Document:

Exhibit 10(a)

Execution Copy

 

$400,000,000

BRIDGE
LOAN AGREEMENT

Dated as of August 28, 2006

by and among

BRINKER INTERNATIONAL, INC.,

as Borrower,

BRINKER RESTAURANT CORPORATION,

as Guarantor,

CITIBANK, N.A.,

as Administrative Agent,

and

CITIGROUP
GLOBAL MARKETS INC. and

J.P. MORGAN SECURITIES, INC.,

as Joint Lead Arrangers

and Bookrunners

 

 

 

TABLE OF CONTENTS

	
  

  	
   

  	
  Page

  
	
  ARTICLE I DEFINITIONS AND ACCOUNTING TERMS

  	
   

  	
  1

  
	
   

  	
   

  	
   

  
	
  Section 1.01.
  Certain Defined Terms

  	
   

  	
  1

  
	
  Section 1.02.
  Computation of Time Periods

  	
   

  	
  13

  
	
  Section 1.03.
  Accounting Terms

  	
   

  	
  13

  
	
  Section 1.04.
  Miscellaneous

  	
   

  	
  13

  
	
   

  	
   

  	
   

  
	
  ARTICLE II AMOUNTS AND TERMS OF THE LOANS

  	
   

  	
  14

  
	
   

  	
   

  	
   

  
	
  Section 2.01.
  The Loans

  	
   

  	
  14

  
	
  Section 2.02.
  Making the Loans

  	
   

  	
  14

  
	
  Section 2.03.
  [Reserved]

  	
   

  	
  14

  
	
  Section 2.04.
  [Reserved]

  	
   

  	
  14

  
	
  Section 2.05.
  Borrowings; Loans; Termination of Eurodollar Rate Loans

  	
   

  	
  14

  
	
  Section 2.06.
  Conversions and Continuations of Borrowings

  	
   

  	
  17

  
	
  Section 2.07.
  Optional Termination and Reduction of the Commitments

  	
   

  	
  18

  
	
  Section 2.08.
  Repayment of Loans

  	
   

  	
  18

  
	
  Section 2.09.
  Interest on Loans

  	
   

  	
  19

  
	
  Section 2.10.
  Interest Rate Determination

  	
   

  	
  20

  
	
  Section 2.11.
  Commitment Fee

  	
   

  	
  20

  
	
  Section 2.12.
  Payments; Computations; Interest on Overdue Amounts

  	
   

  	
  20

  
	
  Section 2.13.
  Consequential Losses on Eurodollar Rate Loans

  	
   

  	
  21

  
	
  Section 2.14.
  Increased Costs

  	
   

  	
  21

  
	
  Section 2.15.
  Replacement of Banks

  	
   

  	
  22

  
	
  Section 2.16.
  Illegality

  	
   

  	
  23

  
	
  Section 2.17.
  Taxes

  	
   

  	
  23

  
	
  Section 2.18.
  Payments Pro Rata

  	
   

  	
  24

  
	
   

  	
   

  	
   

  
	
  ARTICLE III CONDITIONS

  	
   

  	
  25

  
	
   

  	
   

  	
   

  
	
  Section 3.01.
  Conditions Precedent to Effectiveness

  	
   

  	
  25

  
	
  Section 3.02.
  Conditions Precedent to Each Borrowing

  	
   

  	
  26

  
	
  Section 3.03.
  Administrative Agent

  	
   

  	
  26

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV GUARANTY

  	
   

  	
  27

  
	
   

  	
   

  	
   

  
	
  Section 4.01.
  Guaranty

  	
   

  	
  27

  
	
  Section 4.02.
  Payment

  	
   

  	
  27

  
	
  Section 4.03.
  Waiver

  	
   

  	
  27

  
	
  Section 4.04.
  Acknowledgments and Representations

  	
   

  	
  27

  
	
  Section 4.05.
  Subordination

  	
   

  	
  28

  
	
  Section 4.06.
  Guaranty Absolute

  	
   

  	
  28

  
	
  Section 4.07. No
  Waiver; Remedies

  	
   

  	
  28

  

 

 i
 

 

 

	
  Section 4.08. Continuing
  Guaranty

  	
   

  	
  28

  
	
  Section 4.09.
  Limitation

  	
   

  	
  29

  
	
  Section 4.10.
  Effect of Bankruptcy

  	
   

  	
  29

  
	
   

  	
   

  	
   

  
	
  ARTICLE V REPRESENTATIONS AND WARRANTIES

  	
   

  	
  29

  
	
   

  	
   

  	
   

  
	
  Section 5.01.
  Corporate Existence

  	
   

  	
  29

  
	
  Section 5.02.
  Corporate Power

  	
   

  	
  29

  
	
  Section 5.03.
  Enforceable Obligations

  	
   

  	
  30

  
	
  Section 5.04.
  Financial Statements

  	
   

  	
  30

  
	
  Section 5.05.
  Litigation

  	
   

  	
  30

  
	
  Section 5.06.
  Margin Stock; Use of Proceeds

  	
   

  	
  30

  
	
  Section 5.07.
  Investment Company Act

  	
   

  	
  31

  
	
  Section 5.08.
  ERISA

  	
   

  	
  31

  
	
  Section 5.09.
  Taxes

  	
   

  	
  31

  
	
  Section 5.10.
  Environmental Condition

  	
   

  	
  31

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI AFFIRMATIVE COVENANTS

  	
   

  	
  32

  
	
   

  	
   

  	
   

  
	
  Section 6.01.
  Compliance with Laws, Etc.

  	
   

  	
  32

  
	
  Section 6.02.
  Reporting Requirements

  	
   

  	
  32

  
	
  Section 6.03.
  Use of Proceeds

  	
   

  	
  33

  
	
  Section 6.04.
  Maintenance of Insurance

  	
   

  	
  33

  
	
  Section 6.05.
  Preservation of Corporate Existence, Etc.

  	
   

  	
  33

  
	
  Section 6.06.
  Payment of Taxes, Etc.

  	
   

  	
  34

  
	
  Section 6.07.
  Visitation Rights

  	
   

  	
  34

  
	
  Section 6.08.
  Compliance with ERISA and the Code

  	
   

  	
  34

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII NEGATIVE COVENANTS

  	
   

  	
  34

  
	
   

  	
   

  	
   

  
	
  Section 7.01.
  Financial Covenants

  	
   

  	
  34

  
	
  Section 7.02.
  Negative Pledge

  	
   

  	
  35

  
	
  Section 7.03.
  Merger and Sale of Assets

  	
   

  	
  35

  
	
  Section 7.04.
  Agreements to Restrict Dividends and Certain Transfers

  	
   

  	
  35

  
	
  Section 7.05.
  Transactions with Affiliates

  	
   

  	
  35

  
	
  Section 7.06.
  Change of Business

  	
   

  	
  36

  
	
  Section 7.07.
  Limitation on Loans, Advances and Investments

  	
   

  	
  36

  
	
  Section 7.08.
  Maintenance of Books and Records

  	
   

  	
  36

  
	
  Section 7.09.
  Debt

  	
   

  	
  36

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII EVENTS OF DEFAULT

  	
   

  	
  37

  
	
   

  	
   

  	
   

  
	
  Section 8.01.
  Events of Default

  	
   

  	
  37

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX THE ADMINISTRATIVE AGENT

  	
   

  	
  39

  
	
   

  	
   

  	
   

  
	
  Section 9.01.
  Authorization and Action

  	
   

  	
  39

  
	
  Section 9.02.
  Administrative Agent’s Reliance, Etc.

  	
   

  	
  39

  

 

 ii
 

 

 

	
  Section 9.03. Defaults

  	
   

  	
  39

  
	
  Section 9.04.
  Citibank and Affiliates

  	
   

  	
  40

  
	
  Section 9.05.
  Bank Credit Decision

  	
   

  	
  40

  
	
  Section 9.06.
  Successor Administrative Agent

  	
   

  	
  40

  
	
  Section 9.07.
  Joint Lead Arrangers and Bookrunners

  	
   

  	
  41

  
	
  Section 9.08.
  INDEMNIFICATION

  	
   

  	
  41

  
	
   

  	
   

  	
   

  
	
  ARTICLE X MISCELLANEOUS

  	
   

  	
  41

  
	
   

  	
   

  	
   

  
	
  Section 10.01.
  Amendments, Etc.

  	
   

  	
  41

  
	
  Section 10.02.
  Notices, Etc.

  	
   

  	
  42

  
	
  Section 10.03.
  No Waiver; Remedies

  	
   

  	
  43

  
	
  Section 10.04.
  Costs, Expenses and Taxes

  	
   

  	
  44

  
	
  Section 10.05.
  Right of Set-off

  	
   

  	
  44

  
	
  Section 10.06.
  Bank Assignments and Participations

  	
   

  	
  45

  
	
  Section 10.07.
  Governing Law

  	
   

  	
  46

  
	
  Section 10.08.
  Interest

  	
   

  	
  47

  
	
  Section 10.09.
  Execution in Counterparts

  	
   

  	
  48

  
	
  Section 10.10.
  Survival of Agreements, Representations and Warranties, Etc.

  	
   

  	
  48

  
	
  Section 10.11.
  The Borrower’s Right to Apply Deposits

  	
   

  	
  48

  
	
  Section 10.12.
  Confidentiality

  	
   

  	
  48

  
	
  Section 10.13.
  Binding Effect

  	
   

  	
  49

  
	
  Section 10.14.
  ENTIRE AGREEMENT

  	
   

  	
  49

  
	
  Section 10.15.
  USA PATRIOT ACT

  	
   

  	
  49

  

 

 iii
 

 

 

EXHIBITS:

	
  A

  	
   

  	
  Form of Note

  
	
  B

  	
   

  	
  Form of Notice of Borrowing

  
	
  C

  	
   

  	
  Form of Assignment

  
	
  D

  	
   

  	
  Form of Opinion of Counsel for
  the Borrower and the Guarantor

  
	
  E

  	
   

  	
  Form of Opinion of Special
  Counsel to the Administrative Agent

  
	
  F

  	
   

  	
  Form of U.S. Tax Compliance Certificate

  

 

SCHEDULES:

	
  Schedule I

  	
  -

  	
  Bank and Administrative Agent
  Addresses

  
	
  Schedule II

  	
  -

  	
  Borrower and Guarantor
  Addresses

  
	
  Schedule III

  	
  -

  	
  Permitted Liens

  
	
  Schedule IV

  	
  -

  	
  Agreements Restricting
  Dividends and Certain Transfers

  
	
  Schedule V

  	
  -

  	
  GAAP Exceptions

  
	
  Schedule VI

  	
  -

  	
  Investments

  
	
  Schedule VII

  	
  -

  	
  Permitted Debt

  

 

 iv

 

 

BRIDGE LOAN AGREEMENT (this “Agreement”), dated
as of August 28, 2006, by and among BRINKER INTERNATIONAL, INC., a Delaware
corporation (the “Borrower”), BRINKER RESTAURANT CORPORATION, a Delaware
corporation (the “Guarantor”), the financial institutions listed on the
signature pages hereof (individually, a “Bank” and collectively, the “Banks”),
and CITIBANK, N.A., as administrative agent (in such capacity, the “Administrative
Agent”) for the Banks hereunder.

The Borrower has requested that the Banks make loans
to it in an aggregate principal amount not exceeding $400,000,000 for the
general corporate purposes of the Borrower and to finance the purchase by the
Borrower of its shares, and the Banks are prepared to make such loans upon and
subject to the terms and conditions hereof. 
Accordingly, the parties hereto 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 introduction hereto.

“Affiliate” means any Person that, directly or
indirectly, controls, or is controlled by or under common control with, another
Person.  For the purposes of this
definition, the terms “control”, “controlled by” and “under common control with”,
as used with respect to any Person, means the power to direct or cause the
direction of the management and policies of such Person, directly or
indirectly, whether through the ownership of voting securities, by contract or
otherwise.  Without limiting the
generality of the foregoing, a Subsidiary of a Person is an Affiliate of that
Person.

“Agreement” has the meaning specified in the
introduction hereto.

“Applicable Lending Office” means, with respect
to each Bank, such Bank’s Domestic Lending Office in the case of a Base Rate
Loan, and such Bank’s Eurodollar Lending Office in the case of a Eurodollar
Rate Loan.

“Applicable Margin” means, at any time, the
following percentages determined as a function of the Rating Level at such
time:

	
  

  	
   

  	
  Rating Level

  1

  	
   

  	
  Rating Level

  2

  	
   

  	
  Rating Level

  3

  	
   

  	
  Rating Level

  4

  	
   

  	
  Rating Level

  5

  
	
  Eurodollar Rate Loan

  	
   

  	
  0.35%

  	
   

  	
  0.45%

  	
   

  	
  0.55%

  	
   

  	
  0.65%

  	
   

  	
  1.000%

  
	
  Base Rate Loan

  	
   

  	
  0.00%

  	
   

  	
  0.00%

  	
   

  	
  0.00%

  	
   

  	
  0.00%

  	
   

  	
  0.00%

  

 

 

“Applicable Usury Laws”,
as used in Section 10.08 of this Agreement and elsewhere in the Credit
Documents, means the Texas Finance Code, any other law of the State of Texas or
any applicable Federal law to the extent that it permits Banks to contract for,
charge, reserve or receive a greater amount of interest than under the Texas
Finance Code or other laws of the State of Texas.

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

“Banks” has the meaning specified in the
introduction hereto.

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

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

(b)           the
Federal Funds Rate for such day plus 1⁄2 of 1% per annum.

“Base Rate Borrowing” means a Borrowing
comprised of Base Rate Loans.

“Base Rate Loan” means a Loan which bears
interest as provided in Section 2.09(a)(i).

“Board” means, as to any Person, the Board of
Directors of the Person or the Executive Committee thereof.

“Borrower” has the meaning specified in the
introduction hereto.

“Borrowing” means a borrowing consisting of
simultaneous Loans of the same Type to the Borrower made by each of the Banks
pursuant to Section 2.01.

“Business Day” means a day of the year on which
banks are not required or authorized to close in Dallas, Texas or New York
City, New York and, if the applicable Business Day relates to any Eurodollar
Rate Loans, on which dealings are carried on in the interbank eurodollar
market.

“Capitalized Lease” means at any time, a lease
with respect to which the lessee thereunder is required concurrently to
recognize the acquisition of an asset and the incurrence of a liability in
accordance with GAAP.

“Capitalized Lease Obligations” means, with
respect to any Person for any period of determination, the amount of the
obligations of such Persons under Capitalized Leases which would be shown as a
liability on a balance sheet of such Person prepared in accordance with GAAP.

“Citibank” means Citibank, N.A.

 2
 

 

 

“Code” means, as appropriate, the Internal
Revenue Code of 1986, as amended, or any successor Federal tax code, and any
reference to any statutory provision shall be deemed to be a reference to any
successor provision or provisions.

“Commitment” of any Bank means at any time the
amount set forth on the signature pages opposite such Bank’s name on the
signature pages hereof or in an Assignment, as such amount may be terminated or
reduced pursuant to Section 2.07, Section 8.01 or Section
10.06.

“Confidential Information” has the meaning
specified in Section 10.12.

“Consolidated” refers to the consolidation of the
accounts of any Person and its Subsidiaries in accordance with GAAP.

“Controlled Group” means any group of
organizations within the meaning of Section 414(b), (c), (m), or (o) of the
Code of which the Borrower or its Subsidiaries is a member.

“Corporate Franchise” means the right or
privilege granted by the state or government to the Person forming a
corporation, and their successors, to exist and do business as a corporation
and to exercise the rights and powers incidental to that form of organization or
necessarily implied in the grant.

“Credit Documents” means this Agreement, the
Notes, and each other agreement, instrument or document executed by the
Borrower or the Guarantor at any time in connection with this Agreement.

“Debt” means, in the case of any Person,
without duplication, (i) indebtedness of such Person for borrowed money, (ii)
obligations of such Person evidenced by bonds, debentures, notes or other
similar instruments, (iii) Capitalized Lease Obligations, and (iv) obligations
of such Person under or relating to letters of credit or guaranties in respect
of, and obligations (contingent or otherwise) to purchase or otherwise acquire,
or otherwise to assure a creditor against loss in respect of, indebtedness or
obligations of others of the kinds referred to in clauses (i) through (iii)
of this definition.  For the purposes of
this Agreement, the term Debt shall not include any obligation of the Borrower
or the Guarantor incurred by entering into, or by guaranteeing, any transaction
that is a rate swap, basis swap, forward rate transaction, commodity swap,
commodity option, equity or equity index swap or option, foreign exchange
transaction, currency swap or option or any similar transaction.

“Debt Issuance” means any long-term debt
issuance in the capital markets by the Borrower consummated after the Effective
Date.

“Debt to Cash Flow Ratio” has the meaning
specified in Section 7.01(b).

“Default” means an event which, with the giving
of notice, the lapse of time or both, would constitute an Event of Default.

“Domestic Lending Office” means, with respect
to any Bank, the office of such Bank specified as its “Domestic Lending Office”
opposite its name on Schedule I hereto or in an

 3
 

 

 

Assignment or such other office of such Bank as such
Bank may from time to time specify to the Borrower and the Administrative
Agent.

“Drawdown Period” means the period of time
commencing on the Effective Date and ending on December 29, 2006.

“EBIT” means for any period, the Consolidated
earnings of a Person during such period from continuing operations, exclusive
of gains on sales of assets not in the ordinary course of business (to the
extent such gains are included in earnings from continuing operations) and
extraordinary items, as determined under GAAP, but without deducting federal,
state, foreign and local income taxes and Interest Expense.

“EBITDA” means, for any period, the
Consolidated earnings of a Person during such period from continuing
operations, exclusive of gains on sales of assets not in the ordinary course of
business (to the extent such gains are included in earnings from continuing
operations) and extraordinary items, as determined under GAAP, but without
deducting federal, state, foreign and local income taxes, Interest Expense,
depreciation and amortization.

“Effective Date” means the date that the
Administrative Agent notifies the Borrower that the documents provided for in Section
3.01(a) shall have been received or waived.

“Eligible Assignee” means (i) a Bank or any
affiliate of any Bank; (ii) a commercial bank or financial institution with an
office in the United States of America acceptable to the Administrative Agent
and the Borrower, such acceptance not to be unreasonably withheld; (iii) a
finance company, insurance company or other financial institution or fund
(whether a corporation, partnership or other entity) which 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, or
any other Person, in each case, acceptable to the Borrower and the
Administrative Agent in their discretion.

“Environment” shall have the meaning set forth
in 42 U.S.C. §9601(8) (1982).

“Environmental Protection Statute” shall mean
any United States of America local, state or federal, or any foreign, law,
statute, regulation, order, consent decree or other Governmental Requirement
arising from or in connection with or relating to the protection or regulation
of the Environment, including, without limitation, those laws, statutes,
regulations, orders, decrees and other Governmental Requirements relating to
the disposal, cleanup, production, storing, refining, handling, transferring,
processing or transporting of Hazardous Waste, Hazardous Substances or any
pollutant or contaminant, wherever located.

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

“Eurocurrency Liabilities” has the meaning assigned
to that term in Regulation D of the Board of Governors of the Federal Reserve
System, as in effect from time to time.

 4
 

 

 

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

“Eurodollar Rate” means, for any Interest
Period, the offered rate for deposits in U.S. dollars for a period equal to or
nearest the number of days in such Interest Period which appears on Telerate
Page 3750 as of approximately 11:00 a.m. London time on the date two
Business Days prior to the first day of such Interest Period, provided,
that (i) if such rates do not appear on such Telerate Page 3750, the “Eurodollar
Rate” shall mean, for any Interest Period, the offered rate for deposits in
U.S. Dollars for a period equal to or nearest the number of days in such
Interest Period which appears on the Reuters Screen LIBO Page, and (ii) if
such rate or rates do not appear on either Telerate Page 3750 or the Reuters
Screen LIBO Page, the “Eurodollar Rate” shall mean, with respect to each day
during such Interest Period, the rate per annum equal to the average (rounded
upwards, if necessary, to the nearest 1/16 of 1%) of the respective rates
notified to the Administrative Agent by each Reference Bank as the rate at
which U.S. Dollar deposits are offered to such Reference Bank by prime banks at
or about 11:00 a.m., London time, two Business Days prior to the beginning of
such Interest Period in the London interbank market for delivery on the first
day of such Interest Period for a period approximately equal to the number of
days in such Interest Period and in an amount comparable to the principal
amount of the Loans.

“Eurodollar Rate Borrowing” means a Borrowing
comprised of Eurodollar Rate Loans.

“Eurodollar Rate Loan” means any Loan as to
which the Borrower shall have selected an interest rate based upon the
Eurodollar Rate as provided in Article II.

“Eurodollar Rate Reserve Percentage” of any
Bank for any Interest Period for any Eurodollar Rate Loan means the reserve
percentage applicable during such Interest Period (or if more than one such
percentage shall be so applicable, the daily average of such percentages for
those days in such Interest Period during which any such percentage shall be so
applicable) 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 such Bank with respect
to liabilities or assets consisting of or including Eurocurrency Liabilities
having a term equal to such Interest Period.

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

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

“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

 5
 

 

 

which 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” means the chief financial
officer, the principal accounting officer, any vice president or assistant vice
president with accounting or financial responsibilities, or the treasurer or
any assistant treasurer of the Borrower.

“GAAP” means generally accepted accounting
principles for financial reporting as in effect from time to time in the United
States of America, applied on a consistent basis.

“Governmental Requirements” means all
judgments, orders, writs, injunctions, decrees, awards, laws, ordinances,
statutes, regulations, rules, Corporate Franchises, permits, certificates,
licenses, authorizations and the like and any other requirements of any
government or any commission, board, court, agency, instrumentality or
political subdivision thereof.

“Guaranteed Obligations” means all obligations
of the Borrower to the Banks and the Administrative Agent hereunder and under
the Notes and any other Credit Document to which the Borrower is a party,
whether for principal, interest, fees, expenses, indemnities or otherwise, and
whether now or hereafter existing.

“Guarantor” has the meaning specified in the
introduction hereto.

“Hazardous Substance” shall have the meaning
set forth in 42 U.S.C. §9601(14) and shall also include each other substance
considered to be a hazardous substance under any Environmental Protection
Statute.

“Hazardous Waste” shall have the meaning set
forth in 42 U.S.C. §6903(5) and shall also include each other substance
considered to be a hazardous waste under any Environmental Protection Statute
(including, without limitation, 40 C.F.R. §261.3).

“Insufficiency” means, with respect to any
Plan, the amount, if any, by which the present value of the vested benefits
under such Plan exceeds the fair market value of the assets of such Plan
allocable to such benefits.

“Interest Expense” means, with respect to any Person
for any period of determination, its interest expense determined in accordance
with GAAP, including, without limitation, all interest with respect to
Capitalized Lease Obligations and all capitalized interest, but excluding
deferred financing fees.

“Interest Payment Dates” means, with respect to
each Loan, the earlier of (i) the last day of the applicable Interest Period
related to such Loan, (ii) the Maturity Date, (iii) the date of demand therefor
with respect to interest accruing under Section 2.12(f), and (iv) the
date of any prepayment of any Loan, whether or not such prepayment is otherwise
permitted hereunder.

 6
 

 

 

“Interest Period”
means with respect to any Loan:

(a)           if such
Loan is a Eurodollar Rate Loan, the period commencing on the date of such Loan
or on the last day of the immediately preceding Interest Period applicable to
such Loan, as the case may be, and ending on the numerically corresponding day
(or if there is no corresponding day, the last day) in the calendar month that
is one (1), two (2) or three (3) months thereafter, as the Borrower may select,
and

(b)           if such
Loan is a Base Rate Loan, the period commencing on the date of such Loan or on
the last day of the immediately preceding Interest Period applicable to such
Loan, as the case may be, and ending ninety (90) days later or, if earlier, on
the Maturity Date or the date of the prepayment of such Loan;

in
each case, as selected by the Borrower, as provided in Section 2.02.  Notwithstanding the foregoing, however:

(i)            if any Interest Period would end on a day which
shall not be a Business Day, such Interest Period shall be extended to the next
succeeding Business Day unless, with respect to Eurodollar Rate Loans only, such next succeeding Business Day would
fall in the next calendar month, in which case such Interest Period shall end
on the next preceding Business Day;

(ii)           any Interest Period for any Loan that would otherwise end later than the Maturity
Date shall end on the Maturity Date; and

(iii)          Interest Periods commencing on the same date for Loans
comprising the same Borrowing shall be of
the same duration.

Interest
shall accrue from and including the first day of an Interest Period to but
excluding the last day of an Interest Period. 
The Administrative Agent shall promptly advise each Bank in writing of
each Interest Period so selected by the Borrower with respect to each
Borrowing.

“Investments” has the meaning specified in Section
7.07.

“JPMCB” means JPMorgan Chase Bank, N.A.

“Lien” means any mortgage, lien, pledge,
charge, deed of trust, security interest, encumbrance or other type of
preferential arrangement to secure or provide for the payment of any obligation
of any Person, whether arising by contract, operation of law or otherwise
(including, without limitation, the interest of a vendor or lessor under any
conditional sale agreement, Capitalized Lease or other title retention
agreement).

“Liquid Investments” means:

(a)           direct
obligations of, or obligations the principal of and interest on which are
guaranteed or insured by, the United States of America or any agency or
instrumentality thereof;

 7
 

 

 

(b)           (i)  negotiable or nonnegotiable certificates of
deposit, time deposits, bankers’ acceptances or other similar banking
arrangements maturing within twelve (12) months from the date of acquisition
thereof (“bank debt securities”), issued by (A) any Bank or any Affiliate of
any Bank or (B) any other foreign or domestic bank, trust company or financial
institution which has a combined capital surplus and undivided profit of not
less than $100,000,000 or the U.S. Dollar equivalent thereof, if at the time of
deposit or purchase, such bank debt securities are rated not less than “BB” (or
the then equivalent) by the rating service of S&P or of Moody’s, (ii)
commercial paper issued by (A) any Bank or any Affiliate of any Bank or (B) any
other Person if at the time of purchase such commercial paper is rated not less
than “A-2” (or the then equivalent) by the rating service of S&P or not
less than “P-2” (or the then equivalent) by the rating service of Moody’s, or
upon the discontinuance of both of such services, such other nationally
recognized rating service or services, as the case may be, as shall be selected
by the Borrower or the Guarantor, (iii) debt or other securities issued by (A)
any Bank or Affiliate of any Bank or (B) or any other Person, if at the time of
purchase such Person’s debt or equity securities are rated not less than “BB”
(or the then equivalent) by the rating service of S&P or of Moody’s, or
upon the discontinuance of both such services, such other nationally recognized
rating service or services, as the case may be, as shall be selected by the
Borrower or the Guarantor and (iv) marketable securities of a class registered
pursuant to Section 12(b) or (g) of the Exchange Act;

(c)           repurchase
agreements relating to investments described in clauses (a) and (b)
above with a market value at least equal to the consideration paid in
connection therewith, with any Person who has a combined capital surplus and
undivided profit of not less than $100,000,000 or the U.S. Dollar equivalent
thereof, if at the time of entering into such agreement the debt securities of
such Person are rated not less than “BBB” (or the then equivalent) by the
rating service of S&P or of Moody’s, or upon the discontinuance of both
such services, such other nationally recognized rating service or services, as
the case may be, as shall be selected by the Borrower or the Guarantor; and

(d)           shares of
any mutual fund registered under the Investment Company Act of 1940, as
amended, which invests solely in underlying securities of the types described
in clauses (a), (b) and (c) above.

“Loan” means a loan by a Bank to the Borrower
as part of a Borrowing and refers to a Base Rate Loan or a Eurodollar Rate
Loan, each of which shall be a “Type” of Loan.

“Majority Banks” means (a) Banks holding more
than fifty percent (50%) of the then aggregate unpaid principal amount of the Loans
held by the Banks, or, if no such principal amount is then outstanding, Banks
having more than fifty percent (50%) of the Commitments or (b) if and for so
long as Citibank and JPMCB are the sole Banks, both Banks.

“Material Adverse Effect” means, relative to
any occurrence whatsoever, any effect which (a) is material and adverse to the
financial condition or business operations of the Borrower and its
Subsidiaries, on a Consolidated basis, or (b) adversely affects the
legality, validity or enforceability of this Agreement or any Note, or
(c) causes a Default or an Event of Default.

 8
 

 

 

“Maturity Date” means the earlier of (a) the
first anniversary of the Effective Date and (b) the date that is three Business
Days following the date of the Debt Issuance; provided, that if such
date shall not be a Business Day, the Maturity Date shall be the immediately
preceding Business Day.

“Maximum Rate” shall mean at the particular
time in question the maximum non-usurious rate of interest which, under
Applicable Usury Law, may then be contracted for, taken, reserved, charged or
received under this Agreement, the Notes or under any other agreement entered
into in connection with this Agreement or the Notes.  If such maximum non-usurious rate of interest
changes after the date hereof, the Maximum Rate shall, from time to time, be
automatically increased or decreased, as the case may be, as of the effective
date of each change in such maximum rate, in each case without notice to
Borrower.

“Moody’s” means Moody’s Investors Service, Inc.
and any successor thereto.

“Moody’s Rating” means, at any time, the rating
of the Borrower’s senior unsecured, long-term, non-credit-enhanced indebtedness
for borrowed money then most recently announced by Moody’s.

“Net Worth” of any Person means, as of any date
of determination, the excess of total assets of such Person over total
liabilities, total assets and total liabilities each to be determined in
accordance with GAAP.

“Note” means a promissory note of the Borrower
payable to the order of any Bank, in substantially the form of Exhibit A
hereto.

“Notice of Borrowing” has the meaning specified
in Section 2.02.

“Obligated Party” has the meaning specified in Section
4.03.

“Other Taxes” has the meaning specified in Section
2.17(b).

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

“Permitted Liens” means, with respect to any
Person (except as to clause (h) below, which specifically refers to the
Borrower and its Subsidiaries), Liens:

(a)           for taxes,
assessments or governmental charges or levies on property of such Person
incurred in the ordinary course of business to the extent not required to be
paid pursuant to Sections 6.01 and 6.06;

(b)           imposed by
law, such as landlords’, carriers’, warehousemen’s and mechanics’ liens and
other similar Liens arising in the ordinary course of business securing obligations
which are not overdue for a period of more than sixty (60) days or which are
being contested in good faith and by appropriate proceedings;

(c)           arising in
the ordinary course of business (i) out of pledges or deposits under workers’
compensation laws, unemployment insurance, old age pensions or other social
security

 9
 

 

 

or retirement benefits, or similar legislation or to
secure public or statutory obligations of such Person or (ii) which were not
incurred in connection with the borrowing of money and do not in the aggregate
materially detract from the value or use of the assets of the Borrower and its
Subsidiaries in the operation of their business;

(d)           securing
Debt existing on the date of this Agreement and listed on the attached Schedule
III or reflected in the financial statements referenced in Section 5.04;
provided, that, the Debt secured by such Liens shall not be
renewed, refinanced or extended if the amount of such Debt so renewed is
greater than the outstanding amount of such Debt on the date of this Agreement;

(e)           constituting
easements, rights-of-way, restrictions and other similar encumbrances incurred
in the ordinary course of business and encumbrances consisting of zoning
restrictions, easements, licenses, restrictions on the use of property or minor
imperfections in title thereto which, in the aggregate, are not material in
amount, and which do not in any case materially detract from the value of the
property subject thereto or materially interfere with the ordinary conduct of
the business of such Person;

(f)            securing
judgments against such Person which are being appealed;

(g)           on real
property acquired by such Person after the date of this Agreement and securing
only Debt of such Person incurred to finance the purchase price of such
property; provided, that, any such Lien is created within one
hundred eighty (180) days of the acquisition of such property; or

(h)           other than
those Liens otherwise permitted above, Liens securing Debt of the Borrower and
its Subsidiaries in an aggregate principal amount not in excess of five percent
(5.0%) of the Borrower’s Net Worth, on a Consolidated basis, as reflected on
the most recent financial statements of the Borrower and its Consolidated
Subsidiaries delivered to the Banks pursuant to Section 5.04 or 6.02.

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

“Plan” means an employee pension benefit plan
within the meaning of Title IV of ERISA which is either (a) maintained for
employees of the Borrower, of any Subsidiary of the Borrower, or of any member
of the Controlled Group, or (b) maintained pursuant to a collective bargaining
agreement or any other arrangement under which more than one employer makes
contributions and to which the Borrower, any Subsidiary of the Borrower or any
member of the Controlled Group is at the time in question making or accruing an
obligation to make contributions or has within the preceding five plan years
made contributions.

“Rating” means the Moody’s Rating or the
S&P Rating, as the case may be.

“Rating Level” refers to the Rating in effect
during any Rating Level Period.

 10

 

 

“Rating Level Period” means a Rating Level 1
Period, a Rating Level 2 Period, a Rating Level 3 Period, a Rating Level 4
Period or a Rating Level 5 Period; provided that:

(i)                                     “Rating
Level 1 Period” means a period during which the Moody’s Rating is at or above
A3 or the S&P Rating is at or above A-;

(ii)                                  “Rating
Level 2 Period” means a period that is not a Rating Level 1 Period, during
which the Moody’s Rating is at or above Baa1 or the S&P Rating is at or
above BBB+;

(iii)                               “Rating
Level 3 Period” means a period that is not a Rating Level 1 Period or a
Rating Level 2 Period, during which the Moody’s Rating is at or above Baa2 or
the S&P Rating is at or above BBB;

(iv)                              “Rating
Level 4 Period” means a period that is not a Rating Level 1 Period, a
Rating Level 2 Period or a Rating Level 3 Period, during which the Moody’s
Rating is at or above Baa3 or the S&P Rating is at or above BBB-; and

(v)                                 “Rating
Level 5 Period” means a period that is not a Rating Level 1 Period, a
Rating Level 2 Period, a Rating Level 3 Period or a Rating Level 4 Period;

it being understood that, in application of the
foregoing provisions, if the Moody’s Rating and the S&P Rating differ by
one Rating Level, then the applicable Rating Level shall be based upon the
Rating Level resulting from the higher of such ratings; and provided,
that if the Moody’s Rating and the S&P Rating differ by more than one
Rating Level, then the applicable Rating Level Period shall be one Rating Level
higher than the Rating Level resulting from the application of the lower of
such ratings (for which purposes Rating Level 1 is the highest and Rating Level
5 is the lowest); and provided, further, that any period during which
there is no Moody’s Rating or there is no S&P Rating shall be a Rating
Level 5 Period.

“Reference Banks” mean Citibank and JPMCB.

“Rent Expense” means, for any Person for any
period of determination, such Person’s operating lease expense computed in
accordance with GAAP, including, without limitation, all contingent rentals,
but excluding all common area maintenance expenses.

“Reuters Screen LIBO Page” shall mean the
display designated as page “LIBO” on the Reuter Monitor Money Rates Service or
such other page as may replace the “LIBO” page on that service for the purpose
of displaying London interbank offered rates of major banks.

“SEC” means the United States of America
Securities and Exchange Commission (and any successor thereto).

“SEC Filing” means a report or statement filed
with the SEC pursuant to Sections 13, 14, or 15(d) of the Exchange Act and the
regulations thereunder.

 11
 

 

 

“Significant Subsidiary” means any Subsidiary
which is a “significant subsidiary” of the Borrower within the meaning of Rule
1-02 of Regulation S-X under the Exchange Act.

“Solvent” means, with respect to any Person,
that, as of any date of determination, (a) the amount of the present fair
saleable value of the assets of such Person will, as of such date, exceed the
amount of all liabilities of such Person, contingent or otherwise, as of such
date, as such terms are determined in accordance with applicable federal and
state laws governing determinations of the insolvency of debtors, (b) the
present fair saleable value of the assets of such Person will, as of such date,
be greater than the amount that will be required to pay the liability of such
Person on its debts as such debts become absolute and matured, (c) such Person
will not have, as of such date, an unreasonably small capital with which to
conduct its business, and (d) such Person will be able to pay its debts as they
mature.  For purposes of this definition,
(i) “debt” means liability on a “claim”, and (ii) “claim” means any (x) right
to payment, whether or not such a right is reduced to judgment, liquidated,
unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed,
legal, equitable, secured or unsecured or (y) right to an equitable remedy for
breach of performance if such breach gives rise to a right to payment, whether
or not such right to an equitable remedy is reduced to judgment, fixed, contingent,
matured or unmatured, disputed, undisputed, secured or unsecured.

“S&P” means Standard & Poors Rating
Services or any successor thereto.

“S&P Rating” means, at any time, the rating
of the Borrower’s senior unsecured, long term, non-credit-enhanced indebtedness
for borrowed money then most recently announced by S&P.

“Subsidiary” means, as to any Person, any
corporation, limited liability company, association or other business entity in
which such Person or one or more of its Subsidiaries directly or indirectly
through one or more intermediaries owns sufficient equity or voting interests
to enable it or them (individually or as a group) ordinarily, in the absence of
contingencies, to elect a majority of the directors (or Persons performing
similar functions) of such entity, and any partnership or joint venture if more
than a fifty percent (50%) interest in the profits or capital thereof is owned
directly or indirectly by such Person, or by one or more of its Subsidiaries,
or collectively by such Person and one or more of its Subsidiaries (unless such
partnership can and does ordinarily take major business actions without the
prior approval of such Person or one or more of its Subsidiaries).  Unless the context otherwise clearly
requires, any reference to a “Subsidiary” is a reference to a direct or
indirect Subsidiary of the Borrower.

“Taxes” has the meaning specified in Section
2.17(a).

“Telerate Page 3750” shall mean the display
designated as page “3750” on the Telerate Service or such other page as may replace
the “3750” page on that service or such other service or services as may be
nominated by the British Bankers’ Association for the purpose of displaying
London interbank offered rates for U.S. dollar deposits.

“Termination Event” means (i) a “reportable
event”, as such term is described in Section 4043 of ERISA (other than a “reportable
event” not subject to the provision for 30 day notice to the PBGC), or an event
described in Section 4062(f) of ERISA, or (ii) the withdrawal of the

 12
 

 

 

Borrower or any member of the Controlled Group from a
Plan during a plan year in which it was a “substantial employer”, as such term
is defined in Section 4001(a)(2) of ERISA, or the incurrence of liability by
the Borrower or any member of the Controlled Group under Section 4064 of ERISA
upon the termination of a Plan or Plan, or (iii) the distribution of a notice
of intent to terminate a Plan pursuant to Section 4041(a)(2) of ERISA or the
treatment of a Plan amendment as a termination under Section 4041 of ERISA, or
(iv) the institution of proceedings to terminate a Plan by the PBGC under
Section 4042 of ERISA, or (v) any other event or condition which might
constitute grounds under Section 4042 of ERISA for the termination of, or the
appointment of a trustee to administer, any Plan.

“Total Commitment” means, at any time, the
aggregate amount of the Commitments of the Banks, as in effect at such time.

“Type” has the meaning set forth in the
definition of the term “Loan” above.

“UFCA” means the Uniform Fraudulent Conveyance
Act, as amended from time to time.

“UFTA” means the Uniform Fraudulent Transfer
Act, as amended from time to time.

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

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 and financial terms
not specifically defined herein and the compliance with each covenant contained
herein with respect to financial matters (unless a different procedure is
otherwise set forth herein) shall be construed in accordance with GAAP.  If subsequent to the date hereof, the
accounting principles under GAAP are changed and as a result of such change the
calculation of any financial covenant set forth herein is affected, the Banks
and Borrower hereby agree to amend such financial covenants in such a manner as
to make such financial covenants consistent with the financial covenants in
effect hereunder prior to such change in accounting principles and, until such
amendment is effected, such financial covenants shall be calculated from
financial statements of the Borrower adjusted to reflect the accounting
principles followed by the Borrower prior to such change in accounting
principles.

Section 1.04.  Miscellaneous.  The words “hereof”, “herein” and “hereunder”
and words of similar import when used in this Agreement shall refer to this
Agreement as a whole and not to any particular provision of this Agreement, and
Article, Section, Schedule and Exhibit references are to Articles and Sections
of and Schedules and Exhibits to this Agreement, unless otherwise specified.

 13
 

 

 

ARTICLE II

AMOUNTS AND TERMS OF THE LOANS

Section 2.01.  The Loans.  Each
Bank, severally and for itself alone, on the terms and conditions hereinafter
set forth, hereby agrees to make loans in a series of no more than five
Borrowings to the Borrower from time to time on any Business Day during the
Drawdown Period (each a “Loan”) in an aggregate amount outstanding not to
exceed at any time such Bank’s Commitment, subject, however, to the conditions that (a) at no time shall the
aggregate outstanding principal amount of all Loans made by all Banks exceed the Total  Commitment, and (b) at all times the aggregate
outstanding principal amount of all Loans made by a Bank shall equal the product of (i) the percentage its
Commitment represents of the Total Commitment times (ii) the outstanding
aggregate principal amount of all Loans  made by all Banks.  Each Borrowing shall be in an aggregate
amount of not less than  $10,000,000
or integral multiples of $1,000,000 in excess thereof, and shall consist of Loans of the same Type made to the Borrower on the
same day by the Banks ratably according to their respective Commitments and
having the same Interest Period.

Section 2.02.  Making
the Loans.  Each Borrowing shall be
made on notice, given not later than 11:00 A.M. (New York City time) (a) in the
case of a proposed Borrowing comprised of Eurodollar Rate Loans, at least three
(3) Business Days prior to the date of the proposed Borrowing, and (b) in the
case of a proposed Borrowing comprised of Base Rate Loans, on the Business Day
of the proposed Borrowing, by the Borrower to the Administrative Agent, which
shall give to each Bank prompt notice thereof by telecopy, telex or cable.  Each such notice of a Borrowing (a “Notice
of Borrowing”) shall be in writing (including by telecopy), in
substantially the form of Exhibit B hereto, executed by the
Borrower.  Each Notice of Borrowing shall
refer to this Agreement and shall specify the requested (i) date of such
Borrowing (which shall be a Business Day), (ii) Type of Loans comprising such
Borrowing, (iii) aggregate principal amount of such Borrowing, and (iv)
Interest Period for each such Borrowing. 
Each Bank shall, before 1:00 P.M. (New York City time) on the date of a
proposed Borrowing, make available for the account of its Applicable Lending
Office to the Administrative Agent at its address referred to in Section
10.02, in same day funds, such Bank’s ratable portion of such
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 at the Administrative Agent’s aforesaid address.

Section 2.03.  [Reserved]

Section 2.04.  [Reserved]

Section 2.05.  Borrowings;
Loans; Termination of Eurodollar Rate Loans.

(a)           Loans
shall be made by the Banks ratably in accordance with their respective
Commitments on the date of each Borrowing, provided, however,
that the failure of any Bank to make any Loan shall not in itself relieve any
other Bank of its obligation to lend hereunder. 
If requested by a Bank, each Loan by such Bank shall be made against
delivery to such Bank of an appropriate Note, payable to the order of such
Bank, in the principal amount of such Loan.

 14
 

 

 

(b)           Each
Borrowing shall be a Eurodollar Rate Borrowing or a Base Rate Borrowing, as the
Borrower may request subject to the terms and conditions hereof.  Each Bank may at its option make any
Eurodollar Rate Loan by causing the Eurodollar Lending Office of such Bank to
make such Loan, provided, however, that any exercise of such
option shall not affect the obligation of the Borrower to repay such Loan in
accordance with the terms of the applicable Note and this Agreement.  Loans of more than one (1) interest rate option
may be outstanding at the same time, provided, however, that the
Borrower shall not be entitled to request any Loans which, if made, would
result in an aggregate of more than five (5) separate Loans of any Bank being
outstanding hereunder at any time.  For
purposes of the foregoing, Loans having different Interest Periods, regardless
of whether they commence on the same date, shall be considered separate Loans.

(c)           Each
Bank shall, before 1:00 P.M. (New York City time) on the date of each Borrowing
make available at its Applicable Lending Office for the account of the
Administrative Agent at its address referred to in Section 10.02, in
immediately available funds, such Bank’s portion of such Borrowing.  After the Administrative Agent’s receipt of
such funds and upon satisfaction of the applicable conditions set forth in Article
III, the Administrative Agent will make such funds available to the
Borrower not later than 2:00 P.M. (New York City time) at such account of the
Borrower as the Borrower shall from time to time designate in a notice
delivered to the Administrative Agent and is reasonably acceptable to the
Administrative Agent.  If the applicable
conditions set forth in Article III to any such Borrowing have not been
met prior to 2:00 P.M. (New York City time) the Administrative Agent shall so
notify the Banks making the Loans comprising such Borrowing and return the
funds so received to the respective Banks as soon as practicable.

(d)           Notwithstanding
anything in this Agreement to the contrary:

(i)            if any Bank shall, at least one (1)
Business Day before the date any requested Borrowing is to be made, notify the
Administrative Agent that the introduction of or any change in or in the
interpretation of any law or regulation makes it unlawful, or that any central
bank or other governmental authority asserts that it is unlawful, for such Bank
or its Eurodollar Lending Office to perform its obligations hereunder to make
Eurodollar Rate Loans or to fund Eurodollar Rate Loans hereunder, the right of
the Borrower to select Eurodollar Rate Loans for such Borrowing or any
subsequent Borrowing shall be suspended until such Bank shall notify the
Administrative Agent that the circumstances causing such suspension no longer
exist, and except as provided in clause (iv) below, each Loan comprising
such Borrowing shall be a Base Rate Loan;

(ii)           if the Majority Banks shall, on or
before the date any requested Borrowing consisting of Eurodollar Rate Loans is
to be made, notify the Administrative Agent that the Eurodollar Rate for such Eurodollar
Rate Loans will not adequately reflect the cost to such Banks of making their
respective Eurodollar Rate Loans, the right of the Borrower to select the
Eurodollar Rate for such Borrowing or any subsequent Borrowing shall be
suspended until the Administrative Agent, at the request of the Majority Banks,
shall notify the Borrower and the Banks that the circumstances causing such
suspension no longer exist, and except as provided in clause (iv) below,
each Loan comprising such Borrowing shall be a Base Rate Loan;

 15
 

 

 

(iii)          if the Reference Banks fail to furnish
timely information to the Administrative Agent for determining the Eurodollar
Rate for Eurodollar Rate Loans comprising any requested Borrowing to be made,
(A) the Administrative Agent shall forthwith notify the Borrower and the Banks
that the interest rate cannot be determined for such Eurodollar Rate Loans, (B)
the right of the Borrower to select Eurodollar Rate Loans for such Borrowing or
any subsequent Borrowing shall be suspended until the Administrative Agent
shall notify the Borrower and the Banks that the circumstances causing such
suspension no longer exist, and (C) each Loan comprising such Borrowings shall
be a Base Rate Loan;

(iv)          if the Borrower has requested a
proposed Borrowing consisting of Eurodollar Rate Loans and as a result of
circumstances referred to in clauses (i) and (ii) above, such
Borrowing would not consist of Eurodollar Rate Loans, the Borrower may, by
notice given not later than 2:00 P.M. (New York City time) at least one (1)
Business Day prior to the date such proposed Borrowing would otherwise be made,
cancel such Borrowing, in which case such Borrowing shall be canceled and no
Loans shall be made as a result of such requested Borrowing; and

(v)           if the Borrower shall fail to select
the duration or continuation of any Interest Period for any Loans consisting of
Eurodollar Rate Loans, in accordance with the provisions contained in the
definition of “Interest Period” in Section 1.01 and this Section
2.05(d), the Administrative Agent will promptly so notify the Borrower and
the Banks and such Loans will be made available to the Borrower on the date of
such Borrowing as Base Rate Loans.

(e)           Each
Notice of a Borrowing shall be irrevocable and binding on the Borrower, except
as set forth in Section 2.05(d)(iv). 
In the case of any Eurodollar Rate Loan requested by the Borrower in a
Notice of Borrowing, the Borrower shall indemnify each Bank against any loss,
cost or expense incurred by such Bank as a result of any failure to fulfill, on
or before the date specified for such 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 Bank to
fund such Loan to be made by such Bank as part of such Borrowing when such
Loan, as a result of such failure, is not made on such date.  A certificate in reasonable detail as to the
basis for and the amount of such loss, cost or expense submitted to the
Borrower and the Administrative Agent by such Bank shall be prima facie
evidence of the amount of such loss, cost or expense.  If a Borrowing requested by the Borrower to
be comprised of Eurodollar Rate Loans is not made as a Borrowing comprised of
Eurodollar Rate Loans as a result of Section 2.05(d), the Borrower shall
indemnify each Bank against any loss (excluding loss of profits), cost or
expense incurred by such Bank by reason of the liquidation or reemployment of
deposits or other funds acquired by such Bank (prior to the time such Bank is
actually aware that such Borrowing will not be so made), to fund the Loan to be
made by such Bank as part of such Borrowing. 
A certificate in reasonable detail as to the basis for and the amount of
such loss, cost or expense submitted to the Borrower and the Administrative
Agent by such Bank shall be prima facie evidence of the amount of such loss,
cost or expense.

(f)            Unless
the Administrative Agent shall have received notice from a Bank prior to the
date of any Borrowing that such Bank will not make available to the
Administrative Agent such Bank’s ratable portion of such Borrowing, the
Administrative Agent may assume that such

 16
 

 

 

Bank has made such portion available to the
Administrative Agent on the date of such Borrowing in accordance with Section
2.02 and the Administrative Agent may, in reliance upon such assumption,
make available to the Borrower requesting such Borrowing on such date a
corresponding amount.  If and to the
extent that such Bank shall not have so made such ratable portion available to
the Administrative Agent, such Bank 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 Loans comprising such Borrowing and (ii) in the case
of such Bank, the Federal Funds Rate.  If
such Bank shall repay to the Administrative Agent such corresponding amount,
such amount so repaid shall constitute such Bank’s Loan as part of such
Borrowing for purposes of this Agreement.

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

Section 2.06.  Conversions and Continuations of
Borrowings.

(a)           Subject
to the limitations set forth in Section 2.05(d), the Borrower shall have
the right at any time upon prior irrevocable notice to the Administrative Agent
(i) not later than 11:00 A.M. (New York City time) on the last day of the
Interest Period therefor, to convert any Borrowing which constitutes a
Eurodollar Rate Borrowing into a Base Rate Borrowing or to continue any Base
Rate Borrowing for an additional Interest Period and (ii) not later than 10:00
A.M. (New York City time) three (3) Business Days prior to the date of
conversion or continuation, to convert any Borrowing which constitutes a Base
Rate Borrowing into a Eurodollar Rate Borrowing or to continue any Borrowing
constituting a Eurodollar Rate Borrowing for an additional Interest Period,
subject in each case to the following:

(A)          each conversion or continuation shall
be made pro rata among the Banks in accordance with the respective principal
amounts of the Loans comprising the converted or continued Borrowing;

(B)           if less than all the outstanding
principal amount of any Borrowing shall be converted or continued, the aggregate
principal amount of such Borrowing converted or continued shall be in an amount
of $10,000,000 or an integral multiple of $1,000,000 in excess thereof;

(C)           accrued interest on a Loan (or
portion thereof) being converted or continued shall be paid by the Borrower at
the time of conversion or continuation;

(D)          if any Eurodollar Rate Borrowing is
converted at a time other than the end of the Interest Period applicable
thereto, the Borrower shall pay, upon demand, any amounts due to the Banks
pursuant to Section 2.05(e) as a result of such conversion;

(E)           no Interest Period may be selected
for any Eurodollar Rate Borrowing that would end later than the Maturity Date;

 17
 

 

 

(F)           no Default or Event of Default shall
have occurred and be continuing at the time of, or result from, such conversion
or continuation; and

(G)           each such conversion or continuation
shall constitute a representation and warranty by the Borrower and the
Guarantor that no Default or Event of Default (i) has occurred and is
continuing at the time of such conversion or continuation, or (ii) would result
from such conversion or continuation.

(b)           Each
notice pursuant to Section 2.06(a) shall be irrevocable, shall be in
writing (or telephone notice promptly confirmed in writing) and shall refer to
this Agreement and specify (i) the identity and amount of the Borrowing that
the Borrower requests be converted or continued, (ii) whether such Borrowing is
to be converted to or continued as a Eurodollar Rate Borrowing or a Base Rate
Borrowing made pursuant to a Borrowing, (iii) if such notice requests a
conversion, the date of such conversion (which shall be a Business Day) and
(iv) if such Borrowing is to be converted to or continued as a Eurodollar Rate
Borrowing, the Interest Period with respect to any conversion to or
continuation as a Eurodollar Rate Borrowing, the Interest Period with respect
thereto.  If no Interest Period is
specified in any such notice with respect to any conversion to or continuation
as a Eurodollar Rate Borrowing, the Borrower shall be deemed to have selected
an Interest Period of one (1) month’s duration. 
The Administrative Agent shall promptly advise the other Banks of any
notice given pursuant to Section 2.06(a) and of each Bank’s portion of
any converted or continued Borrowing.  If
the Borrower shall not have given notice in accordance with Section 2.06(a)
to continue any Eurodollar Rate Borrowing into a subsequent Interest Period
(and shall not otherwise have given notice in accordance with Section
2.06(a) to convert such Eurodollar Rate Borrowing), such Eurodollar Rate
Borrowing shall, at the end of the Interest Period applicable thereto (unless
repaid pursuant to the terms hereof), automatically be continued for a new
Interest Period as a Base Rate Borrowing.

Section 2.07.  Optional
Termination and Reduction of the Commitments.  The Borrower shall have the right, upon at
least three (3) Business Days’ notice to the Administrative Agent, to terminate
in whole or reduce in part the unused portions of the Total Commitment, provided,
that, (a) each partial reduction shall be in the aggregate amount of at
least $10,000,000 and in an integral multiple of $1,000,000 in excess thereof,
(b) the aggregate amount of the Commitments of the Banks shall not be reduced
to an amount which is less than the aggregate principal amount of the Loans
then outstanding, and (c) no Notice of Borrowing has been delivered and is in
effect.  Such notice shall specify the
date and the amount of the reduction or termination of the Total
Commitment.  Any such reduction or
termination of the Total Commitment shall be made ratably among the Banks in
accordance with their respective Commitments and shall be permanent.  Simultaneously with any termination of the
Total Commitment, the Borrower shall pay to the Administrative Agent for the
accounts of the Banks the accrued and unpaid commitment fee set forth in Section
2.11.

Section
2.08.  Repayment of Loans.

(a)           The
Borrower agrees to repay the Loans in full on the Maturity Date.

(b)           The
Borrower may, upon at least one (1) Business Day’s notice in respect of Base
Rate Loans, and, in respect of Eurodollar Rate Loans, upon at least three (3)
Business Days’

 18
 

 

 

notice, to the Administrative Agent stating the
proposed date (which shall be a Business Day) and aggregate principal amount of
the prepayment, and if such notice is given the Borrower shall, prepay the
outstanding principal amounts of the Loans, together with accrued interest to
the date of such prepayment on the principal amount prepaid and amounts, if
any, required to be paid pursuant to Section 2.13 as a result of such
prepayment; provided, however, that each partial prepayment
pursuant to this Section 2.08(b) shall be in an aggregate principal
amount not less than $10,000,000 and increments of $1,000,000 in excess
thereof, and amounts prepaid may not be reborrowed.

(c)           Each
notice of prepayment shall specify the prepayment date and the aggregate
principal amount of each Loan to be prepaid, shall be irrevocable and shall
commit the Borrower to prepay such Loan by the amount stated therein.  All prepayments under this Section 2.08
shall be accompanied by accrued interest on the principal amount being prepaid
to the date of prepayment.

Section
2.09.  Interest on Loans.

(a)           Interest
on Loans.  The Borrower shall pay interest
on the unpaid principal amount of each Loan made by each Bank from the date of
such Loan until such principal amount shall be paid in full, at the following
rates per annum:

(i)            if such Loan is a Base Rate Loan, a
rate per annum equal at all times during the Interest Period for such Loan to
the Base Rate in effect from time to time during such Interest Period for such
Loan plus the Applicable Margin for Base Rate Loans in effect from time to
time, payable on the last day of such Interest Period; and

(ii)           if such Loan is a Eurodollar Rate
Loan, a rate per annum equal at all times during the Interest Period for such
Loan to the sum of the Eurodollar Rate for such Interest Period plus the
Applicable Margin for Eurodollar Rate Loans in effect from time to time,
payable on the last day of such Interest Period.

(b)           Additional
Interest on Eurodollar Rate Loans. 
The Borrower shall pay to each Bank, so long as such Bank shall be
required under regulations of the Board of Governors of the Federal Reserve
System to maintain reserves with respect to liabilities or assets consisting of
or including Eurocurrency Liabilities, additional interest on the unpaid
principal amount of each Eurodollar Rate Loan of such Bank, from the date of
such Loan until such principal amount is paid in full, at an interest rate per
annum equal at all times to the remainder obtained by subtracting (i) the
Eurodollar Rate for each Interest Period for such Loan from (ii) the rate
obtained by dividing such Eurodollar Rate by a percentage equal to one hundred
percent (100%) minus the Eurodollar Rate Reserve Percentage of such Bank for
such Interest Period, payable on the date on which interest is payable on such
Loan.  Such additional interest shall be
determined by such Bank and notified to the Borrower through the Administrative
Agent.  A certificate as to the amount of
such additional interest submitted to the Borrower and the Administrative Agent
by such Bank shall be conclusive and binding for all purposes, absent error.

(c)           Payment
of Interest.  All accrued but unpaid
interest on all Loans shall be due and payable on the Interest Payment Dates
related thereto.

 19
 

 

 

(d)           Maximum
Interest.  The parties hereto agree
that the sum of (i) interest payable in accordance with this Section 2.09,
plus (ii) other consideration payable hereunder or under the Notes which
constitutes interest under Applicable Usury Law (whether or not denoted as
interest), shall not exceed the maximum amount allowed under Applicable Usury
Law.

Section 2.10.  Interest
Rate Determination.  The
Administrative Agent shall give prompt notice to the Borrower and the Banks of
the applicable interest rate for each Loan determined by the Administrative
Agent for purposes of Section 2.09 and the Applicable Margin, if any,
furnished by the Reference Banks for the purpose of determining the applicable
interest rate under Section 2.09.

Section 2.11.  Commitment
Fee.  The Borrower agrees to pay to
the Administrative Agent, for the pro rata
benefit of the Banks a commitment fee on the daily average unused portion of
the Total Commitment for the period from October 21, 2006 until December 29,
2006 at the rate of 0.10% per annum, payable on December 29, 2006 (or, if
earlier, on the termination or full utilization of the Total Commitment).

Section 2.12.  Payments; Computations; Interest on
Overdue Amounts.

(a)           The
Borrower shall make each payment hereunder and under the Notes to be made by it
not later than 11:00 A.M. (New York City time) on the day when due in U.S.
Dollars to the Administrative Agent at its address referred to in Section
10.02 in same day funds.  The
Administrative Agent will promptly thereafter cause to be distributed like
funds relating to the payment of principal interest or fees ratably (other than
amounts payable pursuant to Section 2.13, 2.14 or 2.17) to
the Banks for the account of their respective Applicable Lending Offices, and
like funds relating to the payment of any other amount payable to any Bank to
such Bank for the account of its Applicable Lending Office, in each case to be
applied in accordance with the terms of this Agreement.

(b)           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 and of
commitment fee shall be made by the Administrative Agent on the basis of a year
of 360 days, and all computations of interest pursuant to Section 2.09(b)
shall be made by a Bank 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 is payable.  Each determination by the Administrative
Agent (or, in the case of Section 2.09(b), by a Bank) of an interest
rate hereunder shall be conclusive and binding for all purposes, absent error.

(c)           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, as the case may be; provided, however,
that if such extension would cause payment of interest on or principal of
Eurodollar Rate Loans to be made in the next following calendar month, such
payment shall be made on the next preceding Business Day.

 20
 

 

 

(d)           Unless
the Administrative Agent shall have received notice from the Borrower prior to
the date on which any payment is due by the Borrower to any Bank 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 Bank on such due date an amount equal to the
amount then due such Bank.  If and to the
extent the Borrower shall not have so made such payment in full to the Agent,
each Bank shall repay to the Administrative Agent forthwith on demand such
amount distributed to such Bank together with interest thereon, for each day
from the date such amount is distributed to such Bank until the date such Bank
repays such amount to the Administrative Agent, at the Federal Funds Rate.

(e)           Whenever
any reference is made to any Bank’s “ratable share” or “ratable portion” (or
any similar reference) of any amount hereunder, such share or portion shall be
calculated to not more than four decimal places, rounding up or down, as
appropriate.

(f)            Notwithstanding
the foregoing, upon the occurrence and during the continuance of any Event of
Default, the Applicable Margin shall automatically be increased by 2% per
annum.

Section 2.13.  Consequential
Losses on Eurodollar Rate Loans.  If
(a) any payment (or purchase pursuant to Section 2.15) of principal of
any Eurodollar Rate Loan is made other than on the last day of an Interest
Period relating to such Loan, as a result of a prepayment pursuant to Section
2.08(b) or Section 2.16 or acceleration of the maturity of the Notes
pursuant to Section 8.01 or by reason of the occurrence of the Debt
Issuance on a day other than the last day of such Interest Period or for any
other reason or as a result of any such purchase; or (b) the Borrower fails to
make a principal or interest payment with respect to any Eurodollar Rate Loan
on the date such payment is due and payable, the Borrower shall, upon demand by
any Bank (with a copy of such demand to the Administrative Agent), pay to the
Administrative Agent for the account of such Bank any amounts required to
compensate such Bank for any additional losses, costs or expenses which it may
reasonably incur as a result of any such payment or purchase, including,
without limitation, any loss (including loss of reasonably anticipated profits,
except in the case of such a purchase pursuant to Section 2.15), cost or
expense incurred by reason of the liquidation or reemployment of deposits or
other funds acquired by such Bank to fund or maintain such Loan.

Section
2.14.  Increased Costs.

(a)           If,
due to the introduction of or any change (including without limitation, but
without duplication, any change by way of imposition or increase of reserve
requirements included, in the case of Eurodollar Rate Loans, in the Eurodollar
Rate Reserve Percentage) in or in the interpretation, application or
applicability of any law, regulation, 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 to any Bank of agreeing to make or
making, funding or maintaining any Eurodollar Rate Loan to the Borrower, then
the Borrower shall from time to time, upon demand by such Bank (with a copy of
such demand to the Administrative Agent), pay to the Administrative Agent for
the account of such Bank additional amounts sufficient to compensate such Bank
for such increased cost.  A certificate
as to the amount of such increased

 21
 

 

 

cost, submitted to the Borrower and the Administrative
Agent by such Bank, shall be prima facie evidence of the amount of such
increased cost.  Promptly after any Bank
becomes aware of any such introduction, change or proposed compliance, such
Bank shall notify the Borrower thereof, provided, that, the
failure to provide such notice shall not affect such Bank’s rights hereunder,
except that such Bank’s right to recover such increased costs from the Borrower
for any period prior to such notice shall be limited to the period of ninety
(90) days immediately prior to the date such notice is given to the Borrower.

(b)           If
any Bank determines that the introduction of or any change in 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 Bank or any corporation controlling such Bank and that the amount of such
capital is increased by or based upon the existence of such Bank’s Loans or
commitment to lend to the Borrower hereunder and other commitments of this
type, then, upon receipt of a demand by such Bank (with a copy of such demand
to the Administrative Agent), the Borrower shall, within ten (10) days of such
demand, notify such Bank and the Administrative Agent that the Borrower desires
to replace such Bank in accordance with Section 2.15.  If the Borrower either fails to notify such
Bank and the Administrative Agent in accordance with the prior sentence or
fails to replace such Bank within the time periods specified in Section 2.15,
the Borrower shall promptly pay to the Administrative Agent for the account of
such Bank, from time to time as specified by such Bank, additional amounts
sufficient to compensate such Bank or such corporation in the light of such
circumstances, to the extent that such Bank reasonably determines such increase
in capital to be allocable to the existence of such Bank’s commitment to lend
hereunder.  A certificate as to such
amounts submitted to the Borrower and the Administrative Agent by such Bank
shall be conclusive and binding for all purposes, absent error.

Section 2.15.  Replacement
of Banks.  In the event that any Bank
makes a demand for payment under Section 2.09(b) or
Section 2.14, the Borrower may within ninety (90) days of such demand,
if no Default or Event of Default then exists, replace such Bank with another
commercial bank, financial institution or other Person in accordance with all
of the provisions of Section 10.06(a) (including execution of an
appropriate Assignment); provided, that, (i) all obligations of
such Bank to lend hereunder shall be terminated and the Note payable to such
Bank and all other obligations owed to such Bank hereunder shall be purchased
in full without recourse at par plus accrued interest at or prior to such
replacement, (ii) such replacement shall be reasonably satisfactory to the
Administrative Agent, (iii) if such replacement bank is not already a Bank
hereunder, the Borrower (and, for the avoidance of doubt, not the replacement
bank) shall pay to the Administrative Agent an assignment fee of $3,500 in
connection with such replacement, (iv) such replacement shall, from and after
such replacement, be deemed for all purposes to be a “Bank” hereunder with a
Commitment in the amount of the respective Commitment of the assigning Bank
immediately prior to such replacement (plus, if such replacement bank is
already a Bank prior to such replacement, the respective Commitment of such
Bank prior to such replacement), as such amount may be changed from time to time
pursuant hereto, and shall have all of the rights, duties and obligations
hereunder of the Bank being replaced, and (v) such other actions shall be taken
by the Borrower, such Bank and such replacement bank as may be appropriate to
effect the replacement of such Bank with such replacement bank on terms such
that such replacement bank has all of the rights, duties and

 22
 

 

 

obligations hereunder as such Bank (including, without
limitation, execution and delivery of new Notes to such replacement bank,
redelivery to the Borrower in due course of the Notes payable to such Bank and
specification of the information contemplated by Schedule I as to such
replacement bank).

Section 2.16.  Illegality.  Notwithstanding any other provision of this
Agreement, if any Bank shall notify the Administrative Agent that the
introduction of or any change in or in the interpretation of any law or
regulation shall make it unlawful, or any central bank or other governmental
authority shall assert that it is unlawful, for
any Bank or its Applicable Lending Office to make any Eurodollar Rate Loan or
to continue to fund or maintain any Eurodollar Rate Loan hereunder, then, on
notice thereof to the Borrower by the Administrative Agent, (a) the obligation
of each of the Banks to make any Eurodollar Rate Loan shall be suspended until
the Administrative Agent shall notify the Borrower and the Banks that the
circumstances causing such suspension no longer exist, and (b) the Borrower
shall forthwith prepay in full all Eurodollar Rate Loans then outstanding of
all Banks which are affected together with all accrued interest thereon and all
amounts payable pursuant to Section 2.13, unless such Bank shall
determine in good faith in its sole opinion that it is lawful to maintain such
Loans made by such Bank to the end of the Interest Period then applicable
thereto.

Section
2.17.  Taxes.

(a)           Any
and all payments by the Borrower or the Guarantor hereunder or under the Notes
or any other Credit Document shall be made, in accordance with Section 2.12,
free and clear of and without deduction for any and all taxes, levies, imposts,
deductions, charges or withholdings with respect thereto, and all liabilities
with respect thereto, excluding in the case of each Bank and the Administrative
Agent (i) taxes imposed directly or indirectly on or measured by its income,
and franchise taxes imposed on it, by any jurisdiction under the laws of which
such Bank or the Administrative Agent (as the case may be) is organized or now
or hereafter does business or any political subdivision thereof, and (ii)
United States of America income taxes (all such non-excluded taxes, levies,
imposts, deductions, charges, withholdings and liabilities being hereinafter
referred to as “Taxes”).  If the
Borrower or the Guarantor shall be required by law to deduct any Taxes from or
in respect of any sum payable by it hereunder or under any Note or other Credit
Document to any Bank or the Administrative Agent, (x) 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
2.17) such Bank or the Administrative Agent (as the case may be) receives
an amount equal to the sum it would have received had no such deductions been
made, (y) the Borrower or the Guarantor, as the case may be, shall make such
deductions and (z) the Borrower or the Guarantor, as the case may be, shall pay
the full amount deducted to the relevant taxation authority or other authority
in accordance with applicable law.

(b)           In
addition, the Borrower or the Guarantor, as the case may be, agrees to pay any
present or future stamp or documentary taxes or any other excise or property
taxes, charges or similar levies which arise from any payment made by the
Borrower or the Guarantor hereunder or under any Note or other Credit Document
executed by it or from the execution, delivery or registration of, or otherwise
with respect to, this Agreement or any Note or other Credit Document
(hereinafter referred to as “Other Taxes”).

 23
 

 

 

(c)           Within
thirty (30) days after the date of the payment of Taxes by or at the direction
of the Borrower or the Guarantor, the Borrower will furnish to the
Administrative Agent, at its address referred to in Section 10.02, the
original or a certified copy of a receipt evidencing payment thereof.  Upon the request of the Borrower or the
Guarantor and upon receipt of the foregoing evidence of payment, the Bank for
which the Borrower or the Guarantor has paid such Taxes shall promptly file for
such credit or benefit as may be available to it in respect of the payment or
withholding and shall promptly remit to the Borrower the amount of the net
credit or benefit received by such Bank upon such Bank’s actual receipt of such
net credit or benefit.

(d)           Without
prejudice to the survival of any other agreement of the Borrower or the
Guarantor hereunder, the agreements and obligations of the Borrower and the
Guarantor contained in this Section 2.17 shall survive the payment in
full of principal and interest hereunder and under the Notes and other Credit
Documents.

(e)           Each
Bank that is not incorporated under the laws of the United States of America or
a state thereof agrees that it will deliver to the Borrower and the
Administrative Agent on the date of this Agreement or upon the effectiveness of
any Assignment (i) two (2) duly completed copies of United States of America
Internal Revenue Service form W-8BEN or W-8ECI, as appropriate, or any
successor applicable form, as the case may be, certifying that such Bank is
entitled to benefits under an income tax treaty to which the United States is a
party that reduces the rate of withholding tax on payments under this Agreement
and the other Credit Documents or certifying that the income receivable
pursuant to this Agreement and the other Credit Documents is effectively
connected with the conduct of a trade or business in the United States, or (ii)
a statement substantially in the form of Exhibit F hereto together with
Internal Revenue Service form W-8BEN, upon which the Borrower is entitled
to rely, from any such Bank that has not at the time it becomes a party hereto
been named in any notice issued by the Secretary of the Treasury (or such
Secretary’s authorized delegate) pursuant to Sections 881(c)(2)(B) or
871(h)(5) of the Code, or any successor form or statement prescribed by the
Internal Revenue Service in order to establish that such Bank is entitled to
treat the interest payments under this Agreement and the other Credit Documents
as portfolio interest that is exempt from withholding tax under the Code.

Section 2.18.  Payments
Pro Rata.  Except as provided in Sections
2.13, 2.14, 2.16 or 2.17, each of the Banks agrees
that if it should receive any payment (whether by voluntary payment, by
realization upon security, by the exercise of the right of setoff or banker’s
lien, by counterclaim or cross action, by the enforcement of any right under
this Agreement or the Notes or other Credit Documents, or otherwise) in respect
of any obligation of the Borrower or Guarantor hereunder or under the Notes or
other Credit Documents of a sum which with respect to the related sum or sums
received by other Banks is in a greater proportion than the total amount of
principal, interest, fees or any other obligation incurred hereunder, as the
case may be, then owed and due to such Bank bears to the total amount of
principal, interest, fees or any such other obligation then owed and due to all
of the Banks immediately prior to such receipt, then such Bank receiving such
excess payment shall purchase for cash without recourse from the other Banks an
interest in the obligations of the Borrower to such Banks in such amount as
shall result in a proportional participation by all of the Banks in the
aggregate unpaid

 24
 

 

 

amount of principal, interest, fees or any such other
obligation, as the case may be, owed to all of the Banks, provided, that
if all or any portion of such excess payment is thereafter recovered from such
purchasing Bank, such purchase from each other Bank shall be rescinded and each
such other Bank shall repay to the purchasing Bank the purchase price to the
extent of such other Bank’s ratable share (according to the proportion of (i)
the amount of the participation purchased from such other Bank as a result of
such excess payment to (ii) the total amount of such excess payment) of such
recovery together with an amount equal to such other Bank’s ratable share
(according to the proportion of (a) the amount of such other Bank’s required
repayment to (b) the total amount so recovered from the purchasing Bank) of any
interest or other amount paid or payable by the purchasing Bank in respect of
the total amount so recovered.  The
Borrower agrees that any Bank so purchasing a participation from another Bank
pursuant to this Section 2.18 may, to the fullest extent permitted by
law, exercise all its rights of payment (including the right of set-off) with
respect to such participation as fully as if such Bank were the direct creditor
of the Borrower in the amount of such participation.

ARTICLE III

CONDITIONS

Section 3.01.  Conditions
Precedent to Effectiveness.  This
Agreement shall become effective upon the satisfaction of all of the following
conditions precedent:

(a)           Documentation.  The Administrative Agent shall have received
the following duly executed by all the parties thereto, in form and substance
satisfactory to the Administrative Agent and the Banks, and in sufficient
copies for each Bank:

(i)            this Agreement duly executed by the
Borrower, the Guarantor, each Bank and the Administrative Agent;

(ii)           a certificate of the Secretary or an
Assistant Secretary of the Borrower certifying (a) the Borrower’s certificate
of incorporation and by-laws, (b) the names and true signatures of the officers
of the Borrower authorized to sign this Agreement and the Notes and (c) that a
true, correct and complete copy of the resolutions of the Borrower’s Board
authorizing the transactions contemplated hereby is attached thereto and that
such resolutions are in full force and effect;

(iii)          a certificate of the Secretary or an
Assistant Secretary of the Guarantor certifying (a) the Guarantor’s certificate
of incorporation and by-laws, (b) the names and true signatures of the officers
of the Guarantor authorized to sign this Agreement and (c) that a true, correct
and complete copy of the resolutions of the Guarantor’s Board authorizing the
making and performance of this Agreement by the Guarantor is attached hereto
and that such resolutions are in full force and effect;

(iv)          a favorable opinion of Jackson Walker L.L.P.,
legal counsel for each of the Borrower and the Guarantor, substantially in the
form of Exhibit D hereto;

 25

 

 

(v)           a favorable opinion of Hughes &
Luce, L.L.P., special counsel for the Administrative Agent, substantially in
the form of Exhibit E hereto; and

(vi)          certificates or telex confirmation as
of a date reasonably close to the date hereof from the Secretary of State of
the state of incorporation of each of the Borrower and the Guarantor as to the
existence and good standing of the Borrower and the Guarantor, as applicable.

(b)           No
Material Adverse Change.  No event or
events which have or would reasonably be expected to have a Material Adverse
Effect shall have occurred since June 28, 2006.

(c)           No
Default or Event of Default.  No
Default or Event of Default shall have occurred and be continuing.

(d)           Representations
and Warranties.  The representations
and warranties contained in Article V hereof shall be true and correct
in all material respects on and as of the Effective Date.

(e)           No
Material Litigation.  No legal or
regulatory action or proceeding has commenced and is continuing against the
Borrower or any of its Subsidiaries since the date of this Agreement which has,
or would reasonably be expected to have, a Material Adverse Effect.

Section 3.02.  Conditions
Precedent to Each Borrowing.  The
obligation of each Bank to make a Loan on the occasion of any Borrowing shall
be subject to the further conditions precedent that on the date of such
Borrowing (a) the Administrative Agent shall have received a Notice of
Borrowing in accordance with Section 2.02 and (b) the following
statements shall be true (and each of the giving of the applicable Notice of
Borrowing and the acceptance by the Borrower of the proceeds of such Borrowing
shall constitute a representation and warranty by the Borrower that on the date
of such Borrowing such statements are true):

(i)            the
representations and warranties contained in Article V, other than Section
5.04(b) and Section 5.05, are true and correct in all material
respects on and as of the date of such Borrowing, before and after giving
effect to such Borrowing and to the application of the proceeds therefrom, as
though made on and as of such date,

(ii)           no
event has occurred and is continuing, or would result from such Borrowing or
from the application of the proceeds therefrom, which constitutes a Default or
an Event of Default, and

(iii)          after
giving effect to such Borrowing and all other Borrowings which have been
requested on or prior to such date but which have not been made prior to such
date, the aggregate principal amount of all Borrowings will not exceed the
Total Commitment.

Section 3.03.  Administrative
Agent.  The Administrative Agent
shall be entitled to assume that the conditions set forth in Sections 3.01(b),
3.01(c), 3.01(d), 3.01(e), 3.02(b)(i) and 3.02(b)(ii)
have been satisfied unless the Administrative Agent has received, at its
address specified herein, actual written notice to the contrary from the
Borrower, the Guarantor or a Bank.

 26
 

 

 

ARTICLE IV

GUARANTY

Section 4.01.  Guaranty.  The Guarantor hereby unconditionally
guarantees the punctual payment of the Guaranteed Obligations when due, whether
at stated maturity, by acceleration or otherwise, and agrees to pay any and all
reasonable expenses (including counsel fees and expenses) incurred by the
Administrative Agent or any Bank in enforcing any rights hereunder.  Without limiting the generality of the
foregoing, the Guarantor’s liability shall extend to all amounts which
constitute part of the Guaranteed Obligations and would be owed by the Borrower
under this Agreement or any of the Notes but for the fact that they are unenforceable
or not allowable due to the existence of a bankruptcy, reorganization or
similar proceeding involving the Borrower. 
The guaranty set forth in this Article IV is a guaranty of
payment and not of collection.

Section 4.02.  Payment.  At the time the Guarantor pays any sum which
may become due to the Administrative Agent for the benefit of a Bank under the
terms of this Article IV, written notice of such payment shall be
delivered to the Administrative Agent by the Guarantor, and in the absence of
such notice, any sum received by the Administrative Agent on behalf of a Bank
on account of any of the Guaranteed Obligations shall be conclusively deemed
paid by the Borrower.  All sums paid to
the Administrative Agent, on behalf of a Bank, by the Guarantor may be applied
by the Administrative Agent, on behalf of a Bank, at its discretion, upon any
of the Guaranteed Obligations.

Section 4.03.  Waiver.  The Guarantor hereby waives all notices in
connection herewith or in connection with the Guaranteed Obligations,
including, without limitation, notice of intent to accelerate and notice of
acceleration, and waives diligence, presentment, demand, protest, and suit on
the part of the Administrative Agent or any Bank in the collection of any of
the Guaranteed Obligations, and agrees that neither the Administrative Agent
nor any Bank shall be required to first endeavor to collect any of the
Guaranteed Obligations from the Borrower, or any other party liable for payment
of the Guaranteed Obligations (hereinafter referred to as an “Obligated
Party”), before requiring Guarantor to pay the full amount of the
Guaranteed Obligations.  Without
impairing the rights of the Administrative Agent or any Bank against the
Guarantor, the Borrower or any other Obligated Party, suit may be brought and
maintained against the Guarantor at the election of the Administrative Agent or
any Bank with or without joinder of the Borrower, or any other Obligated Party,
any right to any such joinder being hereby waived by the Guarantor.

Section 4.04.  Acknowledgments
and Representations.  The Guarantor
acknowledges and represents to the Administrative Agent and each Bank that it
is receiving direct and indirect financial and other benefits as a result of
this Article IV; represents to the Administrative Agent and each Bank
that after giving effect to this Article IV and the contingent
obligations evidenced hereby it is, and will be, Solvent; acknowledges that it
will derive substantial direct and indirect benefit from the transactions
contemplated by this Agreement; acknowledges that its liability hereunder shall
be cumulative and in addition to any other liability or obligation to the
Administrative Agent and each Bank, whether the same is incurred through the
execution of a note, a similar guaranty, through endorsement, or otherwise;
acknowledges that neither the

 27
 

 

 

Administrative Agent, any Bank nor any officer,
employee, agent, attorney or other representative of any of them has made any
representation, warranty or statement to the Guarantor to induce it to execute
this Agreement; and acknowledges that it has made its own credit analysis and
decision to enter into this Agreement and undertake the guaranty set forth in
this Article IV.

Section 4.05.  Subordination.  Notwithstanding anything to the contrary
contained herein, any right, claim or action which the Guarantor may have
against the Borrower or any other Obligated Party arising out of or in
connection with the guaranty set forth in this Article IV or any other
document evidencing or securing the Guaranteed Obligations, including, without
limitation, any right or claim of subrogation, contribution, reimbursement,
exoneration or indemnity, shall be subordinated to the prior payment in full of
any amounts then due under this Agreement or the Notes.  If any amount shall be paid to the Guarantor
on account of any such subrogation, reimbursement, exoneration or indemnity
notwithstanding the foregoing subordination, such amount shall be held in trust
for the benefit of the Banks and shall forthwith be paid to the Administrative
Agent to be credited and applied upon the Guaranteed Obligations then due.

Section 4.06.  Guaranty
Absolute.  The Guarantor hereby
agrees that its obligations under this Agreement shall be absolute and
unconditional, irrespective of (a) the validity or enforceability of the
Guaranteed Obligations or of the Notes, or any other Credit Document evidencing
all or any part of the Guaranteed Obligations, (b) the absence of any attempt
to collect the Guaranteed Obligations from the Borrower or any other Obligated
Party or other action to enforce the same, (c) the waiver or consent by the
Administrative Agent and/or any Bank with respect to any provision of any
instrument evidencing the Guaranteed Obligations, or any part thereof, or any
other agreement now or hereafter executed by the Borrower and delivered to the
Administrative Agent and/or any Bank, (d) the surrender, release, exchange, or
alteration by the Administrative Agent and/or any Bank of any security or
collateral for the Guaranteed Obligations, or (e) any other circumstance which
might otherwise constitute a legal or equitable discharge or defense of a
guarantor.

Section 4.07.  No
Waiver; Remedies.  No failure on the
part of the Administrative Agent or any Bank to exercise, and no delay in
exercising, any right hereunder shall operate as a waiver thereof; nor shall
any single or partial exercise of any right hereunder preclude any other or
further exercise thereof or the exercise of any other right.  The remedies herein provided are cumulative
and not exclusive of any remedies provided by law.

Section 4.08.  Continuing
Guaranty.  The guaranty set forth in
this Article IV is a continuing guaranty and shall (a) remain in full
force and effect until the later of (i) the payment in full of the Guaranteed
Obligations and all other amounts payable under this guaranty and (ii) the
expiration or termination of each Commitment of each Bank to the Borrower, (b)
be binding upon the Guarantor, its successors and assigns, (c) inure to the benefit
of, and be enforceable by, the Administrative Agent and each of the Banks and
their respective successors, transferees and assigns, and (d) not be terminated
by the Guarantor or the Borrower.

 28
 

 

 

Section 4.09.  Limitation.  Notwithstanding any other provision of this Article
IV, the Guarantor’s liability hereunder shall be limited to the lesser of
the following amounts minus, in either case, $100.00:

(a)           the
lowest amount which would render the guaranty pursuant to this Article IV
a fraudulent transfer under Section 548 of the Bankruptcy Code (11 U.S.C. § 101
et seq.); or

(b)           if
the guaranty pursuant to this Article IV is subject to the UFTA or the
UFCA or any similar or analogous statute or rule of law, then the lowest amount
which would render the guaranty pursuant to this Article IV a fraudulent
transfer or fraudulent conveyance under the UFTA, the UFCA, or any such similar
or analogous statute or rule of law.

The amount of the
limitation imposed upon the Guarantor’s liability under the terms of the preceding
sentence shall be subject to redetermination as of each date a “transfer” is
deemed to have been made on account of the Guaranty pursuant to this Article
IV under applicable law.

Section 4.10.  Effect
of Bankruptcy.  In the event that,
pursuant to any insolvency, bankruptcy, reorganization, receivership or other
debtor relief law, or any judgment, order or decision thereunder, any Bank must
rescind or restore any payment, or any part thereof, received by such Bank in
satisfaction of the Guaranteed Obligations, any prior release or discharge from
the terms of the guaranty set forth in this Article IV given to the
Guarantor by the Banks shall be without effect, and the guaranty set forth in
this Article IV shall remain in full force and effect.  It is the intention of the Guarantor that its
obligations hereunder shall not be discharged except by its performance of such
obligations and then only to the extent of such performance.

ARTICLE V

REPRESENTATIONS AND WARRANTIES

Each of the Borrower and the Guarantor represents and
warrants as follows:

Section 5.01.  Corporate
Existence.  Each of the Borrower and
the Guarantor is a corporation duly organized, validly existing and in good
standing under the laws of its respective state of incorporation.  Each of the Borrower and the Guarantor has
all corporate powers and all governmental licenses, authorizations,
certificates, consents and approvals required to carry on its business as now
conducted except where the failure to comply does not or would not reasonably
be expected to have a Material Adverse Effect. 
Each Significant Subsidiary is a Person duly organized, validly existing
and in good standing under the laws of its jurisdiction of formation.  Each Significant Subsidiary has all corporate
powers and all governmental licenses, authorizations, certificates, consents
and approvals required to carry on its business as now conducted except where
the failure to comply does not and would not reasonably be expected to have a
Material Adverse Effect.

Section 5.02.  Corporate
Power.  The execution, delivery and
performance by the Borrower and the Guarantor of the Credit Documents to which
each is a party and the consummation of the transactions contemplated by such
Credit Documents are within the Borrower’s and the Guarantor’s corporate
powers, respectively, have been duly authorized by all necessary corporate
action, do not contravene (a) the Borrower’s or the Guarantor’s Certificate of

 29
 

 

 

Incorporation or Bylaws or (b) any law or any
contractual restriction binding on or affecting the Borrower or the Guarantor
and will not result in or require the creation or imposition of any Lien
prohibited by this Agreement.  At the
time of each Borrowing, such Borrowing and the use of the proceeds of such
Borrowing will be within the Borrower’s corporate powers, will have been duly
authorized by all necessary corporate action, will not contravene (i) the
Borrower’s Certificate of Incorporation or Bylaws or (ii) any law or any
contractual restriction binding on or affecting the Borrower and will not
result in or require the creation or imposition of any Lien prohibited by this
Agreement.

Section 5.03.  Enforceable
Obligations.  This Agreement has been
duly executed and delivered by the Borrower and the Guarantor.  This Agreement is the legal, valid and
binding obligation of the Borrower and the Guarantor enforceable against the
Borrower and the Guarantor, respectively, in accordance with its terms, except
as such enforceability may be limited by any applicable bankruptcy, insolvency,
reorganization, moratorium or other laws affecting creditors’ rights
generally.  The Notes are the legal,
valid and binding obligations of the Borrower enforceable against the Borrower
in accordance with their respective terms, except as such enforceability may be
limited by any applicable bankruptcy, insolvency, reorganization, moratorium or
similar law affecting creditors’ rights generally.  The making and
performance by the Borrower and the Guarantor of this Agreement and the other
Credit Documents do not require any license, consent or approval of,
registration with, or any other action by, any governmental authority.

Section 5.04.  Financial
Statements.  (a)  The Consolidated balance sheet of the
Borrower and its Subsidiaries as of June 28, 2006 and the related
Consolidated statements of income and cash flows of the Borrower and its
Subsidiaries for the fiscal year then ended, copies of which have been
furnished to each Bank, as included in an SEC Filing which has been furnished
to each Bank, fairly present the Consolidated financial condition of the
Borrower and its Subsidiaries as of such date and the Consolidated results of
operations of the Borrower and its Subsidiaries ended on such date, in
accordance with GAAP, except as disclosed therein or on Schedule V to
this Agreement.

(b)  Since June
28, 2006 and except as disclosed in an SEC Filing which has been delivered to
each Bank or on a Schedule to this Agreement, no event which has or would
reasonably be expected to have a Material Adverse Effect has occurred.

Section 5.05.  Litigation.  Except as otherwise disclosed in writing by
the Borrower or the Guarantor to the Banks and the Administrative Agent and
approved by the Majority Banks, there is no pending or, to the knowledge of the
Borrower or the Guarantor, threatened action or proceeding affecting the
Borrower or any of its Significant Subsidiaries before any court, governmental
agency or arbitrator, which has, or would reasonably be expected to have, a
Material Adverse Effect.

Section 5.06.  Margin
Stock; Use of Proceeds.  Neither the
Borrower nor any of its Subsidiaries is engaged in the business of extending
credit for the purpose of purchasing or carrying margin stock (within the
meaning of Regulation T, U or X issued by the Board of Governors of the Federal
Reserve System and except in connection with employee plans disclosed to the
Administrative Agent), and no proceeds of any Loan will be used for the

 30
 

 

 

purpose, whether immediate, incidental or ultimate, of
buying or carrying any such margin stock under such circumstances as to involve
the Borrower, the Guarantor, any of their Subsidiaries or any Bank in a
violation of Regulation U.  None of the
Borrower, the Guarantor or any of their Subsidiaries will use the proceeds of
any Loan for the purpose of acquiring or attempting to acquire control of any
Person which is obligated to make SEC Filings unless such acquisition or
attempted acquisition (a) is pursuant to an agreement with such Person, or (b)
is not resisted by such Person.

Section 5.07.  Investment
Company Act.  Neither the Borrower
nor any of its Subsidiaries is an “investment company” or a company “controlled”
by an “investment company” within the meaning of the Investment Company Act of
1940, as amended.

Section 5.08.  ERISA.  The Borrower and its Subsidiaries are in
compliance with the applicable provisions of ERISA, except to the extent that
non-compliance thereunder does not have and would not reasonably be expected to
have, a Material Adverse Effect.  Neither
the Borrower nor any of its Subsidiaries has incurred any Insufficiency or any
material liability to the PBGC in connection with any Plan established or
maintained by the Borrower or such Subsidiaries which would have, or would
reasonably be expected to have, a Material Adverse Effect.

Section 5.09.  Taxes.  As of the date of this Agreement, the United
States of America federal income tax returns of the Borrower and its
Subsidiaries have been examined through the fiscal year ended
June 30, 2004.  The Borrower
and its Significant Subsidiaries have filed all United States of America
Federal income tax returns and all other material domestic tax returns which
are required to be filed by them and have paid, or provided for the payment
before the same become delinquent of, all taxes due pursuant to such returns or
pursuant to any assessment received by the Borrower or any such Significant
Subsidiary, other than those taxes (a) contested in good faith by appropriate
proceedings or (b) the nonpayment of which does not have, and would not reasonably
be expected to have a Material Adverse Effect. 
The charges, accruals and reserves on the books of the Borrower and its
Subsidiaries in respect of taxes are adequate in the aggregate.

Section 5.10.  Environmental
Condition.  To the best of Borrower’s
knowledge, the Borrower and its Subsidiaries are in compliance with all
Environmental Protection Statutes except to the extent that failure to comply
does not have, and would not reasonably be expected to have, a Material Adverse
Effect.

Section 5.11.  Ownership
of Guarantor.  On the date hereof the
Borrower owns, directly or indirectly, 100% of the issued and outstanding
voting stock of the Guarantor.

Section 5.12.  Solvency.  Each of the Borrower and the Guarantor is, and after giving effect to
each Borrowing and to the application of the proceeds therefrom will be,
Solvent.

 31
 

 

 

ARTICLE VI

AFFIRMATIVE COVENANTS

So long as any Note shall remain unpaid or any Bank
shall have any Commitment hereunder, unless the Majority Banks shall otherwise
consent in writing:

Section 6.01.  Compliance
with Laws, Etc.  Each of the Borrower
and the Guarantor will comply, and Borrower will cause each Significant
Subsidiary to comply, in all material respects with all applicable laws
(including without limitation ERISA and applicable Environmental Protection
Statutes), rules, regulations and orders, subject to the exceptions provided
elsewhere in this Agreement in provisions relating to laws, rules, regulations
and orders of the nature referenced therein and except where the failure to
comply (a) is contested in good faith by appropriate proceedings or (b) does
not have, and would not reasonably be expected to have, a Material Adverse
Effect.

Section 6.02.  Reporting Requirements.  The
Borrower and/or the Guarantor will furnish to each of the Banks:

(a)           As
soon as possible and in any event within five (5) days after a Financial
Officer of the Borrower or Guarantor obtains knowledge of the occurrence of a
Default or Event of Default which is continuing on the date of such statement,
a statement of a Financial Officer, setting forth the details of such Default
or Event of Default and the actions, if any, which the Borrower has taken and
proposes to take with respect thereto.

(b)           Promptly
after they are available, and in any event within sixty (60) days after the end
of each of the first three (3) quarters of each fiscal year of the Borrower,
Consolidated financial statements of the Borrower and its Consolidated
Subsidiaries for such quarter showing on a Consolidated basis the financial
position, results of operations and cash flows as of the end of and for the
thirteen (13) week period of such quarter and for the period from the beginning
of the fiscal year to the end of such quarter, in each case setting forth the
comparable information for the comparable period in the preceding fiscal year,
and accompanied by a certificate of a Financial Officer to the effect that such
financial statements present fairly in all material respects the Consolidated
financial position, results of operations and cash flows of the Borrower and
its Consolidated Subsidiaries as of the end of and for the respective period in
conformity with GAAP, subject to year-end audit adjustments and the absence of
certain notes.  For any such fiscal
quarter the foregoing requirements may be satisfied by the delivery of the
Borrower’s SEC Filing on Form l0-Q for such quarter.

(c)           Promptly
after they are available, and in any event within ninety (90) days after the
end of each fiscal year of the Borrower, Consolidated financial statements of
the Borrower and its Consolidated Subsidiaries for the fifty-two/fifty-three
week period of such fiscal year showing the financial position, results of
operations and cash flows as of the end of and for such fiscal year, in each
case setting forth the comparable information for the preceding fiscal year,
and accompanied by the report of KPMG Peat Marwick or other independent
certified public accountants of recognized national standing, to the effect
that based on an audit using generally accepted auditing standards the
financial statements present fairly, in all material respects, the

 32
 

 

 

Consolidated financial position, results of operations
and cash flows of the Borrower and its Consolidated Subsidiaries for the
respective periods in conformity with GAAP. 
For any fiscal year this requirement may be satisfied by the delivery of
the Borrower’s SEC Filing on Form 10-K for the year.

(d)           Concurrently
with the delivery of the financial statements referred to in Sections
6.02(b) and (c), the Borrower will also furnish to each Bank (i) a
certificate of a Financial Officer to the effect that no Default or Event of
Default has occurred with respect to the covenants contained in Section 7.01
(together with appropriate supporting schedule setting forth the calculations
relating to such covenants) or, if such Financial Officer has knowledge of a
Default or Event of Default with respect to Section 7.01, specifying the
nature thereof, and (ii) a complete and correct list of the Significant
Subsidiaries as of the date thereof, showing, as to each Significant
Subsidiary, the correct name thereof, the jurisdiction of its organization and
such Significant Subsidiaries’ proportionate share of the Consolidated assets
of the Borrower.

(e)           Promptly
after they are available, the Borrower will furnish to the Administrative Agent
and each Bank copies of (i) each SEC Filing, (ii) any reports provided by the
Borrower to its stockholders, and (iii) any press releases or other statements
made available by the Borrower or any of its Subsidiaries to the public
generally concerning material developments in the business or affairs of the
Borrower or any of its Subsidiaries.  Any
matter disclosed in a SEC Filing or other report or press release delivered to
Banks shall be deemed disclosed in writing to Banks for all purposes of this
Agreement, except with respect to the reporting requirement set forth in Section
6.02(a).

(f)            Promptly
upon the recurrence of any change in a Rating, notice thereof.

(g)           Such
other information respecting the financial condition of the Borrower and its
Subsidiaries as any Bank through the Administrative Agent may from time to time
reasonably request in writing.

Section 6.03.  Use
of Proceeds.  The Borrower will use
the proceeds of the Loans only for its general corporate purposes and to
finance the repurchase by the Borrower of certain of its shares of stock, and
not in contravention of Section 5.06.

Section 6.04.  Maintenance
of Insurance.  The Borrower will maintain,
or cause to be maintained, insurance coverages on or in respect of its and its
Subsidiaries’ business or properties with such insurers, in such amounts and
covering such risks as is consistent with Borrower’s normal practices in effect
from time to time.  Such insurance
arrangements may include self-insurance or insurance through an Affiliate.

Section 6.05.  Preservation
of Corporate Existence, Etc.  Each of
the Borrower and the Guarantor will preserve and maintain, and cause each of
its Subsidiaries to preserve and maintain, its Corporate Franchises in the
jurisdiction of its incorporation, and qualify and remain qualified, and cause
each Subsidiary to qualify and remain qualified, as a foreign corporation in
each jurisdiction in which qualification is necessary or desirable in view of
its business and operations or the ownership of its properties unless the failure
to so qualify as a foreign

 33
 

 

 

corporation does not have, or would not reasonably be
expected to have, a Material Adverse Effect; provided, however,
that nothing herein contained shall prevent any transaction permitted by Section
7.03.

Section 6.06.  Payment
of Taxes, Etc.  Each of the Borrower
and the Guarantor will pay and discharge, and cause each of its Subsidiaries to
pay and discharge, before the same shall become delinquent, (a) all taxes,
assessments and governmental charges or levies imposed upon it or upon its
income or profits of property that are material in amount, prior to the date on
which penalties attach thereto and (b) all lawful claims that are material in
amount which, if unpaid, might by law become a Lien upon its property unless
the failure to timely pay any of the foregoing does not have and would not
reasonably be expected to have a Material Adverse Effect; provided, however,
that neither the Borrower, the Guarantor, nor any such Subsidiary shall be
required to pay or discharge any such tax, assessment, charge, levy, or claim
which is being contested in good faith and by appropriate proceedings.

Section 6.07.  Visitation
Rights.  The Borrower shall permit
the representatives of each Bank, at the expense of such Bank and upon
reasonable prior notice to the Borrower, to visit the principal executive
office of the Borrower, and to discuss the affairs, finances and accounts of the
Borrower and its Subsidiaries at the Borrower’s offices with Financial
Officers.

Section 6.08.  Compliance
with ERISA and the Code.  The
Borrower and its Subsidiaries will comply, and will cause each other member of
any Controlled Group to comply, with all minimum funding requirements, and all
other material requirements, of ERISA and the Code, if applicable, to any Plan
it or they sponsor or maintain, so as not to (a) give rise to any liability
thereunder which has, or would reasonably be expected to have, a Material
Adverse Effect or (b) cause any Termination Event to occur which has, or would
reasonably be expected to have, a Material Adverse Effect.

ARTICLE VII

NEGATIVE COVENANTS

So long as any Loan shall remain unpaid or any Bank
shall have any Commitment to the Borrower hereunder, without the written
consent of the Majority Banks:

Section 7.01.  Financial
Covenants.  The Borrower will not:

(a)           as
of the last day of each fiscal quarter for the immediately preceding twelve
(12) month period, permit the ratio of (i) the sum of (A) EBIT of the Borrower,
on a Consolidated basis, plus (B) Rent Expense of the Borrower, on a
Consolidated basis, to (ii) the sum of (A) Interest Expense of the Borrower, on
a Consolidated basis, plus (B) Rent Expense of the Borrower, on a Consolidated
basis, to be less than 1.5 to 1.0, or

(b)           as
of the last day of each fiscal quarter, permit the ratio (the “Debt to Cash
Flow Ratio”) of (i) the sum of (x) Debt of the Borrower, on a Consolidated
basis, plus (y) the product of six multiplied by Rent Expense of the
Borrower, on a Consolidated basis, for the immediately preceding twelve-month
period, to (ii) the sum of (a) EBITDA of the Borrower, on a Consolidated basis,
for the immediately preceding twelve-month period, plus (b) Rent Expense

 34
 

 

 

of the Borrower, on a Consolidated basis, for the
immediately preceding twelve-month period to exceed 3.5 to 1.0.

Section 7.02.  Negative
Pledge.  Neither the Borrower nor the
Guarantor will create, assume, incur or suffer to exist, or permit any of its
respective Subsidiaries to create, assume, incur or suffer to exist, any Lien
on or in respect of any of its or their assets or property used, created or
consumed in the operation of its or their business, whether, real, personal, or
mixed, whether tangible or intangible, whether now owned or hereafter acquired,
including, without limitation, the capital stock of any Subsidiary of the
Borrower, but excluding any margin stock (within the meaning of Regulation U
issued by the Board of Governors of the Federal Reserve System), or assign or
otherwise convey, or permit any such Subsidiary to assign or otherwise convey,
any right to receive income, in each case to secure or provide for the payment
of any Debt of any Person, except Permitted Liens.

Section 7.03.  Merger
and Sale of Assets.  Neither the
Borrower, the Guarantor nor any of their respective Subsidiaries will:

(a)           merge
or consolidate with or into any other Person unless (i) (A) either the Borrower
or the Guarantor is the surviving entity, (B) such merger or consolidation is
between Subsidiaries, or (C) such merger or consolidation is between a
Subsidiary and another Person, and (ii) no Default or Event of Default shall
have occurred and be continuing at the time of, or results from, such merger or
consolidation, or

(b)           sell,
lease or otherwise transfer all or substantially all of the Consolidated assets
of the Borrower in any transaction or series of related transactions outside of
the ordinary course of business (including, without limitation, the merger or
consolidation of a Subsidiary with a Person which will not thereafter be a
Subsidiary), unless (i) such sales, leases or transfers are between the
Borrower, the Guarantor or any of their Subsidiaries, or (ii) the proceeds of
such sales, leases and transfers are (a) applied to the outstanding principal
balance and interest of the Notes with simultaneous pro tanto Commitment
reductions, (b) used in Borrower’s business, or (c) utilized to fund stock
repurchases by Borrower from time to time authorized by Borrower’s Board; provided,
however, that, notwithstanding the foregoing, no such sale, lease or
transfer shall be permitted if a Default or Event of Default shall have
occurred and be continuing at the time of, or result from, any such sale, lease
or transfer.

Section 7.04.  Agreements
to Restrict Dividends and Certain Transfers.  Neither the Borrower nor the Guarantor will
enter into or suffer to exist, or permit any Significant Subsidiary to enter
into or suffer to exist, any consensual encumbrance or restriction on the
ability of any Significant Subsidiary (a) to pay, directly or indirectly,
dividends or make any other distributions in respect of its capital stock or
pay any Debt or other obligation owed to the Borrower or to any Significant Subsidiary
or (b) to make loans or advances to the Borrower or any Significant Subsidiary,
except those encumbrances and restrictions existing on the date hereof and
described in Schedule IV and those now or hereafter existing that are
not more restrictive in any respect than such encumbrances and restrictions
described in Schedule IV.

Section 7.05.  Transactions
with Affiliates.  Except as otherwise
permitted in Section 7.03, neither the Borrower nor the Guarantor will
make any material sale to, make any material

 35
 

 

 

purchase from, extend material credit to, make
material payment for services rendered by, or enter into any other material
transaction with, or permit any of their respective Subsidiaries to make, any
material sale to, make any material purchase from, extend material credit to,
make material payment for services rendered by, or enter into any other
material transaction with, any Affiliate of the Borrower or the Guarantor or of
such Subsidiary unless such sales, purchases, extensions of credit, rendition
of services and other transactions are (at the time such sale, purchase,
extension of credit, rendition of services or other transaction is entered
into) (a) in the ordinary course of business, or (b) on terms and conditions
believed by the Borrower to be fair in all material respects to the Borrower or
the Guarantor or such Subsidiary, as the case may be.

Section 7.06.  Change
of Business.  The Borrower, the
Guarantor and their Subsidiaries, on an aggregate basis, will not materially
change the general nature of their primary business.

Section 7.07.  Limitation
on Loans, Advances and Investments. 
Neither the Borrower nor the Guarantor will, or will permit any of their
respective Subsidiaries to, make or permit to exist, any loans, advances or
capital contributions to, or make any investment in, or purchase or commit to
purchase any stock or other securities or evidences of indebtedness of or
interests in any Person which is not, or which will not become in connection
with such transaction, a Subsidiary (“Investments”), except the
following:

(a)           Liquid
Investments;

(b)           trade
and customer accounts receivable which are for goods furnished or services
rendered in the ordinary course of business and are payable in accordance with
customary trade terms;

(c)           Investments
in respect of joint ventures or similar arrangements relating to the ownership
or operation of food service businesses in which the Borrower and its
Subsidiaries in the aggregate are the beneficial owners of not less than 50% of
the outstanding equity interests;

(d)           Investments
not otherwise permitted by this Section 7.07 in any Person; provided,
that, the aggregate amount of such Investments at any time shall not
exceed twenty percent (20%) of the Consolidated assets of the Borrower as set
forth on the most recent financial statements of the Borrower and its
Consolidated Subsidiaries delivered to the Banks pursuant to Sections 5.04
or 6.02; and

(e)           Investments
existing on the date hereof and described on Schedule VI.

Section 7.08.  Maintenance
of Books and Records.  The Borrower
and its Significant Subsidiaries will maintain its books of record and account
in conformity with GAAP.

Section 7.09.  Debt.  The Borrower and the Guarantor will not, and
will not permit any of their respective Subsidiaries to, directly or
indirectly, create, incur or suffer to exist any direct, indirect, fixed or
contingent liability for any Debt, other than (a) the obligations pursuant to
the Credit Documents, (b) the Debt described on Schedule VII, (c)
additional Debt of the Borrower which may be guaranteed by the Guarantor (but
not guaranteed by any of the Borrower’s or the Guarantor’s Subsidiaries, other
than the Guarantor in the case of Debt of the Borrower), (d) intercompany Debt
and (e) additional Debt of the Guarantor and the Borrower’s and the

 36
 

 

 

Guarantor’s Subsidiaries, provided, however,
the aggregate of all Debt of the Guarantor and all such Subsidiaries under this
clause (e) (exclusive of Debt permitted under clause (c) above),
whether secured or unsecured, must not exceed $30,000,000 in the aggregate at
any one time.

ARTICLE VIII

EVENTS OF DEFAULT

Section 8.01.  Events
of Default.  If any of the following
events (each individually, an “Event of Default”) shall occur and be
continuing:

(a)           the
Borrower (i) shall fail to pay any principal of any Loan when the same becomes
due and payable in accordance with the terms hereof, or (ii) shall fail to pay
any interest on any Loan or any fee or other amount to be paid by it hereunder
within three (3) calendar days of the date on which such payment is due; or

(b)           any
certification, representation or warranty made by the Borrower or the Guarantor
herein or by the Borrower or the Guarantor (or any of their respective
officers) in writing (including representations and warranties deemed made
pursuant to Sections 2.06(a)(G) or 3.02) under or in connection
with any Credit Document shall prove to have been incorrect in any material
respect when made or deemed made; or

(c)           the
Borrower or the Guarantor shall fail to perform or observe (i) any term,
covenant or agreement contained in Sections 6.02 or 6.05 (other
than with respect to maintaining the corporate existence of the Borrower or the
Guarantor or maintaining any Corporate Franchise of the Borrower or the
Guarantor which is material to the Borrower’s or the Guarantor’s business and
operations) on its part to be performed or observed and such failure shall
continue for thirty (30) Business Days after the earlier of the date notice
thereof shall have been given to the Borrower or the Guarantor by the
Administrative Agent, or (ii) any term, covenant or agreement contained in any
Credit Document (other than a term, covenant or agreement described in clause
(i) of this clause (c)) on its part to be performed or observed and
such failure shall continue for twenty (20) Business Days after the earlier of
the date notice thereof shall have been given to the Borrower or the Guarantor
by the Administrative Agent; or

(d)           the
Borrower, the Guarantor, or any of their respective Subsidiaries shall fail to
pay any principal of or premium or interest on any of its Debt which is
outstanding in a principal amount of at least $30,000,000 in the aggregate
(excluding Debt evidenced by the Notes) when the same becomes due and payable
(whether by scheduled maturity, required prepayment, acceleration, demand 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
event of default or other event shall occur or condition shall exist under any
agreement or instrument creating or evidencing such Debt in such principal
amount, 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 the maturity of such Debt; provided, however, an Event
of Default for purposes of this clause (d) shall not be deemed to exist
due to the acceleration of the maturity of any obligation to a Bank or an
affiliate (within the meaning of Regulation U) of a Bank solely by reason of a
default in the performance of a term or condition in any agreement or

 37
 

 

 

instrument under or by which such obligation is
created, evidenced or secured, which term or condition restricts the right of
the Borrower or any other Person to sell, pledge or otherwise dispose of any
margin stock (within the meaning of Regulation U) held by the Borrower or any
such other Person; or

(e)           the
Borrower, the Guarantor, or any Significant Subsidiary 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,
the Guarantor, or any Significant Subsidiary 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, 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), shall remain undismissed or unstayed for a period
of sixty (60) days; or the Borrower, the Guarantor, or any Significant
Subsidiary shall take any corporate action to authorize any of the actions set
forth above in this clause (e); or

(f)            any
judgment or order for the payment of money in excess of $30,000,000 shall be
rendered against the Borrower, the Guarantor, or any of their respective
Subsidiaries and remain unsatisfied 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 sixty 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)           the
Borrower shall cease to own directly or indirectly 100% of the issued and
outstanding voting stock of the Guarantor; or

(h)           any
Person shall become, directly or indirectly, the beneficial owner of 50% or
more of the outstanding voting common stock of the Borrower;

then, and in any such event, the Administrative Agent
(i) shall at the request, or may with the consent, of the Majority Banks, after
providing notice to the Borrower, declare all of the Commitments and the
obligation of each Bank to make Loans to be terminated, whereupon all of the
Commitments and each such obligation shall forthwith terminate, and (ii) shall
at the request, or may with the consent, of the Majority Banks, by notice to
the Borrower declare the Notes, all interest thereon and all other amounts
payable by the Borrower and the Guarantor under this Agreement to be forthwith
due and payable, whereupon such Notes, such interest and all such amounts shall
become and be forthwith due and payable, without requirement of any presentment,
demand, protest, notice of intent to accelerate, further notice of acceleration
or other further notice of any kind (other than the notice expressly provided
for above), all of which are hereby expressly waived by the Borrower and the
Guarantor; provided, however, that in the event of any Event of
Default described in Section 8.01(e) with respect to the Borrower or the
Guarantor, (A) the obligation of each Bank to make Loans shall automatically be
terminated and (B) the Loans and Notes, all such interest and all such amounts
shall automatically become and be due and payable, without presentment, demand,
protest, notice of intent to accelerate, notice

 38
 

 

 

of acceleration or any other notice of any kind, all
of which are hereby expressly waived by the Borrower and the Guarantor.

ARTICLE IX

THE ADMINISTRATIVE AGENT

Section
9.01.  Authorization and Action.  Each Bank hereby appoints and authorizes the
Administrative Agent to take such action as administrative agent on its behalf
and to exercise such powers under this Agreement as are delegated to the
Administrative Agent by the terms hereof, together with such powers as are
reasonably incidental thereto.  As to any
matters not expressly provided for by this Agreement (including, without
limitation, enforcement or collection of the Loans), 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 Majority
Banks, and such instructions shall be binding upon all Banks; provided, however,
that the Administrative Agent shall not be required to take any action which
exposes the Administrative Agent to personal liability or which is contrary to
this Agreement or applicable law.  The
Administrative Agent agrees to give to each Bank prompt notice of each notice
given to it by the Borrower pursuant to the terms of this Agreement.

Section
9.02.  Administrative Agent’s
Reliance, Etc.  Neither the
Administrative Agent nor any of its directors, officers, agents or employees
shall be liable to the Banks 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: (i) may consult with legal counsel (including
counsel for the Borrower), independent public accountants and other experts
selected by it and shall not be liable to the Banks 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; (ii) makes no warranty or representation to
any Bank and shall not be responsible to any Bank for any statements,
warranties or representations (whether written or oral) made in or in
connection with this Agreement; (iii) 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 to inspect the
property (including the books and records) of the Borrower or any of its
Subsidiaries; (iv) shall not be responsible to any Bank for the due execution,
legality, validity, enforceability, genuineness, sufficiency or value of this
Agreement or any other instrument or document furnished pursuant hereto; and
(v) shall incur no liability to the Banks 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, cable or telex) believed by it to be
genuine and signed or sent by the proper party or parties.

Section 9.03.  Defaults.  The
Administrative Agent shall not be deemed to have knowledge or notice of the
occurrence of a Default (other than a failure to make a payment of principal of
or interest on the Loans) unless
the Administrative Agent has received notice from a Bank or the Borrower
specifying such Default and stating that such notice is a “Notice of Default”.  In the event that the Administrative Agent
receives such a notice of a Default, the

 39
 

 

 

Administrative Agent shall give prompt notice
thereof to the Banks.  The Administrative
Agent shall (subject to Section 9.08 hereof) take such action with respect
to such Default as shall be directed by the Majority Banks, provided
that unless and until the Administrative Agent shall have received such
directions, the Administrative Agent may (but shall not be obligated to) take
such action, or refrain from taking such action, with respect to such Default
as it shall deem advisable in the best interest of the Banks except to the
extent that this Agreement expressly requires that such action be taken, or not
be taken, only with the consent or upon the authorization of the Majority Banks
or all of the Banks.

Section
9.04.  Citibank and Affiliates.  With respect to its Commitment and the Loans
made by it, Citibank shall have the same rights and powers under this Agreement
as any other Bank and may exercise the same as though it were not the
Administrative Agent; and the term “Bank” or “Banks” shall, unless otherwise
expressly indicated, include Citibank in its individual capacity.  Citibank and its Affiliates may accept
deposits from, lend money to, act as trustee under indentures of, 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 were not the Administrative Agent and
without any duty to account therefor to the Banks.

Section
9.05.  Bank Credit Decision.  Each Bank acknowledges that it has,
independently and without reliance upon the Administrative Agent or any other
Bank and based on the financial statements referred to in Section 5.04
and such other documents and information as it has deemed appropriate, made its
own credit analysis and decision to enter into this Agreement.  Each Bank also acknowledges that it will,
independently and without reliance upon the Administrative Agent or any other
Bank 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
9.06.  Successor Administrative Agent.  The Administrative Agent may resign at any
time by giving written notice thereof to the Banks and the Borrower and may be
removed at any time with or without cause by the Majority Banks.  Upon any such resignation or removal, the
Majority Banks shall have the right to appoint a successor Administrative Agent
that, unless a Default or Event of Default shall have occurred and then be
continuing, is acceptable to the Borrower. 
If no successor Administrative Agent shall have been so appointed by the
Majority Banks, and shall have accepted such appointment, within 30 days after
the retiring Administrative Agent’s giving of notice of resignation or the
Majority Banks’ removal of the retiring Administrative Agent, then the retiring
Administrative Agent may, on behalf of the Banks, appoint a successor
Administrative Agent, which shall be a commercial bank organized under the laws
of the United States of America or of any State thereof and having total assets
of at least $1,000,000,000.  Upon the
acceptance of any appointment as Administrative Agent hereunder by a successor
Administrative Agent, such successor Administrative Agent shall thereupon
succeed to and become vested with all the rights, powers, privileges and duties
of the retiring Administrative Agent, and the retiring Administrative Agent
shall be discharged from its duties and obligations under this Agreement.  After any retiring Administrative Agent’s
resignation or removal hereunder as Administrative Agent, the provisions of
this Article IX shall inure to its benefit as to any actions taken or
omitted to be taken by it while it was Administrative Agent under this
Agreement.

 40

 

 

Section 9.07.  Joint Lead Arrangers and Bookrunners.  The Joint Lead Arrangers and Bookrunners
named on the cover page of this Agreement, in their capacities as such, shall
have no obligation, responsibility or required performance hereunder and shall
not become liable in any manner to any party hereto in respect hereof.

Section 9.08.  INDEMNIFICATION.  THE ADMINISTRATIVE AGENT SHALL NOT BE
REQUIRED TO TAKE ANY ACTION HEREUNDER OR TO PROSECUTE OR DEFEND ANY SUIT IN
RESPECT OF THIS AGREEMENT OR THE NOTES, UNLESS INDEMNIFIED TO ITS SATISFACTION
BY THE BANKS AGAINST LOSS, COST, LIABILITY AND EXPENSE.  IF ANY INDEMNITY FURNISHED TO THE
ADMINISTRATIVE AGENT SHALL BECOME IMPAIRED, IT MAY CALL FOR ADDITIONAL
INDEMNITY AND CEASE TO DO THE ACTS INDEMNIFIED AGAINST UNTIL SUCH ADDITIONAL
INDEMNITY IS GIVEN.  IN ADDITION, THE
BANKS, JOINTLY AND SEVERALLY, AGREE TO INDEMNIFY THE ADMINISTRATIVE AGENT (TO
THE EXTENT NOT REIMBURSED BY THE BORROWER OR THE GUARANTOR) FROM AND AGAINST ANY
AND ALL LIABILITIES, OBLIGATIONS, LOSSES, DAMAGES, PENALTIES, ACTIONS,
AGREEMENTS, SUITS, COSTS, EXPENSES OR DISBURSEMENTS OF ANY KIND OR NATURE
WHATSOEVER WHICH MAY BE IMPOSED ON, INCURRED BY, OR ASSERTED AGAINST THE ADMINISTRATIVE
AGENT IN ANY WAY RELATING TO OR ARISING OUT OF THE CREDIT DOCUMENTS OR ANY
ACTION TAKEN OR OMITTED BY THE ADMINISTRATIVE AGENT UNDER THE CREDIT DOCUMENTS,
PROVIDED, THAT, NO BANK SHALL BE LIABLE TO THE ADMINISTRATIVE
AGENT FOR ANY PORTION OF SUCH LIABILITIES, OBLIGATIONS, LOSSES, DAMAGES,
PENALTIES, ACTIONS, AGREEMENTS, SUITS, COSTS, EXPENSES OR DISBURSEMENTS
RESULTING FROM THE ADMINISTRATIVE AGENT’S GROSS NEGLIGENCE OR WILLFUL
MISCONDUCT.  WITHOUT LIMITATION OF THE
FOREGOING, EACH BANK EXPRESSLY AGREES TO INDEMNIFY THE ADMINISTRATIVE AGENT
FROM ITS OWN NEGLIGENCE.  EACH BANK
AGREES TO REIMBURSE THE ADMINISTRATIVE AGENT PROMPTLY UPON DEMAND FOR ITS
RATABLE SHARE OF ANY OUT-OF-POCKET EXPENSES (INCLUDING COUNSEL FEES INCURRED BY
THE ADMINISTRATIVE AGENT 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, THE CREDIT DOCUMENTS) TO THE
EXTENT THAT THE ADMINISTRATIVE AGENT IS NOT REIMBURSED FOR SUCH EXPENSES BY THE
BORROWER OR THE GUARANTOR.

ARTICLE X

MISCELLANEOUS

Section 10.01.  Amendments,
Etc.  No amendment or waiver of any
provision of any Credit Document, nor consent to any departure by the Borrower
or the Guarantor therefrom, shall in any event be effective unless the same
shall be in writing and signed by the Borrower and the Majority Banks, 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,

 41
 

 

 

waiver or consent shall, unless in writing and signed
by all the Banks, do any of the following: (a) increase the Commitments of any
of the Banks or subject any of the Banks to any additional obligations, (b)
reduce the principal of, or interest on, the Notes or any fees or other amounts
payable hereunder, (c) postpone any date fixed for any payment of principal of,
or interest on, the Notes or any fees or other amounts payable hereunder, (d)
take action which requires the signing of all the Banks pursuant to the terms
of this Agreement, (e) change the percentage of the Commitments or of the
aggregate unpaid principal amount of the Notes, or the number of Banks, which
shall be required for the Banks or any of them to take any action under this
Agreement or any other Credit Document, (f) release the Guarantor or otherwise
change any obligation of the Guarantor to pay any amount payable by the
Guarantor hereunder or (g) amend this Section 10.01; provided, further,
that no amendment, waiver or consent shall, unless in writing and signed by the
Administrative Agent in addition to the Banks required above to take such
action, affect the rights or duties of the Administrative Agent under any
Credit Document; and provided, further, that no amendment, waiver
or consent shall, unless in writing and signed by the Guarantor in addition to
any other party required above to take such action, affect the rights or duties
of the Guarantor under any Credit Document.

Section
10.02.  Notices, Etc.

(a)           Subject to clauses (b) through
(f) of this Section 10.02, all notices and other
communications provided for hereunder shall be in writing (including telecopy
or email communication) and mailed, telecopied or emailed or delivered, if to
any Bank as specified on Schedule I hereto or specified pursuant to
an Assignment, if to the Borrower or the Guarantor, as specified opposite its
name on Schedule II hereto; or, as to the Borrower, the Guarantor
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, the Guarantor and the Administrative Agent.  All such notices and communications shall,
when mailed, telecopied or emailed, be effective when deposited in the mails,
sent by telecopier to any party to the telecopier number as set forth herein or
on Schedule I or Schedule II hereto (or other telecopy
number specified by such party in a written notice to the other parties
hereto), or sent by email to the addresses set forth herein or on Schedule I
or Schedule II hereto, respectively, except that notices to the
Administrative Agent pursuant to Article II shall not be effective
until received by the Administrative Agent.

(b)           The Borrower hereby agrees that it
will provide to the Administrative Agent all information, documents and other
materials that it is obligated to furnish to the Administrative Agent pursuant
to this Agreement, including, without limitation, all notices, requests,
financial statements, financial and other reports, certificates and other
information materials, but excluding any such communication that
(i) relates to a request for a new, or a conversion of an existing,
Borrowing (including any election of an interest rate or Interest Period
relating thereto), (ii) relates to the payment of any principal or other
amount due under this Agreement prior to the scheduled date therefor,
(iii) provides notice of any Default or Event of Default under this
Agreement or (iv) is required to be delivered to satisfy any condition
precedent to the effectiveness of this Agreement and/or any borrowing
thereunder (all such non-excluded communications being referred to herein
collectively as “Communications”), by transmitting the Communications in
an electronic/soft medium in a format acceptable to the Administrative Agent to
oploanswebadmin@citigroup.com.  In
addition, the Borrower agrees to

 42
 

 

 

continue to provide the
Communications to the Administrative Agent in the manner specified in this
Agreement but only to the extent requested by the Administrative Agent.

(c)           The Borrower further agrees that the
Administrative Agent may make the Communications available to the Banks by
posting the Communications on Intralinks or a substantially similar electronic
transmission system (the “Platform”).

(d)           THE PLATFORM IS PROVIDED “AS IS” AND “AS
AVAILABLE”.  THE AGENT PARTIES (AS
DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE COMMUNICATIONS,
OR THE ADEQUACY OF THE PLATFORM AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS OR
OMISSIONS IN THE COMMUNICATIONS.  NO
WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING, WITHOUT
LIMITATION, AN WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE,
NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE
DEFECTS, IS MADE BY THE AGENT PARTIES IN CONNECTION WITH THE COMMUNICATIONS OR
THE PLATFORM.  IN NO EVENT SHALL THE
ADMINISTRATIVE AGENT OR ANY OF ITS AFFILIATES OR ANY OF THEIR RESPECTIVE
OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, ADVISORS OR REPRESENTATIVES
(COLLECTIVELY, “AGENT PARTIES”) HAVE ANY LIABILITY TO THE BORROWER, ANY BANK OR
ANY OTHER PERSON OR ENTITY FOR DAMAGES OF ANY KIND, INCLUDING, WITHOUT LIMITATION,
DIRECT OR INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES, LOSSES OR
EXPENSES (WHETHER IN TORT, CONTRACT OR OTHERWISE) ARISING OUT OF THE BORROWER’S
OR THE ADMINISTRATIVE AGENT’S TRANSMISSION OF COMMUNICATIONS THROUGH THE
INTERNET, EXCEPT TO THE EXTENT THE LIABILITY OF ANY AGENT PARTY IS FOUND IN A
FINAL NON-APPEALABLE JUDGMENT BY A COURT OF COMPETENT JURISDICTION TO HAVE
RESULTED PRIMARILY FROM SUCH AGENT PARTY’S GROSS NEGLIGENCE OR WILLFUL
MISCONDUCT.

(e)           The Administrative Agent agrees that
the receipt of the Communications by the Administrative Agent at its e-mail
address set forth above shall constitute effective delivery of the
Communications to the Administrative Agent for purposes of this Agreement.  Each Bank agrees that notice to it (as
provided in the next sentence) specifying that the Communications have been
posted to the Platform shall constitute effective delivery of the
Communications to such Bank for purposes of this Agreement.  Each Bank agrees to notify the Administrative
Agent in writing (including by electronic communication) from time to time of
such Bank’s e-mail address to which the foregoing notice may be sent by
electronic transmission and (ii) that the foregoing notice may be sent to
such e-mail address.

(f)            Nothing herein shall prejudice the
right of the Administrative Agent or any Bank to give any notice or other
communication pursuant to this Agreement in any other manner specified herein.

Section 10.03.  No
Waiver; Remedies.  No failure on the
part of any Bank or the Administrative Agent to exercise, and no delay in
exercising, any right under any Credit

 43
 

 

 

Document shall operate as a waiver thereof; nor shall
any single or partial exercise of any such right preclude any other or further
exercise thereof or the exercise of any other right.  The remedies provided in the Credit Documents
are cumulative and not exclusive of any remedies provided by law.

Section
10.04.  Costs, Expenses and Taxes.

(a)           The
Borrower agrees to pay on demand (i) all reasonable out-of-pocket costs and
expenses of the Administrative Agent in connection with the preparation,
execution, delivery, administration, modification and amendment of any Credit
Document, including, without limitation, the reasonable fees and out-of-pocket
expenses of Milbank, Tweed, Hadley & McCloy LLP, special counsel to the
Administrative Agent, and Hughes & Luce, L.L.P., special Texas counsel to
the Administrative Agent, with respect to advising the Administrative Agent and
(ii) all reasonable out-of-pocket costs and expenses, if any (including,
without limitation, reasonable counsel fees and expenses), of the
Administrative Agent and each Bank in connection with the enforcement (whether
through negotiations, legal proceedings or otherwise) against the Borrower or
the Guarantor of any Credit Document.

(b)           EACH
OF THE BORROWER AND THE GUARANTOR, JOINTLY AND SEVERALLY, AGREES, TO THE
FULLEST EXTENT PERMITTED BY LAW, TO INDEMNIFY AND HOLD HARMLESS THE
ADMINISTRATIVE AGENT AND EACH BANK AND EACH OF THEIR RESPECTIVE DIRECTORS, OFFICERS,
EMPLOYEES AND AGENTS FROM AND AGAINST ANY AND ALL CLAIMS, DAMAGES, LOSSES,
LIABILITIES AND EXPENSES (INCLUDING, WITHOUT LIMITATION, REASONABLE FEES AND
DISBURSEMENTS OF COUNSEL), FOR WHICH ANY OF THEM MAY BECOME LIABLE OR WHICH MAY
BE INCURRED BY OR ASSERTED AGAINST THE ADMINISTRATIVE AGENT OR SUCH BANK OR ANY
SUCH DIRECTOR, OFFICER, EMPLOYEE OR AGENT (OTHER THAN BY ANOTHER BANK OR ANY
SUCCESSOR OR ASSIGN OF ANOTHER BANK OR BY THE BORROWER OR GUARANTOR), IN EACH
CASE IN CONNECTION WITH OR ARISING OUT OF OR BY REASON OF ANY INVESTIGATION,
LITIGATION, OR PROCEEDING, WHETHER OR NOT THE ADMINISTRATIVE AGENT OR SUCH BANK
OR ANY SUCH DIRECTOR, OFFICER OR EMPLOYEE IS A PARTY THERETO, ARISING OUT OF,
RELATED TO OR IN CONNECTION WITH ANY CREDIT DOCUMENT OR ANY TRANSACTION IN
WHICH ANY PROCEEDS OF ALL OR ANY PART OF THE LOANS ARE APPLIED, OTHER THAN ANY
SUCH CLAIM, DAMAGE, LIABILITY OR EXPENSE TO THE EXTENT ATTRIBUTABLE TO THE
GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF, OR VIOLATION OF ANY LAW OR
REGULATION BY, ANY SUCH INDEMNIFIED PARTY. 
NO PARTY SHALL BE LIABLE TO ANY OTHER PARTY FOR ANY INDIRECT,
CONSEQUENTIAL OR PUNITIVE DAMAGES.

Section 10.05.  Right
of Set-off.  Upon (i) the occurrence
and during the continuance of an Event of Default pursuant to Section
8.01(a) or (ii) the making of the request or the granting of the consent
specified by Section 8.01 to authorize the Administrative Agent to
declare the Notes due and payable pursuant to the provisions of Section 8.01,
each Bank is hereby authorized at any time and from time to time, to the
fullest extent permitted by law, to set off and apply any and all deposits
(general or special, time or demand, provisional or final) at any time

 44
 

 

 

held and other indebtedness at any time owing by such
Bank or any affiliate of such Bank to or for the credit or the account of the
Borrower or the Guarantor against any and all of the obligations of the
Borrower or the Guarantor now or hereafter existing under the Credit Documents,
irrespective of whether or not such Bank shall have made any demand under this
Agreement or such Notes and although such obligations may be unmatured.  Each Bank agrees to notify the Borrower and
the Guarantor promptly after such set-off and application made by such Bank; provided,
that the failure to give such notice shall not affect the validity of such
set-off and application. The rights of each Bank under this Section 10.05
are in addition to other rights and remedies (including, without limitation,
other rights of set-off) which such Bank may have.

Section 10.06.  Bank
Assignments and Participations.

(a)           Assignments.  Any Bank may assign to one or more banks or
other entities all or any portion of its rights and obligations under this
Agreement (including, without limitation, all or a portion of its Commitment,
the Loans owing to it, and the Notes held by it) with the consent, not to be
unreasonably withheld, of the Administrative Agent and the Borrower; provided,
however, that (i) each such assignment of an assigning Bank’s Commitment
shall be of a constant, and not a varying, percentage of all of such Bank’s
rights and obligations under this Agreement in respect of such Commitment, (ii)
the amount of the resulting Commitment and Loans of the assigning Bank (unless
it is assigning all its Commitment) and the assignee Bank pursuant to each such
assignment (determined as of the date of the Assignment with respect to such
assignment) shall in no event be less than $10,000,000 and shall be an integral
multiple of $1,000,000, (iii) each such assignment shall be to an Eligible
Assignee, (iv) the parties to each such assignment shall execute and
deliver to the Administrative Agent for its acceptance and recording in the
Register, an Assignment, together with the Note or Notes subject to such
assignment and shall pay all legal and other expenses in respect of such
assignment and (v) each Eligible Assignee not already a Bank hereunder shall
pay to the Administrative Agent an assignment fee of $3,500 in connection with
such assignment.  Upon such execution, delivery,
acceptance and recording, from and after the effective date specified in each
Assignment, which effective date shall be at least three (3) Business Days
after the execution thereof, (A) the assignee thereunder shall be a party
hereto for all purposes and, to the extent that rights and obligations
hereunder have been assigned to it pursuant to such Assignment, have the rights
and obligations of a Bank hereunder and (B) such Bank thereunder shall, to the
extent that rights and obligations hereunder have been assigned by it pursuant
to such Assignment, relinquish its rights and be released from its obligations
to lend under this Agreement (and, in the case of an Assignment covering all or
the remaining portion of such Bank’s rights and obligations under this
Agreement, such Bank shall cease to be a party hereto).

(b)           Terms
of Assignments.  By executing and
delivering an Assignment, the Bank thereunder and the assignee thereunder
confirm to and agree with each other and the other parties hereto the matters
set forth in paragraphs 2 and 3 of such Assignment.

(c)           The
Register.  The Administrative Agent
shall maintain at its address referred to on Schedule I a copy of each
Assignment delivered to and accepted by it and a register for the recordation
of the names and addresses of the Banks and the Commitments of, and principal
amount of the Loans owing to, each Bank from time to time (the “Register”).  The entries in the

 45
 

 

 

Register shall be conclusive and binding for all
purposes, absent error, and the Borrower, the Guarantor, the Administrative
Agent and the Banks may treat each Person whose name is recorded in the
Register as a Bank hereunder for all purposes of this Agreement.  The Register shall be available for inspection
by the Borrower, the Guarantor or any Bank at any reasonable time and from time
to time upon reasonable prior notice.

(d)           Procedures.  Upon its receipt of an Assignment executed by
a Bank and an Eligible Assignee, together with the Note or Notes subject to
such assignment, the Administrative Agent shall, if such Assignment has been
completed and is in substantially the form of the attached Exhibit C,
(i) accept such Assignment, (ii) record the information contained therein in
the Register, and (iii) give prompt notice thereof to the Borrower and the
Guarantor.  Within five (5) 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
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, if such assigning
Bank has retained any Commitment hereunder, a new Note to the order of such
Bank in an amount equal to the Commitment retained by it hereunder.  Such Notes shall be dated the effective date
of such Assignment and shall otherwise be in substantially the form of the
attached Exhibit A.

(e)           Participations.  Each Bank 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 Loans owing to it, and the Notes held by it); provided,
however, that (i) such Bank’s obligations under this Agreement
(including, without limitation, its Commitment to the Borrower hereunder) shall
remain unchanged, (ii) such Bank shall remain solely responsible to the other
parties hereto for the performance of such obligations, (iii) such Bank shall
remain the holder of any such Notes for all purposes of this Agreement, (iv)
the Borrower, the Guarantor, the Administrative Agent and the other Banks shall
continue to deal solely and directly with such Bank in connection with such
Bank’s rights and obligations under this Agreement and shall have no duties or
responsibilities to the participant, (v) such Bank shall not require the
participant’s consent to any matter under this Agreement, except for changes in
the principal amount of such Bank’s Commitment, any Note payable to such Bank
in which the participant has an interest, or the aggregate Commitments,
reductions in fees or interest, the date any amount is due hereunder, or
extending the Maturity Date, and (vi) such Bank shall give prompt notice to the
Borrower of each such participation sold by such Bank.  No participants shall have any rights under
any provisions of any of the Credit Documents.

(f)            Permitted
Assignments.  Notwithstanding any
other provision set forth in this Agreement, any Bank may assign all or any
portion of its rights under this Agreement (including, without limitation,
rights to payments of principal and/or interest under any Notes held by it) to
any subsidiary of such Bank or to any Federal Reserve Bank, without notice to
or consent from the Borrower or the Administrative Agent; provided, however,
that such Bank shall not be released from any of its obligations hereunder as a
result of such assignment.

Section 10.07.  Governing
Law.  This Agreement, the Notes and
the other Credit Documents shall be governed by, and construed in accordance
with, the laws of the State of Texas.

 46
 

 

 

Section 10.08.  Interest.

(a)           It
is the intention of the parties hereto that the Administrative Agent and each
Bank shall conform strictly to Applicable Usury Laws from time to time in
effect.  Accordingly, if the transactions
with the Administrative Agent or any Bank contemplated hereby would be usurious
under Applicable Usury Law, then, in that event, notwithstanding anything to
the contrary in this Agreement, the Notes, or any other agreement entered into
in connection with or as security for this Agreement or the Notes, it is agreed
as follows:  (i) the aggregate of all
consideration which constitutes interest under Applicable Usury Law that is
contracted for, taken, reserved, charged or received by the Administrative
Agent or such Bank, as the case may be, under this Agreement, the Notes, or
under any other agreement entered into in connection with or as security for
this Agreement or the Notes shall under no circumstances exceed the maximum
amount allowed by such Applicable Usury Law and any excess shall be canceled
automatically and, if theretofore paid, shall at the option of the
Administrative Agent or such Bank, as the case may be, be credited by the
Administrative Agent or such Bank, as the case may be, on the principal amount
of the obligations owed to the Administrative Agent or such Bank, as the case
may be, by the Borrower or refunded by the Administrative Agent or such Bank,
as the case may be, to the Borrower, and (ii) in the event that the maturity of
any Note or other obligation payable to the Administrative Agent or such Bank,
as the case may be, is accelerated or in the event of any required or permitted
prepayment, then such consideration that constitutes interest under Applicable
Usury Law, may never include more than the maximum amount allowed by such
Applicable Usury Law and excess interest, if any to the Administrative Agent or
such Bank, as the case may be, provided for in this Agreement or otherwise
shall be canceled automatically as of the date of such acceleration or
prepayment and, if theretofore paid, shall, at the option of the Administrative
Agent or such Bank, as the case may be, be credited by the Administrative Agent
or such Bank, as the case may be, on the principal amount of the obligations
owed to the Administrative Agent or such Bank, as the case may be, by the
Borrower or refunded by the Administrative Agent or such Bank, as the case may
be, to the Borrower.

(b)           In
the event that at any time the rate of interest applicable to any Loan made by
any Bank would exceed the Maximum Rate, thereby causing the interest payable
under this Agreement or the Notes to be limited to the Maximum Rate, then any
subsequent reductions in the applicable rate of interest hereunder or under the
Notes shall not reduce the rate of interest charged hereunder or under the
Notes below the Maximum Rate until the total amount of interest accrued under
this Agreement and the Notes from and after the date hereof equals the amount
of interest that would have accrued hereon or thereon if the rates of interest
otherwise applicable to this Agreement and the Notes (without limitation by the
Maximum Rate) had at all times been in effect. 
In the event that upon the final payment of the Loans made by any Bank
and termination of the Commitment of such Bank, the total amount of interest
paid to such Bank hereunder and under the Notes is less than the total amount
of interest which would have accrued if the interest rates applicable to such
Loans pursuant to Section 2.09(a), (b) and (c) had at all times been in
effect, then the Borrower agrees to pay to such Bank, to the extent permitted
by Applicable Usury Law, an amount equal to the excess of (a) the lesser of (i)
the amount of interest which would have accrued on such Loans if the Maximum
Rate had at all times been in effect or (ii) the amount of interest rates
applicable to such Loans pursuant to Section 2.09(a), (b) and (c) had at
all times been in effect over (b) the amount of interest otherwise accrued on
such Loans in accordance with this Agreement.

 47
 

 

 

(c)           The
maximum non-usurious rate of interest shall be determined by utilizing the
applicable weekly ceiling from time to time in effect pursuant to Chapter 303
of the Texas Finance Code.  Pursuant to Section
346.004 of the Texas Finance Code, the parties hereto agree that in no event
will the provisions of Chapter 346 of the Texas Finance Code be applicable to
the transactions contemplated by the Credit Documents.

Section 10.09.  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.

Section 10.10.  Survival
of Agreements, Representations and Warranties, Etc.  All warranties, representations and covenants
made by the Borrower or the Guarantor or any officer of the Borrower or the
Guarantor herein or in any certificate or other document delivered in
connection with this Agreement shall be considered to have been relied upon by
the Banks and shall survive the issuance and delivery of the Notes and the
making of the Loans regardless of any investigation.  The indemnities and other obligations of the
Borrower contained in this Agreement, and the indemnities by the Banks in favor
of the Agent and its officers, directors, employees and agents, will survive
the repayment of the Loans and the termination of this Agreement.

Section 10.11.  The
Borrower’s Right to Apply Deposits. 
In the event that any Bank is placed in receivership or enters a similar
proceeding, the Borrower may, to the full extent permitted by law, make any
payment due to such Bank hereunder, to the extent of finally collected
unrestricted deposits of the Borrower in U.S. Dollars held by such Bank, by
giving notice to the Administrative Agent and such Bank directing such Bank to
apply such deposits to such indebtedness. 
If the amount of such deposits is insufficient to pay such indebtedness
then due and owing in full, the Borrower shall pay the balance of such
insufficiency in accordance with this Agreement.

Section 10.12.  Confidentiality.  Each Bank and the Administrative Agent agree
that they will not disclose without the prior consent of the Borrower and the
Guarantor (other than to employees, auditors, accountants, counsel or other
professional advisors of the Agent or any Bank who have a contractual,
fiduciary or professional duty to maintain the confidentiality of the
information) any information with respect to the Borrower or the Guarantor or
their Subsidiaries which is furnished pursuant to this Agreement and which is
not disclosed in an SEC Filing, a report to shareholders, a press release, or
has otherwise become generally available to the public otherwise than through a
breach hereof (the “Confidential Information”), provided, that,
any Bank may disclose any such Confidential Information (a) as may be required
or appropriate in any report, statement or testimony submitted to or required
by any municipal, state or Federal regulatory body having or claiming to have
jurisdiction over such Bank or submitted to or required by the Board of
Governors of the Federal Reserve System or the Federal Deposit Insurance Corporation
or similar organizations (whether in the United States of America or elsewhere)
or their successors, (b) as may be required or appropriate in response to any
summons or subpoena in connection with any litigation, (c) in order to comply
with any law, order, regulation or ruling applicable to such Bank, and (d) to
an Eligible Assignee, but not to a prospective participant, in connection with
any contemplated transfer of any of the Notes or any

 48
 

 

 

interest therein by such Bank, provided, that,
such Eligible Assignee executes an agreement with the Borrower and the
Guarantor agreeing to comply with the provisions contained in this Section
10.12.  In the event that the
Administrative Agent or any Bank becomes legally compelled or otherwise
obligated to disclose any of the Confidential Information and unless otherwise
prohibited by applicable banking laws or regulations, such Person will
promptly, after obtaining knowledge of its obligation to disclose such
information, provide the Borrower with notice so that the Borrower may seek a
protective order or other appropriate remedy or waive compliance with this
Section.  In the event such protective
order or other remedy is not obtained, such Person will furnish only that portion
of the Confidential Information which it is advised by legal counsel is legally
required and will exercise its best efforts to obtain reliable assurances that
confidential treatment will be accorded the Confidential Information.  In the event that compliance with this
Section is waived by the Borrower, such Person may disclose any and all
information at issue without liability to the Borrower, the Guarantor or any
other Person.

Section 10.13.  Binding
Effect.  This Agreement shall be
binding upon and inure to the benefit of the Borrower, the Guarantor, the
Administrative Agent, each Bank and their respective successors and assigns,
except that the Borrower and the Guarantor shall not have the right to assign
any of their respective rights hereunder or any interest herein without the
prior written consent of the Banks.

Section 10.14.  ENTIRE
AGREEMENT.  PURSUANT TO SECTION
26.02 OF THE TEXAS BUSINESS AND COMMERCE CODE, A LOAN AGREEMENT IN WHICH
THE AMOUNT INVOLVED IN THE LOAN AGREEMENT EXCEEDS $50,000 IN VALUE IS NOT
ENFORCEABLE UNLESS THE LOAN AGREEMENT IS IN WRITING AND SIGNED BY THE PARTY TO
BE BOUND OR THAT PARTY’S AUTHORIZED REPRESENTATIVE.

THE RIGHTS AND OBLIGATIONS OF THE PARTIES TO AN
AGREEMENT SUBJECT TO THE PRECEDING PARAGRAPH SHALL BE DETERMINED SOLELY FROM
THE WRITTEN LOAN AGREEMENT, AND ANY PRIOR ORAL AGREEMENTS BETWEEN THE PARTIES
ARE SUPERSEDED BY AND MERGED INTO THE LOAN AGREEMENT.  THIS WRITTEN AGREEMENT AND THE CREDIT
DOCUMENTS, AS DEFINED IN THIS AGREEMENT, REPRESENT THE FINAL AGREEMENT AMONG
THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS,
OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. 
THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.  IN CASE OF A CONFLICT BETWEEN THE COMMITMENT
LETTER DATED AS OF AUGUST 25, 2006 BETWEEN EACH OF THE JOINT LEAD ARRANGERS AND
BOOKRUNNERS NAMED ON THE COVER PAGE OF THIS AGREEMENT, JPMCB AND THE BORROWER,
AND THIS AGREEMENT, THIS AGREEMENT SHALL CONTROL.

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

 

 49

 

 

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

 

 

	
   

  	
  BORROWER:

  	
   

  
	
   

  	
   

  
	
   

  	
  BRINKER
  INTERNATIONAL, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Charles M. Sonsteby

  
	
   

  	
  Name: Charles M. Sonsteby

  
	
   

  	
  Title: Executive
  Vice President and

  
	
   

  	
   

  	
  Chief Financial
  Officer

  
	
   

  	
   

  
	
   

  	
  GUARANTOR:

  	
   

  
	
   

  	
   

  
	
   

  	
  BRINKER
  RESTAURANT CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Roger F. Thomson

  
	
   

  	
  Name: Roger F. Thomson

  
	
   

  	
  Title: President
  and Secretary

  
						

 

 

 

	
  

  	
  ADMINISTRATIVE
  AGENT:

  	
   

  
	
   

  	
   

  
	
   

  	
  CITIBANK, N.A.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kevin A. Ege

  
	
   

  	
  Name: Kevin A. Ege

  
	
   

  	
  Title: Vice
  President

  
				

 

 

 

	
  Commitment:

  	
  BANKS:

  	
   

  
	
   

  	
   

  
	
  $240,000,000.00

  	
  CITIBANK, N.A.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kevin A. Ege

  
	
   

  	
  Name: Kevin A. Ege

  
	
   

  	
  Title: Vice
  President

  
				

 

 

 

	
  $160,000,000.00

  	
  JPMORGAN CHASE
  BANK, N.A.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ D. Scott Harvey

  
	
   

  	
  Name: D. Scott Harvey

  
	
   

  	
  Title: Vice
  President

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Total
  Commitments:

  	
   

  
	
  $400,000,000.00

  	
   

  
				

 

 

 

EXHIBIT A

FORM OF NOTE

	
  U.S. $                                    

  	
  Dated:
                
  [    ], 2006

  

 

FOR VALUE RECEIVED, the undersigned, Brinker International, Inc., a
Delaware corporation (the “Borrower”), HEREBY PROMISES TO PAY to the
order of                       
(the “Bank”), for the account of its Applicable Lending Office (as
defined in the Bridge Loan Agreement referred to below) or any other office
designated by the Bank, the principal amount of $                        
on the Maturity Date as defined in said Bridge Loan Agreement.

The Borrower promises to pay interest on the unpaid principal amount
hereof from the date hereof until such principal amount is paid in full, at
such interest rates, and payable at such times, as are specified in the Bridge
Loan Agreement.

Both principal and interest are payable in lawful money of the United
States of America to Citibank, N.A., as Administrative Agent, at 2 Penns Way,
Suite 200, New Castle, DE  19720, in same
day funds.

This Promissory Note is one of the Notes referred to in, and is subject
to and entitled to the benefits of, the Bridge Loan Agreement dated as of
August 28, 2006 (as it may be amended from time to time in accordance with its
terms, the “Bridge Loan Agreement”), among the Borrower, Brinker
Restaurant Corporation, a Delaware corporation, as Guarantor, the Bank and
certain other banks parties thereto (collectively, the “Banks”) and
Citibank, N.A., as Administrative Agent for the Banks.  The Bridge Loan Agreement, among other
things, provides for the making of loans by the Bank to the Borrower from time
to time and (ii) contains provisions for acceleration of the maturity hereof
upon the happening of certain stated events and also for prepayments on account
of principal hereof prior to the maturity hereof upon the terms and conditions
therein specified.  Capitalized terms
used herein which are not defined herein and are defined in the Bridge Loan
Agreement are used herein as therein defined.

The Borrower hereby waives presentment for payment, notice of nonpayment,
demand, protest, notice of protest, notice of dishonor, notice of intent to
accelerate, notice of acceleration and any other notice of any kind, except as
provided in the Bridge Loan Agreement. 
No failure to exercise, and no delay in exercising, any rights hereunder
on the part of the holder hereof shall operate as a waiver of such rights.

This Promissory Note shall be governed by, and construed in accordance
with, the laws of the State of Texas.

 

	
  

  	
  BRINKER INTERNATIONAL, INC.

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

 A-1

 

 

EXHIBIT B

FORM OF NOTICE OF BORROWING

[Date]

Citibank, N.A., as Administrative Agent

for
the Banks parties

to
the Bridge Loan Agreement

referred to below

Two Penns Way, Suite 200

New Castle, Delaware  19720

Attention:              Mr. Kwasi Bame

Telephone:            (302)
894-6073

Telecopy:              (212) 994-0975

Ladies
and Gentlemen:

The undersigned, Brinker International, Inc., a Delaware corporation (the
“Borrower”), refers to the Bridge Loan Agreement, dated as of August 28,
2006 (as amended from time to time in accordance with its terms, the “Bridge
Loan Agreement”; capitalized terms defined therein and not defined herein
being used herein as therein defined), among the undersigned, Brinker
Restaurant Corporation, a Delaware corporation, as Guarantor, certain Banks
parties thereto, and Citibank, N.A., as Administrative Agent, and hereby gives
you notice, irrevocably pursuant
to Section 2.02 of the Bridge Loan Agreement, that the undersigned
hereby requests a Borrowing under the Bridge Loan Agreement, and in that
connection sets forth below the information relating to such Borrowing (the “Proposed
Borrowing”) as required by Section 2.02 of the Bridge Loan
Agreement:

 

	
  (A)

  	
  Borrowing Date (which is a
  Business Day during the Drawdown Period)

  	
   

  
	
  (B)

  	
  Aggregate Principal Amount of
  Borrowing(1)

  	
   

  
	
  (C)

  	
  Type of Loan(2)

  	
   

  
	
  (D)

  	
  Initial Interest Period and
  the last day thereof(3)

  	
   

  

 

The undersigned hereby certifies that the following statements are true
on the date hereof, and will be true on the date of the Proposed Borrowing:

(a)           the representations
and warranties contained in Article V of the Bridge Loan Agreement,
other than representations and warranties contained in 5.04(b) and Section
5.05, are correct in all material respects on and as of the date of the
Proposed Borrowing, before and after

 B-1
 

 

 

giving
effect to the Proposed Borrowing and to the application of the proceeds
therefrom, as though made on and as of such date;

(b)           no event has occurred
and is continuing, or would result from the Proposed Borrowing or from the
application of the proceeds therefrom, which constitutes an Event of Default or
a Default; and

(c)           after giving effect to
the Proposed Borrowing and all other Borrowings which have been requested on or
prior to the date of the Proposed Borrowing but which have not been made prior
to such date, the aggregate principal amount of all Borrowings will not exceed
the aggregate of the Total Commitment.

	
  

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  BRINKER INTERNATIONAL, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

(1)                                  Not less than $10,000,000 or greater than the
unused Total Commitment and in integral multiples of $1,000,000.

(2)                                  Eurodollar Rate Loan or Base Rate Loan.

(3)                                  Which shall have a duration (i) in the case of a
Eurodollar Rate Loan, of one (1),
two (2) or three (3) months and (ii) in the case of a Base Rate Loan, of up to ninety (90) days, and which, in any
case, shall end not later than the Maturity Date.

 B-2

 

 

EXHIBIT C

FORM OF ASSIGNMENT

Dated                                 ,
          

Reference is made to the Bridge Loan Agreement, dated as of August 28,
2006 (as the same may be amended or modified from time to time, the “Bridge
Loan Agreement”) among Brinker International, Inc., a Delaware corporation
(the “Borrower”), Brinker Restaurant Corporation, a Delaware corporation
(the “Guarantor”), the Banks named therein, and Citibank, N.A., as
Administrative Agent for the Banks. 
Capitalized terms not otherwise defined in this Assignment (this “Assignment”)
shall have the meanings assigned to them in the Bridge Loan Agreement.

Pursuant to the terms of the Bridge Loan Agreement,                      wishes
to assign and delegate         % of its
rights and obligations under the Bridge Loan Agreement in connection with its
Commitment and its outstanding Loans and Note. Therefore,                            (the
“Assignor”),                              (the
“Assignee”), and the Administrative Agent agree as follows:

1.             The Assignor hereby
sells and assigns and delegates to the Assignee, and the Assignee hereby
purchases and assumes from the Assignor, as of the Effective Date (as defined
below), without recourse to the Assignor and without representation or warranty
except for the representations and warranties specifically set forth in clauses
(a), (b), and (c) of Section 2 hereof, [(a)]
a         %(1) interest in and to all of
the Assignor’s rights and obligations under the Bridge Loan Agreement in
connection with its Commitment, its outstanding Loans and its Notes.

2.             The Assignor (a)
represents and warrants that, prior to executing this Assignment (i) its
Commitment (without giving effect to assignments thereof which have not yet
become effective) is $              [,][and]
(ii) the aggregate outstanding principal amount of Loans (without giving effect
to assignments thereof which have not yet become effective) owed to it by the
Borrower is $            ;
(b) represents and warrants that it is the legal and beneficial owner of the
interest being assigned by it hereunder and that such interest is free and
clear of any adverse claim; (c) makes no representation or warranty and assumes
no responsibility with respect to any statements, warranties, or
representations made in or in connection with the Bridge Loan Agreement or any
other Credit Document or the execution, legality, validity, enforceability,
genuineness, sufficiency, or value of the Bridge Loan Agreement or any other
Credit Document or any other instrument or document furnished pursuant thereto;
(d) makes no representation or warranty and assumes no responsibility with
respect to the financial condition of the Borrower or the Guarantor or the
performance or observance by the Borrower or the Guarantor of any of their
respective obligations under the Bridge Loan Agreement or any other Credit
Document or any other instrument or document furnished pursuant thereto; and
(e) attaches the Note(s) referred to in Section 1 above and requests
that the Administrative Agent [(i)] exchange such Note for [a] new Note dated                      
,          in the principal
amount of $                    
payable to the order of the Assignee[, and a new Note dated                      
,          in the principal
amount of $              payable
to the order of Assignor].

 C-1
 

 

 

3.             The Assignee (a)
confirms that it has received a copy of the Bridge Loan Agreement, together
with copies of the financial statements referred to in Section 5.04
thereof and such other documents and information as it has deemed appropriate
to make its own credit analysis and decision to enter into this Assignment; (b)
agrees that it will, independently and without reliance upon the Administrative
Agent, the Assignor, or any other Bank and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit decisions in taking or not taking action under the Bridge Loan
Agreement; (c) appoints and authorizes the Administrative Agent to take such action
as agent on its behalf and to exercise such powers under the Bridge Loan
Agreement as are delegated to the Administrative Agent by the terms thereof,
together with such powers as are reasonably incidental thereto; (d) agrees that
it will perform in accordance with their terms all of the obligations which by
the terms of the Bridge Loan Agreement are required to be performed by it as a
Bank; (e) specifies as its Domestic Lending Office (and address for notices)
and Eurodollar Lending Office the offices set forth beneath its name on the
signature pages hereof; (f) attaches the forms prescribed by the Internal
Revenue Service of the United States of America certifying as to the Assignee’s
status for purposes of determining exemption from United States of America
withholding taxes with respect to all payments to be made to the Assignee under
the Bridge Loan Agreement and its Note(s) or such other documents as are
necessary to indicate that all such payments are subject to such rates at a
rate reduced by an applicable tax treaty(2), (g) represents that it is an
Eligible Assignee, and (h) agrees that it will keep confidential all
information with respect to the Borrower furnished to it by Borrower or the
Assignor (other than information generally available to the public or otherwise
available to the Assignor on a non-confidential basis) as provided in Section 10.12
of the Bridge Loan Agreement.

4.             The effective date
for this Assignment shall be                 
(the “Effective Date”)(3) and following the execution of this
Assignment, the Administrative Agent will record it.

5.             Upon such recording,
and as of the Effective Date, (i) the Assignee shall be a party to the Bridge
Loan Agreement for all purposes, and, to the extent provided in this
Assignment, have the rights and obligations of a Bank thereunder and (ii) the
Assignor shall, to the extent provided in this Assignment, relinquish its
rights (other than rights against the Borrower pursuant to Section 10.04
of the Bridge Loan Agreement, which shall survive this assignment) and be
released from its obligations under the Bridge Loan Agreement.

6.             Upon such recording,
from and after the Effective Date, the Administrative Agent shall make all
payments under the Bridge Loan Agreement and the Note(s) in respect of the
interest assigned hereby (including, without limitation, all payments of
principal, interest, and fees) to the Assignee. 
The Assignor and Assignee shall make all appropriate adjustments in
payments under the Bridge Loan Agreement and the Note(s) for periods prior to
the Effective Date directly between themselves.

7.             This Assignment shall
be governed by, and construed and enforced in accordance with, the laws of the
State of Texas.

The parties hereto have caused this Assignment to be duly executed as of the
date first above written.

 C-2
 

 

 

	
  

  	
  [ASSIGNOR]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Attention:

  	
   

  	
   

  
	
   

  	
  Telecopy:

  	
   

  	
   

  
	
   

  	
  Telephone:

  	
   

  	
   

  
											

 

	
  

  	
  [ASSIGNEE]

  
	
   

  	
   

  
	
   

  	
  Domestic Lending Office:

  
	
   

  	
  [ASSIGNOR]

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Attention:

  	
   

  	
   

  
	
   

  	
  Telecopy:

  	
   

  	
   

  
	
   

  	
  Telephone:

  	
   

  	
   

  
											

 

	
  

  	
  Eurodollar Lending Office:

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Attention:

  	
   

  	
   

  
	
   

  	
  Telecopy:

  	
   

  	
   

  
	
   

  	
  Telephone:

  	
   

  	
   

  
											

 

	
  

  	
  CITIBANK, N.A., as
  Administrative Agent for

  itself and the Banks

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name: 

  	
   

  	
   

  
	
   

  	
  Title: 

  	
   

  	
   

  
	
   

  	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
								

 

 C-3
 

 

 

	
  

  	
  Attention:

  	
   

  	
   

  
	
   

  	
  Telecopy:

  	
   

  	
   

  
	
   

  	
  Telephone:

  	
   

  	
   

  
						

 

(1)                                  Specify percentage in no more than 4 decimal
points.

(2)                                  If the Assignee is organized under the laws of a
jurisdiction outside the United States of America.

(3)                                  See Section 10.06(a) of the Bridge
Loan Agreement.  Such date shall be at least three (3)
Business Days after the execution of this Assignment.

 

 C-4

 

 

EXHIBIT D

FORM OF LEGAL OPINION OF BORROWER’S AND GUARANTOR’S COUNSEL

[                    ,
2006]

To each of the Banks
parties to the 

Bridge Loan Agreement herein
described 

and to Citibank, N.A., as Administrative Agent

Ladies and Gentlemen:

This opinion is
furnished to you pursuant to Section 3.01(a)(iv) of the $400,000,000 Bridge Loan Agreement, dated as of August
28, 2006 (the “Bridge Loan
Agreement”), among Brinker International, Inc., a Delaware corporation, as
borrower (the “Borrower”); Brinker Restaurant Corporation, a Delaware
corporation, as guarantor (the “Guarantor”); the banks party thereto (the “Banks”);
and Citibank, N.A., as Administrative Agent for such Banks (in such capacity,
the “Administrative Agent”).  Capitalized
terms defined in the Bridge Loan
Agreement are used herein with the same meaning unless otherwise defined
herein.

DOCUMENTS
EXAMINED

In our capacity as
special counsel for the Borrower and the Guarantor, we have examined the
originals, copies or forms, certified or otherwise identified to our
satisfaction, of the following documents (the “Documents”):

(i)            The Bridge Loan Agreement;

(ii)           Certificate of Incorporation of the
Borrower as filed with the Secretary of State of Delaware on September 30, 1983
and all amendments thereto through the date hereof (the “Borrower Certificate
of Incorporation”);

(iii)          Certificate of Incorporation of the
Guarantor as filed with the Secretary of State of Delaware on June 19, 1990 and
all amendments thereto through the date hereof (the “Guarantor Certificate of
Incorporation”);

(iv)          Bylaws of the Borrower (the “Borrower
Bylaws”); and

(v)           Bylaws of the Guarantor (the “Guarantor
Bylaws”).

In addition, we
have examined and relied upon such certificates of public officials and other
certificates, opinions and instruments as we have deemed relevant and necessary
as a basis

 D-1
 

 

 

for our opinion
hereinafter set forth. As to matters of fact material to our opinion, we have,
when relevant facts were not independently established, relied upon certificates
of representatives of the Borrower and the Guarantor and upon representations
and warranties set forth in the Bridge Loan
Agreement, and have not conducted any special inquiry or investigation in
respect of such matters.

As used herein,
(i) “Disclosed” means disclosed in or contemplated by the Bridge Loan Agreement or any SEC Filing
and (ii) “Knowledge” means the current, actual knowledge of the attorneys of
this firm who are involved in the representation of the Borrower and the
Guarantor in connection with the transactions contemplated by the Bridge Loan Agreement, without any
independent investigation.

ASSUMPTIONS

In rendering this
opinion, we have assumed, with your consent and without any independent
investigation, all of the following:

(A)          the genuineness of all signatures
(other than those of the officers of the Borrower and the Guarantor who
executed the Bridge Loan Agreement
and the Notes), the authenticity of all documents submitted to us as originals
and the conformity to authentic original documents of all documents submitted
as certified, conformed or photostatic copies;

(B)           that each of the parties to the
Documents other than the Borrower and the Guarantor (the “Other Parties”) is
duly organized, validly existing and in good standing under the laws of its
jurisdiction of incorporation or formation and has full power and authority to
execute, deliver and perform its obligations under each of the Documents to
which it is a party, that each of the Documents has been duly authorized,
executed and delivered by each of the parties thereto, that each of the
Documents constitutes a valid and legally binding obligation of each of the
Other Parties thereto and is enforceable against the Other Parties in
accordance with its terms that each of the Other Parties has fulfilled and
complied with its obligations under the Documents to the extent required
thereunder to date, and that the Borrower and the Guarantor have received or
will concurrently herewith receive the consideration provided in the Documents
to be received at or prior to the date hereof;

(C)           that all of the Documents will be
performed strictly in accordance with the terms thereof; and

(D)          that the representations and
warranties as to factual matters contained in the Documents are true and
correct.

OPINION

Based upon the
foregoing and having due regard for the legal considerations we deem relevant,
and subject to the further qualifications and limitations hereinafter set
forth, we are of the opinion that:

 D-2
 

 

 

1.             Each of the Borrower and the
Guarantor is a corporation duly incorporated, validly existing and in good
standing under the Delaware General Corporation Law, as amended (the “DGCL”),
and has the corporate power and authority under the DGCL to enter into and
perform the Bridge Loan Agreement and the Notes.

2.             The Bridge Loan Agreement has been
duly and validly authorized, executed and delivered by the Borrower, and
constitutes and each Note when duly executed and delivered for value in
accordance with the Bridge Loan Agreement will constitute, a valid and binding
obligation of the Borrower enforceable against the Borrower in accordance with
its terms, in each case except as enforcement of the Bridge Loan Agreement or
the Notes may be limited by applicable bankruptcy, insolvency, reorganization,
arrangement, fraudulent transfer, moratorium or other laws affecting creditors’
rights generally, and subject to general equity principles and to limitations
on availability of equitable relief, including specific performance.

3.             The Bridge Loan Agreement has been
duly and validly authorized, executed and delivered by the Guarantor, and
constitutes a valid and binding obligation of the Guarantor enforceable against
the Guarantor in accordance with its terms, except as enforcement may be
limited by applicable bankruptcy, insolvency, reorganization, arrangement,
fraudulent transfer, moratorium or other laws affecting creditors’ rights
generally, and subject to general equity principles and to limitations on
availability of equitable relief, including specific performance.

4.             Neither the execution and delivery
of the Bridge Loan Agreement or the Notes or the consummation of the
transactions contemplated therein will violate any provision of the Borrower
Certificate of Incorporation, the Guarantor Certificate of Incorporation, the
Borrower Bylaws or the Guarantor Bylaws, or to our Knowledge, conflict with or
violate any statute, judgment, order, decree or regulation or rule of any
court, governmental authority or arbitrator applicable or relating to the
Borrower or the Guarantor.

5.             To our Knowledge and except as
Disclosed, there are  no actions, suits,
proceedings or claims or investigations pending or threatened against or
affecting the Borrower or the Guarantor or any of their respective properties
before any court, governmental agency or regulatory authority which would (i)
have a Material Adverse Effect or (ii) impair the ability of the Borrower or
the Guarantor to perform their obligations under the Bridge Loan Agreement or
the Notes.

6.             Neither the Borrower nor the
Guarantor is an “investment company” or a company “controlled” by an “investment
company” within the meaning of the Investment Company Act of 1940, as amended.

FURTHER QUALIFICATIONS AND LIMITATIONS

The opinions
expressed above are expressly subject to the following qualifications and
limitations:

(a)           We express no opinion as to (i) the
specific remedy that any court or other authority or body might grant in
connection with the enforcement of rights under any of the

 D-3
 

 

 

Documents, as to the
availability of equitable remedies, as such, in connection with the enforcement
of such rights, or as to the effects of the application of principles of equity
(regardless of whether enforcement is considered in proceedings in law or in
equity), (ii) the application of any securities laws to any of the transactions
contemplated by any of the Documents, or (iii) the effect of any environmental,
antitrust or tax laws of the United States of America or of the State of Texas.

(b)           We express no opinion as to the
validity or enforceability of (i) any provisions purporting to entitle a party
to indemnification or release from liability in respect of any matters arising
in whole or in part by reason of any illegal, wrongful, knowing or negligent
act or omission of such party, (ii) any provisions that purport to restrict
access to or waive remedies or defenses, to waive any rights to notices or to
establish evidentiary standards, (iii) any provisions relating to liquidated
damages, waivers, releases, suretyship defenses, delays or omissions of
enforcement of rights or remedies, severability, consent judgments or summary
proceedings, (iv) any provisions purporting to irrevocably appoint
attorneys-in-fact or other agents, (v) any provisions purporting to restrict or
limit transfer, alienation or encumbering of property, (vi) any provisions that
relate to submissions to jurisdiction, waivers or ratifications of future acts,
the rights of, third parties or transferability of assets which by their nature
are nontransferable, (vii) provisions that contain any agreement to agree, or
(viii) provisions that purport to negate or control over present or future laws
which are contrary to such provisions.

(c)           To the extent that the opinions given
in Sections 2, 3 and 4 constitute opinions with respect to laws relating to
usury, such opinions are expressly limited to the opinion that the Bridge Loan
Agreement and the Notes do not require the payment of interest at a rate which
is usurious.  In rendering such opinion,
we have relied upon and assumed the applicability of Chapter 303 of the Texas
Finance Code, as currently in effect, and have assumed that (i) there are no
fees, points or other charges or forms of compensation to Administrative Agent
or any Bank in respect of the Bridge Loan Agreement or the issuance of the
Notes or any commitment to pay any such charges or other forms of compensation,
other than those specifically disclosed in the Bridge Loan Agreement, (ii) all
fees and charges provided for in the Bridge Loan Agreement and the Notes to be
paid by Borrower or Guarantor to Administrative Agent or any Bank constitute
bona fide commitment fees and not interest, (iii) all charges for reimbursement
of services paid to third parties will be for actual out-of-pocket expenses
paid to third parties for services actually rendered by such parties, (iv)
Administrative Agent, the Banks, Borrower and Guarantor will comply with the “usury
savings clause” and other provisions of the Bridge Loan Agreement to the effect
that the Borrower and the Guarantor will never be required to pay interest
(including all compensation that constitutes interest under applicable law) on
the Notes or otherwise in respect of the Bridge Loan Agreement in excess of the
maximum rate or amount of interest that may lawfully be contracted for, charged
or collected thereon or in connection therewith under applicable Texas law
(collectively, the “Savings Clauses”), and (v) in complying with the provisions
of the Saving Clauses, Administrative Agent and such Bank will give due consideration
to all fees, charges or other compensation which under applicable Texas law may
be or is deemed to be interest.

 D-4
 

 

 

(d)           We are members of the Bar of the
State of Texas. This opinion relates only to the laws of the State of Texas and
the DGCL as currently in effect, and we express no opinion with regard to any
matters that may be governed or affected by any other laws.

(e)           This opinion is limited solely to the
matters stated herein and no opinion is to be inferred or may be implied beyond
the matters expressly stated herein.

The opinions
expressed herein are solely for the benefit of you and your counsel in
connection with the transactions contemplated by the Bridge Loan Agreement and
may not be used or relied upon by any other person or entity or for any other
purpose whatsoever.  The opinions
expressed herein are as of the date first set forth above, and we do not assume
or undertake any responsibility or obligation to supplement or to update such
opinions to reflect any facts or circumstances which may hereafter come to our
attention or any changes in the laws which may hereafter occur.

Very truly yours,

 D-5

 

 

EXHIBIT E

FORM OF LEGAL OPINION OF SPECIAL COUNSEL TO

ADMINISTRATIVE AGENT

[                    ,
2006]

To each of the Banks parties to

the Bridge Loan Agreement
herein described and to

Citibank, N.A.,

as Administrative
Agent

Ladies and Gentlemen:

We have acted as
special counsel to Citibank, N.A., acting for itself and as Administrative
Agent in connection with the preparation, execution and delivery of that
certain Bridge Loan Agreement, dated as of August 28, 2006 (the “Bridge
Loan Agreement”), among Brinker International, Inc., a Delaware
corporation, as borrower (the “Borrower”), Brinker Restaurant
Corporation, a Delaware corporation, as guarantor (the “Guarantor”),
Citibank, N.A., as Administrative Agent (the “Administrative Agent”) and
each of you (the “Banks”).  Terms
defined in the Bridge Loan Agreement are used herein as therein defined.

In that
connection, we have examined the following documents:

(1)           counterparts of the Bridge Loan
Agreement, executed by the Borrower, the Guarantor, the Banks, and the
Administrative Agent, respectively; and

(2)           the opinion dated as of the date
hereof of Jackson Walker L.L.P. for each of the Borrower and the Guarantor (the
“Opinion”).

In our examination
of the documents referred to above, we have assumed the authenticity of all
such documents submitted to us as originals, the genuineness of all signatures
and the conformity to the originals of all such documents submitted to us as
copies.  We have also assumed that each
of the Borrower, the Guarantor, the Banks, and the Administrative Agent has
duly executed and delivered, with all necessary power and authority (corporate
and otherwise), the Bridge Loan Agreement. 
We have also assumed that no Bank has requested that the Opinion
required by Section 3.01(a)(iv) of the Bridge Loan Agreement
contain any other matters not contained in the form of opinion set forth as Exhibit D
to the Bridge Loan Agreement.

Based upon the
foregoing examination of documents and assumptions and upon such other
investigation as we have deemed necessary, we are of the opinion that the
Opinion is substantially responsive to the requirements of the Bridge Loan
Agreement.

 E-1
 

 

 

This opinion is
solely for the benefit of the Banks, the Administrative Agent, their respective
successors, assigns, participants and other transferees and may be relied upon
only by such Persons.

 

	
  

  	
  Very truly yours.

  
	
   

  	
  HUGHES & LUCE L.L.P.

  

 E-2

 

 

EXHIBIT F

FORM OF U.S. TAX COMPLIANCE CERTIFICATE

This
certificate is delivered pursuant to Section 2.17(e) of the Bridge Loan
Agreement, dated as of August 28, 2006 (the “Bridge Loan Agreement”)
among BRINKER INTERNATIONAL, INC. (the “Borrower”), the several banks
and other financial institutions from time to time parties thereto and
CITIBANK, N.A., as Administrative Agent (the “Administrative Agent”).  Unless otherwise defined herein, terms
defined in the Bridge Loan Agreement shall have the same respective meanings
when set forth therein.

The
undersigned hereby represents and warrants to the Administrative Agent and the
Borrower that:

1.  the undersigned is the sole record and
beneficial owner of the Loans or the transactions evidenced by the Note(s)
registered in its name in respect of which it is providing this certificate;

2.  the undersigned is not a bank (within the
meaning of Section 881(c)(3)(A) of the Code) and, in this regard, further
represents and warrants that:

(a)  the undersigned is not subject to regulatory
or other legal requirements as a bank in any jurisdiction; and

(b)  the undersigned has not been treated as a
bank for purposes of any tax, securities law or other filing or submission made
to any Governmental Authority, any application made to a rating agency or
qualification for any exemption from tax, securities law or other legal
requirements;

3.  the undersigned is not a 10-percent
shareholder (within the meaning of Section 881(c)(3)(B) of the Code) of the
Borrower;

4.  the income from the Note(s) held by the
undersigned is not effectively connected with the conduct of a trade or
business with the United States; and

5.  the undersigned is not a controlled foreign
corporation related (within the meaning of Section 864(d)(4) of the Code) to
the Borrower.

The
undersigned has furnished you with a certificate of our non-U.S. person status
on Internal Revenue Service Form W-8BEN. 
By executing this certificate, the undersigned agrees that (a) if the
information provided on this certificate changes, the undersigned shall so
inform the Administrative Agent and the Borrower in writing within thirty days
of such change and (b) the undersigned shall furnish to the Administrative
Agent and the Borrower a properly completed and currently effective certificate
in either the calendar year in which payment is to be made by the Borrower to
the undersigned under the Bridge Loan Agreement, or in either of the two
calendar years preceding such payment.

 F-1
 

 

 

IN WITNESS WHEREOF, the undersigned has caused this certificate to be
executed as of                 
    , 200    .

 

	
  

  	
  [NAME OF BANK]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
    Name:

  
	
   

  	
    Title:

  

 

 F-2

 

 

SCHEDULE
I

BANK AND ADMINISTRATIVE AGENT ADDRESSES

ADMINISTRATIVE AGENT:

CITIBANK, N.A.

Two Penns Way, Suite 200

New Castle, Delaware  19720

Attn:       Mr. Kwasi Bame

Telephone:            (302)
894-6073

Telecopy:              (212) 994-0975

 I-1
 

 

 

BANKS:

CITIBANK, N.A.

Two Penns Way, Suite 200

New Castle, Delaware  19720

Attn:       Mr. Kwasi Bame

Telephone:            (302)
894-6073

Telecopy:              (212) 994-0975

JPMORGAN CHASE BANK, N.A.

1111 Fannin, Floor 9

Houston, TX  77002-6925

Attn:  Ms. Talitha Humes

Mail Code:  TX2-F333

Telephone:            713 427-6190

Telecopy:              713 750-2782

 I-2

 

 

SCHEDULE
II

BORROWER AND GUARANTOR ADDRESSES

BORROWER:

BRINKER INTERNATIONAL, INC.

6820 LBJ Freeway

Dallas, Texas  75240

Attn:       General Counsel

Telephone:            972/980-9917

Telecopy:              972/770-9465

Copy to:  Vice President of
Investor Relations and Treasurer

Telephone:            972/770-7228

Telecopy:              972/770-8815

GUARANTOR:

BRINKER RESTAURANT CORPORATION

6820 LBJ Freeway

Dallas, Texas  75240

Attn:       General Counsel

Telephone:            972/980-9917

Telecopy:              972/770-9465

Copy to:  Vice President of
Investor Relations and Treasurer

Telephone:            972/770-7228

Telecopy:              972/770-8815

 II-1

 

 

SCHEDULE
III

PERMITTED
LIENS

 

	
  Subsidiary

  	
   

  	
  Amount

  	
   

  	
  Description

  	
   

  	
  Maturity

  
	
  Brinker New
  England I, LLC,

  Brinker New England II, LLC,
Brinker Massachusetts

  Corporation,
Brinker Connecticut

  Corporation,

  Brinker Rhode Island Inc, &
Brinker Restaurant Corporation

  	
   

  	
  $

  	
  10,799,000

  	
   

  	
  Mortgage Notes

  	
   

  	
  Various dates through
  March 2020

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Brinker
  Restaurant Corporation

  	
   

  	
  $

  	
  49,703,000

  	
   

  	
  Capital Lease
  Obligations

  	
   

  	
  Various dates through
  March 2020

  

 III-1

 

 

SCHEDULE
IV

AGREEMENTS
RESTRICTING DIVIDENDS AND CERTAIN TRANSFERS

1.   $300 Million Revolving Loan Agreement dated
October 6, 2004.

 IV-1

 

 

SCHEDULE
V

GAAP
EXCEPTIONS

None.

 V-1

 

 

SCHEDULE
VI

INVESTMENTS

 

	
  Company

  	
   

  	
  Amount

  	
   

  	
  Description

  
	
  Strang
  Corporation

  	
   

  	
  $

  	
  1,302,034

  	
   

  	
  Loan associated with sale of restaurants

  
						

 VI-1

 

 

SCHEDULE
VII

PERMITTED
DEBT

 

	
  Description

  	
   

  	
  Amount

  	
   

  
	
  5.75% Notes

  	
   

  	
  $

  	
  300,000,000

  	
   

  
	
  Committed Credit
  Facilities

  	
   

  	
  $

  	
  300,000,000

  	
   

  
	
  Committed Credit
  Facilities

  	
   

  	
  £

  	
  5,000,000

  	
   

  
	
  Uncommitted
  Credit Facilities

  	
   

  	
  $

  	
  400,000,000

  	
   

  
	
  Capital Lease
  Obligations

  	
   

  	
  $

  	
  49,703,000

  	
   

  
	
  Mortgage Loan
  Obligations

  	
   

  	
  $

  	
  10,799,000EXHIBIT
10.1

NEW BASE
SALARIES AND LONG-TERM INCENTIVE

AWARDS
FOR CERTAIN EXECUTIVE OFFICERS

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Long-Term

  Incentive Award2

  	
   

  
	
  Executive Officer

  	
   

  	
   

  	
   

  	
  Current

  Base Salary

  	
   

  	
  New Base

  Salary1

  	
   

  	
  Percentage

  Increase

  from Current

  Salary

  	
   

  	
  Number of

  Shares

  	
   

  	
  Value3

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Michael G. Long

  	
   

  	
  $

  	
  212,000

  	
   

  	
  $

  	
  227,000

  	
   

  	
  7.08

  	
  %

  	
  30,000

  	
   

  	
  $

  	
  581,700

  	
   

  
	
  Executive Vice
  President

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  & CFO

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  John O. Tugwell

  	
   

  	
  $

  	
  220,000

  	
   

  	
  $

  	
  235,000

  	
   

  	
  6.82

  	
  %

  	
  30,000

  	
   

  	
  $

  	
  581,700

  	
   

  
	
  Executive Vice
  President

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  & COO

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
																	

1                      These base
salaries are effective October 1, 2006.

2                      These are
grants of restricted stock that will vest over a four-year period, as
follows:  6,000 shares on October 1,
2008, 12,000 shares on October 1, 2009 and 12,000 shares on October 1,
2010.

3                      The value of the restricted stock
was as of the date of the award by the Compensation Committee, August 25,
2006.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}]]