as  Borrower

 

and

 

THE INITIAL LENDERS NAMED HEREIN

 

as  Initial
Lenders

 

and

 

CITIGROUP GLOBAL MARKETS INC.

 

as  Arranger

 

and

 

BANK OF AMERICA, N.A.

 

and

 

BANK ONE, NA

 

as  Co-Documentation
Agents

 

and

 

CITIBANK, N.A.

 

as  Administrative
Agent and Syndication Agent

 

 

TABLE OF CONTENTS

 

	
  ARTICLE I

  	
   

  
	
   

  	
   

  
	
  DEFINITIONS
  AND ACCOUNTING TERMS

  	
   

  
	
   

  	
   

  
	
  SECTION
  1.01. Certain Defined Terms

  	
   

  
	
  SECTION
  1.02. Computation of Time Periods

  	
   

  
	
  SECTION
  1.03. Accounting Terms

  	
   

  
	
   

  	
   

  
	
  ARTICLE II

  	
   

  
	
   

  	
   

  
	
  AMOUNTS
  AND TERMS OF THE ADVANCES

  	
   

  
	
   

  	
   

  
	
  SECTION
  2.01. The Revolving Credit Advances

  	
   

  
	
  SECTION
  2.02. Making the Revolving Credit Advances

  	
   

  
	
  SECTION
  2.03. The Competitive Bid Advances

  	
   

  
	
  SECTION
  2.04. Fees

  	
   

  
	
  SECTION
  2.05. Termination or Reduction of the Commitments

  	
   

  
	
  SECTION
  2.06. Repayment of Revolving Credit Advances

  	
   

  
	
  SECTION
  2.07. Interest on Revolving Credit Advances

  	
   

  
	
  SECTION
  2.08. Interest Rate Determination

  	
   

  
	
  SECTION
  2.09. Optional Conversion of Revolving Credit Advances

  	
   

  
	
  SECTION
  2.10. Optional Prepayments of Advances

  	
   

  
	
  SECTION
  2.11. Increased Costs

  	
   

  
	
  SECTION
  2.12. Illegality

  	
   

  
	
  SECTION
  2.13. Payments and Computations

  	
   

  
	
  SECTION
  2.14. Taxes

  	
   

  
	
  SECTION
  2.15. Sharing of Payments, Etc

  	
   

  
	
  SECTION
  2.16. Extensions of Termination Date

  	
   

  
	
  SECTION
  2.17. Substitution of Lender

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  III

  	
   

  
	
   

  	
   

  
	
  CONDITIONS
  TO EFFECTIVENESS AND LENDING

  	
   

  
	
   

  	
   

  
	
  SECTION
  3.01. Conditions Precedent to Effectiveness of Sections 2.01 and 2.03

  	
   

  
	
  SECTION
  3.02. Conditions Precedent to Each Revolving Credit Borrowing

  	
   

  
	
  SECTION
  3.03. Conditions Precedent to Each Competitive Bid Borrowing

  	
   

  
	
  SECTION
  3.04. Determinations Under Section 3.01

  	
   

  
	
  SECTION
  3.05. Labor Dispute

  	
   

  
	
   

  	
   

  
	
  ARTICLE IV

  	
   

  
	
   

  	
   

  
	
  REPRESENTATIONS
  AND WARRANTIES

  	
   

  
	
   

  	
   

  
	
  SECTION
  4.01. Representations and Warranties of the Borrower

  	
   

  

 

 

 

	
  ARTICLE V

  	
   

  
	
   

  	
   

  
	
  COVENANTS OF THE
  BORROWER

  	
   

  
	
   

  	
   

  
	
  SECTION
  5.01. Affirmative Covenants

  	
   

  
	
  SECTION
  5.02. Negative Covenants

  	
   

  
	
   

  	
   

  
	
  ARTICLE VI

  	
   

  
	
   

  	
   

  
	
  EVENTS OF DEFAULT

  	
   

  
	
   

  	
   

  
	
  SECTION
  6.01. Events of Default

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  VII

  	
   

  
	
   

  	
   

  
	
  THE
  AGENTS

  	
   

  
	
   

  	
   

  
	
  SECTION
  7.01. Authorization and Action

  	
   

  
	
  SECTION
  7.02. Administrative Agent’s Reliance, Etc

  	
   

  
	
  SECTION
  7.03. Citibank, B of A, Bank One and Their Affiliates

  	
   

  
	
  SECTION
  7.04. Lender Credit Decision

  	
   

  
	
  SECTION
  7.05. Indemnification

  	
   

  
	
  SECTION
  7.06. Successor Agents

  	
   

  
	
  SECTION
  7.07. Documentation Agent

  	
   

  
	
   

  	
   

  
	
  ARTICLE VIII

  	
   

  
	
   

  	
   

  
	
  MISCELLANEOUS

  	
   

  
	
   

  	
   

  
	
  SECTION
  8.01. Amendments, Etc

  	
   

  
	
  SECTION
  8.02. Notices, Etc

  	
   

  
	
  SECTION
  8.03. No Waiver; Remedies

  	
   

  
	
  SECTION
  8.04. Costs and Expenses

  	
   

  
	
  SECTION
  8.05. Right of Setoff

  	
   

  
	
  SECTION
  8.06. Binding Effect

  	
   

  
	
  SECTION
  8.07. Assignments, Designations and Participations

  	
   

  
	
  SECTION
  8.08. Confidentiality

  	
   

  
	
  SECTION
  8.09. Governing Law

  	
   

  
	
  SECTION
  8.10. Execution in Counterparts

  	
   

  
	
  SECTION
  8.11. Jurisdiction, Etc

  	
   

  
	
   

  	
   

  
	
  SCHEDULE

  	
   

  
	
   

  	
   

  
	
  Schedule I —
  Applicable Lending Offices

  	
   

  

 

ii

 

EXHIBITS

 

	
  Exhibit A-1 —

  	
  Form of Revolving Credit Note

  
	
  Exhibit A-2 —

  	
  Form of Competitive Bid Note

  
	
  Exhibit B-1 —

  	
  Form of Notice of Revolving Credit Borrowing

  
	
  Exhibit B-2 —

  	
  Form of Notice of Competitive Bid Borrowing

  
	
  Exhibit C —

  	
  Form of Assignment and Acceptance

  
	
  Exhibit D —

  	
  Form of Designation Agreement

  
	
  Exhibit E —

  	
  Form of Guaranty

  
	
  Exhibit F —

  	
  Form of Indemnity Agreement

  
	
  Exhibit G —

  	
  Form of Opinion of Counsel for the Borrower

  
	
  Exhibit H —

  	
  Debenture Indenture

  
	
   

  	
   

  

 

iii

 

CREDIT
AGREEMENT

 

(Five-Year
Facility)

 

Dated
as of April 24, 2003

 

UNITED PARCEL SERVICE, INC.,
a Delaware corporation (the “Borrower”), the banks, financial
institutions and other institutional lenders (collectively, the “Initial
Lenders”) listed on the signature pages hereof, Citibank, N.A. (“Citibank”),
as administrative agent (in such capacity, the “Administrative Agent”)
and as syndication agent (in such capacity, the “Syndication Agent”) for
the Lenders (as hereinafter defined), Bank of America, N.A. (“B of A”),
and Bank One, NA (“Bank One”), as co-documentation agents (in such
capacity, the “Co-Documentation Agents”) for such Lenders, and Citigroup
Global Markets Inc., as sole arranger and book manager (in such capacity, the “Arranger”)
under the Loan Documents (as hereinafter defined), agree as follows:

ARTICLE I

 

DEFINITIONS
AND ACCOUNTING TERMS

 

SECTION 1.01.  Certain Defined Terms.

As used in this Agreement,
the following terms shall have the following meanings (such meanings to be
equally applicable to both the singular and plural forms of the terms defined):

“Administrative Agent” has the meaning
specified in the recital of parties to this Agreement.

“Administrative Agent’s Account” means the
account of the Administrative Agent maintained by the Administrative Agent at
Citibank with its office at 399 Park Avenue, New York, New York 10043, Account
No. 36852248, Attention:  Lee Tang.

“Advance” means a Revolving Credit Advance or
a Competitive Bid Advance, as the context may require.

“Affiliate” means, as to any Person, any
other Person that, directly or indirectly, controls, is controlled by or is
under common control with such Person; provided, however, that Overseas
Partners shall not be deemed to be an Affiliate of the Borrower.

“Agent” means the Administrative Agent or the
Documentation Agent, as the context may require.

“Applicable Fee
Percentage” means, as of any date, a percentage per annum determined by
reference to the Public Debt Rating in effect on such date as set forth below:

 

 

 

	
  Level 1

  AA- / Aa3 or above

  	
   

  	
  0.050%

  	
   

  
	
  Level 2

  Lower than Level 1  but at
  least

  A- / A3

  	
   

  	
  0.075%

  	
   

  
	
  Level 3

  Lower than Level 2

  	
   

  	
  0.100%

  	
   

  

 

“Applicable Lending
Office” means, with respect to each Lender, such Lender’s Domestic Lending
Office in the case of a Base Rate Advance and such Lender’s Eurodollar Lending
Office in the case of a Eurodollar Rate Advance and, in the case of a
Competitive Bid Advance, the office of such Lender notified by such Lender to
the Administrative Agent and the Borrower as its Applicable Lending Office with
respect to such Competitive Bid Advance.

“Applicable Margin”
means, as of any date, a percentage per annum determined by reference to the
Public Debt Rating in effect on such date as set forth below:

 

	
  Public Debt Rating

  S&P/Moody’s

  	
   

  	
  Applicable
  Margin for

  Base Rate

  Advances

  	
   

  	
  Applicable
  Margin

  for

  Eurodollar
  Rate

  Advances

  	
   

  
	
  Level 1

  AA- / Aa3 or above

  	
   

  	
  0.00

  	
  %

  	
  0.100

  	
  %

  
	
  Level 2

  Lower than Level 1 but at least A- / A3

  	
   

  	
  0.00

  	
  %

  	
  0.175

  	
  %

  
	
  Level 3

  Lower than Level 2

  	
   

  	
  0.00

  	
  %

  	
  0.200

  	
  %

  

 

provided,
however, that if as of any date of determination the aggregate principal
amount of Advances outstanding exceeds 33% of the aggregate Commitments, the
Applicable Margin for such date shall be the percentage per annum determined by
reference to the Public Debt Rating in effect on such date as set forth above
plus 0.05%.

“Arranger”
has the meaning specified in the recital of parties to this Agreement.

“Assignment and
Acceptance” means an assignment and acceptance entered into by a Lender and
an Eligible Assignee, and accepted by the Administrative Agent, in
substantially the form of Exhibit C hereto.

“Attributable
Debt” has the meaning specified in the Debenture Indenture.

“B of A” has the
meaning specified in the recital of the parties to this Agreement.

 

2

 

“Bank One” has the
meaning specified in the recital of the parties to this Agreement.

“Base Rate” means a
fluctuating interest rate per annum in effect from time to time, which rate per
annum shall at all times be equal to the highest of:

(a)           the rate of interest announced publicly by Citibank in New
York, New York, from time to time, as Citibank’s prime rate;

(b)           the sum (adjusted to the nearest 1/16 of 1% or, if there is
no nearest 1/16 of 1%, to the next higher 1/16 of 1%) of (i) 1/2 of 1% per
annum plus (ii) the rate obtained by dividing (A) the latest three-week moving
average of secondary market morning offering rates in the United States for
three-month certificates of deposit of major United States money market banks,
such three-week moving average (adjusted to the basis of a year of 360 days)
being determined weekly on each Monday (or, if such day is not a Business Day,
on the next succeeding Business Day) for the three-week period ending on the
previous Friday by Citibank on the basis of such rates reported by certificate
of deposit dealers to and published by the Federal Reserve Bank of New York or,
if such publication shall be suspended or terminated, on the basis of
quotations for such rates received by Citibank from three New York certificate
of deposit dealers of recognized standing selected by Citibank, by (B) a
percentage equal to 100% minus the average of the daily percentages specified
during such three-week period by the Board of Governors of the Federal Reserve
System (or any successor) for determining the maximum reserve requirement
(including, but not limited to, any emergency, supplemental or other marginal
reserve requirement) for Citibank with respect to liabilities consisting of or
including (among other liabilities) three-month Dollar nonpersonal time
deposits in the United States, plus (iii) the average during such three-week
period of the annual assessment rates estimated by Citibank for determining the
then current annual assessment payable by Citibank to the Federal Deposit
Insurance Corporation (or any successor) for insuring Dollar deposits of
Citibank in the United States; and

(c)           1/2
of 1% per annum above the Federal Funds Rate.

“Base Rate Advance”
means a Revolving Credit Advance that bears interest as provided in Section
2.07(a)(i).

“Beneficial Ownership”
means beneficial ownership as determined in accordance with Rule 13d-3 of the
Securities and Exchange Commission under the Exchange Act, as in effect on the
date hereof.

“Borrower”
has the meaning specified in the recital of parties to this Agreement.

“Borrower’s Account”
means the account of the Borrower designated in writing by the Borrower to the
Administrative Agent from time to time.

 

3

 

“Borrowing” means a
Revolving Credit Borrowing or a Competitive Bid Borrowing, as the context may
require.

“Business Day” means
a day of the year (other than a Saturday or a Sunday) on which banks are not
required or authorized by law to close in New York City and, if the applicable
Business Day relates to any Eurodollar Rate Advances or LIBO Rate Advances, on
which dealings are carried on in the London interbank market.

“Capital Lease
Obligations” of any Person means all 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.

“Change
of Control” means the occurrence of any of the following:

(a)           any Person or two or more Persons acting in concert other
than a Permitted Person shall have acquired Beneficial Ownership, directly or
indirectly, through a purchase, merger or other transaction or series of
transactions or otherwise, of (i) 10% or more of the shares of common stock of
the Borrower or (ii) Voting Stock of the Borrower to which 10% or more of the
total Voting Power of the Borrower is attributable; or

(b)           Permitted Persons shall not have Beneficial Ownership of
(i) 75% or more of the shares of common stock of the Borrower or (ii) Voting
Stock of the Borrower to which 75% or more of the total Voting Power of the
Borrower is attributable.

“Citibank”
has the meaning specified in the recital of parties to this Agreement.

“Co-Documentation Agents”
has the meaning specified in the recital of parties to this Agreement.

“Commitment”
has the meaning specified in Section 2.01.

“Competitive Bid Advance”
means an advance by a Lender to the Borrower as part of a Competitive Bid
Borrowing resulting from the auction bidding procedure described in Section
2.03 and refers to a Fixed Rate Advance or a LIBO Rate Advance, as the context
may require.

“Competitive Bid
Borrowing” means a borrowing consisting of simultaneous Competitive Bid
Advances from each of the Lenders whose offer to make one or more Competitive
Bid Advances as part of such borrowing has been accepted by the Borrower under
the auction bidding procedure described in Section 2.03.

“Competitive Bid Note”
means a promissory note of the Borrower payable to the order of any Lender, in
substantially the form of Exhibit A-2 hereto, evidencing the

 

4

 

indebtedness of the Borrower
to such Lender resulting from a Competitive Bid Advance made by such Lender.

“Competitive
Bid Reduction” has the meaning specified in Section 2.01.

“Confidential Information”
means information that the Borrower furnishes to an Agent or any Lender in a
writing designated as confidential, but does not include any such information
that is or becomes generally available to the public or that is or becomes
available to an Agent or such Lender from a source other than the Borrower
(unless such Agent or such Lender knows that such information is not generally
available to the public).

“Consolidated”
refers to the consolidation of accounts in accordance with GAAP.

“Consolidated Net
Tangible Assets” has the meaning specified in the Debenture Indenture.

“Consolidated Net Worth”
means the shareholders’ equity of the Borrower and its Subsidiaries, computed
in accordance with GAAP.

“Convert”, “Conversion”
and “Converted” each refers to a conversion of Revolving Credit Advances
of one Type into Revolving Credit Advances of the other Type pursuant to
Section 2.08 or 2.09.

“Debenture Indenture”
means the Indenture, dated as of December 1, 1989, between United Parcel
Service of America, Inc. and Chemical Bank pursuant to which the 8-3/8%
Debentures Due April 1, 2020 were issued, as in effect on the date of this
Agreement (without giving effect to any amendment, supplement or other
modification thereto, any repayment or covenant defeasance thereunder or any
termination thereof), a copy of which is attached as Exhibit H hereto.

“Debt” of any Person
means, without duplication, (a) all obligations of such Person for borrowed
money, or with respect to deposits with or advances of any kind to such Person,
(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 or
assets purchased by such Person, (e) all obligations of such Person issued or
assumed as the deferred purchase price of property or services, (f) all Debt of
others secured by (or for which the holder of such Debt has an existing right,
contingent or otherwise, to be secured by) any Lien on property or assets owned
or acquired by such Person (other than Non-Recourse Debt), (g) all Guarantees
by such Person of Debt of others, (h) all Capital Lease Obligations of such
Person, (i) all obligations of such Person in respect of Hedge Agreements;
provided, however, that at any given time the term “obligations” as used in
this clause (i) shall only include the net amounts due and payable at such time
under any such agreements or arrangements and (j) all obligations of such
Person as an account party in respect of letters of credit and bankers’
acceptances.  The Debt of any Person
shall include the Debt of any partnership in which such Person is a general
partner.

 

5

 

“Declining
Lender” has the meaning specified in Section 2.16.

“Default” means any
Event of Default or any event that would constitute an Event of Default but for
the requirement that notice be given or time elapse or both.

“Designated Bidder”
means (a) an Eligible Assignee or (b) a special purpose corporation that is
engaged in making, purchasing or otherwise investing in commercial loans in the
ordinary course of its business and that issues (or the parent of which issues)
commercial paper rated at least “Prime-1” (or the then equivalent grade) by
Moody’s or “A-1” (or the then equivalent grade) by S&P that, in either
case, (i) is organized under the laws of the United States or any state thereof
or the District of Columbia, (ii) shall have become a party to this Agreement
pursuant to Section 8.07(d), (e) and (f) and (iii) is not otherwise a Lender.

“Designation Agreement”
means a designation agreement entered into by a Lender (other than a Designated
Bidder) and a Designated Bidder, and accepted by the Administrative Agent, in
substantially the form of Exhibit D hereto.

“Documentation
Agent” means the Co-Documentation Agents.

“Dollars”
and the sign “$” mean lawful currency of the United States of America.

“Domestic Lending Office”
means, with respect to any Lender, the office of such Lender specified as its “Domestic
Lending Office” opposite its name on Schedule I hereto or in the Assignment and
Acceptance pursuant to which it became a Lender, or such other office of such
Lender as such Lender may from time to time specify to the Borrower and the
Administrative Agent.

“Effective
Date” has the meaning specified in Section 3.01.

“Eligible Assignee”
means (i) a Lender; (ii) an Affiliate of a Lender that is otherwise an Eligible
Assignee; (iii) a commercial bank organized under the laws of the United
States, or any state thereof, and having total assets in excess of
$1,000,000,000, calculated in accordance with the accounting principles
prescribed by the regulatory authority applicable to such bank in its
jurisdiction of organization; (iv) a commercial bank organized under the laws
of any other country that is a member of the OECD, or a political subdivision
of any such country, and having total assets in excess of $1,000,000,000,
calculated in accordance with the accounting principles prescribed by the
regulatory authority applicable to such bank in its jurisdiction of
organization, so long as such bank is acting through a branch or agency located
in the country in which it is organized or another country that is described in
this clause (iv); (v) the central bank of any country that is a member of the
OECD; (vi) a finance company, insurance company or other financial institution
or fund (whether a corporation, partnership, trust or other entity) organized
under the laws of the United States, or any state thereof, that is engaged in
making, purchasing or otherwise investing in commercial loans in the ordinary
course of its business and having total assets in excess of $1,000,000,000,
calculated in accordance with the accounting principles prescribed by the
regulatory authority applicable to such entity in its jurisdiction of
organization; provided, however,
that

 

6

 

neither the Borrower nor an
Affiliate of the Borrower shall qualify as an Eligible Assignee.

“ERISA” means the
Employee Retirement Income Security Act of 1974, as amended from time to time,
and the regulations promulgated and rulings issued thereunder.

“ERISA Affiliate”
means any trade or business (whether or not incorporated) that is a member of a
group of which the Borrower is a member and which is treated as a single
employer under Section 414 of the Internal Revenue Code.

“Eurocurrency
Liabilities” has the meaning assigned to that term in Regulation D.

“Eurodollar Lending
Office” means, with respect to any Lender, the office of such Lender
specified as its “Eurodollar Lending Office” opposite its name on Schedule I
hereto or in the Assignment and Acceptance pursuant to which it became a Lender
(or, if no such office is specified, its Domestic Lending Office), or such
other office of such Lender as such Lender may from time to time specify to the
Borrower and the Administrative Agent.

“Eurodollar Rate”
means, for any Interest Period for each Eurodollar Rate Advance comprising part
of the same Revolving Credit Borrowing, an interest rate per annum equal to the
rate per annum obtained by dividing (a) the average (rounded upward to the
nearest whole multiple of 1/16 of 1% per annum, if such average is not such a
multiple) of the rate per annum at which deposits in Dollars are offered by the
principal office of each of the Reference Banks in London, England to prime
banks in the London interbank market at 11:00 A.M. (London time) two Business
Days before the first day of such Interest Period in an amount substantially
equal to such Reference Bank’s Eurodollar Rate Advance comprising part of such
Revolving Credit Borrowing to be outstanding during such Interest Period and
for a period equal to such Interest Period by (b) a percentage equal to 100%
minus the Eurodollar Rate Reserve Percentage for such Interest Period.  The Eurodollar Rate for any Interest Period
for each Eurodollar Rate Advance comprising part of the same Revolving Credit
Borrowing shall be determined by the Administrative Agent on the basis of
applicable rates furnished to and received by the Administrative Agent from the
Reference Banks two Business Days before the first day of such Interest Period,
subject, however, to the
provisions of Section 2.08(e).

“Eurodollar Rate Advance”
means a Revolving Credit Advance that bears interest as provided in Section
2.07(a)(ii).

“Eurodollar Rate Reserve
Percentage” means, for any Interest Period for all Eurodollar Rate Advances
or LIBO Rate Advances comprising part of the same Borrowing, the reserve
percentage applicable two Business Days before the first day of such Interest
Period under regulations issued from time to time by the Board of Governors of
the Federal Reserve System (or any successor) for determining the maximum
reserve requirement (including, without limitation, any emergency, supplemental
or other marginal reserve requirement) for a member bank of the Federal

 

7

 

Reserve System in New York
City with respect to liabilities or assets consisting of or including
Eurocurrency Liabilities (or with respect to any other category of liabilities
that includes deposits by reference to which the interest rate on Eurodollar
Rate Advances or LIBO Rate Advances is determined) having a term equal to such
Interest Period.

“Event
of Default” has the meaning specified in Section 6.01.

“Exchange Act” means
the Securities Exchange Act of 1934, as amended from time to time, and the
regulations promulgated and rulings issued thereunder.

“Existing Credit
Facilities” means the credit facilities provided pursuant to (a) the Sixth
Amended and Restated Credit Agreement (364-Day Facility), dated as of April 25,
2002, as amended, supplemented or otherwise modified from time to time prior to
the date hereof, among United Parcel Service, Inc., a Delaware corporation, the
banks, financial institutions and other institutional lenders parties thereto,
Citibank, as administrative agent and syndication agent, Bank of America, N.A.
and Bank One, NA as co-documentation agents, and Salomon Smith Barney Inc., as
arranger thereunder and (b) the Third Amended and Restated Credit Agreement
(Five-year Facility) dated as of April 26, 2001, among United Parcel Service,
Inc., a Delaware corporation, the banks, financial institutions and other
institutional lenders parties thereto, Citibank, as administrative agent and
syndication agent, and Salomon Smith Barney Inc. and Banc of America Securities
LLC, as co-arrangers, and Bank of America, N.A. as documentation agent
thereunder.

“Extending
Lender” has the meaning specified in Section 2.16.

“Federal Funds Rate”
means, for any period, a fluctuating interest rate per annum equal for each day
during such period to the weighted average of the rates on overnight federal
funds transactions with members of the Federal Reserve System arranged by
federal funds brokers, as published for such day (or, if such day is not a
Business Day, for the next preceding 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 of the quotations for such day on such transactions received
by the Administrative Agent from three federal funds brokers of recognized
standing selected by it.

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

“Fiscal Year” means,
with respect to any Person, the period commencing on January 1 and ending on
December 31 of any calendar year.

“Fixed
Rate Advances” has the meaning specified in Section 2.03(a)(i).

“GAAP”
has the meaning specified in Section 1.03.

“Governmental Authority”
means any federal, state, local or foreign court or governmental agency,
authority, instrumentality or regulatory body.

 

8

 

“Guarantee” of or by
any Person means any obligation, contingent or otherwise, of such Person
guaranteeing or having the economic effect of guaranteeing any Debt of any
other Person (the “primary obligor”) in any manner, whether directly or
indirectly, and including, without limitation, any obligation of such Person,
direct or indirect, (a) to purchase or pay (or advance or supply funds for the
purchase or payment of) such Debt or to purchase (or to advance or supply funds
for the purchase of) any security for the payment of such Debt, (b) to purchase
property, securities or services for the purpose of assuring the owner of such
debt of the payment of such Debt or (c) to maintain working capital, equity
capital or other financial statement condition or liquidity of the primary
obligor so as to enable the primary obligor to pay such Debt; provided, however, that the term
“Guarantee” shall not include endorsements for collection or deposit, in either
case in the ordinary course of business.

“Guarantor”
means each of UPSCO, UPSNY and UPSO.

“Guaranty”
has the meaning specified in Section 3.01(e)(ii).

“Hedge Agreements”
means interest rate swap, cap or collar agreements, interest rate future or
option contracts, currency swap agreements, currency future or option contracts
and other similar agreements.

“Incurrence”
has the meaning specified in Section 5.02(a).

“Indemnified
Party” has the meaning specified in Section 8.04(b).

“Indemnified
Matters” has the meaning specified in Section 8.04(b).

“Indemnity
Agreement” has the meaning specified in Section 3.01(e)(iii).

“Initial
Lender” has the meaning specified in the recital of parties to this
Agreement.

“Interest Period”
means, for each Eurodollar Rate Advance comprising part of the same Revolving
Credit Borrowing and each LIBO Rate Advance comprising part of the same
Competitive Bid Borrowing, the period commencing on the date of such Eurodollar
Rate Advance or LIBO Rate Advance or the date of the Conversion of any Base
Rate Advance into such Eurodollar Rate Advance and ending on the last day of
the period selected by the Borrower pursuant to the provisions below and,
thereafter, each subsequent period commencing on the last day of the
immediately preceding Interest Period and ending on the last day of the period
selected by the Borrower pursuant to the provisions below.  The duration of each such Interest Period
shall be (a) in the case of Eurodollar Rate Advances, one, two, three or six
months, as the Borrower may, upon notice received by the Administrative Agent
not later than 11:00 A.M. (New York City time) on the third Business Day prior
to the first day of such Interest Period, select and (b) in the case of LIBO
Rate Advances, a minimum of seven days; provided,
however, that:

 

9

 

(i)            the Borrower may not select any Interest Period that ends
after the Termination Date;

(ii)           Interest Periods commencing on the same date for Eurodollar
Rate Advances comprising part of the same Revolving Credit Borrowing or for
LIBO Rate Advances comprising part of the same Competitive Bid Borrowing shall
be of the same duration;

(iii)          whenever
the last day of any Interest Period would otherwise occur on a day other than a
Business Day, the last day of such Interest Period shall be extended to occur
on the next succeeding Business Day, provided, however, that, if such extension
would cause the last day of such Interest Period to occur in the next following
calendar month, the last day of such Interest Period shall occur on the next
preceding Business Day; and

(iv)          whenever
the first day of (A) any Interest Period in respect of Eurodollar Rate Advances
or (B) any Interest Period in respect of LIBO Rate Advances the durations of
which are one, two, three or six months, occurs on a day of an initial calendar
month for which there is no numerically corresponding day in the calendar month
that succeeds such initial calendar month by the number of months equal to the
number of months in such Interest Period, such Interest Period shall end on the
last Business Day of such succeeding calendar month.

“Internal Revenue Code”
means the Internal Revenue Code of 1986, as amended from time to time, and the
regulations promulgated and rulings issued thereunder.

“Lenders” means the
Initial Lenders and each Person that shall become a party hereto pursuant to
Section 8.07(a), (b) and (c) and, except when used in reference to a Revolving
Credit Advance, a Revolving Credit Borrowing, a Revolving Credit Note, a
Commitment or a related term, each Designated Bidder.

“LIBO Rate” means,
for any Interest Period for all LIBO Rate Advances comprising part of the same
Competitive Bid Borrowing, an interest rate per annum equal to the rate per
annum obtained by dividing (a) the average (rounded upward to the nearest whole
multiple of 1/16 of 1% per annum, if such average is not such a multiple)
of  the rate per annum at which deposits
in Dollars are offered to the principal office of each of the Reference Banks
in London, England by prime banks in the London interbank market at 11:00 A.M.
(London time) two Business Days before the first day of such Interest Period in
an amount substantially equal to the amount that would be the Reference Banks’
respective ratable shares of such Borrowing if such Borrowing were to be a
Revolving Credit Borrowing to be outstanding during such Interest Period and
for a period equal to such Interest Period by (b) a percentage equal to 100%
minus the Eurodollar Rate Reserve Percentage for such Interest Period.  The LIBO Rate for any Interest Period for
each LIBO Rate Advance comprising part of the same Competitive Bid Borrowing
shall be determined by the Administrative Agent on the basis of applicable
rates furnished to and received by the Administrative Agent from the Reference
Banks two Business Days

 

 

10

 

before the first day of such
Interest Period, subject, however, to the provisions of Section 2.08.

“LIBO
Rate Advances” has the meaning specified in Section 2.03(a)(i).

“Lien” means any
lien, security interest or other charge or encumbrance of any kind, including,
without limitation, the lien or retained security title of a conditional vendor
and any easement, right of way or other encumbrance on title to real property
and, in the case of securities, any purchase option, call or similar right of a
third party with respect to such securities.

“Loan Documents”
means this Agreement, the Notes, the Guaranty and the Indemnity Agreement.

“Loan
Parties” means, collectively, the Borrower and each of the Guarantors.

“Margin
Stock” means all “margin stock” within the meaning of Regulation U.

“Material Adverse Change”
means any material adverse change in the business, assets, operations,
prospects or financial condition of the Borrower and its Subsidiaries, taken as
a whole.  For purposes hereof, it is
understood and agreed that the occurrence of a labor dispute shall not in and
of itself constitute a Material Adverse Change.

“Material Adverse Effect”
means (a) a material adverse effect on the business, assets, operations,
prospects or financial condition of the Borrower and its Subsidiaries, taken as
a whole, (b) material impairment of the ability of the Borrower or any Material
Subsidiary to perform any of its obligations under any Loan Document to which
it is or is to be a party or (c) material impairment of the rights of or
benefits available to the Lenders under any of the Loan Documents.  For purposes hereof, it is understood and agreed
that the occurrence of a labor dispute shall not in and of itself constitute a
Material Adverse Effect.

“Material Subsidiary”
means any Subsidiary of the Borrower having (a) 5% of the Consolidated Net
Tangible Assets or (b) 5% of the total revenues appearing on the most recently
prepared Consolidated income statements of the Borrower and its Subsidiaries as
of the end of the immediately preceding fiscal quarter of the Borrower.

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

“Non-Recourse Debt”
means, with respect to any Person, Debt for which such Person neither (a)
provides credit support nor (b) is directly or indirectly liable.

“Note” means a
Revolving Credit Note or a Competitive Bid Note, as the context may require.

“Notice of Competitive
Bid Borrowing” has the meaning specified in Section 2.03(a).

 

11

 

“Notice of Revolving
Credit Borrowing” has the meaning specified in Section 2.02(a).

“OECD” means the
Organization for Economic Cooperation and Development and any successor.

“Overseas
Partners” means Overseas Partners Ltd., a Bermuda corporation.

“PBGC”
means the Pension Benefit Guaranty Corporation and any successor.

“Permitted Person”
means the UPS Managers Stock Trust, the UPS Stock Trust, the Annie E. Casey
Foundation, any retiree or present or former employee of the Borrower or any of
its Subsidiaries or their respective present or former spouse, relatives (by
consanguinity or law), estate or heirs (or their respective spouse’s estate or
heirs) or any other Person that has Beneficial Ownership of the common stock of
the Borrower on the date of this Agreement, or any Person that is created for
the benefit of any of the foregoing after the date of this Agreement.

“Person” means an
individual, partnership, corporation (including a business trust), joint stock
company, trust, unincorporated association, joint venture, limited liability
company or other entity, or a government or any political subdivision or agency
thereof.

“Plan” means any
pension plan subject to the provisions of Title IV of ERISA or Section 412 of
the Internal Revenue Code that is maintained for employees of the Borrower or
any ERISA Affiliate.

“Principal
Property” has the meaning specified in the Debenture Indenture.

“Public Debt Rating”
means, as of any date, the higher rating that has been most recently announced
by either S&P or Moody’s, as the case may be, for any class of non-credit
enhanced long-term senior unsecured debt issued by the Borrower.  For purposes of the foregoing, (a) if only
one of S&P and Moody’s shall have in effect a Public Debt Rating, the
Applicable Margin and the Applicable Fee Percentage shall be determined by
reference to the available rating; (b) if neither S&P nor Moody’s shall
have in effect a Public Debt Rating, the Applicable Margin and the Applicable
Fee Percentage will be set in accordance with Level 3 under the definition of
“Applicable Margin” or “Applicable Fee Percentage”, as the case may be; (c) if
the ratings established by S&P and Moody’s shall fall within different
levels, the Applicable Margin shall be based upon the higher rating; provided,
however, that if the lower of such ratings is more than one level below the
level of the higher of such ratings, then the Applicable Margin and the
Applicable Fee Percentage shall be based upon the level immediately above the
level of the lower of such ratings; (d) if any rating established by S&P or
Moody’s shall be changed, such change shall be effective as of the date on
which such change is first announced publicly by the rating agency making such
change; and (e) if S&P or Moody’s shall change the basis on which ratings
are established, each reference to the Public Debt Rating announced by S&P
or Moody’s, as the case may be, shall refer to the then equivalent rating by
S&P or Moody’s, as the case may be; provided, however, that if prior

 

12

 

thereto the Borrower has
selected, and the Required Lenders have approved, a rating agency to replace
S&P or Moody’s, as the case may be, such selection shall be deemed to be
S&P or Moody’s, as the case may be, for all purposes hereof.

“Reference Banks”
means Citibank, B of A and Bank One, or if any such Lender assigns all of its
Commitment, the Advances owing to it and the Note or Notes held by it pursuant
to Section 8.07(a), such other Lender as may be designated by the Required
Lenders and approved by the Borrower (such approval not to be unreasonably
withheld).

“Register”
has the meaning specified in Section 8.07(g).

“Regulation A”, “Regulation
D”, “Regulation T”, “Regulation U” or “Regulation X”
means Regulation A, Regulation D, Regulation T, Regulation U or Regulation X,
respectively, of the Board of Governors of the Federal Reserve System, in each
case as in effect from time to time, and all official rulings and
interpretations thereunder or thereof, respectively.

“Replacement
Lender” has the meaning specified in Section 2.16.

“Reportable Event”
means any reportable event as defined in Section 4043(b) of ERISA or the
regulations issued thereunder with respect to a Plan (other than a Plan
maintained by an ERISA Affiliate that is considered an ERISA Affiliate only
pursuant to subsection (m) or (o) of Section 414 of the Internal Revenue Code).

“Required Lenders”
means at any time Lenders owed greater than 50% of the then aggregate unpaid
principal amount of the Revolving Credit Advances owing to Lenders, or, if no
such principal amount is then outstanding, Lenders having greater than 50% of
the Commitments.

“Restricted
Subsidiary” has the meaning specified in the Debenture Indenture.

“Revolving Credit Advance”
means an advance by a Lender to the Borrower as part of a Revolving Credit
Borrowing and refers to a Base Rate Advance or a Eurodollar Rate Advance (each
of which shall be a “Type” of Revolving Credit Advance), as the context may
require.

“Revolving Credit
Borrowing” means a borrowing consisting of simultaneous Revolving Credit
Advances of the same Type made by each of the Lenders pursuant to Section 2.01.

“Revolving Credit Note”
means a promissory note of the Borrower payable to the order of any Lender, in
substantially the form of Exhibit A-1 hereto, evidencing the aggregate
indebtedness of the Borrower to such Lender resulting from the Revolving Credit
Advances made by such Lender.

“Sale and Leaseback Transaction”
has the meaning specified in the Debenture Indenture.

 

 

13

 

“Secured
Indebtedness” has the meaning specified in the Debenture Indenture.

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

“Subsidiary” of any
Person means any corporation, partnership, joint venture, limited liability
company, trust or estate of which (or in which) more than 50% of (a) the Voting
Power to elect a majority of the board of directors of such corporation
(irrespective of whether at the time capital stock of any other class or
classes of such corporation shall or might have voting power upon the
occurrence of any contingency), (b) the interest in the capital or profits of
such partnership or joint venture or (c) the beneficial interest in such trust
or estate is at the time owned or controlled by such Person, by such Person and
one or more of its other Subsidiaries or by one or more of such Person’s other
Subsidiaries; provided, however, that Overseas Partners shall not be deemed to
be a Subsidiary of the Borrower.

“Termination Date”
means the earlier of (a) April 24, 2008 or, if extended pursuant to Section
2.16, the date that is one year after the Termination Date then in effect, and
(b) the date of termination in whole of the Commitments pursuant to Section
2.05 or 6.01.

“Type” has the
meaning specified in the definition of “Revolving Credit Advance”.

“UPSCO” means United
Parcel Service Co., a Delaware corporation and a wholly owned Subsidiary of the
Borrower.

“UPSNY” means United
Parcel Service, Inc., a New York corporation and a wholly owned Subsidiary of
the Borrower.

“UPSO” means United
Parcel Service, Inc., an Ohio corporation and a wholly owned Subsidiary of the
Borrower.

“Voting Power” means,
with respect to any Voting Stock of any Person at any time, the number of votes
entitled to vote generally in the election of directors of such Person that are
attributable to such Voting Stock at such time divided by the number of votes
entitled to vote generally in the election of directors of such Person that are
attributable to all shares of capital stock of such Person (including such
Voting Stock) at such time.

“Voting Stock” means
capital stock issued by a corporation, or equivalent interests in any other
Person, the holders of which are ordinarily, in the absence of contingencies,
entitled to vote for the election of directors (or persons performing similar
functions) of such Person, even if the right so to vote has been suspended by the
happening of such a contingency.

 

 

14

 

SECTION 1.02.  Computation
of Time Periods.  In this Agreement
in the computation of periods of time from a specified date to a later
specified date, the word “from” means “from and including” and the words “to”
and “until” each means “to but excluding”.

SECTION 1.03.  Accounting
Terms.  All accounting terms not
specifically defined herein shall be construed in accordance with generally
accepted accounting principles consistent with those applied in the preparation
of the financial statements referred to in Section 4.01(e) (“GAAP”).

ARTICLE II

 

AMOUNTS AND TERMS OF THE ADVANCES

 

SECTION 2.01.  The
Revolving Credit Advances.  Each
Lender severally agrees, on the terms and conditions hereinafter set forth, to
make Revolving Credit Advances to the Borrower from time to time on any
Business Day during the period from the Effective Date until the Termination
Date in an aggregate amount not to exceed at any time outstanding the amount
set forth opposite such Lender’s name on Schedule I hereto, if such Lender has
entered into any Assignment and Acceptance, set forth for such Lender in the
Register maintained by the Administrative Agent pursuant to Section 8.07(c), as
such amount may be reduced pursuant to Section 2.05 (such Lender’s “Commitment”),
provided that the aggregate
amount of the Commitments of the Lenders shall be deemed used from time to time
to the extent of the aggregate amount of the Competitive Bid Advances then outstanding
and such deemed use of the aggregate amount of the Commitments shall be
allocated among the Lenders ratably according to their respective Commitments
(such deemed use of the aggregate amount of the Commitments being a “Competitive
Bid Reduction”).  Each Revolving
Credit Borrowing shall be in an aggregate amount of $25,000,000 or an integral
multiple of $1,000,000 in excess thereof (or, if less, an amount equal to the
remaining aggregate amount of unused Commitments or equal to the amount by which
the aggregate amount of a proposed Competitive Bid Borrowing requested by the
Borrower exceeds the aggregate amount of Competitive Bid Advances offered to be
made by the Lenders and accepted by the Borrower in respect of such Competitive
Bid Borrowing, if such Competitive Bid Borrowing is made on the same date as
such Revolving Credit Borrowing) and shall consist of Revolving Credit Advances
of the same Type made on the same day by the Lenders ratably according to their
respective Commitments.  Within the
limits of each Lender’s Commitment, the Borrower may borrow under this Section
2.01, prepay pursuant to Section 2.10 and reborrow under this Section 2.01.

SECTION
2.02.  Making the Revolving Credit
Advances.  (a)  Each Revolving Credit Borrowing shall be made
on notice, given not later than 11:00 A.M. (New York City time) on the third
Business Day prior to the date of the proposed Revolving Credit Borrowing in
the case of a Revolving Credit Borrowing consisting of Eurodollar Rate
Advances, or on the date of the proposed Revolving Credit Borrowing in the case
of a Revolving Credit Borrowing consisting of Base Rate Advances, by the
Borrower to the Administrative Agent, which shall give to each Lender prompt
notice thereof by telecopier or telex. 
Each such notice of a Revolving Credit Borrowing (a “Notice of
Revolving Credit Borrowing”) shall be by telephone, telecopier or telex,
confirmed promptly in writing, in substantially the form of Exhibit B-1 hereto,
specifying therein the requested (i) date of such Revolving Credit Borrowing,
(ii) Type of

 

15

 

Advances comprising such
Revolving Credit Borrowing, (iii) aggregate amount of such Revolving Credit
Borrowing, and (iv) in the case of a Revolving Credit Borrowing consisting of
Eurodollar Rate Advances, initial Interest Period for each such Revolving
Credit Advance.  Each Lender shall,
before 11:00 A.M. (New York City time) on the date of such Revolving Credit
Borrowing, make available for the account of its Applicable Lending Office to
the Administrative Agent at the Administrative Agent’s Account, in same day
funds, such Lender’s ratable portion of such Revolving Credit Borrowing.  After the Administrative Agent’s receipt of
such funds and upon fulfillment of the applicable conditions set forth in
Article III, the Administrative Agent will make such funds available to the
Borrower in same day funds at the Borrower’s Account.

(b)
          Anything in subsection (a) of
this Section 2.02 to the contrary notwithstanding, the Borrower may not select
Eurodollar Rate Advances for any Revolving Credit Borrowing if the aggregate
amount of such Revolving Credit Borrowing is less than $25,000,000 or if the
obligation of the Lenders to make Eurodollar Rate Advances shall then be suspended
pursuant to Section 2.08 or 2.12.

(c)
          Each Notice of Revolving Credit
Borrowing shall be irrevocable and binding on the Borrower.  In the case of any Revolving Credit
Borrowing that the related Notice of Revolving Credit Borrowing specifies is to
be comprised of Eurodollar Rate Advances, the Borrower shall indemnify each
Lender against any loss, cost or expense incurred by such Lender as a result of
any failure by the Borrower to fulfill on or before the date specified in such
Notice of Revolving Credit Borrowing for such Revolving Credit Borrowing the
applicable conditions set forth in Article III, including, without limitation,
any loss (including loss of anticipated profits), cost or expense incurred by
reason of the liquidation or reemployment of deposits or other funds acquired
by such Lender to fund the Revolving Credit Advance to be made by such Lender
as part of such Revolving Credit Borrowing when such Revolving Credit Advance,
as a result of such failure, is not made on such date.

(d)           Unless the Administrative Agent shall have received notice
from a Lender prior to the date of any Revolving Credit Borrowing that such
Lender will not make available to the Administrative Agent such Lender’s
ratable portion of such Revolving Credit Borrowing, the Administrative Agent
may assume that such Lender has made such portion available to the
Administrative Agent on the date of such Revolving Credit Borrowing in
accordance with subsection (a) of this Section 2.02 and the Administrative
Agent may, in reliance upon such assumption, make available to the Borrower on
such date a corresponding amount.  If
and to the extent that such Lender shall not have so made such ratable portion
available to the Administrative Agent, such Lender and the Borrower severally
agree to repay to the Administrative Agent forthwith on demand such
corresponding amount together with interest thereon, for each day from the date
such amount is made available to the Borrower until the date such amount is
repaid to the Administrative Agent, at (i) in the case of the Borrower, the
interest rate applicable at the time to Revolving Credit Advances comprising
such Revolving Credit Borrowing and (ii) in the case of such Lender, the
Federal Funds Rate.  If such Lender
shall repay to the Administrative Agent such corresponding amount, such amount
so repaid shall constitute such Lender’s Revolving Credit Advance as part of
such Revolving Credit Borrowing for purposes of this Agreement.

 

16

 

(e)
          The failure of any Lender to
make the Revolving Credit Advance to be made by it as part of any Revolving
Credit Borrowing shall not relieve any other Lender of its obligation, if any,
hereunder to make its Revolving Credit Advance on the date of such Revolving Credit
Borrowing, but no Lender shall be responsible for the failure of any other
Lender to make the Revolving Credit Advance to be made by such other Lender on
the date of any Revolving Credit Borrowing.

SECTION 2.03.  The
Competitive Bid Advances.  (a)  Each Lender severally agrees that the
Borrower may make Competitive Bid Borrowings under this Section 2.03 from time
to time on any Business Day during the period from the date hereof until the
date occurring prior to the Termination Date in the manner set forth below;
provided that, following the making of each Competitive Bid Advance, the
aggregate amount of the Advances then outstanding shall not exceed the
aggregate amount of the Commitments of the Lenders (computed without regard to
any Competitive Bid Reduction).

(i)            The Borrower may request a Competitive Bid Borrowing under
this Section 2.03 by delivering to the Administrative Agent, by telecopier or
telex, confirmed promptly in writing, a notice of a Competitive Bid Borrowing
(a “Notice of Competitive Bid Borrowing”), in substantially the form of
Exhibit B-2 hereto, specifying therein (A) the date of such proposed
Competitive Bid Borrowing, (B) the aggregate amount of such proposed
Competitive Bid Borrowing, (C) in the case of a Competitive Bid Borrowing
consisting of LIBO Rate Advances, the Interest Period for such LIBO Rate
Advances, (D) the maturity date for repayment of each Competitive Bid Advance
to be made as part of such Competitive Bid Borrowing (which maturity date may
not be earlier than the date occurring seven days after the date of such
Competitive Bid Borrowing or later than the Termination Date and, in the case
of any LIBO Rate Advance to be made as part of such Competitive Bid Borrowing,
shall be the last day of the interest period for such LIBO Rate Advance), (E)
the interest payment date or dates relating thereto, and (F) any other terms to
be applicable to such Competitive Bid Borrowing, not later than 10:00 A.M. (New
York City time) (1) at least one Business Day prior to the date of the proposed
Competitive Bid Borrowing, if the Borrower shall specify in the Notice of
Competitive Bid Borrowing that the rates of interest to be offered by the
Lenders shall be fixed rates per annum (the Advances comprising any such
Competitive Bid Borrowing being referred to herein as “Fixed Rate Advances”)
and (2) at least four Business Days prior to the date of the proposed
Competitive Bid Borrowing, if the Borrower shall instead specify in the Notice
of Competitive Bid Borrowing that the rates of interest to be offered by the
Lenders are to be based on the LIBO Rate (the Advances comprising such
Competitive Bid Borrowing being referred to herein as “LIBO Rate Advances”).  The Administrative Agent shall in turn
promptly notify each Lender of each request for a Competitive Bid Borrowing
received by it from the Borrower by sending such Lender a copy of the related
Notice of Competitive Bid Borrowing.

(ii)
          Each Lender may, if in its sole
discretion it elects to do so, irrevocably offer to make one or more Competitive
Bid Advances to the Borrower as part of such proposed Competitive Bid Borrowing
at a rate or rates of interest (including default rates not to exceed 1% per
annum above the rate per annum required to be paid on such Competitive Bid
Advance) specified by such Lender in its sole discretion, by notifying

 

17

 

the Administrative Agent
(which shall give prompt notice thereof to the Borrower), before 10:00 A.M.
(New York City time) on the date of such proposed Competitive Bid Borrowing, in
the case of a Competitive Bid Borrowing consisting of Fixed Rate Advances and
three Business Days before the date of such proposed Competitive Bid Borrowing,
in the case of a Competitive Bid Borrowing consisting of LIBO Rate Advances, of
the minimum amount and maximum amount of each Competitive Bid Advance which
such Lender would be willing to make as part of such proposed Competitive Bid
Borrowing (which amounts may, subject to the proviso to the first sentence of
this Section 2.03(a), exceed such Lender’s Commitment, if any), the rate or
rates of interest therefor and such Lender’s Applicable Lending Office with
respect to such Competitive Bid Advance; provided
that if the Administrative Agent in its capacity as a Lender shall, in its sole
discretion, elect to make any such offer, it shall notify the Borrower of such
offer before 9:00 A.M. (New York City time) on the date on which notice of such
election is to be given to the Administrative Agent by the other Lenders.  If any Lender shall elect not to make such
an offer, such Lender shall so notify the Administrative Agent, before 10:00
A.M. (New York City time) on the date on which notice of such election is to be
given to the Administrative Agent by the other Lenders, and such Lender shall
not be obligated to, and shall not, make any Competitive Bid Advance as part of
such Competitive Bid Borrowing; provided
that the failure by any Lender to give such notice shall not cause such Lender
to be obligated to make any Competitive Bid Advance as part of such proposed
Competitive Bid Borrowing.

 

(iii)
         the Borrower shall, in turn,
before 11:00 A.M. (New York City time) on the date of such proposed Competitive
Bid Borrowing, in the case of a Competitive Bid Borrowing consisting of Fixed
Rate Advances and before 11:30 A.M. (New York City time) three Business Days
before the date of such proposed Competitive Bid Borrowing, in the case of a
Competitive Bid Borrowing consisting of LIBO Rate Advances, either:

 

(A)          cancel such Competitive Bid Borrowing by giving the
Administrative Agent notice to that effect, or

(B)          accept one or more of the offers made by any Lender or
Lenders pursuant to subsection (a)(ii) of this Section 2.03, in its sole
discretion, by giving notice to the Administrative Agent of the amount of each
Competitive Bid Advance (which amount shall be equal to or greater than the
minimum amount, and equal to or less than the maximum amount, notified to the
Borrower by the Administrative Agent on behalf of such Lender for such
Competitive Bid Advance pursuant to subsection (a)(ii) of this Section 2.03) to
be made by each Lender as part of such Competitive Bid Borrowing, and reject
any remaining offers made by Lenders pursuant to subsection (a)(ii) of this
Section 2.03 by giving the Administrative Agent notice to that effect.  The Borrower shall accept the offers made by
any Lender or Lenders to make Competitive Bid Advances in order of the lowest
to the highest rates of interest offered by such Lenders; provided, however, that if the Borrower
has a reasonable basis to believe that acceptance of the offer of any such
Lender has a reasonable likelihood of subjecting the Borrower to additional
costs pursuant to the provisions of Section 2.11, 2.12 or 2.14, the Borrower
may reject the offer of such Lender and accept

 

18

 

the
offer of the Lender offering the next lowest rate of interest.  Subject to the next preceding sentence, if
two or more Lenders have offered the same interest rate, the amount to be
borrowed at such interest rate will be allocated among such Lenders in
proportion to the amount that each such Lender offered at such interest rate.

(iv)           the Borrower notifies the Administrative
Agent that such Competitive Bid Borrowing is cancelled pursuant to subsection
(a)(iii)(A) of this Section 2.03, the Administrative Agent shall give prompt
notice thereof to the Lenders and such Competitive Bid Borrowing shall not be
made.

(v)           If the Borrower accepts one or more of the offers made by
any Lender or Lenders pursuant to subsection (a)(iii)(B) of this Section 2.03,
the Administrative Agent shall in turn promptly notify (A) each Lender that has
made an offer as described in subsection (a)(ii) of this Section 2.03, of the
date and aggregate amount of such Competitive Bid Borrowing and whether or not
any offer or offers made by such Lender pursuant to subsection (a)(ii) of this
Section 2.03 have been accepted by the Borrower, (B) each Lender that is to
make a Competitive Bid Advance as part of such Competitive Bid Borrowing, of
the amount of each Competitive Bid Advance to be made by such Lender as part of
such Competitive Bid Borrowing, and (C) each Lender that is to make a
Competitive Bid Advance as part of such Competitive Bid Borrowing, upon
receipt, that the Administrative Agent has received forms of documents
appearing to fulfill the applicable conditions set forth in Article III.  Each Lender that is to make a Competitive
Bid Advance as part of such Competitive Bid Borrowing shall, before 12:00 noon
(New York City time) on the date of such Competitive Bid Borrowing specified in
the notice received from the Administrative Agent pursuant to clause (A) of the
next preceding sentence or at such later date when such Lender shall have received
notice from the Administrative Agent pursuant to clause (C) of the next
preceding sentence, make available for the account of its Applicable Lending
Office to the Administrative Agent at the Administrative Agent’s Account, in
same day funds, such Lender’s portion of such Competitive Bid Borrowing.  Upon fulfillment of the applicable
conditions set forth in Article III and after receipt by the Administrative
Agent of such funds, the Administrative Agent will make such funds available to
the Borrower in same day funds at the Borrower’s Account.  Promptly after each Competitive Bid
Borrowing the Administrative Agent will notify each Lender of the amount of the
Competitive Bid Borrowing, the consequent Competitive Bid Reduction and the
dates upon which such Competitive Bid Reduction commenced and will terminate.

(b)
          Each Competitive Bid Borrowing
shall be in an aggregate amount of $25,000,000 or an integral multiple of
$1,000,000 in excess thereof and, following the making of each Competitive Bid
Borrowing, the Borrower shall be in compliance with the limitation set forth in
the proviso to the first sentence of subsection (a) of this Section 2.03.

(c)           Within the limits and on the conditions set forth in this
Section 2.03, the Borrower may from time to time borrow under this Section
2.03, repay pursuant to subsection (d) of this Section 2.03, and reborrow under
this Section 2.03, provided that
a Competitive Bid

 

19

 

Borrowing shall not be made
within three Business Days of the date of any other Competitive Bid Borrowing.

(d)
          The Borrower shall repay to the
Administrative Agent for the account of each Lender that has made a Competitive
Bid Advance, on the maturity date of each Competitive Bid Advance (such maturity
date being that specified by the Borrower for repayment of such Competitive Bid
Advance in the related Notice of Competitive Bid Borrowing delivered pursuant
to subsection (a)(i) of this Section 2.03 and provided in the Competitive Bid
Note evidencing such Competitive Bid Advance), the then unpaid principal amount
of such Competitive Bid Advance.  The
Borrower may prepay any principal amount of any Competitive Bid Advance,
subject to the provisions of Sections 2.10 and 8.04(c), with the consent of the
respective Lender of such Competitive Bid Advance.

(e)
          The Borrower shall pay interest
on the unpaid principal amount of each Competitive Bid Advance from the date of
such Competitive Bid Advance to the date the principal amount of such
Competitive Bid Advance is repaid in full, at the rate of interest for such
Competitive Bid Advance specified by the Lender making such Competitive Bid
Advance in its notice with respect thereto delivered pursuant to subsection
(a)(ii) of this Section 2.03, payable on the interest payment date or dates
specified by the Borrower for such Competitive Bid Advance in the related
Notice of Competitive Bid Borrowing delivered pursuant to subsection (a)(i) of
this Section 2.03, as provided in the Competitive Bid Note evidencing such
Competitive Bid Advance.  Upon the
occurrence and during the continuance of an Event of Default, the Borrower
shall pay interest on the amount of unpaid principal of and interest on each
Competitive Bid Advance owing to a Lender, payable in arrears on the date or
dates interest is payable thereon, at a rate per annum equal to the default
rate specified by the appropriate Lender in respect of such Competitive Bid
Advance.

(f)
           The indebtedness of the
Borrower resulting from each Competitive Bid Advance made to the Borrower as
part of a Competitive Bid Borrowing shall be evidenced by a separate
Competitive Bid Note of the Borrower payable to the order of the Lender making
such Competitive Bid Advance.  Upon
repayment in full of each Competitive Bid Advance in accordance with the
provisions of subsection (d) of this Section 2.03 and the terms of the
Competitive Bid Note evidencing such Competitive Bid Advance, the Lender
holding such Competitive Bid Note shall cancel such Note and return such Note
to the Borrower.

SECTION 2.04.  Fees.  (a)  Facility
Fee.  The Borrower agrees to pay to
the Administrative Agent for the account of each Lender (other than the
Designated Bidders) a facility fee on the aggregate amount of such Lender’s
Commitment from the Effective Date in the case of each Initial Lender and from
the effective date specified in the Assignment and Acceptance pursuant to which
it became a Lender in the case of each other Lender until the Termination Date
at a rate per annum equal to the Applicable Fee Percentage, payable in arrears
quarterly on the last day of each March, June, September and December,
commencing June 30, 2003, and on the Termination Date.

(b)           Agents’ Fees. 
The Borrower shall pay to each Agent for its own account such fees as
may from time to time be agreed between the Borrower and such Agent.

 

20

 

SECTION 2.05.  Termination
or Reduction of the Commitments. 
The Borrower shall have the right, upon at least three Business Days’
notice to the Administrative Agent, to terminate in whole or reduce ratably in
part the unused portions of the respective Commitments of the Lenders, provided
that each partial reduction shall be in the aggregate amount of $25,000,000 or
an integral multiple of $1,000,000 in excess thereof and provided further that the aggregate amount
of the Commitments of the Lenders shall not be reduced to an amount that is
less than the aggregate principal amount of the Competitive Bid Advances then
outstanding.

SECTION 2.06.  Repayment
of Revolving Credit Advances.  The
Borrower shall repay to the Administrative Agent for the ratable account of the
Lenders on the Termination Date the aggregate principal amount of the Revolving
Credit Advances then outstanding.

SECTION 2.07.  Interest
on Revolving Credit Advances. (a)  Scheduled
Interest.  The Borrower shall pay
interest on the unpaid principal amount of each Revolving Credit Advance owing
to each Lender from the date of such Revolving Credit Advance until such
principal amount shall be paid in full, at the following rates per annum:

(i)            Base Rate Advances.  During such periods as such Revolving Credit Advance is a Base
Rate Advance, a rate per annum equal at all times to the sum of (A) the Base
Rate in effect from time to time plus
(B) the Applicable Margin in effect from time to time, payable in arrears
quarterly on the last day of each March, June, September and December during
such periods and on the date such Base Rate Advance shall be Converted or paid
in full.

(ii)           Eurodollar Rate Advances.  During such periods as such Revolving Credit Advance is a
Eurodollar Rate Advance, a rate per annum equal at all times during each
Interest Period for such Revolving Credit Advance to the sum of (A) the
Eurodollar Rate for such Interest Period for such Revolving Credit Advance plus (B) the Applicable Margin in effect
from time to time, payable in arrears on the last day of such Interest Period
and, if such Interest Period has a duration of more than three months, on each
day that occurs during such Interest Period every three months from the first
day of such Interest Period and on the date such Eurodollar Rate Advance shall
be Converted or paid in full.

(b)           Default Interest. 
Upon the occurrence and during the continuance of an Event of Default,
the Borrower shall pay interest on (i) the unpaid principal amount of each
Revolving Credit Advance owing to each Lender, payable in arrears on the dates
referred to in subsection (a)(i) or (a)(ii) of this Section 2.07, at a rate per
annum equal at all times to 1% per annum above the rate per annum required to
be paid on such Revolving Credit Advance pursuant to subsection (a)(i) or
(a)(ii) of this Section 2.07 and (ii) the amount of any interest, fee or other
amount payable hereunder that is not paid when due, from the date such amount
shall be due until such amount shall be paid in full, payable in arrears on the
date such amount shall be paid in full and on demand, at a rate per annum equal
at all times to 1% per annum above the rate per annum required to be paid on
Base Rate Advances pursuant to subsection (a)(i) of this Section 2.07.

 

21

 

SECTION 2.08.  Interest
Rate Determination.  (a)  Each Reference Bank agrees to furnish to the
Administrative Agent timely information for the purpose of determining each
Eurodollar Rate and each LIBO Rate.  If
any one or more of the Reference Banks shall not furnish such timely
information to the Administrative Agent for the purpose of determining any such
interest rate, the Administrative Agent shall determine such interest rate on
the basis of timely information furnished by the remaining Reference Banks,
subject to the provisions of subsection (e) of this Section 2.08.  The Administrative Agent shall give prompt
notice to the Borrower and the Lenders of the applicable interest rate
determined by the Administrative Agent for purposes of Section 2.07(a)(i) or
2.07(a)(ii), and the rate, if any, furnished by each Reference Bank for the
purpose of determining the interest rate under Section 2.07(a)(ii).

(b)
          If the Borrower shall fail to
select the duration of any Interest Period for any Eurodollar Rate Advances in
accordance with the provisions contained in the definition of “Interest Period”
in Section 1.01, the Administrative Agent will forthwith so notify the Borrower
and the Lenders and such Advances will automatically, on the last day of the
then existing Interest Period therefor, Convert into Base Rate Advances.

(c)
          On the date on which the
aggregate unpaid principal amount of Eurodollar Rate Advances comprising any
Revolving Credit Borrowing shall be reduced, by payment or prepayment or
otherwise, to less than $25,000,000, such Advances shall automatically Convert
into Base Rate Advances.

(d)
          Upon the occurrence and during
the continuance of any Event of Default, (i) each Eurodollar Rate Advance will
automatically, on the last day of the then existing Interest Period therefor,
Convert into a Base Rate Advance and (ii) the obligations of the Lenders to
make, or to Convert Advances into, Eurodollar Rate Advances shall be suspended.

(e)
          If fewer than two Reference
Banks furnish timely information to the Administrative Agent for determining
the Eurodollar Rate or LIBO Rate for any Eurodollar Rate Advances or LIBO Rate Advances,
as the case may be,

(i)            the Administrative Agent shall forthwith notify the
Borrower and the Lenders that the interest rate cannot be determined for such
Eurodollar Rate Advances or LIBO Rate Advances, as the case may be,

(ii)           with respect to Eurodollar Rate Advances, each such Advance
will automatically, on the last day of the then existing Interest Period
therefor, Convert into a Base Rate Advance (or if such Advance is then a Base
Rate Advance, will continue as a Base Rate Advance), and

(iii)          the
obligations of the Lenders to make Eurodollar Rate Advances or LIBO Rate
Advances, or to Convert Revolving Credit Advances into Eurodollar Rate
Advances, shall be suspended until the Administrative Agent shall notify the
Borrower and the Lenders that the circumstances causing such suspension no
longer exist.

SECTION
2.09.  Optional Conversion of
Revolving Credit Advances.  The
Borrower may on any Business Day, upon notice given to the Administrative Agent
not later than 11:00 A.M. (New York City time) on the third Business Day prior
to the date of the

 

22

 

proposed Conversion and
subject to the provisions of Sections 2.08, 2.12 and 8.04(c), Convert Revolving
Credit Advances of one Type comprising the same Borrowing into Revolving Credit
Advances of the other Type; provided,
however, that any Conversion of Base Rate Advances into Eurodollar
Rate Advances shall be in an amount not less than the minimum amount specified
in Section 2.02(b).  Each such notice of
a Conversion shall, within the restrictions specified above, specify (a) the
date of such Conversion, (b) the Revolving Credit Advances to be Converted, and
(c) if such Conversion is into Eurodollar Rate Advances, the duration of the
initial Interest Period for each such Advance. 
Each notice of Conversion shall be irrevocable and binding on the
Borrower.

SECTION 2.10.  Optional
Prepayments of Advances.  The
Borrower may, upon at least two Business Days’ notice in the case of Eurodollar
Rate Advances and notice on the same Business Day in the case of Base Rate
Advances to the Administrative Agent stating the proposed date and aggregate
principal amount of the prepayment, and if such notice is given the Borrower
shall, prepay the outstanding principal amount of such Advances comprising part
of the same Borrowing in whole or ratably in part, together with accrued
interest to the date of such prepayment on the principal amount prepaid; provided, however, that (a) each partial
prepayment shall be in an aggregate principal amount of $10,000,000 or an
integral multiple of $1,000,000 in excess thereof and (b) in the event of any
such prepayment of a Eurodollar Rate Advance or LIBO Rate Advance, the Borrower
shall be obligated to reimburse the Lenders in respect thereof pursuant to
Section 8.04(c).

SECTION 2.11.  Increased
Costs.  (a)  If, due to either (i) the introduction of or
any change (other than any change by way of imposition or increase of reserve
requirements included in the Eurodollar Rate Reserve Percentage) in or in the
interpretation of any law or regulation or (ii) the compliance with any
guideline or request from any central bank or other Governmental Authority
(whether or not having the force of law), there shall be any increase in the
cost as measured from the date hereof to any Lender of agreeing to make or
making, funding or maintaining Eurodollar Rate Advances or LIBO Rate Advances,
then the Borrower shall from time to time, upon demand by such Lender (with a
copy of such demand to the Administrative Agent), promptly pay to the
Administrative Agent for the account of such Lender additional amounts
sufficient to compensate such Lender for such increased cost.  A certificate as to the amount of such
increased cost, submitted to the Borrower and the Administrative Agent by such
Lender, shall be conclusive and binding for all purposes, absent manifest
error.

(b)           If any Lender (other than the Designated Bidders)
determines that compliance with any law or regulation or any guideline or
request from any central bank or other Governmental Authority (whether or not
having the force of law) affects or would affect the amount of capital required
or expected to be maintained by such Lender or any corporation controlling such
Lender and that the amount of such capital is increased by or based upon the
existence of such Lender’s commitment to lend hereunder and other commitments
of this type, then, upon demand by such Lender (with a copy of such demand to
the Administrative Agent), the Borrower shall promptly pay to the
Administrative Agent for the account of such Lender, from time to time as
specified by such Lender, additional amounts sufficient to compensate such
Lender or such corporation in the light of such circumstances, to the extent
that such Lender reasonably determines such increase in capital to be allocable
to the existence of such Lender’s commitment to lend hereunder.  A certificate as to such amounts submitted
to the Borrower and

 

23

 

the Administrative Agent by
such Lender shall be conclusive and binding for all purposes, absent manifest
error.

SECTION 2.12.  Illegality.  Notwithstanding any other provision of this
Agreement, if any Lender shall notify the Administrative Agent that the
introduction of or any change in or in the interpretation of any law or
regulation by any governmental authority charged with such interpretation makes
it unlawful, or any central bank or other Governmental Authority asserts that
it is unlawful, for any Lender or its Eurodollar Lending Office to perform its
obligations hereunder to make Eurodollar Rate Advances or LIBO Rate Advances or
to fund or maintain Eurodollar Rate Advances or LIBO Rate Advances hereunder,
(a) each Eurodollar Rate Advance or LIBO Rate Advance, as the case may be, will
automatically, upon such demand, Convert into a Base Rate Advance or an Advance
that bears interest at the rate set forth in Section 2.07(a)(i), as the case
may be, and (b) the obligation of the Lenders to make Eurodollar Rate Advances or
LIBO Rate Advances, or to Convert Revolving Credit Advances into Eurodollar
Rate Advances, shall be suspended until the Administrative Agent shall notify
the Borrower and the Lenders that the circumstances causing such suspension no
longer exist.

SECTION 2.13.  Payments
and Computations.  (a)  The Borrower shall make each payment
hereunder and under the Notes not later than 1:00 P.M. (New York City time) on
the day when due, without setoff or counterclaim, in Dollars to the
Administrative Agent at the Administrative Agent’s Account in same day
funds.  The Administrative Agent will
promptly thereafter cause to be distributed like funds relating to the payment
of principal or interest, facility fees or utilization fees ratably (other than
amounts payable pursuant to Section 2.03, 2.11, 2.14 or 8.04(c)) to the Lenders
for the account of their respective Applicable Lending Offices, and like funds
relating to the payment of any other amount payable to any Lender to such
Lender for the account of its Applicable Lending Office, in each case to be
applied in accordance with the terms of this Agreement.  Upon its acceptance of an Assignment and
Acceptance and recording of the information contained therein in the Register
pursuant to Section 8.07(d), from and after the effective date specified in
such Assignment and Acceptance, the Administrative Agent shall make all
payments hereunder and under the Notes in respect of the interest assigned
thereby to the Lender assignee thereunder, and the parties to such Assignment and
Acceptance shall make all appropriate adjustments in such payments for periods
prior to such effective date directly between themselves.

(b)
          The Borrower hereby authorizes
the Administrative Agent, if and to the extent payment owed to any Lender is
not made when due hereunder or under the Note held by such Lender, to charge
from time to time against any or all of the Borrower’s accounts with the
Administrative Agent any amount so due.

(c)           All computations of interest based on the Base Rate shall
be made by the Administrative Agent on the basis of a year of 365 or 366 days,
as the case may be, and all computations of interest based on the Eurodollar
Rate or the Federal Funds Rate and of facility fees shall be made by the
Administrative Agent on the basis of a year of 360 days, in each case for the
actual number of days (including the first day but excluding the last day)
occurring in the period for which such interest or facility fees are
payable.  Each determination by the
Administrative Agent of an interest rate hereunder shall be conclusive and
binding for all purposes, absent manifest error.

 

24

 

(d)
          Whenever any payment hereunder
or under the Notes shall be stated to be due on a day other than a Business
Day, such payment shall be made on the next succeeding Business Day, and such
extension of time shall in such case be included in the computation of payment
of interest or facility fees, as the case may be; provided, however, that, if such extension would cause
payment of interest on or principal of Eurodollar Rate Advances or LIBO Rate
Advances to be made in the next following calendar month, such payment shall be
made on the next preceding Business Day.

(e)
          Unless the Administrative Agent
shall have received notice from the Borrower prior to the date on which any
payment is due to the Lenders hereunder that the Borrower will not make such
payment in full, the Administrative Agent may assume that the Borrower has made
such payment in full to the Administrative Agent on such date and the
Administrative Agent may, in reliance upon such assumption, cause to be
distributed to each Lender on such due date an amount equal to the amount then
due such Lender.  If and to the extent
the Borrower shall not have so made such payment in full to the Administrative
Agent, each Lender shall repay to the Administrative Agent forthwith on demand
such amount distributed to such Lender together with interest thereon, for each
day from the date such amount is distributed to such Lender until the date such
Lender repays such amount to the Administrative Agent, at the Federal Funds
Rate.

SECTION 2.14.  Taxes.  (a) 
Any and all payments by the Borrower hereunder or under the Notes shall
be made, in accordance with Section 2.13, free and clear of and without
deduction for any and all present or future taxes, levies, imposts, deductions,
charges or withholdings, and all liabilities with respect thereto, excluding, in the case of each Lender and
each Agent, taxes imposed on its net income, and franchise taxes measured by
income imposed on it, by the jurisdiction under the laws of which such Lender
or such Agent (as the case may be) is organized or any political subdivision
thereof and, in the case of each Lender, taxes imposed on its net income, and
franchise taxes measured by income imposed on it, by the jurisdiction of such
Lender’s Applicable Lending Office or any political subdivision thereof (all
such non-excluded taxes, levies, imposts, deductions, charges, withholdings and
liabilities in respect of payments hereunder or under the Notes being
hereinafter referred to as “Taxes”).  If
the Borrower shall be required by law to deduct any Taxes from or in respect of
any sum payable hereunder or under any Note to any Lender or any Agent (i) the
sum payable shall be increased as may be necessary so that after making all
required deductions (including deductions applicable to additional sums payable
under this Section 2.14) such Lender or such Agent (as the case may be)
receives an amount equal to the sum it would have received had no such
deductions been made, (ii) the Borrower shall make such deductions and (iii)
the Borrower shall pay the full amount deducted to the relevant taxation
authority or other authority in accordance with applicable law.

(b)           In addition, the Borrower agrees to pay any present or
future stamp or documentary taxes or any other excise or property taxes,
charges or similar levies that arise from any payment made hereunder or under
the Notes or from the execution, delivery or registration of, or otherwise with
respect to, this Agreement or the Notes hereinafter referred to as “Other
Taxes”).

 

25

 

(c)
          The Borrower shall indemnify
each Lender and each Agent for the full amount of Taxes or Other Taxes
(including, without limitation, any Taxes or Other Taxes imposed by any
jurisdiction on amounts payable under this Section 2.14) paid by such Lender or
such Agent or any of its Affiliates (as the case may be) and any liability
(including penalties, interest and expenses) arising there from or with respect
thereto, whether or not such Taxes or Other Taxes were correctly or legally
asserted.  This indemnification shall be
made within 30 days from the date such Lender, such Agent or such Affiliate (as
the case may be) makes written demand therefor.

(d)
          Within 30 days after the date of
any payment of Taxes, the Borrower shall furnish to the Administrative Agent,
at its address referred to in Section 8.02, the original or a certified copy of
a receipt evidencing payment thereof. 
If no Taxes are payable in respect of any payment hereunder or under the
Notes, the Borrower will furnish to the Administrative Agent, at such address,
a certificate from each appropriate taxing authority, or an opinion of counsel
acceptable to the Administrative Agent, in either case stating that such
payment is exempt from or not subject to Taxes.

(e)
          Each Lender organized under the
laws of a jurisdiction outside the United States, on or prior to the date of
its execution and delivery of this Agreement in the case of each Initial Lender
and on the date of the Assignment and Acceptance pursuant to which it becomes a
Lender in the case of each other Lender, and from time to time thereafter if
requested in writing by the Borrower (but only so long as such Lender remains
lawfully able to do so), shall provide each of the Administrative Agent and the
Borrower with Internal Revenue Service form 1001 or 4224, or (in the case of a
Lender that has certified in writing to the Administrative Agent that it is not
a “bank” as defined in Section 881(c)(3)(A) of the Internal Revenue Code) Form
W-8 (and, if such Non-U.S. Lender delivers a Form W-8, a certificate
representing that such Non-U.S. Lender is not a “bank” for purposes of Section
881(c) of the Internal Revenue Code, is not a 10-percent shareholder (within
the meaning of Section 871(h)(3)(B) of the Internal Revenue Code) of the
Borrower and is not a controlled foreign corporation related to the Borrower
(within the meaning of Section 864(d)(4) of the Internal Revenue Code)),as
appropriate, or any successor form prescribed by the Internal Revenue Service,
certifying that such Lender is entitled to benefits under an income tax treaty
to which the United States is a party which reduces the rate of withholding tax
on payments of interest or certifying that the income receivable pursuant to
this Agreement is effectively connected with the conduct of a trade or business
in the United States.  Each such Lender
shall provide the Administrative Agent and the Borrower with a new form 1001,
4224 or W-8, as appropriate, if and at such time as the previously provided
form becomes invalid.  If the form
provided by a Lender at the time such Lender first becomes a party to this
Agreement or at any other time indicates a United States interest withholding
tax rate in excess of zero, withholding tax at such rate shall be considered
excluded from “Taxes” as defined in Section 2.14(a).

(f)            For any period with respect to which a Lender has failed
to provide the Borrower with the appropriate form described in subsection (e)
of this Section 2.14 (other than if such failure is due to a change in law
occurring subsequent to the date on which a form originally was required to be
provided, or if such form otherwise is not required under the first sentence of
subsection (e) of this Section 2.14), such Lender shall not be entitled to
indemnification under subsection (a) or (c) of this Section 2.14 with respect
to Taxes imposed by the United States by

 

26

 

reason of such failure;
provided, however, that should a Lender become subject to Taxes because of its
failure to deliver a form required hereunder, the Borrower shall take such
steps as the Lender shall reasonably request to assist the Lender to recover
such Taxes.

(g)
          Notwithstanding any contrary
provisions of this Agreement, in the event that a Lender that originally
provided such form as may be required under subsection (e) of this Section 2.14
thereafter ceases to qualify for complete exemption from United States
withholding tax, such Lender, with the prior written consent of the Borrower,
which consent shall not be unreasonably withheld, may assign its interest under
this Agreement to any assignee and such assignee shall be entitled to the same
benefits under this Section 2.14 as the assignor provided that the rate of
United States withholding tax applicable to such assignee shall not exceed the
rate then applicable to the assignor.

(h)
          Without prejudice to the
survival of any other agreement of the Borrower hereunder, the agreements and
obligations of the Borrower contained in this Section 2.14 shall survive the
payment in full of principal and interest hereunder and under the Notes.

(i)
           Any Lender claiming any
additional amounts payable pursuant to this Section 2.14 agrees to use
reasonable efforts (consistent with its internal policy and legal and
regulatory restrictions) to change the jurisdiction of its Eurodollar Lending
Office if the making of such a change would avoid the need for, or reduce the
amount of, any such additional amounts that may thereafter accrue and would
not, in the reasonable judgment of such Lender, be otherwise disadvantageous to
such Lender.

SECTION 2.15.  Sharing
of Payments, Etc.  If any Lender
shall obtain any payment (whether voluntary, involuntary, through the exercise
of any right of setoff, or otherwise) on account of the Revolving Credit
Advances owing to it (other than pursuant to Section 2.11, 2.14 or 8.04(c)) in
excess of its ratable share of payments on account of the Revolving Credit
Advances obtained by all the Lenders, such Lender shall forthwith purchase from
the other Lenders such participations in the Revolving Credit Advances owing to
them as shall be necessary to cause such purchasing Lender to share the excess
payment ratably with each of them; provided,
however, that if all or any portion of such excess payment is
thereafter recovered from such purchasing Lender, such purchase from each
Lender shall be rescinded and such Lender shall repay to the purchasing Lender
the purchase price to the extent of such recovery together with an amount equal
to such Lender’s ratable share (according to the proportion of (i) the amount
of such Lender’s required repayment to (ii) the total amount so recovered from
the purchasing Lender) of any interest or other amount paid or payable by the
purchasing Lender in respect of the total amount so recovered.  The Borrower agrees that any Lender so
purchasing a participation from another Lender pursuant to this Section 2.15
may, to the fullest extent permitted by law, exercise all its rights of payment
(including the right of setoff) with respect to such participation as fully as
if such Lender were the direct creditor of the Borrower in the amount of such
participation.

SECTION
2.16.  Extensions of Termination
Date.  No earlier than 60 days and
no later than 45 days prior to each anniversary of the Effective Date, the
Borrower may, by written notice to the Administrative Agent, request that the
Termination Date then in effect be extended for a 1-year period.  Such request shall be irrevocable and
binding upon the Borrower.  The

 

27

 

Administrative Agent shall
promptly notify each Lender of such request. 
If a Lender agrees, in its individual and sole discretion, to so extend
its Commitment (an “Extending Lender”), it shall deliver to the
Administrative Agent a written notice of its agreement to do so no earlier than
30 days and no later than 20 days prior to such anniversary date and the
Administrative Agent shall notify the Borrower of such Extending Lender’s
agreement to extend its Commitment no later than 15 days prior to such
anniversary date.  The Commitment of any
Lender that fails to accept or respond to the Borrower’s request for extension
of the Termination Date (a “Declining Lender”) shall be terminated on
the Termination Date then in effect (without regard to any extension by other
Lenders) and on such Termination Date the Borrower shall pay in full the
principal amount of all Advances owing to such Declining Lender, together with
accrued interest thereon to the date of such payment of principal and all other
amounts payable to such Declining Lender under this Agreement.  The Administrative Agent shall promptly
notify each Extending Lender of the aggregate Commitments of the Declining
Lenders.  The Extending Lenders, or any
of them, may offer to increase their respective Commitments by an aggregate
amount up to the aggregate amount of the Declining Lenders’ Commitments and any
such Extending Lender shall deliver to the Administrative Agent a notice of its
offer to so increase its Commitment no later than 15 days prior to such
anniversary date.  To the extent of any
shortfall in the aggregate amount of extended Commitments, the Borrower shall
have the right to require any Declining Lender, to assign in full its rights
and obligations under this Agreement one or more Eligible Assignees designated
by the Borrower and acceptable to the Administrative Agent, such acceptance not
to be unreasonably withheld, that agree to accept all of such rights and
obligations each a “Replacement Lender”), provided that (i) such
increase and/or such assignment is otherwise in compliance with Section 8.07,
(ii) such Declining Lender receives payment in full of the principal amount of
all Advances owing to such Declining Lender, together with accrued interest
thereon to the date of such payment of principal and all other amounts payable
to such Declining Lender under this Agreement and (iii) any such increase shall
be effective on such anniversary date and any such assignment shall be
effective on the date specified by the Borrower and agreed to by the
Replacement Lender and the Administrative Agent.  If, but only if, Extending Lenders and Replacement Lenders
provide Commitments in an aggregate amount equal to 100% of the aggregate
amount of the Commitments outstanding immediately prior to such anniversary
date, the Termination Date shall be extended by 1-year.

SECTION 2.17.  Substitution
of Lender.  If the obligation of any
Lender to make Eurodollar Rate Advances has been suspended pursuant to Section
2.12 or any Lender has demanded compensation or the Borrower is otherwise
required to pay additional amounts under Section 2.11 or 2.14, the Borrower
shall have the right to seek a substitute lender or lenders who qualify as
Eligible Assignees to assume, in accordance with the provisions of Section
8.07, the Commitment of such Lender and to purchase the Revolving Credit
Advances made by such Lender (without recourse to or warranty by such Lender).

ARTICLE III

 

CONDITIONS TO EFFECTIVENESS AND LENDING

 

SECTION
3.01.  Conditions Precedent to
Effectiveness of Sections 2.01 and 2.03. 
Sections 2.01 and 2.03 of this Agreement shall become effective on and
as of the first date (the “Effective Date”) on which the following
conditions precedent have been satisfied:

 

28

 

(a)
          The Borrower shall have notified
each Lender and the Administrative Agent in writing as to the proposed
Effective Date.

(b)           The
Borrower shall have paid all fees and other amounts due and payable.

(c)
          The Borrower shall have repaid
all outstanding advances and shall have paid all other amounts payable under
each of the Existing Credit Facilities and the commitments under each such
Existing Credit Facility shall have been terminated.

(d)
          On the Effective Date, the
following statements shall be true and the Administrative Agent shall have
received for the account of each Lender a certificate signed by a duly
authorized officer of the Borrower, dated the Effective Date, stating that:

(i)            the representations and warranties contained in Section
4.01 are correct in all material respects on and as of the Effective Date; and

(ii)           no event has occurred and is
continuing that constitutes a Default.

(e)
          The Administrative Agent shall
have received on or before the Effective Date the following, each dated such
day, in form and substance satisfactory to the Administrative Agent and (except
for the Revolving Credit Notes) in sufficient copies for each Lender:

(i)            The
Revolving Credit Notes to the order of the Lenders, respectively.

(ii)           A
guaranty, in substantially the form of Exhibit E hereto (as amended, supplemented
or otherwise modified from time to time, the “Guaranty”), duly executed
by each of the Guarantors.

(iii)          An
indemnity, subrogation and contribution agreement, in substantially the form of
Exhibit F hereto (as amended, supplemented or otherwise modified from time to
time, the “Indemnity Agreement”), duly executed by the Borrower and each
of the Guarantors.

(iv)         
Certified copies of the resolutions of the board of directors of the Borrower
approving this Agreement, the Notes and the Indemnity Agreement, and of all
documents evidencing other necessary corporate action and governmental
approvals, if any, with respect to this Agreement, the Notes and the Indemnity
Agreement.

(v)           Certified
copies of the resolutions of the board of directors of each of the Guarantors
approving the Guaranty and the Indemnity Agreement, and of all documents
evidencing other necessary corporate action and governmental approvals, if any,
with respect to the Guaranty and the Indemnity Agreement.

(vi)          A
certificate of the Secretary or an Assistant Secretary of each of the
Guarantors certifying the names and true signatures of the officers of such

 

29

 

Guarantor
authorized to sign the Guaranty and the Indemnity Agreement and the other
documents to be delivered hereunder.

(vii)          certificate of the Secretary or an Assistant
Secretary of the Borrower certifying the names and true signatures of the
officers of the Borrower authorized to sign this Agreement, the Notes and the
Indemnity Agreement and the other documents to be delivered hereunder.

(viii)         favorable opinion of King & Spalding LLP,
counsel for the Borrower, substantially in the form of Exhibit G hereto.

(ix)            favorable opinion of Shearman & Sterling,
counsel for the Administrative Agent, in form and substance satisfactory to the
Administrative Agent.

SECTION 3.02.  Conditions
Precedent to Each Revolving Credit Borrowing.  The obligation of each Lender to make a Revolving Credit Advance
on the occasion of each Revolving Credit Borrowing shall be subject to the
conditions precedent that the Effective Date shall have occurred and on the
date of such Revolving Credit Borrowing the following statements shall be true
(and each of the giving of the applicable Notice of Revolving Credit Borrowing
and the acceptance by the Borrower of the proceeds of such Revolving Credit
Borrowing shall constitute a representation and warranty by the Borrower that
on the date of such Borrowing such 
statements are true):

(a)           the representations and warranties contained in Section
4.01 (except the representations set forth in subsection (f) thereof and in
subsection (h) thereof) are correct in all material respects on and as of the
date of such Revolving Credit Borrowing, before and after giving effect to such
Revolving Credit Borrowing and to the application of the proceeds therefrom, as
though made on and as of such date; and

(b)           no event has occurred and is continuing, or would result
from such Revolving Credit Borrowing or from the application of the proceeds
therefrom, that constitutes a Default.

SECTION
3.03.  Conditions Precedent to
Each Competitive Bid Borrowing.  The
obligation of each Lender that is to make a Competitive Bid Advance on the
occasion of a Competitive Bid Borrowing to make such Competitive Bid Advance as
part of such Competitive Bid Borrowing is subject to the conditions precedent
that (a) the Administrative Agent shall have received the written confirmatory
Notice of Competitive Bid Borrowing with respect thereto,  (b) on or before the date of such
Competitive Bid Borrowing, but prior to such Competitive Bid Borrowing, the
Administrative Agent shall have received a Competitive Bid Note payable to the
order of such Lender for each of the one or more Competitive Bid Advances to be
made by such Lender as part of such Competitive Bid Borrowing, in a principal
amount equal to the principal amount of the Competitive Bid Advance to be
evidenced thereby and otherwise on such terms as were agreed to for such
Competitive Bid Advance in accordance with Section 2.03, and (c) on the date of
such Competitive Bid Borrowing the following statements shall be true (and each
of the giving of the applicable Notice of Competitive Bid Borrowing and the
acceptance by the

 

30

 

Borrower of the proceeds of
such Competitive Bid Borrowing shall constitute a representation and warranty
by the Borrower that on the date of such Competitive Bid Borrowing such
statements are true):

(i)            the
representations and warranties contained in Section 4.01 (except the
representations set forth in subsection (f) thereof and in subsection (h)
thereof) are correct in all material respects on and as of the date of such
Competitive Bid Borrowing, before and after giving effect to such Competitive
Bid Borrowing and to the application of the proceeds therefrom, as though made
on and as of such date; and

(ii)           no
event has occurred and is continuing, or would result from such Competitive Bid
Borrowing or from the application of the proceeds therefrom, that constitutes a
Default.

SECTION 3.04.  Determinations
Under Section 3.01.  For purposes of
determining compliance with the conditions specified in Section 3.01, each
Lender shall be deemed to have consented to, approved or accepted or to be
satisfied with each document or other matter required thereunder to be
consented to or approved by or acceptable or satisfactory to the Lenders unless
an officer of the Administrative Agent responsible for the transactions
contemplated by this Agreement shall have received notice from such Lender
prior to the proposed Effective Date, as notified by the Borrower to the
Lenders, specifying its objection thereto. 
The Administrative Agent shall promptly notify the Borrower and the
other Lenders of the occurrence of any such objection.  The Administrative Agent shall promptly
notify the Borrower and the Lenders of the Effective Date.

SECTION 3.05. 
Labor Dispute.  Notwithstanding
any condition precedent to the contrary contained herein, a labor dispute of
any sort involving employees of the Borrower or its Subsidiaries shall not
prevent the Borrower from borrowing hereunder unless as a result thereof the
Borrower is in violation of the covenant set forth in Section 5.02(d) or a
Default exists under Section 6.01(a) or (e).

ARTICLE IV

 

REPRESENTATIONS AND WARRANTIES

 

SECTION 4.01.  Representations
and Warranties of the Borrower.  The
Borrower represents and warrants as follows:

(a)
          Each of the Loan Parties and the
Subsidiaries of the Borrower (i) is a corporation duly organized, validly
existing and in good standing under the laws of the jurisdiction of its
incorporation, (ii) has the requisite power and authority to own its property
and assets and to carry on its business as now conducted, (iii) is qualified to
do business in every jurisdiction where such qualification is required, except
where the failure so to qualify would not result in a Material Adverse Effect,
(iv) in the case of each of the Loan Parties, has the corporate power and
authority to execute, deliver and perform its obligations under each Loan
Document to which it is or is to be a party and each other agreement or
instrument contemplated thereby to which it is or is to be a party and (v) in

 

31

 

the
case of the Borrower, has the corporate power and authority to borrow under
this Agreement.

 

(b)
          The execution, delivery and
performance by each of the Loan Parties of each Loan Document to which it is or
is to be a party and the consummation of the transactions contemplated thereby
are within such Loan Party’s corporate powers, have been duly authorized by all
necessary corporate action and, if required, stockholder action, and do not (i)
contravene the charter or other constitutive documents or by-laws of such Loan
Party or any Subsidiary of the Borrower, (ii) violate any law or order of any
Governmental Authority or any provision of any indenture, agreement or other
instrument to which any Loan Party or any Subsidiary of the Borrower is a party
or by which any of them or any of their property is or may be bound or
affected, (iii) conflict with, result in a breach of or constitute (alone or
with notice or lapse of time or both) a default under any such indenture,
agreement or other instrument or (iv) result in the creation or imposition of
any Lien upon or with respect to any property or assets now owned or hereafter
acquired by any Loan Partyor any Subsidiary of the Borrower.

 

(c)
          No authorization, approval or
other action by, and no notice to or filing with, any Governmental Authority is
required for the due execution, delivery and performance by any Loan Party of
this Agreement, the Notes or any other Loan Document to which it is or is to be
a party, or for the consummation of the transactions contemplated hereby and
thereby, except for such authorizations, approvals, actions, notices or filings
that have been made or obtained and are in full force and effect.

 

(d)
          This Agreement has been, and
each of the Notes and each other Loan Document when delivered hereunder will
have been, duly executed and delivered by each of the Loan Parties party
thereto.  This Agreement is, and each of
the Notes and each other Loan Document when delivered hereunder will be, the
legal, valid and binding obligation of each of the Loan Parties party thereto
enforceable against such Loan Party in accordance with their respective terms
(subject, as to the enforcement of remedies, to applicable bankruptcy,
reorganization, insolvency, moratorium and similar laws affecting creditors’
rights generally).

 

(e)
          (i) The Consolidated balance
sheet of the Borrower and its Subsidiaries as at December 31, 2002, and the
related Consolidated statements of income and cash flows of the Borrower and
its Subsidiaries for the Fiscal Year then ended, all audited and certified by
Deloitte & Touche LLP, independent public accountants, copies of which have
been furnished to each Lender, fairly present the Consolidated financial
condition of the Borrower and its Subsidiaries at such dates and the Consolidated
results of the operations of the Borrower and its Subsidiaries for the periods
ended on such dates, all in accordance with GAAP consistently applied.  Such balance sheets and the notes thereto
disclose all material liabilities, direct or contingent, of the Borrower and
its Subsidiaries on a Consolidated basis as of the dates thereof.

 

(f)
           There has been no Material
Adverse Change since December 31, 2002.

 

32

 

(g)
          Each of the Borrower and its
Material Subsidiaries has good and marketable title to, or valid leasehold
interests in, all their material properties and assets, except for such
properties as are no longer used or useful in the conduct of their businesses
or as have been disposed of in the ordinary course of business and except for
minor defects in title that do not interfere with the ability of the Borrower
or any of its Material Subsidiaries to conduct its businesses as currently
conducted.  All such properties and
assets are free and clear of Liens, other than Liens expressly permitted by
Section 5.02(b).

 

(h)
          Except as set forth in the
financial statements referred to in subsection (e) of this Section 4.01, there
is no pending or, to the knowledge of the Borrower, threatened action, suit,
investigation, litigation or proceeding affecting the Borrower or any of its
Material Subsidiaries or any business, property or rights of the Borrower or
any Material Subsidiary (i) as to which there is a reasonable possibility of an
adverse determination and which, if adversely determined, could reasonably be
expected to have, individually or in the aggregate, a Material Adverse Effect
or (ii) that purports to affect the legality, validity or enforceability of
this Agreement, any Note or any other Loan Document or the consummation of the
transactions contemplated hereby or thereby. 
Neither the Borrower nor any of its Subsidiaries is in violation of any
law, rule or regulation, or in default with respect to any judgement, writ,
injunction or decree of any Governmental Authority, where such violation or
default could result in a Material Adverse Effect.

 

(i)
           Neither the Borrower nor any of
its Subsidiaries is a party to any agreement or instrument or subject to any
corporate restriction that has resulted or could reasonably be expected to
result in a Material Adverse Effect. 
Neither the Borrower nor any of its Subsidiaries is in default in any
manner under any provision of any indenture or other agreement or instrument evidencing
Debt, or any other material agreement or instrument to which it is a party or
by which it or any of its properties or assets are or may be bound, where such
default could result in a Material Adverse Effect.

 

(j)
           Neither the Borrower nor any of
its Subsidiaries is engaged principally, or as one of its important activities,
in the business of extending credit for the purpose of purchasing or carrying
Margin Stock.  No part of the proceeds
of any Advance will be used, whether directly or indirectly, and whether
immediately, incidentally or ultimately, (i) to purchase or carry Margin Stock
or to extend credit to others for the purpose of purchasing or carrying Margin
Stock or to refund indebtedness originally incurred for such purpose or (ii)
for any purpose which entails a violation of, or which is inconsistent with,
the provisions of the Regulations of the Board of Governors of the Federal
Reserve System, including Regulation T, U or X thereof.

 

(k)
          Neither the Borrower nor any of
its Subsidiaries is (i) an “investment company”, as defined in, or subject to
regulation under, the Investment Company Act of 1940, as amended or (ii) a
“holding company” as defined in, or subject to regulation under, the Public
Utility Holding Company Act of 1935, as amended.

 

(l)
           The Borrower will use the proceeds
of the Advances only as a commercial paper backstop and for lawful general
corporate purposes.

 

33

 

(m)          each
of the Borrower and its Subsidiaries has filed or caused to be filed all
federal, state and local tax returns required to have been filed by it and has
paid or caused to be paid all taxes shown to be due and payable on such returns
or on any assessments received by it, except taxes that are otherwise permitted
in accordance with the provisions of Section 5.01(b).

(n)           No information, report, financial statement, exhibit or
schedule prepared or furnished by or on behalf of the Borrower to the
Administrative Agent, the Documentation Agent, the Arranger or any Lender in
connection with the negotiation of any Loan Document or included therein or
delivered pursuant thereto contained, contains or will contain any material
misstatement of fact or omitted, omits or will omit to state any material fact
necessary to make the statements therein, in the light of the circumstances
under which they were, are or will be made, not misleading.

(o)           Each of the Borrower and its Subsidiaries is in compliance
in all material respects with the applicable provisions of ERISA and the
regulations and published interpretations thereunder that are applicable to the
Borrower and its Subsidiaries.  As of
the date hereof, no Reportable Event has occurred as to which the Borrower or
any of its Subsidiaries was required to file a report with the PBGC, and no
material unfunded vested liabilities exist under any Plan.

(p)           Each of the Borrower and its Subsidiaries is in substantial
compliance with all applicable federal, state and local environmental laws,
regulations and ordinances governing its business, properties or assets with respect
to discharges into the ground and surface water, emissions into the ambient air
and generation, storage, transportation and disposal of waste materials or
process by-products, except such noncompliances as are not likely to have a
Material Adverse Effect.  All licenses,
permits or registrations required for the business of the Borrower and its
Subsidiaries under any federal, state or local environmental laws, regulations
or ordinances have been secured, and the Borrower and each Subsidiary are in
substantial compliance therewith, except such licenses, permits or
registrations the failure to secure or to comply therewith are not likely to
have a Material Adverse Effect.

ARTICLE
V

 

COVENANTS OF THE BORROWER

 

SECTION 5.01.  Affirmative
Covenants.  So long as any Advance
shall remain unpaid or any Lender shall have any Commitment hereunder, the
Borrower will, and will cause each of its Material Subsidiaries to, unless the
Required Lenders shall otherwise consent in writing:

(a)
          Compliance with Laws, Etc.  Comply with all applicable laws, rules,
regulations and orders of any Governmental Authority, whether now in effect or
hereafter enacted, such compliance to include, without limitation, compliance
with ERISA and applicable environmental laws, except for such noncompliance as
would not result in a Material Adverse Effect.

 

34

 

(b)
          Payment of Taxes, Etc.  Pay and discharge promptly when due all
taxes, assessments and governmental charges or levies imposed upon it or upon
its income or profits or in respect of its property, before the same shall
become delinquent or in default, as well as all lawful claims for labor,
materials and supplies or otherwise that, if unpaid, might give rise to a Lien
upon such properties or any part thereof; provided, however, that such payment
and discharge shall not be required with respect to any such tax, assessment,
charge, levy or claim so long as the validity or amount thereof shall be
contested in good faith by appropriate proceedings or where the failure to pay
such tax, assessment, charge, levy or claim would not (i) result in a Material
Adverse Effect or (ii) result in the imposition of any lien securing a material
amount in favor of any party entitling such party to priority of payment over
the Lenders, and the Borrower or such Subsidiary shall, to the extent required
by generally accepted accounting principles applied on a consistent basis, have
set aside on its books adequate reserves with respect thereto.

 

(c)
          Maintenance of Insurance.  (i) Keep its insurable properties adequately
insured at all times by financially sound and reputable insurers, (ii) maintain
such other insurance, to such extent and against such risks, including fire and
other risks insured against by extended coverage, as is customary with
companies in the same or similar businesses, including public liability
insurance against claims for personal injury or death or property damage
occurring upon, in, about or in connection with the use of any properties owned,
occupied or controlled by the Borrower or any of its Subsidiaries, in such
amount as the Borrower or such Subsidiary shall reasonably deem necessary and
(iii) maintain such other insurance as may be required by law or as may be
reasonably requested by the Lenders for purposes of assuring compliance with
this Section 5.01(c) (it being understood that the Borrower may self-insure
against certain risks to the extent customary with companies similarly situated
and in the same or similar lines of business).

 

(d)
          Preservation of Corporate
Existence, Etc.  Preserve and
maintain, and cause its Subsidiaries to preserve and maintain, its corporate
existence; obtain, preserve, renew, extend and keep in full force and effect
the rights, licenses, permits, franchises, authorizations, patents, copyrights,
trademarks and tradename material to the conduct of its business (unless the
failure to so preserve or renew would not result in a Material Adverse Effect);
and maintain and operate, and cause its Subsidiaries to maintain and operate,
its businesses in materially the same manner in which they are currently
conducted and operated; provided, however, that the Borrower and its
Subsidiaries may consummate any merger or consolidation permitted under Section
5.02(e).

 

(e)
          Visitation Rights.  At any reasonable time and from time to
time, upon ten Business Days’ prior notice, permit the Administrative Agent or
any Lender (other than a Designated Bidder) or any agents or representatives
thereof, to examine and make copies of and abstracts from the records and books
of account of, and visit the properties of, the Borrower and any of its
Subsidiaries, and to discuss the affairs, finances and accounts of the Borrower
and any of its Subsidiaries (i) with any of their officers and (ii) with their
independent certified public accountants, in the presence of one or more
officers of the Borrower if so requested by the Borrower (it being understood
that information obtained by the Lenders pursuant to this Section 5.01(e) shall
be kept confidential except to the

 

35

 

extent that any such
information becomes public or is required to be disclosed by law or requested
to be disclosed by any Governmental Authority; provided that such information
may be disclosed to the same extent that other Confidential Information may be
disclosed pursuant to Section 8.08).

 

(f)
           Keeping of Books.   Keep, and cause each of its Subsidiaries to
keep, proper books of record and account, in which full and correct entries
shall be made of all financial transactions and the assets and business of the
Borrower and each such Subsidiary in accordance with generally accepted
accounting principles in effect from time to time.

 

(g)
          Maintenance of Properties,
Etc.  Maintain and preserve all of
its properties material to the conduct of its business in good repair, working
order and condition, ordinary wear and tear excepted, and from time to time
make, or cause to be made, all needful and proper repairs, renewals, additions,
improvements and replacements thereto necessary in order that the business
carried on in connection therewith may be properly conducted at all times.

 

(h)
          Reporting Requirements.  In the case of the Borrower, furnish to each
Agent and each Lender (other than a Designated Bidder):

 

(i)            within
120 days after the end of each Fiscal Year of the Borrower, Consolidated
balance sheets of the Borrower and its Subsidiaries showing the financial
condition of the Borrower and its Subsidiaries as of the close of such Fiscal
Year and the related statements of Consolidated income and statements of
Consolidated cash flow as of and for such Fiscal Year, all such Consolidated
financial statements of the Borrower and its Subsidiaries to be reported on by
Deloitte & Touche or other independent accountants acceptable to the
Required Lenders, and to be in form reasonably acceptable to the Required
Lenders;

(ii)           within
60 days after the end of the first three fiscal quarters of each Fiscal Year,
unaudited Consolidated balance sheets and statements of Consolidated income and
statements of Consolidated cash flow showing the financial condition and
results of operations of the Borrower as of the end of each such quarter and,
with respect to statements of Consolidated cash flow, for the then-elapsed
portion of the Fiscal Year, certified by a Financial Officer of the Borrower as
presenting fairly the financial position and results of operations of the
Borrower on a Consolidated basis and as having been prepared in accordance with
GAAP, in each case subject to normal year-end audit adjustments;

(iii)          promptly
after the same become publicly available, copies of (A) such annual, periodic
and other reports, and such proxy statements and other information as shall be
filed by the Borrower or any Material Subsidiary with the Securities and
Exchange Commission pursuant to the requirements of the Exchange Act and (B)
such registration statements filed by the Borrower or any Material Subsidiary
pursuant to the requirements of Securities Act of 1933, as

 

36

 

amended,
other than any such registration statements filed on Form S-8 or any comparable
form;

(iv)          concurrently
with subsections (h)(i) and (h)(ii) of this Section 5.01, a certificate of a Financial
Officer of the Borrower stating compliance, as of the dates of the financial
statements being furnished at such time, with the covenants set forth in
Sections 5.02(a) and (d);

(v)           concurrently
with subsections (h)(i) and (h)(ii) of this Section 5.01, a certificate of the
Person referred to therein (which certificate furnished by the independent
accountants referred to in subsection (h)(i) of this Section 5.01 may be
limited to accounting matters and disclaim responsibility for legal
interpretations) certifying that to the best of his, her or its knowledge no
Default or Event of Default has occurred and, in the case of a certificate of a
Financial Officer of the Borrower, if such a Default or Event of Default has
occurred, specifying the nature and extent thereof and any corrective action
taken or proposed to be taken with respect thereto;

(vi)          prompt
written notice of any Default, specifying the nature and extent thereof and any
corrective action taken or proposed to be taken with respect thereto;

(vii)        
prompt written notice of the filing or commencement of, or any threat or notice
of intention of any Person to file or commence, any action, suit, arbitration
proceeding or other proceeding, whether at law or in equity or by or before any
Governmental Authority, against the Borrower or any Subsidiary thereof that, if
adversely determined, could result in a Material Adverse Effect;

(viii)        prompt
written notice of any development in the business or affairs of the Borrower or
any of its Subsidiaries that has resulted in or which is likely, in the
reasonable judgment of the Borrower, to result in a Material Adverse Effect (it
being understood that material provided to any Agent or Lender pursuant to this
subsection (h)(viii) of this Section 5.01 shall be kept confidential except to
the extent that any such material becomes public or is required to be disclosed
by law or requested to be disclosed by any Governmental Authority having
jurisdiction over such Agent or Lender; provided that such information may be
disclosed to the same extent that other Confidential Information may be
disclosed pursuant to Section 8.08);

(ix)           prompt
written notice of the issuance by any Governmental Authority of any injunction,
order, decision or other restraint prohibiting, or having the effect of
prohibiting, the making of the Advances or the initiation of any litigation or
similar proceedings seeking any such injunction, order or other restraint;

(x)            prompt
written notice of any Change of Control;

 

37

 

(xi)           prompt
written notice of any change in the identity of the Principal Properties from
those set forth on the schedule to be delivered pursuant to Section 5.01(j)
after the date such schedule is delivered to the Administrative Agent and each
Lender; and

(xii)          prompt
written notice of any change in the identity of the Restricted Subsidiaries
from those set forth on the schedule to be delivered pursuant to Section
5.01(j) after the date such schedule is delivered to the Administrative Agent
and each Lender.

(i)            Compliance with ERISA.  Comply in all material respects with the applicable provisions of
ERISA and furnish to the Administrative Agent, the Documentation Agent and each
Lender (other than a Designated Bidder) (i) as soon as possible, and in any
event within 30 days after any Financial Officer of the Borrower knows or has
reason to know that any Reportable Event has occurred that alone or together
with any other Reportable Event with respect to the same or another Plan could
reasonably be expected to result in liability of the Borrower or any Subsidiary
to the PBGC in an aggregate amount exceeding $1,000,000, a statement of a
Financial Officer setting forth details as to such Reportable Event and the
action proposed to be taken with respect thereto, together with a copy of the
notice, if any, of such Reportable Event given to the PBGC and (ii) promptly
after receipt thereof, a copy of any notice the Borrower or any Subsidiary may
receive from the PBGC relating to the intention of the PBGC to terminate any
Plan or Plans or to appoint a trustee to administer any Plan or Plans.

(j)            Principal Properties; Restricted Subsidiaries.  Promptly deliver to the Administrative Agent
and each Lender (other than a Designated Bidder) on the date on which the
Borrower’s Public Debt Rating is lower than S&P AA- or Moody’s AA3, a
schedule setting forth each Principal Property and each Restricted Subsidiary
as of such date.

SECTION 5.02.  Negative
Covenants.  So long as any Advance
shall remain unpaid or any Lender shall have any Commitment hereunder, the
Borrower will not, and will not permit any of its Subsidiaries to, without the
written consent of the Required Lenders:

(a)
          Secured Indebtedness.  In the case of the Borrower and each of its
Restricted Subsidiaries, create, assume, incur or guarantee, or permit any
Restricted Subsidiary to create, assume, incur or guarantee (each such
creation, assumption, incurrence or guarantee being an “Incurrence”),
any Secured Indebtedness without making provision whereby all amounts
outstanding under this Agreement and each other Loan Document shall be secured
equally and ratably with (or prior to) such Secured Indebtedness (together
with, if the Borrower shall so determine, any other Debt of the Borrower or such
Restricted Subsidiary then existing or thereafter created that is not
subordinate to such amounts outstanding under this Agreement and the other Loan
Documents) so long as such Secured Indebtedness shall be outstanding, unless
such Secured Indebtedness, when added to (i) the aggregate amount of all
Secured Indebtedness then outstanding (not including in this computation (A)
any Secured Indebtedness if all amounts outstanding under this Agreement and
each other Loan

 

38

 

 

Document are secured equally
and ratably with (or prior to) such Secured Indebtedness and (B) any Secured
Indebtedness that is concurrently being retired) and (ii) the aggregate amount
of all Attributable Debt then outstanding pursuant to Sale and Leaseback
Transactions entered into by the Borrower after December 1, 1989, or entered
into by any Restricted Subsidiary after December 1, 1989, or, if later, the
date on which such Subsidiary became a Restricted Subsidiary (not including in
this computation any Attributable Debt that is currently being retired) would
not exceed 10% of Consolidated Net Tangible Assets at the time of such
Incurrence.

 

(b)
          Liens, Etc.  In the case of the Borrower and each of the
Restricted Subsidiaries, create, incur, assume or permit to exist any Lien on
any property or assets (including stock or other securities of any Person,
including any Subsidiary) now owned or hereafter acquired, or assign or convey
any rights to or security interests in any future revenue, except:

 

(i)            Liens
on property or assets of the Borrower and its Subsidiaries existing on the date
hereof and (A) disclosed in the financial statements referred to in Section
4.01(e) or (B) securing Debt in an aggregate principal amount not in excess of
$50,000,000; provided that such Liens shall secure only those obligations which
they secure on the date hereof;

(ii)           any
Lien existing on any property or asset prior to the acquisition thereof by the
Borrower or any Subsidiary; provided
that (A) such Lien is not created in contemplation of or in connection with
such acquisition and (B) such Lien does not apply to any other property or
assets of the Borrower or any Subsidiary;

(iii)          carriers’,
warehousemen’s, mechanics’, materialmen’s, repairmen’s or other like Liens
arising in the ordinary course of business and securing obligations that are
not due or which are otherwise allowed in accordance with the provisions of
Section 5.01(b);

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

(v)           deposits
to secure the performance of bids, trade contracts (other than for Debt),
leases (other than Capital Lease Obligations), statutory obligations, surety
and appeal bonds, performance bonds and other obligations of a like nature
incurred in the ordinary course of business;

(vi)          zoning
restrictions, easements, rights-of-way, restrictions on use of real property
and other similar encumbrances incurred in the ordinary course of business
that, in the aggregate, are not substantial in amount and do not materially
detract from the value of the property subject thereto or interfere with the
ordinary conduct of the business of the Borrower or any of its Subsidiaries;

 

39

 

(vii)         Liens
upon any property acquired, constructed or improved by the Borrower or any
Subsidiary that are created or incurred contemporaneously with acquisition,
construction or improvement to secure or provide for the payment of any part of
the purchase price of such property or the cost of such construction or
improvement (but no other amounts); provided that any such Lien shall not apply
to any other property of the Borrower or any Subsidiary;

(viii)        Liens
securing the payment of taxes, assessments and governmental charges or levies,
either (A) not delinquent or (B) permitted in accordance with Section 5.01(b);

(ix)          
Liens on the property or assets of any Subsidiary in favor of the Borrower or
another Subsidiary;

(x)            extensions,
renewals and replacements of Liens referred to in subsections (b)(i) through
(b)(ix) of this Section 5.02; provided
that any such extension, renewal or replacement Lien shall be limited to the
property or assets covered by the Lien extended, renewed or replaced and that
the obligations secured by any such extension, renewal or replacement Lien
shall be in an amount not greater than the amount of the obligations secured by
the Lien extended, renewed or replaced;

(xi)           Liens
in connection with Debt permitted to be incurred pursuant to subsections (a)
and (c) of this Section 5.02;

(xii)         
Liens in connection with Debt incurred in the ordinary course of business in
connection with workmen’s compensation, unemployment insurance and other social
security laws or regulations;

(xiii)         any
attachment or judgment Lien not in excess of $50,000,000 unless (A) enforcement
proceedings shall have been commenced by any creditor upon such attachment or
judgment or (B) there shall be any period of 45 consecutive days during which a
stay of enforcement of such attachment or judgment, by reason of a pending
appeal or otherwise, shall not be in effect;

(xiv)        other
Liens securing Debt in an aggregate principal amount not to exceed 1% of
Consolidated Net Worth at any time outstanding; and

(xv)         Liens
arising in connection with rights of setoff that commercial banks and other
financial institutions obtain against monies, securities or other properties of
the Borrower and its Restricted Subsidiaries in possession of or on deposit
with such banks or financial institutions, whether in general or special
deposit accounts or held for safekeeping, transmission, collection or
otherwise; and

(xvi)       
Liens on aircraft, airframes or aircraft engines, aeronautic equipment or
computers and electronic data processing equipment.

 

40

 

(c)           Sale and Lease-Back Transactions.  In the case of the Borrower and its
Restricted Subsidiaries, enter into any Sale and Leaseback Transaction unless
at such time it would be permitted to enter into such Sale and Leaseback
Transaction pursuant to Section 1006 of the Debenture Indenture.

(d)           Consolidated Net Worth.  In the case of the Borrower, permit its Consolidated Net Worth at
any time to be less than $3.0 billion; provided,
however, that the Borrower shall be permitted to have a Consolidated
Net Worth of not less than $2.5 billion for a single period during the term of
this Agreement of not more than 12 months’ duration.

(e)           Mergers, Etc. 
Merge or consolidate with or into, or convey, transfer, lease or
otherwise dispose of (whether in one transaction or in a series of
transactions) all or substantially all of its assets (whether now owned or
hereafter acquired) to, any Person, or permit another Person to merge into it,
or acquire all or substantially all of the assets of any other Person, except
that (i) any Subsidiary of the Borrower may merge into the Borrower or any
other Subsidiary of the Borrower, (ii) the Borrower or any Subsidiary of the
Borrower may merge or consolidate with or into any other Person so long as the
Borrower or such Subsidiary is the surviving corporation, and (iii) the
Borrower and any of its Subsidiaries may acquire all or substantially all of
the assets of another Person; provided
that any Subsidiary that is not a Guarantor may not acquire all or
substantially all of the assets of a Guarantor unless such Subsidiary duly
executes a guaranty in favor of the Lenders in substantially the form of
Exhibit E hereto; and provided further, in each case, that no Default shall
have occurred and be continuing at the time of such proposed transaction or
would result therefrom.

ARTICLE VI

 

EVENTS
OF DEFAULT

 

SECTION 6.01.  Events
of Default.  If any of the following
events (“Events of Default”) shall occur and be continuing:

(a)           the Borrower shall fail to pay (i) any principal of any
Advance when the same becomes due and payable or (ii) any interest on any
Advance or any other amount payable under this Agreement or any Note when the
same becomes due and payable and such failure to pay such interest or such
other amount shall remain unremedied for three Business Days; or

(b)
          any representation or warranty
made or deemed made by any Loan Party (or any of its officers) in or in
connection with any Loan Document or any Borrowing under this Agreement, or any
representation, warranty, statement or information contained in any report,
certificate, financial statement or other instrument furnished in connection
with or pursuant to any Loan Document, shall prove to have been incorrect in
any material respect when made or deemed made; or

 

41

 

(c)
          the Borrower or any of its
Subsidiaries shall fail to perform or observe (i) any term, covenant or
agreement contained in subsection (a), (d), (e), (f), (g) or (h) (other than
subsections (h)(i) through (h)(v)) of Section 5.01 or Section 5.02 or (ii) any
other term, covenant or agreement contained in any Loan Document on its part to
be performed or observed if such failure to perform such other term, covenant
or agreement shall remain unremedied for 30 days after written notice thereof
shall have been given to the Borrower or such Subsidiary, as the case may be,
by the Administrative Agent; or

 

(d)
          the Borrower or any of its
Subsidiaries shall fail to pay any principal of or premium or interest on any
Debt that is outstanding in a principal amount of at least $100,000,000 in the
aggregate (but excluding Debt evidenced by the Notes) of the Borrower or such
Subsidiary (as the case may be), when the same becomes due and payable (whether
at maturity, by acceleration or otherwise), and such failure shall continue
after the applicable grace period, if any, specified in the agreement or instrument
relating to such Debt; or any other event shall occur or condition shall exist
under any agreement or instrument relating to any such Debt and shall continue
after the applicable grace period, if any, specified in such agreement or
instrument, if the effect of such event or condition is to accelerate (with or
without notice or lapse of time or both), or to permit the acceleration (with
or without notice or lapse of time or both) of, the maturity of such Debt; or

 

(e)
          the Borrower or any of its
Material Subsidiaries shall generally not pay its debts as such debts become
due, or shall admit in writing its inability to pay its debts generally, or
shall make a general assignment for the benefit of creditors; or any proceeding
shall be instituted by or against the Borrower or any of its Material
Subsidiaries seeking to adjudicate it a bankrupt or insolvent, or seeking
liquidation, winding up, reorganization, arrangement, adjustment, protection,
relief, or composition of it or its debts under any law relating to bankruptcy,
insolvency or reorganization or relief of debtors, or seeking the entry of an
order for relief or the appointment of a receiver, trustee, custodian or other
similar official for it or for any substantial part of its property and, in the
case of any such proceeding instituted against it (but not instituted by it),
either such proceeding shall remain undismissed or unstayed for a period of 60
days, or any of the actions sought in such proceeding (including, without
limitation, the entry of an order for relief against, or the appointment of a
receiver, trustee, custodian or other similar official for, it or for any
substantial part of its property) shall occur; or the Borrower or any of its
Material Subsidiaries shall take any corporate action to authorize any of the
actions set forth above in this subsection (e); or

 

(f)
           any final judgment or order for
the payment of money in excess of $50,000,000 in the aggregate shall be
rendered against the Borrower or any of its Subsidiaries or any combination
thereof and either (i) enforcement proceedings shall have been commenced by any
creditor upon such judgment or order or (ii) there shall be any period of 45
consecutive days during which a stay of enforcement of such judgment or order,
by reason of a pending appeal or otherwise, shall not be in effect; or

 

(g)
          any Change of Control shall have
occurred; or

 

42

 

(h)           a Reportable Event or Reportable Events, or a failure to
make a required installment or other payment (within the meaning of Section
412(n)(1) of the Internal Revenue Code), shall have occurred with respect to
any Plan or Plans that reasonably could be expected to result in liability of
the Borrower or any Subsidiary to the PBGC or to a Plan in an aggregate amount
exceeding $25,000,000 and, within 30 days after the reporting of any such
Reportable Event or Reportable Events to the Administrative Agent, the
Administrative Agent shall have notified the Borrower, in writing that (i) the
Required Lenders have made a determination that, on the basis of such
Reportable Event or Reportable Events or the failure to make a required
payment, there are reasonable grounds (A) for the termination of such Plan or
Plans by the PBGC or (B) for the appointment by the appropriate United States
District Court of a trustee to administer such Plan or Plans and (ii) as a
result thereof, an Event of Default exists hereunder; or the PBGC shall have
instituted proceedings to terminate any Plan or Plans with vested unfunded
liabilities aggregating in excess of $25,000,000; or a trustee shall be
appointed by a United States District Court to administer any such Plan or
Plans and the Borrower is being requested to make a payment with respect to
vested unfunded liabilities aggregating in excess of $25,000,000; or

(i)            (i) any senior debt securities of the Borrower shall
become rated lower than BBB- (or the equivalent thereof) by S&P or lower
than Baa3 (or the equivalent thereof) by Moody’s and such ratings shall remain
in effect for a period of 90 days (it being understood that if either S&P
or Moody’s (but not both such rating agencies) shall cease to rate the senior
debt securities of the Borrower, then the occurrence of the event described in
this subsection (i)(i) shall be determined solely by reference to the rating
assigned to the senior debt securities of the Borrower by the rating agency
continuing to rate such securities) or (ii) the senior debt securities of the
Borrower shall cease to be rated by both S&P and Moody’s; or

(j)            this Agreement, the Guaranty or any other Loan Document
shall for any reason cease to be, or shall be asserted by the Borrower, any
Guarantor or any other Subsidiary of the Borrower not to be, a legal, valid and
binding obligation of any party thereto (other than the Administrative Agent or
any Lender), enforceable in accordance with its terms, except as otherwise
permitted by Section 5.02(e);

then, and in any such event, the Administrative Agent (i) shall at the
request, or may with the consent, of the Required Lenders, by notice to the
Borrower, declare the obligation of each Lender to make Advances to be
terminated, whereupon the same shall forthwith terminate, and (ii) shall at the
request, or may with the consent, of the Required Lenders, by notice to the
Borrower, declare the Notes, all interest thereon and all other amounts payable
under this Agreement to be forthwith due and payable, whereupon the Notes, all
such interest and all such amounts shall become and be forthwith due and
payable, without presentment, demand, protest or further notice of any kind,
all of which are hereby expressly waived by the Borrower; provided, however,
that in the event of an actual or deemed entry of an order for relief with
respect to the Borrower or any of its Subsidiaries under the Federal Bankruptcy
Code, (A) the obligation of each Lender to make Advances shall automatically be
terminated and (B) the Notes, all such interest and all such amounts shall
automatically become and be due and payable,

 

43

 

without presentment, demand,
protest or any notice of any kind, all of which are hereby expressly waived by
the Borrower.

ARTICLE
VII

 

THE AGENTS

 

SECTION 7.01.  Authorization
and Action.  Each Lender hereby
appoints and authorizes (a) the Administrative Agent to take such action as
agent on its behalf and to exercise such powers and discretion under this
Agreement as are delegated to the Administrative Agent by the terms hereof,
together with such powers and discretion as are reasonably incidental thereto,
and (b) the Documentation Agent to take such action as agent on its behalf and
to exercise such powers and discretion under this Agreement as are delegated to
the Documentation Agent by the terms hereof, together with such powers and
discretion as are reasonably incidental thereto.  As to any matters not expressly provided for by this Agreement
(including, without limitation, enforcement or collection of the Notes), the
Administrative Agent shall not be required to exercise any discretion or take
any action, but shall be required to act or to refrain from acting (and shall
be fully protected in so acting or refraining from acting) upon the
instructions of the Required Lenders, and such instructions shall be binding
upon all Lenders and all holders of Notes; provided,
however, that the Administrative Agent shall not be required to take
any action that exposes the Administrative Agent to personal liability or that
is contrary to this Agreement or applicable law.  The Administrative Agent agrees to give to each Lender prompt
notice of each notice given to it by the Borrower or any of its Subsidiaries
pursuant to the terms of this Agreement.

SECTION
7.02.   Administrative Agent’s
Reliance, Etc.  Neither the
Administrative Agent or the Documentation Agent nor any of its respective
directors, officers, agents or employees shall be liable for any action taken
or omitted to be taken by it or them under or in connection with this
Agreement, except for its or their own gross negligence or willful
misconduct.  Without limitation of the
generality of the foregoing, the Administrative Agent and the Documentation
Agent:  (i) may treat the payee of any
Note as the holder thereof until the Administrative Agent receives and accepts
an Assignment and Acceptance entered into by the Lender that is the payee of
such Note, as assignor, and an Eligible Assignee, as assignee, as provided in
Section 8.07; (ii) may consult with legal counsel (including counsel for the
Borrower), independent public accountants and other experts selected by it and
shall not be liable for any action taken or omitted to be taken in good faith
by it in accordance with the advice of such counsel, accountants or experts;
(iii) make no warranty or representation to any Lender and shall not be
responsible to any Lender for any statements, warranties or representations
(whether written or oral) made in or in connection with this Agreement; (iv)
shall not have any duty to ascertain or to inquire as to the performance or
observance of any of the terms, covenants or conditions of this Agreement on
the part of the Borrower or any of its Subsidiaries or to inspect the property
(including the books and records) of the Borrower or any of its Subsidiaries;
(v) shall not be responsible to any Lender for the due execution, legality,
validity, enforceability, genuineness, sufficiency or value of this Agreement
or any other instrument or document furnished pursuant hereto; and (vi) shall
incur no liability under or in respect of this Agreement by acting upon any
notice, consent, certificate or other instrument or writing (which may be by

 

44

 

telecopier, telegram or
telex) believed by it to be genuine and signed or sent by the proper party or
parties.

SECTION 7.03.  Citibank,
B of A, Bank One and Their Affiliates. 
With respect to its Commitment, the Advances made by it and the Note
issued to it, each of Citibank, B of A and Bank One shall have the same rights
and powers under this Agreement as any other Lender and may exercise the same
as though it were not the Administrative Agent or a Co-Documentation Agent,
respectively; and the term “Lender” or “Lenders” shall, unless otherwise
expressly indicated, include each of Citibank, B of A and Bank One in its
individual capacity.  Citibank, B of A,
Bank One and their Affiliates may accept deposits from, lend money to, act as
trustee under indentures of, accept investment banking engagements from and
generally engage in any kind of business with, the Borrower, any of its
Subsidiaries and any Person who may do business with or own securities of the
Borrower or any such Subsidiary, all as if Citibank, B of A, Bank One and their
Affiliates were not the Administrative Agent or a Co-Documentation Agent, respectively,
and without any duty to account therefor to the Lenders.

SECTION 7.04.  Lender
Credit Decision.  Each Lender
acknowledges that it has, independently and without reliance upon the
Administrative Agent or any other Lender and based on the financial statements
referred to in Section 4.01 and such other documents and information as it has
deemed appropriate, made its own credit analysis and decision to enter into
this Agreement.  Each Lender also
acknowledges that it will, independently and without reliance upon the
Administrative Agent or any other Lender and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit decisions in taking or not taking action under this Agreement.

SECTION
7.05.  Indemnification.  The Lenders (other than the Designated
Bidders) agree to indemnify each of the Administrative Agent, the Documentation
Agent and their respective Affiliates (to the extent not reimbursed by the
Borrower), ratably according to the respective principal amounts of the
Revolving Credit Notes then held by each of them (or if no Revolving Credit
Notes are at the time outstanding or if any Revolving Credit Notes are held by
Persons that are not Lenders, ratably according to the respective amounts of their
Commitments), from and against any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
of any kind or nature whatsoever that may be imposed on, incurred by, or
asserted against the Administrative Agent, the Documentation Agent or such
Affiliate in any way relating to or arising out of this Agreement or any action
taken or omitted by the Administrative Agent or the Documentation Agent under
this Agreement (collectively, the “Indemnified Costs”), provided that no Lender shall be liable
for any portion of such Indemnified Costs resulting from the Administrative
Agent’s, the Documentation Agent’s or such Affiliate’s gross negligence or
willful misconduct.  Without limitation
of the foregoing, each Lender (other than the Designated Bidders) agrees to
reimburse the Administrative Agent, the Documentation Agent and their
respective Affiliates promptly upon demand for its ratable share of any
out-of-pocket expenses (including counsel fees and disbursements) incurred by
the Administrative Agent, the Documentation Agent or such Affiliate in
connection with the preparation, execution, delivery, administration,
modification, amendment or enforcement (whether through negotiations, legal
proceedings or otherwise) of, or legal advice in respect of rights or
responsibilities under, this Agreement, to the extent that the Administrative
Agent, the Documentation Agent or such Affiliate is not reimbursed for such
expenses by the

 

45

 

Borrower.  In the case of any investigation, litigation
or proceeding giving rise to any Indemnified Costs, this Section 7.05 applies
whether any such investigations, litigation or proceeding is brought by the
Administrative Agent, any Lender or a third party.

SECTION 7.06.  Successor
Agents.  The Administrative Agent or
the Documentation Agent may resign at any time by giving written notice thereof
to the Lenders and the Borrower and may be removed at any time with or without
cause by the Required Lenders.  Upon any
such resignation or removal, the Required Lenders shall have the right to
appoint a successor Administrative Agent or Documentation Agent, as the case
may be, with the approval of the Borrower so long as no Event of Default
exists, such approval not to be unreasonably withheld or delayed.  If no successor Administrative Agent or
Documentation Agent, as the case may be, shall have been so appointed by the
Required Lenders, and shall have accepted such appointment, within 30 days
after the retiring Administrative Agent’s or Documentation Agent’s giving of
notice of resignation or the Required Lenders’ removal of the retiring
Administrative Agent or Documentation Agent, then the retiring Administrative
Agent or Documentation Agent may, on behalf of the Lenders, with the approval
of the Borrower, such approval not to be unreasonably withheld, appoint a
successor Administrative Agent or Documentation Agent, as the case may be,
which shall be a commercial bank organized under the laws of the United States
of America or of any State thereof and having a combined capital and surplus of
at least $500,000,000.  Upon the
acceptance of any appointment as Administrative Agent or Documentation Agent
hereunder by a successor Administrative Agent or Documentation Agent, as the
case may be, such successor Administrative Agent or Documentation Agent shall
thereupon succeed to and become vested with all the rights, powers, discretion,
privileges and duties of the retiring Administrative Agent or Documentation
Agent, and the retiring Administrative Agent or Documentation Agent shall be
discharged from its duties and obligations under this Agreement.  After any retiring Administrative Agent’s or
Documentation Agent’s resignation or removal hereunder as Administrative Agent
or Documentation Agent, the provisions of this Article VII shall inure to its
benefit as to any actions taken or omitted to be taken by it while it was
Administrative Agent or Documentation Agent under this Agreement.

SECTION 7.07.  Documentation
Agent.  The Documentation Agent
shall not have any duty in connection with this Agreement and the other Loan
Documents except as expressly set forth herein or in the other Loan Documents.

ARTICLE VIII

 

MISCELLANEOUS

 

SECTION
8.01.  Amendments, Etc.  No amendment or waiver of any provision of
this Agreement or the Revolving Credit Notes, nor consent to any departure by
the Borrower therefrom, shall in any event be effective unless the same shall
be in writing and signed by the Required Lenders, and then such waiver or
consent shall be effective only in the specific instance and for the specific
purpose for which given; provided, however,
that no amendment, waiver or consent shall, unless in writing and signed by all
the Lenders (other than the Designated Bidders), do any of the following:  (a) waive any of the conditions specified in
Section 3.01, 3.02 or 3.03, (b) except as permitted in accordance with Section
2.16, increase the Commitments of the Lenders or subject the Lenders to any
additional obligations, (c) reduce the principal of, or

 

46

 

interest on, the Revolving
Credit Notes or any fees or other amounts payable hereunder, (d) except as
permitted in accordance with Section 2.16, postpone any date fixed for any
payment of principal of, or interest on, the Revolving Credit Notes or any fees
or other amounts payable hereunder, (e) change the percentage of the
Commitments or of the aggregate unpaid principal amount of the Revolving Credit
Notes, or the number of Lenders, that shall be required for the Lenders or any
of them to take any action hereunder, (f) except as permitted in accordance
with Section 5.02(e), release any Guarantor under the Guaranty or (g) amend
this Section 8.01; and provided further
that no amendment, waiver or consent shall, unless in writing and signed by the
Administrative Agent or the Documentation Agent in addition to the Lenders
required above to take such action, affect the rights or duties of the
Administrative Agent or Documentation Agent, as the case may be, under this
Agreement or any Note.

SECTION 8.02.  Notices,
Etc.  All notices and other
communications provided for hereunder shall be in writing (including
telecopier, telegraphic or telex communication) and mailed, telecopied,
telegraphed, telexed or delivered, if to the Borrower, at its address at 55
Glenlake Parkway, N.E., Atlanta, Georgia 30328, Attention: Financial Resources
Department (telecopier number (404) 828-6562); if to any Initial Lender, at its
Domestic Lending Office specified opposite its name on Schedule I hereto; if to
any other Lender, at its Domestic Lending Office specified in the Assignment
and Acceptance pursuant to which it became a Lender; if to the Administrative
Agent, at its address at Two Penns Way, Suite 200, New Castle, Delaware 19720,
Attention: Pat Dimery (telecopier number (302) 894-6120), with a copy to 400
Perimeter Center Terrace, Suite 600, Atlanta, Georgia 30346, Attention: Bruce
Simmons (telecopier number (770) 668-8137); if to B of A as a Co-Documentation
Agent, at its address at 901 Main Street, 14th Floor, Dallas, Texas
75202, Attention: Betty Canales (telecopier number (214) 290-8377); and if to
Bank One as a Co-Documentation Agent, at its address at 1 Bank One Plaza, Chicago,
Illinois 60670, Attention: Mark Gibbs (telecopier number (312) 732-1117; or, as
to the Borrower or the Administrative Agent, at such other address as shall be
designated by such party in a written notice to the other parties and, as to
each other party, at such other address as shall be designated by such party in
a written notice to the Borrower and the Administrative Agent.  All such notices and communications shall,
when mailed, telecopied, telegraphed or telexed, be effective when deposited in
the mails, telecopied, delivered to the telegraph company or confirmed by telex
answerback, respectively, except that notices and communications to the
Administrative Agent pursuant to Article II, III or VII shall not be effective
until received by the Administrative Agent.

SECTION 8.03.  No
Waiver; Remedies.  No failure on the
part of any Lender, the Administrative Agent or the Documentation Agent to
exercise, and no delay in exercising, any right, power or privilege hereunder
or under any Note shall operate as a waiver thereof; nor shall any single or
partial exercise of any such right, power or privilege preclude any other or
further exercise thereof or the exercise of any other right, power or
privilege.  The remedies herein provided
are cumulative and not exclusive of any remedies provided by law.

SECTION
8.04.  Costs and Expenses.  (a) 
The Borrower agrees to pay on demand all reasonable out-of-pocket costs
and expenses of the Administrative Agent and Citigroup Global Markets Inc. in
connection with the preparation, execution, delivery, administration,
modification and amendment of this Agreement, the Notes, each other Loan
Document and the other documents to be delivered hereunder, including, without
limitation, (i)

 

47

 

all due diligence,
syndication (including printing, distribution and bank meetings),
transportation, computer, duplication, appraisal, consultant, and audit
expenses and (ii) the reasonable fees and expenses of counsel for the
Administrative Agent with respect thereto and with respect to advising the
Administrative Agent as to its rights and responsibilities under this
Agreement.  The Borrower further agrees
to pay on demand all costs and expenses of the Administrative Agent, the
Documentation Agent and the Lenders, if any (including, without limitation,
reasonable counsel fees and expenses), in connection with the enforcement
(whether through negotiations, legal proceedings or otherwise) of this
Agreement, the Notes, each other Loan Document and the other documents to be
delivered hereunder, including, without limitation, reasonable fees and
expenses of counsel for the Administrative Agent, the Documentation Agent and
each Lender in connection with the enforcement of rights under this Section 8.04(a).

(b)
          The Borrower agrees to defend,
protect, indemnify and hold harmless the Administrative Agent, the
Documentation Agent, the Arranger, each Lender, each of their Affiliates and
their officers, directors, employees, agents and advisors (each, an “Indemnified
Party”) from and against any and all liabilities, obligations, losses
(other than loss of profits), damages, penalties, actions, judgments, suits,
claims, costs, expenses and disbursements of any kind or nature whatsoever
(excluding any taxes and including, without limitation, the reasonable fees and
disbursements of counsel for such Indemnified Party in connection with any
investigative, administrative or judicial proceeding, whether or not such
Indemnified Party shall be designated a party thereto), imposed on, incurred
by, or asserted against such Indemnified Party in any manner relating to or
arising out of this Agreement, the Notes, the other Loan Documents, any of the
transactions contemplated hereby or thereby, the Commitments, the use of
proceeds, or any act, event or transaction related or attendant thereto
(collectively, the “Indemnified Matters”); provided, however, the
Borrower shall have no obligation to an Indemnified Party hereunder with
respect to Indemnified Matters directly caused by or directly resulting from
the willful misconduct or gross negligence of such Indemnified Party, as
determined by a court of competent jurisdiction.

(c)
          If any payment of principal of,
or Conversion of, any Eurodollar Rate Advance or LIBO Rate Advance is made by
the Borrower to or for the account of a Lender other than on the last day of
the Interest Period for such Advance, as a result of a payment or Conversion
pursuant to Section 2.08(c) or (d), 2.10 or 2.12, acceleration of the maturity
of the Notes pursuant to Section 6.01 or for any other reason, or by an
Eligible Assignee to a Lender other than on the last day of the Interest Period
for such Advance upon an assignment of rights and obligations under this
Agreement pursuant to Section 8.07 as a result of a demand by the Borrower
pursuant to Section 8.07(a), the Borrower shall, upon demand by such Lender
(with a copy of such demand to the Administrative Agent), pay to the
Administrative Agent for the account of such Lender any amounts required to
compensate such Lender for any additional losses, costs or expenses that it may
reasonably incur as a result of such payment or Conversion, including, without
limitation, any loss (including loss of anticipated profits), cost or expense
incurred by reason of the liquidation or reemployment of deposits or other
funds acquired by any Lender to fund or maintain such Advance.

SECTION
8.05.  Right of Setoff.  Upon (a) the occurrence and during the
continuance of any Event of Default and (b) the making of the request or the
granting of the consent specified by Section 6.01 to authorize the
Administrative Agent to declare the Notes due

 

48

 

and payable pursuant to the
provisions of Section 6.01, 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, but excluding any accounts designated as
collateral accounts securing other Debt) at any time held and other
indebtedness at any time owing by such Lender or such Affiliate to or for the
credit or the account of the Borrower against any and all of the obligations of
the Borrower now or hereafter existing under this Agreement and the Note held
by such Lender, whether or not such Lender shall have made any demand under
this Agreement or such Note and although such obligations may be
unmatured.  Each Lender agrees promptly
to notify the Borrower after any such setoff and application, provided that the
failure to give such notice shall not affect the validity of such setoff and
application.  The rights of each Lender
and its Affiliates under this Section 8.05 are in addition to other rights and
remedies (including, without limitation, other rights of setoff) that such
Lender and its Affiliates may have.

SECTION 8.06.  Binding
Effect.  This Agreement shall become
effective (other than Sections 2.01 and 2.03, which shall only become effective
upon satisfaction of the conditions precedent set forth in Sections 3.01 and
3.03) when it shall have been executed by the Borrower, the Administrative
Agent and the Documentation Agent and when the Administrative Agent shall have
been notified by each Initial Lender that such Initial Lender has executed it
and thereafter shall be binding upon and inure to the benefit of the Borrower,
the Administrative Agent, the Documentation Agent and each Lender and their
respective successors and assigns, except that the Borrower shall not have the
right to assign its rights hereunder or any interest herein without the prior
written consent of the Lenders.

SECTION 8.07.  Assignments,
Designations and Participations. 
(a)  Each Lender (other than a
Designated Bidder) may, with the consent of the Borrower, such consent not to
be unreasonably withheld or delayed, and shall, so long as no Default has
occurred and is continuing and if demanded by the Borrower (pursuant to the
provisions of Section 2.17) upon at least five Business Days’ notice to such
Lender and the Administrative Agent, assign to one or more Persons all or a
portion of its rights and obligations under this Agreement (including, without
limitation, all or a portion of its Commitment, the Revolving Credit Advances
owing to it and the Revolving Credit Note or Notes held by it); provided, however, that:

(i)            each such assignment shall be of a constant, and not a
varying, percentage of all rights and obligations under this Agreement (other
than any right to make Competitive Bid Advances, Competitive Bid Advances owing
to it or Competitive Bid Notes),

(ii)           except in the case of an assignment to a Person that,
immediately prior to such assignment, was a Lender or an assignment of all of a
Lender’s rights and obligations under this Agreement, the amount of the
Commitment of the assigning Lender being assigned pursuant to each such
assignment (determined as of the date of the Assignment and Acceptance with
respect to such assignment) shall in no event be less than $10,000,000 or an
integral multiple of $1,000,000 in excess thereof,

(iii)          each such assignment shall be to an
Eligible Assignee,

 

49

 

(iv)          each
such assignment made as a result of a demand by the Borrower pursuant to this
Section 8.07(a) shall be arranged by the Borrower at the Borrower’s expense,
shall be to an Eligible Assignee acceptable to the Administrative Agent (which
acceptance shall not be unreasonably withheld) and shall be either an
assignment of all of the rights and obligations of the assigning Lender under
this Agreement or an assignment of a portion of such rights and obligations
made concurrently with another such assignment or other such assignments that
together cover all of the rights and obligations of the assigning Lender under
this Agreement,

(v)           no Lender shall be obligated to make any such assignment as
a result of a demand by the Borrower pursuant to this Section 8.07(a) unless
and until such Lender shall have received one or more payments from either the
Borrower or one or more Eligible Assignees in an aggregate amount at least
equal to the aggregate outstanding principal amount of the Advances owing to
such Lender, together with accrued interest thereon to the date of payment of
such principal amount and all other amounts payable to such Lender under this
Agreement, and

(vi)          the
parties to each such assignment shall execute and deliver to the Administrative
Agent, for its acceptance and recording in the Register, an Assignment and
Acceptance, together with any Revolving Credit Note subject to such assignment
and a processing and recordation fee of $3,000,

(vii)         if
such assignment shall be made as a result of a demand by the Borrower pursuant
to this Section 8.07(a) to an assignee that, immediately prior to such
assignment, was neither a Lender nor an Affiliate of a Lender, an
administrative fee of $3,000 shall have been paid by the Borrower to the
Administrative Agent upon its demand,

(viii)        notwithstanding
any other provision set forth in this Agreement, a Lender may assign to any of
its Affiliates all or a portion of its rights and obligations under this
Agreement (including, without limitation, all or a portion of its Commitment,
the Revolving Credit Advances owing to it and the Revolving Credit Note or
Notes held by it) upon notice to the Borrower and the Administrative Agent,
with or without the consent of the Borrower or the Administrative Agent (but
without releasing the obligations of the assigning Lender hereunder except with
the written consent of the Borrower), so long as such assignment is otherwise
in compliance with this Agreement, and

(ix)           notwithstanding
any other provision set forth in this Agreement, a Lender may assign to any
assignee all or a portion of its rights and obligations under this Agreement
(including, without limitation, all or a portion of its Commitment, the
Revolving Credit Advances owing to it and the Revolving Credit Note or Notes
held by it) upon notice to the Administrative Agent, with or without the
consent of the Borrower, so long as any Event of Default shall have occurred
and be continuing.

Upon such execution, delivery, acceptance and recording, from and after
the effective date specified in each Assignment and Acceptance, (A) the
assignee thereunder shall be a party hereto and, to the extent that rights and
obligations hereunder have been assigned to it pursuant to such Assignment and
Acceptance, have the rights and obligations of a Lender hereunder and (B) the

 

50

 

Lender assignor thereunder
shall, to the extent that rights and obligations hereunder have been assigned
by it pursuant to such Assignment and Acceptance, relinquish its rights and be
released from its obligations under this Agreement (and, in the case of an
Assignment and Acceptance covering all or the remaining portion of an assigning
Lender’s rights and obligations under this Agreement, such Lender shall cease
to be a party hereto).

(b)
          By executing and delivering an
Assignment and Acceptance, the Lender assignor thereunder and the assignee
thereunder confirm to and agree with each other and the other parties hereto as
follows:

(i)            other than as provided in such Assignment and Acceptance,
such assigning Lender makes no representation or warranty and assumes no
responsibility with respect to any statements, warranties or representations
made in or in connection with this Agreement or any other Loan Document or the
execution, legality, validity, enforceability, genuineness, sufficiency or
value of this Agreement or any other Loan Document or any other instrument or
document furnished pursuant hereto or thereto;

(ii)           such
assigning Lender makes no representation or warranty and assumes no
responsibility with respect to the financial condition of any Loan Party or the
performance or observance by any Loan Party of any of its obligations under
this Agreement, any other Loan Document or any other instrument or document
furnished pursuant hereto or thereto;

(iii)          such
assignee confirms that it has received a copy of this Agreement and each other
Loan Document, together with copies of the financial statements referred to in
Section 4.01 and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into such
Assignment and Acceptance;

(iv)          such
assignee will, independently and without reliance upon the Administrative
Agent, the Documentation Agent, such assigning Lender or any other Lender and
based on such documents and information as it shall deem appropriate at the
time, continue to make its own credit decisions in taking or not taking action
under this Agreement or any other Loan Document;

(v)           such
assignee confirms that it is an Eligible Assignee;

(vi)          such assignee appoints and authorizes (A) the Administrative
Agent to take such action as agent on its behalf and to exercise such powers
and discretion under this Agreement and each other Loan Document as are
delegated to the Administrative Agent by the terms hereof and thereof, together
with such powers and discretion as are reasonably incidental thereto and (B)
the Documentation Agent to take such action as agent on its behalf and to
exercise such powers and discretion under this Agreement and each other Loan
Document as are delegated to the Documentation Agent by the terms hereof and
thereof, together with such powers and discretion as are reasonably incidental
thereto; and

 

51

 

(vii)         such
assignee agrees that it will perform in accordance with their terms all of the
obligations that by the terms of this Agreement and each other Loan Document
are required to be performed by it as a Lender.

(c)
          Upon its receipt of an
Assignment and Acceptance executed by an assigning Lender and an assignee representing
that it is an Eligible Assignee, together with any Revolving Credit Note or
Notes subject to such assignment, the Administrative Agent shall, if such
Assignment and Acceptance has been completed and is in substantially the form
of Exhibit C hereto and has been consented to by the Borrower if such consent
is required, (i) accept such Assignment and Acceptance, (ii) record the
information contained therein in the Register and (iii) give prompt notice
thereof to the Borrower.  Within five
Business Days after its receipt of such notice, the Borrower, at its own
expense, shall execute and deliver to the Administrative Agent in exchange for
the surrendered Revolving Credit Note a new Note to the order of such Eligible
Assignee in an amount equal to the Commitment assumed by it pursuant to such
Assignment and Acceptance and, if the assigning Lender has retained a
Commitment hereunder, a new Revolving Credit Note to the order of the assigning
Lender in an amount equal to the Commitment retained by it hereunder.  Such new Revolving Credit Note or Notes
shall be in an aggregate principal amount equal to the aggregate principal
amount of such surrendered Revolving Credit Note or Notes, shall be dated the
effective date of such Assignment and Acceptance and shall otherwise be in
substantially the form of Exhibit A-1 hereto.

(d)
          Each Lender (other than the
Designated Bidders) may designate one or more banks or other entities to have a
right to make Competitive Bid Advances as a Lender pursuant to Section 2.03; provided, however, that (i) no such Lender
shall be entitled to make more than five such designations, (ii) each such
Lender making one or more of such designations shall retain the right to make
Competitive Bid Advances as a Lender pursuant to Section 2.03, (iii) each such
designation shall be to a Designated Bidder and (iv) the parties to each such
designation shall execute and deliver to the Administrative Agent, for its
acceptance and recording in the Register, a Designation Agreement.  Upon such execution, delivery, acceptance
and recording, from and after the effective date specified in each Designation
Agreement, the designee thereunder shall be a party hereto with a right to make
Competitive Bid Advances as a Lender pursuant to Section 2.03 and the obligations
related thereto.

(e)
          By executing and delivering a
Designation Agreement, the Lender making the designation thereunder and its
designee thereunder confirm and agree with each other and the other parties
hereto as follows:

(i)            such Lender makes no representation or warranty and
assumes no responsibility with respect to any statements, warranties or
representations made in or in connection with this Agreement or any other Loan
Document or the execution, legality, validity, enforceability, genuineness,
sufficiency or value of this Agreement or any other Loan Document or any other
instrument or document furnished pursuant hereto or thereto;

(ii)
          such Lender makes no
representation or warranty and assumes no responsibility with respect to the
financial condition of any Loan Party or the performance or observance by any
Loan Party of any of its obligations under this

 

52

 

Agreement
or any other Loan Document or any other instrument or document furnished pursuant
hereto or thereto;

(iii)          such
designee confirms that it has received a copy of this Agreement and each other
Loan Document, together with copies of the financial statements referred to in
Section 4.01 and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into such
Designation Agreement;

(iv)          such
designee will, independently and without reliance upon the Administrative
Agent, the Documentation Agent, such designating Lender or any other Lender and
based on such documents and information as it shall deem appropriate at the
time, continue to make its own credit decisions in taking or not taking action
under this Agreement or any other Loan Document;

(v)           such
designee confirms that it is a Designated Bidder;

(vi)          such
designee appoints and authorizes (A) the Administrative Agent to take such
action as agent on its behalf and to exercise such powers and discretion under
this Agreement and each other Loan Document as are delegated to the
Administrative Agent by the terms hereof and thereof, together with such powers
and discretion as are reasonably incidental thereto and (B) the Documentation
Agent to take such action as agent on its behalf and to exercise such powers
and discretion under this Agreement and each other Loan Document as are
delegated to the Documentation Agent by the terms hereof and thereof, together
with such powers and discretion as are reasonably incidental thereto; and

(vii)         such
designee agrees that it will perform in accordance with their terms all of the
obligations which by the terms of this Agreement and each other Loan Document
are required to be performed by it as a Lender.

(f)
           Upon its receipt of a
Designation Agreement executed by a designating Lender and a designee
representing that it is a Designated Bidder, the Administrative Agent shall, if
such Designation Agreement has been completed and is substantially in the form
of Exhibit D hereto, (i) accept such Designation Agreement, (ii) record the
information contained therein in the Register and (iii) give prompt notice
thereof to the Borrower.

(g)           The Administrative Agent shall maintain at its address
referred to in Section 8.02 a copy of each Assignment and Acceptance and each
Designation Agreement delivered to and accepted by it and a register for the
recordation of the names and addresses of the Lenders and, with respect to
Lenders (other than Designated Bidders), the Commitment of, and principal
amount of the Advances owing to, each Lender from time to time (the
“Register”).  The entries in the
Register shall be conclusive and binding for all purposes, absent manifest
error, and the Borrower, the Administrative Agent, the Documentation Agent and
the Lenders shall treat only the Person whose name is recorded in the Register
as a Lender hereunder for all purposes of this Agreement and each other Loan
Document.  The Register shall be
available for inspection by the Borrower or any Lender at any reasonable time
and from time to time upon

 

53

 

reasonable prior
notice.  The Administrative Agent shall
be considered to act as the agent of the Borrower in connection with its duties
in respect of the Register.

(h)
          Each Lender may sell
participations to one or more banks or other entities in or to all or a portion
of its rights and obligations under this Agreement (including, without
limitation, all or a portion of its Commitment, the Advances owing to it and
the Note or Notes held by it); provided,
however, that (i) such Lender’s obligations under this Agreement
(including, without limitation, its Commitment to the Borrower hereunder) shall
remain unchanged, (ii) such Lender shall remain solely responsible to the other
parties hereto for the performance of such obligations, (iii) such Lender shall
remain the holder of any such Note for all purposes of this Agreement, (iv) the
Borrower, the Administrative Agent, the Documentation Agent and the other
Lenders shall continue to deal solely and directly with such Lender in connection
with such Lender’s rights and obligations under this Agreement and the other
Loan Documents and (v) no participant under any such participation shall have
any right to approve any amendment or waiver of any provision of this
Agreement, any Note or any other Loan Document, or any consent to any departure
by the Borrower therefrom, except to the extent that such amendment, waiver or
consent would reduce the principal of, or interest on, the Notes or any fees or
other amounts payable hereunder, in each case to the extent subject to such
participation, or postpone any date fixed for any payment of principal of, or
interest on, the Notes or any fees or other amounts payable hereunder, in each
case to the extent subject to such participation.

(i)
           Any Lender may, in connection
with any assignment, designation or participation or proposed assignment,
designation or participation pursuant to this Section 8.07, disclose to the
assignee, designee or participant or proposed assignee, designee or
participant, any information relating to any Loan Party furnished to such
Lender by or on behalf of the Borrower; provided
that, prior to any such disclosure, the assignee, designee or participant or
proposed assignee, designee or participant shall agree to preserve the confidentiality
of any Confidential Information relating to any Loan Party received by it from
such Lender.

(j)
           Notwithstanding any other
provision set forth in this Agreement, any Lender may at any time create a
security interest in all or any portion of its rights under this Agreement
(including, without limitation, the Advances owing to it and the Note or Notes
held by it) in favor of any Federal Reserve Bank in accordance with Regulation
A.

SECTION
8.08.  Confidentiality.  None of the Administrative Agent, the
Documentation Agent, or any Lender shall disclose any Confidential Information
to any Person without the consent of the Borrower, other than (a) to the
Administrative Agent’s, the Documentation Agent’s, or such Lender’s Affiliates
and their officers, directors, employees, agents, advisors, auditors and
accountants and to actual or prospective assignees and participants, and then
only on a confidential basis, (b) as required by any law, rule or regulation or
judicial process, (c) to any rating agency when required by it, provided that, prior to any such
disclosure, such rating agency shall undertake to preserve the confidentiality
of any Confidential Information relating to the Borrower received by it from
such Lender and (d) as requested or required by any state, federal or foreign
authority or examiner regulating banks or banking.  Notwithstanding anything herein to the contrary, the Agents and
the Lenders may disclose to any and all Persons, without limitation of any
kind, the U.S. tax treatment and tax structure of the

 

54

 

transactions contemplated
hereby and all materials of any kind including opinions or other tax analyses)
that are provided to the Agents or any Lender relating to such U.S. tax treatment
and tax structure.

SECTION 8.09.  Governing
Law.  This Agreement and the Notes
shall be governed by, and construed in accordance with, the laws of the State
of New York.

SECTION 8.10.  Execution
in Counterparts.  This Agreement may
be executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute one and the same
agreement.  Delivery of an executed
counterpart of a signature page to this Agreement by telecopier shall be
effective as delivery of a manually executed counterpart of this Agreement.

SECTION 8.11.  Jurisdiction,
Etc.  (a)  Each of the parties hereto hereby irrevocably and unconditionally
submits, for itself and its property, to the nonexclusive jurisdiction of any
New York State court or federal court of the United States of America sitting
in New York City, and any appellate court from any thereof, in any action or
proceeding arising out of or relating to this Agreement or any other Loan
Document to which it is a party, 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 any such New York State or, to the extent permitted by law,
in such federal court.  Each of the
parties hereto agrees that a final judgment in any such action or proceeding shall
be conclusive and may be enforced in other jurisdictions by suit on the
judgment or in any other manner provided by law.  Nothing in this Agreement shall affect any right that any party
may otherwise have to bring any action or proceeding relating to this Agreement
or any other Loan Document to which it is a party in the courts of any
jurisdiction.

(b)           Each of the parties hereto irrevocably and unconditionally
waives, to the fullest extent it may legally and effectively do so, any
objection that 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 to which it is a party in any New York State or federal
court.  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.

 

55

 

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

	
   

  	
  UNITED PARCEL SERVICE,
  INC., a Delaware corporation, as Borrower

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
  Name: 

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  UNITED PARCEL SERVICE,
  INC., a New York corporation, as Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  UNITED PARCEL SERVICE,
  INC., an Ohio corporation, as Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  UNITED PARCEL SERVICE CO.,
  a Delaware corporation, as Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

56

 

	
   

  	
  THE AGENTS

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CITIBANK, N.A., as
  Administrative Agent and Syndication Agent

  
	
   

  	
   

  
	
   

  	
  By  

  	
   

  
	
   

  	
  Name: 

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BANK OF AMERICA, N.A. as Documentation Agent

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
  Name: 

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BANK ONE, NA as Documentation Agent

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
  Name: 

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CITIGROUP GLOBAL MARKETS INC., as Arranger

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
  Name: 

  	
   

  
	
   

  	
  Title:

  	
   

  

 

57

 

	
   

  	
  THE INITIAL LENDERS

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Citibank, N.A., as Lender

  
	
   

  	
   

  	
   

  
	
   

  	
  By 

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

58

 

	
   

  	
   

  	
  , as Lender

  
	
   

  	
  [Print or type name of lender]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
  Name:    

  	
   

  
	
   

  	
  Title:

  	
   

  
				

 

 

59

 

SCHEDULE I

APPLICABLE
LENDING OFFICES

5-YEAR
FACILITY

 

	
  Name of Lender

  	
   

  	
  Commitment

  	
   

  	
  Domestic
  Lending Office

  	
   

  	
  Eurodollar
  Lending Office

  	
   

  
	
  Citibank, N.A.

  	
   

  	
  $125,000,000

  	
   

  	
  Citibank, N.A.

  2 Penns Way Suite 200

  New Castle, DE 19720

  Attn: Pat Dimery

  T: (302) 894-6023

  F: (302) 894-6120

  	
   

  	
  Citibank, N.A.

  2 Penns Way Suite 200

  New Castle, DE 19720

  Attn: Pat Dimery

  T: (302) 894-6023

  F: (302) 894-6120

  	
   

  
	
  Bank of America,

  N.A.

  	
   

  	
  $100,000,000

  	
   

  	
  Bank of America

  901 Main Street, 14th
  Floor

  Dallas, TX 75202

  Attn: Betty Canales

  T: (214) 209-2131

  F: (214) 290-8377

  	
   

  	
  Bank of America

  901 Main Street, 14th
  Floor

  Dallas, TX 75202

  Attn: Betty Canales

  T: (214) 209-2131

  F: (214) 290-8377

  	
   

  
	
  Bank One, NA

  	
   

  	
  $100,000,000

  	
   

  	
  Bank One, NA

  1 Bank One Plaza

  Chicago, IL 60670

  Attn: Mark Gibbs

  T: (312) 732-7624

  F: (312) 732-1117

  	
   

  	
  Bank One, NA

  1 Bank One Plaza

  Chicago, IL 60670

  Attn: Mark Gibbs

  T: (312) 732-7624

  F: (312) 732-1117

  	
   

  
	
  ABN AMRO Bank,

  N.V.

  	
   

  	
  $75,000,000

  	
   

  	
  ABN AMRO Bank N.V.

  208 South LaSalle St.,

  Suite 1500

  Chicago, IL 60604-1003

  Attn: Loan Administration

  T: (312) 992-5160

  F: (312) 992-5155

  	
   

  	
  ABN AMRO Bank N.V.

  208 South LaSalle St.,

  Suite 1500

  Chicago, IL 60604-1003

  Attn: Loan Administration

  T: (312) 992-5160

  F: (312) 992-5155

  	
   

  
	
  JP Morgan Chase

  Bank

  	
   

  	
  $75,000,000

  	
   

  	
  JP Morgan Chase Bank

  1 Chase Manhattan Plaza

  8th Floor

  New York, NY 10081

  Attn: May Fong

  T: (212) 552-7314

  F: (212) 552-5650

  	
   

  	
  JP Morgan Chase Bank

  1 Chase Manhattan Plaza

  8th Floor

  New York, NY 10081

  Attn: May Fong

  T: (212) 552-7314

  F: (212) 552-5650

  	
   

  
	
  BNP Paribas

  	
   

  	
  $75,000,000

  	
   

  	
  BNP Paribas

  1200 Smith Street, Suite 3100

  Houston, TX 77002

  Attn: Leah Evans-Hughes

  T: (713) 982-1126

  F: (713) 659-5305

  	
   

  	
  BNP Paribas

  1200 Smith Street, Suite
  3100

  Houston, TX 77002

  Attn: Leah Evans-Hughes

  T: (713) 982-1126

  F: (713) 659-5305

  	
   

  
	
  Mellon Bank, N.A.

  	
   

  	
  $75,000,000

  	
   

  	
  Mellon Bank, N.A.

  One Mellon Bank Center

  Pittsburgh, PA

  15258-0001

  Attn: Daniel Lenckos

  T: (412) 234-0733

  F: (412) 236-1914

  	
   

  	
  Mellon Bank, N.A.

  One Mellon Bank Center

  Pittsburgh, PA

  15258-0001

  Attn: Daniel Lenckos

  T: (412) 234-0733

  F: (412) 236-1914

  	
   

  

 

60

 

	
  Name of Lender

  	
   

  	
  Commitment

  	
   

  	
  Domestic
  Lending Office

  	
   

  	
  Eurodollar
  Lending Office

  	
   

  
	
  Wells Fargo Bank,

  National Association

  	
   

  	
  $75,000,000

  	
   

  	
  Wells Fargo Bank, N.A.

  201 Third Street — 8th
  Floor

  MAC A0187-081

  San Francisco, CA 94103

  Attn: Maria Belle Garcia

  T: (415) 477-5471

  F: (415) 979-0675

  	
   

  	
  Wells Fargo Bank, N.A.

  201 Third Street — 8th
  Floor

  MAC A0187-081

  San Francisco, CA 94103

  Attn: Maria Belle Garcia

  T: (415) 477-5471

  F: (415) 979-0675

  	
   

  
	
  Barclays Bank Plc

  	
   

  	
  $50,000,000

  	
   

  	
  Barclays Bank Plc

  222 Broadway

  New York, NY 10038

  Attn: Eddie Cotto Jr.

  T: (212) 412-3701

  F: (212) 412-5306

  	
   

  	
  Barclays Bank Plc

  222 Broadway

  New York, NY 10038

  Attn: Eddie Cotto Jr.

  T: (212) 412-3701

  F: (212) 412-5306

  	
   

  
	
  Dresdner Bank AG,

  New York and Grand

  Cayman Branches

  	
   

  	
  $50,000,000

  	
   

  	
  Dresdner Bank

  1301 Avenue of the
  Americas

  New York, NY 10019

  Attn: Deborah Carlson

  T: (212) 895-1763

  F: (212) 895-1766

  	
   

  	
  Dresdner Bank

  1301 Avenue of the
  Americas

  New York, NY 10019

  Attn: Deborah Carlson

  T: (212) 895-1763

  F: (212) 895-1766

  	
   

  
	
  Royal Bank of Canada

  	
   

  	
  $50,000,000

  	
   

  	
  Royal Bank of Canada,

  New York Branch

  One Liberty Plaza, 3rd Floor

  New York, NY 10006-1404

  Attn: Manager, Loans

  Administration

  T: (212) 428-6322

  F: (212) 428-2372

  	
   

  	
  Royal Bank of Canada,

  New York Branch

  One Liberty Plaza, 3rd
  Floor

  New York, NY 10006-1404

  Attn: Manager, Loans

  Administration

  T: (212) 428-6322

  F: (212) 428-2372

  	
   

  
	
  Standard Chartered

  Bank

  	
   

  	
  $50,000,000

  	
   

  	
  Standard Chartered Bank

  1 Madison Avenue

  Third Floor

  New York, NY 10010-3603

  Attn: Vijayant Jain

  T: (212) 667-0499

  F: (212) 667-0251

  	
   

  	
  Standard Chartered Bank

  1 Madison Avenue

  Third Floor

  New York, NY 10010-3603

  Attn: Vijayant Jain

  T: (212) 667-0499

  F: (212) 667-0251

  	
   

  
	
  Credit Suisse

  First Boston, acting

  through its Cayman

  Islands branch

  	
   

  	
  $25,000,000

  	
   

  	
  Credit Suisse First Boston

  11 Madison Avenue

  New York, NY 10010-3629

  Attn: Sonya Shillingford

  T: (212) 538-3361

  F: (212) 538-6851

  	
   

  	
  Credit Suisse First Boston

  11 Madison Avenue

  New York, NY 10010-3629

  Attn: Sonya Shillingford

  T: (212) 538-3361

  F: (212) 538-6851

  	
   

  
	
  Merrill Lynch Bank

  USA

  	
   

  	
  $25,000,000

  	
   

  	
  Merrill Lynch Bank USA

  15 W. South Temple,

  Suite 300

  Salt Lake City, UT 84101

  Attn: Butch Alder

  T: (801) 526-8324

  F: (801) 531-7470

  	
   

  	
  Merrill Lynch Bank USA

  15 W. South Temple,

  Suite 300

  Salt Lake City, UT 84101

  Attn: Butch Alder

  T: (801) 526-8324

  F: (801) 531-7470

  	
   

  
	
  UBS AG, Stamford

  Branch

  	
   

  	
  $25,000,000

  	
   

  	
  UBS AG, Stamford Branch

  677 Washington Blvd.

  Stamford, CT 06901

  Attn: Vladimira Holeckova

  T: (203) 719-6403

  F: (203) 719-3888

  	
   

  	
  UBS AG, Stamford Branch

  677 Washington Blvd.

  Stamford, CT 06901

  Attn: Vladimira Holeckova

  T: (203) 719-6403

  F: (203) 719-3888

  	
   

  

 

61

 

	
  Name of Lender

  	
   

  	
  Commitment

  	
   

  	
  Domestic
  Lending Office

  	
   

  	
  Eurodollar
  Lending Office

  	
   

  
	
  State Street Bank and Trust Company

  	
   

  	
  $25,000,000

  	
   

  	
  State Street Bank and
  Trust Company

  2 Avenue De Lafayette

  Boston, MA 02111

  Attn:  Ms. C. Jaynelle Landy

  T:  (617) 662-3677

  F:  (617) 662-4201

  	
   

  	
  State Street Bank and
  Trust Company

  2 Avenue De Lafayette

  Boston, MA 02111

  Attn:  Ms. C. Jaynelle Landy

  T:  (617) 662-3677

  F:  (617) 662-4201

  	
   

  

 

	
  TOTAL OF

  COMMITMENTS

  	
   

  	
  $
  1,000,000,000

  	
   

  

 

62

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