Document:

Exhibit
10.1

CONFORMED COPY

 

 

SENIOR BRIDGE LETTER OF
CREDIT AGREEMENT

dated as of

June 21, 2007

among

TYCO INTERNATIONAL LTD.,

Guarantor

TYCO INTERNATIONAL
FINANCE S.A.,

Borrower

The Lenders Party Hereto,

CITIBANK, N.A.,

as L/C Issuer

and

CITIBANK, N.A. 

as Administrative Agent

 

 

 

TABLE OF
CONTENTS

 

	
  

  	
   

  	
   

  	
   

  	
  Page

  	
   

  
	
  ARTICLE
  I

  	
  Definitions

  	
   

  	
  1

  	
   

  
	
  Section 1.01

  	
   

  	
  Defined Terms

  	
   

  	
  1

  	
   

  
	
  Section 1.02

  	
   

  	
  Classification of Loans
  and Borrowings

  	
   

  	
  17

  	
   

  
	
  Section 1.03

  	
   

  	
  Terms Generally

  	
   

  	
  17

  	
   

  
	
  Section 1.04

  	
   

  	
  Accounting Terms; GAAP

  	
   

  	
  18

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  II

  	
  The Credits

  	
   

  	
  18

  	
   

  
	
  Section 2.01

  	
   

  	
  Loans

  	
   

  	
  18

  	
   

  
	
  Section 2.02

  	
   

  	
  Letters of Credit

  	
   

  	
  18

  	
   

  
	
  Section 2.03

  	
   

  	
  Conversions and
  Continuations of Loans

  	
   

  	
  26

  	
   

  
	
  Section 2.04

  	
   

  	
  Prepayments

  	
   

  	
  27

  	
   

  
	
  Section 2.05

  	
   

  	
  Repayment of Loans

  	
   

  	
  28

  	
   

  
	
  Section 2.06

  	
   

  	
  Interest

  	
   

  	
  28

  	
   

  
	
  Section 2.07

  	
   

  	
  Fees

  	
   

  	
  28

  	
   

  
	
  Section 2.08

  	
   

  	
  Computation of Interest
  and Fees

  	
   

  	
  29

  	
   

  
	
  Section 2.09

  	
   

  	
  Evidence of Debt

  	
   

  	
  29

  	
   

  
	
  Section 2.10

  	
   

  	
  Termination and
  Reduction of Commitments

  	
   

  	
  30

  	
   

  
	
  Section 2.11

  	
   

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

  	
   

  	
  30

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  III

  	
  Representations and
  Warranties

  	
   

  	
  32

  	
   

  
	
  Section 3.01

  	
   

  	
  Organization; Powers

  	
   

  	
  32

  	
   

  
	
  Section 3.02

  	
   

  	
  Authorization;
  Enforceability

  	
   

  	
  33

  	
   

  
	
  Section 3.03

  	
   

  	
  Governmental Approvals;
  No Conflicts

  	
   

  	
  33

  	
   

  
	
  Section 3.04

  	
   

  	
  Financial Condition; No
  Material Adverse Change

  	
   

  	
  33

  	
   

  
	
  Section 3.05

  	
   

  	
  Litigation and
  Environmental Matters

  	
   

  	
  34

  	
   

  
	
  Section 3.06

  	
   

  	
  Investment Company
  Status

  	
   

  	
  34

  	
   

  
	
  Section 3.07

  	
   

  	
  Taxes

  	
   

  	
  34

  	
   

  
	
  Section 3.08

  	
   

  	
  ERISA

  	
   

  	
  34

  	
   

  
	
  Section 3.09

  	
   

  	
  Disclosure

  	
   

  	
  35

  	
   

  
	
  Section 3.10

  	
   

  	
  Subsidiaries

  	
   

  	
  35

  	
   

  
	
  Section 3.11

  	
   

  	
  Margin Regulations

  	
   

  	
  35

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  IV

  	
  Conditions

  	
   

  	
  35

  	
   

  
	
  Section 4.01

  	
   

  	
  Effective Date

  	
   

  	
  35

  	
   

  
	
  Section 4.02

  	
   

  	
  Each Borrowing

  	
   

  	
  36

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  V

  	
  Covenants

  	
   

  	
  37

  	
   

  
	
  Section 5.01

  	
   

  	
  Financial Statements
  and Other Information

  	
   

  	
  37

  	
   

  
	
  Section 5.02

  	
   

  	
  Existence; Conduct of Business

  	
   

  	
  38

  	
   

  
	
  Section 5.03

  	
   

  	
  Maintenance of
  Properties; Insurance

  	
   

  	
  38

  	
   

  
	
  Section 5.04

  	
   

  	
  Books and Records;
  Inspection Rights

  	
   

  	
  39

  	
   

  
	
  Section 5.05

  	
   

  	
  Compliance with Laws

  	
   

  	
  39

  	
   

  

 

 

	
  Section 5.06

  	
   

  	
  [Intentionally Omitted]

  	
   

  	
  39

  	
   

  
	
  Section 5.07

  	
   

  	
  Liens

  	
   

  	
  39

  	
   

  
	
  Section 5.08

  	
   

  	
  Fundamental Changes

  	
   

  	
  41

  	
   

  
	
  Section 5.09

  	
   

  	
  Financial Covenant

  	
   

  	
  42

  	
   

  
	
  Section 5.10

  	
   

  	
  Limitation on
  Restrictions on Subsidiary Dividends and Other Distributions

  	
   

  	
  42

  	
   

  
	
  Section 5.11

  	
   

  	
  Transactions with
  Affiliates

  	
   

  	
  44

  	
   

  
	
  Section 5.12

  	
   

  	
  Subsidiary Guarantors

  	
   

  	
  45

  	
   

  
	
  Section 5.13

  	
   

  	
  Subsidiary Debt

  	
   

  	
  45

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  VI

  	
  Events of Default

  	
   

  	
  46

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  VII

  	
  The Administrative
  Agent

  	
   

  	
  48

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  VIII

  	
  Guarantee

  	
   

  	
  51

  	
   

  
	
  Section 8.01

  	
   

  	
  The Guarantee

  	
   

  	
  51

  	
   

  
	
  Section 8.02

  	
   

  	
  Guarantee Unconditional

  	
   

  	
  51

  	
   

  
	
  Section 8.03

  	
   

  	
  Discharge Only upon
  Payment in Full; Reimbursement in Certain Circumstances

  	
   

  	
  52

  	
   

  
	
  Section 8.04

  	
   

  	
  Waiver by the Guarantor

  	
   

  	
  52

  	
   

  
	
  Section 8.05

  	
   

  	
  Subrogation

  	
   

  	
  52

  	
   

  
	
  Section 8.06

  	
   

  	
  Stay of Acceleration

  	
   

  	
  53

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  IX

  	
  Yield Protection, Illegality
  and Taxes

  	
   

  	
  53

  	
   

  
	
  Section 9.01

  	
   

  	
  Alternate Rate of
  Interest

  	
   

  	
  53

  	
   

  
	
  Section 9.02

  	
   

  	
  Illegality

  	
   

  	
  53

  	
   

  
	
  Section 9.03

  	
   

  	
  Increased Costs

  	
   

  	
  54

  	
   

  
	
  Section 9.04

  	
   

  	
  Break Funding Payments

  	
   

  	
  55

  	
   

  
	
  Section 9.05

  	
   

  	
  Taxes

  	
   

  	
  55

  	
   

  
	
  Section 9.06

  	
   

  	
  Matters Applicable to
  all Requests for Compensation

  	
   

  	
  56

  	
   

  
	
  Section 9.07

  	
   

  	
  Mitigation Obligations

  	
   

  	
  57

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  X

  	
  Miscellaneous

  	
   

  	
  57

  	
   

  
	
  Section 10.01

  	
   

  	
  Notices

  	
   

  	
  57

  	
   

  
	
  Section 10.02

  	
   

  	
  Waivers; Amendments

  	
   

  	
  59

  	
   

  
	
  Section 10.03

  	
   

  	
  Expenses; Indemnity;
  Damage Waiver

  	
   

  	
  59

  	
   

  
	
  Section 10.04

  	
   

  	
  Successors and Assigns

  	
   

  	
  61

  	
   

  
	
  Section 10.05

  	
   

  	
  Survival

  	
   

  	
  66

  	
   

  
	
  Section 10.06

  	
   

  	
  Counterparts;
  Integration; Effectiveness

  	
   

  	
  66

  	
   

  
	
  Section 10.07

  	
   

  	
  Severability

  	
   

  	
  67

  	
   

  
	
  Section 10.08

  	
   

  	
  Right of Setoff

  	
   

  	
  67

  	
   

  
	
  Section 10.09

  	
   

  	
  Governing Law;
  Jurisdiction; Consent to Service of Process

  	
   

  	
  67

  	
   

  
	
  Section 10.10

  	
   

  	
  Waiver of Jury Trial

  	
   

  	
  68

  	
   

  
	
  Section 10.11

  	
   

  	
  Waiver of Immunities

  	
   

  	
  68

  	
   

  
	
  Section 10.12

  	
   

  	
  Judgment Currency

  	
   

  	
  69

  	
   

  

 

 2
 

 

	
  Section 10.13

  	
   

  	
  Headings

  	
   

  	
  69

  	
   

  
	
  Section 10.14

  	
   

  	
  Confidentiality

  	
   

  	
  69

  	
   

  
	
  Section 10.15

  	
   

  	
  Electronic Communications

  	
   

  	
  70

  	
   

  
	
  Section 10.16

  	
   

  	
  USA PATRIOT Act Notice

  	
   

  	
  72

  	
   

  

 

SCHEDULES:

Schedule A - Existing Indenture Debt

Schedule B - Existing Letters of Credit

Schedule 1.01 - Pricing Grid

Schedule 2.01 - Commitments

Schedule 5.09 - Cross Guarantees

Schedule 10.01 - Administrative Agent’s Office; Lender Notice Addresses

EXHIBITS:

Exhibit A - Form of Note

Exhibit B - Form of Assignment and Assumption

Exhibit C - Form of Subsidiary Guaranty

 

 3

SENIOR BRIDGE LETTER OF CREDIT AGREEMENT (this “Agreement”)
dated as of June 21, 2007 (the “Closing Date”), among TYCO
INTERNATIONAL LTD., a Bermuda company (the “Guarantor”), TYCO
INTERNATIONAL FINANCE S.A. a Luxembourg company (the “Borrower”), the
LENDERS party hereto, CITIBANK, N.A. (“Citibank”), as L/C Issuer (the “L/C
Issuer”) and CITIBANK, N.A. as Administrative Agent.

The L/C Issuer issued the Existing Letters of Credit
for the account of Tyco International Group S.A. pursuant to one or more
reimbursement agreements;

In connection with the Separation Transactions the
parties wish to enter into this Agreement and deem the Existing Letters of
Credit to be issued under this Agreement;

The parties hereto agree as follows:

ARTICLE I

Definitions

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

“ABR”, when used in reference to any Loan or
Borrowing, means that such Loan, or the Loans comprising such Borrowing, bear
interest at a rate per annum equal to the Alternate Base Rate.

“Accumulated Other Comprehensive (Loss) Income”
on any date means the amount of “Accumulated Other Comprehensive (Loss) Income”
of the Guarantor and its Subsidiaries as of the end of the most recently
completed fiscal quarter of the Guarantor prior to such date of determination
determined on a consolidated basis in accordance with GAAP.

“Administrative Agent” means Citibank, N.A., in
its capacity as administrative agent for the Lenders under this Agreement and
the other Loan Documents, or any successor administrative agent.

“Administrative Agent’s Office” means the
office address, facsimile number, electronic mail address, telephone number and
account information set forth on Schedule 10.01 with respect to the
Administrative Agent or such other address, facsimile number, electronic mail
address, telephone number or account information as shall be designated by the
Administrative Agent in a notice to the Borrower, the L/C Issuer and the
Lenders.

“Affiliate” means, with respect to a specified
Person, another Person that directly, or indirectly through one or more
intermediaries, controls or is controlled by or is under common control with
the Person specified.  For purposes of
this definition, the term “control” (including the terms “controlling”
and “under common control with”) means the possession, directly or
indirectly, of the power to direct or cause the direction of the management or
policies of a Person, whether through the ability to exercise voting power, by
contract or otherwise.

 

“Alternate Base Rate” means, for any day, a
rate per annum equal to the greater of (a) the Base Rate in effect on such
day and (b) the Federal Funds Effective Rate in effect on such day plus 1⁄2
of 1%.  Any change in the Alternate Base
Rate due to a change in the Prime Rate or the Federal Funds Effective Rate
shall be effective from and including the effective date of such change in the
Base Rate or the Federal Funds Effective Rate, respectively.

“Applicable Margin” means, with respect to any
Eurodollar Loan, either (i) at any time during which less than 50% of the
aggregate Commitments are being utilized, the rate per annum set forth on the
Pricing Grid opposite the reference to the applicable Index Debt Rating under
the heading “Applicable Margin” and under the sub-heading “Less than 50% of the
Commitments Utilized”, or (ii) at any time during which 50% or more of the then
applicable aggregate Commitments are being utilized, the rate per annum set
forth on the Pricing Grid opposite the reference to the applicable Index Debt
Rating under the heading “Applicable Margin” and under the sub-heading “50% or
More of the Commitments Utilized”; any change in the Applicable Margin
resulting from an Index Debt Rating Change or an aggregate Commitment
utilization change shall be determined in accordance with Schedule 1.01
and shall be effective on the date of such Index Debt Rating Change or
utilization change, as the case may be.

“Applicable Percentage” means, with respect to
any Lender, the percentage (rounded to the ninth decimal) of the total
Commitments in effect at any given time represented by such Lender’s
Commitment.  If the Commitments have
terminated or expired, the Applicable Percentages shall be determined based
upon the outstanding principal amounts of the Loans made by the respective
Lenders.

“Approved Fund” has the meaning assigned to
such term in Section 10.04.

“Assignment and Assumption” means an assignment
and assumption entered into by a Lender and an assignee (with the consent of
any party whose consent is required by Section 10.04), and accepted by the
Administrative Agent, in the form of Exhibit B or any other form approved
by the Administrative Agent.

“Auto-Renewal Letter of Credit” has the meaning
assigned to such term in Section 2.02(d)(i).

“Availability Period” means the period from the Closing Date to the Maturity Date.

“Base Rate” means the rate of interest per
annum publicly announced from time to time by Citibank, N.A. as its base rate
or prime rate in effect at its principal office in New York City.

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

“Borrower” has the meaning set forth in the
preamble hereto.

“Borrowing” means Loans of the same Type, made,
converted or continued on the same date and, in the case of Eurodollar Loans,
as to which a single Interest Period is in effect.

 2
 

“Bridge Loan Agreements” means (a) the
364-Day Senior Bridge Loan Agreement (Electronics Businesses) dated as of
April 25, 2007 among TIGSA, the E Borrower, the Guarantor, the E
Guarantor, the lenders party thereto, and Bank of America, N.A., as
Administrative Agent, as amended by Amendment No. 1 thereto, dated as of May
25, 2007, (b) the 364-Day Senior Bridge Loan Agreement (Healthcare
Businesses) dated as of April 25, 2007 among TIGSA, the H Borrower, the
Guarantor, the H Guarantor, the lenders party thereto, and Citibank, N.A., as
Administrative Agent, as amended by Amendment No. 1 thereto, dated as of May
25, 2007, and (c) the 364-Day Senior Bridge Loan Agreement (Fire &
Safety and Engineered Products Businesses) dated as of April 25, 2007
among TIGSA, the Borrower, the Guarantor, the lenders party thereto, and
Citibank, N.A., as Administrative Agent, as amended by Amendment No. 1 thereto,
dated as of May 25, 2007.

“Business Day” means any day that is not a
Saturday, Sunday or other day on which commercial banks in New York City are
authorized or required by law to remain closed; provided that, when used
in connection with a Eurodollar Loan, the term “Business Day” shall also
exclude any day on which banks are not open for dealings in dollar deposits in
the London interbank market.

“Change in Law” means (a) the adoption of
any law, rule or regulation after the date of this Agreement, (b) any
change in any law, rule or regulation or in the interpretation or application
thereof by any Governmental Authority after the date of this Agreement or
(c) compliance by any Lender (or, for purposes of Section 9.03(b), by
any lending office of such Lender or by such Lender’s holding company, if any)
with any request, guideline or directive (whether or not having the force of
law) of any Governmental Authority made or issued after the date of this
Agreement.

“Closing Date” means the date of this
Agreement.

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

“Commitment” means, with respect to each
Lender, the Commitment of such Lender to acquire participations in L/C
Obligations and to make Loans hereunder, expressed as an amount representing
the maximum aggregate amount of such Lender’s Credit Exposure hereunder, as
such Commitment may be (a) reduced from time to time pursuant to
Section 2.10, and (b) reduced or increased from time to time pursuant
to assignments by or to such Lender pursuant to Section 10.04.  The initial amount of each Lender’s
Commitment is set forth on Schedule 2.01, or in the Assignment and
Assumption pursuant to which such Lender shall have assumed its Commitment, as
applicable.  The initial aggregate amount
of the Lenders’ Commitments is $500,000,000.

“Communications” has the meaning assigned to
such term in Section 10.15.

“Compensation Period” has the meaning assigned
to such term in Section 2.11(e).

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

 3
 

“Consolidated EBITDA” means, for any fiscal
period, Consolidated Net Income for such period plus the following, to the
extent deducted in calculating such Consolidated Net Income:  (a) Consolidated Interest Expense,
(b) income tax expense, (c) depreciation and amortization expense
(d) any extraordinary expenses or losses, (e) losses on sales of
assets outside of the ordinary course of business and losses from discontinued
operations, (f) any losses on the retirement of debt identified in the
Consolidated statements of cash flows and (g) any other nonrecurring or
non-cash charges (including charges incurred with respect to the Transactions),
and minus, to the extent included in calculating such Consolidated Net Income
for such period, the sum of (a) any extraordinary income or gains,
(b) gains on the sales of assets outside of the ordinary course of
business and gains from discontinued operations, (c) any gains on the
retirement of debt identified in the Consolidated statements of cash flows and
(d) any other nonrecurring or non-cash income, all as determined on a
Consolidated basis; provided that in calculating Consolidated EBITDA the
effect of the Cross Guarantees shall be disregarded.  If during such period the Guarantor or any
Subsidiary shall have made an acquisition, Consolidated EBITDA for such period
shall be calculated after giving pro forma
effect thereto as if such acquisition occurred on the first day of such period.

“Consolidated Interest Expense” means, for any
fiscal period (without duplication), (a) the Consolidated interest expense
of the Guarantor and its Consolidated Subsidiaries for such period plus
(b) if a Permitted Securitization Transaction outstanding during such
period is accounted for as a sale of accounts receivable, chattel paper, general
intangibles or the like under GAAP, the additional consolidated interest
expense that would have accrued during such period had such Permitted
Securitization Transaction been accounted for as a borrowing during such
period, determined on a Consolidated basis.

“Consolidated Net Income” means, for any fiscal
period, the Consolidated net income of the Guarantor for such period.  For purposes of calculating Consolidated Net
Income (and Consolidated EBITDA) for any period with respect to which
Consolidated financial statements reflecting the businesses spun off in the
Separation Transactions as discontinued operations and assets/liabilities held
for sale, as applicable, have not yet been filed with the SEC, Consolidated Net
Income (and Consolidated EBITDA) shall be determined based on the Separation
Pro Formas as described in Section 3.04(a)(ii) and any pro forma financial statements for subsequent periods as
described in the proviso of Section 5.01(b).

“Consolidated Tangible Assets” means, at any
time, the total assets less all Intangible Assets appearing on the Consolidated
balance sheet of the Guarantor as of the end of the most recently concluded
fiscal quarter of the Guarantor.

“Consolidated Total Debt” means, as of any date
of determination, the aggregate amount of Debt of the Guarantor determined on a
Consolidated basis, as of such date; provided that Guarantees shall be
valued at the amount thereof, if any, reflected on the consolidated balance
sheet of the Guarantor; provided, further that prior to the Spin
Distributions, Consolidated Total Debt shall only include Debt that would be
reflected in the Separation Pro Formas as described in Section 3.04(a)(ii)
and any pro forma financial statements for subsequent
periods as described in the proviso of Section 5.01(b);  provided that if a Permitted
Securitization Transaction is outstanding at such date and is accounted for as
a sale of accounts receivable, chattel paper,

 4
 

general intangibles, or the
like, under GAAP, Consolidated Total Debt determined as aforesaid shall be
adjusted to include the additional Debt, determined on a consolidated basis as
of such date, which would have been outstanding at such date had such Permitted
Securitization Transaction been accounted for as a borrowing at such date; provided, further,
that Consolidated Total Debt shall not include Debt of a joint venture,
partnership or similar entity which is Guaranteed by the Guarantor or a
Consolidated Subsidiary by virtue of the joint venture, partnership or similar
arrangement with respect to such entity or by operation of applicable law (and
not otherwise) except to the extent that the aggregate outstanding principal
amount of such excluded Debt at such date exceeds $50,000,000; and provided,
further, that Consolidated Total Debt shall not include Cross
Guarantees.

“Credit Agreement” means the Five-Year Senior
Credit Agreement (Fire & Safety and Engineered Products Businesses) dated
as of April 25, 2007 among the Borrower, the Guarantor, the lenders party
thereto, and Citibank, N.A., as Administrative Agent.

“Credit Agreement (Electronics)” means the
Five-Year Senior Credit Agreement (Electronics Businesses) dated as of
April 25, 2007 among the E Borrower, the Guarantor, the E Guarantor, the
lenders party thereto, and Bank of America, N.A., as Administrative Agent.

“Credit Agreement (Healthcare)” means the
Five-Year Senior Credit Agreement (Healthcare Businesses) dated as of
April 25, 2007 among the H Borrower, the Guarantor, the H Guarantor, the
lenders party thereto, and Citibank, N.A., as Administrative Agent.

“Credit Exposure” means, with respect to any
Lender at any time (i) the outstanding principal amount of such Lender’s
Loans at such time plus (ii) such Lender’s pro rata share of the L/C
Obligations at such time after giving effect to any L/C Credit Extension
occurring on such date and any other changes in the aggregate amount of the L/C
Obligations as of such date, including as a result of any reimbursements of
outstanding unpaid drawings under any Letter of Credit or any increases or
reductions in the maximum amount available for drawing under any Letter of
Credit taking effect on such date.

“Cross Guarantees” means the Guarantees by the
Guarantor or its Subsidiaries of obligations of the H Borrower or the E
Borrower or their respective subsidiaries that are listed on
Schedule 5.09, to the extent that the direct obligor with respect to the
obligations covered by such Guarantee guarantees or is otherwise obligated to
the payments of such guaranteed obligations for the benefit of the Guarantor or
such Subsidiary.

“Debt” of any Person means, at any date,
without duplication, (a) the principal of all obligations of such Person
for borrowed money; (b) the principal of all obligations of such Person
evidenced by bonds, debentures, notes or similar instruments; (c) all
obligations of such Person in respect of the deferred purchase price of
property or services recorded on the books of such Person (except for
(i) trade and similar accounts payable and accrued expenses,
(ii) employee compensation, deferred compensation and pension obligations,
and other obligations arising from employee benefit programs and agreements or
other similar employment arrangements, (iii) obligations in respect of customer
advances received and (iv) obligations in connection with earnout and
holdback agreements, in each case in the ordinary course of

 5
 

business); (d) any obligation of such Person to
reimburse the issuer of any letter of credit, performance bond, performance
guaranty or bank guaranty issued for the account of such Person upon which, and
only to the extent that, a drawing has been made (or such reimbursement
obligation is otherwise not contingent) and such non-contingent obligation is
not reimbursed within five Business Days; (e) the net capitalized amount
of all obligations of such person as lessee which are capitalized on the books
of such Person in accordance with GAAP; (f) all Debt of others secured by
any Lien on property of such Person, whether or not the Debt secured thereby
has been assumed, but only to the extent of the lesser of the face amount of
the obligation or the fair market value of the assets so subject to the Lien;
and (g) all Guarantees by such Person of Debt of others (except the Guarantor
or any Subsidiary); provided that the term “Debt” shall not
include:

(A)          Intercompany Debt (except that, for
the purposes of Sections 5.10 and 5.11, Debt shall include Intercompany
Debt); or

(B)           obligations in respect of trade
letters of credit or bank guaranties supporting trade and similar accounts
payable arising in the ordinary course of business, or

(C)           Nonrecourse Debt.

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

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

“Default Rate” means a rate per annum equal to
(i) in the case of overdue principal of any Loan, 2% plus the rate
otherwise applicable to such Loan or (ii) in the case of any other amount, 2%
plus the rate applicable to ABR Loans.

“Designated Officer” means the chief executive
officer, president, chief financial officer or treasurer of Tyco International
Management Company.

“dollars” or “$” refers to lawful money
of the United States of America.

“E Borrower” means Tyco Electronics Group S.A.,
a Luxembourg company.

“E Guarantor” means Tyco Electronics Ltd., a
Bermuda company.

“Effective Date” means the date on which the
conditions specified in Section 4.01 are satisfied or waived.

 6
 

“Electronics Spin Distribution” has the meaning
set forth in the definition of “Separation Transactions”.

“Environmental Laws” means all laws, rules,
regulations, codes, ordinances, orders, decrees, judgments, injunctions,
notices or binding agreements issued, promulgated or entered into by any
Governmental Authority, relating in any way to the environment, health, safety
or Hazardous Materials.

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

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

“ERISA Affiliate” means any Person, trade or
business (whether or not incorporated) that, together with the Borrower, is
treated as a single employer under Section 414(b), (c), (m) or
(o) of the Code or Section 4001(b)(3) of ERISA.

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

“Eurodollar Reserve Percentage” in respect of
any Lender and for any day during any Interest Period, the reserve percentage
(expressed as a decimal) in effect on such day and applicable to such Lender
under Regulation D promulgated by the Board of Governors of the

 7
 

Federal Reserve System for determining such Lender’s
reserve requirement (including any emergency, supplemental or other marginal
reserve requirement) with respect to “Eurocurrency liabilities”, as in effect
from time to time (“FRB Regulation D”).

“Eurodollar”, when used in reference to any
Loan or Borrowing, means that such Loan, or the Loans  comprising such
Borrowing, bear interest at a rate per annum equal to the applicable LIBO Rate
plus the Applicable Margin.

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

“Excluded Taxes” means, with respect to the
Administrative Agent, the L/C Issuer any Lender or any other recipient of any
payment to be made by or on account of any obligation of any Obligor hereunder,
(a) income or franchise taxes imposed on (or measured by) its net income (other
than Taxes withheld at the source) by the United States of America, or by the
jurisdiction under the laws of which such recipient is organized or in which
its principal office is located or, in the case of any Lender, in which its
applicable lending office is located, (b) any branch profits taxes imposed by
the United States of America or any similar tax imposed by any other
jurisdiction in which the Borrower is located and (c) in the case of a Foreign
Lender (other than an assignee pursuant to a request by the Borrower under
Section 10.04(e)), any United States withholding tax that is imposed on
amounts payable to such Foreign Lender at the time such Foreign Lender becomes
a party to this Agreement (or designates a new lending office) or is
attributable to such Foreign Lender’s failure to comply with
Section 9.05(e) (except to the extent such failure is attributable to a
Change in Law, except to the extent that such Foreign Lender (or its assignor,
if any) was entitled, at the time of designation of a new lending office (or
assignment), to receive additional amounts from either Obligor with respect to
such withholding tax pursuant to Section 9.05(a).

“Existing Indenture Covered Default” means any
default or event of default under any of the indentures or notes evidencing the
Existing Indenture Debt (i) that results solely from the Separation
Transactions and (ii) for which borrowings would be available (and at the time
continue to be available) under the Bridge Loan Agreements to pay in full (a)
such Existing Indenture Debt if such Existing Indenture Debt were accelerated
as a result of such default and (b) any other Existing Indenture Debt which could
be accelerated as a result of such default.

“Existing Indenture Debt” means the Debt of
TIGSA, the Borrower, the Guarantor and Subsidiaries of the Guarantor, which
Debt is outstanding on the date of this Agreement and is more particularly
described on Schedule A, which, among other things, sets forth the
aggregate amount of each series or tranche of such Debt.

“Existing Letters of Credit” has the meaning
assigned to such term in Section 2.02(a).

“Facility Fee” has the meaning assigned to such
term in Section 2.07(a).

“Federal Funds Effective Rate” means, for any
day, 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 on the next succeeding Business Day by the Federal Reserve Bank of
New York, or, if such rate is not so published for any day that is a Business
Day, the

 8
 

average of the quotations for such day for such
transactions received by the Administrative Agent from three Federal funds brokers
of recognized standing selected by it.

“Fitch” means Fitch Investor’s Service, Inc.

“Fitch Rating” means, at any time, the rating
published by Fitch of the Borrower’s Index Debt.

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

“Form-10s” means (i) the Form 10 filed by
the H Guarantor with the SEC on January 18, 2007, as amended by the
amendment thereto filed with the SEC on April 20, 2007 and (ii) the
Form 10 filed by the E Guarantor with the SEC on January 18, 2007, as
amended by the amendment thereto filed with the SEC on April 20, 2007.

“Funded Debt” means any Debt described in
clause (a) or (b) of the definition of Debt (for the avoidance of doubt
not including items carved out of the definition of Debt pursuant to the
proviso to such definition).

“GAAP” means generally accepted accounting
principles as in effect from time to time in the United States of America.

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

“Granting Lender” has
the meaning assigned to such term in Section 10.04(g).

“Guarantee” of or by any Person (the “guarantor”)
means any obligation, contingent or otherwise, of the guarantor guaranteeing or
having the economic effect of guaranteeing any Debt or other obligation of any
other Person (the “primary obligor”) in any manner, whether directly or
indirectly, and including any obligation of the guarantor, direct or indirect,
(a) to purchase or pay (or advance or supply funds for the purchase or payment of)
such Debt or other obligation or to purchase (or to advance or supply funds for
the purchase of) any security for the payment thereof, (b) to purchase or lease
property, securities or services for the purpose of assuring the owner of such
Debt or other obligation of the payment thereof, (c) to maintain working
capital, equity capital or any other financial statement condition or liquidity
of the primary obligor so as to enable the primary obligor to pay such Debt or
other obligation or (d) as an account party in respect of any letter of credit
or letter of guaranty issued to support such Debt or obligation; provided,
that the term Guarantee shall not include endorsements for collection or
deposit in the ordinary course of business.

“Guarantor” has the meaning set forth in the
preamble hereto.

 9
 

“H Borrower” means Covidien International
Finance S.A., a Luxembourg company.

“H Guarantor” means Covidien Ltd., a Bermuda
company.

“Hazardous Materials” means all explosive or
radioactive substances or wastes and all hazardous or toxic substances, wastes
or other pollutants, including petroleum or petroleum distillates, asbestos or
asbestos containing materials, polychlorinated biphenyls, radon gas, infectious
or medical wastes.

“Healthcare Spin Distribution” has the meaning
set forth in the definition of “Separation Transactions”.

“Indemnified Taxes” means Taxes other than
Excluded Taxes.

“Index Debt” means senior, unsecured, long-term
indebtedness for borrowed money of the Borrower that is not guaranteed by any
other Person other than the Guarantor or subject to any other credit
enhancement.

“Index Debt Rating” means the S&P Rating,
the Moody’s Rating and the Fitch Rating.

“Index Debt Rating Change” means a change in
the S&P Rating, the Moody’s Rating or the Fitch Rating that results in a
change from one Index Debt Rating category to another on the Pricing Grid in
accordance with the provisions of Schedule 1.01, each Index Debt Rating
Change to be deemed to take effect on the date on which the relevant change in
rating is first publicly announced by S&P, Moody’s or Fitch, as the case
may be.

“Intangible Assets” means, at any date, the
amount (if any) stated under the heading “Goodwill and Other Intangible assets,
net” or under any other heading relating to intangible assets separately
listed, in each case, on the face of a balance sheet of the Guarantor prepared
on a Consolidated basis as of such date.

“Intercompany Debt” means (i) indebtedness
of the Guarantor owed to a Subsidiary and (ii) indebtedness of a
Subsidiary owed to the Guarantor or another Subsidiary.

“Interest Payment Date” means (a) with respect
to any ABR Loan, the last Business Day of each March, June, September and
December and (b) with respect to any Eurodollar Loan, the last day of the
Interest Period applicable to the Borrowing of which such Loan is a part; provided
that, if an Interest Period for a Eurodollar Borrowing is of more than three
months’ duration, each day within such Interest Period that occurs at intervals
of three months’ duration after the first day of such Interest Period shall
also be an Interest Payment Date.

“Interest Period” means with respect to any
Eurodollar Borrowing, the period commencing on the date of such Borrowing and
ending on the date that is one, two, three or six months thereafter, as the
Borrower may elect, upon notice received by the Administrative Agent not later
than 11:00 a.m. (New York City time) on the third Business Day prior to the
first day of such Interest Period, or such other period as requested by the Borrower
and agreed to by all the Lenders; provided, that

 

 10

 

(i)          if any Interest Period would end on a
day other than a Business Day, such Interest Period shall be extended to the
next succeeding Business Day unless 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 of one or more
whole months that commences on the last Business Day of a calendar month (or on
a day for which there is no numerically corresponding day in the last calendar
month of such Interest Period) shall end on the last Business Day of the last
calendar month of such Interest Period; and

(iii)        the Borrower may not select any Interest
Period that may end after the Maturity Date.

For purposes
hereof, the date of a Borrowing initially shall be the date on which such
Borrowing is made and thereafter shall be the effective date of the most recent
conversion or continuation of such Borrowing.

“L/C Advance”
has the meaning specified in Section 2.02(f).

“L/C Credit Extension” means the issuance by the L/C Issuer of a Letter of Credit
(including the deemed issuance of the Existing Letters of Credit on the
Effective Date), or any extension of the expiry date thereof, or any renewal or
increase of the amount thereof.

“L/C Disbursement” means a payment made by the
L/C Issuer pursuant to a Letter of Credit.

“L/C Issuer”
has the meaning specified in the preamble hereto.

“L/C Obligations” means, at any time, the aggregate available amount of the
Letters of Credit plus the aggregate outstanding principal amount of all
L/C Advances.

“Lenders” means the Persons listed on Schedule 2.01 and any
other Person that shall have become a party hereto pursuant to an Assignment
and Assumption, other than any such Person that ceases to be a party hereto pursuant
to an Assignment and Assumption.

“Letter of Credit” means any letter of credit issued pursuant to
this Agreement (including, without limitation, the Existing Letters of Credit).

“Letter
of Credit Application”
means, as applicable, an application for (i) the issuance of a Letter of Credit
or (ii) the amendment of a Letter of Credit , in each case in a form acceptable
to the L/C Issuer and executed and delivered by the Borrower (and, if
requesting the issuance of a Letter of Credit for a Subsidiary of the Borrower
or the Guarantor, such Subsidiary).

“LIBO Rate” means,
with respect to any Eurodollar Borrowing for any Interest Period, the British
Bankers Association London Interbank Offered Rate (“BBA LIBOR”), as it
is published by Reuters or any successor to or substitute for such service,
providing rate quotations of BBA LIBOR, as determined by the Administrative
Agent from time to time for purposes of 

 11
 

providing quotations of
interest rates applicable to dollar deposits in the London interbank market) at
approximately 11:00 a.m., London time, two Business Days prior to the
commencement of such Interest Period, as the rate for dollar deposits with a
maturity comparable to such Interest Period. 
In the event that such rate is not available at such time for any
reason, then the “LIBO Rate” with respect to such Eurodollar Borrowing
for such Interest Period shall be the rate at which dollar deposits of
$10,000,000 and for a maturity comparable to such Interest Period are offered
by the principal London office of the Administrative Agent in immediately
available funds in the London interbank market at approximately 11:00 a.m.,
London time, two Business Days prior to the commencement of such Interest
Period.

“Lien” means, with respect to any asset, any
mortgage, deed of trust, lien, pledge, hypothecation, encumbrance, charge or
security interest in, on or of such asset, including the interest of a vendor
or a lessor under any conditional sale agreement, capital lease or title
retention agreement.

“Loan Documents” means this Agreement, each
Note (if any), each Letter of Credit Application and each Subsidiary Guaranty
(if any).

“Loans” has the meaning assigned to such term
in Section 2.01(a).

“Material Adverse Effect” means a material
adverse effect on (a) the Consolidated financial condition, business or
operations of the Guarantor and its Subsidiaries taken as a whole, (b) the
ability of the Obligors to perform their obligations under the Loan Documents
or (c) the rights and remedies of the Administrative Agent and the Lenders
under the Loan Documents.

“Material Debt” means Debt (other than Loans or
other Debt under this Agreement) of any one or more of the Guarantor and its
Subsidiaries in an aggregate principal amount exceeding $75,000,000.

“Maturity Date” means December 15, 2007.

“Moody’s” means Moody’s Investors Service, Inc.
and any successor to its business of rating debt securities.

“Moody’s Rating” means, at any time, the rating
published by Moody’s of the Borrower’s Index Debt.

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

“Nonrecourse Debt” means, at any time, all Debt
of Subsidiaries (and all other Persons which are consolidated on the Guarantor’s
financial statements in accordance with GAAP (such Subsidiaries or other
Persons a “Consolidated Person”)) of the Guarantor outstanding at such
time incurred on terms that recourse may be had to such Consolidated Person
only by enforcing the lender’s default remedies with respect to specific assets
which constitute collateral security for such Debt and not by way of action
against such Consolidated Person (nor against the Guarantor or such other
Consolidated Person of the Guarantor) as a general obligor in respect of 

 12
 

such Debt (subject to, for the avoidance of doubt, customary
exceptions contained in non-recourse financings to the non-recourse nature of
the obligations thereunder).

“Nonrenewal Notice Date” has the meaning
assigned to such term in Section 2.02(d)(i).

“Note” means a promissory note substantially in
the form of Exhibit A made by the Borrower in favor of a Lender evidencing
Loans made by such Lender, to the extent requested by such Lender pursuant to
Section 2.09(a).

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

“Obligors” means the Borrower and the
Guarantor.

“Other Credit Agreements” means the Credit
Agreement (Electronics) and the Credit Agreement (Healthcare).

“Other Taxes” means any and all present or
future, stamp or documentary taxes or any other excise or property taxes,
charges or similar levies (together with any addition to tax, penalty, fine or
interest thereon) arising from any payment made under any Loan Document or from
the execution, delivery or enforcement of, or otherwise with respect to, any
Loan Document.

“Participant” has the meaning assigned to such
term in Section 10.04.

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

“Permitted Acquired Debt” means Debt of a
Person that exists at the time such Person becomes a Subsidiary or at the time
the Guarantor or a Subsidiary acquires all or substantially all of the assets
of such Person if such Debt is assumed by the Guarantor or such Subsidiary and
was not created in contemplation of any such event (“Acquired Debt”) and
any Refinancing thereof; provided if such Acquired Debt is Refinanced,
it shall constitute Permitted Acquired Debt only if the Borrower is the obligor
thereunder.

“Permitted
Securitization Transaction”  means any sale
or sales of any accounts receivable, general intangibles, chattel paper or
other financial assets and related rights and assets of the Guarantor and/or
any of its Subsidiaries, and financing secured by the assets so sold, pursuant
to which the Guarantor and its Subsidiaries realize aggregate net proceeds of
not more than $1,000,000,000 including, without limitation, any revolving
purchase(s) of such assets 

 13
 

where the maximum aggregate uncollected purchase price
(exclusive of any deferred purchase price) therefor does not exceed
$1,000,000,000.

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

“Plan” means any employee pension benefit plan
(other than a Multiemployer Plan) subject to the provisions of Title IV of
ERISA or Section 412 of the Code or Section 302 of ERISA, and in respect
of which the Borrower or any ERISA Affiliate is (or, if such plan were
terminated, would under Section 4069 of ERISA be deemed to be) an “employer”
as defined in Section 3(5) of ERISA.

“Platform” has the meaning assigned to such
term in Section 10.15.

“Preferred Stock” means any preferred and/or
redeemable capital stock of the Guarantor or any Subsidiary, as the case may
be, that, by its terms (or by the terms of any security into which it is
convertible or for which it is exchangeable at the option of the holder
thereof), or upon the happening of any event, matures or is mandatorily
redeemable, pursuant to a sinking fund obligation or otherwise, or redeemable
at the option of the holder, in whole or in part, on or prior to the Maturity
Date.

“Pricing Grid” means the Pricing Grid and the
conventions for determining pricing as set forth on Schedule 1.01.

“Rate Notice” has the meaning specified in
Section 2.03(a)(ii).

“Refinancing” means, with respect to any
financing, any instrument or agreement amending, restating, supplementing,
extending, renewing, refunding, refinancing, replacing or otherwise modifying,
in whole or in part, the documents governing such financing (and “Refinance”
shall have a correlative meaning).

“Register” has the meaning assigned to such
term in Section 10.04.

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

“Reportable Action” means any action, suit or
proceeding or investigation before any court, arbitrator or other governmental
body against the Guarantor or any of its Subsidiaries or any ERISA Event, in
each case in which there is a reasonable possibility of an adverse determination
that could reasonably be expected to have a Material Adverse Effect.

“Required Lenders” means, at any time, Lenders
(not including the Borrower or any of its Affiliates) having aggregate
Applicable Percentages in excess of 50% at such time.

“Responsible Officer” means any of the
following:  (i) the Chief Executive
Officer, President, Vice President and Chief Financial Officer, Treasurer or
Secretary of the Guarantor or 

 14
 

(ii) the Chief Executive Officer, President, Vice
President and Chief Financial Officer, Treasurer or Secretary of the Borrower
or a Managing Director of the Borrower.

“S&P” means Standard & Poor’s Ratings
Services, a division of The McGraw-Hill Companies, Inc. and any successor to
its business of rating debt securities.

“S&P Rating” means, at any time, the rating
published by S&P of the Borrower’s Index Debt.

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

“Separation Pro Formas” has the meaning
assigned to such term in Section 3.04(a).

“Separation Transactions” means the series of
transactions pursuant to which the assets, liabilities and businesses owned,
directly or indirectly, by the Guarantor and TIGSA are being allocated among
the T Guarantor and its Subsidiaries (including the Borrower), the
E Guarantor and its Subsidiaries (including the E Borrower) and the
H Guarantor and its Subsidiaries (including the H Borrower).  The steps of the Separation Transactions will
include, among others, (i) the contribution of the assets, liabilities and
businesses of TIGSA to the H Borrower (in the case of the healthcare businesses
of TIGSA and assets and liabilities relating thereto), the E Borrower (in the
case of the electronics businesses of TIGSA and assets and liabilities relating
thereto) and the Borrower (in the case of the fire & security and
engineered products businesses of TIGSA and assets and liabilities relating
thereto) (such transactions, the “TIGSA Separation”), and the
liquidation of TIGSA and liquidating distribution in connection therewith of
the shares of the H Guarantor, the E Guarantor and the Borrower to the
Guarantor; and (ii) after TIGSA Separation, the distributions by the Guarantor
to its shareholders of the shares of (x) the H Guarantor (the “Healthcare
Spin Distribution”) and the E Guarantor (the “Electronics Spin
Distribution”; and together with the Healthcare Spin Distribution, the “Spin
Distributions”), with the Guarantor to remain the direct parent of the
Borrower.

“Significant Subsidiary” means, at any date,
any Subsidiary which, including its subsidiaries, meets any of the following
conditions:

(i)          the proportionate share attributable
to such Subsidiary of the total assets of the Guarantor (after intercompany
eliminations) exceeds 15% of the total assets of the Guarantor, determined on a
Consolidated basis as of the end of the most recently completed fiscal year; or

(ii)         the Guarantor’s and its Subsidiaries’
equity in the income of such Subsidiary from continuing operations before
income taxes, extraordinary items and cumulative effect of a change in
accounting principles exceeds 15% of Consolidated income of the Guarantor from
continuing operations before income taxes, any loss on the retirement of debt,
extraordinary items, cumulative effect of a change in accounting principles,
and before any impairment charges, determined for the most recently completed
fiscal year.

 15
 

For the
avoidance of doubt, the Borrower shall at all times be deemed a “Significant
Subsidiary”.

“SPC” has the meaning
assigned to such term in Section 10.04(g).

 “Spin
Distributions” has the meaning set forth in the definition of “Separation
Transactions”.

“Spin-off Agreements” means (a) the Separation
and Distribution Agreement to be entered into among the T Guarantor, the H
Guarantor and the E Guarantor and (b) the Tax Sharing Agreement to be entered
into among the T Guarantor, the H Guarantor and the E Guarantor, of which final
forms shall be publicly filed with the SEC.

“Stock” means, with respect to any Person, any
capital stock or equity securities of or other ownership interests in such
Person.

“Stock Equivalents” means, with respect to any
Person, options, warrants, calls or other rights entered into or issued by such
Person to acquire any Stock of, or securities convertible into or exchangeable
for Stock of, such Person.

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

“Subsidiary” means any subsidiary of the
Guarantor.

“Subsidiary Guarantor” means each Subsidiary
that has executed a Subsidiary Guaranty pursuant to Section 5.12.

“Subsidiary Guaranty” means a guaranty entered
into by a Subsidiary in substantially the form of Exhibit C, with any such
modifications to such form as may be necessary or advisable and customary under
the local law of the jurisdiction of organization of the relevant Subsidiary,
in the judgment of the Obligors.

“T Guarantor” means the Guarantor.

“T Subsidiary” means any subsidiary of the
Borrower.

“Taxes” means any and all present or future
taxes, levies, imposts, duties, deductions, charges or withholdings imposed or
asserted by any Governmental Authority, together with any addition to tax,
penalty, fine or interest thereon.

“TIGSA” means Tyco International Group S.A.

 16
 

“TIGSA Separation” has the meaning set forth in
the definition of “Separation Transactions”.

 “Transactions”
means the execution, delivery and performance by the Obligors of this Agreement
and the other Loan Documents.

“Type”, when used in reference to any Loan or
Borrowing, refers to whether the rate of interest on such Loan, or on the Loans
comprising such Borrowing, is determined by reference to the LIBO Rate or the
Alternate Base Rate.

“UCP” means Uniform Customs and Practice
for Documentary Letter of Credits, 1993 Revision, International Chamber of
Commerce Publication No. 500.

“Wholly-Owned Consolidated Subsidiary” means
any Consolidated Subsidiary all of the shares of capital stock or other
ownership interests of which (except directors’ qualifying shares and
investments by foreign nationals mandated by applicable law) are at the time
beneficially owned, directly or indirectly, by the Guarantor.

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

Section 1.02         Classification of Loans and Borrowings.  For purposes of this Agreement and the other
Loan Documents, Loans or Borrowings may be classified and referred to by Type
(e.g., a “Eurodollar Loan” or an “ABR Borrowing”).

Section 1.03         Terms Generally.  With
reference to this Agreement and each other Loan Document, unless otherwise
specified herein or in such other Loan Document:

The
definitions of terms herein and therein shall apply equally to the singular and
plural forms of the terms defined. 
Whenever the context may require, any pronoun shall include the
corresponding masculine, feminine and neuter forms.  The words “include”, “includes”
and “including” shall be deemed to be followed by the phrase “without
limitation”.  The word “will”
shall be construed to have the same meaning and effect as the word “shall”.  Unless the context requires otherwise (a) any
definition of or reference to any agreement, instrument or other document
herein shall be construed as referring to such agreement, instrument or other
document as from time to time amended, supplemented or otherwise modified
(subject to any restrictions on such amendments, supplements or modifications
set forth herein), (b) any reference herein to any Person shall be construed to
include such Person’s successors and assigns, (c) the words “herein”, “hereof”
and “hereunder”, and words of similar import, shall be construed to
refer to this Agreement in its entirety and not to any particular provision
hereof, (d) all references in a Loan Document to Articles, Sections, Exhibits
and Schedules shall be construed to refer to Articles and Sections of, and
Exhibits and Schedules to, the Loan Document in which such references appear
and (e) the words “asset” and “property” shall be construed to have
the same meaning and effect and to refer to any and all tangible and intangible
assets and properties, including cash, securities, accounts and contract
rights.

 17
 

 

Section 1.04         Accounting
Terms; GAAP. 
Except as otherwise expressly provided herein, all terms of an
accounting or financial nature shall be construed in accordance with GAAP, as
in effect from time to time; provided that, if the Borrower notifies the
Administrative Agent that the Borrower requests an amendment to any provision
hereof to eliminate the effect of any change occurring after the date hereof in
GAAP or in the application thereof on the operation of such provision,
regardless of whether any such notice is given before or after such change in
GAAP or in the application thereof, then (i) the Administrative Agent, the
Lenders and the Borrower shall negotiate in good faith to amend such provision
to preserve the original intent thereof in light of such change in GAAP
(subject to the approval of the Required Lenders) and (ii) such provision
shall be interpreted on the basis of GAAP as in effect and applied immediately
before such change shall have become effective until such notice shall have
been withdrawn or such provision amended in accordance herewith.

ARTICLE II

The
Credits

Section 2.01         Loans.

(a)           Each Lender severally agrees, on the terms and conditions set
forth in this Agreement, to make loans to the Borrower in Dollars (each, a “Loan”),
from time to time on any Business Day during the Availability Period, in an
aggregate principal amount at any time outstanding not to exceed the amount of
such Lender’s Commitment; provided that, as of the date of and
immediately after giving effect to any Borrowing, the total Credit Exposure
shall not exceed the total Commitments.  If
a Lender defaults in its obligation hereunder to make a Loan during the
Availability Period, such obligation of the defaulting Lender shall survive the
termination of such period.

(b)           The proceeds of each Loan shall be used solely for the purpose of
reimbursing the L/C Issuer in respect of one or more L/C Advances by the L/C
Issuer as provided in Section 2.02(c).

(c)           Loans may be ABR Loans or Eurodollar Loans, as further provided
herein.

Section 2.02         Letters
of Credit.

(a)           Existing Letters of Credit.  The parties hereto agree, on the terms and conditions set forth in
this Agreement that the Letters of Credits identified on Schedule B (the “Existing
Letters of Credit”) shall be deemed to be Letters of Credit issued
hereunder from and after the Effective Date.

(b)           General.  Subject to the terms and conditions set forth
herein, the Borrower may request the issuance of Letters of Credit for its own
account or those of any Subsidiaries of the Borrower or, so long as such
Subsidiary will not become a Subsidiary of the H Guarantor or the E Guarantor
after the Spin Distribution, the Guarantor in a form reasonably acceptable to
the Administrative Agent and, at any time and from time to time during the 

 18
 

Availability Period.  In the event of any inconsistency between the
terms and conditions of this Agreement and the terms and conditions of any
Letter of Credit Application or other agreement submitted by the Borrower to,
or entered into by the Borrower with, the L/C Issuer relating to any Letter of
Credit, the terms and conditions of this Agreement shall control.

(c)           Notice of Issuance, Amendment,
Renewal, Extension; Certain Conditions.  To request the issuance
of a Letter of Credit (or the amendment, renewal or extension of an outstanding
Letter of Credit), the Borrower shall hand deliver or telecopy (or transmit
electronic mail, arrangements for doing so have been approved by the L/C
Issuer) to the L/C Issuer and the Administrative Agent (at least two Business
Days in advance of the requested date of issuance, amendment, renewal or extension)
a Letter of Credit Application requesting the issuance of a Letter of Credit,
or identifying the Letter of Credit to be amended, renewed or extended, and
specifying the date of issuance, amendment, renewal or extension (which shall
be Business Day), the date on which such Letter of Credit is to expire (which
shall comply with paragraph (d) of this Section), the amount of such Letter of
Credit, the name and address of the beneficiary thereof and such other
information as shall be necessary to prepare, amend, renew or extend such
Letter of Credit.  A Letter of Credit
shall be issued, amended, renewed or extended only if (and upon issuance,
amendment, renewal or extension of each Letter of Credit the Borrower shall be
deemed to represent and warrant that), after giving effect to such issuance,
amendment, renewal or extension the total Credit Exposure shall not exceed the
total Commitments.

(d)           Expiration Date; Collateral.

(i)          Expiration and Renewal.  Each Letter of Credit shall expire at or
prior to the close of business on the date that is one year after the date of
the issuance of such Letter of Credit (or, in the case of any renewal or
extension thereof, one year after such renewal or extension).  If the Borrower so requests, the L/C Issuer
may, with the consent of all the Lenders, in their sole and absolute
discretion, agree to issue a Letter of Credit that has automatic renewal
provisions (each, an “Auto-Renewal Letter of Credit”); provided
that any such Auto-Renewal Letter of Credit must permit the L/C Issuer to
prevent any such renewal at least once in each one year period (commencing with
the date of issuance of such Letter of Credit) by giving prior notice to the
beneficiary thereof not later than a day (the “Nonrenewal Notice Date”)
in each such one year period to be agreed upon at the time such Letter of
Credit is issued.  Unless otherwise
directed by the L/C Issuer, the Borrower shall not be required to make a
specific request to the L/C Issuer for any such renewal.  Once an Auto-Renewal Letter of Credit has
been issued, the Lenders shall be deemed to have authorized (but may not
require) the L/C Issuer to permit the renewal of such Letter of Credit at any
time to an expiry date not later than one year after such renewal; provided,
however, that the L/C Issuer shall not permit any such renewal if (A)
the L/C Issuer has determined that it would have no obligation at such time to
issue such Letter of Credit in its renewed form under the terms hereof, or (B)
it has received notice (which may be by telephone or in writing) on or before
the day that is five Business Days before the Nonrenewal Notice Date (1) from
the Administrative Agent that the Required Lenders have elected not to permit
such renewal or (2) from the Administrative Agent, any Lender or the Borrower
that one or more of the applicable conditions specified in Section 4.02 is
not then satisfied.

 19
 

 

(ii)         Collateral.  On or prior to the date that is five Business
Days prior to the Maturity Date, the Borrower shall Collateralize any Letter of
Credit with an expiration date occurring after the Maturity Date.  “Collateralize” shall mean to secure
by cash collateral arrangements and/or backstop letters of credit in an
aggregate amount equal to the aggregate stated amount of all Letters of Credit
outstanding on such date and otherwise on terms reasonably satisfactory to the
L/C Issuer.

(e)           Participations. 
By the issuance of a Letter of Credit (or an amendment to a Letter of
Credit increasing the amount thereof) and without any further action on the part
of the L/C Issuer or the Lenders, the L/C Issuer hereby grants to each Lender,
and each Lender hereby acquires from the L/C Issuer, a participation in such
Letter of Credit equal to such Lender’s Applicable Percentage of the aggregate
amount available to be drawn under such Letter of Credit.  In consideration and in furtherance of the
foregoing, each Lender hereby absolutely and unconditionally agrees to pay to
the Administrative Agent, for the account of the L/C Issuer, such Lender’s
Applicable Percentage of each L/C Disbursement made by the L/C Issuer and not
reimbursed by the Borrower on the date due as provided in paragraph (e) of this
Section, or of any reimbursement payment required to be refunded to the
Borrower for any reason.  Each Lender
acknowledges and agrees that its obligation to acquire participations pursuant
to this paragraph in respect of Letter of Credit is absolute and unconditional
and shall not be affected by any circumstance whatsoever, including any
amendment, renewal or extension of any Letter of Credit or the occurrence and
continuance of a Default or reduction or termination of the Commitments, and
that each such payment shall be made without any offset, abatement, withholding
or reduction whatsoever.

(f)            Drawings and Reimbursements;
Funding of Participations.

(i)          (I) 
The L/C Issuer shall, subject to the terms and conditions hereof, honor
and pay each drawing request made in substantial compliance with a Letter of
Credit, on (x) the Business Day on which such drawing request is delivered to
it, provided that such drawing request is delivered not later than 1:00
P.M. (New York City time) on such Business Day, or (y) the first Business Day
next succeeding such drawing request is delivered to it if delivered after such
time.  Each such L/C Disbursement by the L/C Issuer under the Letter
of Credit shall constitute for all purposes of this Agreement the making of an
advance by it to the Borrower in the amount of such payment (an “L/C Advance”),
which shall be due and payable by the Borrower as herein provided.

(II)        Upon written
demand by the L/C Issuer, with a copy of such demand to the Administrative
Agent, each Lender shall pay to the Administrative Agent for the account of the
L/C Issuer an amount equal to such Lender’s Applicable Percentage of the amount
of such L/C Advance at the Administrative Agent’s Office, in Dollars and same
day funds.  Each amount so paid by a
Lender shall constitute for all purposes of this Agreement the making by such
Lender of a Loan by such Lender to the Borrower in such amount.

(III)       At the time of
the making of an L/C Advance, each Lender shall automatically be deemed to have
made a Loan hereunder in a principal amount equal to 

 20
 

 

its Applicable Percentage of such L/C Advance (and, in the case of
any Lender that is not the L/C Issuer, such Lender shall forthwith pay to the
L/C Issuer such amount), and (B) such L/C Advance shall automatically be
reduced by such principal amount.

(IV)       Each Lender
acknowledges and agrees that its obligation to make each Loan pursuant to this
paragraph in respect of Letters of Credit is absolute and unconditional and
shall not be affected by any circumstance whatsoever, including any amendment,
renewal or extension of any Letter of Credit, the occurrence and continuance of
a Default, any reduction or termination of the Commitments or any of them, or
any other circumstance whatsoever whether or not similar to any of the
foregoing, and that each such payment shall be made without any offset,
abatement, withholding or reduction whatsoever. 
Promptly after receipt thereof, the Administrative Agent shall transfer
such funds to the L/C Issuer.

(V)        Each Lender agrees
to make each Loan to be made by it hereunder on (y) the Business Day on which
demand therefor is made by the L/C Issuer, provided that notice of such
demand is given not later than 11:00 A.M. (New York City time) on such Business
Day, or (z) the first Business Day next succeeding such demand if notice of
such demand is given after such time, provided  further that in
the case of the L/C Issuer, the provisions of sub-clause (III) above shall
control.

(ii)         If and to the extent that any
Lender shall not have so made the amount of a Loan to be made by it available
to the Administrative Agent, such Lender agrees to pay to the Administrative
Agent forthwith on demand such amount together with interest thereon for each
day from the date of demand by the L/C Issuer until the date such amount is
paid to the Administrative Agent, at the Federal Funds Effective Rate for its
account or the account of the L/C Issuer, as applicable; and if such Lender
shall pay to the Administrative Agent such amount for the account of the L/C
Issuer on any Business Day, such amount so paid in respect of principal shall
constitute a Loan made by such Lender on such Business Day for purposes of this
Agreement, and the outstanding principal amount of the L/C Advance made by the
L/C Issuer shall be reduced by such amount on such Business Day.

(iii)        The Borrower shall pay to the
Administrative Agent for the account of the L/C Issuer interest at the
Alternate Base Rate on the amount of each L/C Advance, for the period from the
date of such L/C Advance until paid in full (whether by the making of Loans by
the Lenders or otherwise), payable from time to time on demand by the L/C
Issuer.

(iv)       The making of an L/C Advance shall
not relieve or otherwise impair the obligation of the Borrower to reimburse the
L/C Issuer for the amount of any payment made by the L/C Issuer under any
Letter of Credit, together with interest as provided herein.

 

 21

 

(g)           Repayment of Participations.

(i)          At any time after the L/C Issuer
has made a payment under the Letter of Credit and has received from any Lender
such Lender’s Loan in respect of such payment in accordance with
Section 2.02(f), if the Administrative Agent receives for the account of
the L/C Issuer any payment in respect of the related unreimbursed drawing under
the Letter of Credit or interest thereon (whether directly from the Borrower or
otherwise), the Administrative Agent will distribute to such Lender its pro
rata share thereof (appropriately adjusted, in the case of interest
payments, to reflect the period of time during which such Lender’s Loan was
outstanding) in Dollars and in the same funds as those received by the
Administrative Agent.

(ii)         If any payment received by the
Administrative Agent for the account of the L/C Issuer pursuant to
Section 2.02(g)(i) is required to be returned under any of the
circumstances described in Section 2.11 (including pursuant to any
settlement entered into by the L/C Issuer in its discretion), each Lender shall
pay to the Administrative Agent for the account of the L/C Issuer its
Applicable Percentage thereof on demand of the Administrative Agent, plus
interest thereon from the date of such demand to the date such amount is
returned by such Lender, at a rate per annum equal to the Federal Funds
Effective Rate from time to time in effect.

(h)           Obligations Absolute; Limitation of
Liability.  (i) The obligation of the Borrower to
reimburse the L/C Issuer for each drawing under any Letter of Credit and to
repay each L/C Advance shall be absolute, unconditional and irrevocable, and
shall be paid strictly in accordance with the terms of this Agreement under all
circumstances, including the following:

(A)          any lack of validity or enforceability of any Letter
of Credit, this Agreement, or any other application, amendment, guaranty,
document, agreement or instrument relating thereto;

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

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

(D)          any payment by the L/C Issuer under any Letter of Credit
against presentation of a sight draft, certificate or other document that does 

 

 22
 

 

not substantially comply
with the terms of any Letter of Credit;

(E)           any payment made by the L/C Issuer under any Letter of
Credit to any Person purporting to be a trustee in bankruptcy,
debtor-in-possession, assignee for the benefit of creditors, liquidator,
receiver or other representative of or successor to the beneficiary or any
transferee of any Letter of Credit, including any arising in connection with
any proceeding under any Debtor Relief Law;

(F)           any change in the time, manner or place of payment of or
in any other term of all or any of the Obligations of the Borrower or the
obligations of any Person that guarantees the Obligations;

(G)           any exchange, release or non-perfection of any property or
other collateral, or release or amendment or waiver of or consent to departure
from the terms of any guarantee or security agreement, for all or any of the
Obligations;

(H)          any action or inaction taken or suffered by the L/C Issuer
or any of its correspondents in connection with the Letter of Credit or any
relevant draft, certificate, other document or property, if taken in good faith
(i.e., honesty in fact in the conduct or transaction concerned, for purposes of
this Section 2.02(h), “Good Faith”) and in conformity with
applicable United States or foreign law or letter of credit practices; or

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

(ii)         Without limiting any other
provision of this Agreement, the L/C Issuer and any of its correspondents:

(A)          may rely upon any oral, telephonic, telegraphic, facsimile,
electronic, written or other communication believed in Good Faith to have been
authorized by the Borrower, whether or not given or signed by an authorized
person;

(B)           shall not be responsible for errors, omissions,
interruptions or delays in transmission or delivery of any message, advice or
document in connection with any Letter of Credit, whether transmitted by
courier, mail, telex, any other telecommunication, or otherwise (whether or not
they be in cipher), or for errors in interpretation of technical terms or in
translation (and the L/C Issuer and its correspondents may transmit Letter of
Credit terms without translating them);

(C)           shall not be responsible for any acts or omissions by or
the 

 

 23
 

 

solvency of the Beneficiary or any other Person
having any role in any transaction underlying any Letter of Credit;

(D)          may accept or pay as complying with the terms and
conditions of any Letter of Credit any document reasonably appearing on its
face (1) substantially to comply with the terms and conditions of the
Letter of Credit or (2) to have been signed, presented or issued after a
change of name of the beneficiary;

(E)           may disregard any discrepancies that do not reduce the
value of the beneficiary’s performance to the Borrower in any transaction
underlying any Letter of Credit;

(F)           may accept as a draft any written or electronic demand or
other request for payment under any Letter of Credit, even if such demand or
other request is not in the form of a negotiable draft;

(G)           shall not be responsible for the effectiveness or
suitability of any Letter of Credit for the Borrower’s purpose, or be regarded
as the drafter of any Letter of Credit regardless of any assistance that the
L/C Issuer may, in its discretion, provide to the Borrower in preparing the
text of any Letter of Credit or any amendments thereto;

(H)          shall not be liable to the Borrower for any consequential
or punitive damages;

(I)            may assert or waive application of UCP Articles 17 (force
majeure) and 45 (hours of presentation) and all other UCP articles primarily
benefiting bank issuers;

(J)            may honor a previously dishonored presentation under any
Letter of Credit, whether pursuant to court order, to settle or compromise any
claim that it wrongfully dishonored, or otherwise, and shall be entitled to
reimbursement to the same extent as if the L/C Issuer had initially honored any
Letter of Credit plus reimbursement of any interest paid by it;

(K)          may honor, upon receipt, any drawing that is payable upon
presentation of a statement advising negotiation or payment (even if such
statement indicates that a draft, certificate or other document is being
separately delivered) and shall not be liable for any failure of any draft,
certificate or document to arrive or to conform in any way with the draft,
certificate or other document referred to in the statement or any underlying
contract;

(L)           is authorized (but shall not be required) to disregard any
non-documentary conditions stated in any Letter of Credit; and

 

 24
 

 

(M)         shall have no duty to determine the proper identity of
anyone appearing in any transfer request, draft, or other document as
transferee, nor shall the L/C Issuer be responsible for the validity or
correctness of any transfer if, at the Borrower’s request, any Letter of Credit
is issued in transferable form.

None of the circumstances described in this Section 2.02(f)
shall place the L/C Issuer or any of its correspondents under any resulting
liability to the Borrower, provided, however, that anything herein
to the contrary notwithstanding, the Borrower may have a claim against the L/C
Issuer, and the L/C Issuer may be liable to the Borrower, to the extent, but
only to the extent, of any direct, as opposed to consequential or exemplary,
damages suffered by the Borrower which the Borrower proves were caused by the
L/C Issuer’s willful misconduct or gross negligence or the L/C Issuer’s willful
failure to pay under any Letter of Credit after the presentation to it by the
beneficiary of a sight draft and certificate(s) strictly complying with the
terms and conditions of a Letter of Credit or payment by such L/C Issuer under
a Letter of Credit where the beneficiary has failed to present a sight draft
and certificate(s) strictly complying with the terms and conditions of a Letter
of Credit.

(i)            Extension and Modifications of
Letter of Credit.  This Agreement shall be binding upon the
Borrower with respect to any extension or modification of any Letter of Credit made at the
Borrower’s request or with the Borrower’s consent.  The Borrower’s Obligations shall not be
reduced or impaired in any way by any agreement by the L/C Issuer and the
Beneficiary extending the L/C Issuer’s time to honor or to give notice of
discrepancies and any such agreement shall be binding upon the Borrower.

(j)            Independence. 
The Borrower acknowledges that the rights and obligations of the L/C
Issuer under the Letter of Credits are independent of the existence,
performance or nonperformance of any contract or arrangement underlying any Letter of Credit, including
contracts or arrangements between the L/C Issuer and the Borrower and between
the Borrower and any
Beneficiary.  The L/C Issuer may, without
incurring any liability to the Borrower or impairing its entitlement to
reimbursement under this Agreement, honor any Letter of Credit despite notice from the Borrower of, and without
any duty to inquire into, any defense to payment or any adverse claims or other
rights against the Beneficiary or any other Person.  The L/C Issuer shall have no duty to request
or require the presentation of any document, including any default certificate,
not required to be presented under the terms and conditions of any Letter of Credit.  The L/C Issuer shall have no duty to seek any
waiver of discrepancies from the Borrower, nor any duty to grant any waiver of
discrepancies, which the Borrower approves or requests.  The L/C Issuer shall have no duty to extend
the expiration date or term of any Letter of Credit or to issue a replacement letter of credit on or
before the expiration date of the Letter of Credit or the end of such term.

(k)           Applicability of UCP and ISP. 
The Borrower agrees that the L/C Issuer may issue Letters of Credit
subject to the ISP or UCP, at the L/C Issuer’s option (subject to the
Beneficiary’s consent), or such later revision thereof in effect at the time of
amendment of the Letter of Credit.  The
UCP or the ISP, as applicable, shall serve, in the absence of proof to the
contrary, as evidence of general banking usage with respect to the subject matter
thereof.   The 

 

 25
 

 

Borrower agrees that for matters not
addressed by the UCP or the ISP, the Letter of Credit shall be subject to and
governed by the law of the State of New York and applicable U.S. Federal
laws.

(l)            L/C Reports. 
The L/C Issuer shall furnish to the Administrative Agent and each Lender
(i) a written report, on the first Business Day of each month, setting
forth a summary of the Outstanding Amount of the L/C Obligations and drawings
under each Letter of Credit during such month and (ii) a written report,
on the first Business Day of each calendar quarter, setting forth the average
daily aggregate Outstanding Amount of the L/C Obligations during the preceding
calendar quarter, each such report to in a form satisfactory to the Administrative
Agent.  The L/C Issuer shall provide the
reports described in clauses (i) and (ii) above to the Borrower upon
the Borrower’s request.  The L/C Issuer
shall also notify the Administrative Agent in writing of any increases or
decreases in the Outstanding Amount of the L/C Obligations within one Business
Day of any such increase or decrease.

Section 2.03         Conversions
and Continuations of Loans.

(a)           (i)  Each Borrowing shall initially consist only of ABR Loans; provided
that the Borrower may thereafter convert ABR Loans into Eurodollar Loans, or
convert Eurodollar Loans into ABR Loans, or continue Eurodollar Rate Loans, as
herein provided.

(ii)         Each conversion of Loans from one
Type to another Type and each continuation of Eurodollar Loans shall be made
upon the Borrower’s irrevocable notice to the Administrative Agent as herein provided (each, a “Rate
Notice”).

(iii)        Each Rate Notice must be received
by the Administrative Agent not later than 11:00 .m. three Business Days
prior to the requested date of any conversion to or continuation of Eurodollar
Loans; provided, however, that if the Borrower wishes to request
Eurodollar Loans having an Interest Period other than one, two, three or six
months in duration as provided in the definition of “Interest Period”, the
applicable Notice must be received by the Administrative Agent not later than
11:00 a.m. four Business Days prior to the requested date of such
conversion or continuation, whereupon the Administrative Agent shall give
prompt notice to the Lenders of such request and determine whether the
requested Interest Period is acceptable to all of them; and not later than
8:00 .m., three Business Days before the requested date of such conversion
or continuation, the Administrative Agent shall notify the Borrower whether or
not the requested Interest Period has been agreed to by all the Lenders.

(iv)       Each conversion to or continuation
of Eurodollar Loans shall be in a principal amount of $1,000,000 or a whole
multiple of $500,000 in excess thereof.

(v)        Each Rate Notice shall specify
(A) whether the Borrower is requesting a conversion of Loans from one Type
to the other Type, or a continuation of Eurodollar Loans, (B) the
requested date of the conversion or continuation, as the case may be (which
shall be a Business Day), (C) the principal amount of Loans to be
converted or continued, (D) the Type of Loans to which existing Loans are
to be converted, and (E) if applicable, the duration of the Interest Period
with respect thereto.  If the Borrower
fails 

 

 26
 

 

to
specify a Type of Loan in a Rate Notice or if the Borrower fails to give a
timely notice requesting a conversion or continuation, then the applicable
Loans shall be converted to ABR Loans, any such automatic conversion to ABR
Loans to be effective as of the last day of the Interest Period then in effect
with respect to the applicable Eurodollar Loans.

(vi)       If the Borrower requests a
conversion to or continuation of Eurodollar Rate Loans in any such Rate Notice,
but fails to specify an Interest Period, it will be deemed to have specified an
Interest Period of one month.

(vii)      Except as otherwise provided
herein, a Eurodollar Rate Loan may be continued or converted only on the last
day of an Interest Period for such Eurodollar Rate Loan.

(viii)     During the existence of a Default,
no Loans may be converted to or continued as Eurodollar Rate Loans without the
consent of the Required Lenders.

(b)           The Administrative Agent shall promptly notify the Borrower and
the Lenders of the interest rate applicable to any Interest Period for
Eurodollar Rate Loans upon determination of such interest rate.  The determination of the Eurodollar Rate by
the Administrative Agent shall be conclusive in the absence of manifest error.  At any time that Base Rate Loans are
outstanding, the Administrative Agent shall notify the Borrower and the Lenders
of any change in Citibank’s base rate used in determining the Base Rate
promptly following the public announcement of such change.

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

Section 2.04         Prepayments.

(a)           (i) The Borrower may, upon notice to
the Administrative Agent, at any time or from time to time voluntarily prepay
the Loans in whole or in part without premium or penalty; provided that
(A) such notice must be received by the Administrative Agent not later
than 11:00 a.m. (1) three Business Days prior to any date of prepayment
of Eurodollar Loans and (2) on the date of prepayment of ABR Loans and the
Fixed Rate Loan; (B) any prepayment of Loans of any Type shall be in a
principal amount of $1,000,000 or a whole multiple of $500,000 in excess
thereof or, if less, the then aggregate outstanding principal amount of the
Loans of such Type; and (C) such prepayment shall be accompanied by the
amounts specified in clause (iii) below.

(ii)         Each such notice shall specify the
date and amount of such prepayment and the Type(s) of Loans to be prepaid.  The Administrative Agent will promptly notify
each Lender of its receipt of each such notice, and of the amount of such
Lender’s pro  rata share of such prepayment.  If such notice is given by the Borrower, the
Borrower shall make such prepayment and the payment amount specified in such
notice shall be due and payable on the date specified therein.

 

 27
 

 

(iii)        Any prepayment of any Loan shall be
accompanied by all accrued interest thereon, together with, in the case of
Eurodollar Loans, any additional amounts required pursuant to
Section 3.05.  Each such prepayment
shall be applied to the Loans of the Lenders in accordance with their
respective Applicable Percentages.

(b)           If for any reason the total Credit Exposure at any time exceeds
the total Commitments then in effect, the Borrower shall immediately prepay
Loans or, if no Loans are then outstanding, take such other action as the
Administrative Agent may direct, as required to cause the total Credit Exposure
to be equal to or less than the total Commitments.

Section 2.05         Repayment
of Loans.  The Borrower agrees to repay in
full to the Administrative Agent for the account of the Lenders, on the
Maturity Date, the aggregate outstanding amount of the Loans on such date.

Section 2.06         Interest.

(a)           Subject to the provisions of subsection (b) below, (i) each
Eurodollar Loan shall bear interest on the outstanding principal amount thereof
for each Interest Period with respect thereto at a rate per annum equal to the
Eurodollar Rate for such Interest Period and, (ii) each ABR Loan shall bear
interest on the outstanding principal amount thereof from the applicable
borrowing date at a rate per annum equal to the Alternate Base Rate from time
to time.

(b)           If any amount payable by the Borrower under any Loan Document is
not paid when due (without regard to any applicable grace periods), whether at
stated maturity, by acceleration, by mandatory prepayment or otherwise, such
amount shall thereafter bear interest at a fluctuating interest rate per annum
at all times equal to the Default Rate to the fullest extent permitted by
applicable Laws; provided that, during the period from the date of an
L/C Advance to the second Business Day thereafter (or if earlier repaid in
full, such earlier date of repayment), such L/C Advance shall bear interest at
the  Alternate Base Rate in accordance
with Section 2.02(c)(iii). 
Furthermore, while any Event of Default exists, the Borrower shall pay
interest on the principal amount of all outstanding Obligations hereunder at
the applicable Default Rate at such time to the fullest extent permitted by
applicable Laws.  Accrued and unpaid
interest on past due amounts (including interest on past due interest) shall be
due and payable upon demand.

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

Section 2.07         Fees.

(a)           Facility Fee. 
The Borrower shall pay to the Administrative Agent, for the account of
each Lender in accordance with its Applicable Percentage, a facility fee at a
rate per annum equal to the applicable rate per annum set forth on the Pricing
Grid times the aggregate 

 

 28
 

 

stated amount
of the Letters of Credit at any time prior to the Maturity Date computed in
accordance with Section 2.08.  The
Facility Fee shall be payable in arrears on June 30, 2007, September 30, 2007 and the Maturity Date (and
if applicable, thereafter, on demand).

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

(c)           Additional Fees. 
The Borrower shall pay to the L/C Issuer for its own account such fees
as may from time to time be separately agreed between the Borrower and the L/C
Issuer.

Section 2.08         Computation of Interest and Fees.  All computations of interest for
ABR Loans when the Alternate Base Rate is determined by Citibank’s “base rate”
shall be made on the basis of a year of 365 or 366 days, as the case may
be, and actual days elapsed.  All
computations of the facility fee under Section 2.07(a) shall be made on
the basis of a 360-day year with 12 months of 30 days each.  All other computations of fees and interest
shall be made on the basis of a 360-day year and actual days elapsed (which
results in more fees or interest, as applicable, being paid than if computed on
the basis of a 365-day year).  Interest
shall accrue on each Loan or L/C Advance for the day on which such Loan or L/C
Advance is made, and shall not accrue on a Loan or L/C Advance, or any portion
thereof, for the day on which such Loan or L/C Advance or such portion is paid.

Section 2.09         Evidence
of Debt.

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

(b)           In addition to the accounts and records referred to in
subsection (a), each Lender and the Administrative Agent shall maintain in
accordance with its usual practice accounts or records evidencing the purchases
and sales by such Lender of participations in the Letter of Credit.  In the event of any conflict between the
accounts and records maintained by the 

 

 29
 

 

Administrative Agent and the accounts and
records of any Lender in respect of such matters, the accounts and records of
the Administrative Agent shall control in the absence of manifest error.

Section 2.10         Termination and
Reduction of Commitments.

(a)           The obligation of the L/C Issuer to make L/C Credit Extensions
hereunder shall automatically terminate upon the earlier occurrence of (i) an
Event of Default and (ii) the date 15 Business Days prior to the
Maturity Date.

(b)           The Commitments of the Lenders shall automatically terminate on
the Maturity Date.

(c)           Any termination of the obligation of the L/C Issuer to
make L/C Credit Extensions or the Commitments shall be permanent.

(d)           If a Lender defaults in its
obligation hereunder to make a Loan at any time prior to or simultaneous with
the termination of its Commitment, such obligation of the defaulting Lender
shall survive such termination.

(e)           The Borrower may at any time
terminate, or from time to time reduce, the Commitments; provided that
(i) each reduction of the Commitments shall be in an amount that is an integral
multiple of $1,000,000 and not less than $10,000,000 and (ii) the Borrower
shall not terminate or reduce the Commitments if, after giving effect to any
concurrent prepayment of the Loans in accordance with Section 2.04, the
total Credit Exposures would exceed the total Commitments.

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

Section 2.11         Payments
Generally; Pro Rata Treatment; Sharing of Set-offs.

(a)           The Borrower shall make each
payment required to be made by it hereunder (whether of principal, interest or
fees, or of amounts payable under Section 9.03, 9.04 or 9.05, or
otherwise) prior to 2:00 p.m., New York City time, on the date when due,
in immediately available funds, without set off or counterclaim.  Any amounts received after such time on any
date may, in the discretion of the Administrative Agent, be deemed to have been
received on the next succeeding Business Day for purposes of calculating
interest thereon; provided that no amount shall be deemed to have been
received on the next succeeding Business 

 

 30
 

 

Day if the
Borrower provides the Administrative Agent with written confirmation of a
Federal Reserve Bank reference number no later than 4:00 p.m. on the date when
due.  All such payments shall be made to
the Administrative Agent at the Administrative Agent’s Office, except that
payments pursuant to Sections 9.03, 9.04, 9.05 and 10.03 shall be made
directly to the Persons entitled thereto. 
The Administrative Agent shall distribute any such payments received by
it for the account of any other Person to the appropriate recipient promptly
following receipt thereof.  If any
payment hereunder shall be due on a day that is not a Business Day, the date
for payment shall be extended to the next succeeding Business Day, and, in the
case of any payment accruing interest, interest thereon shall be payable for
the period of such extension.  All
payments under this Agreement and the other Loan Documents shall be made in
dollars in New York, New York.

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

(c)           If any Lender shall, by
exercising any right of set off or counterclaim or otherwise, obtain payment in
respect of any principal of or interest on any of its Loans, or the
participations in L/C Obligations held by it, or other obligations hereunder
resulting in such Lender receiving payment of a proportion of the aggregate
amount of its Loans and accrued interest thereon or such other obligations
greater than its pro rata share thereof as provided herein, then the Lender
receiving such greater proportion shall (a) notify the Administrative
Agent of such fact, and (b) purchase (for cash at face value)
participations in the Loans, and/or such sub participations in the
participations in L/C Obligations held by them, and such other obligations of
the other Lenders, or make such other adjustments that shall be equitable so
that the benefit of all such payments shall be shared by the Lenders ratably in
accordance with the aggregate amount of principal of and accrued interest on
their respective Loans and other amounts owing them; provided that
(i) if any such participations are purchased and all or any portion of the
payment giving rise thereto is recovered, such participations shall be
rescinded and the purchase price restored to the extent of such recovery,
without interest, and (ii) the provisions of this paragraph shall not be
construed to apply to any payment made by the Borrower pursuant to and in
accordance with the express terms of this Agreement or any payment obtained by
a Lender as consideration for the assignment of or sale of a participation in
any of its Loans to any assignee or participant, other than to the Borrower or
any Subsidiary thereof (as to which the provisions of this paragraph shall
apply).  The Borrower and the Guarantor each
consent to the foregoing and each agree, to the extent it may effectively do so
under applicable law, that any Lender acquiring a participation pursuant to the
foregoing arrangements may exercise against the Borrower and the Guarantor
rights of setoff and counterclaim with respect to such participation as fully
as if such Lender were a direct creditor of the Borrower or the Guarantor in
the amount of such participation.

 

 31
 

 

(d)           Unless the Administrative
Agent shall have received notice from the Borrower prior to the date on which
any payment is due to the Administrative Agent for the account of the Lenders
hereunder that the Borrower will not make such payment, the Administrative
Agent may assume that the Borrower has made such payment on such date in
accordance herewith and may, in reliance upon such assumption, distribute to
the Lenders the amount due.  In such
event, if the Borrower has not in fact made such payment, then each of the
Lenders severally agrees to repay to the Administrative Agent forthwith on
demand the amount so distributed to such Lender with interest thereon, for each
day from and including the date such amount is distributed to it to but
excluding the date of payment to the Administrative Agent, at the greater of
the Federal Funds Effective Rate and a rate determined by the Administrative
Agent in accordance with banking industry rules on interbank compensation.

(e)           Unless the Lender has notified the Administrative Agent, prior to
the date any payment is required to be made by it to the Administrative Agent
hereunder, that such Lender will not make such payment, the Administrative
Agent may assume that such Lender has timely made such payment and may (but
shall not be so required to), in reliance thereon, make available a
corresponding amount to the Person entitled thereto.  If and to the extent that such payment was
not in fact made to the Administrative Agent in immediately available funds,
then such Lender shall forthwith on demand pay to the Administrative Agent the
amount thereof in immediately available funds, together with interest thereon
for the period from the date such amount was made available by the
Administrative Agent to the Borrower to the date such amount is recovered by
the Administrative Agent (the “Compensation Period”) at a rate per annum
equal to the Federal Funds Effective Rate from time to time in effect. If such
Lender pays such amount to the Administrative Agent, then such amount shall
constitute such Lender’s Loan included in the applicable Borrowing.  If such Lender does not pay such amount
forthwith upon the Administrative Agent’s demand therefor, the Administrative
Agent may make a demand therefor upon the Borrower, and the Borrower shall pay
such amount to the Administrative Agent, together with interest thereon for the
Compensation Period at a rate per annum equal to the rate of interest
applicable to the applicable Borrowing. 
Nothing herein shall be deemed to relieve any Lender from its obligation
to fulfill its Commitment or to prejudice any rights which the Administrative
Agent or the Borrower may have against any Lender as a result of any default by
such Lender hereunder.

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

ARTICLE III

Representations and Warranties

Each Obligor represents and warrants to the
Administrative Agent and the Lenders that:

Section 3.01         Organization; Powers. 
Each Obligor is a company duly organized or formed and validly existing
under the laws of its jurisdiction of organization or formation.  Each Obligor has all corporate powers and all
governmental licenses, authorizations, consents and approvals required to carry
on its business as now conducted, except to the extent 

 

 32
 

 

that failure to have any such power or governmental license,
authorization, consent or approval could not, based upon the facts and
circumstances in existence at the time this representation and warranty is made
or deemed made, reasonably be expected to have a Material Adverse Effect.

Section 3.02         Authorization; Enforceability.  The Transactions are within such Obligor’s
corporate powers and have been duly authorized by all necessary corporate and,
if required, stockholder action.  This
Agreement and each other Loan Document to which such Obligor is a party has
been duly executed and delivered by such Obligor and constitutes a legal, valid
and binding obligation of such Obligor, enforceable in accordance with its
terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium
or other laws affecting creditors’ rights generally and subject to general
principles of equity, regardless of whether considered in a proceeding in
equity or at law.

Section 3.03         Governmental Approvals; No Conflicts.  The Transactions (a) do not require any
consent or approval of, registration or filing with, or any other action by,
any Governmental Authority, except such as have been obtained or made and are
in full force and effect, (b) will not violate, contravene, or constitute
a default under any provision of (i) any applicable law or regulation,
(ii) the charter, by-laws or other organizational documents of such
Obligor, (iii) any order, judgment, decree or injunction of any
Governmental Authority, (iv) any agreement or instrument evidencing or
governing Debt of such Obligor, except for any contravention or default under
any such agreement or instrument evidencing or governing such Debt in an
aggregate principal amount, individually or in the aggregate for all such
agreements or instruments in respect of which there is a contravention or
default, not in excess of $25,000,000 or (v) any other material agreement
or instrument binding upon such Obligor or its assets.

Section 3.04         Financial
Condition; No Material Adverse Change.

(a)           The Guarantor has heretofore
furnished to the Administrative Agent (i) its Consolidated balance sheet
and statements of income, shareholders’ equity and cash flows as of and for the
fiscal year ended September 29, 2006, reported on by Deloitte &
Touche LLP, independent public accountants, and (ii) its pro forma Consolidated statements of income as of such date
and for such period and its pro forma
Consolidated balance sheet as of March 30, 2007, adjusted to give pro forma effect to the consummation of the Separation
Transactions, certified by its chief financial officer (the “Separation Pro
Formas”).  Such financial statements,
(A) in the case of the financial statements described in clause (i),
present fairly, in all material respects, the Consolidated financial position
and results of operations and cash flows of the Guarantor as of such date and
for such period in accordance with GAAP, and (B) in the case of the
Separation Pro Formas, have been prepared in good faith by the Guarantor, based
on assumptions believed by the Guarantor on the Closing Date to be reasonable
under the circumstances and were based upon currently available information as
of the date of delivery), and reflect on a pro forma basis
the estimated Consolidated financial position and results of operations of the
Guarantor and its Subsidiaries as of such date, assuming the Spin Distributions
had actually occurred (x) at March 30, 2007, in the case of such
balance sheet, or (y) on October 1, 2003, in the case of such
statements of income, and giving pro forma
effect to the other events and adjustments referred to in such financial
statements.

 33

(b)           Since September 29, 2006,
except for the Separation Transactions, there has been no material adverse
change in (i) the consolidated financial condition, business or operations of
the Guarantor and its Subsidiaries, taken as a whole or (ii) the fire & safety
and engineered products business or operations of the Guarantor and its
subsidiaries, taken as a whole; provided that, for purposes of this
Section 3.04(b), a “material adverse change” shall not include any change
to the extent resulting solely from any Existing Indenture Covered Default.

Section 3.05         Litigation
and Environmental Matters.

(a)           There are no actions, suits,
investigations or proceedings by or before any arbitrator or Governmental
Authority pending against or, to the knowledge of the Obligors, threatened
against or affecting the Guarantor or any of its Subsidiaries (i) as to
which there is a reasonable possibility of an adverse determination which
could, based upon the facts and circumstances in existence at the time this
representation and warranty is made or deemed made, reasonably be expected to
result in a Material Adverse Effect, other than the matters described in the
Guarantor’s filings of Forms 10K, 10Q or 8K or in the Form-10s, in each case on
or before the date hereof (the “Existing Litigation”), and other than
shareholders’ derivative litigation or shareholders’ class actions based on the
same facts and circumstances as the Existing Litigation, or (ii) that
could reasonably be expected to adversely affect the validity or enforceability
of any of the Loan Documents or the Transactions.

(b)           Except with respect to any
matters that could not, based upon the facts and circumstances in existence at
the time this representation and warranty is made or deemed made, reasonably be
expected to result in a Material Adverse Effect and except for the matters
described in the Guarantor’s filings of Forms 10K, 10Q or 8K or in the
Form-10s, in each case on or before the date hereof, neither the Guarantor nor
any of its Subsidiaries (i) has failed to comply with any Environmental
Law or to obtain, maintain or comply with any permit, license or other approval
required under any Environmental Law or (ii) has become subject to any
Environmental Liability.

Section 3.06         Investment Company Status. 
Neither Obligor is an “investment company” as defined in, or subject to
regulation under, the Investment Company Act of 1940.

Section 3.07         Taxes.  Each of the
Guarantor and its Significant Subsidiaries has timely filed or caused to be
filed all Tax returns and reports required to have been filed and has paid or
caused to be paid all Taxes required to have been paid by it, except (a) Taxes
that are being contested in good faith by appropriate proceedings and for which
the Guarantor or such Significant Subsidiary, as applicable, has set aside on
its books adequate reserves or (b) to the extent that the failure to do so
could not, based upon the facts and circumstances in existence at the time this
representation and warranty is made or deemed made, reasonably be expected to
result in a Material Adverse Effect.

Section 3.08         ERISA.  No ERISA Event
has occurred or is reasonably expected to occur that, when taken together with
all other such ERISA Events for which liability is reasonably expected to
occur, could, based upon the facts and circumstances in existence at the time
this representation and warranty is made or deemed made, reasonably be expected
to result 

 34
 

 

in a Material
Adverse Effect.  The present value of all
accumulated benefit obligations of all underfunded Plans (based on the
assumptions used for purposes of Statement of Financial Accounting Standards
No. 87) did not, as of the date of the most recent financial statements
reflecting such amounts, exceed the fair market value of the assets of all such
underfunded Plans by an amount which could based upon the facts and
circumstances existing at the time this representation and warranty is made or
deemed made, reasonably be expected to result in a Material Adverse Effect.

Section 3.09         Disclosure.  All
information heretofore furnished by or on behalf of the Obligors to the
Administrative Agent or the Lenders in connection with this Agreement or the
other Loan Documents, when taken as a whole, does not contain any untrue
statement of material fact or omit to state any material fact necessary to make
the statements contained herein or therein, in light of the circumstances under
which they were made, not misleading; provided that with respect to
projections and other forward-looking information, the Obligors represent and
warrant only that such information was prepared in good faith based upon
assumptions believed to be reasonable at the time made, it being understood
that projections and forward-looking information are subject to significant
uncertainties and contingencies, many of which are beyond the control of the
Obligors and that no assurance can be given that such projections will be
realized.

Section 3.10         Subsidiaries.  Each of
the Guarantor’s Subsidiaries is duly organized or formed, validly existing and
(to the extent such concept is applicable to it) in good standing under the
laws of its jurisdiction of organization or formation, except where the failure
to be so organized, existing or in good standing could not, based upon the
facts and circumstances existing at the time this representation and warranty
is made or deemed made, reasonably be expected to have a Material Adverse
Effect.  Each such Subsidiary has all
legal powers and all governmental licenses, authorizations, consents and
approvals required to carry on its business as now conducted, except to the
extent that failure to have any such power or governmental license,
authorization, consent or approval could not, based upon the facts and
circumstances in existence at the time this representation and warranty is made
or deemed made, reasonably be expected to have a Material Adverse Effect.

Section 3.11         Margin
Regulations. 
Neither Obligor is engaged principally or as one of its important
activities in the business of buying or carrying margin stock within the
meaning of Regulation U of the Board.

ARTICLE
IV

Conditions

Section 4.01         Effective Date.  This
Agreement shall become effective on the date on which each of the following
conditions is satisfied (or waived in accordance with Section 10.02):

(a)           The Administrative Agent (or
its counsel) shall have received on or before the date of this Agreement from
each party hereto either (i) a counterpart of this Agreement 

 35
 

 

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

(b)           The Administrative Agent (or
its counsel) shall have received a Note executed by the Borrower in favor of
each Lender that requested a Note prior to the Closing Date.

(c)           The Administrative Agent shall
have received on or before the date of this Agreement copies of resolutions of
the Board of Directors of each Obligor authorizing the Transactions together
with incumbency certificates dated the date of this Agreement evidencing the
identity, authority and capacity of each Person authorized to execute and
deliver this Agreement, the other Loan Documents and any other documents to be
delivered by such Obligor pursuant hereto, all in form and substance reasonably
satisfactory to the Administrative Agent and its counsel.

(d)           The Administrative Agent shall
have received a certificate, dated the date of this Agreement and signed by a
Responsible Officer, confirming that (i) the representations and
warranties of each Obligor set forth in Article III of this Agreement are true
and correct and (ii) no Default has occurred and is continuing.

(e)           The Administrative Agent shall
have received evidence reasonably satisfactory to it of the consent of CT
Corporation System in New York, New York to the appointment and designation
provided by Section 10.09(d).

(f)            The Borrower shall have paid
all fees required to be paid by it pursuant to the Fee Letters and, unless
waived by the Administrative Agent, the Borrower shall have paid all legal fees
and expenses of the Administrative Agent required to be paid pursuant to the
terms of this Agreement and to the extent invoiced and received by the Borrower
prior to the Closing Date.

The Administrative Agent shall notify the Borrower,
the Lenders and the L/C Issuer of the Effective Date.  Such notice shall be conclusive and binding.

Section 4.02         Each Borrowing.  The
obligation of the L/C Issuer to make any L/C Credit Extension is subject to the
satisfaction of the following conditions:

(a)           At the time of and immediately
after giving effect to such L/C Credit Extension, no Default shall have
occurred and be continuing.

(b)           The Borrower shall have
delivered a Letter of Credit Application in accordance with the requirements
hereof.

The submission of each Letter of Credit Application
shall be deemed to constitute a representation and warranty by the Obligors on
the date of such Letter of Credit Application and the date of the L/C Credit
Extension requested thereunder as to the matters specified in paragraphs (a)
and (b) of this Section.

 36
 

 

ARTICLE
V

Covenants

From and after the Effective Date, so long as any
Lender has any Commitments hereunder, any Letter of Credit remains outstanding
or any amount payable under the Loan Documents remains unpaid, the Guarantor
(and the Borrower, where applicable) covenants and agrees with the Lenders and
the Administrative Agent that:

Section 5.01         Financial Statements and Other Information.  The Guarantor will furnish to the
Administrative Agent (which, except as otherwise provided below with respect to
subsections (a), (b) or (e), the Administrative Agent shall promptly
furnish to each Lender and the L/C Issuer):

(a)           within 120 days after the
end of each fiscal year of the Guarantor, its audited Consolidated balance
sheet and related statements of operations, shareholders’ equity and cash flows
as of the end of and for such fiscal year, setting forth in each case in
comparative form the figures for the previous fiscal year, all reported on by
Deloitte & Touche LLP or other independent public accountants of
internationally recognized standing in a manner complying with the applicable
rules and regulations promulgated by the SEC;

(b)           within 60 days after the
end of each of the first three fiscal quarters of each fiscal year of the
Guarantor, its Consolidated balance sheet and related statements of operations
and cash flows for such fiscal quarter and the related statements of operations
and cash flows for the then elapsed portion of the fiscal year, setting forth
in each case in comparative form the figures for the corresponding period or
periods of the previous fiscal year, all certified as to GAAP (subject to the
absence of footnotes, audit and normal year-end adjustments) on behalf of the
Guarantor by the chief financial officer or the chief accounting officer of the
Guarantor or a Designated Officer; provided that for any such fiscal
quarter with respect to which such financial statements reflecting the businesses
spun off in the Separation Transactions as discontinued operations and
assets/liabilities held for sale, as applicable, have not yet been filed with
the SEC, Guarantor shall instead provide as and when filed with the SEC, the
balance sheet and statements of income of the Guarantor giving pro forma effect to the consummation of the Separation
Transactions and certified by the chief financial officer of the Guarantor;

(c)           concurrently with any delivery
of financial statements under clause (a) or (b) above, a certificate on behalf
of the Guarantor signed by the chief financial officer or the chief accounting
officer of the Guarantor or a Designated Officer (i) certifying as to
whether a Default has occurred and, if a Default has occurred, specifying the
details thereof and any action taken or proposed to be taken with respect
thereto, and (ii) setting forth reasonably detailed calculations
demonstrating whether the Guarantor was in compliance with Section 5.09;

(d)           within five Business Days
after any Responsible Officer obtains knowledge of any Default, if such Default
is then continuing, a certificate on behalf of the Guarantor signed by a
Responsible Officer of the Guarantor or a Designated Officer setting 

 37
 

 

forth, in
reasonable detail, the nature thereof and the action which the Guarantor is
taking or proposes to take with respect thereto;

(e)           promptly upon the filing
thereof, copies of all final registration statements (other than the exhibits
thereto and any registration statements on Form S-8 or its equivalent),
final reports on Forms 10-K, 10-Q and 8-K (or their equivalents) and proxy
statements which the Guarantor or the Borrower shall have filed with the SEC;

(f)            promptly upon any Responsible
Officer obtaining knowledge of the commencement of any Reportable Action, a
certificate on behalf of the Guarantor specifying the nature of such Reportable
Action and what action the Guarantor is taking or proposes to take with respect
thereto; and

(g)           from time to time, upon
reasonable notice, such other information regarding the financial position or
business of the Guarantor and its Subsidiaries, or compliance with the terms of
this Agreement, as any Lender through the Administrative Agent may reasonably
request.

Information
required to be delivered pursuant to subsections (a), (b) or (e) above may
be delivered electronically and if so delivered, shall be deemed to have been
delivered on the date (i) on which the Guarantor posts such documents, or
provides a link thereto on the Guarantor’s website on the Internet at
www.tyco.com (or such other website as the Guarantor may designate in a writing
delivered to the Administrative Agent), or at sec.gov/edaux/searches.htm; or
(ii) on which such documents are posted on the Guarantor’s behalf, or
delivered to the Administrative Agent by the Guarantor in accordance with
Section 10.15.

Section 5.02         Existence;
Conduct of Business. 
The Guarantor will:

(a)           not engage in any material
business other than the holding of stock and other investments in its
Subsidiaries and activities reasonably related thereto; and

(b)           [Intentionally omitted]

(c)           preserve, renew and keep in
full force and effect, and will cause each Significant Subsidiary to preserve,
renew and keep in full force and effect (i) their respective legal
existence and (ii) their respective rights, privileges and franchises
necessary or desirable in the normal conduct of business, unless in the case of
either the failure of the Guarantor to comply with
subclause (c)(ii) of this Section 5.02 or the failure of a
Significant Subsidiary to comply with clause (c) of this Section 5.02,
such failure could not, based upon the facts and circumstances existing at the
time, reasonably be expected to have a Material Adverse Effect;

provided that nothing in this
Section 5.02 shall prohibit the Separation Transactions or any transaction
permitted by Section 5.08.

Section 5.03         Maintenance of Properties; Insurance.  The Guarantor will, and will cause each of
its Subsidiaries to, (a) keep and maintain all property material to the conduct
of its business in good working order and condition, ordinary wear and tear
excepted, and (b) 

 38
 

maintain, with
financially sound and reputable insurance companies, insurance in such amounts
and against such risks as are customarily maintained by and commercially
available to companies engaged in the same or similar businesses operating in
the same or similar locations, except in the case of each of clause (a) and (b)
to the extent that the failure to do so could not, based upon the facts and
circumstances existing at the time, reasonably be expected to have a Material
Adverse Effect.

Section 5.04         Books and Records; Inspection Rights.  The Guarantor will keep, and will cause each
Consolidated Subsidiary to keep, proper books of record and account in which
true and correct entries shall be made of its business transactions and
activities so that financial statements of the Guarantor that fairly present
its business transactions and activities can be properly prepared in accordance
with GAAP.  The Guarantor will, and will
cause each Significant Subsidiary to, permit any representatives designated by
the Administrative Agent or by any Lender through the Administrative Agent,
upon reasonable prior notice, at all reasonable times and as and to the extent
permitted by applicable law and regulation, and at the Administrative Agent’s
or such Lender’s expense, to visit and inspect its properties, to examine and
make extracts from its books and records, and to discuss its affairs, finances,
accounts and condition with its officers, employees (in the presence of its
officers) and independent accountants (in the presence of its officers); provided
that (i) such designated representatives shall be reasonably acceptable to
the Borrower, shall agree to any reasonable confidentiality obligations
proposed by the Borrower, and shall follow the guidelines and procedures
generally imposed upon like visitors to Borrower’s facilities and
(ii) unless a Default shall have occurred and be continuing, such visits
and inspections shall occur not more than once in any Fiscal Year.

Section 5.05         Compliance with Laws. 
The Guarantor will, and will cause each Significant Subsidiary to,
comply with all laws, rules, regulations and orders of any Governmental
Authority applicable to it or its property, except where the failure to do so
could not, based upon the facts and circumstances existing at the time,
reasonably be expected to result in a Material Adverse Effect.

Section 5.06         [Intentionally Omitted]

Section 5.07         Liens.  The Guarantor
will not, and will not permit any Subsidiary to, create, incur, assume or
permit to exist any Lien on any property or asset now owned or hereafter
acquired by it, except:

(a)           any Lien
existing on any asset on the Closing Date;

(b)           any Lien on
any asset securing the payment of all or part of the purchase price of such
asset upon the acquisition thereof by the Guarantor or a Subsidiary or securing
Debt (including any obligation as lessee incurred under a capital lease)
incurred or assumed by the Guarantor or a Subsidiary prior to, at the time of
or within one year after such acquisition (or in the case of real property, the
completion of construction (including any improvements on an existing property)
or the commencement of full operation of such asset or property, whichever is
later), which Debt is incurred or assumed for the purpose of financing all or
part of the cost of acquiring such asset or, in the case of real property,
construction or improvements thereon;

 39
 

 

provided, that in the case of any such
acquisition, construction or improvement, the Lien shall not apply to any asset
theretofore owned by the Guarantor or a Subsidiary, other than assets so
acquired, constructed or improved;

(c)           any Lien
existing on any asset or Stock of any Person at the time such Person is merged
or consolidated with or into the Guarantor or a Subsidiary which Lien was not
created in contemplation of such event;

(d)           any Lien
existing on any asset at the time of acquisition thereof by the Guarantor or a
Subsidiary, which Lien was not created in contemplation of such acquisition;

(e)           any Lien
arising out of the Refinancing of any Debt secured by any Lien permitted by any
of the subsections (a) through (d) of this Section 5.07, provided
that the principal amount of Debt is not increased (except as grossed-up for
the customary fees and expenses incurred in connection with such Refinancing
and except as a result of the capitalization or accretion of interest) and is
not secured by any additional assets, except as provided in the last sentence
of this Section 5.07;

(f)            any Lien to
secure Intercompany Debt;

(g)           sales of
accounts receivable or promissory notes to factors or other third-parties in
the ordinary course of business for purposes of collection;

(h)           any Lien in
favor of any country or any political subdivision of any country (or any
department, agency or instrumentality thereof) securing obligations arising in
connection with partial, progress, advance or other payments pursuant to any
contract, statute, rule or regulation or securing obligations incurred for the
purpose of financing all or any part of the purchase price (including the cost
of installation thereof or, in the case of real property, the cost of
construction or improvement or installation of personal property thereon) of
the asset subject to such Lien (including, but not limited to, any Lien
incurred in connection with pollution control, industrial revenue or similar
financings);

(i)            Liens
arising in the ordinary course of its business which (i) do not secure
Debt, and (ii) do not in the aggregate materially detract from the value
of its assets or materially impair the use thereof in the operation of its
business;

(j)            any Lien
securing only Nonrecourse Debt;

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

(l)            Liens
created pursuant to a Permitted Securitization Transactions

(m)          Liens for
taxes, assessments and governmental charges or levies which are not yet due or
are payable without penalty or of which the amount, applicability or validity
is 

 40
 

 

being contested by the Guarantor or a Subsidiary whose property is
subject thereto in good faith by appropriate proceedings as to which adequate
reserves are being maintained;

(n)           Liens
securing judgments that have not resulted in the occurrence of an Event of
Default under clause (k) of Article VI in an aggregate principal amount at any
time outstanding not to exceed $100,000,000; and

(o)           Liens not
otherwise permitted by the foregoing clauses (a) through (n) of this
Section 5.07 securing Debt or other obligations (without duplication) in
an aggregate principal amount at any time outstanding not to exceed an amount
equal to 7.5% of Consolidated Tangible Assets at such time.

It is understood that any Lien permitted to exist on
any asset pursuant to the foregoing provisions of this Section 5.07 may
attach to the proceeds of such asset and, with respect to Liens permitted
pursuant to subsections (a), (b), (d), (e) (but only with respect to the
Refinancing of Debt secured by a Lien permitted pursuant to
subsections (a), (b), (d)) or (f) of this Section 5.07, may attach to
an asset acquired in the ordinary course of business as a replacement of such
former asset.

Section 5.08         Fundamental
Changes.

(a)           No Obligor
will consolidate, amalgamate or merge with or into any other Person or sell,
lease or otherwise transfer all or substantially all of the Consolidated assets
to any other Person, unless

(i)          such Obligor is the
surviving corporation, or the Person (if other than such Obligor) formed by
such consolidation or amalgamation or into which such Obligor is merged or
amalgamated, or the Person which acquires by sale or other transfer, or which
leases, all or substantially all of the assets of such Obligor (any such
Person, the “Successor”), shall be organized and existing under the laws
of (A) in the case of a Successor to the Borrower, Luxembourg or the United
States, any state thereof or the District of Columbia or (B) in the case of a
Successor to the Guarantor, Bermuda or of the United States, any state thereof
or the District of Columbia and shall expressly assume, in a writing executed
and delivered to the Administrative Agent for delivery to each of the Lenders,
in form reasonably satisfactory to the Administrative Agent, the due and
punctual payment of the principal of and interest on the Loans and the
performance of the other obligations under this Agreement and the other Loan
Documents on the part of such Obligor to be performed or observed, as fully as
if such Successor were originally named as such Obligor in this Agreement or
such other Loan Document; and

(ii)         immediately after
giving effect to such transaction, no Default shall have occurred and be
continuing; and

(iii)        such Obligor has
delivered to the Administrative Agent a certificate on behalf of such Obligor
signed by one of its Responsible Officers and an opinion of 

 41
 

 

counsel, each
stating that all conditions provided in this Section 5.08 relating to such
transaction have been satisfied;

provided, however, that
nothing in this Section 5.08(a) shall prohibit the Separation
Transactions.  Without limiting the
generality of the foregoing, the Spin Distribution shall not be deemed to be a
transfer of all or substantially all of the Consolidated assets of either
Obligor.  Upon the satisfaction (or
waiver) of the conditions set forth in this Section 5.08(a), a Successor
to the Borrower or the Guarantor shall succeed, and may exercise every right
and power of, the Borrower or the Guarantor under this Agreement and the other
Loan Documents with the same effect as if such Successor had been originally
named as the Borrower or the Guarantor herein, and the Borrower or the
Guarantor, as the case may be, shall be relieved of and released from its
obligations under this Agreement and the other Loan Documents.

(b)           The Guarantor
shall not consummate either Spin Distribution unless upon such distribution the
E Guarantor or the H Guarantor, as applicable, shall assume the obligations of
the Guarantor under its Guarantee of the obligations of the E Borrower or the H
Borrower, as applicable, under the relevant Other Credit Agreement and the
relevant Other Bridge Loan Agreement, pursuant to an assumption agreement that
provides that the Guarantor shall be relieved of and released from its
obligations under such Other Credit Agreement and such Other Bridge Loan
Agreement in respect of the obligations of the E Borrower or the H Borrower, as
applicable.

Section 5.09         Financial Covenant.

(a)           Leverage.  The Guarantor will not permit at any time the
ratio of (x) Consolidated Total Debt at such time to (y) Consolidated EBITDA
for the then most recently concluded period of four consecutive fiscal quarters
of the Guarantor to exceed 3.50 to 1.00.

Section 5.10         Limitation
on Restrictions on Subsidiary Dividends and Other Distributions.  The Guarantor will not, and will not permit
any Subsidiary to, directly or indirectly, create or otherwise cause or suffer
to exist or become effective any encumbrance or restriction on the ability of
any Subsidiary, other than the Borrower, to (a) pay dividends or make any other
distributions on its capital stock or any other interest or participation in
its profits, owned by the Guarantor or any Subsidiary, or pay any Debt owed by
any Subsidiary to the Guarantor or any Subsidiary, (b) make loans or advances
to the Guarantor or any Subsidiary or (c) transfer any of its properties or
assets to the Guarantor or any Subsidiary (or, solely in the case of clause
(xii) hereof, any other Consolidated Person in respect of such Nonrecourse
Debt), except for such encumbrances or restrictions existing under or by reason
of:

(i)            applicable laws and regulations,
judgments and orders and other legal requirements, agreements with
non-U.S. governments with respect to assets or businesses located in their
jurisdiction, or condemnation or eminent domain proceedings,

(ii)           this Agreement or the Credit
Agreement (or, so long as the Guarantor or any Subsidiary is a party thereto,
the Other Credit Agreements and the Bridge Loan Agreements),

 42
 

 

(iii)          (A) customary provisions restricting
subletting or assignment of any lease governing a leasehold interest of the
Guarantor or a Subsidiary, or (B) customary restrictions imposed on the
transfer of trademarked, copyrighted or patented materials or provisions in
agreements that restrict the assignment of such agreements or any rights
thereunder,

(iv)          provisions contained in the
instruments evidencing or governing Debt or other obligations or agreements, in
each case existing on the date hereof,

(vi)          provisions contained in instruments
evidencing or governing Debt or other obligations or agreements of any Person,
in each case, at the time such Person (A) shall be merged or consolidated with
or into the Guarantor or any Subsidiary, (B) shall sell, transfer, assign,
lease or otherwise dispose of all or substantially all of such Person’s assets
to the Guarantor or a Subsidiary, or (C) otherwise becomes a Subsidiary, provided  that
in the case of clause (A), (B) or (C), such Debt, obligation or agreement was
not incurred or entered into, or any such provisions adopted, in contemplation
of such transaction,

(vii)         provisions contained in Refinancings,
so long as such provisions are, in the good faith determination of the
Guarantor’s board of directors, not materially more restrictive than those
contained in the respective instruments so Refinanced,

(viii)        provisions contained in any instrument
evidencing or governing Debt or other obligations of a Subsidiary Guarantor,

(ix)           any encumbrances and restrictions
with respect to a Subsidiary imposed in connection with an agreement which has
been entered into for the sale or disposition of such Subsidiary or its assets,
provided  such sale or disposition otherwise complies with this
Agreement,

(x)            the subordination (pursuant to its
terms) in right and priority of payment of any Debt owed by any Subsidiary (the
“Indebted Subsidiary”) to the Guarantor or any other Subsidiary, to any
other Debt of such Indebted Subsidiary, provided  that (A) such Debt is permitted under
this Agreement and (B) the Guarantor’s board of directors has determined, in
good faith, at the time of the creation of such encumbrance or restriction, that
such encumbrance or restriction could not, based upon the facts and
circumstances in existence at the time, reasonably be expected to have a
Material Adverse Effect,

(xi)           provisions governing Preferred Stock
issued by a Subsidiary,

(xii)          provisions contained in instruments or
agreements evidencing or governing (A) Nonrecourse Debt or (B) other Debt of a
Subsidiary incurred to finance the acquisition or construction of fixed or
capital assets to the extent, in the case of sub-clause (B), such instrument or
agreement prohibits transfers of the assets financed with such Debt, and

 43
 

 

(xiii)         provisions contained in debt
instruments, obligations or other agreements of any Subsidiary which are not
otherwise permitted pursuant to clauses (i) through (xii) of this Section 5.10,
provided  that the aggregate investment of the Guarantor in all such
Subsidiaries (determined in accordance with GAAP) shall at no time exceed the
greater of (a) $300,000,000 or (b) 3% of Consolidated Tangible Assets.

The provisions of this Section 5.10 shall not
prohibit (x) Liens not prohibited by Section 5.07 or (y) restrictions on
the sale or other disposition of any property securing Debt of any Subsidiary, provided  such
Debt is otherwise permitted by this Agreement.

Section 5.11         Transactions
with Affiliates. 
The Guarantor will not, and will not permit any Subsidiary to, directly
or indirectly, pay any funds to or for the account of, make any investment
(whether by acquisition of Stock or indebtedness, by loan, advance, transfer of
property, guarantee or other agreement to pay, purchase or service, directly or
indirectly, any Debt, or otherwise) in, lease, sell, transfer or otherwise
dispose of any assets, tangible or intangible, to, or participate in, or effect
any transaction in connection with any joint enterprise or other joint
arrangement with, any Affiliate (collectively, “Affiliate Transactions”);  provided, however, that the foregoing provisions of this
Section 5.11 shall not prohibit the Guarantor or any of its Subsidiaries
from:

(i)          engaging in any Affiliate Transaction
between or among (x) the Guarantor and any Subsidiary or Subsidiaries or (y)
two or more Subsidiaries,

(ii)         engaging in any of the Separation
Transactions, including any transactions pursuant to the Spin-Off Agreements,

(iii)        declaring or paying any dividends and
distributions on any shares of the Guarantor’s Stock, including any dividend or
distribution payable in shares of the Guarantor’s Stock or Stock Equivalents,

(iv)       making any payments on account of the
purchase, redemption, retirement or acquisition of (x) any shares of the
Guarantor’s Stock or (y) any option, warrant or other right to acquire shares
of the Guarantor’s Stock, including any payment payable in shares of the
Guarantor’s Stock or Stock Equivalents,

(v)        declaring or paying any dividends or
distributions on Stock of any Subsidiary held by the Guarantor or another
Subsidiary,

(vi)       making sales to or purchases from any
Affiliate and, in connection therewith, extending credit or making payments, or
from making payments for services rendered by any Affiliate, if such sales or
purchases are made or such services are rendered in the ordinary course of
business and on terms and conditions at least as favorable to the Guarantor or
such Subsidiary as the terms and conditions which the Guarantor would
reasonably expect to be obtained in a similar transaction with a Person which
is not an Affiliate at such time,

 44
 

 

(vii)      making payments of principal, interest and
premium on any Debt of the Guarantor or such Subsidiary held by an Affiliate if
the terms of such Debt are at least as favorable to the Guarantor or such
Subsidiary as the terms which the Guarantor would reasonably expect to have
been obtained at the time of the creation of such Debt from a lender which was
not an Affiliate,

(viii)     participating in, or effecting any
transaction in connection with, any joint enterprise or other joint arrangement
with any Affiliate if the Guarantor or such Subsidiary participates in the
ordinary course of its business and on a basis no less advantageous than the
basis on which such Affiliate participates,

(ix)        paying or granting reasonable
compensation, indemnities, reimbursements and benefits to any director,
officer, employee or agent of the Guarantor or any Subsidiary, or

(x)         engaging in any Affiliate Transaction
not otherwise addressed in subsections (i) through (ix) of this
Section 5.11, the terms of which are not less favorable to the Guarantor
or such Subsidiary than those that the Guarantor or such Subsidiary would
reasonably expect to be obtained in a comparable transaction at such time with
a Person which is not an Affiliate.

Section 5.12         Subsidiary
Guarantors.  The
Borrower will cause each Subsidiary of the Borrower that now or hereafter
Guarantees any Material Debt of the Borrower for or in respect of borrowed
money (other than Debt of the Borrower to any other Subsidiary) to promptly
thereafter (and in any event within 30 days of executing such Guarantee)
cause such Subsidiary to (a) become a Subsidiary Guarantor by executing and
delivering to the Administrative Agent a Subsidiary Guaranty, and (b) deliver
to the Administrative Agent documents of the types referred to in
Section 4.01(d) and favorable opinions of counsel to such Subsidiary
(which shall cover, among other things, the legality, validity, binding effect
and enforceability of the Subsidiary Guaranty of such Subsidiary), all in form,
content and scope reasonably satisfactory to the Administrative Agent.

Section 5.13         Subsidiary
Debt.  The
Guarantor will not at any time permit the aggregate outstanding principal
amount of Debt of the Consolidated Subsidiaries to exceed an amount equal to
$750,000,000, provided that for purposes of this Section 5.13, “Debt”
shall not include (i) Permitted Acquired Debt of any Consolidated
Subsidiary, (ii) Debt of any Consolidated Subsidiary (other than the
Borrower) outstanding as of the Closing Date, and any Refinancings thereof,
(iii) Debt of the Borrower or (iv) obligations under any Permitted
Securitization Transaction, to the extent otherwise constituting Debt.

 45

ARTICLE
VI

Events of Default

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

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

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

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

(d)           either Obligor shall fail to
observe or perform any covenant, condition or agreement contained in (i)
Section 5.07, 5.08, 5.10, 5.11, 5.12 or 5.13 and such failure shall not be
remedied within five Business Days after any Responsible Officer obtains
knowledge thereof or (ii) Section 5.09;

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

(f)            the Guarantor or any
Subsidiary shall fail to make any payment 
in respect of any Material Debt, when and as the same shall become due
and payable, and such failure shall continue beyond any applicable grace period
(but in any event, in the case of interest, fees or other amounts other than
principal, for a period of at least five Business Days); provided that
this clause (f) shall not apply to any Existing Indenture Covered Default;

(g)           any event or condition occurs
that results in any Material Debt becoming due prior to its scheduled maturity;
provided that this clause (g) shall not apply to (i) any Existing
Indenture Debt that becomes due as a result of an Existing Indenture Covered
Default or as a result of any offer to repurchase or redemption of any Existing
Indenture Debt, (ii) secured Debt that becomes due as a result of the voluntary
sale or transfer of the property or assets securing such Debt, (iii) any
conversion, repurchase or redemption of any Material Debt scheduled by the
terms thereof to occur on a particular date, any conversion of any Material
Debt 

 

 46
 

initiated by a
holder thereof pursuant to the terms thereof or any optional prepayment,
repurchase or redemption of any Material Debt, in each case not subject to any
contingent event or condition related to the creditworthiness, financial
performance or financial condition of the Guarantor or any Subsidiary or
(iv) any repurchase or redemption of any Material Debt pursuant to any put
option exercised by the holder of such Material Debt; provided, that
such put option is exercisable at times specified in the terms of the Material
Debt and not by its terms solely as a result of any contingent event or
condition related to the creditworthiness, financial performance or financial
condition of the Guarantor or the applicable Subsidiaries;

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

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

(j)            the Guarantor or any
Significant Subsidiary shall admit in writing its inability or fail generally
to pay its debts as they become due;

(k)           one or more judgments or
orders for the payment of money in an aggregate amount in excess of $30,000,000
(after deducting amounts covered by insurance, except to the extent that the
insurer providing such insurance has declined such coverage or indemnification)
shall be rendered against the Guarantor or any Subsidiary or any combination
thereof and, within 60 days after entry thereof, such judgment or order is
not discharged or execution thereof stayed pending appeal, or within
60 days after the expiration of any such stay, such judgment or order is
not discharged;

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

(m)          (x) any person or group of
persons (within the meaning of Section 13 or 14 of the Securities Exchange
Act of 1934, as amended) shall have acquired beneficial 

 

 47
 

ownership
(within the meaning of Rule 13d-3 promulgated by the SEC under said Act)
of 40% or more of the outstanding shares of common stock of the Guarantor; or
(y) on the last day of any period of twelve consecutive calendar months, a
majority of members of the board of directors of the Guarantor shall no longer
be composed of individuals (i) who were members of said board of directors
on the first day of such twelve consecutive calendar month period or
(ii) whose election or nomination to said board of directors was approved
by individuals referred to in clause (i) above constituting at the time of
such election or nomination at least a majority of said board of directors;

(n)           any Loan Document shall cease
to be valid and enforceable against any Obligor or Subsidiary Guarantor party
thereto (except for the termination of a Subsidiary Guaranty in accordance with
its terms), or any Obligor or Subsidiary Guarantor shall so assert in writing;
or

(o)           the Borrower (or any permitted
successor pursuant to Section 5.08(a)) shall cease to be a Wholly-Owned
Consolidated Subsidiary of the Guarantor;

then, and in every such event (other than an event
described in clause (h) or (i) of this Article with respect to the
Borrower or the Guarantor), and at any time thereafter during the continuance
of such event, the Administrative Agent shall, at the request of, or may, with
the consent of, the Required Lenders, by notice to the Borrower, take either or
both of the following actions, at the same or different times:  (i) terminate the Commitments, and
thereupon the Commitments shall terminate immediately, and (ii) declare the
unpaid principal amount of all outstanding Loans, all interest accrued and
unpaid thereon, and all other amounts owing or payable hereunder or under any
other Loan Document to be immediately due and payable, and thereupon the
principal amount of all such outstanding Loans together with all such interest
and other amounts so declared to be due and payable, shall become due and
payable immediately, without presentment, demand, protest or other notice of
any kind, all of which are hereby expressly waived by the Obligors; and in case
of any event described in clause (h) or (i) of this Article with respect
to the Borrower or the Guarantor, the Commitments shall automatically terminate
and the principal of the Loans then outstanding, together with accrued interest
thereon and all fees and other obligations of the Borrower accrued under any
Loan Document, shall automatically become due and payable, without presentment,
demand, protest or other notice of any kind, all of which are hereby expressly
waived by the Obligors.

ARTICLE
VII

The Administrative
Agent

Each of the Lenders hereby irrevocably appoints the
Administrative Agent as its agent and authorizes the Administrative Agent to
take such actions on its behalf and to exercise such powers as are delegated to
the Administrative Agent by the terms hereof, together with such actions and
powers as are reasonably incidental thereto.

The Person serving as the Administrative Agent
hereunder shall have the same rights and powers in its capacity as a Lender as
any other Lender and may exercise the same as though it

 

 48
 

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

The Administrative Agent shall not have any duties or
obligations except those expressly set forth herein.  Without limiting the generality of the foregoing,
(a) the Administrative Agent shall not be subject to any fiduciary or other
implied duties, regardless of whether a Default has occurred and is continuing,
(b) the Administrative Agent shall not have any duty to take any discretionary
action or exercise any discretionary powers, except discretionary rights and
powers expressly contemplated hereby that the Administrative Agent is required
to exercise as directed in writing by the Required Lenders (or such other
number or percentage of the Lenders as shall be expressly provided for in
Section 10.02), provided that the Administrative Agent shall not be
required to take any action that, in its opinion or the opinion of its counsel,
may expose the Administrative Agent to liability or that is contrary to this
Agreement, the other Loan Documents or applicable law, and (c) except as
expressly set forth herein, the Administrative Agent shall not have any duty to
disclose, and shall not be liable for the failure to disclose, any information
relating to the Guarantor or any of its Subsidiaries or any of their respective
Affiliates that is communicated to or obtained by the Person serving as the
Administrative Agent or any of its Affiliates in any capacity.  The Administrative Agent shall not be liable
for any action taken or not taken by it (i) with the consent or at the
request of the Required Lenders (or such other number or percentage of the Lenders as
shall be necessary, or as the Administrative Agent shall believe in good faith
shall be necessary, under the circumstances as provided in Section 10.02)
or (ii) in the absence of its own gross negligence or willful
misconduct.  The Administrative Agent
shall be deemed not to have knowledge of any Default unless and until notice
describing such Default is given to the Administrative Agent by the Borrower, a
Lender or the L/C Issuer and the Administrative Agent shall not be responsible
for or have any duty to ascertain or inquire into (i) any statement,
warranty or representation made in or in connection with this Agreement or the
other Loan Documents, (ii) the contents of any certificate, report or
other document delivered hereunder or in connection herewith, (iii) the
performance or observance of any of the covenants, agreements or other terms or
conditions set forth herein or therein or the occurrence of any Default,
(iv) the validity, enforceability, effectiveness or genuineness of this
Agreement or any other agreement, instrument or document or (v) the
satisfaction of any condition set forth in Article IV or elsewhere herein,
other than to confirm receipt of items expressly required to be delivered to
the Administrative Agent.

The Administrative Agent shall be entitled to rely
upon, and shall not incur any liability for relying upon, any notice, request,
certificate, consent, statement, instrument, document or other writing
(including any electronic message, Internet or intranet website posting or
other distribution) believed by it to be genuine and to have been signed, sent
or otherwise authenticated by the proper Person.  The Administrative Agent also may rely upon
any statement made to it orally or by telephone and believed by it to have been
made by the proper Person, and shall not incur any liability for relying
thereon.  In determining compliance with
any condition 

 

 49
 

hereunder to the making of a L/C Credit Extension that
by its terms must be fulfilled to the satisfaction of a Lender and the L/C
Issuer, the Administrative Agent may presume that such condition is
satisfactory to such Lender and the L/C Issuer unless the Administrative Agent
shall have received notice to the contrary from such Lender and the L/C Issuer
prior to the making of such L/C Credit Extension.  The Administrative Agent may consult with
legal counsel (who may be counsel for the Borrower), independent accountants
and other experts selected by it, and shall not be liable for any action taken
or not taken by it in accordance with the advice of any such counsel,
accountants or experts.

The Administrative Agent may perform any and all of
its duties and exercise its rights and powers hereunder by or through any one
or more sub-agents appointed by the Administrative Agent.  The Administrative Agent and any such sub-agent
may perform any and all of its duties and exercise its rights and powers by or
through their respective Related Parties. 
The exculpatory provisions of this Article shall apply to any such sub-agent
and to the Related Parties of the Administrative Agent and any such sub-agent,
and shall apply to their respective activities in connection with the
syndication of the credit facilities provided for herein as well as activities
as Administrative Agent.

The Administrative Agent may at any time give notice
of its resignation to the Lenders, the L/C Issuer and the Borrower.  Upon receipt of any such notice of
resignation, the Required Lenders shall have the right, in consultation with
the Borrower, to appoint a successor, which shall be a commercial bank with an
office in New York, New York, or an Affiliate of any such commercial bank with
an office in New York, New York.  If no
such successor shall have been so appointed by the Required Lenders and shall
have accepted such appointment within 30 days after the retiring
Administrative Agent gives notice of its resignation, then the retiring
Administrative Agent may on behalf of the Lenders, appoint a successor
Administrative Agent meeting the qualifications set forth above, provided
that if the Administrative Agent shall notify the Borrower and the Lenders that
no qualifying Person has accepted such appointment, then such resignation shall
nonetheless become effective in accordance with such notice and (1) the
retiring Administrative Agent shall be discharged from its duties and
obligations hereunder and under the other Loan Documents and (2) all payments,
communications and determinations provided to be made by, to or through the
Administrative Agent shall instead be made by or to each Lender directly, until
such time as the Required Lenders appoint a successor Administrative Agent as
provided for above in this paragraph. 
The successor shall be consented to by the Borrower at all times other
than during the existence of an Event of Default (which consent of the Borrower
shall not be unreasonably withheld or delayed). 
Upon the acceptance of a successor’s appointment as Administrative Agent
hereunder, such successor shall succeed to and become vested with all of the
rights, powers, privileges and duties of the retiring (or retired)
Administrative Agent, and the retiring Administrative Agent shall be discharged
from all of its duties and obligations hereunder (if not already discharged
therefrom as provided above in this paragraph). 
The fees payable by the Borrower to a successor Administrative Agent
shall be the same as those payable to its predecessor unless otherwise agreed
between the Borrower and such successor. 
After the retiring Administrative Agent’s resignation hereunder and
under the other Loan Documents, the provisions of this Article and
Section 10.03 shall continue in effect for the benefit of such retiring
Administrative Agent, its sub-agents and their respective Related Parties

 

 50
 

in respect of any actions taken or omitted to be taken
by any of them while the retiring Administrative Agent was acting as
Administrative Agent.

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

The Lenders hereby irrevocably authorize the
Administrative Agent, at its option and in its discretion, to release any
Subsidiary Guarantor from its obligations under such Subsidiary Guarantor’s
Subsidiary Guaranty (i) if such Person ceases to exist or to be a Subsidiary
(or substantially contemporaneously with such release will cease to exist or to
be a Subsidiary), in each case as a result of a transaction permitted
hereunder, or (ii) otherwise in accordance with Section 4.06(b) of the
relevant Subsidiary Guaranty.

The L/C Issuer
shall act on behalf of the Lenders with respect to the Letter of Credit and the
documents associated therewith, and the L/C Issuer shall have all of the
benefits and immunities (i) provided to the Administrative Agent in this Article
VII with respect to any acts taken or omissions suffered by the L/C Issuer
in connection with the Letter of Credit or proposed to be issued by it and the
Letter of Credit Application pertaining to the issuance of the Letter of Credit
as fully as if the term “Administrative Agent” as used in this Article VII
included the L/C Issuer with respect to such acts or omissions, and (ii) as
additionally provided herein with respect to the L/C Issuer.

ARTICLE
VIII

Guarantee

Section 8.01         The Guarantee.  The
Guarantor hereby unconditionally and irrevocably guarantees the full and
punctual payment when due (whether at stated maturity, by mandatory prepayment,
by acceleration or otherwise) of the principal of and interest on the Loans,
the Notes, the L/C Advances and all other amounts whatsoever at any time or
from time to time payable or becoming payable under this Agreement or the other
Loan Documents.  This is a continuing
guarantee and a guarantee of payment and not merely of collection.  Upon failure by the Borrower to pay
punctually any such amount when due as aforesaid, the Guarantor shall forthwith
on demand pay the amount not so paid at the place and in the manner specified
in this Agreement.

Section 8.02         Guarantee Unconditional. 
The obligations of the Guarantor hereunder shall be unconditional and
absolute, and, without limiting the generality of the foregoing, shall not be
released, discharged or otherwise affected, at any time by:

 

 51
 

 

(a)           any extension, renewal,
settlement, compromise, waiver or release in respect of any obligation of the
Borrower under any Loan Document, by operation of law or otherwise;

(b)           any modification or amendment
of or supplement to any Loan Document;

(c)           any release, impairment,
non-perfection or invalidity of any direct or indirect security for any obligation
of the Borrower under any Loan Document;

(d)           any change in the corporate
existence, structure or ownership of the Borrower, or any insolvency,
bankruptcy, reorganization or other similar proceeding affecting the Borrower
or its assets or any resulting release or discharge of any obligation of the
Guarantor or the Borrower contained in any Loan Document;

(e)           the existence of any claim,
set-off or other rights which the Guarantor may have at any time against the
Borrower, the Administrative Agent, any Lender or any other Person, whether in
connection herewith or any unrelated transactions, provided that nothing
herein shall prevent the assertion of any such claim by separate suit or
compulsory counterclaim;

(f)            any invalidity or
unenforceability relating to or against the Borrower for any reason of any Loan
Document, or any provision of applicable law or regulation purporting to
prohibit the payment by the Borrower, in the currency and funds and at the time
and place specified herein, of any amount payable by it under any Loan
Document; or

(g)           any other act or omission to
act or delay of any kind by the Borrower, the Administrative Agent, any Lender
or any other Person, or any other circumstance whatsoever which might, but for
the provisions of this paragraph, constitute a legal or equitable discharge or
defense of a guarantor or surety.

Section 8.03         Discharge Only upon Payment in Full; Reimbursement in Certain
Circumstances.  The guarantee
and other agreements in this Article VIII shall remain in full force and effect
until the Commitments shall have terminated, no Letter of Credit shall be
outstanding and the principal of and interest on the Loans, the Notes and all
other amounts whatsoever payable by the Borrower under any Loan Document shall
have been finally paid in full.  If at
any time any payment of any such amount payable by the Borrower under any Loan
Document is rescinded or must be otherwise restored or returned upon the
insolvency, bankruptcy or reorganization of the Borrower or otherwise, the Guarantor’s
obligations hereunder with respect to such payment shall be reinstated at such
time as though such payment had been due but not made at such time.

Section 8.04         Waiver by the Guarantor. 
The Guarantor irrevocably waives acceptance hereof, presentment, demand,
protest and any notice not provided for herein, as well as any requirement that
at any time any action be taken by any Person against the Borrower or any other
Person.

Section 8.05         Subrogation.  Upon
making any payment hereunder with respect to the Borrower, the Guarantor shall
be subrogated to the rights of the payee against the

 

 52
 

Borrower with
respect to such payment; provided that the Guarantor shall not enforce
any payment by way of subrogation until all amounts of principal of and interest
on the Loans and all other amounts payable by the Borrower under any Loan
Document has been paid in full and the Commitments and the Letters of Credit
have been terminated.

Section 8.06         Stay of Acceleration. 
In the event that acceleration of the time for payment of any amount
payable by the Borrower under any Loan Document is stayed upon insolvency,
bankruptcy or reorganization of the Borrower, all such amounts otherwise
subject to acceleration under the terms of this Agreement shall nonetheless be
payable by the Guarantor hereunder forthwith on demand by the Required Lenders.

ARTICLE
IX

Yield Protection,
Illegality and Taxes

Section 9.01         Alternate Rate of Interest. 
If prior to the commencement of any Interest Period for a Eurodollar
Loan:

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

(b)           the Administrative Agent is
advised by the Required Lenders that the LIBO Rate for such Interest Period
(together with any amounts payable pursuant to Section 9.03 or 9.05) will
not adequately and fairly reflect the cost to such Lenders of making or
maintaining their Loans for such Interest Period;

then the Administrative Agent shall give notice
thereof to the Borrower and the Lenders by telephone or facsimile or electronic
mail as promptly as practicable thereafter and, until the Administrative Agent
notifies the Borrower and the Lenders that the circumstances giving rise to
such notice no longer exist, (i) any Rate Notice that requests the
conversion of any Loan to, or continuation of any Loan as, a Eurodollar Loan
shall be ineffective and (ii) if any Loan Request requests a Eurodollar
Loan, such Loan shall be made as an ABR Loan. 
In the case of clause (b) above, during any such period of suspension
each Lender shall, from time to time upon request from the Borrower, certify
its cost of funds for each Interest Period to the Borrower and the
Administrative Agent as soon as practicable (but in any event not later than 10
Business Days after any such request).

Section 9.02         Illegality. 
Notwithstanding any other provision of any Loan Document, if any Lender
shall notify the Administrative Agent (and provide to the Borrower an opinion
of counsel to the effect) that the introduction of or any change in or in the
interpretation of any law or regulation makes it unlawful, or any central bank
or other governmental authority asserts that it is unlawful, for such Lender or
its lending office for Eurodollar Loans to perform its obligations hereunder to
make Eurodollar Loans or to fund or maintain Eurodollar Loans hereunder,
(i) each Eurodollar Loan of such Lender will automatically, upon such
demand, convert into an ABR Loan and (ii) the obligation of such Lender to
make or continue, or to convert ABR Loans into, Eurodollar Loans shall be
suspended until the Administrative Agent 

 

 53
 

shall notify
the Borrower and such Lender that the circumstances causing such suspension no
longer exist and such Lender shall make the ABR Loans in the amount and on the
dates that it would have been requested to make Eurodollar Loans had no such
suspension been in effect.

Section 9.03         Increased
Costs.

(a)           If any Change in Law shall:

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

(ii)         impose on any Lender or the London
interbank market any other condition affecting any Loan Document or Eurodollar
Loans made by such Lender;

and the result of any of the foregoing has been to
increase the cost to such Lender of making or maintaining any Eurodollar Loan
(or of maintaining its obligation to make any such Loan) or to reduce the
amount of any sum received or receivable by such Lender hereunder (whether of
principal, interest or otherwise) (excluding any such increased costs or
reduction in amount resulting from Taxes or Other Taxes, as to which
Section 9.05 shall govern, or resulting from reserve commitments
contemplated by Section 9.03(c)), then from time to time within
30 days of written demand therefor (subject to Section 9.06) the
Borrower will pay to such Lender such additional amount or amounts as will
compensate such Lender for such additional costs incurred or reduction
suffered.

(b)           If any Lender determines that
any Change in Law regarding capital requirements has the effect of reducing the
rate of return on such Lender’s capital or on the capital of such Lender’s holding
company, if any, as a consequence of any Loan Document or the Loans made by
such Lender, to a level below that which such Lender or such Lender’s holding
company could have achieved but for such Change in Law (taking into
consideration such Lender’s policies and the policies of such Lender’s holding
company with respect to capital adequacy), then from time to time within
30 days of written demand therefor (subject to Section 9.06) the
Borrower will pay to such Lender such additional amount or amounts as will
compensate such Lender or such Lender’s holding company for any such reduction
suffered.

(c)           At any time that any Lender is
required to establish or maintain reserves in respect of its Eurodollar Loans
under FRB Regulation D, such Lender may require the Borrower to pay,
contemporaneously with each payment of interest on a Eurodollar Loan made by
such Lender, additional interest on such Eurodollar Loan at a rate per annum
determined by such Lender be sufficient to compensate it for the cost to it of
maintaining, or the reduction in its total return in respect of, such
Eurodollar Loan, up to but not exceeding the excess of (i) (A) the applicable
LIBO Rate divided by (B) one minus the Eurodollar Reserve Percentage, minus
(ii) the applicable LIBO Rate.  Any
Lender wishing to require payment of such additional interest (x) shall so
notify the Borrower and the Administrative Agent, in which case such additional
interest on the Eurodollar Loans of such Lender shall be payable to such Lender
at the time and place indicated at which interest otherwise is payable on such
Eurodollar Loan, with respect to each Interest Period commencing at least three
Business Days after the giving of such 

 

 54
 

notice and
(y) shall notify the Borrower at least five Business Days prior to each
date on which interest is payable on the Eurodollar Loans of the amount then
due it under this Section.

(d)           Failure or delay on the part
of any Lender to demand compensation pursuant to this Section shall not
constitute a waiver of such Lender’s right to demand such compensation; provided
that the Borrower shall not be required to compensate a Lender pursuant to this
Section for any increased costs or reductions incurred more than
90 days prior to the date that such Lender notifies the Borrower of the
Change in Law giving rise to such increased costs or reductions and of such
Lender’s intention to claim compensation therefor.

Section 9.04         Break Funding Payments. 
In the event of (a) the payment of any principal of any Eurodollar Loan
other than on the last day of an Interest Period applicable thereto (including
as a result of an Event of Default), (b) the conversion of any Eurodollar Loan
other than on the last day of the Interest Period applicable thereto, (c) the
failure to convert, continue or prepay any Eurodollar Loan on the date
specified in any oral or written notice given pursuant hereto or (d) the
assignment of any Eurodollar Loan other than on the last day of the Interest
Period applicable thereto as a result of a request by the Borrower pursuant to
Section 10.04(e), then, in any such event, the Borrower shall compensate
each Lender for the loss, cost and expense attributable to such event
(including any loss or expense arising from the redeployment of funds obtained
by it to maintain such Eurodollar Loan or from fees payable to terminate the
deposits from which such funds were obtained, but excluding any loss of
anticipated profits) within 10 days of written demand therefor (subject to
Section 9.06).

Section 9.05         Taxes.

(a)           Any and all payments by or on
account of any obligation of the Borrower under any Loan Document shall be made
free and clear of and without deduction for any Indemnified Taxes or Other
Taxes; provided that if the Borrower shall be required to deduct any
Indemnified Taxes or Other Taxes from such payments, then (i) the sum
payable shall be increased as necessary so that after making all required
deductions (including deductions applicable to additional sums payable under
this Section) the Administrative Agent, the L/C Issuer or applicable Lender (as
the case may be) receives an amount equal to the sum it would have received had
no such deductions been made, (ii) the Borrower shall make such deductions
and (iii) the Borrower shall pay the full amount deducted to the relevant
Governmental Authority in accordance with applicable law.

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

(c)           The Borrower shall pay and
indemnify, defend and hold harmless the Administrative Agent, the L/C Issuer
and each Lender within 30 days after written demand therefor (subject to
Section 9.06), for the full amount of any Indemnified Taxes or Other Taxes
required to be paid by the Administrative Agent or such Lender, as the case may
be, on or with respect to any payment by or on account of any obligation of the
Borrower under any Loan Document (including Indemnified Taxes or Other Taxes
imposed or asserted on or attributable to amounts payable under this Section)
and any penalties, interest and reasonable expenses arising 

 

 55
 

therefrom or
with respect thereto, whether or not such Indemnified Taxes or Other Taxes were
correctly or legally imposed or asserted by the relevant Governmental
Authority.  As soon as practicable after
any payment of Indemnified Taxes or Other Taxes to a Governmental Authority by
the Administrative Agent, the L/C Issuer or such Lender, the Administrative
Agent, the L/C Issuer or such Lender, as the case may be, shall deliver to the
Borrower the original or a certified copy of a receipt issued by such
Governmental Authority evidencing such payment or other evidence of such
payment reasonably satisfactory to the Borrower.

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

(e)           Any Foreign Lender that is
entitled to an exemption from or reduction of United States withholding tax
with respect to payments under this Agreement shall deliver to the Borrower
(with a copy to the Administrative Agent), at the time or times prescribed by
applicable law, such properly completed and executed documentation prescribed
by applicable law or reasonably requested by the Borrower as will permit such
payments to be made without withholding or at a reduced rate.

(f)            If the Administrative Agent,
the L/C Issuer or a Lender determines, in its good faith judgment, that it has
received a refund of any Taxes or Other Taxes as to which it has been
indemnified by the Borrower or with respect to which the Borrower has paid
additional amounts pursuant to this Section 9.05, it shall pay over such
refund to the Borrower (but only to the extent of indemnity payments made, or
additional amounts paid, by the Borrower under this Section 9.05 with
respect to the Taxes or Other Taxes giving rise to such refund), net of all
out-of-pocket expenses of the Administrative Agent, the L/C Issuer or such
Lender and without interest (other than any interest paid by the relevant
Governmental Authority with respect to such refund); provided that the
Borrower, upon the request of the Administrative Agent, the L/C Issuer or such
Lender, agrees to repay the amount paid over to the Borrower (plus any
penalties, interest or other charges imposed by the relevant Governmental
Authority) to the Administrative Agent, the L/C Issuer or such Lender in the
event the Administrative Agent, the L/C Issuer or such Lender is required to
repay such refund to such Governmental Authority.  This Section shall not be construed to
require the Administrative Agent, the L/C Issuer or any Lender to make
available its tax returns (or any other information relating to its taxes which
it deems confidential) to the Borrower or any other Person.

Section 9.06         Matters Applicable to all Requests for Compensation.  If any Lender, the L/C Issuer or the
Administrative Agent is claiming compensation under Section 9.03, 9.04 or
9.05, it shall deliver to the Administrative Agent, who shall deliver to the
Borrower contemporaneously with the demand for payment, a certificate setting
forth in reasonable detail the calculation of any additional amount or amounts
to be paid to it hereunder and the basis used to determine such amounts and
such certificate shall be conclusive in the absence of manifest error.  In determining such amount, such Lender, the
L/C Issuer or the Administrative Agent may use any reasonable averaging and
attribution methods.  In any such
certificate claiming 

 

 56
 

compensation
under Section 9.03(b), such Lender shall certify that the claim for
additional amounts referred to therein is generally consistent with such Lender’s
treatment of similarly situated customers of such Lender whose transactions
with such Lender are similarly affected by the change in circumstances giving
rise to such payment, but such Lender shall not be required to disclose any
confidential or proprietary information therein.  This Section shall not be construed to
require the Administrative Agent, the L/C Issuer or any Lender to make
available its tax returns (or any other information relating to its taxes which
it deems confidential) to the Borrower or any other Person.

Section 9.07         Mitigation Obligations.  If
any Lender requests compensation under Section 9.03, or if the Borrower is
required to pay any additional amount to any Lender or any Governmental
Authority for the account of any Lender pursuant to Section 9.05, then
such Lender shall use reasonable efforts to designate a different lending
office for funding or booking its Loans hereunder or to assign its rights and
obligations hereunder to another of its offices, branches or affiliates, if, in
the judgment of such Lender, such designation or assignment (i) would
eliminate or reduce amounts payable pursuant to Section 9.03 or 9.05, as
the case may be, in the future and (ii) would not subject such Lender to
any unreimbursed cost or expense and would not otherwise be disadvantageous to
such Lender.  The Borrower hereby agrees
to pay all reasonable costs and expenses incurred by any Lender in connection
with any such designation or assignment.

ARTICLE
X

Miscellaneous

Section 10.01       Notices.

(a)           Except in the case of notices
and other communications expressly permitted to be given by telephone or by
other means of communication (and subject to paragraph (b) below), all notices
and other communications provided for herein shall be in writing and shall be
delivered by hand or overnight courier service, mailed by certified or
registered mail or sent by facsimile or electronic mail, as follows:

(i)          if to the Borrower

Tyco International Finance S.A.

29 avenue de la Porte Neuve

L-2227 Luxembourg

Attn:  Kevin O’Kelly-Lynch

Tel: +352  266378

Fax: +352 266378 91

email: kokellylynch@tyco.com

with a copy to:

Tyco International Management Company

9 Roszel Rd.

Princeton, NJ  08540

Attention:  General Counsel

Tel:  609-720-4200

Fax:  609-720-4326

(ii)         if to the Guarantor

Tyco International Ltd.

90 Pitts Bay Road, Second Floor

Pembroke HM 08, Bermuda

Attention: Executive Vice President and General Counsel

Tel:  441-292-8674

Fax: 441-295-9647

 

 57
 

 

(iii)        if to the Administrative Agent, to its
applicable address set forth on Schedule 10.01;

(iv)       if to the L/C Issuer, to its applicable
address set forth on Schedule 10.01;

and

(v)        if to any other Lender, to it at its
address (or facsimile number or electronic mail address telephone number) set
forth on Schedule 10.01 or in the Assignment and Assumption pursuant to
which such Lender becomes a party to this Agreement or to such other address,
facsimile number, electronic mail address or telephone number as shall be
designated by such party in a notice to the Borrower and the Administrative
Agent.

(b)           Notices and other
communications to the Administrative Agent, the L/C Issuer and the Lenders
hereunder may be delivered or furnished by electronic communications .  In addition to provisions of this Agreement
expressly specifying that notices and other commitments may be delivered
telephonically or electronically, each of the Administrative Agent or the
Borrower may, in its discretion, agree to accept notices and other
communications to it hereunder by electronic communications; provided
that approval of such procedures may be limited to particular notices or
communications.

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

(d)           The Administrative Agent, the
L/C Issuer and the Lenders shall be entitled to rely and act upon any notices
purportedly given by or on behalf of the Borrower.

 

 58

 

Section 10.02       Waivers;
Amendments.

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

(b)           Neither this Agreement nor the
Notes, the Borrower Assumption Agreement any Letter of Credit Application or
any Subsidiary Guaranty or any provision hereof or thereof may be waived,
amended or modified except pursuant to an agreement or agreements in writing
entered into by the Obligors, the Subsidiary Guarantors (to the extent
applicable) and the Required Lenders or by the Obligors, the Subsidiary
Guarantors (to the extent applicable) and the Administrative Agent with the
consent of the Required Lenders; provided that no such agreement shall
(i) increase the Commitment of any Lender without the written consent of
such Lender, (ii) reduce the principal amount of any Loan or reduce the
rate of interest thereon, or reduce any fees payable hereunder, without the
written consent of each Lender directly affected thereby, (iii) postpone
the scheduled date of payment of the principal amount of any Loan or any
interest thereon, or any fees payable hereunder, or reduce the amount of, waive
or excuse any such payment, or postpone the scheduled date of expiration of any
Commitment, without the written consent of each Lender directly affected
thereby, (iv) change Section 2.13(b) or (c) in a manner that would
alter the pro rata sharing of payments required thereby, without the written
consent of each Lender, (v) release the Guarantor from its obligations under
Article VIII or any Subsidiary Guarantor which is a Significant Subsidiary
from its obligations under its Subsidiary Guaranty, without the written consent
of each Lender, (vi) change any of the provisions of this Section or
the definition of “Required Lenders” or any other provision hereof
specifying the number or percentage of Lenders required to waive, amend or
modify any rights hereunder or make any determination or grant any consent
hereunder, without the  written consent
of each Lender; provided  further that no such agreement shall
amend, modify or otherwise affect the rights or duties of the Administrative
Agent under any Loan Document without the prior written consent of the
Administrative Agent; and provided, further, that no such
agreement shall amend, modify or otherwise affect the rights or duties of the
L/C Issuer under any Loan Document without the prior written consent of the L/C
Issuer.

Section 10.03       Expenses;
Indemnity; Damage Waiver.

(a)           The Borrower shall pay
(i) all reasonable out of pocket expenses incurred by the Administrative
Agent , the L/C Issuer and their Affiliates, including the reasonable fees, 

 59
 

charges and
disbursements of counsel for the Administrative Agent, in connection with the
preparation, negotiation, execution, delivery and administration of this
Agreement and the other Loan Documents or any amendments, modifications or
waivers of the provisions hereof and thereof (whether or not the transactions
contemplated hereby or thereby shall be consummated), and (ii) while a
Default has occurred and is continuing, all out-of-pocket expenses incurred by
the Administrative Agent, the L/C Issuer and the Lenders, including reasonable
fees, charges and disbursements of counsel in connection with the enforcement
or protection of its rights (A) in connection with this Agreement and the
other Loan Documents, including its rights under this Section, or (B) in
connection with the Loans made hereunder, including all such out-of-pocket
expenses incurred during any workout, or restructuring negotiations in respect
of such Loans.

(b)           The Borrower shall indemnify
the Administrative Agent, the L/C Issuer and each Lender, and each Related
Party of any of the foregoing Persons (each such Person being called an “Indemnitee”)
against, and hold each Indemnitee harmless from, any and all losses, claims,
damages, liabilities and related expenses, including the reasonable fees,
charges and disbursements of any counsel for any Indemnitee, incurred by or
asserted against any Indemnitee arising out of, in connection with, or as a
result of any actual or prospective claim, litigation, investigation or
proceeding (whether based on contract, tort or any other theory and regardless
of whether any Indemnitee is a party thereto) relating to (A) the
execution or delivery of this Agreement or any other Loan Document or any
agreement or instrument contemplated hereby or thereby, the performance by the
parties hereto of their respective obligations hereunder or the consummation of
the Transactions or any other transactions contemplated hereby, (B) any
Loan or the use of the proceeds therefrom, (C) any actual or alleged
presence or release of Hazardous Materials on or from any property owned or
operated by the Guarantor or any of its Subsidiaries, or any Environmental
Liability related in any way to the Guarantor or any of its Subsidiaries; provided
that such indemnity shall not, as to any Indemnitee, be available to the extent
that such losses, claims, damages, liabilities or related expenses (x) have
resulted from the gross negligence or willful misconduct of such Indemnitee, as
determined by a court of competent jurisdiction by final and nonappealable
judgment (y) resulted from a breach of the confidentiality provisions contained
in Section 10.14 by such Indemnitee or (z) resulted from a dispute solely
among the Lenders that does not arise from any Obligor’s or Subsidiary
Guarantor’s breach of its obligations under any Loan Document or applicable
law.  If any claim, litigation,
investigation or proceeding is asserted against any Indemnitee, such Indemnitee
shall, to the extent permitted by applicable law or regulation in the opinion
of its counsel, notify the Borrower as soon as reasonably practicable, but the
failure to so promptly notify the Borrower shall not affect the Borrower’s
obligations under this Section unless such failure materially prejudices
the Borrower’s right to participate in the contest of such claim, litigation,
investigation or proceeding, as hereinafter provided.  If requested by the Borrower in writing, such
Indemnitee shall make reasonable good faith efforts to contest the validity,
applicability and amount of such claim, litigation, investigation or proceeding
and, except to the extent prohibited by applicable law or regulations or as
would otherwise be unreasonable in the circumstances or contrary to the
internal policies of the Indemnitee as generally applied, shall permit the
Borrower to participate in such contest. 
Any Indemnitee that proposes to settle or compromise any claim,
litigation, investigation or proceeding for which the Borrower may be liable
for payment of indemnity hereunder shall give the Borrower written notice of
the terms of such proposed settlement or compromise reasonably in advance of
settling or compromising such claim or 

 60
 

proceeding and
shall obtain the Borrower’s prior written consent (not to be unreasonably
withheld).

(c)           To the extent that the
Borrower fails to pay any amount required to be paid by it to the
Administrative Agent or any Related Party thereof under paragraph (a) or (b) of
this Section, each Lender severally agrees to pay to the Administrative Agent
or such Related Party, as the case may be, such Lender’s Applicable Percentage
(determined as of the time that the applicable unreimbursed expense or
indemnity payment is sought) of such unpaid amount; provided that the
unreimbursed expense or indemnified loss, claim, damage, liability or related
expense, as the case may be, was incurred by or asserted against the Administrative
Agent in its capacity as such, or against any Related Party acting for the
Administrative Agent in connection with such capacity.

(d)           To the fullest extent
permitted by applicable law, the Borrower shall not assert, and hereby waives,
any claim against any Indemnitee, on any theory of liability, for special,
indirect, consequential or punitive damages (as opposed to direct or actual
damages) arising out of, in connection with, or as a result of, this Agreement
or any other Loan Document or any agreement or instrument contemplated hereby
or thereby, the Transactions, any Loan or the use of the proceeds thereof.  No Indemnitee referred to in paragraph (b)
above shall be liable for any damages arising from the use by unintended
recipients of any information or other materials distributed by it through
telecommunications, electronic or other information transmission systems in
connection with this Agreement or the other Loan Documents or the Transactions.

(e)           All amounts due under this
Section shall be payable not later than 10 Business Days after written
demand therefor.

Section 10.04       Successors
and Assigns.

(a)           The provisions of this
Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns permitted hereby, except that
(i) other than as contemplated by Section 5.08, neither the Guarantor
nor the Borrower may assign or otherwise transfer any of its rights or
obligations hereunder without the prior written consent of the Administrative
Agent, the L/C Issuer and each Lender (and any attempted assignment or transfer
by the Guarantor or the Borrower without such consent shall be null and void)
and (ii) no Lender may assign or otherwise transfer its rights or
obligations hereunder except in accordance with this Section.  Nothing in this Agreement, expressed
or implied, shall be construed to confer upon any Person (other than the
parties hereto, their respective successors and assigns permitted hereby,
Participants (to the extent provided in paragraph (c) of this Section) and, to
the extent expressly contemplated hereby, the Related Parties of each of the
Administrative Agent, the L/C Issuer and the Lenders) any legal or equitable
right, remedy or claim under or by reason of this Agreement.

(b)           (i)            Subject to the conditions set forth in paragraph
(b)(ii) below, any Lender may assign to one or more assignees (other than
a natural Person) all or a portion of its rights and obligations under this
Agreement (including all or a portion of its Commitment and 

 61
 

the Loans at
the time owing to it) with the prior written consent (such consent not to be
unreasonably withheld) of:

(A)          the
Borrower, provided that no consent of the Borrower shall be required for
an assignment to a Lender, an Affiliate of a Lender, an Approved Fund or, if an
Event of Default under clause (a), (b), (h), (i) or (j) of Article VI has
occurred and is continuing, any other Person (other than a natural person); and

(B)           the
Administrative Agent, provided that no consent of the Administrative
Agent shall be required for an assignment to a Lender, an Affiliate of a Lender
or for an assignment by a Lender to an Approved Fund with respect to such
Lender.

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

(A)          except in the case of
an assignment to a Lender or an Affiliate of a Lender or an assignment of the
entire remaining amount of the assigning Lender’s Commitment or Loans, the
amount of the Commitment or Loans of the assigning Lender subject to each such
assignment, and the amount of the Commitment or Loans of the assigning Lender
remaining after each such assignment (in each case determined as of the date
the Assignment and Assumption with respect to such assignment is delivered to
the Administrative Agent), in each case shall not be less than $10,000,000
unless each of the Borrower and the Administrative Agent otherwise consent
(each such consent not to be unreasonably withheld or delayed), provided
that no such consent of the Borrower shall be required if an Event of Default
under clause (a), (b), (h), (i) or (j) of Article VI has occurred and is
continuing;

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

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

For the purposes of this Section 10.04(b), the
term “Approved Fund” has the following meaning:

“Approved Fund” means any Person (other than a
natural person) that is (or will be) engaged in making, purchasing, holding or
investing in bank loans and similar extensions of credit in the ordinary course
of its business and that is administered or managed by (a) a Lender, (b) an
Affiliate of a Lender or (c) an entity or an Affiliate of an entity that
administers or manages a Lender.

 62
 

(iii)        Subject to acceptance and recording
thereof pursuant to paragraph (b)(iv) of this Section, from and after the
effective date specified in each Assignment and Assumption, the assignee
thereunder shall be a party to this Agreement and, to the extent of the
interest assigned by such Assignment and Assumption, have the rights and
obligations of a Lender under this Agreement, and the assigning Lender
thereunder shall, to the extent of the interest assigned by such Assignment and
Assumption, be released from its obligations under this Agreement (and, in the
case of an Assignment and Assumption covering all of the assigning Lender’s
rights and obligations under this Agreement, such Lender shall cease to be a
party hereto but shall continue to be entitled to the benefits of
Sections 9.03, 9.04, 9.05 and 10.03). 
Upon request, the Borrower (at its expense) shall execute and deliver a
Note to the assignee Lender, and the Note theretofore held by the assignor
Lender shall be returned to the Borrower in exchange for a new Note, payable to
the assignee Lender and reflecting its retained interest (if any) hereunder.  Any assignment or transfer by a Lender of
rights or obligations under this Agreement that does not comply with this
Section 10.04 shall be treated for purposes of this Agreement as a sale by
such Lender of a participation in such rights and obligations in accordance
with paragraph (c) of this Section.

(iv)       The Administrative Agent, acting solely
for this purpose as an agent of the Borrower, shall maintain at one of its
offices a copy of each Assignment and Assumption delivered to it and a register
for the recordation of the names and addresses of the Lenders, and the
Commitment of, and principal amount of the Loans owing to, each Lender pursuant
to the terms hereof from time to time (the “Register”).  The entries in the Register shall be
conclusive, and the Borrower, the Administrative Agent and the Lenders may
treat each Person whose name is recorded in the Register pursuant to the terms
hereof as a Lender hereunder for all purposes of this Agreement,
notwithstanding notice to the contrary. 
The Register shall be available for inspection by the Borrower and any
Lender, at any reasonable time and from time to time upon reasonable prior
notice.

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

(c)           (i)            Any Lender may, without the consent of, or notice to, the
Borrower or the Administrative Agent, sell participations to any Person (other
than a natural Person or the Borrower or any of the Borrower’s Affiliates or
subsidiaries) (each a “Participant”) in all or a portion of such
Lender’s rights and obligations under this Agreement (including all or a
portion of its Commitment and the Loans owing to it); provided that (A)
such Lender’s obligations under this Agreement shall remain unchanged, (B) such
Lender shall remain solely responsible to the other parties hereto for the performance
of such obligations and (C) the Borrower, the Administrative Agent and the
other Lenders shall continue to deal solely and 

 63
 

 

directly with
such Lender in connection with such Lender’s rights and obligations under this
Agreement.  Any agreement or instrument
pursuant to which a Lender sells such a participation shall provide that such
Lender shall retain the sole right to enforce this Agreement and to approve any
amendment, modification or waiver of any provision of this Agreement; provided
that such agreement or instrument may provide that such Lender will not,
without the consent of the Participant, agree to any amendment, modification or
waiver described in the first proviso to Section 10.02(b) that affects
such Participant.  Subject to paragraph (d)
of this Section, the Borrower agrees that each Participant shall be entitled to
the benefits of Sections 9.03, 9.04 and 9.05  to
the same extent as if it were a Lender and had acquired its interest by
assignment pursuant to paragraph (b) of this Section.  To the extent permitted by law, each
Participant also shall be entitled to the benefits of Section 10.08 as
though it were a Lender, provided such Participant agrees to be subject to
Section 2.13(c)  as though it
were a Lender.

(d)           A Participant shall not be
entitled to receive any greater payment under Sections 9.03 or 9.05  than the applicable Lender would have been entitled to
receive with respect to the participation sold to such Participant, unless the
sale of the participation to such Participant is made with the Borrower’s prior
written consent.  A Participant that
would be a Foreign Lender if it were a Lender shall not be entitled to the
benefits of Section 9.05 unless the Borrower is notified of the participation
sold to such Participant and such Participant agrees, for the benefit of the
Borrower, to comply with Section 9.05(e)  as
though it were a Lender.

(e)           Any Lender may at any time
pledge or assign a security interest in all or any portion of its rights under
this Agreement (including under its Note, if any) to secure obligations of such
Lender, including without limitation any pledge or assignment to secure
obligations to a Federal Reserve Bank, and this Section shall not apply to
any such pledge or assignment of a security interest; provided that no
such pledge or assignment of a security interest shall release a Lender from
any of its obligations hereunder or substitute any such pledgee or assignee for
such Lender as a party hereto.

(f)            If (w) any Lender requests
compensation under Section 9.03, (x) the Borrower is required to pay any
additional amount to any Lender or any Governmental Authority for the account
of any Lender pursuant to Section 9.05, (y) if any Lender defaults in its
obligation to fund Loans hereunder or (z) if any Lender refuses to consent to
any amendment or waiver under this Agreement which pursuant to the terms of
Section 10.02 requires the consent of all Lenders or all affected Lenders
and with respect to which the Required Lenders shall have granted their
consent, then the Borrower may, at its sole expense and effort, upon notice to
such Lender and the Administrative Agent, require such Lender to assign and
delegate, without recourse (in accordance with and subject to the restrictions
contained above in Section 10.04), all its interests, rights and
obligations under this Agreement to an assignee that shall assume such
obligations (which assignee may be another Lender, if a Lender accepts such
assignment); provided that (i) such assigning Lender shall have
received payment of an amount equal to the outstanding principal of its Loans,
accrued interest thereon, accrued fees and all other amounts payable to it
hereunder, from the assignee (to the extent of such outstanding principal and
accrued interest and fees) or the Borrower (in the case of all other amounts)
and (ii) in the case of any such assignment resulting from a claim for
compensation under Section 9.03 or payments required to be made pursuant
to Section 9.05, such assignment will result in a reduction in such 

 64
 

compensation
or payments.  A Lender shall not be
required to make any such assignment and delegation if, prior thereto, as a
result of a waiver by such Lender or otherwise, the circumstances entitling the
Borrower to require such assignment and delegation cease to apply.

(g)           Notwithstanding anything to
the contrary contained herein, any Lender (a “Granting Lender”) may
grant to a special purpose funding vehicle identified as such in writing from
time to time by the Granting Lender to the Administrative Agent and the
Borrower (an “SPC”) the option to provide all or any part of any Loan
that such Granting Lender would otherwise be obligated to make pursuant to this
Agreement; provided that (i) nothing herein shall constitute a
commitment by any SPC to fund any Loan, and (ii) if an SPC elects not to
exercise such option or otherwise fails to make all or any part of such Loan,
the Granting Lender shall be obligated to make such Loan pursuant to the terms
hereof.  Each party hereto hereby agrees
that (i) neither the grant to any SPC nor the exercise by any SPC of such
option shall increase the costs or expenses or otherwise increase or change the
obligations of the Borrower under this Agreement (including its obligations
under Section 9.03), (ii) no SPC shall be liable for any indemnity or
similar payment obligation under this Agreement for which a Lender would be
liable, and (iii) the Granting Lender shall for all purposes, including the
approval of any amendment, waiver or other modification of any provision of any
Loan Document, remain the lender of record hereunder.  The making of a Loan by an SPC hereunder
shall utilize the Commitment of the Granting Lender to the same extent, and as
if, such Loan were made by such Granting Lender.  In furtherance of the foregoing, each party
hereto hereby agrees (which agreement shall survive the termination of this
Agreement) that, prior to the date that is one year and one day after the
payment in full of all outstanding commercial paper or other senior debt of any
SPC, it will not institute against, or join any other Person in instituting
against, such SPC any bankruptcy, reorganization, arrangement, insolvency, or
liquidation proceeding under the laws of the United States or any State
thereof.  Notwithstanding anything to the
contrary contained herein, any SPC may (i) with notice to, but without prior
consent of the Borrower and the Administrative Agent and with the payment of a
processing fee of $3,500, assign all or any portion of its right to receive
payment with respect to any Loan to the Granting Lender and (ii) disclose on a
confidential basis any non-public information relating to its funding of Loans
to any rating agency, commercial paper dealer or provider of any surety or
Guarantee or credit or liquidity enhancement to such SPC.

(h)           Notwithstanding anything to the contrary
contained herein, any Lender that is a Fund may create a security interest in
all or any portion of the Loans owing
to it and the Note, if any, held by it to the trustee for holders of
obligations owed, or securities issued, by such Fund as security for such
obligations or securities, provided that unless and until such trustee
actually becomes a Lender in compliance with the other provisions of this
Section 10.04, (i) no such pledge shall release the pledging Lender from
any of its obligations under the Loan Documents and (ii) such trustee shall not be entitled to exercise any of
the rights of a Lender under the Loan
Documents even though such trustee may have acquired ownership rights with
respect to the pledged interest through foreclosure or otherwise.

(i)            [The L/C Issuer may assign all or a
portion of its obligations only to (x) any affiliate with a long-term credit
rating no lower than that of the assignor from each of Moody’s Investor’s
Service, Inc. (“Moody’s”) and Standard & Poor’s Rating Services (“S&P”)

 65
 

(or their respective successors) and with
market acceptance by beneficiaries of letters of credit similar to that of the
L/C Issuer in the reasonable judgment of the L/C Issuer, provided that
in the event that prior to such assignment, the long-term credit rating of the
L/C Issuer from either Moody’s or S&P (or its successor) is lower than the
long-term credit rating of the L/C Issuer from Moody’s or S&P on the
Closing Date, then the L/C Issuer shall, at the time of such
assignment, obtain the Borrower’s consent, not to be unreasonably withheld, or (y) an assignee or successor
pursuant to a merger, consolidation or amalgamation with or into, or transfer
of all or substantially all of the assignor’s assets to, another entity.]

Section 10.05       Survival.  All
covenants, agreements, representations and warranties made by the Obligors
herein and in the other Loan Documents and in the certificates or other
instruments delivered in connection with or pursuant to this Agreement or the
other Loan Documents shall be considered to have been relied upon by the other
parties hereto and shall survive the execution and delivery of this Agreement
and the making of any Loans, regardless of any investigation made by any such
other party or on its behalf and notwithstanding that the Administrative Agent,
the L/C Issuer or any Lender may have had notice or knowledge of any Default or
incorrect representation or warranty at the time any credit is extended
hereunder, and shall continue in full force and effect as long as the principal
of or any accrued interest on any Loan or any fee or any other amount payable
under this Agreement or the other Loan Documents is outstanding and unpaid and
so long as the Commitments have not expired or terminated.  The provisions of Sections 9.03, 9.04,
9.05 and 10.03 and Article VII shall survive and remain in full force and
effect regardless of the consummation of the transactions contemplated hereby,
the repayment of the Loans, the expiration or termination of the Commitments or
the termination of this Agreement, any other Loan Document or any provision
hereof or thereof.

Section 10.06       Counterparts; Integration; Effectiveness.  This Agreement may be executed in
counterparts (and by different parties hereto on different counterparts), each
of which shall constitute an original, but all of which when taken together
shall constitute a single contract.  This
Agreement and the other Loan Documents constitute the entire contract among the
parties relating to the subject matter hereof and thereof and supersede any and
all previous agreements and understandings, oral or written, relating to the
subject matter hereof or thereof.  In the
event of any conflict between the provisions of this Agreement and those of any
other Loan Document, the provisions of this Agreement shall control; provided
that the inclusion of supplemental rights or remedies in favor of the
Administrative Agent, the L/C Issuer or the Lenders in any other Loan Document
shall not be deemed a conflict with this Agreement.  Each Loan Document was drafted with the joint
participation of the respective parties thereto and shall be construed neither
against nor in favor of any party, but rather in accordance with the fair
meaning thereof.  Except as provided in
Section 4.01, this Agreement shall become effective when it shall have
been executed by the Administrative Agent and when the Administrative Agent
shall have received counterparts hereof which, when taken together, bear the
signatures of each of the other parties hereto, and thereafter shall be binding
upon and inure to the benefit of the parties hereto and their respective
successors and assigns.  Delivery of an
executed counterpart of a signature page of this Agreement by facsimile shall be
effective as delivery of a manually executed counterpart of this Agreement.

 66
 

 

Section 10.07       Severability.  If any
provision of this Agreement or the other Loan Documents is held to be illegal,
invalid or unenforceable, (a) the legality, validity and enforceability of the
remaining provisions of this Agreement and the other Loan Documents shall not
be affected or impaired thereby and (b) the parties shall endeavor in good
faith negotiations to replace the illegal, invalid or unenforceable provisions
with valid provisions the economic effect of which comes as close as possible
to that of the illegal, invalid or unenforceable provisions.  The invalidity of a provision in a particular
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

Section 10.08       Right of Setoff.  If
an Event of Default shall have occurred and be continuing, upon the making of
the request, or the granting of the consent, if required under Article VI
to authorize the Administrative Agent to declare the Loans due and payable,
each Lender, the L/C Issuer and each of their Affiliates is hereby authorized
at any time and from time to time, to the fullest extent permitted by
applicable law, to set off and apply any and all deposits (general or special,
time or demand, provisional or final, in whatever currency) at any time held
and other obligations (in whatever currency) at any time owing by such Lender,
the L/C Issuer or Affiliate 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 this Agreement or the other Loan
Documents to such Lender, irrespective of whether or not such Lender shall have
made any demand under this Agreement or any other Loan Document and although
such obligations of the Borrower or the Guarantor may be contingent or
unmatured or are owed to a branch or office of such Lender different from the
branch or office holding such deposit or obligated on such indebtedness.  The rights of each Lender, the L/C Issuer and
their Affiliates under this Section are in addition to other rights and
remedies (including other rights of setoff) that such Lender, the L/C Issuer or
Affiliate may have.  Each Lender and the
L/C Issuer agrees to notify the Borrower and the Administrative Agent promptly
after any such setoff and application, provided that the failure to give
such notice shall not affect the validity of such setoff and application.

Section 10.09       Governing
Law; Jurisdiction; Consent to Service of Process.

(a)           This Agreement and the Notes
shall be governed by, and construed in accordance with, the law of the State of
New York.

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

 67
 

relating to this
Agreement or any other Loan Document against the Obligors or their respective
properties in the courts of any jurisdiction.

(c)           Each Obligor hereby
irrevocably and unconditionally waives, to the fullest extent it may legally
and effectively do so, any objection which it may now or hereafter have to the
laying of venue of any suit, action or proceeding arising out of or relating to
this Agreement or any other Loan Document in any court referred to in paragraph
(b) of this Section.  Each of the parties
hereto hereby irrevocably waives, to the fullest extent permitted by law, the
defense of an inconvenient forum to the maintenance of such action or
proceeding in any such court.

(d)           Each Obligor hereby
irrevocably designates and appoints CT Corporation System, having an office on
the date hereof at 111 Eighth Avenue, New York, New York 10011 as its
authorized agent, to accept and acknowledge on its behalf, service of any and
all process which may be served in any suit, action or proceeding of the nature
referred to in paragraph (b) hereof in any Federal or New York State court
sitting in New York City.  Each Obligor
represents and warrants that such agent has agreed in writing to accept such
appointment and that a true copy of such designation and acceptance has been
delivered to the Administrative Agent. 
If such agent shall cease so to act, each Obligor covenants and agrees
to designate irrevocably and appoint without delay another such agent
satisfactory to the Administrative Agent and to deliver promptly to the
Administrative Agent evidence in writing of such other agent’s acceptance of
such appointment.

(e)           Each Lender, the L/C Issuer
and the Administrative Agent irrevocably consents to service of process in the
manner provided for notices in Section 10.01.

(f)            Nothing in this Agreement or
any other Loan Document will affect the right of any party to this Agreement to
serve process in any other manner permitted by law.

Section 10.10       Waiver of Jury Trial. 
EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL
PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT
OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY
(WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY
OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK
TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER
PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER
LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN
THIS SECTION.

Section 10.11       Waiver of Immunities. 
TO THE EXTENT PERMITTED BY APPLICABLE LAW, IF EITHER OBLIGOR HAS OR
HEREAFTER MAY ACQUIRE ANY IMMUNITY (SOVEREIGN OR OTHERWISE) FROM ANY LEGAL
ACTION, SUIT OR 

 68
 

PROCEEDING,
FROM JURISDICTION OF ANY COURT OR FROM SET-OFF OR ANY LEGAL PROCESS (WHETHER
SERVICE OR NOTICE, ATTACHMENT PRIOR TO JUDGMENT, ATTACHMENT IN AID OF EXECUTION
OF JUDGMENT, EXECUTION OF JUDGMENT OR OTHERWISE) WITH RESPECT TO ITSELF OR ANY
OF ITS PROPERTY, SUCH OBLIGOR HEREBY IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD
OR CLAIM SUCH IMMUNITY IN RESPECT OF ITS OBLIGATIONS UNDER THIS AGREEMENT OR
ANY OTHER LOAN DOCUMENT.  EACH OBLIGOR
AGREES THAT THE WAIVERS SET FORTH ABOVE SHALL BE TO THE FULLEST EXTENT
PERMITTED UNDER THE FOREIGN SOVEREIGN IMMUNITIES ACT OF 1976 OF THE UNITED STATES
OF AMERICA AND ARE INTENDED TO BE IRREVOCABLE AND NOT SUBJECT TO WITHDRAWAL FOR
PURPOSES OF SUCH ACT.

Section 10.12       Judgment Currency. 
If, under any applicable law and whether pursuant to a judgment being
made or registered against either Obligor or for any other reason, any payment
under or in connection with this Agreement or any other Loan Document, is made
or satisfied in a currency (the “Other Currency”) other than that in
which the relevant payment is due (the “Required Currency”) then, to the
extent that the payment (when converted into the Required Currency at the rate
of exchange on the date of payment or, if it is not practicable for the party
entitled thereto (the “Payee”) to purchase the Required Currency with
the Other Currency on the date of payment, at the rate of exchange as soon
thereafter as it is practicable for it to do so) actually received by the Payee
falls short of the amount due under the terms of this Agreement or any other
Loan Document, such Obligor shall, to the extent permitted by law, as a
separate and independent obligation, indemnify and hold harmless the Payee
against the amount of such shortfall. For the purpose of this Section, “rate
of exchange” means the rate at which the Payee is able on the relevant date
to purchase the Required Currency with the Other Currency and shall take into
account any premium and other costs of exchange.

Section 10.13       Headings.  Article and
Section headings and the Table of Contents used herein and in the other
Loan Documents are for convenience of reference only, are not part of this
Agreement or any other Loan Document and shall not affect the construction of,
or be taken into consideration in interpreting, this Agreement or any other
Loan Document.

Section 10.14       Confidentiality.  Each
of the Administrative Agent and the Lenders shall maintain the confidentiality
of the Information (as defined below) and shall not use the Information except
for purposes relating directly to this Agreement, the other Loan Documents and
the Transactions, except that Information may be disclosed by the
Administrative Agent, the L/C Issuer and the Lenders (a) to their and their
Affiliates’ directors, officers, employees and agents whom they determine need
to know such Information in connection with matters relating directly to this
Agreement, the other Loan Documents and the Transactions, including
accountants, legal counsel and other advisors (it being understood that the
Persons to whom such disclosure is made will be informed of the confidential
nature of such Information and instructed to keep such Information confidential
and the Administrative Agent, the L/C Issuer or the applicable Lenders shall be
responsible for breach of this Section by any such Person to whom it
disclosed such Information), (b) to the extent requested by any governmental authority or regulatory agency (including
any self-regulatory authority, such as the National Association of Insurance
Commissioners), (c) to the extent required by applicable laws 

 69
 

or regulations
or upon order of any court or administrative agency of competent jurisdiction,
to the extent required by such order and not effectively stayed on appeal or
otherwise, or as otherwise required by law; provided that in the case of
any intended disclosure under this clause (c), the recipient thereof shall
(unless otherwise required by applicable law) give the Guarantor not less than
five Business Days’ prior notice (or such shorter period as may, in the good
faith discretion of the recipient, be reasonable under the circumstances or may
be required by any court or agency under the circumstances), specifying the
Information involved and stating such recipient’s intention to disclose such
Information (including the manner and extent of such disclosure) in order to
allow the Guarantor an opportunity to seek an appropriate protective order, (d)
to any other party hereto, (e) in connection with the exercise of any remedies
under this Agreement, any other Loan Document or any action or proceeding
relating to this Agreement or any other Loan Document or the enforcement of
rights hereunder or thereunder, (f) subject to an agreement in writing to be
bound by the provisions of this Section (and of which the Guarantor shall
be a third party beneficiary) or in the case of a repurchase arrangement (“repo
transaction”) subject to an arrangement to be bound by provisions at least as
restrictive as this Section, to (i) any assignee of or Participant in, or
any prospective assignee of or Participant in, any of its rights or obligations
under this Agreement or any other Loan Document or (ii) any actual or
prospective counterparty (or its advisors) to any swap or derivative
transaction relating to the Borrower and its obligations, (g) with the written
consent of the Borrower referencing this Section 10.14, or (h) to the
extent such Information (x) becomes publicly available other than as a result
of a breach of this Section, a breach of another confidentiality agreement to
which the Administrative Agent, the L/C Issuer or such Lender is a party or any
other legal or fiduciary obligation of the Administrative Agent or such Lender
or (y) becomes available to the Administrative Agent, the L/C Issuer or any
Lender on a nonconfidential basis from a source other than the Borrower.  For purposes of this Section, “Information”
means all information received from or on behalf of any Obligor or Subsidiary
Guarantor relating to any Obligor, any Subsidiary Guarantor or any of their
respective businesses, other than any such information that the Administrative
Agent, the L/C Issuer or any Lender proves is available to the Administrative
Agent, the L/C Issuer or any Lender on a nonconfidential basis prior to
disclosure by any Obligor or any Subsidiary Guarantor from a source which is
not, to the knowledge of the recipient, prohibited from disclosing such
information by a confidentiality agreement or other legal or fiduciary
obligation to the Obligors or Subsidiary Guarantors.  Any Person required to maintain the
confidentiality of Information as provided in this Section shall be considered
to have complied with its obligation to do so if such Person has taken normal
and reasonable precautions and exercised due care to maintain the
confidentiality of such Information.  In
addition to other remedies, the Obligors shall be entitled to specific
performance and injunctive and other equitable relief for breach of this
Section 10.14.

Section 10.15       Electronic
Communications.

(a)           Each Obligor hereby agrees
that except to the extent provided in clause (i) of the final sentence of
Section 5.01, it will provide to the Administrative Agent all information,
documents or other materials that it is obligated to furnish to the
Administrative Agent pursuant to this Agreement or any other Loan Document,
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 

 70
 

conversion of
an existing, borrowing or other extension of credit (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 or any other
Loan Document prior to the scheduled date therefor, (iii) provides notice of
any Default or Event of Default, (iv) is required to be delivered to satisfy
any condition precedent to the effectiveness of this Agreement and/or any
Borrowing hereunder or (v) initiates or responds to legal process (all such
non-excluded information being referred to herein collectively as the “Communications”)
by transmitting the Communications in an electronic/soft medium (provided
such Communications contain any required signatures) in a format acceptable to
the Administrative Agent to opLoanswebadmin@citigroup.com (or such other e-mail
address designated by the Administrative Agent from time to time).

(b)           Each party hereto agrees that
the Administrative Agent may make the Communications available to the Lenders
by posting the Communications on IntraLinks or another relevant website, if
any, to which each Lender and the Administrative Agent have access (whether a
commercial, third-party website or whether sponsored by the Administrative
Agent) (the “Platform”).  Nothing
in this Section 5.01 shall prejudice the right of the Administrative Agent
to make the Communications available to the Lenders in any other manner
specified in this Agreement.

(c)           Each Obligor hereby
acknowledges that certain of the Lenders may be “public-side” Lenders (i.e.,
Lenders that do not wish to receive material non-public information with
respect to Obligors or their securities) (each, a “Public Lender”).  The Obligors hereby agree that (i)
Communications that are to be made available on the Platform to Public Lenders
shall be clearly and conspicuously marked “PUBLIC” which, at a minimum, shall
mean that the word “PUBLIC” shall appear prominently on the first page thereof,
(ii) by marking Communications “PUBLIC,” each Obligor shall be deemed to have
authorized the Administrative Agent and the Lenders to treat such
Communications as either publicly available information or not material
information (although it may be sensitive and proprietary) with respect to the
Obligors or their securities for purposes of United States Federal and state
securities laws, (iii) all Communications marked “PUBLIC” are permitted to be
made available through a portion of the Platform designated “Public Lender,”
and (iv) the Administrative Agent shall be entitled to treat any Communications
that are not marked “PUBLIC” as being suitable only for posting on a portion of
the Platform not designated “Public Lender.”

(d)           Each Lender agrees that e-mail
notice to it (at the address provided pursuant to the next sentence and deemed
delivered as provided in the next paragraph) specifying that Communications
have been posted to the Platform shall constitute effective delivery of such
Communications to such Lender for purposes of this Agreement.  Each Lender agrees (i) to notify the
Administrative Agent in writing (including by electronic communication) from
time to time to ensure that the Administrative Agent has on record an effective
e-mail address for such Lender 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.

(e)           Each party hereto agrees that
any electronic communication referred to in this Section 10.15 shall be
deemed delivered upon the posting of a record of such communication (properly
addressed to such party at the e-mail address provided to the Administrative
Agent) as 

 71
 

“sent” in the
e-mail system of the sending party or, in the case of any such communication to
the Administrative Agent, upon the posting of a record of such communication as
“received” in the e-mail system of the Administrative Agent; provided that if such
communication is not so received by any party during the normal business hours
of the Administrative Agent, such communication shall be deemed delivered at
the opening of business on the next Business Day for the Administrative Agent.

(f)            Each party hereto
acknowledges that (i) the distribution of material through an electronic medium
is not necessarily secure and that there are confidentiality and other risks
associated with such distribution, (ii) the Communications and the Platform are
provided “as is” and “as available,” (iii) none of the Administrative Agent,
its affiliates nor any of their respective officers, directors, employees,
agents, advisors or representatives (collectively, the “Agent Parties”)
warrants the adequacy, accuracy or completeness of the Communications or the
Platform , and each Agent Party expressly disclaims liability for errors
or omissions in any Communications or the Platform, and (iv) no warranty of any
kind, express, implied or statutory, including, without limitation, any
warranty of merchantability, fitness for a particular purpose, non-infringement
of third party rights or freedom from viruses or other code defects, is made by
any Agent Party in connection with any Communications or the Platform.

Section 10.16       USA PATRIOT Act Notice. 
Each Lender that is subject to the Act (as hereinafter defined), the L/C
Issuer and the Administrative Agent (for itself and not on behalf of any
Lender) hereby notifies the Obligors and 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 Obligors and the Borrower,
which information includes the name and address of the Obligors and the
Borrower and other information that will allow such Lender or the
Administrative Agent, as applicable, to identify the Obligors and the Borrower
in accordance with the Act.

[Remainder of page intentionally
left blank]

 72

 

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

	
  

  	
  TYCO INTERNATIONAL FINANCE S.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Kevin O’Kelly-Lynch

  
	
   

  	
  Name:

  	
  Kevin O’Kelly-Lynch

  
	
   

  	
  Title:

  	
  Managing Director

  

 

 

	
  

  	
  TYCO INTERNATIONAL LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Christopher J. Coughlin

  
	
   

  	
  Name:

  	
  Christopher J. Coughlin

  
	
   

  	
  Title:

  	
  Senior Vice President and

  
	
   

  	
   

  	
  Chief Financial Officer

  

 

 

	
  

  	
  CITIBANK, N.A., as a Lender, L/C Issuer and as
  Administrative Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Diane L. Pockaj

  
	
   

  	
  Name:

  	
  Diane L. Pockaj

  
	
   

  	
  Title:

  	
  Managing Directorex10-1.htm

    
      

    

    Exhibit
      10.1

    June
      15,
      2007

     

    Sequiam
      Corporation

    300
      Sunport Lane

    Orlando,
      FL 32809

    Attention:
      Mark Mroczkowski

     

    Re:
      Notice under Agreement dated as of March 30, 2007 made by Sequiam Corporation
      and Biometrics Investors, L.L.C.

     

    Dear
      Sirs:

     

    Biometrics
      Investors, L.L.C., a Delaware limited liability company ("Lender"), and Sequiam
      Corporation, a California corporation ("Borrower"), have entered into that
      Agreement dated as of March 30, 2007 (the "Loan Agreement").  Pursuant
      to the terms and conditions of the Loan Agreement, Borrower has executed and
      delivered to Lender Term Note A dated March 30, 2007 in the amount of $6,500,000
      ("Term Note A").  Terms defined in the Loan Agreement are used with
      the same meanings in this notice.

     

    Mark
      Mroczkowski and Nick VandenBrekel ("Subordinated Lenders") have also executed
      and delivered to Lender that Subordination Agreement dated as of March 30,
      2007
      (the "Subordination Agreement"), which Subordination Agreement has been
      acknowledged and agreed to by Borrower.  The Subordination Agreement
      is identified as an "Other Agreement" under the Loan Agreement.

     

    The
      Subordination Agreement identifies certain specific indebtedness from the
      Borrower to the Subordinated Lenders and defines both that specific indebtedness
      and "principal, interest and other fees attributable to any other indebtedness
      owed by the Company to either Mark Mroczowski or Nick VandenBrekel" in the
      term
      "Outstanding Indebtedness."  Under the Subordination Agreement, the
      Outstanding Indebtedness is included in the term "Junior
      Liabilities."  Subordination Agreement, Section 1.

     

    The
      Subordination Agreement states:

     

    [t]he
      payment of the Junior Liabilities shall be postponed and subordinated to the
      payment in full of the Senior Liabilities.  Furthermore, no payments
      or other distributions whatsoever in respect of any Junior Liabilities shall
      be
      made, nor shall any property or assets of any Subordinated Lender be applied
      to
      the purchase or other acquisition or retirement of any Junior
      Liability.  Subordination Agreement, Section 2.

     

    Lender
      has been informed that in May, 2007, Mr. Nick VandenBrekel directed that the
      Borrower pay him the sum of approximately $250,000 in satisfaction of amounts
      alleged to have been owed by the Borrower to Mr. VandenBrekel.  Please
      be advised that any amounts owed by the Borrower to Mr. VandenBrekel constitute
      "Junior Liabilities" under the Subordination Agreement, and the payment of
      this
      amount violated the Subordination Agreement.  Under Section 14(b) of
      the Loan Agreement, Borrower's violation of the Subordination Agreement will
      constitute an Event of Default unless this violation is cured by Borrower within
      thirty (30) days after the date of this notice.  The occurrence of an
      Event of Default under the Agreement which will cause the entire outstanding
      balance of Term Note A, including all accrued and unpaid interest, to become
      immediately due and payable.

     

    Please
      notify Lender when Borrower has recovered the payment made to Mr. VandenBrekel
      in violation of the Subordination Agreement.  If that payment is not
      recovered within thirty (30) days of the date of this notice, Lender will
      declare an Event of Default under the Loan Agreement.

     

    
      	 	 	
              BIOMETRICS
                INVESTORS, L.L.C., a Delaware limited liability
                company

              By:    _________________________________                                                            

              Name:  ________________________________                                                              

              Title:
                Manager

            

    

    

    
      	
              cc:

            	
              Greenberg
                Traurig, P.A.

            

    

    
      	
               

            	
              450
                S. Orange Avenue, Suite 650

            

    

    
      	
               

            	
              Orlando,
                FL 32801

            

    

    
      	
               

            	
              Attention:
                Randolph Fields, Esq.

            

    

    
      	
               

            	
              (407)
                650-8472

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}]]