Document:

Exhibit 10.1

 

Advanstar
Holdings Corp.

2000
Management Incentive Plan

(as amended by
Amendments No.1, No.2, No.3, No.4, No.5 and No.6)

(effective September 30,
2005)

 

SECTION 1.  Purpose. 
The purpose of the Advanstar Holdings Corp. 2000
Management Incentive Plan (the “Plan”) is to
promote the interests of Advanstar Holdings Corp. (formerly known as Jetman
Acquisition Corp.), a Delaware corporation (the “Company”),
and its stockholders by (i) attracting and retaining exceptional key
employees of the Company, its Subsidiaries and its Affiliates (as defined
below) and others; (ii) motivating such individuals by means of
performance-related incentives to achieve longer-range performance goals; and (iii) enabling
such individuals to participate in the long-term growth and financial success
of the Company.

 

SECTION 2.  Definitions. 
As used in the Plan, the following terms shall have
the meanings set forth below:

 

“Affiliate”
means, with respect to any Person, any other Person directly or indirectly
controlling, controlled by, or under common control with such Person; provided that no stockholder of the Company shall be deemed
an Affiliate of any other stockholder of the Company solely by reason of any
investment in the Company.  For purposes
of this definition, the term “control”
(including with correlative meanings, the terms “controlling”,
“controlled by” and “under common control with”), when used with respect to any
Person, means the possession, directly or indirectly, of the power to direct or
cause the direction of the management and policies of such Person, whether
through the ownership of voting securities, by contract or otherwise.

 

“Award
Agreement” means any written agreement, contract or other instrument
or document evidencing any Option, which may, but need not, be executed or
acknowledged by a Participant.

 

“Board”
means the Board of Directors of the Company.

 

“Cause”
means, with respect to any Participant, “cause” as defined in such Participant’s
Employment Agreement or Award Agreement, or if not so defined:

 

(i)                                     such
Participant’s willful failure to perform his or her material duties (other than
as a result of total or partial incapacity due to

 

 

physical or mental
illness) which such Participant shall not have cured within 30 days of
receiving notice of such failure;

 

(ii)                                  such
Participant’s conviction of a felony arising from, or any act of, fraud,
embezzlement or willful dishonesty by such Participant in relation to the
business or affairs of the Company and any Subsidiary or Affiliate thereof, or any
other felonious conduct on the part of such Participant that is detrimental to
the best interests of the Company or any Subsidiary or Affiliate thereof;

 

(iii)                               such
Participant’s being repeatedly under the influence of illegal drugs or alcohol
while performing his duties; or

 

(iv)                              any
other willful misconduct or gross negligence of such Participant which is
demonstrably injurious to the financial condition or business reputation of the
Company or any Subsidiary or Affiliate thereof, including such Participant’s
breach of the provisions of any noncompetition, nonsolicitation or
confidentiality covenant (whether or not contained in this Agreement) in favor
of the Company or any Subsidiary or Affiliate thereof binding upon such
Participant.

 

“Change of
Control” means:

 

(i)                                     any
“person” (as such term is used in Section 3(a)(9) and 13(d)(3) of
the Exchange Act) other than (A) the DLJ Funds and/or their respective
Permitted Transferees (as defined in the Shareholders’ Agreement) or (B) any
“group” (within the meaning of such Section 13(d)(3)) of which any of the
DLJ Funds is a part, acquires, directly or indirectly, by virtue of the
consummation of any purchase, merger or other combination, securities of the
Company (or its successor) representing more than 51% of the combined voting
power of the Company’s (or its successor’s) then outstanding voting securities
with respect to matters submitted to a vote of the stockholders generally; or

 

(ii)                                  a
sale or transfer by the Company or any of its Subsidiaries of substantially all
of the stock or consolidated assets of the Company and its Subsidiaries to an
entity which is not an Affiliate of the Company prior to such sale or transfer.

 

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

 

“Compensation
Committee” means a committee of the Board designated by the Board to
administer the Plan.

 

 

“Contribution”
shall mean revenue less direct expenses (including, without limitation, staff
costs), as generally calculated by the Company in its internal management reporting.

 

“Credit
Agreement” means the Credit Agreement dated as of October 11,
2000 among Advanstar Communications, Inc., Various Financial Institutions,
Fleet National Bank and DLJ Capital Funding, Inc. as Syndication Agent and
Documentation Agent for the Lenders.

 

“Disability”
means, with respect to any Participant, “disability” as defined in such
Participant’s Employment Agreement or Award Agreement, or if not so defined:

 

(i)                                     any
permanent physical or mental incapacity or disability rendering such Participant
unable or unfit to perform effectively the duties and obligations of his
employment or to participate effectively and actively in the management of the
Company (or, if applicable, any Subsidiary or Affiliate thereof); or

 

(ii)                                  any
illness, accident, injury, physical or mental incapacity or other disability,
where such condition has rendered such Participant unable or unfit to perform
effectively the duties and obligations of his or her employment or to
participate effectively and actively in the management of the Company (or, if
applicable, any Subsidiary or Affiliate thereof) for a period of at least 6
consecutive months or 12 months in any 24-month period (in either case, as
determined in the good faith judgment of the Compensation Committee).

 

“DLJ Funds”
shall have the meaning assigned to it in the Shareholders’ Agreement.

 

“Employee”
means an employee of the Company or any Subsidiary or Affiliate thereof.

 

“Employment
Agreement” means an employment, severance, consulting or similar
agreement between the Company or any Subsidiary or Affiliate thereof and a
Participant.

 

“Exchange Act”
means the Securities Exchange Act of 1934, as amended.

 

“Fair Market
Value” means:

 

(i)                                     with
respect to a Share:

 

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(A)                              as
of the date of the closing of the transactions contemplated by the Merger
Agreement (the “Closing Date”), $10.00.

 

(B)                                on any date after the
Closing Date, if the Shares are traded on an exchange or market, as of any
given date, the average reported closing price of a Share on such exchange or
market as is the principal trading market for such Shares for the three trading
days immediately preceding such date; or

 

(C)                                on any date after the
Closing Date, if the Shares are not traded on an exchange or market on the
applicable date, as determined by the Compensation Committee in good faith
taking into account as appropriate recent sales of the Shares, recent
valuations of the Shares and such other factors as the Compensation Committee
shall in its discretion deem relevant or appropriate (excluding a minority
discount but taking into account an Initial Public Offering Discount).

 

(ii)                                  with
respect to an Option, for each Share underlying such Option, the Fair Market
Value per Share as determined under clause (i) less the exercise price per
Share.

 

“Good Reason”
means, with respect to any Participant, “good reason” as defined in such
Participant’s Award Agreement or Employment Agreement, or if not so defined:

 

(i)                                     any
failure by the Company to comply with any of the provisions of this Plan or
such Participant’s Award Agreement or Employment Agreement, other than an
insubstantial or inadvertent failure not occurring in bad faith and which is
remedied by the Company promptly after receipt of notice thereof given by such
Participant; or

 

(ii)                                  the
material diminution of such Participant’s duties as in effect during the
effectiveness of such Participant’s Award Agreement, excluding an insubstantial
or inadvertent action not taken in bad faith and which is remedied by the
Company promptly after receipt of notice thereof given by such Participant.

 

“Initial
Public Offering Discount” means a discount to Fair Market Value, as
otherwise determined, of the magnitude that would be necessary, in accordance
with usual and customary underwriting market practice, to effect a successful
Initial Public Offering (as defined in the Shareholders’ Agreement).

 

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“Loans”
shall have the meaning ascribed to it in the Advanstar Holding Corp. Direct
Investment Program.

 

“Merger
Agreement” means the Agreement and Plan of Merger dated as of August 14,
2000, among the Company, Junior Jetman Corp., Advanstar Inc. and AHI Advanstar
LLC.

 

“Option”
means a right to purchase Shares from the Company that is granted under Section 6 of the Plan.

 

“Participant”
means any Employee, non-employee director of the Company of any Subsidiary or
Affiliate thereof or consultant to the Company or any Subsidiary or Affiliate
thereof selected by the Compensation Committee to receive an Option under the
Plan (and, to the extent applicable, any heirs or legal representatives
thereof).

 

“Permitted
Transferee” shall have the meaning assigned to it in the
Shareholders’ Agreement.

 

“Person”
means any individual, corporation, limited liability company, partnership,
association, joint-stock company, trust, unincorporated organization,
government or political subdivision thereof or other entity.

 

“Rule 16b-3”
means Rule 16b-3 as promulgated and interpreted by the SEC under the Exchange
Act, or any successor rule or regulation thereto as in effect from time to
time.

 

“SEC”
means the Securities and Exchange Commission or any successor thereto.

 

“Section 162(m)”
means Section 162(m) of the Code, or any successor section thereto as
in effect from time to time.

 

“Shareholders’
Agreement” means the Shareholders’ Agreement dated as of October 11,
2000 among the Company, DLJ Merchant Banking Partners III, L.P. and other DLJ
Funds party thereto, the Existing Shareholders party thereto and the Management
Shareholders party thereto.

 

“Shares”
means (i) shares of common stock, par value $0.01 per share, of the
Company and any stock into which its common stock may thereafter be converted
or changed and/or (ii) such other securities as may be designated by the
Compensation Committee from time to time.

 

“Subsidiary”
means, with respect to any Person, any corporation, limited liability company,
partnership, association or other business entity of which:

 

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(i)                                     if
a corporation, a majority of the total voting power of shares of stock entitled
(without regard to the occurrence of any contingency) to vote in the election
of directors thereof is at the time owned or controlled, directly or
indirectly, by that Person or one or more of the Subsidiaries of that Person or
a combination thereof; or

 

(ii)                                  if
a limited liability company, partnership, association or other business entity,
a majority of the partnership or other similar ownership interests thereof is at
the time owned or controlled, directly or indirectly, by that Person or one or
more Subsidiaries of that Person or a combination thereof.

 

“Substitute
Options” means Options granted in assumption of, or in substitution
for, outstanding options previously granted by a company acquired by the
Company or with which the Company combines.

 

“Super
Performance Vesting Options” means Options granted pursuant to the
form of Award Agreement set forth in Appendix A hereto.

 

SECTION 3.  Administration.

 

(a)                                  Authority
of Compensation Committee. The Plan shall be administered by the
Compensation Committee or by the Board as a whole, if no Compensation Committee
has been constituted.  All references to
the powers and responsibilities of the Compensation Committee set forth in this
Plan shall be deemed to be references to the Board if no Compensation Committee
has been constituted.  Subject to the
terms of the Plan, applicable law and contractual restrictions (including, to
the extent applicable, any Award Agreements and Employment Agreements)
affecting the Company, and in addition to other express  powers and authorizations conferred on the
Compensation Committee by the Plan, the Compensation Committee shall have full
power and authority to:

 

(i)                                     designate
Participants;

 

(ii)                                  determine
the type or types of Options to be granted to a Participant;

 

(iii)                               determine
the number of Shares to be covered by, or with respect to which payments,
rights or other matters are to be calculated in connection with, Options;

 

(iv)                              determine
the terms and conditions of any Option and Award Agreement;

 

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(v)                                 determine
whether, to what extent and under what circumstances Options may be settled or
exercised in cash, Shares, other securities, other Options or other property,
or canceled, forfeited, or suspended and the method or methods by which Options
may be settled, exercised, canceled, forfeited or suspended;

 

(vi)                              determine
whether, to what extent and under what circumstances cash, Shares, other
securities, other Options, other property and other amounts payable with
respect to an Option shall be deferred either automatically or at the election
of the holder thereof or of the Compensation Committee;

 

(vii)                           determine
whether, to what extent and under what circumstances cash, Shares, other
securities, other Options, other property and other amounts issued or payable
with respect to an Option shall be subject to restrictions on transfer,
assignment, pledge or other disposition or alienation, and the nature of such
restrictions;

 

(viii)                        interpret
and administer the Plan and any instrument or agreement relating to, or Option
made under, the Plan;

 

(ix)                                establish,
amend, suspend or waive such rules and regulations and appoint such agents
as it shall deem appropriate for the proper administration of the Plan; and

 

(x)                                   make
any other determination and take any other action that the Compensation
Committee deems necessary or desirable for the administration of the Plan.

 

(b)                                 Compensation
Committee Discretion Binding. Unless otherwise expressly
provided in the Plan or any applicable Award Agreements, all designations,
determinations, interpretations and other decisions under or with respect to
the Plan or any Option shall be within the sole discretion of the Compensation
Committee, may be made at any time and shall be final, conclusive and binding
upon all Persons (including the Company or 
any Subsidiary or Affiliate thereof, any Participant, any holder or
beneficiary of any Option, any stockholder and any Employee).

 

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SECTION 4.  Shares Available for
Options.

 

(a)                                  Shares
Available. Subject to adjustment as provided in Section 4(b), the number of Shares with respect to which Options
may be granted under the Plan shall be the sum of (i) 4,072,789, plus (ii) the
amount by which 39,363 exceeds the total number of Shares purchased with Loans
during the period after the closing of the transactions contemplated by the
Merger Agreement through December 31, 2000.  Super Performance Vesting Options may not be
granted to purchase Shares in excess of the number set forth in clause (ii) of
the preceding sentence, and Options other than Super Performance Vesting
Options may not be granted to purchase Shares in excess of the number set forth
in clause (i) of the preceding sentence. 
If, after the effective date of the Plan, any Shares covered by an
Option granted under the Plan (other than a Substitute Option) or to which such
an Option relates are forfeited, or if such an Option otherwise terminates or
is canceled without the delivery of Shares, then the Shares covered by such
Option, or to which such Option relates, or the number of Shares otherwise
counted against the aggregate number of Shares with respect to which Options may
be granted, to the extent of any such settlement, forfeiture, termination or
cancellation, shall again become Shares with respect to which Options may be
granted under clause (i) or (ii) above, depending on whether the
forfeited, terminated or canceled Option was a Super Performance Vesting
Option.  Notwithstanding the foregoing
and subject to adjustment as provided in Section 4(b),
no Participant may receive Options in any calendar year that relate to more
than 900,000 Shares (subject to adjustment as provided in Section 4(b)).

 

(b)                                 Adjustments.
In the event that the Compensation Committee determines that any dividend or
other distribution (whether in the form of cash, Shares, other securities or
other property), recapitalization, stock split, reverse stock split,
reorganization, reclassification, merger, consolidation, split-up, spin-off,
combination, repurchase, or exchange of Shares or other securities of the
Company, issuance of warrants or other rights to purchase Shares or other
securities of the Company or other similar corporate transaction or event
affects the Shares such that an adjustment is determined by the Compensation
Committee to be appropriate in order to prevent dilution or enlargement of the
benefits or potential benefits intended to be made available under the Plan,
then the Compensation Committee shall, in such manner as it may deem equitable,
adjust any or all of:

 

(i)                                     the
number of Shares of the Company (or number and kind of other securities or
property) with respect to which Options may thereafter be granted;

 

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(ii)                                  the
number of Shares or other securities of the Company (or number and kind of
other securities or property) subject to outstanding Options; and

 

(iii)                               the
grant or exercise price with respect to any Option, or, if deemed appropriate,
make provision for a cash payment to the holder of an outstanding Option.

 

(c)                                  Substitute
Options.  Any Shares
underlying Substitute Options shall not be counted against the Shares available
for Options under the Plan.

 

(d)                                 Sources
of Shares Deliverable Under Options. Any Shares delivered
pursuant to an Option may consist, in whole or in part, of authorized and
unissued Shares or of treasury Shares.

 

SECTION 5.  Eligibility. 
Any Employee, non-employee director of the Company or
any Subsidiary or Affiliate thereof or consultant to the Company or any
Subsidiary or Affiliate thereof shall be eligible to be designated a
Participant.  Holders of options granted
by a company that is acquired by the Company or with which the Company combines
are eligible for grants of Substitute Options hereunder in connection with such
acquisition or combination transaction.

 

SECTION 6.  Stock Options.

 

(a)                                  Grant.
Subject to the provisions of the Plan and contractual restrictions (including,
to the extent applicable, any Award Agreements or Employment Agreements)
affecting the Company, the Compensation Committee shall have sole and complete
authority to determine the Participants to whom Options shall be granted, the number
of Shares to be covered by each Option, the exercise price therefor and the
conditions and limitations applicable to the exercise of the Option.

 

(b)                                 Exercise
Price. The Compensation Committee shall, in its sole discretion,
establish the exercise price at the time each Option is granted.

 

(c)                                  Exercise.
Each Option shall be exercisable at such times and subject to such terms and
conditions as the Compensation Committee may, in its sole discretion, specify
in the applicable Award Agreement or thereafter. The Compensation Committee may
impose such conditions with respect to the exercise of Options, including
without limitation, any relating to the application of federal or state
securities laws, as it may deem necessary or advisable.

 

9

 

(d)                                 Payment.
No Shares shall be delivered pursuant to any exercise of an Option until
payment in full of the exercise price, or adequate provision therefor, is
received by the Company.  Such payment
may be made: (i) in cash; (ii) in Shares owned by the Participant
(the value of such Shares shall be their Fair Market Value on the date of
exercise); (iii) by a combination of cash and Shares; (iv) if
approved by the Compensation Committee, in accordance with a cashless exercise
program; or (v) in such other manner as permitted by the Compensation
Committee at the time of grant or thereafter.

 

SECTION 7.  Vesting; Termination of
Employment.  Each Award Agreement shall
contain such terms as the Compensation Committee may in its sole discretion
determine concerning vesting, forfeiture, the Company’s rights of repurchase of
Shares acquired upon exercise of an Option, and/or the effects of termination
or suspension of a Participant’s employment upon the exercisability of any
Option granted thereunder.

 

SECTION 8.  Accelerated Vesting. 
The Compensation Committee may, in its sole
discretion, provide in an Award Agreement or at any other time for the
accelerated vesting of an Option.

 

SECTION 9.  Amendment and Termination.

 

(a)                                  Amendments
to the Plan. The Board may amend, alter, suspend, discontinue,
or terminate the Plan or any portion thereof at any time; provided
that no such amendment, alteration, suspension, discontinuation or termination
shall be made without stockholder approval if such approval is necessary to
qualify for or comply with any tax or regulatory status or requirement
(including any approval requirement which is a prerequisite for exemptive
relief from Section 16(b) of the Exchange Act or Section 162(m)
of the Code) for which or with which the Board deems it necessary or desirable
to qualify or comply; provided further,
that any such amendment, alteration, suspension, discontinuance or termination
that would adversely affect the rights of the Participant or any holder or beneficiary
of any Option theretofore granted shall not to the extent be effective without
the consent of such affected Participant, holder or beneficiary.
Notwithstanding anything to the contrary herein, the Compensation Committee may
amend the Plan in such manner as may be necessary so as to have the Plan
conform with local rules and regulations in any jurisdiction outside the
United States.

 

(b)                                 Amendments
to Options. Subject to the terms of the Plan, the applicable
Award Agreement and applicable law, the Compensation Committee may waive any
conditions or rights under, amend any terms of, or alter, suspend, discontinue,
cancel or terminate, any Option theretofore granted, prospectively or

 

10

 

retroactively; provided that any such waiver, amendment, alteration,
suspension, discontinuance, cancellation or termination that would adversely
affect the rights of a Participant or any holder or beneficiary of any Option
theretofore granted shall not to that extent be effective without the consent
of such affected Participant, holder or beneficiary.

 

(c)                                  Cancellation.
Any provision of this Plan or any Award Agreement to the contrary
notwithstanding, in the event of a Change of Control or an offer to
Participants generally relating to the acquisition of Shares, including through
purchase, merger or otherwise, the Compensation Committee may cause any Option
granted hereunder to be canceled and, in consideration of such canceled option,
pay the holder (i) a cash payment equal to the difference between the
aggregate value of the Shares (based upon the Change of Control or other
acquisition offer) subject to the Option and the aggregate exercise price of
such Option (the “Intrinsic Value”)
or (ii) a substitute option (preserving the Intrinsic Value of the
canceled Option).

 

SECTION 10.  Treatment
of Ungranted Options Upon Occurrence of a Liquidity Event.  Immediately
prior to the occurrence of a Liquidity Event (as defined in Annex A hereto),
the Board shall award Options, at an exercise price of $10.00 per Share (as
adjusted to reflect any of the events contemplated by Section 4(b)), to
purchase that portion of the Shares on which Options are authorized to be
granted under Section 4(a)(i) of the Plan as to which Options have not,
as of such date, previously been granted. 
For the avoidance of doubt, Options which have been granted and
subsequently canceled, forfeited, terminated or repurchased shall be treated as
having been previously granted, pursuant to the preceding sentence.  The Options granted under this Section 10
shall be allocated among persons eligible for an award under Section 5
hereof, in the sole discretion of the Board.

 

SECTION 11.  General Provisions.

 

(a)                                  Dividend
Equivalents. In the sole and complete discretion of the
Compensation Committee, an Option may provide the Participant with dividends or
dividend equivalents, payable in cash, Shares, other securities or other
property on a current or deferred basis.

 

(b)                                 Non-Transferability
of Options. Except to the extent otherwise provided in a
Participant’s Award Agreement, no Option shall be assigned, alienated, pledged,
attached, sold or otherwise transferred or encumbered by such Participant,
except by will or the laws of descent and distribution.

 

(c)                                  No Rights
to Options. No Employee, Participant or other Person shall have
any claim to be granted any Option, and there is no obligation for uniformity
of treatment of Employees, Participants or holders or beneficiaries of

 

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Options. The terms and
conditions of Options need not be the same with respect to each recipient.

 

(d)                                 Stock
Certificates. Certificates, if any, issued in respect of Shares
shall, unless the Compensation Committee otherwise determines, be registered in
the name of the Participant or his or her Permitted Transferees and, so long as
a Participant continues to be governed by any forfeiture provisions relating to
the Shares, shall be deposited by such Participant or Permitted Transferee,
together with a stock power endorsed in blank, with the Company.  When such forfeiture conditions lapse, the
Company shall deliver such certificates to the Participant upon request.  Such stock certificate shall carry such
appropriate legends, and such written instructions shall be given to the
Company’s transfer agent, as may be deemed necessary or advisable by counsel to
the Company in order to comply with the requirements of (i) the Securities
Act of 1933, as amended, any state securities laws or any other applicable laws
and (ii) the Shareholders’ Agreement. 
Subject to the provisions of the Shareholders’ Agreement, all
certificates for Shares or other securities of the Company or any Subsidiary
delivered under the Plan pursuant to any Option or the exercise thereof shall
be subject to such stop transfer orders and other restrictions as the
Compensation Committee may deem advisable under the Plan or the rules,
regulations and other requirements of the SEC or any exchange or market upon
which such Shares or other securities of the Company are then listed and any
applicable laws or rules or regulations, and the Compensation Committee
may cause a legend or legends to be put on any such certificates to make
appropriate reference to such restrictions.

 

(e)                                  Withholding.
A Participant may be required to pay to the Company or any Subsidiary, and the
Company or any Subsidiary shall have the right and is hereby authorized to
withhold from any Option, from any payment due or transfer made under any
Option or under the Plan or from any compensation or other amount owing to a
Participant the amount (in cash, Shares, other securities, other Options or
other property) of any applicable withholding taxes in respect of an Option,
its exercise or any payment or transfer under an Option or under the Plan, and
to take such other action as may be necessary in the opinion of the Company to
satisfy all obligations for the payment of such taxes. The Compensation
Committee may provide for additional cash payments to holders of Options to
defray or offset any tax arising from any such grant, lapse, vesting or
exercise of any Option.

 

(f)                                    Award Agreements. Each Option
hereunder shall be evidenced by an Award Agreement which shall be delivered to
the Participant and shall specify the terms and conditions of the Option and
any rules applicable thereto.

 

(g)                                 No Limit
on Other Compensation Arrangements. This Plan is not intended to
be the exclusive authority for the grant of options, stock or stock-based
awards, and nothing contained in this Plan shall prevent the Company or

 

12

 

any Subsidiary or
Affiliate thereof from adopting or continuing in effect other compensation
arrangements, which may, but need not, provide for the grant of options,
restricted stock, Shares and other types of awards provided for hereunder
(subject to stockholder approval if such approval is required by applicable
law).  Any such arrangements may be
either generally applicable or applicable only in specific cases.

 

(h)                                 No Right
to Employment. The grant of an Option shall not be construed as
giving a Participant the right to be retained in the employment or service of
the Company or any Subsidiary or Affiliate thereof.  Further, the Company or any Subsidiary may at
any time dismiss a Participant from employment or service, free from any
liability or any claim under the Plan, unless otherwise expressly provided in
the Plan or in any Award Agreement.

 

(i)                                     Rights as a Stockholder. Subject to
the provisions of the applicable Option, no Participant or holder or
beneficiary of any Option shall have any rights as a stockholder with respect
to any Shares to be issued under the Plan until he or she has become the holder
of such Shares.

 

(j)                                     Governing Law. The validity,
construction, and effect of the Plan and any rules and regulations
relating to the Plan and any Award Agreement shall be determined in accordance
with the laws of the State of Delaware.

 

(k)                                  Severability.
If any provision of the Plan or any Option is or becomes or is deemed to be invalid,
illegal, or unenforceable in any jurisdiction or as to any Person or Option, or
would disqualify the Plan or any Option under any law deemed applicable by the
Compensation Committee, such provision shall be construed or deemed amended to
conform to the applicable laws, or if it cannot be construed or deemed amended
without, in the determination of the Compensation Committee, materially
altering the intent of the Plan or the Option, such provision shall be stricken
as to such jurisdiction, Person or Option, and the remainder of the Plan and
any such Option shall remain in full force and effect.

 

(l)                                     Other Laws. The Compensation
Committee may refuse to issue or transfer any Shares or other consideration
under an Option if, acting in its sole discretion, it determines that the
issuance or transfer of such Shares or such other consideration might violate
any applicable law or regulation or entitle the Company to recover the same
under Section 16(b) of the Exchange Act, and any payment tendered to
the Company by a Participant in connection therewith shall be promptly refunded
to the relevant Participant, holder or beneficiary. Without limiting the
generality of the foregoing, no Option granted hereunder shall be construed as
an offer to sell securities of the Company, and no such offer shall be
outstanding, unless and until the Compensation Committee in its sole discretion
has determined that any such offer, if made, would be in compliance with all

 

13

 

applicable requirements
of the federal and state securities laws and any other laws to which such
offer, if made, would be subject.

 

(m)                               No Trust
or Fund Created. Neither the Plan nor any Option shall create or
be construed to create a trust or separate fund of any kind or a fiduciary
relationship between the Company or any Subsidiary and a Participant or any
other Person. To the extent that any Person acquires a right to receive
payments from the Company or any Subsidiary or Affiliate thereof pursuant to an
Option, such right shall be no greater than the right of such unsecured general
creditor of the Company or such Subsidiary or Affiliate thereof.

 

(n)                                 No
Fractional Shares. No fractional Shares shall be issued or
delivered pursuant to the Plan or any Option, and the Compensation Committee
shall determine whether cash or other securities or other property shall be
paid or transferred in lieu of any fractional Shares or whether such fractional
Shares or any rights thereto shall be canceled, terminated or otherwise eliminated.

 

(o)                                 Shareholders’ Agreement Transfer Restrictions.  A Participant shall, as a condition precedent
to the exercise or settlement of an Option, execute an instrument agreeing to
be bound by the terms of the Shareholders’ Agreement or, at the election of the
Company, a counterpart of the Shareholders’ Agreement.  In any event, any Shares acquired upon
exercise or settlement shall be subject to the provisions in the Shareholders’
Agreement regarding restrictions on transfer and the Company’s rights to compel
sales and repurchase Shares.

 

(p)                                 Headings.
Headings are given to the sections and subsections of the Plan solely as a
convenience to facilitate reference. Such headings shall not be deemed in any
way material or relevant to the construction or interpretation of the Plan or
any provision thereof.

 

SECTION 12.  Term of the Plan.

 

(a)                                  Effective
Date. The Plan shall be effective as of October 11, 2000
subject to approval by the stockholders of the Company. Options may be granted
hereunder prior to such stockholder approval, subject in all cases, however, to
such approval.

 

(b)                                 Expiration Date. 
Unless otherwise expressly provided in the Plan or in an applicable
Award Agreement, any Option granted hereunder may, and the authority of the
Board or the Compensation Committee to amend, alter, adjust, suspend,
discontinue or terminate any such Option or to waive any conditions or rights
under any such Option shall, continue after the authority for grant of new
Options hereunder has been exhausted.

 

14

 

As
Amended effective April 19, 2005

 

ANNEX A

 

I.                                         VESTING
OF PERFORMANCE VESTING OPTIONS.

 

1.                                       To
the extent that the Performance Vesting Options are not previously vested as of
April 19, 2005 (the “Unvested PVO”), 25% of the Unvested PVO shall become
fully vested and exercisable on each of the following dates: (a) May 31,
2005; (b) December 31, 2005; (c) December 31, 2006; and (d) December 31,
2007 (each such date, a “Performance Vesting Date”); provided
that the Optionee is on such Performance Vesting Date, and at all times since
the date of grant set forth in such Optionee’s Award Agreement (the “Date of
Grant”) has been, in the employment of (or, in the case of a non-employee
director of the Company or any Subsidiary or Affiliate thereof or a consultant
to the Company or any Subsidiary or Affiliate thereof, in the service of) the
Company or a Subsidiary or Affiliate thereof.

 

2.                                       It
is acknowledged and affirmed that by action of the Board on March 7, 2002,
25% of the Shares subject to the Performance Vesting Option were vested on March 31,
2002 (the “2002 Vesting Date”).  For
Performance Vesting Options having a Date of Grant prior to the 2002 Vesting
Date, the provisions of paragraph I.1 above shall be applicable to the 75% of
such Performance Vesting Options which remained unvested as of April 19,
2005.  For Performance Vesting Options
having a Date of Grant after the 2002 Vesting Date, the provisions of paragraph
I.1 above shall be applicable to all of such Performance Vesting Options.

 

15Exhibit 10.1

 

EXECUTION COPY

 

AMENDMENT NO. 1
TO 

CREDIT AGREEMENT

 

Dated as
of September 30, 2005

 

AMENDMENT NO. 1 TO CREDIT AGREEMENT among
AON CORPORATION, a Delaware corporation (the “Borrower”), the banks,
financial institutions and other institutional lenders parties to the Credit
Agreement referred to below (collectively, the “Lenders”) and CITIBANK,
N.A., as administrative agent (the “Agent”) for the Lenders.

 

PRELIMINARY STATEMENTS:

 

(1)           The
Borrower, the Lenders and the Agent have entered into a Three-Year Credit
Agreement dated as of February 3, 2005 (as amended, supplemented or otherwise
modified through the date hereof), the “Credit Agreement”).  Capitalized terms not otherwise defined in
this Amendment have the same meanings as specified in the Credit Agreement.

 

(2)           The
Borrower and the Lenders have agreed to amend the Credit Agreement as
hereinafter set forth.

 

SECTION 1.           Amendments
to Credit Agreement.  The Credit Agreement is, effective as
of the date hereof and subject to the satisfaction of the conditions precedent
set forth in Section 3, hereby amended as follows:

 

(a)           The cover page and title page to the Credit Agreement and
definition of “Agreement” in Article I are amended by deleting each reference
to “Three-Year Credit Agreement” therein and replacing each such reference with
a reference to “Five-Year Credit Agreement”.

 

(b)           Article I is amended by deleting the following definitions
in their entirety:

 

“Acquisition”

“Domestic
Subsidiary”

“Equity
Interests”

“Foreign
Subsidiary”

“Guarantor”

“Guarantor
Adjusted EBITDA”

“Guarantor
Financial Report”

“Guaranty
Termination Date”

“Loan
Parties”

“Minimum
Guarantor EBITDA”

“Subsidiary
Guaranty”

 

(c)           The definition of “Disclosed Claims” in Article I is amended
and restated as follows:

 

 

“Disclosed
Claims” means any litigation, proceeding or investigation disclosed in (a)
the Borrower’s annual report on Form 10-K for the year ended December 31,
2004, (b) the Borrower’s quarterly report on Form 10-Q for the fiscal
quarter ended June 30, 2005 as filed with the Securities and Exchange
Commission and (c) the Borrower’s Form 8-K dated December 6, 2004 as
filed with the Securities and Exchange Commission.”

 

(d)           The definition of “Facility Termination Date” in Article I
is amended by deleting the date “February 3, 2008” in such definition and
replacing such date with the date “February 3, 2010”.

 

(e)           The definition of “Loan Documents” in Article I is amended
by deleting the phrase “, each Subsidiary Guaranty (until the Guaranty
Termination Date)”.

 

(f)            Section 2.5 is amended by
deleting the percentage “thirty-three percent (33%)” in the eighth line thereof
and replacing such percentage with the percentage “fifty percent (50%)”.

 

(g)           Section 4.2(b) is amended by deleting the phrase “and, prior
to the Guaranty Termination Date, the representations and warranties of each
Guarantor set forth in the Subsidiary Guaranty to which it is a party shall be
true on and as of such Credit Extension Date, in each case”.

 

(h)           Section 6.1 (Financial Reporting) is amended:

 

(i)            in the introductory
paragraph thereof by deleting the phrase “(at all times prior to the Guaranty
Termination Date) such other systems of accounting that will permit the
preparation of Guarantor Financial Reports for each Guarantor as required
hereby, and”;

 

(ii)           in sub-section (a)
thereof by (A) deleting the roman numeral “(i)”, (B) deleting clause (ii), and
(C) deleting “, and” prior to clause (ii);

 

(iii)          in sub-section (b)
thereof by (A) deleting the roman numeral “(i)” (B) deleting clause (ii), and (C)
deleting “, and” prior to clause (ii); and

 

(iv)          in sub-section (c)
thereof by (A) inserting before the roman numeral (ii) therein the word “and”,
(B) deleting clause (iii), and (C) deleting “, and” prior to clause (iii).

 

(i)            Section 6.4 is amended by
deleting the phrase “(other than, unless the Guaranty Termination Date has
occurred, a Subsidiary that is a Guarantor)”.

 

(j)            Section 6.11 (Merger) is amended
in full to read as follows:

 

“6.11 Merger.  The Borrower will not, nor will it permit any
Subsidiary to, merge or consolidate with or into any other Person, except that
(a) a wholly-owned

 

2

 

Subsidiary may
merge into the Borrower or any wholly-owned Subsidiary of the Borrower, (b) the
Borrower or any Subsidiary may merge or consolidate with any other Person so
long as, in the case of a merger or consolidation to which the Borrower is a
party, the Borrower is the surviving corporation, and, in the case of a merger
or consolidation to which a Subsidiary is a party and to which the Borrower is
not a party, the surviving corporation is a Subsidiary, and in any such case,
prior to and after giving effect to such merger or consolidation, no Default or
Unmatured Default shall exist and (c) any Subsidiary may enter into a merger or
consolidation as a means of effecting a disposition or acquisition which would
not result in a Default or Unmatured Default.”

 

(k)           Section 6.15 (Inconsistent Agreements) is amended by
(i) inserting the word “and” before the roman numeral “(iii)” therein; (ii)
deleting the phrase “or any other Loan Party or (iv) unless the Guaranty
Termination Date has occurred, fulfill its Obligations under any Subsidiary
Guaranty or”, and (iii) deleting the words “or any Loan Party” in clause (b) thereof.

 

(l)            Section 6.16 (Dispositions)
is amended by deleting the proviso in sub-section (b) thereof, and by amending
and restating clause (f) thereof as follows:

 

“(f) Any
other Disposition of Property which represents no more than 25% of the
consolidated assets of the Borrower and its Subsidiaries, as would be shown in
the consolidated financial statements of the Borrower and its Subsidiaries as
at the end of the quarter immediately preceding the date on which such
determination is made, to any other Person(s) in any Fiscal Year.”

 

(m)          Section 6.20 (Indebtedness) is amended:

 

(i)            in
the first line thereof by deleting the phrase “Unless the Guaranty Termination
Date has occurred, the” and inserting the word “The” in lieu thereof;

 

(ii)           by
revising sub-section (c) thereof to read as follows:  “(c) Indebtedness owed to the Borrower
or another Subsidiary of the Borrower”;

 

(iii)          by
deleting the portion of clause (e) thereof that begins “and no other Subsidiary
becomes obligated in respect thereof” through the end of such clause; and

 

(iv)          in
clause (h) thereof by deleting “€800,000,000” and
inserting “€1.0 billion” in lieu thereof.

 

(n)           Sections 6.17.4 (Minimum Guarantor EBITDA), 6.19 (Guarantors),
6.21 (Acquisitions) and 7.12 are deleted in their entirety.

 

(o)           Section 7.4 is amended by deleting the phrases “or (prior to
the Guaranty Termination Date) any Guarantor” and “or any Subsidiary Guaranty
to which it is a party”.

 

3

 

(p)           Section 8.1(a) is amended by deleting the phrase “or (prior
to the Guaranty Termination Date) any Guarantor”.

 

(q)           The proviso at the end of Section 8.2 (Amendments) is
amended by (i) inserting before the roman numeral “(ii)” the word “or”, (ii)
deleting clause (iii), and (iii) deleting “, or” before clause (iii).

 

(r)            Sections 9.4 and 10.4 are each
amended by deleting all references to “the Guarantors”, “any Guarantor” and “or
any such Guarantor’s” therein.

 

(s)           Exhibit C (Compliance Certificate) is amended by deleting
Section 4 of Schedule I thereto.

 

(t)            Exhibit E (Form of Subsidiary
Guaranty) is deleted in its entirety.

 

(u)           Exhibit F (Form of Guarantor Financial Report) is deleted in
its entirety.

 

(v)           The Pricing Schedule is deleted in its entirety and replaced
with the pricing schedule attached to this Amendment as Annex A.

 

SECTION 2.           Termination
of Subsidiary Guaranty.   The Lenders
and the Agent hereby agree that, on the Effective Date (as defined in Section
3), the Subsidiary Guaranty will be terminated and will be of no further force
and effect.

 

SECTION 3.           Conditions
of Effectiveness.  This Amendment
shall become effective as of the date first above written (the “Effective
Date”) when, and only when, the Agent shall have received all of the
following documents, each such document (unless otherwise specified) dated the
date of receipt thereof by the Agent (unless otherwise specified), in form and
substance satisfactory to the Agent (unless otherwise specified):

 

(a)           counterparts of this Amendment executed by the Borrower and
all of the Lenders or, as to any of the Lenders, advice satisfactory to the
Agent that such Lender has executed this Amendment.

 

(b)           Certified copies of (i) the resolutions of the Board of
Directors of the Borrower approving this Amendment and the matters
contemplated hereby and (ii) all documents evidencing other necessary corporate
action and governmental approvals, if any, with respect to this Amendment and
the matters contemplated hereby.

 

(c)           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 Amendment.

 

(d)           A certificate signed by a duly authorized officer of the
Borrower stating that (i) the representations and warranties contained in
Section 4 hereof and in Article V of the Credit Agreement are correct on
and as of the date of such certificate as though made on and as of such date,
and (ii) no event has occurred and is continuing that constitutes a Default or
an Unmatured Default.

 

4

 

(e)           One or more opinions addressed to the Lenders from counsel
to the Borrower covering such matters and opinions as the Agent shall
reasonably require.

 

SECTION 4.           Representations
and Warranties of the Borrower.  The
Borrower represents and warrants as follows:

 

(a)           The representations and warranties contained in Article V of
the Credit Agreement are correct on and as of the date hereof.

 

(b)           The Borrower has all requisite power and authority
(corporate and otherwise) and legal right to execute and deliver this Amendment
and to perform its obligations hereunder. 
The execution and delivery by the Borrower of this Amendment and the
performance of its obligations hereunder have been duly authorized by proper
corporate proceedings and this Amendment constitutes legal, valid and binding
obligations of the Borrower enforceable against the Borrower in accordance with
their terms, except as enforceability may be limited by bankruptcy, insolvency
or similar laws affecting the enforcement of creditors’ rights generally

 

(c)            No order, consent, approval, qualification, license,
authorization, or validation of, or filing, recording or registration with, or
exemption by, or other action in respect of, any court, governmental or public
body or authority, or any subdivision thereof, any securities exchange or other
Person is or at the relevant time was required to authorize, or is or at the
relevant time was required in connection with the execution, delivery,
consummation or performance of, or the legality, validity, binding effect or
enforceability of, this Amendment.

 

SECTION 5.           Reference
to and Effect on the Credit Agreement and the Notes.  (a)  On
and after the effectiveness of this Amendment, each reference in the Credit
Agreement to “this Agreement”, “hereunder”, “hereof” or words of like import
referring to the Credit Agreement, and each reference in the Notes to “the
Credit Agreement”, “thereunder”, “thereof” or words of like import referring to
the Credit Agreement, shall mean and be a reference to the Credit Agreement, as
amended by this Amendment.

 

(b)           The Credit Agreement, as specifically amended by this
Amendment, is and shall continue to be in full force and effect and is hereby
in all respects ratified and confirmed.

 

(c)           The execution, delivery and effectiveness of this Amendment
shall not, except as expressly provided herein, operate as a waiver of any
right, power or remedy of any Lender or the Agent under the Credit Agreement,
nor constitute a waiver of any provision of the Credit Agreement.

 

SECTION 6.           Costs
and Expenses  The Borrower agrees to
pay on demand all costs and expenses of the Agent in connection with the
preparation, execution, delivery and administration, modification and amendment
of this Amendment and the other instruments and documents to be delivered
hereunder (including, without limitation, the reasonable fees and expenses of
counsel for the Agent) in accordance with the terms of Section 9.6 of the
Credit Agreement.

 

5

 

SECTION 7.           Execution
in Counterparts.  This Amendment 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 but one and the same
agreement.  Delivery of an executed
counterpart of a signature page to this Amendment by telecopier shall be
effective as delivery of a manually executed counterpart of this Amendment.

 

SECTION 8.           Governing
Law.  This Amendment shall be
governed by, and construed in accordance with, the laws of the State of
New York.

 

6

 

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

 

	
   

  	
  AON CORPORATION

  
	
   

  	
   

  
	
   

  	
  By

  	
    /s/
  Diane Aigotti

  
	
   

  	
   

  	
    Title:
  Senior Vice President and Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CITIBANK, N.A.

  
	
   

  	
  as Agent and
  Lender

  
	
   

  	
   

  
	
   

  	
  By

  	
    /s/
  Judith Green

  
	
   

  	
   

  	
    Title:
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ABN AMRO BANK
  N.V.

  
	
   

  	
  as Lender

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Neil R.
  Stein     /s/ Michael DeMarco

  
	
   

  	
   

  	
  Title:
  Director     Asst.
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  J.P. MORGAN
  CHASE BANK, N.A.

  
	
   

  	
  as Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Erin
  O’Rourke

  
	
   

  	
   

  	
  Title: Vice
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  THE BANK OF NEW
  YORK

  
	
   

  	
  as Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Thomas
  McGinley

  
	
   

  	
   

  	
  Title: Vice
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  THE NORTHERN
  TRUST COMPANY

  
	
   

  	
  as Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Christopher
  L. McKean

  
	
   

  	
   

  	
  Title: Vice
  President

  

 

7

 

	
   

  	
  DEUTSCHE BANK AG
  NEW YORK BRANCH

  
	
   

  	
  as Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Ruth
  Leung        /s/ John S. McGill

  
	
   

  	
   

  	
  Title:
  Director                Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  THE BANK OF NOVA
  SCOTIA

  
	
   

  	
  as Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Todd Meller

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MORGAN STANLEY
  BANK

  
	
   

  	
  as Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Daniel Twengo

  
	
   

  	
   

  	
  Title: Vice
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ROYAL BANK OF
  CANADA

  
	
   

  	
  as Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Alex Birr

  
	
   

  	
   

  	
  Title:
  Authorized Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  WELLS FARGO
  BANK, N.A.

  
	
   

  	
  as Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Robert C.
  Meyer           Beth C. McGinnis

  
	
   

  	
   

  	
  Title: Sr. Vice
  President     Sr. Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PNC BANK, N.A.

  
	
   

  	
  as Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Edward J.
  Chidiac

  
	
   

  	
   

  	
  Title: Managing
  Director

  

 

8

 

	
   

  	
  THE ROYAL BANK
  OF SCOTLAND plc

  
	
   

  	
  as Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Mark Wasilefsky

  
	
   

  	
   

  	
  Title: Senior
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  FIFTH THIRD BANK

  
	
   

  	
  as Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Joseph A.
  Wemhoff

  
	
   

  	
   

  	
  Title: Vice
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  STATE STREET
  BANK AND TRUST COMPANY

  
	
   

  	
  as Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Lise Anne
  Boutiette

  
	
   

  	
   

  	
  Title: Vice
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MERRILL LYNCH
  BANK USA

  
	
   

  	
  as Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Louis Alder

  
	
   

  	
   

  	
  Title: Director

  

 

9

 

Annex A

 

PRICING SCHEDULE

 

	
   

  	
   

  	
  Level I

  	
   

  	
  Level II

  	
   

  	
  Level III

  	
   

  	
  Level IV

  	
   

  	
  Level V

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Borrower Debt Rating*

  	
   

  	
  At least A by S&P or
  A2 by Moody’s

  	
   

  	
  At least A- by S&P or
  A3 by Moody’s

  	
   

  	
  At least BBB+ by S&P
  or Baa1 by Moody’s

  	
   

  	
  At least BBB by S&P
  or Baa2 by Moody’s

  	
   

  	
  None of Levels I, II, III
  or IV is applicable

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Applicable Facility Fee
  Rate (bps)

  	
   

  	
  7.0

  	
   

  	
  8.0

  	
   

  	
  10.0

  	
   

  	
  12.5

  	
   

  	
  17.5

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Applicable Margin for
  Eurodollar Rate Advances (bps)

  	
   

  	
  18.0

  	
   

  	
  22.0

  	
   

  	
  30.0

  	
   

  	
  37.5

  	
   

  	
  45.0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Applicable Utilization
  Fee Rate (bps)(1)

  	
   

  	
  10.0

  	
   

  	
  10.0

  	
   

  	
  10.0

  	
   

  	
  12.5

  	
   

  	
  25.0

  	
   

  

 

*          In
the event of a split rating, if the difference between the two ratings is
greater than one sub-grade, the higher rating shall be reduced one sub-grade.

 

The Applicable Margin, Applicable Facility Fee Rate
and Applicable Utilization Fee Rate shall be determined in accordance with the
foregoing table based on the Borrower Debt Ratings from time to time.  The Borrower Debt Rating in effect on any
date for the purposes of this Schedule is that in effect at the close of
business on such date.  If at any time
there is no Borrower Debt Rating from Moody’s or S&P, Level V shall apply.

 

(1)   The
Applicable Utilization Fee Rate shall be payable only with respect to
outstanding Advances and LC Obligations on days when Utilization is greater
than 50%.  “Utilization” means, for any
day, a percentage equal to the aggregate principal amount of Loans hereunder
and LC Obligations hereunder outstanding on such day (and at the close of
business on such day if a Business Day) divided by the sum on such day of the
Aggregate Commitment; provided that for purposes of computing
Utilization the Aggregate Commitment shall be deemed to in no event be less
than the aggregate outstanding principal amount of the Loans and LC
Obligations.

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