Document:

Exhibit
10.1

 

EXECUTION COPY

 

 

 

 

CUSIP
Number: US26883HAA7

 

$1,500,000,000

 

REVOLVING
CREDIT AGREEMENT

 

Dated as of December 8,
2010

 

among

 

EQT
CORPORATION,

as the Borrower,

 

PNC BANK,
NATIONAL ASSOCIATION,

as Administrative
Agent, Swing Line Lender and L/C Issuer,

 

The Other L/C
Issuers Named Herein

and

The Other Lenders Party Hereto

 

---------------------------

 

JPMORGAN
CHASE BANK, N.A.,

BANK OF AMERICA, N.A., and

WELLS FARGO BANK, N.A.

Co-Syndication
Agents

 

BARCLAYS
BANK PLC

Documentation
Agent

 

J.P.
MORGAN SECURITIES LLC,

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED,

WELLS FARGO SECURITIES, LLC,

BARCLAYS CAPITAL

and

PNC
CAPITAL MARKETS LLC

as

Joint Lead Arrangers and Book Runners

 

 

 

 

TABLE OF
CONTENTS

 

	
  Article I. DEFINITIONS AND
  ACCOUNTING TERMS

  	
  1

  
	
  1.01.

  	
  Defined Terms

  	
  1

  
	
  1.02.

  	
  Other Interpretive Provisions

  	
  18

  
	
  1.03.

  	
  Accounting Terms

  	
  19

  
	
  1.04.

  	
  Rounding

  	
  19

  
	
  1.05.

  	
  References to Agreements and
  Laws

  	
  19

  
	
  1.06.

  	
  Times of Day

  	
  19

  
	
  1.07.

  	
  Letter of Credit Amounts

  	
  19

  
	
  Article II. THE COMMITMENTS AND
  BORROWINGS

  	
  19

  
	
  2.01.

  	
  Committed Loans

  	
  19

  
	
  2.02.

  	
  Borrowings, Conversions and Continuations of Committed
  Loans

  	
  20

  
	
  2.03.

  	
  Letters of Credit

  	
  21

  
	
  2.04.

  	
  Swing Line Loans

  	
  27

  
	
  2.05.

  	
  Prepayments

  	
  30

  
	
  2.06.

  	
  Termination or Reduction of Commitments

  	
  30

  
	
  2.07.

  	
  Repayment of Loans

  	
  31

  
	
  2.08.

  	
  Interest

  	
  31

  
	
  2.09.

  	
  Fees

  	
  31

  
	
  2.10.

  	
  Computation of Interest and Fees

  	
  32

  
	
  2.11.

  	
  Evidence of Debt

  	
  32

  
	
  2.12.

  	
  Payments Generally

  	
  33

  
	
  2.13.

  	
  Sharing of Payments

  	
  34

  
	
  2.14.

  	
  Extension of Stated Maturity Date

  	
  35

  
	
  2.15.

  	
  Increase in Commitments

  	
  36

  
	
  2.16.

  	
  Defaulting Lenders

  	
  37

  
	
  Article III. TAXES, YIELD
  PROTECTION AND ILLEGALITY

  	
  39

  
	
  3.01.

  	
  Taxes

  	
  39

  
	
  3.02.

  	
  Illegality

  	
  40

  
	
  3.03.

  	
  Inability to Determine Rates

  	
  40

  
	
  3.04.

  	
  Increased Cost and Reduced Return; Capital Adequacy

  	
  40

  
	
  3.05.

  	
  Funding Losses

  	
  41

  
	
  3.06.

  	
  Matters Applicable to all Requests for Compensation

  	
  41

  
	
  3.07.

  	
  Survival

  	
  41

  

 

i

 

	
  Article IV. CONDITIONS PRECEDENT
  TO CLOSING DATE AND TO CREDIT EXTENSIONS

  	
  41

  
	
  4.01.

  	
  Conditions of Closing Date and Initial Credit
  Extension

  	
  41

  
	
  4.02.

  	
  Conditions to all Credit Extensions

  	
  42

  
	
  Article V. REPRESENTATIONS AND
  WARRANTIES

  	
  43

  
	
  5.01.

  	
  Corporate Existence and Power

  	
  43

  
	
  5.02.

  	
  Corporate and Governmental Authorization; No
  Contravention

  	
  43

  
	
  5.03.

  	
  Binding Effect

  	
  43

  
	
  5.04.

  	
  Financial Information

  	
  43

  
	
  5.05.

  	
  Litigation

  	
  44

  
	
  5.06.

  	
  No Default

  	
  44

  
	
  5.07.

  	
  Compliance with ERISA

  	
  44

  
	
  5.08.

  	
  Environmental Matters

  	
  44

  
	
  5.09.

  	
  Taxes

  	
  45

  
	
  5.10.

  	
  Subsidiaries

  	
  45

  
	
  5.11.

  	
  Regulatory Restrictions on Borrowing; Margin Regulations

  	
  45

  
	
  5.12.

  	
  Full Disclosure

  	
  45

  
	
  Article VI. AFFIRMATIVE COVENANTS

  	
  45

  
	
  6.01.

  	
  Information

  	
  45

  
	
  6.02.

  	
  Payment of Obligations

  	
  47

  
	
  6.03.

  	
  Maintenance of Property; Insurance

  	
  48

  
	
  6.04.

  	
  Conduct of Business and Maintenance of Existence

  	
  48

  
	
  6.05.

  	
  Compliance with Laws

  	
  48

  
	
  6.06.

  	
  Inspection of Property, Books and Records

  	
  48

  
	
  6.07.

  	
  Use of Proceeds

  	
  48

  
	
  6.08.

  	
  Governmental Approvals and Filings

  	
  49

  
	
  Article VII. NEGATIVE COVENANTS

  	
  49

  
	
  7.01.

  	
  Liens

  	
  49

  
	
  7.02.

  	
  Debt to Total Capital

  	
  50

  
	
  7.03.

  	
  Transactions with Affiliates

  	
  50

  
	
  7.04.

  	
  Limitation of Other Restrictions on Dividends by
  Subsidiaries, etc.

  	
  50

  
	
  7.05.

  	
  Mergers and Sales of Assets

  	
  51

  
	
  7.06.

  	
  Change in Nature of Business

  	
  51

  
	
  7.07.

  	
  Use of Proceeds

  	
  51

  

 

ii

 

	
  Article VIII. EVENTS OF DEFAULT AND
  REMEDIES

  	
  51

  
	
  8.01.

  	
  Events of Default

  	
  51

  
	
  8.02.

  	
  Remedies Upon Event of Default

  	
  53

  
	
  8.03.

  	
  Application of Funds

  	
  53

  
	
  Article IX. ADMINISTRATIVE AGENT

  	
  54

  
	
  9.01.

  	
  Appointment and Authorization of Administrative Agent

  	
  54

  
	
  9.02.

  	
  Rights as a Lender

  	
  54

  
	
  9.03.

  	
  Exculpatory Provisions

  	
  54

  
	
  9.04.

  	
  Reliance by Administrative Agent

  	
  55

  
	
  9.05.

  	
  Indemnification of Administrative Agent

  	
  55

  
	
  9.06.

  	
  Delegation of Duties

  	
  56

  
	
  9.07.

  	
  Resignation of Administrative Agent

  	
  56

  
	
  9.08.

  	
  Non-Reliance on Administrative Agent and Other Lenders

  	
  57

  
	
  9.09.

  	
  No Other Duties, Etc.

  	
  57

  
	
  9.10.

  	
  Administrative Agent May File Proofs of Claim

  	
  57

  
	
  Article X. MISCELLANEOUS

  	
  58

  
	
  10.01.

  	
  Amendments, Etc.

  	
  58

  
	
  10.02.

  	
  Notices; Effectiveness; Electronic Communication

  	
  59

  
	
  10.03.

  	
  No Waiver; Cumulative Remedies

  	
  60

  
	
  10.04.

  	
  Attorney Costs, Expenses and Taxes

  	
  60

  
	
  10.05.

  	
  Indemnification; Damage Waiver

  	
  61

  
	
  10.06.

  	
  Payments Set Aside

  	
  62

  
	
  10.07.

  	
  Successors and Assigns

  	
  62

  
	
  10.08.

  	
  Confidentiality

  	
  66

  
	
  10.09.

  	
  Set-off

  	
  67

  
	
  10.10.

  	
  Interest Rate Limitation

  	
  67

  
	
  10.11.

  	
  Counterparts

  	
  67

  
	
  10.12.

  	
  Integration

  	
  67

  
	
  10.13.

  	
  Survival of Representations and Warranties

  	
  68

  
	
  10.14.

  	
  Severability

  	
  68

  
	
  10.15.

  	
  Tax Forms

  	
  68

  
	
  10.16.

  	
  Replacement of Lenders

  	
  69

  
	
  10.17.

  	
  Governing Law

  	
  70

  
	
  10.18.

  	
  No Advisory or Fiduciary Responsibility

  	
  70

  
	
  10.19.

  	
  Waiver of Right to Trial by Jury

  	
  71

  

 

iii

 

	
  10.20.

  	
  USA PATRIOT Act Notice

  	
  71

  
	
  10.21.

  	
  Termination of Commitments Under Existing Credit
  Agreement

  	
  71

  
	
  10.22.

  	
  ENTIRE AGREEMENT

  	
  71

  
	
   

  	
   

  
	
  SIGNATURES

  	
  S-1

  
				

 

iv

 

SCHEDULES

 

I           Existing Letters of Credit

2.01      Commitments and Pro Rata Shares

10.02    Administrative Agent’s Office, Certain
Addresses for Notices

 

EXHIBITS

 

Form of

 

A-1      Committed Loan Notice

A-2      Swing Line Loan Notice

B          Note

C          Compliance Certificate

D         Assignment and Assumption

E-1       Opinion of Reed Smith LLP

E-2       Opinion of In-House Counsel for the
Borrower

 

v

 

CREDIT
AGREEMENT

 

This
REVOLVING CREDIT AGREEMENT (“Agreement”) is entered into as of December 8,
2010, among EQT CORPORATION, a Pennsylvania corporation (the “Borrower”),
each lender from time to time party hereto (collectively, the “Lenders”
and individually, a “Lender”), PNC Bank, National Association, as
Administrative Agent, Swing Line Lender, and an L/C Issuer, and the other L/C
Issuers named herein.

 

The
Borrower has requested that the Lenders provide a revolving credit facility and
the Lenders are willing to do so on the terms and conditions set forth herein.

 

In
consideration of the mutual covenants and agreements herein contained, the
parties hereto covenant and agree as follows:

 

Article I. 

DEFINITIONS AND ACCOUNTING TERMS

 

1.01.    Defined
Terms.  As used in this Agreement, the
following terms shall have the meanings set forth below:

 

“Administrative
Agent” means PNC Bank in its capacity as administrative agent under any of
the Loan Documents, or any successor administrative agent.

 

“Administrative
Agent’s Office” means the Administrative Agent’s address and, as
appropriate, account as set forth on Schedule 10.02, or such other
address or account as the Administrative Agent may from time to time notify the
Borrower and the Lenders.

 

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

 

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

 

“Agent-Related
Persons” means each of the Administrative Agent and each L/C Issuer,
together with its respective Affiliates, and the officers, directors,
employees, agents and attorneys-in-fact of such Persons and Affiliates.

 

“Aggregate
Commitments” means the Commitments of all the Lenders.

 

“Agreement”
means this Credit Agreement.

 

“ANPI”
means Appalachian NPI, LLC a Delaware limited liability company.

 

“ANPI
Obligations” means obligations with respect to the 7.76% Senior Secured
Bonds due February 28, 2016 of ANPI (or of the Borrower and/or one or more
Subsidiaries as contemplated by Section 7.01(i)), with respect to
the related swap transaction between ANPI and Barclays Bank PLC (successor to
Credit Suisse First Boston International) and with respect to the ownership
interests in Appalachian Natural Gas Trust, in each case under documentation in
place as of the date of this 

 

 

Agreement, with such
changes in such documentation as, in the reasonable opinion of the
Administrative Agent, do not adversely affect the interest of the Lenders.

 

“ANPI
Transaction” means the transaction pursuant to which the ANPI Obligations
were incurred.

 

“Applicable
Rate” means, from time to time, the following percentages per annum (set
forth in basis points), based upon the Public Debt Ratings as set forth below:

 

	
  Pricing

  Level

  	
  Public
  Debt Ratings

  S&P/Moody’s/Fitch

  	
  Facility

  Fee

  	
  Eurodollar

  Rate

  	
  Letters
  of

  Credit

  	
  Base

  Rate

  
	
  1

  	
  A+/A1/A+ or
  higher

  	
  10.0

  	
  90.0

  	
  90.0

  	
  0.0

  
	
  2

  	
  A/A2/A

  	
  12.5

  	
  112.5

  	
  112.5

  	
  12.5

  
	
  3

  	
  A-/A3/A-

  	
  15.0

  	
  135.0

  	
  135.0

  	
  35.0

  
	
  4

  	
  BBB+/Baa1/BBB+

  	
  20.0

  	
  155.0

  	
  155.0

  	
  55.0

  
	
  5

  	
  BBB/Baa2/BBB

  	
  30.0

  	
  170.0

  	
  170.0

  	
  70.0

  
	
  6

  	
  BBB-/Baa3/BBB-
  or lower

  	
  45.0

  	
  180.0

  	
  180.0

  	
  80.0

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

“Public Debt Ratings” means a rating to be based on the Borrower’s
long-term senior unsecured non-credit enhanced debt ratings (“Senior Unsecured
Ratings”) established by S&P, Moody’s, and Fitch.  If at any time there is a split in Senior
Unsecured Ratings among S&P, Moody’s, and Fitch and (a) two Senior
Unsecured Ratings are equal and higher than the third Senior Unsecured Rating,
the higher Senior Unsecured Ratings will apply, (b) two Senior Unsecured
Ratings are equal and lower than the third Senior Unsecured Rating, the lower
Senior Unsecured Ratings will apply, or (c) no Senior Unsecured Ratings
are equal, the intermediate Senior Unsecured Rating will apply.  In the event that the Borrower shall maintain
Senior Unsecured Ratings from only two of S&P, Moody’s, or Fitch, and there
is a split in such Senior Unsecured Ratings, (i) in the event of a single
level split, the higher Senior Unsecured Rating (i.e. the lower pricing) will
apply and (ii) in the event of a multiple level split, the pricing will be
based on the rating one level lower than the higher of the two.  If only S&P, Moody’s, or Fitch issues a
rating then such rating shall apply.  In
the event that the Borrower’s senior unsecured long-term debt is not rated by
any of S&P, Moody’s or Fitch, then the Applicable Rate shall be calculated
at Pricing Level 6.

 

Initially,
the Applicable Rate shall be determined based upon the Public Debt Ratings
specified in the certificate delivered pursuant to Section 4.01(a)(vi).  Thereafter, each change in the Applicable
Rate resulting from a publicly announced change in the Public Debt Ratings
shall be effective during the period commencing on the date of the public
announcement thereof and ending on the date immediately preceding the effective
date of the next such change.

 

“Approved
Fund” has the meaning specified in Section 10.07(h).

 

“Arranger”
means each of J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner &
Smith Incorporated, Wells Fargo Securities, LLC, Barclays Capital, the
investment banking division of Barclays Bank PLC and PNC Capital Markets LLC,
in their capacity as joint lead arrangers and book runners.

 

“Assignee
Group” means two or more Eligible Assignees that are Affiliates of one
another or two or more Approved Funds managed by the same investment advisor.

 

- 2 -

 

“Assignment
and Assumption” means an Assignment and Assumption substantially in the
form of Exhibit D.

 

“Attorney
Costs” means and includes all fees, expenses and disbursements of any law
firm or other external counsel and, without duplication, the allocated cost of
internal legal services and all expenses and disbursements of internal counsel.

 

“Audited
Financial Statements” means the audited consolidated balance sheet of the
Borrower and its Subsidiaries for the fiscal year ended December 31, 2009
and the related consolidated statements of income or operations, shareholders’
equity and cash flows for such fiscal year of the Borrower and its
Subsidiaries, including the notes thereto.

 

“Authorizations”
means all filings, recordings, and registrations with, and all validations or
exemptions, approvals, orders, authorizations, consents, franchises, licenses,
certificates, and permits from, any Governmental Authority.

 

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

 

“Bank
of America” means Bank of America, N.A., and its successors.

 

“Bankruptcy
Event” shall have the meaning given to such term in the definition of “Defaulting
Lender”.

 

“Barclays”
means Barclays Bank PLC, and its successors.

 

“Base
Rate” means, for any day, a fluctuating per annum rate of interest equal to
the highest of (a) the Federal Funds Open Rate plus 0.5%,
(b) the Prime Rate, and (c) the Published Rate plus 1.0%.  Any change in the Base Rate (and in any of
the alternative components thereof) shall take effect at the opening of
business on the day such change occurs.

 

“Base
Rate Committed Loan” means a Committed Loan that bears interest based on the Base Rate.

 

“Base
Rate Loan” means a Loan that bears interest based on the Base Rate.  All Base Rate Loans shall be denominated in
Dollars.

 

“Benefit Arrangement” means, at any time, an
employee benefit plan within the meaning of Section 3(3) of ERISA
which is not a Plan or a Multiemployer Plan and which is maintained or otherwise
contributed to by any member of the ERISA Group.

 

“Borrower”
has the meaning specified in the introductory paragraph hereto.

 

“Borrower
Materials” has the meaning specified in Section 6.01.

 

“Borrowing”
means a Committed Borrowing or a Swing Line Borrowing, as the context may
require.

 

“Business
Day” means any day other than a Saturday, Sunday or other day on which
commercial banks are authorized to close under the Laws of, or are in fact
closed in, the state where the Administrative Agent’s Office is located and, if
such day relates to any Eurodollar Rate Loan, means any 

 

- 3 -

 

such day on which
dealings in Dollar deposits are conducted by and between banks in the London
interbank eurodollar market.

 

“Cash
Collateralize” has the meaning specified in Section 2.03(g).

 

“Change
in Law” means the occurrence, after the date of this Agreement (or with
respect to any Lender, if later, the date on which such Lender becomes a
Lender), of any of the following: (a) the adoption or taking effect of any
law, rule, regulation or treaty, (b) any change in any law, rule,
regulation or treaty or in the administration, interpretation or application
thereof by any Governmental Authority, or (c) the making or issuance of any
request, guideline or directive (whether or not having the force of law) by any
Governmental Authority; provided however, for purposes of this
Agreement, the Dodd-Frank Wall Street Reform and Consumer Protection Act and
all requests, rules, guidelines or directives in connection therewith are
deemed to have gone into effect and adopted thirty (30) days after the date of
this Agreement.

 

“Change
of Control” means, with respect to any Person, an event or series of events
by which:

 

(a)        any “person” or “group” (as such terms
are used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, but
excluding any employee benefit plan of such person or its subsidiaries, and any
person or entity acting in its capacity as trustee, agent or other fiduciary or
administrator of any such plan) becomes the “beneficial owner” (as defined in Rules 13d-3
and 13d-5 under the Securities Exchange Act of 1934, except that a person or
group shall be deemed to have “beneficial ownership” of all securities that
such person or group has the right to acquire (such right, an “option right”),
whether such right is exercisable immediately or only after the passage of
time), directly or indirectly, of 33-1/3% or more of the equity securities of
such Person entitled to vote for members of the board of directors or
equivalent governing body of such Person on a fully-diluted basis (and taking
into account all such securities that such person or group has the right to
acquire pursuant to any option right); or

 

(b)        during any period of 12 consecutive
months, a majority of the members of the board of directors or other equivalent
governing body of such Person cease to be composed of individuals (i) who
were members of that board or equivalent governing body on the first day of
such period, (ii) whose election or nomination to that board or equivalent
governing body was approved by individuals referred to in clause (i) above
constituting at the time of such election or nomination at least a majority of
that board or equivalent governing body or (iii) whose election or
nomination to that board or other equivalent governing body was approved by
individuals referred to in clauses (i) and (ii) above constituting at
the time of such election or nomination at least a majority of that board or equivalent
governing body (excluding, in the case of both clause (ii) and clause
(iii), any individual whose initial nomination for, or assumption of office as,
a member of that board or equivalent governing body occurs as a result of an
actual or threatened solicitation of proxies or consents for the election or
removal of one or more directors by any person or group other than a
solicitation for the election of one or more directors by or on behalf of the
board of directors).

 

“Closing
Date” means December 8, 2010, which is the first date all the
conditions precedent in Section 4.01 are satisfied or waived in
accordance with Section 4.01 (or, in the case of Section 4.01(b),
waived by the Person entitled to receive the applicable payment).

 

“Code”
means the Internal Revenue Code of 1986.

 

“Commitment”
means, as to each Lender, its obligation to (a) make Committed Loans to
the Borrower pursuant to Section 2.01, (b) purchase
participations in L/C Obligations, and (c) purchase

 

- 4 -

 

 

 

participations in Swing
Line Loans, in an aggregate principal amount at any one time outstanding not to
exceed the amount set forth opposite such Lender’s name on Schedule 2.01
or in the Assignment and Assumption pursuant to which such Lender becomes a party
hereto, as applicable, as such amount may be adjusted from time to time in
accordance with this Agreement.

 

“Committed
Borrowing” means a Borrowing consisting of simultaneous Committed Loans of
the same Type and, in the case of Eurodollar Rate Loans, having the same
Interest Period made by each of the Lenders pursuant to Section 2.01.

 

“Committed
Loan” has the meaning specified in Section 2.01.

 

“Committed
Loan Notice” means a notice of (a) a Borrowing of Committed Loans, (b) a
conversion of Committed Loans from one Type to the other, or (c) a
continuation of Eurodollar Rate Loans, pursuant to Section 2.02(a),
which shall be substantially in the form of Exhibit A-1.

 

“Compliance
Certificate” means a certificate substantially in the form of Exhibit C.

 

“Consolidated Debt” means, as of any date of
determination, the Debt of the Borrower and its Subsidiaries on a consolidated
basis other than (i) Non-Recourse Debt and (ii) Designated Hybrid
Equity Securities.

 

“Consolidated Subsidiaries” means, at any date, any Subsidiary or other entity, the accounts of which would be
consolidated with those of the Borrower in its consolidated financial
statements if such statements were prepared as of such date.

 

“Contractual
Obligation” means, as to any Person, any provision of any security issued
by such Person or of any agreement, instrument or other undertaking to which
such Person is a party or by which it or any of its property is bound.

 

“Control”
has the meaning specified in the definition of “Affiliate.”

 

“Credit
Extension” means each of the following: 
(a) a Borrowing and (b) an L/C Credit Extension.

 

“Credit
Party” means any of the Administrative Agent, the L/C Issuers, the
Swingline Lender and the other Lenders.

 

“Daily Floating
Eurodollar Rate” means, with respect to any Daily Floating
Eurodollar Rate Loan for each day that it is a Daily Floating Eurodollar Rate
Loan, the rate per annum determined by the Administrative Agent to be the
Published Rate on such day.

 

“Daily Floating
Eurodollar Rate Loan” means a Swing Line Loan that bears interest at
a rate based upon the Daily Floating Eurodollar Rate.

 

“Debt”
means, as to any Person at a particular time, without duplication, all of the
following, whether or not included as Debt or liabilities in accordance with
GAAP:

 

(a)        all obligations of such Person for
borrowed money and all obligations of such Person evidenced by bonds,
debentures, notes, loan agreements or other similar instruments;

 

- 5 -

 

(b)        all non-contingent obligations (and, for
purposes of Section 8.01(e) and the definitions of Material
Debt and Material Financial Obligations, all contingent obligations) of such
Person arising under letters of credit (including standby and commercial),
bankers’ acceptances, bank guaranties, surety bonds and similar instruments;

 

(c)        all obligations of such Person to pay
the deferred purchase price of property or services (other than trade accounts
payable in the ordinary course of business);

 

(d)        debt (excluding prepaid interest
thereon) secured by a Lien on property owned or being purchased by such Person
(including debt arising under conditional sales or other title retention
agreements), whether or not such debt shall have been assumed by such Person or
is limited in recourse;

 

(e)        capital leases;

 

(f)        to the extent required to be included on
the Borrower’s consolidated balance sheet as debt or liabilities in accordance
with GAAP, Synthetic Lease Obligations;

 

(g)        all obligations of such Person for the
payment of money under Production Payments; and

 

(h)        all Guarantees of such Person in respect
of any of the foregoing.

 

For
all purposes hereof, the Debt of the Borrower shall include the Debt of any
partnership or joint venture (other than a joint venture that is itself a corporation
or limited liability company) in which the Borrower or any Subsidiary of the
Borrower is a general partner or a joint venturer (provided, however,
for the avoidance of doubt, as used in this sentence “joint venturer” shall not
include a limited partner in a limited partnership), unless such Debt is
expressly made non-recourse to the Borrower or Subsidiary, as applicable.

 

“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 that constitutes an Event of Default or that, with
the giving of any notice, the passage of time, or both, would be an Event of
Default.

 

“Default
Rate” means an interest rate equal to (a) the Base Rate plus (b) the
Applicable Rate, if any, applicable to Base Rate Loans plus (c) 2%
per annum; provided, however, that with respect to a Eurodollar
Rate Loan, the Default Rate shall be an interest rate equal to the interest
rate (including any Applicable Rate) otherwise applicable to such Loan plus 2%
per annum, in each case to the fullest extent permitted by applicable Laws.

 

“Defaulting
Lender” means any Lender that (a) has failed, within two Business Days
of the date required to be funded or paid, to (i) fund any portion of its
Loans, (ii) fund any portion of its participations in Letters of Credit or
Swing Line Loans or (iii) pay over to any Credit Party any other amount
required to be paid by it hereunder, unless, in the case of clause (i) above,
such Lender notifies the Administrative Agent in writing that such failure is
the result of such Lender’s good faith determination that a condition precedent
to funding (specifically identified and including the particular default, if
any) has not been satisfied, (b) has notified the Borrower or any Credit
Party in writing, or has made a public statement to the effect, that it does
not intend or expect to comply with any of its funding obligations under this
Agreement (unless such writing or public statement indicates that such position
is 

 

- 6 -

 

based on such Lender’s
good faith determination that a condition precedent (specifically identified
and including the particular default, if any) to funding a loan under this
Agreement cannot be satisfied) or generally under other agreements in which it
commits to extend credit, (c) has failed, within three Business Days after
request by a Credit Party, acting in good faith, to provide a certification in
writing from an authorized officer of such Lender that it will comply with its
obligations (and is financially able to meet such obligations) to fund
prospective Loans and participations in then outstanding Letters of Credit and
Swing Line Loans under this Agreement, provided that such Lender shall
cease to be a Defaulting Lender pursuant to this clause (c) upon such
Credit Party’s receipt of such certification in form and substance satisfactory
to it and the Administrative Agent, or (d) has become the subject of a
Bankruptcy Event.

 

As
used in this definition and in Section 2.16, the term “Bankruptcy
Event” means, with respect to any Person, such Person becomes the subject
of a bankruptcy or insolvency proceeding, or has had a receiver, conservator,
trustee, administrator, custodian, assignee for the benefit of creditors or
similar Person charged with the reorganization or liquidation of its business
appointed for it, or, in the good faith determination of the Administrative
Agent, has taken any action in furtherance of, or indicating its consent to,
approval of, or acquiescence in, any such proceeding or appointment, provided
that a Bankruptcy Event shall not result solely by virtue of any ownership
interest, or the acquisition of any ownership interest, in such Person by a
Governmental Authority or instrumentality thereof if, and only if, such
ownership interest does not result in or provide such Person with immunity from
the jurisdiction of courts within the United States or from the enforcement of
judgments or writs of attachment on its assets or permit such Person (or such
Governmental Authority or instrumentality) to reject, repudiate, disavow or
disaffirm any contracts or agreements made by such Person.

 

“Designated
Hybrid Equity Securities” means at any time Hybrid Equity Securities in an
outstanding principal amount equal to the lesser of (i) the outstanding
principal amount of Hybrid Equity Securities at such time, and (ii) 10% of
Total Capital at such time.

 

“Dollar”
and “$” mean lawful money of the United States.

 

“Domestic”
means organized under the laws of any state of the United States.

 

“Eligible
Assignee” has the meaning specified in Section 10.07(h).

 

“Environmental
Laws” means any and all Federal, state, local, and foreign statutes, laws,
regulations, ordinances, rules, judgments, orders, decrees, permits,
concessions, grants, franchises, licenses, agreements or governmental
restrictions relating to pollution and the protection of the environment or the
release of any materials into the environment, including those related to
hazardous substances or wastes, air emissions and discharges to waste or public
systems.

 

“Environmental
Liability” means any liability, contingent or otherwise (including any
liability for damages, costs of environmental remediation, fines, penalties or
indemnities), of the Borrower or any of its Subsidiaries 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 Substances, (c) exposure to any Hazardous Substances, (d) the
release or threatened release of any Hazardous Substances 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, or any
successor statute.

 

- 7 -

 

“ERISA
Group” means the Borrower, any Subsidiary and all members of a controlled
group of corporations and all trades or businesses (whether or not
incorporated) under common control which, together with the Borrower or any
Subsidiary, are treated as a single employer under Section 414 of the Internal Revenue Code.

 

“Eurodollar
Rate” means the Fixed Period Eurodollar Rate or the Daily Floating
Eurodollar Rate.

 

“Eurodollar
Rate Loan” means a Fixed Period Eurodollar Rate Loan or a Daily Floating
Eurodollar Rate Loan.  Each reference to
Eurodollar Rate Loan when used in connection with Committed Loans shall mean a
Fixed Period Eurodollar Rate Loan.  Each
reference to Eurodollar Rate Loan when used in connection with Swing Line Loans
shall mean a Daily Floating Eurodollar Rate Loan.

 

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

 

“Excluded
Subsidiary” means at any time a Subsidiary which is not a Material
Subsidiary, and is organized solely for the purpose of holding, directly or
indirectly, an ownership interest in one entity or property (or related entities
or properties), does not engage in any business unrelated to such entity(ies)
or property(ies) or the financing thereof and does not have any assets or
indebtedness other than those related to its interest in such entity(ies) or
property(ies) or the financing thereof and which shall have been identified as
an Excluded Subsidiary at or prior to such time by notice from the Borrower to
the Lenders.  As of the Closing Date, the
Borrower has no Excluded Subsidiaries.

 

“Existing
Credit Agreement” means that certain Revolving Credit Agreement dated as of
October 27, 2006 among the Borrower, Bank of America, N.A., as
administrative agent, and the other agents, letter of credit issuers, and
lenders therein named, as amended.

 

“Existing
Lenders” means the lenders who are parties to the Existing Credit
Agreement.

 

“Existing
Letters of Credit” means each of the letters of credit issued under the
Existing Credit Agreement outstanding on the Closing Date that are described on
Schedule I hereto.

 

“FATCA”
means Sections 1471 through 1474 of the Code and any regulations or official
interpretations thereof.

 

“Federal
Funds Open Rate” means, for any day, the rate per annum (based on a year of
360 days and actual days elapsed) which is the daily federal funds open rate as
quoted by ICAP North America, Inc. (or any successor) as set forth on the
Bloomberg Screen BTMM for that day opposite the caption “OPEN” (or on such
other substitute Bloomberg Screen that displays such rate), or as set forth on
such other recognized electronic source used for the purpose of displaying such
rate as selected by the Administrative Agent (for purposes of this definition,
an “Alternate Source”) (or if such rate for such day does not appear on the
Bloomberg Screen BTMM (or any substitute screen) or on any Alternate Source, or
if there shall at any time, for any reason, no longer exist a Bloomberg Screen
BTMM (or any substitute screen) or any Alternate Source, a comparable
replacement rate determined by the Administrative Agent at such time (which
determination shall be conclusive absent manifest error); provided
however, that if such day is not a Business Day, the Federal Funds Open Rate
for such day shall be the “open” rate on the immediately preceding Business
Day.  If and when the Federal Funds Open
Rate changes, the rate of interest with respect to any advance to which the
Federal Funds Open Rate applies will change automatically without notice to the
Borrower, effective on the date of any such change.

 

“Fee
Letters” means, collectively, (i) the letter agreement, dated November 12,
2010 among the Borrower, J.P. Morgan Securities LLC, JPM, Merrill Lynch,
Pierce, Fenner & Smith Incorporated, Bank 

 

- 8 -

 

of America, Wells Fargo
Securities, LLC and Wells Fargo, (ii) the letter agreement, dated November 12,
2010 among the Borrower, Barclays Capital, the investment banking division of
Barclays Bank PLC, Barclays, PNC Capital Markets LLC and PNC Bank and (iii) the
letter agreement, dated November 12, 2010 among the Borrower and the
Administrative Agent.

 

“Fitch”
means Fitch Ratings Inc. and any successor thereto.

 

“Fixed Period
Eurodollar Rate”
means, with respect to any Fixed Period Eurodollar Rate Loan for the Interest
Period applicable to such Fixed Period Eurodollar Rate Loan, the rate per annum
determined by the Administrative Agent by dividing (the resulting quotient
rounded upwards, if necessary, to the nearest 1/100th of 1% per annum) (i) the
rate which appears on the Bloomberg Page BBAM1 (or on such other
substitute Bloomberg page that displays rates at which US dollar deposits
are offered by leading banks in the London interbank deposit market), or the
rate which is quoted by another source selected by the Administrative Agent
which has been approved by the British Bankers’ Association as an authorized
information vendor for the purpose of displaying rates at which US dollar
deposits are offered by leading banks in the London interbank deposit market
(for purposes of this definition, an “Alternate Source”), at approximately
11:00 a.m., London time, two (2) Business Days prior to the
commencement of such Interest Period as the London interbank offered rate for
U.S. Dollars for an amount comparable to the amount of the Borrowing in which
such Fixed Period Eurodollar Rate Loan is included and having a borrowing date
and a maturity comparable to such Interest Period (or if there shall at any
time, for any reason, no longer exist a Bloomberg Page BBAM1 (or any
substitute page) or any Alternate Source, a comparable replacement rate
determined by the Administrative Agent at such time (which determination shall
be conclusive absent manifest error)), by (ii) a number equal to 1.00
minus the LIBOR Reserve Percentage.  The
Fixed Period Eurodollar Rate may also be expressed by the following formula:

 

London
interbank offered rate quoted by Bloomberg

LIBOR Rate  =  or appropriate successor as shown on
Bloomberg Page BBAM1

1.00
- LIBOR Reserve Percentage

 

The
Fixed Period Eurodollar Rate shall be adjusted with respect to any Fixed Period
Eurodollar Rate Loan that is outstanding on the effective date of any change in
the LIBOR Reserve Percentage as of such effective date.  The Administrative Agent shall give prompt
notice to the Borrower of the Fixed Period Eurodollar Rate as determined or
adjusted in accordance herewith, which determination shall be conclusive absent
manifest error.

 

“Fixed Period
Eurodollar Rate Loan” means a Loan that bears interest at a rate of interest based on the
Fixed Period Eurodollar Rate.

 

“Foreign
Lender” has the meaning specified in Section 10.15(a).

 

“Forward
Sale” means an obligation to deliver oil, gas or other minerals to be
acquired or produced in the future in consideration of advance payment
therefor.

 

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

 

“Fund”
has the meaning specified in Section 10.07(h).

 

“GAAP”
means generally accepted accounting principles in the United States set forth
in the opinions and pronouncements of the Accounting Principles Board and the
American Institute of Certified Public Accountants and statements and
pronouncements of the Financial Accounting Standards Board or such other
principles as may be approved by a significant segment of the accounting
profession in the 

 

- 9 -

 

United States, that are
applicable to the circumstances as of the date of determination, consistently
applied.

 

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

 

“Granting
Lender” has the meaning specified in Section 10.07(i).

 

“Guarantee”
means, as to any Person, any (a) any obligation, contingent or otherwise,
of such Person guaranteeing or having the economic effect of guaranteeing any
Debt or other obligation payable or performable by another Person (the “primary
obligor”) in any manner, whether directly or indirectly, and including any
obligation of such Person, direct or indirect, (i) to purchase or pay (or
advance or supply funds for the purchase or payment of) such Debt or other
obligation, (ii) to purchase or lease property, securities or services for
the purpose of assuring the obligee in respect of such Debt or other obligation
of the payment or performance of such Debt or other obligation, (iii) to
maintain working capital, equity capital or any other financial statement
condition or liquidity or level of income or cash flow of the primary obligor
so as to enable the primary obligor to pay such Debt or other obligation, or (iv) entered
into for the purpose of assuring in any other manner the obligee in respect of
such Debt or other obligation of the payment or performance thereof or to
protect such obligee against loss in respect thereof (in whole or in part), or (b) any
Lien on any assets of such Person securing any Debt or other obligation of any
other Person, whether or not such Debt or other obligation is assumed by such
Person.  The amount of any Guarantee
shall be deemed to be an amount equal to the stated or determinable amount of
the related primary obligation, or portion thereof, in respect of which such
Guarantee is made or, if not stated or determinable, the maximum reasonably
anticipated liability in respect thereof as determined by the guaranteeing
Person in good faith.  The term “Guarantee”
as a verb has a corresponding meaning.

 

“Hazardous
Substances” 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 and all
other substances or wastes of any nature regulated pursuant to any
Environmental Law.

 

“Hybrid
Equity Securities” means, on any date (the “determination date”), any
securities issued by the Borrower or a financing vehicle of the Borrower, other
than common stock, that meet the following criteria: (a) (i) the
Borrower demonstrates that such securities are classified, at the time they are
issued, as possessing a minimum of “intermediate equity content” by S&P and
“Basket B equity credit” by Moody’s (or the equivalent classifications then in
effect by such agencies) and (ii) on such determination date such
securities are classified as possessing a minimum of “intermediate equity
content” by S&P or “Basket B equity credit” by Moody’s (or the equivalent
classifications then in effect by such agencies) and (b) such securities
require no repayments or prepayments and no mandatory redemptions or
repurchases, in each case, prior to at least 91 days after the later of the
termination of the Commitments and the repayment in full of the
Obligations.  As used in this definition,
“mandatory redemption” shall not include conversion of a security into common
stock.

 

“Indemnified
Liabilities” has the meaning set forth in Section 10.05.

 

“Indemnitees”
has the meaning set forth in Section 10.05.

 

“Information”
has the meaning set forth in Section 10.08.

 

- 10 -

 

“Interest
Payment Date” means, (a) as to any Loan other than a Base Rate Loan
and other than a Daily Floating Eurodollar Rate Loan, the last day of each
Interest Period applicable to such Loan and the Maturity Date; provided,
however, that if any Interest Period for a Eurodollar Rate Loan exceeds
three months, the respective dates that fall every three months after the
beginning of such Interest Period shall also be Interest Payment Dates; (b) as
to any Base Rate Loan (including a Swing Line Loan), the last Business Day of each
March, June, September and December and the Maturity Date; and (c) as
to any Daily Floating Eurodollar Rate Loan, the last Business Day of each
calendar month.

 

“Interest
Period” means, (a) with respect to any Fixed Period Eurodollar Rate
Loan, the period commencing on the date such Fixed Period Eurodollar Rate Loan
is disbursed or converted to or continued as a Fixed Period Eurodollar Rate
Loan and ending on the date one, two, three or six months thereafter, as
selected by the Borrower in its Committed Loan Notice, or (b) with respect
to any Daily Floating Eurodollar Rate Loan, the period commencing on the date
such Daily Floating Eurodollar Rate Loan commences and ending one Business Day
thereafter; provided that:

 

(i)         any Interest Period
applicable to any Fixed Period Eurodollar Rate Loan which would otherwise end
on a day that is not a Business Day shall be extended to the next succeeding
Business Day unless such Business Day falls in another calendar month, in which
case such Interest Period shall end on the immediately preceding Business Day;

 

(ii)        any Interest Period
applicable to any Daily Floating Eurodollar Rate Loan that would otherwise end
on a day that is not a Business Day shall be extended to the next succeeding
Business Day;

 

(iii)       any Interest Period
applicable to any Fixed Period Eurodollar Rate Loan that begins on the last
Business Day of a calendar month (or on a day for which there is no numerically
corresponding day in the calendar month at the end of such Interest Period)
shall, subject to the provisions of clause (i) above, end on the last
Business Day of the calendar month at the end of such Interest Period; and

 

(iv)       no Interest Period
shall extend beyond the Maturity Date.

 

“IRS”
means the United States Internal Revenue Service.

 

“ISP”
has the meaning set forth in Section 2.03(h).

 

“JPM”
means JPMorgan Chase Bank, N.A., and its successors.

 

“Laws”
means, collectively, all international, foreign, Federal, state and local
statutes, treaties, rules, guidelines, regulations, ordinances, codes and
administrative or judicial precedents or authorities, including the
interpretation or administration thereof by any Governmental Authority charged
with the enforcement, interpretation or administration thereof, and all
applicable administrative orders, directed duties, requests, licenses,
authorizations and permits of, and agreements with, any Governmental Authority,
in each case whether or not having the force of law.

 

“L/C
Advance” means, with respect to each Lender, such Lender’s funding of its
participation in any L/C Borrowing in accordance with its Pro Rata Share.

 

“L/C
Borrowing” means an extension of credit resulting from a drawing under any
Letter of Credit which has not been reimbursed on the date when made or
refinanced as a Borrowing.

 

- 11 -

 

“L/C
Credit Extension” means, with respect to any Letter of Credit, the issuance
thereof or extension of the expiry date thereof, or the increase of the amount
thereof.

 

“L/C
Issuance Limit” means, with respect to each L/C Issuer, $200,000,000 or
such higher amount as shall have been agreed to in writing between such L/C
Issuer and the Borrower with a copy to the Administrative Agent.

 

“L/C
Issuer” means each of JPM, Bank of America, Wells Fargo, Barclays or PNC
Bank in its capacity as an issuer of Letters of Credit hereunder, and any
additional Lender approved by the Administrative Agent and the Borrower that
has agreed in its sole discretion to act as an “L/C Issuer”, and any successor
issuer of Letters of Credit hereunder. 
As used herein, the term “the L/C Issuer” shall mean “each L/C Issuer”
or “the applicable L/C Issuer,” as the context may require.

 

“L/C
Obligations” means, as at any date of determination, the aggregate undrawn
amount of all outstanding Letters of Credit plus the aggregate of all
Unreimbursed Amounts, including all L/C Borrowings.  For purposes of computing the amount
available to be drawn under any Letter of Credit, the amount of such Letter of
Credit shall be determined in accordance with Section 1.07.  For all purposes of this Agreement, if on any
date of determination a Letter of Credit has expired by its terms but any
amount may still be drawn thereunder by reason of the operation of Rule 3.14
of the ISP, such Letter of Credit shall be deemed to be “outstanding” in the
amount so remaining available to be drawn.

 

“Lender”
has the meaning specified in the introductory paragraph hereto and, as the
context requires, includes the L/C Issuer and the Swing Line Lender.

 

“Lending
Office” means, as to any Lender, the office or offices of such Lender
described as such in such Lender’s Administrative Questionnaire, or such other
office or offices as a Lender may from time to time notify the Borrower and the
Administrative Agent.

 

“Letter
of Credit” means each of the (a) Existing Letters of Credit and (b) any
standby letter of credit issued on or after the Closing Date hereunder.

 

“Letter
of Credit Application” means an application, an application and agreement,
or other similar document in the nature of an application required by the L/C
Issuer, for the issuance or amendment of a Letter of Credit, in the form from
time to time in use by the L/C Issuer.

 

“Letter
of Credit Expiration Date” means the day that is seven days prior to the
Stated Maturity Date then in effect (or, if such day is not a Business Day, the
next preceding Business Day).

 

“Letter
of Credit Sublimit” means an amount equal to $1,000,000,000, as such amount
may be reduced pursuant to Section 2.06.  The Letter of Credit Sublimit is part of, and
not in addition to, the Aggregate Commitments.

 

“LIBOR
Reserve Percentage” means as of any day the maximum percentage in effect on
such day, as prescribed by the FRB (or any successor) for determining the
reserve requirements (including supplemental, marginal and emergency reserve
requirements) with respect to eurocurrency funding (currently referred to as “Eurocurrency
Liabilities”).

 

“Lien”
means any mortgage, pledge, hypothecation, assignment, deposit arrangement,
encumbrance, lien (statutory or other), charge, or preference, priority or
other security interest or preferential arrangement of any kind or nature
whatsoever (including any conditional sale or other title 

 

- 12 -

 

retention agreement, and
any financing lease having substantially the same economic effect as any of the
foregoing).

 

“Loan”
means an extension of credit by a Lender to the Borrower under Article II
in the form of a Committed Loan or a Swing Line Loan.

 

“Loan
Documents” means this Agreement, each Note, and the Fee Letters.

 

“Material
Debt” means Debt (other than (i) Non-Recourse Debt and (ii) the
Loans) of the Borrower and one or more Subsidiaries, arising in one or more
related or unrelated transactions, in an aggregate principal or face amount
exceeding $100,000,000.

 

“Material
Financial Obligations” means (i) a principal or face amount of Debt, (ii) payment
or collateralization obligations in respect of Swap Contracts, or (iii) payment
obligations in respect of Forward Sales, in each case of the Borrower or any of
its Subsidiaries, arising in one or more related or unrelated transactions,
exceeding in the aggregate $100,000,000.

 

“Material
Plan” means, at any time, a Plan or Plans having aggregate Unfunded
Liabilities in excess of $100,000,000.

 

“Material
Subsidiary” means any Subsidiary of Borrower for which (i) its assets
and the assets of its consolidated Subsidiaries comprise more than 5% of the
assets of the Borrower and its consolidated Subsidiaries, or (ii) its
revenue and the revenue of its consolidated Subsidiaries comprise more than 5%
of the revenue of the Borrower and its consolidated Subsidiaries, in each case
determined on a consolidated basis in accordance with GAAP as of the end of the
most recent fiscal year.

 

“Maturity
Date” means the earlier of (a) the Stated Maturity Date and (b) the
effective date of any other termination, cancellation, or acceleration of all
Commitments under this Agreement.

 

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

 

“Multiemployer
Plan” means, at any time, an employee pension benefit plan within the
meaning of Section 4001(a)(3) of ERISA to which any member of the
ERISA Group is then making or accruing an obligation to make contributions, or
has within the preceding five plan years made contributions, including for
these purposes any Person which ceased to be a member of the ERISA Group during
such five year period.

 

“Multiple
Employer Plan” means a Plan which has two or more contributing sponsors (including
the Borrower or any ERISA Affiliate) at least two of whom are not under common
control, as such a plan is described in Section 4064 of ERISA.

 

“Non-Recourse
Debt” of any Person means Debt secured by a Lien on one or more assets of
such Person, where the rights and remedies of the holder of such Debt in
respect of such Debt do not extend to any other assets of such Person and, if
such Person is organized under the laws of or doing business in the United
States or any political subdivision thereof or therein, as to which such holder
has effectively waived (or subordinated in favor of the Lenders) such holder’s
right to make the election provided under 11 U.S.C. § 1111(b)(1)(A) (a “Recourse
Waiver”); provided however, that no Recourse Waiver shall be required with
respect to Production Payments, and no Recourse Waiver shall be required with
respect to the ANPI Obligations.  Debt of
an Excluded Subsidiary which is without recourse to the Borrower or any other
Subsidiary shall be deemed Non-Recourse Debt of such Excluded Subsidiary
secured by all assets of such Excluded Subsidiary (whether or not such Debt is
in fact so secured) and no Recourse Waiver 

 

- 13 -

 

shall be required in
respect thereof.  For purposes of this
definition, the holders of ANPI Obligations which are Debt of a Person shall be
deemed to have a Lien (to the extent permitted by Section 7.01(j) hereof)
on assets of such Person securing such ANPI Obligations.

 

“Note”
means a promissory note made by the Borrower in favor of a Lender evidencing
Loans made by such Lender, substantially in the form of Exhibit B.

 

“Obligations”
means all advances to, and debts, liabilities, obligations, covenants and
duties of, the Borrower arising under any Loan Document or otherwise with
respect to any Loan or 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 any the Borrower or any Affiliate of the
Borrower 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.

 

“Organization
Documents” means, (a) with respect to any corporation, the certificate
or articles of incorporation and the bylaws (or equivalent or comparable
constitutive documents with respect to any non-U.S. jurisdiction); (b) with
respect to any limited liability company, the certificate or articles of
formation or organization and operating agreement; and (c) with respect to
any partnership, joint venture, trust or other form of business entity, the
partnership, joint venture or other applicable agreement of formation or
organization and any agreement, instrument, filing or notice with respect
thereto filed in connection with its formation or organization with the
applicable Governmental Authority in the jurisdiction of its formation or
organization and, if applicable, any certificate or articles of formation or
organization of such entity.

 

“Outstanding
Amount” means (i) with respect to Committed Loans on any date, the
aggregate outstanding principal amount thereof after giving effect to any
borrowings and prepayments or repayments of such Committed Loans occurring on
such date; (ii) with respect to Swing Line Loans on any date, the
aggregate outstanding principal amount thereof after giving effect to any
borrowings and prepayments or repayments of such Swing Line Loans occurring on
such date; and (iii) with respect to any L/C Obligations on any date, the
amount of such L/C Obligations on such date 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 Letters of Credit or
any reductions in the maximum amount available for drawing under Letters of Credit
taking effect on such date.

 

“Parent”
means, with respect to any Lender, any Person as to which such Lender is,
directly or indirectly, a subsidiary.

 

“Participant”
has the meaning specified in Section 10.07(d).

 

“PBGC”
means the Pension Benefit Guaranty Corporation or any entity succeeding to any
or all of its functions under ERISA.

 

“Pension
Act” means the Pension Protection Act of 2006.

 

“Pension
Funding Rules” means the rules of the Code and ERISA regarding minimum
required contributions (including any installment payment thereof) to Pension
Plans and set forth in, with respect to plan years ending prior to the
effective date of the Pension Act, Section 412 of the Code and
Section 302 of ERISA, each as in effect prior to the Pension Act and,
thereafter, Section 412, 430, 431, 432 and 436 of the Code and
Sections 302, 303, 304 and 305 of ERISA.

 

- 14 -

 

 

“Pension
Plan” means any employee pension benefit plan (including a Multiple
Employer Plan or a Multiemployer Plan) that is maintained or is contributed to
by the Borrower and any ERISA Affiliate and is either covered by Title IV of
ERISA or is subject to the minimum funding standards under Section 412 of
the Code.

 

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

 

“Plan”
means at any time an employee pension benefit plan (other than a Multiemployer
Plan) which is covered by Title IV of ERISA or subject to the minimum funding
standards under Section 412 of the Internal Revenue code and either (i) is
maintained, or contributed to, by any member of the ERISA Group for employees
of any member of the ERISA Group or (ii) has at any time within the
preceding five years been maintained, or contributed to, by any Person which
was at such time a member of the ERISA Group for employees of any Person which
was at such time a member of the ERISA Group.

 

“Platform”
has the meaning set forth in Section 6.01.

 

“PNC
Bank” means PNC Bank, National Association and its successors.

 

“Prime
Rate” means the interest rate per annum announced from time to time by the
Administrative Agent at its Principal Office as its then prime rate, which rate
may not be the lowest or most favorable rate then being charged commercial
borrowers or others by the Administrative Agent.  Any change in the Prime Rate shall take effect
at the opening of business on the day such change is announced.

 

“Principal
Office” means the main banking office of the Administrative Agent in
Pittsburgh, Pennsylvania (or in such other city as may be designated by the
Administrative Agent).

 

“Production
Payment” means an assignment of an interest in a fixed quantity (measured
by proceeds or by volume) of oil and gas or other hydrocarbons when produced
from a specified oil and gas property or properties, in consideration for a
payment in advance of production.

 

“Pro
Rata Share” means, with respect to each Lender at any time, a fraction
(expressed as a percentage, carried out to the ninth decimal place), the
numerator of which is the amount of the Commitment of such Lender at such time
and the denominator of which is the amount of the Aggregate Commitments at such
time; provided that in the case of Section 2.16 when a
Defaulting Lender shall exist, “Pro Rata Share” shall mean the percentage of
the Aggregate Commitments (disregarding any Defaulting Lender’s Commitment)
represented by such Lender’s Commitment. 
If the commitment of each Lender to make Loans and the obligation of the
L/C Issuer to make L/C Credit Extensions have been terminated pursuant to Section 8.02,
then the Pro Rata Share of each Lender shall be determined based on the Pro
Rata Share of such Lender immediately prior to such termination and after
giving effect to any subsequent assignments made pursuant to the terms
hereof.  The initial Pro Rata Share of
each Lender is set forth opposite the name of such Lender on Schedule 2.01
or in the Assignment and Assumption pursuant to which such Lender becomes a
party hereto, as applicable.

 

“Public
Debt Ratings” has the meaning set forth in the definition of “Applicable
Rate.”

 

“Published
Rate” means the rate of interest published each Business Day in The Wall
Street Journal “Money Rates” listing under the caption “London Interbank
Offered Rates” for a one month period (or, if no such rate is published therein
for any reason, then the Published Rate shall be the rate at 

 

- 15 -

 

which U.S. dollar
deposits are offered by leading banks in the London interbank deposit market
for a one month period as published in another publication selected by the Administrative
Agent).

 

“PUC”
means any state or local regulatory agency or governmental authority that
exercises jurisdiction over the rates, services, ownership, capital structure,
authority to borrow, operation or production of electricity, oil, gas or hydrocarbons,
or over Persons who own, construct, or operate facilities or systems that
produce, transport, process, or market electricity, oil, gas, or hydrocarbons.

 

“Register”
has the meaning set forth in Section 10.07(c).

 

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

 

“Request
for Credit Extension” means (a) with respect to a Borrowing,
conversion or continuation of Committed Loans, a Committed Loan Notice, (b) with
respect to an L/C Credit Extension, a Letter of Credit Application, and (c) with
respect to a Swing Line Loan, a Swing Line Loan Notice.

 

“Required
Lenders” means, as of any date of determination, Lenders having greater
than 50% of the Aggregate Commitments or, if the commitment of each Lender to
make Loans and the obligation of the L/C Issuer to make L/C Credit Extensions
have been terminated pursuant to Section 8.02, Lenders holding in the
aggregate greater than 50% of the Total Outstandings (with the aggregate amount
of each Lender’s risk participation and funded participation in L/C Obligations
and Swing Line Loans being deemed “held” by such Lender for purposes of this
definition); provided that the Commitment of, and the portion of the
Total Outstandings held or deemed held by, any Defaulting Lender shall be
excluded for purposes of making a determination of Required Lenders.

 

“Responsible
Officer” means the chief executive officer, president, executive vice
president, senior vice president, chief financial officer, treasurer or
assistant treasurer of the Borrower.  Any
document delivered hereunder that is signed by a Responsible Officer of the Borrower
shall be conclusively presumed to have been authorized by all necessary
corporate, partnership and/or other action on the part of the Borrower and such
Responsible Officer shall be conclusively presumed to have acted on behalf of
the Borrower.

 

“S&P”
means Standard & Poor’s Ratings Services, a division of The
McGraw-Hill Companies, Inc. and any successor thereto.

 

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

 

“Shareholders’
Equity” means, as of any date of determination, consolidated shareholders’
equity of the Borrower and its Subsidiaries as of that date determined in
accordance with GAAP.

 

“SPC”
has the meaning specified in Section 10.07(i).

 

“Stated
Maturity Date” means December 8, 2014; provided, however,
if the Stated Maturity Date is extended pursuant to Section 2.14,
the latest date that the Stated Maturity Date has been extended pursuant to
such Section.

 

“Subsidiary”
of a Person means a corporation, partnership, joint venture, limited liability
company or other business entity of which a majority of the shares of
securities or other interests having 

 

- 16 -

 

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.  Unless otherwise
specified, all references herein to a “Subsidiary” or to “Subsidiaries” shall
refer to a Subsidiary or Subsidiaries of the Borrower.

 

“Swap
Contract” means (a) any and all rate swap transactions, basis swaps,
credit derivative transactions, forward rate transactions, commodity swaps,
commodity options, forward commodity contracts, equity or equity index swaps or
options, bond or bond price or bond index swaps or options or forward bond or
forward bond price or forward bond index transactions, interest rate options,
forward foreign exchange transactions, cap transactions, floor transactions,
collar transactions, currency swap transactions, cross-currency rate swap
transactions, currency options, spot contracts, NYMEX futures contracts, or any
other similar transactions or any combination of any of the foregoing
(including any options to enter into any of the foregoing), whether or not any
such transaction is governed by or subject to any master agreement, and (b) any
and all transactions of any kind, and the related confirmations, which are
subject to the terms and conditions of, or governed by, any form of master
agreement published by the International Swaps and Derivatives Association, Inc.,
any International Foreign Exchange Master Agreement, or any other master
agreement (any such master agreement, together with any related schedules, a “Master
Agreement”), including any such obligations or liabilities under any Master
Agreement.

 

“Swing
Line” means the revolving credit facility made available by the Swing Line
Lender pursuant to Section 2.04.

 

“Swing
Line Borrowing” means a borrowing of a Swing Line Loan pursuant to Section 2.04.

 

“Swing
Line Exposure” means, at any time, the Outstanding Amount of all Swing Line
Loans.

 

“Swing
Line Lender” means PNC Bank in its capacity as provider of Swing Line
Loans, or any successor swing line lender hereunder.

 

“Swing
Line Loan” has the meaning specified in Section 2.04(a).

 

“Swing
Line Loan Notice” means a notice of (a) a Borrowing of Swing Line
Loans, or (b) a conversion of Swing Line Loans from one Type to the other,
pursuant to Section 2.04(b), which, if in writing, shall be
substantially in the form of Exhibit A-2.

 

“Swing
Line Sublimit” means an amount equal to the lesser of (a) $150,000,000
and (b) the Aggregate Commitments. 
The Swing Line Sublimit is part of, and not in addition to, the
Aggregate Commitments.

 

“Synthetic
Lease Obligation” means the monetary obligation of a Person under (a) a
so-called synthetic, off-balance sheet or tax retention lease, or (b) an
agreement for the use or possession of property creating obligations that do
not appear on the balance sheet of such Person but which, upon the insolvency
or bankruptcy of such Person, would be characterized as the indebtedness of
such Person (without regard to accounting treatment).

 

“Total
Capital” means, at any date, the total of (i) Consolidated Debt plus (ii) Shareholders’
Equity plus (iii) Designated Hybrid Equity Securities less (iv) to
the extent reflected in Shareholders’ Equity, any excess of the net book value
of assets subject to Liens securing Non-Recourse Debt (including the total
assets of Excluded Subsidiaries) over the amount of the related Non-Recourse
Debt 

 

- 17 -

 

and (v) either (a) less
the absolute value of accumulated other comprehensive income as determined in
accordance with GAAP, or (b) plus the absolute value of accumulated other
comprehensive loss as determined in accordance with GAAP, in each case
determined at such date.

 

“Total
Outstandings” means the aggregate Outstanding Amount of all Loans and all
L/C Obligations.

 

“Type”
means, (a) with respect to a Committed Loan, its character as a Base Rate
Loan or a Fixed Period Eurodollar Rate Loan, and (b) with respect to a
Swing Line Loan, its character as a Base Rate Loan or a Daily Floating
Eurodollar Rate Loan.

 

“Unfunded
Liabilities” means, with respect to any Plan at any time, the amount (if
any) by which (i) the value of all benefit liabilities under such Plan, determined
on a plan termination basis using the assumptions prescribed by the PBGC for
purposes of Section 4044 of ERISA, exceeds (ii) the fair market value
of all Plan assets allocable to such liabilities under Title IV of ERISA
(excluding any accrued but unpaid contributions), all determined as of the then
most recent valuation date for such Plan, but only to the extent that such
excess represents a potential liability of a member of the ERISA Group to the
PBGC or any other Person under Title IV of ERISA.

 

“United
States” and “U.S.” mean the United States of America.

 

“Unreimbursed
Amount” has the meaning set forth in Section 2.03(c)(i).

 

“Wells
Fargo” means Wells Fargo Bank, N.A., and its successors.

 

1.02.    Other Interpretive
Provisions.  With
reference to this Agreement and each other Loan Document, unless otherwise
specified herein or in such other Loan Document:

 

(a)        The
meanings of defined terms are equally applicable to the singular and plural
forms of the defined terms.

 

(b)        (i)         The words “herein,” “hereto,”
“hereof” and “hereunder” and words of similar import when used in
any Loan Document shall refer to such Loan Document as a whole and not to any
particular provision thereof.

 

(ii)        Article,
Section, Exhibit and Schedule references are to the Loan Document in which
such reference appears.

 

(iii)       The
term “including” is by way of example and not limitation.

 

(iv)       The
term “documents” includes any and all instruments, documents,
agreements, certificates, notices, reports, financial statements and other writings,
however evidenced, whether in physical or electronic form.

 

(c)        In the
computation of periods of time from a specified date to a later specified date,
the word “from” means “from and including”; the words “to”
and “until” each mean “to but excluding”; and the word “through”
means “to and including.”

 

(d)        Section headings
herein and in the other Loan Documents are included for convenience of
reference only and shall not affect the interpretation of this Agreement or any
other Loan Document.

 

- 18 -

 

1.03.    Accounting  Terms.

 

(a)        All
accounting terms not specifically or completely defined herein shall be
construed in conformity with, and all financial data (including financial
ratios and other financial calculations) required to be submitted pursuant to
this Agreement shall be prepared in conformity with, GAAP applied on a
consistent basis, as in effect from time to time, applied in a manner
consistent with that used in preparing the Audited Financial Statements, except
as otherwise specifically prescribed herein.

 

(b)        If at
any time any change in GAAP would affect the computation of any financial ratio
or requirement set forth in any Loan Document, and either the Borrower or the
Required Lenders shall so request, the Administrative Agent, the Lenders and
the Borrower shall negotiate in good faith to amend such ratio or requirement
to preserve the original intent thereof in light of such change in GAAP
(subject to the approval of the Required Lenders); provided  that,
until so amended, (i) such ratio or requirement shall continue to be
computed in accordance with GAAP prior to such change therein and (ii) the
Borrower shall provide to the Administrative Agent and the Lenders financial
statements and other documents required under this Agreement or as reasonably
requested hereunder setting forth a reconciliation between calculations of such
ratio or requirement made before and after giving effect to such change in
GAAP.

 

1.04.    Rounding.  Any financial ratios required to be
maintained by the Borrower pursuant to this Agreement shall be calculated by
dividing the appropriate component by the other component, carrying the result
to one place more than the number of places by which such ratio is expressed
herein and rounding the result up or down to the nearest number (with a
rounding-up if there is no nearest number).

 

1.05.    References to Agreements and Laws.  Unless otherwise expressly provided herein, (a) references
to Organization Documents, agreements (including the Loan Documents) and other
contractual instruments shall be deemed to include all subsequent amendments,
restatements, extensions, supplements and other modifications thereto, but only
to the extent that such amendments, restatements, extensions, supplements and
other modifications are not prohibited by any Loan Document; and (b) references
to any Law shall include all statutory and regulatory provisions consolidating,
amending, replacing, supplementing or interpreting such Law.

 

1.06.    Times of Day.  Unless otherwise specified, all references
herein to times of day shall be references to Eastern time (daylight or
standard, as applicable).

 

1.07.    Letter of Credit Amounts.  Unless otherwise specified, all references
herein to the amount of a Letter of Credit at any time shall be deemed to mean
the maximum face amount of such Letter of Credit after giving effect to all
increases thereof contemplated by such Letter of Credit or the Letter of Credit
Application therefor, whether or not such maximum face amount is in effect at
such time.

 

Article II.

THE COMMITMENTS AND BORROWINGS

 

2.01.    Committed
Loans.  Subject to the terms and
conditions set forth herein, each Lender severally agrees to make loans (each
such loan, a “Committed Loan”) to the Borrower from time to time, on any
Business Day during the Availability Period, in an aggregate amount not to
exceed at any time outstanding the amount of such Lender’s Commitment;
provided, however, that after giving effect to any Borrowing, (i) the
Total Outstandings shall not exceed the Aggregate Commitments, and (ii) the
aggregate Outstanding Amount of the Committed Loans of any Lender, plus such
Lender’s Pro Rata Share of the Outstanding Amount of all L/C Obligations, plus
such Lender’s Pro Rata Share of the 

 

- 19 -

 

Outstanding Amount of all
Swing Line Loans shall not exceed such Lender’s Commitment.  Within the limits of each Lender’s
Commitment, and subject to the other terms and conditions hereof, the Borrower
may borrow under this Section 2.01, prepay under Section 2.05,
and reborrow under this Section 2.01.  Committed Loans may be Base Rate Loans or
Eurodollar Rate Loans, as further provided herein.

 

2.02.    Borrowings,
Conversions and Continuations of Committed Loans.

 

(a)        Each
Borrowing, each conversion of Committed Loans from one Type to the other, and
each continuation of Eurodollar Rate Loans shall be made upon the Borrower’s
delivery to the Administrative Agent of an irrevocable written Committed Loan
Notice, appropriately completed and signed by a Responsible Officer of the
Borrower, which may be delivered via facsimile. 
Each such notice must be received by the Administrative Agent not later
than 11:00 a.m. (i) three Business Days prior to the requested date
of any Borrowing of, conversion to or continuation of Eurodollar Rate Loans or
of any conversion of Eurodollar Rate Loans to Base Rate Committed Loans, and (ii) on
the requested date of any Borrowing of Base Rate Committed Loans.  Each Borrowing of, conversion or continuation
of Committed Loans shall be in a principal amount of $5,000,000 or a whole
multiple of $1,000,000 in excess thereof. 
Each Committed Loan Notice shall specify (i) whether the Borrower
is requesting a Borrowing, a conversion of Committed Loans from one Type to the
other, or a continuation of Eurodollar Rate Loans, (ii) the requested date
of the Borrowing, conversion or continuation, as the case may be (which shall
be a Business Day), (iii) the principal amount of Committed Loans to be
borrowed, converted or continued, (iv) the Type of Committed Loans to be
borrowed or to which existing Committed Loans are to be converted, and (v) if
applicable, the duration of the Interest Period with respect thereto.  If the Borrower fails to specify a Type of
Committed Loan in a Committed Loan Notice or if the Borrower fails to give a
timely notice requesting a conversion or continuation, then the applicable
Committed Loans shall be made as, or converted to, Base Rate Committed Loans.  Any such automatic conversion to Base Rate
Committed Loans shall be effective as of the last day of the Interest Period
then in effect with respect to the applicable Eurodollar Rate Loans.  If the Borrower requests a Borrowing of,
conversion to, or continuation of Eurodollar Rate Loans in any such Committed
Loan Notice, but fails to specify an Interest Period, it will be deemed to have
specified an Interest Period of one month.

 

(b)        Following
receipt of a Committed Loan Notice, the Administrative Agent shall promptly
notify each Lender of the amount of its Pro Rata Share of the applicable
Committed Loans, and if no timely notice of a conversion or continuation is
provided by the Borrower, the Administrative Agent shall notify each Lender of
the details of any automatic conversion to Base Rate Loans described in the
preceding subsection.  Each Lender shall
make the amount of its Committed Loan available to the Administrative Agent in
immediately available funds at the Administrative Agent’s Office not later than
1:00 p.m. on the Business Day specified in the applicable Committed Loan
Notice.  Upon satisfaction of the
applicable conditions set forth in Section 4.02 (and, if such
Borrowing is the initial Credit Extension, Section 4.01), the
Administrative Agent shall make all funds so received available to the Borrower
in like funds as received by the Administrative Agent either by (i) crediting
the account of the Borrower on the books of PNC Bank with the amount of such
funds or (ii) wire transfer of such funds, in each case in accordance with
instructions provided to (and reasonably acceptable to) the Administrative
Agent by the Borrower; provided, however, that if, on the date the Committed
Loan Notice with respect to such Borrowing is given by the Borrower, there are
L/C Borrowings outstanding, then the proceeds of such Borrowing shall be
applied, first, to the payment in full of any such L/C Borrowings and second,
to the Borrower as provided above.

 

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

 

- 20 -

 

(d)        The
Administrative Agent shall promptly notify the Borrower and the Lenders of the
interest rate applicable to any Interest Period for Fixed Period Eurodollar
Rate Loans upon determination of such interest rate.  The determination of the Fixed Period
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 PNC Bank’s prime rate used in determining the
Base Rate promptly following the public announcement of such change.

 

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

 

2.03.    Letters of Credit.

 

(a)        The
Letter of Credit Commitment.

 

(i)         Subject
to the terms and conditions set forth herein, (A) the L/C Issuer agrees,
in reliance upon the agreements of the other Lenders set forth in this Section 2.03,
from time to time on any Business Day during the period from the Closing Date
until the Letter of Credit Expiration Date, to issue Letters of Credit for the
account of the Borrower, and to amend or extend Letters of Credit previously
issued by it, in accordance with subsection (b) below; and (B) the
Lenders severally agree to participate in Letters of Credit issued for the
account of the Borrower; provided that no L/C Issuer shall be obligated to make
any L/C Credit Extension that would result in the Outstanding Amount of the L/C
Obligations with respect to Letters of Credit issued by such L/C Issuer to
exceed such L/C Issuer’s L/C Issuance Limit; and provided further that no L/C
Issuer shall be obligated to make any L/C Credit Extension with respect to any
Letter of Credit, and no Lender shall be obligated to participate in any Letter
of Credit if as of the date of such L/C Credit Extension, (x) the Total
Outstandings would exceed the Aggregate Commitments, (y) the aggregate
Outstanding Amount of the Committed Loans of any Lender, plus such
Lender’s Pro Rata Share of the Outstanding Amount of all L/C Obligations, plus
such Lender’s Pro Rata Share of the Outstanding Amount of all Swing Line Loans
would exceed such Lender’s Commitment, or (z) the Outstanding Amount of
the L/C Obligations would exceed the Letter of Credit Sublimit.  Within the foregoing limits, and subject to
the terms and conditions hereof, the Borrower’s ability to obtain Letters of
Credit shall be fully revolving, and accordingly the Borrower may, during the
foregoing period, obtain Letters of Credit to replace Letters of Credit that
have expired or that have been drawn upon and reimbursed.  All Existing Letters of Credit shall be
deemed to have been issued pursuant hereto, and from and after the Closing Date
shall be subject to and governed by the terms and conditions hereof.

 

(ii)        The
L/C Issuer shall be under no obligation to issue any Letter of Credit and, in
the case of clauses (B) and (C) below shall not issue any Letter of
Credit, if:

 

(A)       any
order, judgment or decree of any Governmental Authority or arbitrator shall by
its terms purport to enjoin or restrain the L/C Issuer from issuing such Letter
of Credit, or any Law applicable to the L/C Issuer or any request or directive
(whether or not having the force of law) from any Governmental Authority with
jurisdiction over the L/C Issuer shall prohibit, or request that the L/C Issuer
refrain from, the issuance of Letters of Credit generally or such Letter of
Credit in particular or shall impose upon the L/C Issuer with respect to such
Letter of Credit any restriction, reserve or capital requirement (for which the
L/C Issuer is not otherwise compensated hereunder) not in effect on the Closing
Date, or shall impose upon the L/C Issuer any unreimbursed loss, cost or
expense which was not applicable on the Closing Date and which the L/C Issuer
in good faith deems material to it;

 

- 21 -

 

(B)       subject
to Section 2.03(b)(iii), the expiry date of such requested Letter
of Credit would occur more than twelve months after the date of issuance or
last renewal, unless the Required Lenders have approved such expiry date;

 

(C)       the
expiry date of such requested Letter of Credit would occur (1) after the
Letter of Credit Expiration Date, unless all the Lenders have approved such
expiry date, or (2) after any Stated Maturity Date applicable to any Declining
Lender (as defined in Section 2.14), unless the amount of such
Letter of Credit together with all other L/C Obligations outstanding on the
date of issuance of such Letter of Credit is equal to or less than the
aggregate Commitments of all Lenders who shall remain parties to this Agreement
subsequent to the Stated Maturity Date that immediately precedes the expiry
date of such Letter of Credit;

 

(D)       the
issuance of such Letter of Credit would violate one or more policies of the L/C
Issuer;  or

 

(E)       such
Letter of Credit is (1) in an initial amount less than $500,000, (2) is
to be denominated in a currency other than Dollars, or (3) is to be issued
for a purpose other than to support surety bonds (including appeal bonds),
worker’s compensation requirements and other general corporate purposes.

 

(iii)       The
L/C Issuer shall not amend any Letter of Credit if the L/C Issuer would have no
obligation at such time to issue such Letter of Credit in its amended form
under any of Sections 2.03(a)(ii)(B), (C) or (E)(2) or
(3).

 

(iv)       The
L/C Issuer shall be under no obligation to amend any Letter of Credit if the
beneficiary of such Letter of Credit does not accept the proposed amendment to
such Letter of Credit.

 

(b)        Procedures
for Issuance and Amendment of Letters of Credit; Auto-Renewal Letters of
Credit.

 

(i)         Each
Letter of Credit shall be issued or amended, as the case may be, upon the
request of the Borrower delivered to the applicable L/C Issuer (with a copy to
the Administrative Agent) in the form of a Letter of Credit Application,
appropriately completed and signed by a Responsible Officer of the
Borrower.  Such Letter of Credit
Application must be received by the L/C Issuer and the Administrative Agent not
later than 11:00 a.m. at least two Business Days (or such later date and
time as the L/C Issuer may agree in a particular instance in its sole
discretion) prior to the proposed issuance date or date of amendment, as the
case may be.  In the case of a request
for an initial issuance of a Letter of Credit, such Letter of Credit
Application shall specify in form and detail satisfactory to the L/C Issuer: (A) the
proposed issuance date of the requested Letter of Credit (which shall be a
Business Day); (B) the amount thereof; (C) the expiry date thereof; (D) the
name and address of the beneficiary thereof; (E) the documents to be
presented by such beneficiary in case of any drawing thereunder; (F) the
full text of any certificate to be presented by such beneficiary in case of any
drawing thereunder; and (G) such other matters as the L/C Issuer may
require.  In the case of a request for an
amendment of any outstanding Letter of Credit, such Letter of Credit
Application shall specify in form and detail satisfactory to the L/C Issuer (A) the
Letter of Credit to be amended; (B) the proposed date of amendment thereof
(which shall be a Business Day); (C) the nature of the proposed amendment;
and (D) such other matters as the L/C Issuer may require.

 

(ii)        Promptly
after receipt of any Letter of Credit Application, the L/C Issuer will confirm
with the Administrative Agent (by telephone or in writing) that the
Administrative Agent has received a copy of such Letter of Credit Application
from the Borrower and, if not, the Borrower will 

 

- 22 -

 

provide the
Administrative Agent with a copy thereof upon the Administrative Agent’s
request therefor.  Upon receipt by the
L/C Issuer of confirmation from the Administrative Agent that the requested
issuance or amendment is permitted in accordance with the terms hereof, then,
subject to the terms and conditions hereof, the L/C Issuer shall, on the
requested date, issue a Letter of Credit for the account of the Borrower or
enter into the applicable amendment, as the case may be, in each case in
accordance with the L/C Issuer’s usual and customary business practices.  Immediately upon the issuance of each Letter
of Credit, each Lender shall be deemed to, and hereby irrevocably and
unconditionally agrees to, purchase from the L/C Issuer a risk participation in
such Letter of Credit in an amount equal to the product of such Lender’s Pro
Rata Share times the amount of such Letter of Credit.

 

(iii)       If
the Borrower so requests in any applicable Letter of Credit Application, the
L/C Issuer may, in its sole and absolute discretion, agree to issue a Letter of
Credit that has automatic extension provisions (each, an “Auto-Extension
Letter of Credit”); provided that any such Auto-Extension Letter of
Credit must permit the L/C Issuer to prevent any such extension at least once
in each twelve-month 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 “Non-Extension Notice Date”) in each such twelve-month
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 extension.  Once an
Auto-Extension 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 extension of
such Letter of Credit at any time to an expiry date not later than the Letter
of Credit Expiration Date; provided, however, that the L/C Issuer
shall not permit any such extension if (A) the L/C Issuer has determined
that it would not be permitted, or would have no obligation, at such time to
issue such Letter of Credit in its revised form (as extended) under the terms
hereof (by reason of the provisions of Section 2.03(a) or
otherwise), or (B) it has received notice (which may be by telephone or in
writing) on or before the day that is seven Business Days before the
Non-Extension Notice Date (1) from the Administrative Agent that the Required
Lenders have elected not to permit such extension 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 and in each such case directing the L/C Issuer not to permit such
extension.

 

(iv)       Promptly
after its delivery of any Letter of Credit or any amendment to a Letter of
Credit to an advising bank with respect thereto or to the beneficiary thereof,
the L/C Issuer will also deliver to the Borrower and the Administrative Agent a
true and complete copy of such Letter of Credit or amendment or a report
containing information with respect thereto including the face amount of such
Letter of Credit, the date of issuance or amendment and such other information
as may be required by the Administrative Agent. 
The Administrative Agent shall give the Lenders notice of the issuance
of any Letter of Credit and any amendment thereto.

 

(c)        Drawings
and Reimbursements; Funding of Participations.

 

(i)         Upon
receipt from the beneficiary of any Letter of Credit of any notice of a drawing
under such Letter of Credit, the L/C Issuer shall notify the Borrower and the
Administrative Agent thereof.  Not later
than 11:00 a.m. on the date of any payment by the L/C Issuer under a
Letter of Credit (each such date, an “Honor Date”), the Borrower shall
reimburse the L/C Issuer through the Administrative Agent in an amount equal to
the amount of such drawing.  If the
Borrower fails to so reimburse the L/C Issuer by such time, the Administrative
Agent shall promptly notify each Lender of the Honor Date, the amount of the
unreimbursed drawing (the “Unreimbursed Amount”), and the amount of such
Lender’s Pro Rata Share thereof.  In such
event, the Borrower shall be deemed to have requested a Committed Borrowing of
Base Rate Loans to be disbursed on the Honor Date in an amount equal to the
Unreimbursed Amount, without regard to the minimum and multiples specified in Section 2.02
for the principal amount of Base Rate Loans, but subject to the amount of the
unutilized portion of the Aggregate 

 

- 23 -

 

Commitments and
the conditions set forth in Section 4.02 (other than the delivery
of a Committed Loan Notice).  Any notice
given by the L/C Issuer or the Administrative Agent pursuant to this Section 2.03(c)(i) may
be given by telephone if immediately confirmed in writing; provided that
the lack of such an immediate confirmation shall not affect the conclusiveness
or binding effect of such notice.

 

(ii)        Each
Lender (including the Lender acting as L/C Issuer) shall upon any notice
pursuant to Section 2.03(c)(i) make funds available to the
Administrative Agent for the account of the L/C Issuer at the Administrative
Agent’s Office in an amount equal to its Pro Rata Share of the Unreimbursed
Amount not later than 1:00 p.m. on the Business Day specified in such
notice by the Administrative Agent, whereupon, subject to the provisions of Section 2.03(c)(iii),
each Lender that so makes funds available shall be deemed to have made a Base
Rate Committed Loan to the Borrower in such amount.  The Administrative Agent shall remit the
funds so received to the L/C Issuer.

 

(iii)       With
respect to any Unreimbursed Amount that is not fully refinanced by a Committed
Borrowing of Base Rate Loans because the conditions set forth in Section 4.02
cannot be satisfied or for any other reason, the Borrower shall be deemed to
have incurred from the L/C Issuer an L/C Borrowing in the amount of the
Unreimbursed Amount that is not so refinanced, which L/C Borrowing shall be due
and payable on demand (together with interest) and shall bear interest at the
Default Rate.  In such event, each Lender’s
payment to the Administrative Agent for the account of the L/C Issuer pursuant
to Section 2.03(c)(ii) shall be deemed payment in respect of
its participation in such L/C Borrowing and shall constitute an L/C Advance
from such Lender in satisfaction of its participation obligation under this Section 2.03.

 

(iv)       Until
each Lender funds its Committed Loan or L/C Advance pursuant to this Section 2.03(c) to
reimburse the L/C Issuer for any amount drawn under any Letter of Credit,
interest in respect of such Lender’s Pro Rata Share of such amount shall be
solely for the account of the L/C Issuer.

 

(v)        Each
Lender’s obligation to make Committed Loans or L/C Advances to reimburse the
L/C Issuer for amounts drawn under Letters of Credit, as contemplated by this Section 2.03(c),
shall be absolute and unconditional and shall not be affected by any circumstance,
including (A) any set-off, counterclaim, recoupment, defense or other
right which such Lender may have against the L/C Issuer, the Borrower or any
other Person for any reason whatsoever; (B) the occurrence or continuance
of a Default; (C) any lack of validity or enforceability of such Letter of
Credit, this Agreement, or any other agreement or instrument relating thereto; (D) the
existence of any claim, counterclaim, set-off, defense or other right that such
Lender may have at any time against any beneficiary or any transferee of such
Letter of Credit (or any Person for whom any such 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 such
Letter of Credit or any agreement or instrument relating thereto, or any
unrelated transaction; (E) any draft, demand, certificate or other
document presented under such 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 such Letter of Credit; (F) any payment by the L/C Issuer under such
Letter of Credit against presentation of a draft or certificate that does not
strictly comply with the terms of such Letter of Credit; or any payment made by
the L/C Issuer under such 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 any
beneficiary or any transferee of such Letter of Credit, including any arising
in connection with any proceeding under any Debtor Relief Law; or (G) any
other occurrence, event or condition, whether or not similar to any of the
foregoing; provided, however, that each Lender’s obligation to
make Committed Loans pursuant to this Section 2.03(c) is
subject to the conditions set forth in Section 4.02 (other than
delivery by the Borrower of a Committed Loan Notice).  No such making of an L/C Advance

 

- 24 -

 

 

shall 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.

 

(vi)                            If any Lender fails to make available to
the Administrative Agent for the account of the L/C Issuer any amount required
to be paid by such Lender pursuant to the foregoing provisions of this Section 2.03(c) by
the time specified in Section 2.03(c)(ii), the L/C Issuer shall be
entitled to recover from such Lender (acting through the Administrative Agent),
on demand, such amount with interest thereon for the period from the date such
payment is required to the date on which such payment is immediately available
to the L/C Issuer at a rate per annum equal to the greater of the Federal Funds
Open Rate and a rate determined by the L/C Issuer in accordance with banking
industry rules on interbank compensation, plus any administrative, processing
or similar fees customarily charged by the L/C Issuer in connection with the
foregoing.  If such Lender pays such
amount (with interest and fees as aforesaid), the amount so paid shall
constitute such Lender’s Committed Loan included in the relevant Committed
Borrowing or L/C Advance in respect of the relevant L/C Borrowing, as the case
may be.  A certificate of the L/C Issuer
submitted to any Lender (through the Administrative Agent) with respect to any
amounts owing under this clause (vi) shall be conclusive absent manifest
error.

 

(d)                               Repayment of Participations.

 

(i)                                   At any time after the L/C Issuer has made
a payment under any Letter of Credit and has received from any Lender such
Lender’s L/C Advance in respect of such payment in accordance with Section 2.03(c),
if the Administrative Agent receives for the account of the L/C Issuer any
payment in respect of the related Unreimbursed Amount or interest thereon
(whether directly from the Borrower or otherwise, including proceeds of Cash
Collateral (as defined in Section 2.03(g)) applied thereto by the
Administrative Agent), 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 L/C Advance
was outstanding) 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 2.03(c)(i) is
required to be returned under any of the circumstances described in Section 10.06
(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 Pro Rata Share thereof on demand of the Administrative
Agent, plus interest thereon from the date of such demand to the date such
amount is paid by such Lender, at a rate per annum equal to the Federal Funds
Open Rate from time to time in effect.

 

(e)                               Obligations Absolute. 
The obligation of the Borrower to reimburse the L/C Issuer for each
drawing under each Letter of Credit and to repay each L/C Borrowing 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:

 

(i)                                   any lack of validity or enforceability of
such Letter of Credit, this Agreement, or any other agreement or instrument
relating thereto;

 

(ii)                                the existence of any claim, counterclaim,
set-off, defense or other right that the Borrower may have at any time against
any beneficiary or any transferee of such Letter of Credit (or any Person for
whom any such 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 such Letter of Credit or any agreement
or instrument relating thereto, or any unrelated transaction;

 

- 25 -

 

(iii)                             any draft, demand, certificate or other document
presented under such 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 such Letter
of Credit;

 

(iv)                            any payment by the L/C Issuer under such
Letter of Credit against presentation of a draft or certificate that does not
strictly comply with the terms of such Letter of Credit; or any payment made by
the L/C Issuer under such 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 any
beneficiary or any transferee of such Letter of Credit, including any arising
in connection with any proceeding under any Debtor Relief Law; or

 

(v)                               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.

 

The
Borrower shall promptly examine a copy of each Letter of Credit and each
amendment thereto that is delivered to it and, in the event of any claim of
noncompliance with the Borrower’s instructions or other irregularity, the
Borrower will immediately notify the L/C Issuer.  The Borrower shall be conclusively deemed to
have waived any such claim against the L/C Issuer and its correspondents unless
such notice is given as aforesaid.

 

(f)                                 Role of L/C Issuer. 
Each Lender and the Borrower agree that, in paying any drawing under a
Letter of Credit, the L/C Issuer shall not have any responsibility to obtain
any document (other than any sight draft, certificates and documents expressly
required by the Letter of Credit) or to ascertain or inquire as to the validity
or accuracy of any such document or the authority of the Person executing or
delivering any such document.  None of
the L/C Issuer, any Agent-Related Person, nor any of the respective
correspondents, participants or assignees of the L/C Issuer shall be liable to
any Lender for (i) any action taken or omitted in connection herewith at
the request or with the approval of the Lenders or the Required Lenders, as
applicable; (ii) any action taken or omitted in the absence of gross
negligence or willful misconduct; or (iii) the due execution,
effectiveness, validity or enforceability of any document or instrument related
to any Letter of Credit or Letter of Credit Application.  The Borrower hereby assumes all risks of the
acts or omissions of any beneficiary or transferee with respect to its use of
any Letter of Credit; provided, however, that this assumption is
not intended to, and shall not, preclude the Borrower’s pursuing such rights and
remedies as it may have against the beneficiary or transferee at law or under
any other agreement.  None of the L/C
Issuer, any Agent-Related Person, any Lender, nor any of the respective
correspondents, participants or assignees of the L/C Issuer, shall be liable or
responsible to the Borrower for any of the matters described in clauses (i) through
(v) of Section 2.03(e); provided, however, that
anything in such clauses 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 damages have
been determined by a final non-appealable judgment of a court of competent
jurisdiction to have been 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.  In furtherance and not
in limitation of the foregoing, the L/C Issuer may accept documents that appear
on their face to be in order, without responsibility for further investigation,
regardless of any notice or information to the contrary, and the L/C Issuer
shall not be responsible for the validity or sufficiency of any instrument
transferring or assigning or purporting to transfer or assign a Letter of
Credit or the rights or benefits thereunder or proceeds thereof, in whole or in
part, which may prove to be invalid or ineffective for any reason.

 

- 26 -

 

(g)                               Cash Collateral. 
Upon the request of the Administrative Agent, (i) if the L/C Issuer
has honored any full or partial drawing request under any Letter of Credit and
such drawing has resulted in an L/C Borrowing, or (ii) if, as of the
Letter of Credit Expiration Date, any Letter of Credit may for any reason
remain outstanding and partially or wholly undrawn, the Borrower shall
immediately Cash Collateralize the then Outstanding Amount of all L/C
Obligations (in an amount equal to such Outstanding Amount determined as of the
date of such L/C Borrowing or the Letter of Credit Expiration Date, as the case
may be).  For purposes hereof, “Cash
Collateralize” means to pledge and deposit with or deliver to the
Administrative Agent, for the benefit of the L/C Issuer and the Lenders, as
collateral for the L/C Obligations, cash or deposit account balances pursuant
to documentation in form and substance satisfactory to the Administrative Agent
and the L/C Issuer (which documents are hereby consented to by the
Lenders).  Derivatives of such term have
corresponding meanings.  The Borrower hereby
grants to the Administrative Agent, for the benefit of the L/C Issuer and the
Lenders, a security interest in all such cash, deposit accounts and all
balances therein and all proceeds of the foregoing.  Cash collateral shall be maintained in
blocked, non-interest bearing deposit accounts at PNC Bank.

 

(h)                               Applicability of ISP. 
Unless otherwise expressly agreed by the L/C Issuer and the Borrower
when a Letter of Credit is issued (including any such agreement applicable to
an Existing Letter of Credit), the rules of the “International Standby
Practices 1998” published by the Institute of International Banking Law &
Practice (or such later version thereof as may be in effect at the time of
issuance) (the “ISP”)  shall apply
to each standby Letter of Credit.

 

(i)                                   Letter of Credit Fees. 
The Borrower shall pay to the Administrative Agent for the account of
each Lender in accordance with its Pro Rata Share a Letter of Credit fee for
each Letter of Credit equal to the Applicable Rate times the daily maximum amount
available to be drawn under such Letter of Credit (whether or not such maximum
amount is then in effect under such Letter of Credit).  Such Letter of Credit fees shall be computed
on a quarterly basis in arrears.  Such
Letter of Credit fees shall be due and payable quarterly in arrears on the last
Business Day of each March, June, September and December, commencing with the
first such date to occur after the issuance of such Letter of Credit, on the
Letter of Credit Expiration Date and thereafter on demand.  If there is any change in the Applicable Rate
during any quarter, the daily maximum amount of each Letter of Credit shall be
computed and multiplied by the Applicable Rate separately for each period
during such quarter that such Applicable Rate was in effect.

 

(j)                                   Fronting Fee and Documentary and
Processing Charges Payable to L/C Issuer.  The Borrower
shall pay directly to the L/C Issuer for its own account a fronting fee with
respect to each Letter of Credit in the amounts and at the times specified in
the Fee Letters.  In addition, the
Borrower shall pay directly to the L/C Issuer for its own account the customary
issuance, presentation, amendment and other processing fees, and other standard
costs and charges, of the L/C Issuer relating to Letters of Credit as from time
to time in effect.  Such customary fees
and standard costs and charges are due and payable on demand and are
nonrefundable.

 

(k)                               Conflict with Letter of Credit
Application.  In the event of any conflict between the
terms hereof and the terms of any Letter of Credit Application, the terms
hereof shall control.

 

2.04.                Swing Line Loans.

 

(a)                               The Swing Line. 
Subject to the terms and conditions set forth herein, the Swing Line
Lender may in its sole discretion, and in reliance upon the agreements of the
other Lenders set forth in this Section 2.04, make loans (each such
loan, a “Swing Line Loan”) to the Borrower from time to time on any
Business Day during the Availability Period in an aggregate amount not to
exceed at any time outstanding the amount of the Swing Line Sublimit,
notwithstanding the fact that such Swing Line Loans, 

 

- 27 -

 

when aggregated
with the Pro Rata Share of the Outstanding Amount of Committed Loans and L/C
Obligations of the Lender acting as Swing Line Lender, may exceed the amount of
such Lender’s Commitment; provided, however, that after giving
effect to any Swing Line Loan, (i) the Total Outstandings shall not exceed
the Aggregate Commitments, and (ii) the aggregate Outstanding Amount of the
Committed Loans of any Lender, plus such Lender’s Pro Rata Share of the
Outstanding Amount of all L/C Obligations, plus such Lender’s Pro Rata
Share of the Outstanding Amount of all Swing Line Loans shall not exceed such
Lender’s Commitment, and provided, further, that the Borrower
shall not use the proceeds of any Swing Line Loan to refinance any outstanding
Swing Line Loan.  Within
the foregoing limits, and subject to the other terms and conditions hereof, the
Borrower may borrow under this Section 2.04, prepay under Section 2.05,
and reborrow under this Section 2.04.  The Borrower will have the option to choose
whether the Swing Line Loan is a (1) Base Rate Loan, or a (2) Daily Floating
Eurodollar Rate Loan.  Immediately
upon the making of a Swing Line Loan, each Lender shall be deemed to, and
hereby irrevocably and unconditionally agrees to, purchase from the Swing Line
Lender a risk participation in such Swing Line Loan in an amount equal to the
product of such Lender’s Pro Rata Share times the amount of such Swing
Line Loan.

 

(b)                               Borrowing Procedures; Conversion to Base
Rate.  Each Swing Line Borrowing, and each
conversion of Swing Line Borrowings from one Type to the other shall be made
upon the Borrower’s irrevocable notice to the Swing Line Lender and the
Administrative Agent, which may be given by telephone.  Each such notice must be received by the
Swing Line Lender and the Administrative Agent not later than 1:00 p.m. on
the requested borrowing date, and shall specify (i) the amount to be
borrowed, which shall be a minimum of $100,000,
(ii) the requested borrowing or conversion date, which shall be a Business
Day, and (iii) whether the loan is a Base Rate Loan or a Daily Floating
Eurodollar Rate Loan.  Each such
telephonic notice must be confirmed promptly by delivery to the Swing Line
Lender and the Administrative Agent of a written Swing Line Loan Notice,
appropriately completed and signed by a Responsible Officer of the
Borrower.  Promptly after receipt by the
Swing Line Lender of any telephonic Swing Line Loan Notice, the Swing Line
Lender will confirm with the Administrative Agent (by telephone or in writing)
that the Administrative Agent has also received such Swing Line Loan Notice
and, if not, the Swing Line Lender will notify the Administrative Agent (by
telephone or in writing) of the contents thereof.  Unless the Swing Line Lender has received
notice (by telephone or in writing) from the Administrative Agent (including at
the request of any Lender) prior to 2:00 p.m. on the date of the proposed
Swing Line Borrowing (A) directing the Swing Line Lender not to make such
Swing Line Loan as a result of the limitations set forth in the proviso to the
first sentence of Section 2.04(a), or (B) that one or more of
the applicable conditions specified in Article IV is not then
satisfied, then, subject to the terms and conditions hereof, the Swing Line
Lender will, not later than 4:00 p.m. on the borrowing date specified in
such Swing Line Loan Notice, make the amount of its Swing Line Loan available
to the Borrower.

 

(c)                               Refinancing of Swing Line Loans.

 

(i)                                   The Swing Line Lender at any time in its
sole and absolute discretion may request, on behalf of the Borrower (which
hereby irrevocably authorizes the Swing Line Lender to so request on its
behalf), that each Lender make a Base Rate Committed Loan in an amount equal to
such Lender’s Pro Rata Share of the amount of Swing Line Loans then
outstanding.  Such request shall be made
in writing (which written request shall be deemed to be a Committed Loan Notice
for purposes hereof) and in accordance with the requirements of Section 2.02,
without regard to the minimum and multiples specified therein for the principal
amount of Base Rate Loans, but subject to the unutilized portion of the
Aggregate Commitments and the conditions set forth in Section 4.02.  The Swing Line Lender shall furnish the
Borrower with a copy of the applicable Committed Loan Notice promptly after
delivering such notice to the Administrative Agent.  Each Lender shall make an amount equal to its
Pro Rata Share of the amount specified in such Committed Loan Notice available
to the Administrative Agent 

 

- 28 -

 

in Same Day Funds
for the account of the Swing Line Lender at the Administrative Agent’s Office
for Dollar-denominated payments not later than 1:00 p.m. on the day
specified in such Committed Loan Notice, whereupon, subject to Section 2.04(c)(ii),
each Lender that so makes funds available shall be deemed to have made a Base
Rate Committed Loan to the Borrower in such amount.  The Administrative Agent shall remit the
funds so received to the Swing Line Lender.

 

(ii)                                If for any reason any Swing Line Loan
cannot be refinanced by such a Committed Borrowing in accordance with Section 2.04(c)(i),
the request for Base Rate Committed Loans submitted by the Swing Line Lender as
set forth herein shall be deemed to be a request by the Swing Line Lender that
each of the Lenders fund its risk participation in the relevant Swing Line Loan
and each Lender’s payment to the Administrative Agent for the account of the
Swing Line Lender pursuant to Section 2.04(c)(i) shall be
deemed payment in respect of such participation.

 

(iii)                             If any Lender fails to make available to the
Administrative Agent for the account of the Swing Line Lender any amount
required to be paid by such Lender pursuant to the foregoing provisions of this
Section 2.04(c) by the time specified in Section 2.04(c)(i),
the Swing Line Lender shall be entitled to recover from such Lender (acting
through the Administrative Agent), on demand, such amount with interest thereon
for the period from the date such payment is required to the date on which such
payment is immediately available to the Swing Line Lender at a rate per annum
equal to the greater of the Federal Funds Open Rate and a rate determined by
the Swing Line Lender in accordance with banking industry rules on
interbank compensation.  A certificate of
the Swing Line Lender submitted to any Lender (through the Administrative
Agent) with respect to any amounts owing under this clause (iii) shall be
conclusive absent manifest error.

 

(iv)                            Each Lender’s obligation to make
Committed Loans or to purchase and fund risk participations in Swing Line Loans
pursuant to this Section 2.04(c) shall be absolute and
unconditional and shall not be affected by any circumstance, including (A) any
setoff, counterclaim, recoupment, defense or other right which such Lender may
have against the Swing Line Lender, the Borrower or any other Person for any
reason whatsoever, (B) the occurrence or continuance of a Default, or (C) any
other occurrence, event or condition, whether or not similar to any of the
foregoing; provided, however, that each Lender’s obligation to
make Committed Loans pursuant to this Section 2.04(c) is
subject to the conditions set forth in Section 4.02.  No such funding of risk participations shall
relieve or otherwise impair the obligation of the Borrower to repay Swing Line
Loans, together with interest as provided herein.

 

(d)                               Repayment of Participations.

 

(i)                                   At any time after any Lender has
purchased and funded a risk participation in a Swing Line Loan, if the Swing
Line Lender receives any payment on account of such Swing Line Loan, the Swing
Line Lender will distribute to such Lender its Pro Rata Share thereof in the
same funds as those received by the Swing Line Lender.

 

(ii)                                If any payment received by the Swing Line
Lender in respect of principal or interest on any Swing Line Loan is required
to be returned by the Swing Line Lender under any of the circumstances
described in Section 10.05 (including pursuant to any settlement entered
into by the Swing Line Lender in its discretion), each Lender shall pay to the
Swing Line Lender its Pro Rata Share thereof on demand of the Administrative
Agent, plus interest thereon from the date of such demand to the date such
amount is returned, at a rate per annum equal to the Federal Funds Open
Rate.  The Administrative Agent will make
such demand upon the request of the Swing Line Lender.  The obligations of the Lenders under this
clause shall survive the payment in full of the Obligations and the termination
of this Agreement.

 

- 29 -

 

(e)                               Interest for Account of Swing Line Lender.  The
Swing Line Lender shall be responsible for invoicing the Borrower for interest
on the Swing Line Loans.  Until each
Lender funds its Committed Loan or risk participation pursuant to this Section 2.04
to refinance such Lender’s Pro Rata Share of any Swing Line Loan, interest in
respect of such Pro Rata Share shall be solely for the account of the
Swing Line Lender.

 

(f)                                 Payments Directly to Swing Line Lender. 
The Borrower shall make all payments of principal and interest in
respect of the Swing Line Loans directly to the Swing Line Lender.

 

2.05.                Prepayments.

 

(a)                               The Borrower may, upon notice to the
Administrative Agent, at any time or from time to time voluntarily prepay
Committed Loans in whole or in part without premium or penalty; provided
that (i) such notice must be received by the Administrative Agent not
later than 11:00 a.m. (A) three Business Days prior to any date of
prepayment of Eurodollar
Rate Loans and (B) on the date of prepayment of Base Rate Committed
Loans; (ii) any prepayment of Fixed Period Eurodollar Rate Loans shall be in a
principal amount of $5,000,000 or a whole multiple of $1,000,000 in excess
thereof, and (iii) any prepayment of Base Rate Committed Loans shall be in
a principal amount of $500,000 or a whole multiple of $100,000 in excess
thereof or, in each case, if less, the entire principal amount thereof then
outstanding.  Each such notice shall
specify the date and amount of such prepayment and the Type(s) of
Committed 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.  Any prepayment of Fixed Period
Eurodollar Rate Loans shall be accompanied by all accrued interest
thereon, together with any additional amounts required pursuant to Section 3.05.  Each such prepayment shall be applied to the
Committed Loans of the Lenders in accordance with their respective Pro Rata
Shares.

 

(b)                               The Borrower may, upon notice to the
Swing Line Lender (with a copy to the Administrative Agent), at any time or
from time to time, voluntarily prepay Swing Line Loans in whole or in part
without premium or penalty; provided that (i) such notice must be
received by the Swing Line Lender and the Administrative Agent not later than
1:00 p.m. on the date of the prepayment, and (ii) any such prepayment
shall be in a minimum principal amount of $100,000.  Each such notice shall specify the date and
amount 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.

 

(c)                               If for any reason the Total Outstandings
at any time exceed the Aggregate Commitments then in effect, the
Borrower shall immediately prepay Loans and/or Cash Collateralize the L/C
Obligations in an aggregate amount equal to such excess; provided, however,
that the Borrower shall not be required to Cash Collateralize the L/C
Obligations pursuant to this Section 2.05(b) unless after the
prepayment in full of the Loans, the Total Outstandings exceed the Aggregate
Commitments then in effect.

 

2.06.                Termination or Reduction
of Commitments.  The
Borrower may, upon notice to the Administrative Agent, terminate the Aggregate
Commitments, or from time to time permanently reduce the Aggregate Commitments;
provided that (i) any such notice shall be received by the
Administrative Agent not later than 11:00 a.m. three Business Days prior
to the date of termination or reduction, (ii) any such partial reduction
shall be in an aggregate amount of $10,000,000 or any whole multiple of
$1,000,000 in excess thereof, (iii) the Borrower shall not terminate or
reduce the Aggregate Commitments if, after giving effect thereto and to any
concurrent prepayments hereunder, the Total Outstandings would 

 

- 30 -

 

exceed the Aggregate
Commitments, and (iv) if, after giving effect to any reduction of the
Aggregate Commitments, the Letter of Credit Sublimit or the Swing Line Sublimit
exceeds the amount of the Aggregate Commitments, such Letter of Credit Sublimit
or such Swing Line Sublimit shall be automatically reduced by the amount of
such excess.  The Administrative Agent
will promptly notify the Lenders of any such notice of termination or reduction
of the Aggregate Commitments.  Any
reduction of the Aggregate Commitments shall be applied to the Commitment of
each Lender according to its Pro Rata Share. 
All facility fees accrued until the effective date of any termination of
the Aggregate Commitments shall be paid on the effective date of such
termination.

 

2.07.                Repayment of Loans.

 

(a)                               The Borrower shall repay to the Lenders
on the Maturity Date the aggregate principal amount of Committed Loans
outstanding on such date.

 

(b)                               The Borrower shall repay each Swing Line
Loan on the earlier to occur of (i) the date ten Business Days after such
Swing Line Loan is made and (ii) the Maturity Date.

 

2.08.                Interest.

 

(a)                               Subject to the provisions of subsection (b) below,
(i) each Fixed Period Eurodollar Rate Loan shall bear interest on the
outstanding principal amount thereof for each Interest Period at a rate per
annum equal to the Fixed Period Eurodollar Rate for such Interest Period plus
the Applicable Rate; (ii) each Base Rate Committed Loan shall bear
interest on the outstanding principal amount thereof from the applicable
borrowing date at a rate per annum equal to the Base Rate plus the
Applicable Rate and (iii) each Swing Line Loan shall bear interest on the
outstanding principal amount thereof from the applicable borrowing date at a
rate per annum equal to the (1) Base Rate plus the Applicable Rate,
or (2) Daily Floating Eurodollar Rate plus the Applicable Rate.

 

(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 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.  Furthermore, while any
Event of Default exists, the Borrower shall pay interest on the principal
amount of all outstanding Obligations hereunder at a fluctuating interest rate
per annum at all times equal to the Default Rate 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.

 

2.09.                Fees.

 

(a)                               Facility Fee. 
The Borrower shall pay to the Administrative Agent for the account of
each Lender in accordance with its Pro Rata Share, a facility fee equal to the
Applicable Rate times the actual daily amount of the Aggregate
Commitments (or, if the Aggregate Commitments have terminated, on the
Outstanding Amount of all Committed Loans, Swing Line Loans, and L/C
Obligations), regardless of usage.  The
facility fee shall accrue at all times during the Availability Period (and
thereafter so long as any Committed Loans, Swing Line Loans, or L/C Obligations
remain outstanding), including at any time during which one or more of the
conditions in Article IV is not met, and shall be due and payable 

 

- 31 -

 

quarterly in
arrears on the last Business Day of each March, June, September and
December, commencing with the first such date to occur after the Closing Date,
and on the Maturity Date (and, if applicable, thereafter on demand).  The facility fee shall be calculated
quarterly in arrears, and if there is any change in the Applicable Rate during
any quarter, the actual daily amount shall be computed and multiplied by the
Applicable Rate separately (but not invoiced separately) for each period during
such quarter that such Applicable Rate was in effect.

 

(b)                               Other Fees.

 

(i)                                   The Borrower shall pay to each Arranger
and the Administrative Agent for their own respective accounts fees in the
amounts and at the times specified in the Fee Letters.  Such fees shall be fully earned when paid and
shall not be refundable for any reason whatsoever.

 

(ii)                                The Borrower shall pay to the Lenders
such fees as shall have been separately agreed upon in writing in the amounts
and at the times so specified.  Such fees
shall be fully earned when paid and shall not be refundable for any reason
whatsoever.

 

2.10.                Computation of Interest
and Fees.  All
computations of interest for Base Rate Loans shall be made on the basis of a
year of 365 or 366 days, as the case may be, and actual days elapsed.  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 for the day on which the Loan is made, and shall not
accrue on a Loan, or any portion thereof, for the day on which the Loan or such
portion is paid, provided that any Loan that is repaid on the same day
on which it is made shall, subject to Section 2.12(a), bear
interest for one day.

 

2.11.                Evidence of Debt.

 

(a)                               The Credit Extensions made by each Lender
shall be evidenced by one or more accounts or records maintained by such Lender
and by the Administrative Agent in the ordinary course of business.  The accounts or records maintained by the
Administrative Agent and each Lender shall be prima  facie
evidence of the amount of the Credit Extensions made by the Lenders 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 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 Letters of Credit
and Swing Line Loans.  In the event of
any conflict between the accounts and records maintained by the 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.

 

- 32 -

 

2.12.                Payments Generally.

 

(a)                               All payments to be made by the Borrower
shall be made without condition or deduction for any counterclaim, defense,
recoupment or setoff.  Except as
otherwise expressly provided herein, all payments by the Borrower hereunder
shall be made to the Administrative Agent, for the account of the respective
Lenders to which such payment is owed, at the Administrative Agent’s Office in
Dollars and in immediately available funds not later than 2:00 p.m. on the date
specified herein.  The Administrative
Agent will promptly distribute to each Lender its Pro Rata Share (or other
applicable share as provided herein) of such payment in like funds as received
by wire transfer to such Lender’s Lending Office.  All payments received by the Administrative
Agent after 2:00 p.m. shall be deemed received on the next succeeding
Business Day and any applicable interest or fee shall continue to accrue.

 

(b)                               If any payment to be made by the Borrower
shall come due on a day other than a Business Day, payment shall be made on the
next following Business Day, and such extension of time shall be reflected in
computing interest or fees, as the case may be.

 

(c)                               (i)                                   Unless the Borrower has notified the Administrative
Agent, prior to the date any payment is required to be made by it to the Administrative
Agent or the L/C Issuer hereunder, that the Borrower will not make such
payment, the Administrative Agent may assume that the Borrower 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 each of the Lenders or the L/C Issuer, as the case may be, shall forthwith
on demand repay to the Administrative Agent the portion of such assumed payment
that was made available to such Lender or the L/C Issuer in immediately
available funds, together with interest thereon in respect of each day from and
including the date such amount was made available by the Administrative Agent
to such Lender or the L/C Issuer to the date such amount is repaid to the
Administrative Agent in immediately available funds at the greater of the
Federal Funds Open Rate and a rate determined by the Administrative Agent in
accordance with banking industry rules on interbank compensation.

 

(ii)                                Unless the Administrative Agent shall
have received notice from a Lender prior to the proposed date of any Borrowing
of Fixed Period Eurodollar Rate Loans (or, in the case of any Borrowing of Base
Rate Committed Loans, prior to 12:00 noon on the date of such Borrowing) that
such Lender will not make available to the Administrative Agent such Lender’s
share of such Borrowing, the Administrative Agent may assume that such Lender
has made such share available on such date in accordance with Section 2.02
(or, in the case of a Borrowing of Base Rate Loans, that such Lender has made
such share available in accordance with and at the time required by Section 2.02)
and may, in reliance upon such assumption, make available to the Borrower a
corresponding amount.  In such event, if
a Lender has not in fact made its share of the applicable Borrowing available
to the Administrative Agent, then the applicable Lender and the Borrower
severally agree to pay to the Administrative Agent forthwith on demand such
corresponding amount in immediately available funds with interest thereon, for
each day from and including the date such amount is made available to the
Borrower to but excluding the date of payment to the Administrative Agent, at (A) in
the case of a payment to be made by such Lender, the greater of the Federal
Funds Open Rate and a rate determined by the Administrative Agent in accordance
with banking industry rules on interbank compensation plus any
administrative, processing or similar fees customarily charged by the
Administrative Agent in connection with the foregoing, and (B) in the case
of a payment to be made by the Borrower, the interest rate applicable to Base
Rate Loans.  If the Borrower and such
Lender shall pay such interest to the Administrative Agent for the same or an
overlapping period, the Administrative Agent shall promptly remit to the
Borrower the amount of such interest paid by the Borrower for such period.  If such Lender pays its share of the
applicable Borrowing to the Administrative Agent, then the amount so paid shall
constitute such Lender’s Committed Loan included 

 

- 33 -

 

in such
Borrowing.  Any payment by the Borrower
shall be without prejudice to any claim the Borrower may have against a Lender
that shall have failed to make such payment to the Administrative Agent.

 

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

 

(d)                               If any Lender makes available to the
Administrative Agent funds for any Loan to be made by such Lender as provided
in the foregoing provisions of this Article II, and such funds are
not made available to the Borrower by the Administrative Agent because the
conditions to the applicable Credit Extension set forth in Article IV
are not satisfied or waived in accordance with the terms hereof, the
Administrative Agent shall return such funds (in like funds as received from
such Lender) to such Lender, without interest.

 

(e)                               The obligations of the Lenders hereunder
to make Committed Loans and to fund participations in Letters of Credit and
Swing Line Loans are several and not joint. 
The failure of any Lender to make any Committed Loan, to fund any such
participation or to make any payment under Sections 10.04 or 10.05
on any date required hereunder shall not relieve any other Lender of its
corresponding obligation to do so on such date, and no Lender shall be
responsible for the failure of any other Lender to so make its Committed Loan,
purchase its participation or make its payment under Sections 10.04 or 10.05.

 

(f)                                 Nothing herein shall be deemed to
obligate any Lender to obtain the funds for any Loan in any particular place or
manner or to constitute a representation by any Lender that it has obtained or
will obtain the funds for any Loan in any particular place or manner.

 

2.13.                Sharing of Payments.

 

(a)                               If, other than as expressly provided
elsewhere herein, any Lender shall obtain on account of the Committed Loans
made by it, or the participations in L/C Obligations or in Swing Line Loans
held by it, any payment (whether voluntary, involuntary, through the exercise
of any right of set-off, or otherwise) in excess of its ratable share (or other
share contemplated hereunder) thereof, such Lender shall immediately (a) notify
the Administrative Agent of such fact, and (b) purchase from the other
Lenders such participations in the Committed Loans made by them, and/or such
subparticipations in the participations in L/C Obligations and Swing Line Loans
held by them, as the case may be, as shall be necessary to cause such
purchasing Lender to share the excess payment in respect of such Loans or such
participations, as the case may be, pro rata with each of them; provided,
however, that if all or any portion of such excess payment is thereafter
recovered from the purchasing Lender under any of the circumstances described
in Section 10.06 (including pursuant to any settlement entered into
by the purchasing Lender in its discretion), such purchase shall to that extent
be rescinded and each other Lender shall repay to the purchasing Lender the
purchase price paid therefor, together with an amount equal to such paying
Lender’s ratable share (according to the proportion of (i) the amount of
such paying Lender’s required repayment to (ii) the total amount so
recovered from the purchasing Lender) of any interest or other amount paid or
payable by the purchasing Lender in respect of the total amount so recovered,
without further interest thereon.  The
Borrower agrees that any Lender so purchasing a participation from another
Lender may, to the fullest extent permitted by law, exercise all its rights of
payment (including the right of set-off, but subject to Section 10.09)
with respect to such participation as fully as if such Lender were the direct
creditor of the Borrower in the amount of such participation.  The Administrative Agent will keep records
(which shall be conclusive and binding in the absence of manifest error) of
participations purchased under this Section and will in each case notify
the Lenders following any such purchases or repayments.  Each Lender that purchases a participation
pursuant to this Section shall from and after such purchase have the right
to give all notices, requests, demands, directions and other

 

- 34 -

 

 

communications
under this Agreement with respect to the portion of the Obligations purchased
to the same extent as though the purchasing Lender were the original owner of
the Obligations purchased.

 

(b)        If any
Lender shall fail to make any payment required to be made by it pursuant to Section 2.03(c),
2.04, or 9.05, then the Administrative Agent may, in its
discretion and notwithstanding any contrary provision hereof, (i) apply
any amounts thereafter received by the Administrative Agent for the account of such
Lender for the benefit of the Administrative Agent, the Swing Line Lender or
the L/C Issuers to satisfy such Lender’s obligations to any of them under such Section until
all such unsatisfied obligations are fully paid, and/or (ii) hold any such
amounts in a segregated account as cash collateral for, and application to, any
future funding obligations of such Lender under any such Section, in the case
of each of clauses (i) and (ii) above, in any order as determined by
the Administrative Agent in its discretion. 
For the avoidance of doubt, notwithstanding the application or holding
pursuant to this subsection of all or a part of a payment made by the Borrower
for the account of a Lender, as between the Borrower and such Lender the
Borrower shall be discharged from the obligation with respect to which such
payment was made as if and to the extent such application or holding had not
occurred.

 

2.14.                Extension of Stated
Maturity Date.

 

(a)                               Not earlier than 60 days prior to, nor
later than 30 days prior to, an annual anniversary of the Closing Date, the
Borrower may, upon notice to the Administrative Agent (who shall promptly
notify the Lenders), request a one year extension of the then current Stated
Maturity Date.  The Borrower may request
such an extension no more than two times. 
Within 15 days of delivery of such notice, each Lender shall notify the
Administrative Agent whether or not it consents to such extension (which
consent may be given or withheld in such Lender’s sole and absolute
discretion).  Any Lender not responding
within the above time period shall be deemed not to have consented to such
extension.  The Administrative Agent
shall promptly notify the Borrower and the Lenders of the Lenders’
responses.  If any Lender declines, or is
deemed to have declined, to consent to such extension (a “Declining Lender”),
the Borrower may cause any such Declining Lender to be removed or replaced as a
Lender pursuant to Section 10.16.

 

(b)                               Only if Lenders holding greater than 50%
of the Commitments (calculated prior to giving effect to any removals and/or
replacements of Lenders permitted herein) (the “Consenting Lenders”)
have consented to an extension requested pursuant to this Section 2.14,
the Stated Maturity Date shall be extended, with respect only to the Consenting
Lenders and any Lender replacing a Declining Lender pursuant to Section 10.16.  If so extended, the Stated Maturity Date, as
to the Consenting Lenders and each Lender replacing a Declining Lender pursuant
to Section 10.16, shall be extended to the date falling one year
after the existing Stated Maturity Date (except that if such date is not a
Business Day, such Stated Maturity Date, as so extended, shall be the next
preceding Business Day); provided, however, that the pre-existing
Stated Maturity Date shall remain in effect with respect to any Declining
Lender that is not replaced.  The
Administrative Agent and the Borrower shall promptly confirm to the Lenders
such extension, and the Administrative Agent shall distribute an amended Schedule
2.01 (which shall be deemed incorporated into this Agreement), to reflect
any changes in Lenders and their respective Commitments.

 

(c)                               As a condition precedent to such
extension, the Borrower shall have provided to the Administrative Agent the
following, in form and substance satisfactory to the Administrative Agent:

 

(i)                                   copies of corporate resolutions certified
by the Secretary or Assistant Secretary of the Borrower, or such other evidence
as may be satisfactory to the Administrative Agent, demonstrating that Borrower’s
incurrence of indebtedness hereunder with a maturity date of the Stated
Maturity Date, as extended pursuant to this Section 2.14, has been
duly authorized by all necessary 

 

- 35 -

 

corporate action,
together with an opinion of counsel to the Borrower (which may be internal
counsel) to such effect,

 

(ii)                                a certificate (in sufficient copies for
each Lender), signed by a Responsible Officer of the Borrower certifying that, (A) before
and after giving effect to such extension, the representations and warranties
contained in Article V (including without limitation the representation
and warranties set forth in Sections 5.04(c) and 5.05) and
the other Loan Documents are true and correct on and as of the date thereof,
except to the extent that such representations and warranties specifically
refer to an earlier date, in which case they are true and correct as of such
earlier date, and except that for purposes of this Section 2.14,
the representations and warranties contained in subsections (a) and (b) of
Section 5.04 shall be deemed to refer to the most recent statements
furnished pursuant to subsections (a) and (b), respectively, of Section
6.01, (B) no Default or Event of Default exists, and (C) all federal
and state Authorizations required in order to permit the Borrower to incur
indebtedness hereunder with a maturity date of the Stated Maturity Date, as
extended pursuant to this Section 2.14 have been obtained, listing
any such Authorizations obtained and attaching true and correct copies thereof,
or stating that no such Authorizations are required, and

 

(iii)                             an opinion of counsel to the Borrower (which may be
internal counsel) in form and substance reasonably satisfactory to the
Administrative Agent stating that all Authorizations of federal regulators and
of state regulators in Pennsylvania and West Virginia (and in any other state,
if any, where the Borrower or any of its Subsidiaries is subject to the PUC
regulation) required in order to permit the Borrower to incur indebtedness
hereunder with a maturity date of the Stated Maturity Date, as extended
pursuant to this Section 2.14, have been obtained and listing any
such Authorizations obtained, or stating that no such Authorizations are
required.

 

(d)                               The Borrower shall (i) on the
existing Stated Maturity Date, prior to or contemporaneous with giving effect
to any extension, pay amounts due, in full, to any Declining Lender that is not
replaced as a Lender pursuant to Section 10.16, and (ii) prepay any
Committed Loans outstanding on the existing Stated Maturity Date which were
made to it (and pay any additional amounts required pursuant to Section 3.05)
to the extent necessary to keep outstanding Committed Loans ratable with the
Pro Rata Shares of all the Lenders.

 

2.15.                Increase in Commitments.

 

(a)                               Provided there exists no Default, upon
notice to the Administrative Agent (which shall promptly notify the Lenders),
the Borrower may on a one-time basis request an increase in the Aggregate
Commitments to an amount not exceeding $2,000,000,000; provided that any
such request for an increase shall be in a minimum amount of $5,000,000 or a
whole multiple of $1,000,000 in excess thereof. 
At the time of sending such notice, the Borrower (in consultation with the
Administrative Agent) shall specify the time period within which each Lender is
requested to respond (which shall in no event be less than ten Business Days
from the date of delivery of such notice to the Lenders).  Each Lender shall notify the Administrative
Agent within such time period whether or not it agrees to increase its
Commitment and, if so, whether by an amount equal to, greater than, or less
than its Pro Rata Share of such requested increase.  Any Lender not responding within such time
period shall be deemed to have declined to increase its Commitment.  The Administrative Agent shall notify the
Borrower and each Lender of the Lenders’ responses to each request made
hereunder.  To achieve the full amount of
a requested increase, the Borrower may also invite additional Eligible
Assignees to become Lenders pursuant to a joinder agreement in form and
substance satisfactory to the Administrative Agent and its counsel.

 

(b)                               If the Aggregate Commitments are
increased in accordance with this Section, the Administrative Agent and the
Borrower shall determine the effective date (the “Increase Effective Date”)

 

- 36 -

 

and the final
allocation of such increase.  The
Administrative Agent shall promptly notify the Borrower and the Lenders of the
final allocation of such increase and the Increase Effective Date.  As a condition precedent to such increase,
the Borrower shall have provided to the Administrative Agent the following, in
form and substance satisfactory to the Administrative Agent:

 

(i)                                   copies of corporate resolutions certified
by the Secretary or Assistant Secretary of the Borrower, or such other evidence
as may be satisfactory to the Administrative Agent, demonstrating that Borrower’s
incurrence of indebtedness hereunder in the amount of the Aggregate Commitments
as increased pursuant to this Section 2.15 and with a maturity date
of the Stated Maturity Date then in effect, has been duly authorized by all
necessary corporate action, together with an opinion of counsel to the Borrower
(which may be internal counsel) to such effect,

 

(ii)                                a certificate dated as of the Increase
Effective Date (in sufficient copies for each Lender) signed by a Responsible
Officer of the Borrower certifying that, before and after giving effect to such
increase, (A) the representations and warranties contained in Article V
(including without limitation the representation and warranties set forth in Sections
5.04(c) and 5.05) and the other Loan Documents are true and
correct on and as of the Increase Effective Date, except to the extent that
such representations and warranties specifically refer to an earlier date, in
which case they are true and correct as of such earlier date, and except that
for purposes of this Section 2.15, the representations and
warranties contained in subsections (a) and (b) of Section 5.04
shall be deemed to refer to the most recent statements furnished pursuant to
subsections (a) and (b), respectively, of Section 6.01, and (B) no
Default exists, and

 

(iii)                             an opinion of counsel to the Borrower (which may be
internal counsel) in form and substance reasonably satisfactory to the
Administrative Agent stating that all Authorizations of federal regulators and
of state regulators in Pennsylvania and West Virginia (and in any other state,
if any, where the Borrower or any of its Subsidiaries is subject to the PUC
regulation) required in order to permit the Borrower to incur indebtedness
hereunder in the amount of the Aggregate Commitments as increased pursuant to
this Section 2.15 and with a maturity date of the Stated Maturity
Date then in effect have been obtained and listing any such Authorizations
obtained, or stating that no such Authorizations are required.

 

(c)                               The Borrower shall prepay any Committed
Loans outstanding on the Increase Effective Date (and pay any additional
amounts required pursuant to Section 3.05) to the extent necessary
to keep the outstanding Committed Loans ratable with any revised Pro Rata
Shares arising from any nonratable increase in the Commitments under this
Section.

 

(d)                               This Section shall supersede any
provisions in Sections 2.12 or 10.01 to the contrary.

 

2.16.                Defaulting Lenders.  Notwithstanding any provision of this
Agreement to the contrary, if any Lender becomes a Defaulting Lender, then the
following provisions shall apply for so long as such Lender is a Defaulting
Lender:

 

(a)                               fees shall cease to accrue on the
unfunded portion of the Commitment of such Defaulting Lender pursuant to Section 2.09(a);

 

(b)                               the Commitment and Total Outstandings of
such Defaulting Lender shall not be included in determining whether the
Required Lenders have taken or may take any action hereunder (including any
consent to any amendment, waiver or other modification pursuant to Section 10.01);
provided, that this clause (b) shall not apply to the vote of a Defaulting
Lender in the case of an amendment, waiver or other modification requiring the
consent of such Lender or each Lender directly affected thereby;

 

- 37 -

 

(c)                               if any Swing Line Exposure or L/C
Obligations exists at the time such Lender becomes a Defaulting Lender then:

 

(i)                                   all or any part of the Swing Line
Exposure and L/C Obligations of such Defaulting Lender shall be reallocated
among the non-Defaulting Lenders in accordance with their respective Pro Rata
Shares but only to the extent that (x) the sum of all non-Defaulting
Lenders’ Total Outstandings plus such Defaulting Lender’s Swing Line Exposure
and L/C Obligations does not exceed the total of all non-Defaulting Lenders’
Commitments and (y) no Default or Event of Default has occurred and is
continuing at such time;

 

(ii)                                if the reallocation described in clause (i) above
cannot, or can only partially, be effected, the Borrower shall within one
Business Day following notice by the Administrative Agent (x) first,
prepay such Swing Line Exposure and (y) second, cash collateralize
for the benefit of the applicable L/C Issuers the Borrower’s obligations
corresponding to such Defaulting Lender’s L/C Obligations (after giving effect
to any partial reallocation pursuant to clause (i) above) in accordance
with the procedures set forth in Section 2.03(g) for so long
as such L/C Obligations are outstanding;

 

(iii)                             if the Borrower cash collateralizes any portion of
such Defaulting Lender’s L/C Obligations pursuant to clause (ii) above,
the Borrower shall not be required to pay any fees to such Defaulting Lender
pursuant to Section 2.03(i) with respect to such Defaulting Lender’s L/C
Obligations during the period such Defaulting Lender’s L/C Obligations is cash
collateralized;

 

(iv)                            if the L/C Obligations of the
non-Defaulting Lenders is reallocated pursuant to clause (i) above, then
the fees payable to the Lenders pursuant to Section 2.09(a) and
Section 2.03(i) shall be adjusted in accordance with such
non-Defaulting Lenders’ Pro Rata Share; and

 

(v)                               if all or any portion of such Defaulting
Lender’s L/C Obligations is neither reallocated nor cash collateralized
pursuant to clause (i) or (ii) above, then, without prejudice to any
rights or remedies of the L/C Issuers or any other Lender hereunder, all letter
of credit fees payable under Section 2.03(i) with respect to
such Defaulting Lender’s L/C Obligations shall be payable to the applicable L/C
Issuer (and not to such Defaulting Lender) until and to the extent that such
L/C Obligations are reallocated and/or cash collateralized; and

 

(d)                               so long as such Lender is a Defaulting
Lender, the Swing Line Lender shall not be required to fund any Swing Line Loan
and the L/C Issuers shall not be required to issue, amend or increase any
Letter of Credit, unless such L/C Issuer is satisfied that the related exposure
and the Defaulting Lender’s then outstanding L/C Obligations will be 100%
covered by the Commitments of the non-Defaulting Lenders and/or cash collateral
will be provided by the Borrower in accordance with Section 2.16(c),
and participating interests in any newly made Swing Line Loan or any newly
issued or increased Letter of Credit shall be allocated among non-Defaulting
Lenders in a manner consistent with Section 2.16(c)(i) (and
such Defaulting Lender shall not participate therein).

 

If
(i) a Bankruptcy Event with respect to a Parent of any Lender shall occur
following the date hereof and for so long as such event shall continue or (ii) the
Swing Line Lender or any L/C Issuer has a good faith belief that any Lender has
defaulted in fulfilling its obligations under one or more other agreements in
which such Lender commits to extend credit, the Swing Line Lender shall not be
required to fund any Swing Line Loan and such L/C Issuer shall not be required
to issue, amend or increase any Letter of Credit, unless the Swing Line Lender
or such L/C Issuer, as the case may be, shall have entered into arrangements with
the Borrower or such Lender, satisfactory to the Swing Line Lender or such L/C
Issuer, as the case may be, to defease any risk to it in respect of such Lender
hereunder.

 

- 38 -

 

In
the event that the Administrative Agent, the Borrower, the Swing Line Lender
and all L/C Issuers agree that a Defaulting Lender has adequately remedied all
matters that caused such Lender to be a Defaulting Lender, then the Swing Line
Exposure and L/C Obligations of the Lenders shall be readjusted to reflect the
inclusion of such Lender’s Commitment and on such date such Lender shall
purchase at par such of the Loans of the other Lenders (other than Swing Line
Loans) as the Administrative Agent shall determine may be necessary in order
for such Lender to hold such Loans in accordance with its Pro Rata Share.

 

Article III.

TAXES, YIELD PROTECTION AND ILLEGALITY

 

3.01.                Taxes.

 

(a)                               Any and all payments by the Borrower to
or for the account of the Administrative Agent or any Lender under any Loan
Document shall be made free and clear of and without deduction for any and all
present or future taxes, duties, levies, imposts, deductions, assessments,
fees, withholdings or similar charges, and all liabilities with respect
thereto, excluding, in the case of the Administrative Agent and each
Lender, taxes imposed on or measured by its overall net income, and franchise
taxes imposed on it (in lieu of net income taxes), by the jurisdiction (or any
political subdivision thereof) under the Laws of which the Administrative Agent
or such Lender, as the case may be, is organized or maintains a lending office
(all such non-excluded taxes, duties, levies, imposts, deductions, assessments,
fees, withholdings or similar charges, and liabilities being hereinafter
referred to as “Taxes”).  If the
Borrower shall be required by any Laws to deduct any Taxes from or in respect
of any sum payable under any Loan Document to the Administrative Agent or any
Lender, (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), each of the Administrative Agent and such
Lender receives an amount equal to the sum it would have received had no such
deductions been made, (ii) the Borrower shall make such deductions, (iii) the
Borrower shall pay the full amount deducted to the relevant taxation authority
or other authority in accordance with applicable Laws, and (iv) within 30
days after the date of such payment, the Borrower shall furnish to the
Administrative Agent (which shall forward the same to such Lender) the original
or a certified copy of a receipt evidencing payment thereof.

 

(b)                               In addition, the Borrower agrees to pay
any and all present or future stamp, court or documentary taxes and any other
excise or property taxes or charges or similar levies which arise from any
payment made under any Loan Document or from the execution, delivery,
performance, enforcement or registration of, or otherwise with respect to, any
Loan Document (hereinafter referred to as “Other Taxes”).

 

(c)                               If the Borrower shall be required to
deduct or pay any Taxes or Other Taxes from or in respect of any sum payable
under any Loan Document to the Administrative Agent or any Lender, the Borrower
shall also pay to the Administrative Agent or to such Lender, as the case may
be, at the time interest is paid, such additional amount that the
Administrative Agent or such Lender specifies is necessary to preserve the
after-tax yield (after factoring in all taxes, including taxes imposed on or
measured by net income) that the Administrative Agent or such Lender would have
received if such Taxes or Other Taxes had not been imposed.

 

(d)                               The Borrower agrees to indemnify the
Administrative Agent and each Lender for (i) the full amount of Taxes and
Other Taxes (including any Taxes or Other Taxes imposed or asserted by any
jurisdiction on amounts payable under this Section) paid by the Administrative
Agent and such Lender, (ii) amounts payable under Section 3.01(c) and
(iii) any liability (including additions to tax, penalties, interest and
expenses) arising therefrom or with respect thereto, in each case whether or
not such Taxes or 

 

- 39 -

 

Other Taxes were
correctly or legally imposed or asserted by the relevant Governmental
Authority.  Payment under this subsection
(d) shall be made within 30 days after the date the Lender or the
Administrative Agent makes a demand therefor.

 

3.02.                Illegality.  If any Lender determines that any Law has
made it unlawful, or that any Governmental Authority has asserted that it is
unlawful, for any Lender or its applicable Lending Office to make, maintain or
fund Eurodollar Rate Loans, or to determine or charge interest rates based upon
the Eurodollar Rate, then, on notice thereof by such Lender to the Borrower
through the Administrative Agent, any obligation of such Lender to make or
continue Eurodollar Rate Loans or to convert Base Rate Loans to Eurodollar Rate
Loans shall be suspended until such Lender notifies the Administrative Agent
and the Borrower that the circumstances giving rise to such determination no
longer exist.  Upon receipt of such
notice, the Borrower shall, upon demand from such Lender (with a copy to the
Administrative Agent), prepay or, if applicable, convert all Eurodollar Rate
Loans of such Lender to Base Rate Loans, either on the last day of the Interest
Period therefor, if such Lender may lawfully continue to maintain such
Eurodollar Rate Loans to such day, or immediately, if such Lender may not
lawfully continue to maintain such Eurodollar Rate Loans.  Upon any such prepayment or conversion, the
Borrower shall also pay accrued interest on the amount so prepaid or
converted.  Each Lender agrees to designate
a different Lending Office if such designation will avoid the need for such
notice and will not, in the good faith judgment of such Lender, otherwise be
materially disadvantageous to such Lender.

 

3.03.                Inability to Determine
Rates.  If the Required Lenders
determine that for any reason adequate and reasonable means do not exist for
determining the Eurodollar Rate for any requested Interest Period with respect
to a proposed Eurodollar Rate Loan, or that the Eurodollar Rate for any
requested Interest Period with respect to a proposed Eurodollar Rate Loan does
not adequately and fairly reflect the cost to such Lenders of funding such
Loan, the Administrative Agent will promptly so notify the Borrower and each
Lender.  Thereafter, the obligation of the
Lenders to make or maintain Eurodollar Rate Loans shall be suspended until the
Administrative Agent (upon the instruction of the Required Lenders) revokes
such notice.  Upon receipt of such
notice, the Borrower may revoke any pending request for a Borrowing of,
conversion to or continuation of Eurodollar Rate Loans or, failing that, will
be deemed to have converted such request into a request for a Borrowing of Base
Rate Loans in the amount specified therein.

 

3.04.                Increased Cost and
Reduced Return; Capital Adequacy.

 

(a)                               If any Lender determines that as a result
of any Change in Law, or such Lender’s compliance therewith, there shall be any
increase in the cost to such Lender of agreeing to make or making, funding or
maintaining Eurodollar Rate Loans or (as the case may be) issuing or
participating in Letters of Credit, or a reduction in the amount received or
receivable by such Lender in connection with any of the foregoing (excluding
for purposes of this subsection (a) any such increased costs or reduction
in amount resulting from (i) Taxes or Other Taxes (as to which Section 3.01
shall govern), (ii) changes in the basis of taxation of overall net income or
overall gross income by the United States or any foreign jurisdiction or any
political subdivision of either thereof under the Laws of which such Lender is
organized or has its Lending Office, and (iii) reserve requirements
reflected in the Eurodollar Rate), then from time to time upon demand of such
Lender (with a copy of such demand to the Administrative Agent), the Borrower
shall pay to such Lender such additional amounts as will compensate such Lender
for such increased cost or reduction.

 

(b)                               If any Lender determines that any Change
in Law regarding capital adequacy, or compliance by such Lender (or its Lending
Office) therewith, has the effect of reducing the rate of return on the capital
of such Lender or any corporation controlling such Lender as a consequence of
such Lender’s obligations hereunder (taking into consideration its policies
with respect to capital adequacy and 

 

- 40 -

 

such Lender’s
desired return on capital), then from time to time upon demand of such Lender
(with a copy of such demand to the Administrative Agent), the Borrower shall pay
to such Lender such additional amounts as will compensate such Lender for such
reduction.

 

3.05.                Funding Losses.  Upon demand of any Lender (with a copy to the
Administrative Agent) from time to time, the Borrower shall promptly compensate
such Lender for and hold such Lender harmless from any loss, cost or expense
incurred by it as a result of:

 

(a)                               any continuation, conversion, payment or
prepayment of any Loan other than a Base Rate Loan or Daily Floating Eurodollar Rate Loan on
a day other than the last day of the Interest Period for such Loan (whether
voluntary, mandatory, automatic, by reason of acceleration, or otherwise);

 

(b)                               any failure by the Borrower (for a reason
other than the failure of such Lender to make a Loan) to prepay, borrow, continue
or convert any Loan other than a Base Rate Loan or Daily Floating Eurodollar Rate Loan on
the date or in the amount notified by the Borrower; or

 

(c)                               any assignment of a Fixed Period
Eurodollar Rate Loan on a day other than the last day of the Interest Period
therefor as a result of a request by the Borrower pursuant to Section 10.16(a);

 

including
any loss or expense arising from the liquidation or reemployment of funds
obtained by it to maintain such Loan (excluding loss of anticipated profits) or
from fees payable to terminate the deposits from which such funds were
obtained.  The Borrower shall also pay
any customary administrative fees charged by such Lender in connection with the
foregoing.

 

For
purposes of calculating amounts payable by the Borrower to the Lenders under
this Section 3.05, each Lender shall be deemed to have funded each
Fixed Period Eurodollar Rate Loan made by it at the Fixed Period Eurodollar
Rate for such Loan by a matching deposit or other borrowing in the London
interbank eurodollar market for a comparable amount and for a comparable
period, whether or not such Fixed Period Eurodollar Rate Loan was in fact so
funded.

 

3.06.                Matters Applicable to
all Requests for Compensation.  A certificate of the Administrative Agent or
any Lender claiming compensation under this Article III and setting
forth the additional amount or amounts to be paid to it hereunder shall be
conclusive in the absence of manifest error. 
In determining such amount, the Administrative Agent or such Lender may
use any reasonable averaging and attribution methods.

 

3.07.                Survival.  All of the Borrower’s obligations under this Article III
shall survive termination of the Aggregate Commitments and repayment of all
other Obligations hereunder.

 

Article IV.

CONDITIONS PRECEDENT TO CLOSING DATE AND TO CREDIT EXTENSIONS

 

4.01.                Conditions of Closing
Date and Initial Credit Extension.  The obligation of each Lender to make its
initial Credit Extension, hereunder is subject to satisfaction of the following
conditions precedent:

 

(a)                               The Administrative Agent’s receipt of the
following, each of which shall be originals or facsimiles (followed promptly by
originals) unless otherwise specified, each properly executed by a Responsible
Officer of the Borrower, each dated the Closing Date (or, in the case of
certificates of governmental officials, a recent date before the Closing Date)
and each in form and substance satisfactory to the Administrative Agent:

 

- 41 -

 

(i)                                   executed counterparts of this Agreement,
sufficient in number for distribution to the Administrative Agent, each Lender
and the Borrower;

 

(ii)                                a Note executed by the Borrower in favor
of each Lender requesting a Note;

 

(iii)                             such certificates of resolutions or other action,
incumbency certificates and/or other certificates of a Responsible Officer of
the Borrower as the Administrative Agent may require evidencing the identity,
authority and capacity of each Responsible Officer thereof authorized to act as
a Responsible Officer in connection with this Agreement and the other Loan
Documents to which the Borrower is a party;

 

(iv)                            a certificate of the Pennsylvania
Secretary of State evidencing that the Borrower is duly organized or formed,
and is validly existing, in good standing under the laws of the State of
Pennsylvania;

 

(v)                               a favorable opinion of Reed Smith LLP,
counsel to the Borrower, addressed to the Administrative Agent and each Lender,
as to the matters set forth in Exhibit E-1 and a favorable opinion
of the Deputy General Counsel of the Borrower, addressed to the Administrative
Agent and each Lender, as to the matters set forth in Exhibit E-2;

 

(vi)                            a certificate signed by a Responsible
Officer of the Borrower certifying (A) that the representations and
warranties of the Borrower contained in Article V are true and
correct on and as of the date hereof, (B) that no Default exists or would
result from the execution of this Agreement, (C) that there has been no
material adverse change since December 31, 2009 in the business, assets,
liabilities (actual or contingent), operations, or condition (financial or
otherwise) of the Borrower and its subsidiaries taken as a whole; and
(D) the current Public Debt Ratings;

 

(vii)                         evidence that the Commitments under the Existing Credit
Agreement have been or concurrently with the Closing Date are being terminated,
and that the Borrower has repaid all amounts owed thereunder upon such
termination; and

 

(viii)                      such other assurances, certificates, documents,
consents or opinions as the Administrative Agent, the L/C Issuer, the Swing
Line Lender or the Required Lenders reasonably may require.

 

(b)                               Any fees required to be paid on or before
the Closing Date shall have been paid.

 

Unless
waived by the Administrative Agent, the Borrower shall have paid all Attorney
Costs of the Administrative Agent to the extent invoiced prior to or on the
Closing Date.

 

4.02.                Conditions to all Credit
Extensions.  The
obligation of each Lender to honor any Request for Credit Extension (other than
(i) a Committed Loan Notice requesting only a conversion of Committed
Loans to the other Type, (ii) a continuation of Eurodollar Rate Loans, or (iii) a
Swing Line Loan Notice requesting only a conversion of Swing Line Loans to the
other Type) is subject to the following conditions precedent:

 

(a)                               The representations and warranties of the
Borrower contained in Article V (except the representations and
warranties in Sections 5.04(c), 5.05 and 5.06, as to any
matter which has theretofore been disclosed in writing by the Borrower to the
Lenders by written notice given to the Administrative Agent) or in any other
Loan Document, or which are contained in any document furnished at any time
under or in connection herewith or therewith, shall be true and correct on and
as of the date of such Credit 

 

- 42 -

 

Extension, except
that for purposes of this Section 4.02, the representations and
warranties contained in subsections (a) and (b) of Section 5.04
shall be deemed to refer to the most recent statements furnished pursuant to
clauses (a) and (b), respectively, of Section 6.01.

 

(b)                               No Default shall exist, or would result
from such proposed Credit Extension.

 

(c)                               The Administrative Agent and, if
applicable, the L/C Issuer or the Swing Line Lender shall have received a
Request for Credit Extension in accordance with the requirements hereof.

 

Each
Request for Extension (other than (i) a Committed Loan Notice requesting
only a conversion of Committed Loans to the other Type, (ii) a continuation
of Eurodollar Rate Loans, or (iii) a Swing Line Loan Notice requesting
only a conversion of Swing Line Loans to the other Type) submitted by the
Borrower shall be deemed to be a representation and warranty that the
conditions specified in Sections 4.02(a) and (b) have
been satisfied on and as of the date of the applicable Credit Extension.

 

Article V.

REPRESENTATIONS AND WARRANTIES

 

The
Borrower represents and warrants that:

 

5.01.                Corporate Existence and
Power.  The Borrower is a corporation
duly incorporated, validly existing and in good standing under the laws of the
jurisdiction of its incorporation, and has all corporate powers and all
material Authorizations required to carry on its business as now conducted.

 

5.02.                Corporate and
Governmental Authorization; No Contravention.  The Borrower’s incurrence of Debt hereunder,
and the execution, delivery and performance by the Borrower of this Agreement
and the Notes, are within the corporate powers of the Borrower, have been duly
authorized by all necessary corporate action, require no action by or in
respect of, or filing with, any Governmental Authority (except such as has been
obtained), do not contravene, or constitute a default under, any provision of
applicable law or regulation or of the certificate of incorporation or by-laws
of the Borrower or of any agreement, judgment, injunction, order, decree or
other instrument binding upon the Borrower or any of its Subsidiaries, or
result in the creation or imposition of any Lien on any asset of the Borrower
or any of its Subsidiaries.

 

5.03.                Binding Effect.  This Agreement constitutes a valid and
binding agreement of the Borrower, and each Note, when executed and delivered
in accordance with this Agreement, will constitute a valid and binding
obligation of the Borrower, in each case enforceable in accordance with its
terms, except as such enforcement may be limited by bankruptcy, insolvency or
similar laws of general application relating to the enforcement of creditors’
rights.

 

5.04.                Financial Information.

 

(a)                               The consolidated balance sheet of the
Borrower and its Consolidated Subsidiaries as of December 31, 2009, and
the related consolidated statements of income, cash flows and changes in
stockholders’ equity for the fiscal year then ended, reported on by Ernst &
Young LLP, independent certified public accountants for the Borrower, and set
forth in the Borrower’s 2009 Form 10-K, a copy of which has been delivered
to each of the Lenders, (i) fairly present, in conformity with GAAP, the
consolidated financial position of the Borrower and its Consolidated
Subsidiaries as of such date and their consolidated results of operations and
cash flows for such fiscal year, and (ii) show, to the extent required by
GAAP, all material indebtedness and other liabilities, direct or contingent, of
the Borrower and its Subsidiaries as of the date thereof, including liabilities
for taxes, material commitments and Debt.

 

- 43 -

 

(b)                               The unaudited consolidated balance sheet
of the Borrower and its Consolidated Subsidiaries as of September 30, 2010, and
the related unaudited consolidated statements of income and cash flows for the
three months then ended, set forth in the Borrower’s Form 10-Q for the
quarter ended September 30, 2010, a copy of which has been delivered to
each of the Lenders, fairly present, in conformity with GAAP applied on a basis
consistent with the financial statements referred to in subsection (a) of
this Section, the consolidated financial position of the Borrower and its
Consolidated Subsidiaries as of such date and their consolidated results of
operations and cash flows for such three month period (subject to normal
year-end adjustments).

 

(c)                               Since December 31, 2009 there has
been no material adverse change in the business, financial position or results
of operations of the Borrower and its Consolidated Subsidiaries, considered as
a whole.

 

5.05.                Litigation.  There is no action, suit, proceeding or
investigation pending against, or, to the knowledge of the Borrower, threatened
against or affecting, the Borrower or any of its Subsidiaries before any
Governmental Authority in which there is a reasonable possibility of an adverse
decision which could materially adversely affect the business, consolidated
financial position or consolidated results of operations of the Borrower and
its Consolidated Subsidiaries, considered as a whole, or which in any manner
draws into question the validity or enforceability of this Agreement or the
Notes.

 

5.06.                No Default.  Neither the Borrower nor any of its
Subsidiaries is in default under or with respect to any Contractual Obligation
which could be reasonably expected to have a material adverse effect on the
business, financial condition, results of operations or prospects of the Borrower
and its Consolidated Subsidiaries, considered as a whole.

 

5.07.                Compliance with ERISA.  Each member of the ERISA Group has fulfilled
its obligations under the minimum funding standards of ERISA and the Internal
Revenue Code with respect to each Plan and is in compliance in all material
respects with the presently applicable provisions of ERISA and the Internal
Revenue Code with respect to each Plan. 
No member of the ERISA Group has (i) sought a waiver of the minimum
funding standards under the Pension Funding Rules, (ii) failed to make any
contribution or payment to any Plan or Multiemployer Plan or in respect of any
Benefit Arrangement, or made any amendment to any Plan or Benefit Arrangement,
which has resulted or could result in the imposition of a Lien or the posting
of a bond or other security under ERISA or the Internal Revenue Code, or (iii) incurred
any liability under Title IV of ERISA other than a liability to the PBGC for
premiums under Section 4007 of ERISA.

 

5.08.                Environmental Matters.  In the ordinary course of its business, the
Borrower conducts an ongoing review of the effect of Environmental Laws on the
business, operations and properties of the Borrower and its Subsidiaries, in
the course of which it identifies and evaluates associated liabilities and
costs (including, without limitation, any capital or operating expenditures
required for clean-up or closure of properties presently or previously owned,
any capital or operating expenditures required to achieve or maintain
compliance with environmental protection standards imposed by law or as a
condition of any license, permit or contract, any related constraints on
operating activities, including any periodic or permanent shutdown of any
facility or reduction in the level of or change in the nature of operations
conducted thereat, any costs or liabilities in connection with off-site
disposal of wastes or Hazardous Substances, and any actual or potential
liabilities to third parties, including employees, and any related costs and
expenses).  On the basis of this review,
the Borrower has concluded that such associated liabilities and costs,
including the costs of compliance with Environmental Laws, are unlikely to have
a material adverse effect on the business, financial condition, results of
operations or prospects of the Borrower and its Consolidated Subsidiaries,
considered as a whole.

 

- 44 -

 

 

5.09.     Taxes.  The Borrower and its Subsidiaries have filed
all United States Federal income tax returns and all other material tax returns
which are required to be filed by them, and have paid all taxes due pursuant to
such returns or pursuant to any assessment received by the Borrower or any
Subsidiary (other than those not yet delinquent and payable without premium or
penalty, and except for those being diligently contested in good faith by
appropriate proceedings, and in each case, for which adequate reserves and
provisions for taxes have been made on the books of the Borrower and each
Subsidiary).  The charges, accruals and
reserves on the books of the Borrower and its Subsidiaries in respect of taxes
or other governmental charges are, in the opinion of the Borrower, adequate.

 

5.10.     Subsidiaries.  Each of the Borrower’s corporate Subsidiaries
is a corporation duly incorporated, validly existing and in good standing under
the laws of its jurisdiction of incorporation, and has all corporate powers and
all material governmental authorizations required to carry on its business as
now conducted, except where the absence of any of the foregoing could not
reasonably be expected to have a material adverse effect on the business,
financial condition, results of operations or prospects of the Borrower and its
Consolidated Subsidiaries, considered as a whole.

 

5.11.     Regulatory Restrictions
on Borrowing; Margin Regulations.

 

(a)          None of the Borrower, any Person Controlling the Borrower, or any Subsidiary
is an “investment company” within
the meaning of the Investment Company Act of 1940, as amended.

 

(b)          The Borrower is not engaged and will not
engage, principally or as one of its important activities, in the business of
purchasing or carrying margin stock (within the meaning of Regulation U issued
by the FRB), or extending credit for the purpose of purchasing or carrying
margin stock.  Following the application
of the proceeds of each Borrowing or drawing under each Letter of Credit, not
more than 25% of the value of the assets (either of the Borrower only or of the
Borrower and its Subsidiaries on a consolidated basis) subject to the
provisions of Section 7.01 or Section 7.05 or subject
to any restriction contained in any agreement or instrument between the
Borrower and any Lender or any Affiliate of any Lender relating to Indebtedness
and within the scope of Section 8.01(e) will be margin stock.

 

5.12.     Full Disclosure.  No statement, information, report,
representation, or warranty made by the Borrower in any Loan Document or
furnished to the Administrative Agent or any Lender by or on behalf of the
Borrower in connection with any Loan Document contains any untrue statement of
a material fact or omits any material fact required to be stated therein or
necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading.

 

Article VI. 

AFFIRMATIVE COVENANTS

 

The
Borrower agrees that, so long as any Lender has any Commitment hereunder, any
Letter of Credit remains outstanding or any amount payable hereunder remains
unpaid:

 

6.01.     Information.  The Borrower will deliver to the
Administrative Agent and each Lender:

 

(a)          as soon as available, and in any event
within 60 days after the end of each fiscal year of the Borrower, a consolidated
balance sheet of the Borrower and its Consolidated Subsidiaries as of the end
of such fiscal year and the related consolidated statements of income, cash
flows and changes in stockholders’ equity for such fiscal year, setting forth
in each case in comparative form the figures for the previous fiscal year, all
in reasonable detail and prepared in accordance with GAAP, audited and
accompanied by a report and opinion of an independent certified public
accountant of nationally 

 

- 45 -

 

recognized
standing selected by the Borrower, which report and opinion shall be prepared
in accordance with generally accepted auditing standards and shall not be
subject to any “going concern” or like qualification or exception or any
qualification or exception as to the scope of such audit;

 

(b)          as soon as available, and in any event
within 35 days after the end of each of the first three quarters of each fiscal
year of the Borrower, a consolidated balance sheet of the Borrower and its
Consolidated Subsidiaries as of the end of such quarter and the related
consolidated statements of income and cash flows for such quarter and for the
portion of the Borrower’s fiscal year ended at the end of such quarter, setting
forth in the case of such statements of income and cash flows, in comparative
form the figures for the corresponding quarter and the corresponding portion of
the Borrower’s previous fiscal year, all certified (subject to normal year-end
adjustments) as to fairness of presentation, conformity to GAAP and consistency
by the chief financial officer or the chief accounting officer of the Borrower;

 

(c)          simultaneously with the delivery of each
set of financial statements referred to in clauses  (a) and (b)
above, a certificate of a Responsible Officer of the Borrower substantially in
the form of the Compliance Certificate attached hereto;

 

(d)          within five days after any officer of the
Borrower obtains actual knowledge of any Default, if such Default is then
continuing, a certificate of a Responsible Officer of the Borrower setting
forth the details thereof and the action which the Borrower is taking or
proposes to take with respect thereto;

 

(e)          promptly upon the mailing thereof to the
shareholders of the Borrower generally, copies of all financial statements,
reports and proxy statements so mailed;

 

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

 

(g)          if and when any member of the ERISA Group
(i) gives or is required to give notice to the PBGC of any “reportable
event” (as defined in Section 4043 of ERISA) with respect to any Plan
which might constitute grounds for a termination of such Plan under Title IV of
ERISA, or knows that the plan administrator of any Plan has given or is
required to give notice of any such reportable event, a copy of the notice of
such reportable event given or required to be given to the PBGC; (ii) receives
notice of complete or partial withdrawal liability under Title IV of ERISA or
notice that any Multiemployer Plan is in reorganization, is insolvent or has
been terminated, a copy of such notice; (iii) receives notice from the
PBGC under Title IV of ERISA of an intent to terminate, impose liability (other
than for premiums under Section 4007 of ERISA) in respect of, or appoint a
trustee to administer any Plan, a copy of such notice; (iv) applies for a
waiver of the minimum funding standard under the Pension Funding Rules, a copy
of such application; (v) gives notice of intent to terminate any Plan
under Section 4041(c) of ERISA, a copy of such notice and other
information filed with the PBGC; (vi) gives notice of withdrawal from any
Plan pursuant to Section 4063 of ERISA, a copy of such notice; (vii) fails
to make any payment or contribution to any Plan or Multiemployer Plan or in
respect of any Benefit Arrangement or makes any amendment to any Plan or
Benefit Arrangement which has resulted or could result in the imposition of a
Lien or the posting of a bond or other security, a certificate of the chief
financial officer or the chief accounting officer of the Borrower setting forth
details as to such occurrence and action, if any, which the Borrower or
applicable member of the ERISA Group is required or proposes to take; or (viii) determines
that any Pension Plan is considered an at-risk plan or a plan in endangered or
critical status within the meaning of Sections 430, 431 and 432 of the Code or
Sections 303, 304 and 305 of ERISA, a certification of funding status from the
enrolled actuary for the Pension Plan;

 

- 46 -

 

(h)          notice that S&P or Moody’s has
changed the equity treatment for any securities if such change would be
relevant to the determination of whether such securities are Hybrid Equity
Securities, such notice to be given by the Borrower promptly upon receiving
notice from S&P or Moody’s, or promptly upon otherwise acquiring actual
knowledge of the foregoing; and

 

(i)            from time to time, such additional
information regarding the financial position or business of the Borrower and
its Subsidiaries as the Administrative Agent, at the request of any Lender, may
reasonably request.

 

Documents
required to be delivered pursuant to Section 6.01(a), (b), (e) or
(f) (to the extent any such documents are included in materials
otherwise filed with the SEC) may be delivered electronically and if so
delivered, shall be deemed to have been delivered on the date (i) (A) on
which the Borrower posts such documents, or provides a link thereto on the
Borrower’s website on the Internet at the website address listed on Schedule 10.02;
or (B) on which such documents are posted on the Borrower’s behalf on
IntraLinks/IntraAgency 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), and (ii) on
which the Borrower notifies (which may be by facsimile or electronic mail) the
Administrative Agent and each Lender of the posting of any such documents; provided
that the Borrower shall deliver paper copies or soft copies (by electronic
mail) of such documents to the Administrative Agent or any Lender that requests
the Borrower to deliver such paper copies or soft copies.  Notwithstanding anything contained herein, in
every instance the Borrower shall be required to provide paper copies of the
Compliance Certificates required by Section 6.01(c) to the
Administrative Agent.  Except for such
Compliance Certificates, the Administrative Agent shall have no obligation to
request the delivery or to maintain copies of the documents referred to above,
and in any event shall have no responsibility to monitor compliance by the
Borrower with any such request for delivery, and each Lender shall be solely
responsible for requesting delivery to it or maintaining its copies of such
documents.

 

The
Borrower hereby acknowledges that (a) the Administrative Agent and/or the
Arrangers will make available to the Lenders and the L/C Issuer materials
and/or information provided by or on behalf of the Borrower hereunder
(collectively, “Borrower Materials”) by posting the Borrower Materials
on IntraLinks or another similar electronic system (the “Platform”) and (b) 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 the Borrower or its securities) (each, a “Public Lender”).  The Borrower hereby agrees that (w) all
Borrower Materials that are to be made available 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; (x) by
marking Borrower Materials “PUBLIC,” the Borrower shall be deemed to have
authorized the Administrative Agent, the Arranger, the L/C Issuer and the
Lenders to treat such Borrower Materials as not containing any material
non-public information with respect to the Borrower or its securities for
purposes of United States Federal and state securities laws (provided, however,
that to the extent such Borrower Materials constitute Information, they shall
be treated as set forth in Section 10.08); (y) all Borrower
Materials marked “PUBLIC” are permitted to be made available through a portion
of the Platform designated “Public Investor;” and (z) the Administrative
Agent and the Arranger shall be entitled to treat any Borrower Materials that
are not marked “PUBLIC” as being suitable only for posting on a portion of the
Platform not designated “Public Investor.”

 

6.02.     Payment of Obligations.  The Borrower will pay and discharge, and will
cause each Subsidiary to pay and discharge, at or before maturity, all their
respective material obligations and liabilities (including, without limitation,
tax liabilities and claims of materialmen, warehousemen and the like, which if
unpaid might by law give rise to a Lien), except where the same may be
contested in good faith by appropriate proceedings, and will maintain, and will
cause each Subsidiary to maintain, in 

 

- 47 -

 

accordance with generally
accepted accounting principles, appropriate reserves for the accrual of any of
the same.

 

6.03.     Maintenance of Property;
Insurance.

 

(a)          The Borrower will keep, and will cause
each Subsidiary to keep, all material property useful and necessary in its
business in good working order and condition, ordinary wear and tear excepted.

 

(b)          The Borrower will, and will cause each of
its Subsidiaries to, maintain (either in the name of the Borrower or in such
Subsidiary’s own name) with financially sound and responsible insurance
companies, insurance with respect to their respective properties and business
in at least such amounts, against at least such risks and with such risk
retention as are customarily maintained, insured against or retained, as the
case may be, by companies of established repute engaged in the same or a
similar business, to the extent available at the time in question on
commercially reasonable terms; and will furnish to the Lenders, upon request
from the Administrative Agent, information presented in reasonable detail as to
the insurance so carried.

 

6.04.     Conduct of Business and
Maintenance of Existence.  The
Borrower will preserve, renew and keep in full force and effect, and will cause
each Subsidiary to preserve, renew and keep in full force and effect their
respective legal existence and good standing under the Laws of the jurisdiction
of its organization and their respective rights, privileges and franchises
necessary or desirable in the normal conduct of business; provided that nothing
in this Section 6.04 shall prohibit (i) the merger of a
Subsidiary into the Borrower or the merger or consolidation of a Subsidiary
with or into another Person if (A) in the case of a domestic Subsidiary,
the corporation surviving such consolidation or merger is a domestic Subsidiary
and (B) in the case of a foreign Subsidiary, the entity surviving such
consolidation or merger is a Subsidiary, if, in each case covered by this
clause (i), after giving effect thereto, no Default shall have occurred and be
continuing, or (ii) the termination of the corporate existence of any
Subsidiary if the Borrower in good faith determines that such termination is in
the best interest of the Borrower and is not materially disadvantageous to the
Lenders.

 

6.05.     Compliance with Laws.  The Borrower will comply, and cause each
Subsidiary to comply, in all material respects with all applicable laws,
ordinances, rules, regulations, and requirements of governmental authorities
(including, without limitation, Environmental Laws and ERISA and the rules and
regulations thereunder) except where the necessity of compliance therewith is
contested in good faith by appropriate proceedings.

 

6.06.     Inspection of Property,
Books and Records.  The
Borrower will keep, and will cause each Subsidiary to keep, proper books of
record and account in which full, true and correct entries shall be made of all
dealings and transactions in relation to its business and activities; and will
permit, and will cause each Subsidiary to permit, representatives of any Lender
at such Lender’s expense to visit and inspect any of their respective
properties, to examine and make abstracts from any of their respective books
and records, and to discuss their respective affairs, finances and accounts
with their respective officers, employees and independent public accountants,
all at such reasonable times and as often as may reasonably be desired.

 

6.07.     Use of Proceeds.  The proceeds of the Loans made under this
Agreement will be used by the Borrower (i) to repay borrowings under the
Existing Credit Agreement, (ii) for working capital, capital expenditures,
share repurchases, and other lawful corporate purposes, and (iii) as
support for the Borrower’s commercial paper program, if any.

 

- 48 -

 

6.08.     Governmental Approvals
and Filings.  The
Borrower will, and will cause each Subsidiary to, keep and maintain in full
force and effect all action by or in respect of, or filing with, any
Governmental Authority necessary in connection with (a) the execution and
delivery of this Agreement, or any Note issued hereunder by the Borrower, (b) the
consummation by the Borrower of the transactions herein or therein
contemplated, (c) the performance of or compliance with the terms and
conditions hereof or thereof by the Borrower, or (d) any other actions
required to ensure the legality, validity, binding effect, enforceability or
admissibility in evidence hereof or thereof.

 

Article VII. 

NEGATIVE COVENANTS

 

So
long as any Lender shall have any Commitment hereunder, any Loan or other
Obligation hereunder shall remain unpaid or unsatisfied, or any Letter of
Credit shall remain outstanding:

 

7.01.     Liens.  Neither the Borrower nor any Subsidiary
shall, directly or indirectly, create, incur, assume or suffer to exist any
Lien on any asset now owned or hereafter acquired by it, except:

 

(a)          Liens existing on the date of this
Agreement securing Debt outstanding on the date of this Agreement in an
aggregate principal or face amount not exceeding $10,000,000;

 

(b)          any Lien existing on any asset of any
Person at the time such Person becomes a Subsidiary, and not created in
contemplation of such event;

 

(c)          any Lien on any asset securing Debt
incurred or assumed for the purpose of financing all or any part of the cost of
acquiring such asset, provided that such Lien attaches to such asset
concurrently with or within 90 days after completion of the acquisition
thereof;

 

(d)          any Lien on any asset of any Person
existing at the time such Person is merged or consolidated with or into the
Borrower or a Subsidiary and not created in contemplation of such event;

 

(e)          any Lien existing on any asset prior to
the acquisition thereof by the Borrower or a Subsidiary, and not created in
contemplation of such acquisition;

 

(f)           any Lien arising out of the refinancing,
extension, renewal or refunding of any Debt secured by any Lien permitted by
any of the foregoing clauses of this Section; provided that such Debt is not
increased and is not secured by any additional assets;

 

(g)          Liens arising in the ordinary course of
its business which (i) do not secure Debt or obligations in respect of
Swap Contracts, (ii) do not secure any obligation in an amount exceeding
$20,000,000 and (iii) 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;

 

(h)          Liens on cash and cash equivalents to
secure obligations arising under Swap Contracts which Liens (i) are
granted by and governed by standard International Swaps and Derivatives
Association, Inc. (“ISDA”) documentation or by standard New York
Mercantile Exchange (“NYMEX”) documentation and (ii) secure Swap Contracts
consisting of derivative or futures transactions contemplated to be settled in
cash and not by physical delivery and which are non-speculative in nature and
are designed to minimize the risk of fluctuations in oil and gas prices with
respect to the Company’s operations in the ordinary course of its business;

 

- 49 -

 

(i)            (A) Liens on the oil and gas
properties, revenue therefrom, and other assets related to the ANPI Transaction
securing ANPI Obligations, as such Liens are described in documentation in
place as of the date of this Agreement, with such changes in such documentation
as, in the reasonable opinion of the Administrative Agent, do not adversely
affect the interest of the Lenders; or (B) in the event the Borrower
and/or one or more Subsidiaries assumes the ANPI Obligations and acquires the
assets secured by such obligations, then Liens on such assets shall be
permitted pursuant to this subparagraph (i) in order to secure the ANPI
Obligations as the same may be assumed and modified (but not increased in
principal amount), provided that the aggregate principal amount of the ANPI
obligations secured pursuant to this clause (B) shall not at any time
exceed the principal amount of $67,000,000;

 

(j)            Production Payments and Liens on the
properties covered thereby to secure performance obligations in connection
therewith, provided that the aggregate principal amount of balance sheet
obligations in respect of Production Payments may at no time exceed
$500,000,000; and

 

(k)          Liens not otherwise permitted by the
foregoing clauses of this Section securing Debt in an aggregate principal
or face amount at any date not to exceed $100,000,000.

 

7.02.     Debt to Total Capital.  Consolidated Debt will at no time exceed
sixty-five percent (65%) of Total Capital.

 

7.03.     Transactions with Affiliates.  The Borrower 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 with, any Affiliate, except on an
arms-length basis on terms at least as favorable to the Borrower or such
Subsidiary than could have been obtained from a third party who was not an
Affiliate; provided that the foregoing restrictions
shall not apply to transactions between or among the Borrower and any of its
wholly-owned Subsidiaries (other than Excluded Subsidiaries), provided  further  that
the foregoing provisions of this Section shall not prohibit any such
Person from declaring or paying any lawful dividend or other payment ratably in
respect of all of its capital stock of the relevant class so long as, after
giving effect thereto, no Default shall have occurred and be continuing.

 

7.04.     Limitation of Other
Restrictions on Dividends by Subsidiaries, etc.  The Borrower will not permit any Subsidiary
to be or become subject to any restriction of any nature (whether arising by
operation of law, by agreement, by its articles of incorporation, by-laws or
other constituent documents of such Subsidiary, or otherwise) on the right of
such Subsidiary from time to time to (w) declare and pay dividends or
distributions with respect to capital stock owned by the Borrower or any
Subsidiary, (x) pay any indebtedness, obligations or liabilities from time
to time owed to the Borrower or any Subsidiary, (y) make loans or advances
to the Borrower or any Subsidiary, or (z) transfer any of its properties
or assets to the Borrower or any Subsidiary, except:

 

(a)          legal restrictions under other applicable
Law, if any, and fraudulent conveyance or similar laws of general applicability
for the benefit of creditors of such Subsidiary generally;

 

(b)          with respect to clause (z) above:  (i) non-assignment provisions of any
executory contract or of any lease by the Borrower or such Subsidiary as
lessee, and (ii) restrictions on transfer of property subject to a Lien
permitted by Section 7.01 for the benefit of the holder of such
Lien;

 

(c)          restrictions applicable solely to an
Excluded Subsidiary; and

 

- 50 -

 

(d)          restrictions imposed by a PUC order or
other Law applicable to (i) any Subsidiary regulated by a PUC or (ii) the
immediate parent company of any such Subsidiary which has no material
Subsidiary not regulated by a PUC;

 

provided that the foregoing shall not prohibit financial
incurrence, maintenance and similar covenants that have the effect of
prohibiting or restricting the ability of a Subsidiary to make such payments or
transfers, or provisions that require that a certain amount of capital be
maintained.

 

7.05.     Mergers and Sales of
Assets.  The Borrower will not (i) consolidate
or merge with or into any other Person or (ii) sell, lease or otherwise
transfer, directly or indirectly, all or substantially all of the assets of the
Borrower and its Subsidiaries, taken as a whole, to any other Person; provided that the Borrower may merge with another Person if (x) the
Borrower is the corporation surviving such merger and (y) after giving
effect to such merger, no Default shall have occurred and be continuing.

 

7.06.     Change in Nature of
Business.  The
Borrower shall not, nor shall it permit any Subsidiary to, directly or
indirectly, engage in any material line of business substantially different
from those lines of business conducted by the Borrower and its Subsidiaries on
the date hereof or any business substantially related or incidental thereto.

 

7.07.     Use of Proceeds.  The
Borrower shall not use the proceeds of any Credit Extension, whether directly
or indirectly, for a purpose that entails a violation of Regulation U of the
FRB.

 

Article VIII. 

EVENTS OF DEFAULT AND REMEDIES

 

8.01.     Events of Default.  Any of the following shall constitute an
Event of Default:

 

(a)          Non-Payment. 
The Borrower fails to pay (i) when and as required to be paid
herein, any amount of principal of any Loan or any L/C Obligation, or (ii) within
five days after the same becomes due, any interest on any Loan or on any L/C
Obligation, or any facility or other fee due hereunder, or any other amount
payable hereunder or under any other Loan Document; or

 

(b)          Specific Covenants. 
The Borrower fails to perform or observe any term, covenant or agreement
contained in any of Sections 6.01(d), 6.04 (with respect to the
Borrower’s existence), 6.07 or 6.08 or Article VII;
or

 

(c)          Other Defaults. 
The Borrower fails to perform or observe any other covenant or agreement
(not specified in subsection (a) or (b) above) contained in any Loan
Document on its part to be performed or observed and such failure continues for
30 days; or

 

(d)          Representations and Warranties. 
Any representation, warranty, certification or statement of fact made or
deemed made by or on behalf of the Borrower, in this Agreement or in any other
Loan Document, or in any document delivered in connection herewith or therewith
shall be incorrect or misleading when made or deemed made; provided that
(except in the case of any representation, warranty or certification made with
respect to any financial statement of the Borrower) if such lack of correctness
is capable of being remedied or cured within a 30-day period, Borrower shall
have a period of 30 days after written notice thereof has been given to
Borrower by Administrative Agent (acting on the request of one or more Lenders)
within which to remedy or cure such lack of correctness; or

 

(e)          Cross-Payment Default; Cross-Acceleration. 
The Borrower or any Subsidiary (A) fails to make any payment when
due (whether by scheduled maturity, required prepayment, acceleration, 

 

- 51 -

 

demand, or
otherwise) in respect of any Material Financial Obligations, or (B) fails
to observe or perform any other agreement or condition relating to any Material
Debt or contained in any instrument or agreement evidencing, securing or
relating thereto, or any other event occurs, the effect of which default or
other event is to cause the maturity of such Material Debt to be accelerated or
to cause such Material Debt to be repurchased, prepaid, defeased or redeemed
(automatically or otherwise), or an offer to repurchase, prepay, defease or
redeem such Debt to be made, prior to its stated maturity; or

 

(f)           Insolvency Proceedings, Etc. 
The Borrower or any Material Subsidiary institutes or consents to the
institution of any proceeding under any Debtor Relief Law, or makes an assignment
for the benefit of creditors; or applies for or consents to the appointment of
any receiver, trustee, custodian, conservator, liquidator, rehabilitator or
similar officer for it or for all or any material part of its property; or any
receiver, trustee, custodian, conservator, liquidator, rehabilitator or similar
officer is appointed without the application or consent of such Person and the
appointment continues undischarged or unstayed for 60 calendar days; or any
proceeding under any Debtor Relief Law relating to any such Person or to all or
any material part of its property is instituted without the consent of such
Person and continues undismissed or unstayed for 60 calendar days, or an order
for relief is entered in any such proceeding; or

 

(g)          Inability to Pay Debts; Attachment.  (i) The
Borrower or any Material Subsidiary admits in writing its inability or fails
generally to pay its debts as they become due, or (ii) any writ or warrant
of attachment or execution or similar process is issued or levied against all
or any material part of the property of any such Person and is not released,
vacated or fully bonded within 30 days after its issue or levy; or

 

(h)          Judgments.  There is
entered against the Borrower or any Subsidiary final judgments or orders for
the payment of money in an aggregate amount exceeding $100,000,000 (to the
extent not covered by independent third-party insurance as to which the insurer
does not dispute coverage), and (A) enforcement proceedings are commenced
by any creditor upon such judgment or order, or (B) there is a period of
30 consecutive days during which a stay of enforcement of such judgment, by
reason of a pending appeal or otherwise, is not in effect; or

 

(i)            ERISA.  Any member of
the ERISA Group shall fail to pay when due an amount or amounts aggregating in
excess of $100,000,000 which it shall have become liable to pay under Title IV
of ERISA; or notice of intent to terminate a Material Plan shall be filed under
Title IV of ERISA by any member of the ERISA Group, any plan administrator or
any combination of the foregoing; or the PBGC shall institute proceedings under
Title IV of ERISA to terminate, to impose liability (other than for premiums
under Section 4007 of ERISA) in respect of, or to cause a trustee to be
appointed to administer, any Material Plan; or a condition shall exist by
reason of which the PBGC would be entitled to obtain a decree adjudicating that
any Material Plan must be terminated; or there shall occur a complete or
partial withdrawal from, or a default, within the meaning of Section 4219(c)(5) of
ERISA, with respect to, one or more Multiemployer Plans, which could cause one
or more members of the ERISA Group to incur a current payment obligation in
excess of $100,000,000 in the aggregate; or

 

(j)            Invalidity of Loan Documents. 
Any Loan Document (other than the Fee Letters), at any time after its
execution and delivery and for any reason other than as expressly permitted
hereunder or satisfaction in full of all the Obligations, ceases to be in full
force and effect; or the Borrower or any other Person contests in any manner
the validity or enforceability of any Loan Document; or the Borrower denies
that it has any or further liability or obligation under any Loan Document, or
purports to revoke, terminate or rescind any Loan Document; or

 

(k)          Change of Control. 
There occurs any Change of Control with respect to the Borrower.

 

- 52 -

 

8.02.     Remedies Upon Event of
Default.  If any Event of Default occurs
and is continuing, the Administrative Agent shall, at the request of, or may,
with the consent of, the Required Lenders, take any or all of the following
actions:

 

(a)          declare the commitment of each Lender to
make Loans and any obligations of the L/C Issuer to make L/C Credit Extensions
to be terminated, whereupon such commitments and obligation shall be
terminated;

 

(b)          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, without presentment, demand, protest or other
notice of any kind, all of which are hereby expressly waived by the Borrower;

 

(c)          require that the Borrower Cash
Collateralize the L/C Obligations (in an amount equal to the then Outstanding
Amount thereof); and

 

(d)          exercise on behalf of itself and the
Lenders all rights and remedies available to it and the Lenders under the Loan
Documents or applicable law;

 

provided, however, that upon the occurrence of an
actual or deemed entry of an order for relief with respect to the Borrower
under the Bankruptcy Code of the United States, the obligation of each Lender
to make Loans and any obligation of the L/C Issuer to make L/C Credit Extensions
shall automatically terminate, the unpaid principal amount of all outstanding
Loans and all interest and other amounts as aforesaid shall automatically
become due and payable, and the obligation of the Borrower to Cash
Collateralize the L/C Obligations as aforesaid shall automatically become
effective, in each case without further act of the Administrative Agent or any
Lender.

 

8.03.     Application of Funds.  After the exercise of remedies provided for
in Section 8.02 (or after the Loans have automatically become
immediately due and payable and the L/C Obligations have automatically been
required to be Cash Collateralized as set forth in the proviso to Section 8.02),
any amounts received on account of the Obligations shall be applied by the
Administrative Agent in the following order:

 

First, to payment of that portion of the
Obligations constituting fees, indemnities, expenses and other amounts
(including Attorney Costs and amounts payable under Article III)
payable to the Administrative Agent in its capacity as such;

 

Second, to payment of that portion of the
Obligations constituting fees, indemnities and other amounts (other than
principal and interest) payable to the Lenders and the L/C Issuers (including
Attorney Costs and amounts payable under Article III), ratably
among them in proportion to the amounts described in this clause Second
payable to them;

 

Third, to payment of that portion of the
Obligations constituting accrued and unpaid Letter of Credit fees pursuant to Section 2.03(i) and
interest on the Loans, the L/C Borrowings and other Obligations, ratably among
the Lenders in proportion to the respective amounts described in this clause Third
payable to them;

 

Fourth, to payment of that portion of the
Obligations constituting unpaid principal of the Loans and L/C Borrowings,
ratably among the Lenders and the L/C Issuers in proportion to the respective
amounts described in this clause Fourth held by them;

 

- 53 -

 

Fifth, to the Administrative Agent for the
account of the L/C Issuer, to Cash Collateralize that portion of L/C
Obligations comprised of the aggregate undrawn amount of Letters of Credit to
the extent not cash collateralized by the Borrower pursuant to Section 2.16(c);
and

 

Last, the balance, if any, after all of the
Obligations have been indefeasibly paid in full, to the Borrower or as
otherwise required by Law.

 

Subject
to Section 2.03(c), amounts used to Cash Collateralize the
aggregate undrawn amount of Letters of Credit pursuant to clause Fifth above
shall be applied to satisfy drawings under such Letters of Credit as they
occur.  If any amount remains on deposit
as Cash Collateral after all Letters of Credit have either been fully drawn or
expired, such remaining amount shall be applied to the other Obligations, if
any, in the order set forth above.

 

Article IX. 

ADMINISTRATIVE AGENT

 

9.01.     Appointment and Authorization of
Administrative Agent.

 

Each
of the Lenders and the L/C Issuer hereby irrevocably appoints PNC Bank to act
on its behalf as the Administrative Agent hereunder and under the other Loan
Documents 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 or thereof, together with such actions and powers as are
reasonably incidental thereto.  The
provisions of this Article are solely for the benefit of the
Administrative Agent, the Lenders and the L/C Issuer, and the Borrower shall
not have rights as a third party beneficiary of any of such provisions.

 

9.02.     Rights as a Lender.  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 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 Borrower 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.

 

9.03.     Exculpatory Provisions.  The Administrative Agent shall not have any
duties or obligations except those expressly set forth herein and in the other
Loan Documents.  Without limiting the
generality of the foregoing, the Administrative Agent:

 

(a)          shall not be subject to any fiduciary or
other implied duties, regardless of whether a Default has occurred and is
continuing;

 

(b)          shall not have any duty to take any discretionary
action or exercise any discretionary powers, except discretionary rights and
powers expressly contemplated hereby or by the other Loan Documents 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 herein or in the other Loan Documents), 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 any Loan Document or applicable law; and

 

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(c)                               shall not, except as expressly set forth
herein and in the other Loan Documents, have any duty to disclose, and shall
not be liable for the failure to disclose, any information relating to the
Borrower or any of its 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 Sections 10.01 and 8.02) 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.

 

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 any other Loan Document, (ii) the
contents of any certificate, report or other document delivered hereunder or
thereunder or in connection herewith or therewith, (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, any
other Loan Document 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.

 

9.04.                Reliance by
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 hereunder to the making of
a Loan, or the issuance of a Letter of Credit, that by its terms must be
fulfilled to the satisfaction of a Lender or the L/C Issuer, the Administrative
Agent may presume that such condition is satisfactory to such Lender or the L/C
Issuer unless the Administrative Agent shall have received notice to the
contrary from such Lender or the L/C Issuer prior to the making of such Loan or
the issuance of such Letter of Credit. 
The Administrative Agent shall be entitled to rely on legal counsel (who
may be counsel for the Borrower), independent accountants and other experts
selected by it.

 

9.05.                Indemnification of
Administrative Agent.  Whether or
not the transactions contemplated hereby are consummated, the Lenders shall indemnify
upon demand each Agent-Related Person (to the extent not reimbursed by or on
behalf of the Borrower and without limiting the obligation of the Borrower to
do so), pro rata, and hold harmless each Agent-Related Person from and against
any and all Indemnified Liabilities incurred by it, provided that such
unreimbursed Indemnified Liabilities were incurred by or asserted against the
Administrative Agent or an L/C Issuer in each case in its capacity as such or
against any Agent-Related Persons acting for the Administrative Agent or an L/C
Issuer in connection with such capacity; provided, however, that no Lender
shall be liable for the payment to any Agent-Related Person of any portion of
such Indemnified Liabilities to the extent determined in a final, nonappealable
judgment by a court of competent jurisdiction to have resulted from such
Agent-Related Person’s own gross negligence or willful misconduct; and
provided, further, that no action taken in accordance with the directions of
the Required Lenders shall be deemed to constitute gross negligence or 

 

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willful misconduct for
purposes of this Section.  Without
limitation of the foregoing, each Lender shall reimburse the Administrative
Agent upon demand for its ratable share of any costs or out-of-pocket expenses
(including Attorney Costs) incurred by the Administrative Agent in connection
with the preparation, execution, delivery, administration, modification,
amendment or enforcement (whether through negotiations, legal proceedings or
otherwise) of, or legal advice in respect of rights or responsibilities under,
this Agreement, any other Loan Document, or any document contemplated by or
referred to herein, to the extent that the Administrative Agent is not
reimbursed for such expenses by or on behalf of the Borrower.  The obligations of the Lenders in this Section are
subject to the provisions of Section 2.12(e) and shall survive
termination of the Aggregate Commitments, the payment of all other Obligations
and the resignation of the Administrative Agent.

 

9.06.                Delegation of Duties.  The Administrative Agent may perform any and
all of its duties and exercise its rights and powers hereunder or under any
other Loan Document 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.

 

9.07.                Resignation of
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 (so long as no Event of
Default exists), to appoint a successor, which shall be a bank with an office
in the United States, or an Affiliate of any such bank with an office in the
United States.  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 and the L/C Issuer, 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 and the L/C
Issuer directly, until such time as the Required Lenders appoint a successor
Administrative Agent as provided for above in this Section.  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 or
under the other Loan Documents (if not already discharged therefrom as provided
above in this Section).  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 10.04
shall continue in effect for the benefit of such retiring Administrative Agent,
its sub agents and their respective Related Parties 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.

 

Any
resignation by PNC Bank as Administrative Agent pursuant to this Section shall
also constitute its resignation as L/C Issuer and Swing Line Lender.  Upon the acceptance of a successor’s
appointment as Administrative Agent hereunder, (a) such successor shall
succeed to and become vested with all of the rights, powers, privileges and
duties of the retiring L/C Issuer and Swing Line Lender, (b)

 

- 56 -

 

the retiring L/C Issuer
and Swing Line Lender shall be discharged from all of their respective duties
and obligations hereunder or under the other Loan Documents, and (c) the
successor L/C Issuer shall issue letters of credit in substitution for the
Letters of Credit, if any, outstanding at the time of such succession or make
other arrangements satisfactory to the retiring L/C Issuer to effectively
assume the obligations of the retiring L/C Issuer with respect to such Letters
of Credit.

 

9.08.                Non-Reliance on
Administrative Agent and Other Lenders.  Each Lender and the L/C Issuer acknowledges
that it has, independently and without reliance upon the Administrative Agent
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 and the L/C Issuer also acknowledges that it will, independently
and without reliance upon the Administrative Agent 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, any other Loan
Document or any related agreement or any document furnished hereunder or
thereunder.

 

9.09.                No Other Duties, Etc.  Anything herein to the contrary
notwithstanding, none of the Arrangers, Documentation Agent or Co-Syndication
Agents listed on the cover page hereof shall have any powers, duties or
responsibilities under this Agreement or any of the other Loan Documents,
except in its capacity, as applicable, as the Administrative Agent, a Lender or
an L/C Issuer hereunder.

 

9.10.                Administrative Agent May File
Proofs of Claim.  In case of
the pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition or other judicial
proceeding relative to the Borrower, the Administrative Agent (irrespective of
whether the principal of any Loan or L/C Obligation shall then be due and
payable as herein expressed or by declaration or otherwise and irrespective of
whether the Administrative Agent shall have made any demand on the Borrower) shall
be entitled and empowered, by intervention in such proceeding or otherwise

 

(a)                               to file and prove a claim for the whole
amount of the principal and interest owing and unpaid in respect of the Loans,
L/C Obligations and all other Obligations that are owing and unpaid and to file
such other documents as may be necessary or advisable in order to have the
claims of the Lenders, the L/C Issuer and the Administrative Agent (including
any claim for the reasonable compensation, expenses, disbursements and advances
of the Lenders, the L/C Issuer and the Administrative Agent and their
respective agents and counsel and all other amounts due the Lenders, the L/C
Issuer and the Administrative Agent under Sections 2.03(i) and (j),
2.09, 10.04 and 10.05) allowed in such judicial
proceeding; and

 

(b)                              to collect and receive any monies or
other property payable or deliverable on any such claims and to distribute the
same;

 

and
any custodian, receiver, assignee, trustee, liquidator, sequestrator or other
similar official in any such judicial proceeding is hereby authorized by each
Lender and the L/C Issuer to make such payments to the Administrative Agent
and, in the event that the Administrative Agent shall consent to the making of
such payments directly to the Lenders and the L/C Issuer, to pay to the
Administrative Agent any amount due for the reasonable compensation, expenses,
disbursements and advances of the Administrative Agent and its agents and
counsel, and any other amounts due the Administrative Agent under Sections 2.09,
10.04 and 10.05.

 

Nothing
contained herein shall be deemed to authorize the Administrative Agent to
authorize or consent to or accept or adopt on behalf of any Lender or the L/C
Issuer any plan of reorganization, 

 

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arrangement, adjustment
or composition affecting the Obligations or the rights of any Lender or to
authorize the Administrative Agent to vote in respect of the claim of any
Lender in any such proceeding.

 

Article X. 

MISCELLANEOUS

 

10.01.        Amendments, Etc.  No amendment or waiver of any provision of
this Agreement or any other Loan Document, and no consent to any departure by
the Borrower therefrom, shall be effective unless in writing signed by the
Required Lenders and the Borrower, and acknowledged by the Administrative
Agent, and each such waiver or consent shall be effective only in the specific
instance and for the specific purpose for which given; provided, however,
that no such amendment, waiver or consent shall:

 

(a)                               extend or increase the Commitment of any
Lender (or reinstate any Commitment terminated pursuant to Section 8.02)
without the written consent of such Lender;

 

(b)                               postpone any date fixed by this Agreement
or any other Loan Document for any payment of principal, interest, fees or
other amounts due to the Lenders (or any of them) hereunder or under any other
Loan Document without the written consent of each Lender directly affected
thereby;

 

(c)                               reduce the principal of, or the rate of
interest specified herein on, any Loan or L/C Borrowing, or (subject to clause (v) of
the second proviso to this Section 10.01) any fees or other amounts
payable hereunder or under any other Loan Document without the written consent
of each Lender directly affected thereby; provided, however, that
only the consent of the Required Lenders shall be necessary to amend the
definition of “Default Rate” or to waive any obligation of the Borrower to pay
interest at the Default Rate;

 

(d)                             change Section 2.13 or Section 8.03
in a manner that would alter the pro rata sharing of payments required thereby
without the written consent of each Lender; or

 

(e)                               change any provision of this Section or
the definition of “Required Lenders” or any other provision hereof specifying
the number or percentage of Lenders required to amend, waive or otherwise
modify any rights hereunder or make any determination or grant any consent
hereunder, without the written consent of each Lender;

 

and,
provided  further, that (i) no amendment, waiver or consent
shall, unless in writing and signed by the L/C Issuer in addition to the
Lenders required above, affect the rights or duties of the L/C Issuer under
this Agreement or any Letter of Credit Application relating to any Letter of
Credit issued or to be issued by it; (ii) no amendment, waiver or consent
shall, unless in writing and signed by the Swing Line Lender in addition to the
Lenders required above, affect the rights or duties of the Swing Line Lender
under this Agreement; (iii) no amendment, waiver or consent shall, unless
in writing and signed by the Administrative Agent in addition to the Lenders
required above, affect the rights or duties of the Administrative Agent under
this Agreement or any other Loan Document; (iv) Section 10.07(h) may
not be amended, waived or otherwise modified without the consent of each
Granting Lender all or any part of whose Loans are being funded by an SPC at
the time of such amendment, waiver or other modification; and (v) the Fee
Letters may be amended, or rights or privileges thereunder waived, in a writing
executed only by the parties thereto.

 

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10.02.           Notices; Effectiveness;
Electronic Communication.

 

(a)                               Notices Generally. 
Except in the case of notices and other communications expressly permitted
to be given by telephone (and except as provided in subsection (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 telecopier as follows, and all notices
and other communications expressly permitted hereunder to be given by telephone
shall be made to the applicable telephone number, as follows:

 

(i)                                   if to the Borrower, the Administrative
Agent, the L/C Issuer or the Swing Line Lender, to the address, telecopier
number, electronic mail address or telephone number specified for such Person
on Schedule 10.02; and

 

(ii)                                if to any other Lender, to the address,
telecopier number, electronic mail address or telephone number specified in its
Administrative Questionnaire.

 

Notices
sent by hand or overnight courier service, or mailed by certified or registered
mail, shall be deemed to have been given when received; notices sent by
telecopier shall be deemed to have been given when sent (except that, if not
given during normal business hours for the recipient, shall be deemed to have
been given at the opening of business on the next business day for the
recipient).  Notices delivered through
electronic communications to the extent provided in subsection (b) below,
shall be effective as provided in such subsection (b).

 

(b)                               Electronic Communications. 
Notices and other communications to the Lenders and the L/C Issuer
hereunder may be delivered or furnished by electronic communication (including
e-mail and Internet or intranet websites) pursuant to procedures approved by
the Administrative Agent, provided that the foregoing shall not apply to
notices to any Lender or the L/C Issuer pursuant to Article II if
such Lender or the L/C Issuer, as applicable, has notified the Administrative
Agent that it is incapable of receiving notices under such Article by
electronic communication.  The
Administrative Agent or the Borrower may, in its discretion, agree to accept
notices and other communications to it hereunder by electronic communications
pursuant to procedures approved by it, provided that approval of such
procedures may be limited to particular notices or communications.

 

Unless
the Administrative Agent otherwise prescribes, (i) notices and other
communications sent to an e-mail address shall be deemed received upon the
sender’s receipt of an acknowledgement from the intended recipient (such as by
the “return receipt requested” function, as available, return e-mail or other written
acknowledgement), provided that if such notice or other communication is
not sent during the normal business hours of the recipient, such notice or
communication shall be deemed to have been sent at the opening of business on
the next business day for the recipient, and (ii) notices or
communications posted to an Internet or intranet website shall be deemed
received upon the deemed receipt by the intended recipient at its e-mail
address as described in the foregoing clause (i) of notification that
such notice or communication is available and identifying the website address
therefor.

 

(c)                               The Platform. 
THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE.”  THE AGENT PARTIES (AS DEFINED BELOW) DO NOT
WARRANT THE ACCURACY OR COMPLETENESS OF THE BORROWER MATERIALS OR THE ADEQUACY
OF THE PLATFORM, AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS IN OR OMISSIONS
FROM THE BORROWER MATERIALS.  NO WARRANTY
OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING 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 

 

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CONNECTION WITH
THE BORROWER MATERIALS OR THE PLATFORM. 
In no event shall the Administrative Agent or any of its Related Parties
(collectively, the “Agent Parties”) have any liability to the Borrower,
any Lender, the L/C Issuer or any other Person for losses, claims, damages,
liabilities or expenses of any kind (whether in tort, contract or otherwise)
arising out of the Borrower’s or the Administrative Agent’s transmission of
Borrower Materials through the Internet, except to the extent that such losses,
claims, damages, liabilities or expenses are determined by a court of competent
jurisdiction by a final and nonappealable judgment to have resulted from the
gross negligence or willful misconduct of such Agent Party; provided, however,
that in no event shall any Agent Party have any liability to the Borrower, any
Lender, the L/C Issuer or any other Person for indirect, special, incidental,
consequential or punitive damages (as opposed to direct or actual damages).

 

(d)                               Change of Address, Etc. 
Each of the Borrower, the Administrative Agent, the L/C Issuer and the
Swing Line Lender may change its address, telecopier or telephone number for
notices and other communications hereunder by notice to the other parties
hereto.  Each other Lender may change its
address, telecopier or telephone number for notices and other communications
hereunder by notice to the Borrower, the Administrative Agent, the L/C Issuer
and the Swing Line Lender.  In addition,
each Lender agrees to notify the Administrative Agent from time to time to
ensure that the Administrative Agent has on record (i) an effective
address, contact name, telephone number, telecopier number and electronic mail
address to which notices and other communications may be sent and (ii) accurate
wire instructions for such Lender.

 

(e)                               Reliance by Administrative Agent, L/C
Issuer and Lenders.  The Administrative
Agent, the L/C Issuer and the Lenders shall be entitled to rely and act upon
any notices (including telephonic Swing Line Loan Notices) purportedly given by
or on behalf of the Borrower even if (i) such notices were not made in a
manner specified herein, were incomplete or were not preceded or followed by
any other form of notice specified herein, or (ii) the terms thereof, as
understood by the recipient, varied from any confirmation thereof.  The Borrower shall indemnify the Administrative
Agent, the L/C Issuer, each Lender and the Related Parties of each of them from
all losses, costs, expenses and liabilities resulting from the reliance by such
Person on each notice purportedly given by or on behalf of the Borrower.  All telephonic notices to and other
telephonic communications with the Administrative Agent may be recorded by the
Administrative Agent, and each of the parties hereto hereby consents to such
recording.

 

10.03.           No Waiver; Cumulative Remedies.  No failure by any Lender or the
Administrative Agent to exercise, and no delay by any such Person in
exercising, any right, remedy, power or privilege hereunder shall operate as a
waiver thereof; nor shall any single or partial exercise of any right, remedy,
power or privilege hereunder preclude any other or further exercise thereof or
the exercise of any other right, remedy, power or privilege.  The rights, remedies, powers and privileges
herein provided are cumulative and not exclusive of any rights, remedies,
powers and privileges provided by law.

 

10.04.           Attorney Costs, Expenses
and Taxes.  The
Borrower agrees (a) to pay or reimburse the Administrative Agent for all
costs and expenses incurred in connection with the development, preparation,
negotiation and execution of this Agreement and the other Loan Documents and
any amendment, waiver, consent or other modification of the provisions hereof
and thereof (whether or not the transactions contemplated hereby or thereby are
consummated), and the consummation and administration of the transactions
contemplated hereby and thereby, including all Attorney Costs, and (b) to
pay or reimburse the Administrative Agent and each Lender for all costs and
expenses incurred in connection with the enforcement, attempted enforcement, or
preservation of any rights or remedies under this Agreement or the other Loan
Documents (including all such costs and expenses incurred during any “workout”
or restructuring in respect of the Obligations and during any legal proceeding,
including any proceeding under any Debtor Relief Law), including all Attorney
Costs.  The foregoing costs and expenses
shall include all search, filing, recording, title insurance and appraisal
charges and fees and taxes 

 

- 60 -

 

related thereto, and other
out-of-pocket expenses incurred by the Administrative Agent and the cost of
independent public accountants and other outside experts retained by the
Administrative Agent or any Lender.  All
amounts due under this Section 10.04 shall be payable within ten
Business Days after demand therefore. 
The agreements in this Section shall survive the termination of the
Aggregate Commitments and repayment of all other Obligations.

 

10.05.                  Indemnification; Damage
Waiver.

 

(a)                               Indemnification by the
Borrower.  Whether or not the transactions
contemplated hereby are consummated, the Borrower shall indemnify and hold
harmless each Agent-Related Person, each Lender and their respective
Affiliates, directors, officers, employees, counsel, agents and attorneys-in-fact
(collectively the “Indemnitees”) from and against any and all
liabilities, obligations, losses, damages, penalties, claims, demands, actions,
judgments, suits, costs, expenses and disbursements (including Attorney Costs)
of any kind or nature whatsoever which may at any time be imposed on, incurred
by or asserted against any such Indemnitee in any way relating to or arising
out of or in connection with (a) the execution, delivery, enforcement,
performance or administration of any Loan Document or any other agreement,
letter or instrument delivered in connection with the transactions contemplated
thereby or the consummation of the transactions contemplated thereby, (b) any
Commitment, Loan or Letter of Credit or the use or proposed use of the proceeds
therefrom (including any refusal by the L/C Issuer to honor a demand for
payment under a Letter of Credit if the documents presented in connection with
such demand do not strictly comply with the terms of such Letter of Credit), (c) any
actual or alleged presence or release of Hazardous Substances on or from any
property currently or formerly owned or operated by the Borrower or any
Subsidiary of the Borrower, or any Environmental Liability related in any way
to the Borrower or any Subsidiary of the Borrower, or (d) any actual or
prospective claim, litigation, investigation or proceeding relating to any of
the foregoing, whether based on contract, tort or any other theory (including
any investigation of, preparation for, or defense of any pending or threatened
claim, investigation, litigation or proceeding) and regardless of whether any
Indemnitee is a party thereto (all the foregoing, collectively, the “Indemnified
Liabilities”), in all cases,
whether or not caused by or arising, in whole or in part, out of the negligence
of the Indemnitee; provided that such indemnity shall not, as to any
Indemnitee, be available to the extent that such liabilities, obligations,
losses, damages, penalties, claims, demands, actions, judgments, suits, costs,
expenses or disbursements are determined by a court of competent jurisdiction
by final and nonappealable judgment to have resulted from the gross negligence
or willful misconduct of such Indemnitee. 
No Indemnitee shall be liable for any damages arising from the use by
others of any information or other materials obtained through IntraLinks or
other similar information transmission systems in connection with this
Agreement.  All amounts due under this Section 10.05
shall be payable within ten Business Days after demand therefore.  The agreements in this Section shall
survive the resignation of the Administrative Agent, the replacement of any
Lender, the termination of the Aggregate Commitments and the repayment,
satisfaction or discharge of all the other Obligations.

 

(b)                               Waiver of Consequential Damages, Etc. 
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, any other Loan Document or any agreement or
instrument entered into or delivered pursuant hereto, the transactions
contemplated hereby or thereby, any Loan or Letter of Credit or the use of the
proceeds thereof.  No Indemnitee referred
to in subsection (a) above shall be liable for any damages arising
from the use by unintended recipients of any information or other materials
distributed to such unintended recipients by such Indemnitee through
telecommunications, electronic or other information transmission systems in
connection with this Agreement or the other Loan Documents or the transactions
contemplated hereby or thereby other than 

 

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for direct or
actual damages resulting from the gross negligence or willful misconduct of
such Indemnitee as determined by a final and nonappealable judgment of a court
of competent jurisdiction.

 

10.06.           Payments Set Aside.  To
the extent that any payment by or on behalf of the Borrower is made to the
Administrative Agent or any Lender, or the Administrative Agent or any Lender
exercises its right of set-off, and such payment or the proceeds of such set-off
or any part thereof is subsequently invalidated, declared to be fraudulent or
preferential, set aside or required (including pursuant to any settlement
entered into by the Administrative Agent or such Lender in its discretion) to
be repaid to a trustee, receiver or any other party, in connection with any
proceeding under any Debtor Relief Law or otherwise, then (a) to the
extent of such recovery, the obligation or part thereof originally intended to
be satisfied shall be revived and continued in full force and effect as if such
payment had not been made or such set-off had not occurred, and (b) each
Lender severally agrees to pay to the Administrative Agent upon demand its
applicable share of any amount so recovered from or repaid by the Administrative
Agent, plus interest thereon from the date of such demand to the date such
payment is made at a rate per annum equal to the Federal Funds Open Rate from
time to time in effect.

 

10.07.           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 the Borrower
may not assign or otherwise transfer any of its rights or obligations hereunder
without the prior written consent of each Lender and no Lender may assign or
otherwise transfer any of its rights or obligations hereunder except (i) to
an assignee in accordance with the provisions of subsection (b) of
this Section, (ii) by way of participation in accordance with the
provisions of subsection (d) of this Section, (iii) by way of
pledge or assignment of a security interest subject to the restrictions of subsection
(f) or (j) of this Section, or (iv) to an SPC in
accordance with the provisions of subsection (i) of this Section (and
any other attempted assignment or transfer by any party hereto shall be null
and void).  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 subsection (d) of this Section and,
to the extent expressly contemplated hereby, the Indemnitees) any legal or
equitable right, remedy or claim under or by reason of this Agreement.

 

(b)                               Any Lender may at any time assign to one
or more assignees all or a portion of its rights and obligations under this
Agreement (including all or a portion of its Commitment and the Loans
(including for purposes of this subsection (b), participations in L/C
Obligations and Swing Line Loans) at the time owing to it); provided
that any such assignment shall be subject to the following conditions:

 

(i)                                   Minimum Amounts.

 

(A)                          in the case of an assignment of the
entire remaining amount of the assigning Lender’s Commitment and the Loans at
the time owing to it or in the case of an assignment to a Lender, an Affiliate
of a Lender or an Approved Fund (as defined in subsection (h) of
this Section), no minimum amount need be assigned, and

 

(B)                           in any case not described in subsection
(b)(i)(A) of this Section, the aggregate amount of the Commitment
(which for this purpose includes Loans outstanding thereunder) or, if the
Commitment is not then in effect, the principal outstanding balance of the
Loans of the assigning Lender subject to each such assignment, determined as of
the date the Assignment and Assumption with respect to such assignment is
delivered to the Administrative Agent or, if “Trade Date” is specified in the
Assignment and Assumption, as of the Trade Date, shall not be less than
$5,000,000  unless each of the Administrative
Agent, each L/C Issuer, and, so long as no 

 

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Default or Event of Default has occurred and is
continuing, the Borrower otherwise consents (each such consent not to be
unreasonably withheld or delayed); provided, however, that concurrent
assignments to members of an Assignee Group and concurrent assignments from
members of an Assignee Group to a single assignee (or to an assignee and members
of its Assignee Group) will be treated as a single assignment for purposes of
determining whether such minimum amount has been met.

 

(ii)                                Proportionate Amounts. 
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 with respect to the Loans or the Commitment assigned, except
that this clause (ii) shall not apply to rights in respect of Swing Line
Loans.

 

(iii)                             Required Consents.  No consent
shall be required for any assignment except to the extent required by subsection
(b)(i)(B) of this Section and, in addition:

 

(A)                                the consent of the Borrower (such consent
not to be unreasonably withheld or delayed) shall be required unless (1) an
Event of Default has occurred and is continuing at the time of such assignment
or (2) such assignment is to a Lender, an Affiliate of a Lender or an
Approved Fund;

 

(B)                                 the consent of the Administrative Agent
(such consent not to be unreasonably withheld or delayed) shall be required if
such assignment is to a Person that is not a Lender, an Affiliate of such
Lender or an Approved Fund with respect to such Lender;

 

(C)                                 the consent of each L/C Issuer (such
consent not to be unreasonably withheld or delayed) shall be required for any
assignment that increases the obligation of the assignee to participate in
exposure under one or more Letters of Credit (whether or not then outstanding);
and

 

(D)                                the consent of the Swing Line Lender
(such consent not to be unreasonably withheld or delayed) shall be required for
any assignment.

 

(iv)                            Assignment and Assumption. 
The parties to each assignment shall execute and deliver to the
Administrative Agent an Assignment and Assumption, together with a processing
and recordation fee in the amount of $3,500; provided, however,
that the Administrative Agent may, in its sole discretion, elect to waive such
processing and recordation fee in the case of any assignment.  The assignee, if it is not a Lender, shall
deliver to the Administrative Agent an Administrative Questionnaire.

 

(v)                               No Assignment to Certain Persons. 
No such assignment shall be made (A) to the Borrower or any of the
Borrower’s Affiliates or Subsidiaries, or (B) to any Defaulting Lender or
any of its Subsidiaries, or any Person who, upon becoming a Lender hereunder,
would constitute any of the foregoing Persons described in this clause B,
or (C) to a natural person.

 

Subject
to acceptance and recording thereof by the Administrative Agent pursuant to subsection
(c) 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 3.01, 3.04, 3.05,
10.04 and 10.05 with respect to facts and circumstances occurring
prior to the effective date of 

 

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such
assignment).  Upon request, the Borrower
(at its expense) shall execute and deliver a Note to the assignee Lender.  Any assignment or transfer by a Lender of
rights or obligations under this Agreement that does not comply with this
subsection 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 subsection
(d) of this Section.

 

(c)                               The Administrative Agent, acting solely
for this purpose as an agent of the Borrower, shall maintain at the
Administrative Agent’s Office 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 Commitments of, and principal amounts of the Loans and
L/C Obligations 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.

 

(d)                               Any Lender may at any time, 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/or obligations under this Agreement
(including all or a portion of its Commitment and/or the Loans (including for
purposes of this subsection (b), participations in L/C Obligations and/or Swing
Line Loans) owing to it); provided that (i) such Lender’s
obligations under this Agreement shall remain unchanged, (ii) such Lender
shall remain solely responsible to the other parties hereto for the performance
of such obligations and (iii) the Borrower, the Administrative Agent and
the other Lenders shall continue to deal solely and directly with such Lender
in connection with such Lender’s rights and obligations under this
Agreement.  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, waiver or other modification described in
the first proviso to Section 10.01 that directly affects such
Participant.  Subject to subsection (e) of
this Section, the Borrower agrees that each Participant shall be entitled to
the benefits of Sections 3.01, 3.04 and 3.05  to the same extent as if it were a Lender and had acquired
its interest by assignment pursuant to subsection (b) of this
Section.  To the extent permitted by law,
each Participant also shall be entitled to the benefits of Section 10.09  as though it were a Lender, provided such
Participant agrees to be subject to Section 2.13 as though it were
a Lender.

 

(e)                               A Participant shall not be entitled to
receive any greater payment under Section 3.01 or 3.04  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 3.01 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 10.15 as though it
were a Lender.

 

(f)                                 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 any pledge or assignment to secure obligations to a Federal
Reserve Bank; provided that no such pledge or assignment shall release
such Lender from any of its obligations hereunder or substitute any such
pledgee or assignee for such Lender as a party hereto.

 

(g)                               Electronic Execution of Assignments. 
The words “execution,” “signed,” “signature,” and words of like import
in any Assignment and Assumption shall be deemed to include electronic
signatures

 

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or the keeping of
records in electronic form, each of which shall be of the same legal effect,
validity or enforceability as a manually executed signature or the use of a
paper-based recordkeeping system, as the case may be, to the extent and as
provided for in any applicable law, including the Federal Electronic Signatures
in Global and National Commerce Act, the New York State Electronic Signatures
and Records Act, or any other similar state laws based on the Uniform
Electronic Transactions Act.

 

(h)                               As used herein, the following terms have
the following meanings:

 

“Eligible Assignee” means any Person that meets
the requirements to be an assignee under Section 10.07(b)(iii) and
(b)(v) (subject to such consents, if any, as may be required under
Section 10.07(b)(iii).

 

“Fund” means any Person (other than a natural
person) that is (or will be) engaged in making, purchasing, holding or
otherwise investing in commercial loans and similar extensions of credit in the
ordinary course of its business.

 

“Approved Fund” means any Fund 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.

 

(i)                                   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 Committed 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 Committed Loan, and (ii) if an SPC elects not to exercise such option
or otherwise fails to make all or any part of such Committed Loan, the Granting
Lender shall be obligated to make such Committed 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 3.04), (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 Committed Loan by an SPC
hereunder shall utilize the Commitment of the Granting Lender to the same
extent, and as if, such Committed 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 payment of
a processing fee of $3,500 (which processing fee may be waived by the
Administrative Agent in its sole discretion), assign all or any portion of its
right to receive payment with respect to any Committed Loan to the Granting
Lender and (ii) disclose on a confidential basis any non-public
information relating to its funding of Committed Loans to any rating agency,
commercial paper dealer or provider of any surety or Guarantee or credit or
liquidity enhancement to such SPC.

 

(j)                                   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 

 

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obligations or securities, provided that unless and until such
trustee actually becomes a Lender in compliance with the other provisions of
this Section 10.07, (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.

 

(k)                               Notwithstanding
anything to the contrary contained herein, if at any time PNC Bank assigns all
of its Commitment and Loans pursuant to subsection (b) above,
PNC Bank may, (i) upon 30 days’ notice to the Borrower and the Lenders,
resign as L/C Issuer and/or (ii) upon 30 days’ notice to the
Company, resign as Swing Line Lender.  In the event of any such resignation as L/C
Issuer or Swing Line Lender, the Borrower shall be entitled to appoint from
among the Lenders (only if such Lender accepts such appointment) a successor
L/C Issuer or Swing Line Lender hereunder; provided, however, that no failure
by the Borrower to appoint any such successor shall affect the resignation of
PNC Bank as L/C Issuer or Swing Line Lender, as the case may be.  If PNC Bank resigns as L/C Issuer, it shall
retain all the rights and obligations of the L/C Issuer hereunder with respect
to all Letters of Credit outstanding as of the effective date of its
resignation as L/C Issuer and all L/C Obligations with respect thereto
(including the right to require the Lenders to make Base Rate Loans or fund
risk participations in Unreimbursed Amounts pursuant to Section 2.03(c)).
If PNC Bank resigns as Swing Line Lender, it shall retain all the rights of the
Swing Line Lender provided for hereunder with respect to Swing Line Loans made
by it and outstanding as of the effective date of such resignation, including
the right to require the Lenders to make Base Rate Committed Loans or fund risk
participations in outstanding Swing Line Loans pursuant to Section 2.04(c).  Upon the appointment of a successor L/C
Issuer and/or Swing Line Lender, (a) such successor shall succeed to and
become vested with all of the rights, powers, privileges and duties of the
retiring L/C Issuer or Swing Line Lender, as the case may be, and (b) the
successor L/C Issuer shall issue letters of credit in substitution for the
Letters of Credit, if any, outstanding at the time of such succession or make
other arrangements satisfactory to PNC Bank to effectively assume the
obligations of PNC Bank with respect to such Letters of Credit.

 

10.08.           Confidentiality.  Each
of the Administrative Agent and the Lenders agrees to maintain the
confidentiality of the Information (as defined below), except that Information
may be disclosed (a) to its and its Affiliates’ directors, officers,
employees and agents, including accountants, legal counsel and other advisors
(it being understood that the Persons to whom such disclosure is made will be
informed of the confidential nature of such Information and instructed to keep
such Information confidential); (b) to the extent requested by any
regulatory authority; (c) to the extent required by applicable laws or
regulations or by any subpoena or similar legal process; (d) to any other
party to this Agreement; (e) in connection with the exercise of any
remedies hereunder or any suit, action or proceeding relating to this Agreement
or the enforcement of rights hereunder; (f) subject to an agreement
containing provisions substantially the same as those of this Section, to (i) any
Eligible Assignee of or Participant in, or any prospective Eligible Assignee of
or Participant in, any of its rights or obligations under this Agreement or (ii) any
direct or indirect contractual counterparty or prospective counterparty (or
such contractual counterparty’s or prospective counterparty’s professional
advisor) to any credit derivative transaction relating to obligations of the
Borrower; (g) with the consent of the Borrower; (h) to the extent
such Information (i) becomes publicly available other than as a result of
a breach of this Section or (ii) becomes available to the
Administrative Agent or any Lender on a nonconfidential basis from a source
other than the Borrower; or (i) to the National Association of Insurance
Commissioners or any other similar organization.  In addition, the Administrative Agent and the
Lenders may disclose the existence of this Agreement and information about this
Agreement to market data collectors, similar service providers to the lending
industry, and service providers to the Administrative Agent and the Lenders in
connection with the administration and management of this Agreement, the other
Loan Documents, the Commitments, and the Credit Extensions.  For purposes of this Section, “Information”
means all information received from the Borrower or any Subsidiary relating to
the Borrower or any 

 

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Subsidiary or any of their
respective businesses, other than any such information that is available to the
Administrative Agent, any Lender or the L/C Issuer on a nonconfidential basis
prior to disclosure by the Borrower or any Subsidiary.  Any Person required to maintain the
confidentiality of Information as provided in this Section shall be
considered to have complied with its obligation to do so if such Person has
exercised the same degree of care to maintain the confidentiality of such
Information as such Person would accord to its own confidential information.

 

Each
of the Administrative Agent, the Lenders and the L/C Issuer acknowledges that (a) the
Information may include material non-public information concerning the Borrower
or a Subsidiary, as the case may be, (b) it has developed compliance
procedures regarding the use of material non-public information and (c) it
will handle such material non-public information in accordance with applicable
Law, including Federal and state securities Laws.

 

10.09.           Set-off.  In addition to any rights and remedies of the
Lenders provided by law, upon the occurrence and during the continuance of any
Event of Default, each Lender is authorized at any time and from time to time,
without prior notice to the Borrower, any such notice being waived by the
Borrower to the fullest extent permitted by law, to set off and apply any and
all deposits (general or special, time or demand, provisional or final) at any
time held by, and other indebtedness at any time owing by, such Lender to or
for the credit or the account of the Borrower against any and all Obligations
owing to such Lender hereunder or under any other Loan Document, now or
hereafter existing, irrespective of whether or not the Administrative Agent or
such Lender shall have made demand under this Agreement or any other Loan
Document and although such Obligations may be contingent or unmatured or
denominated in a currency different from that of the applicable deposit or
indebtedness.  Each Lender agrees
promptly to notify the Borrower and the Administrative Agent after any such
set-off and application made by such Lender; provided, however, that the
failure to give such notice shall not affect the validity of such set-off and
application.

 

10.10.           Interest Rate Limitation.  Notwithstanding anything to the contrary
contained in any Loan Document, the interest paid or agreed to be paid under
the Loan Documents shall not exceed the maximum rate of non-usurious interest
permitted by applicable Law (the “Maximum Rate”).  If the Administrative Agent or any Lender
shall receive interest in an amount that exceeds the Maximum Rate, the excess
interest shall be applied to the principal of the Loans or, if it exceeds such
unpaid principal, refunded to the Borrower. 
In determining whether the interest contracted for, charged, or received
by the Administrative Agent or a Lender exceeds the Maximum Rate, such Person
may, to the extent permitted by applicable Law, (a) characterize any
payment that is not principal as an expense, fee, or premium rather than
interest, (b) exclude voluntary prepayments and the effects thereof, and (c) amortize,
prorate, allocate, and spread in equal or unequal parts the total amount of
interest throughout the contemplated term of the Obligations hereunder.

 

10.11.           Counterparts.  This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

 

10.12.           Integration.  This Agreement, together with the other Loan
Documents, comprises the complete and integrated agreement of the parties on
the subject matter hereof and thereof and supersedes all prior agreements,
written or oral, on such subject matter. 
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 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.

 

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10.13.           Survival of
Representations and Warranties.  All representations and warranties made
hereunder and in any other Loan Document or other document delivered pursuant
hereto or thereto or in connection herewith or therewith shall survive the
execution and delivery hereof and thereof. 
Such representations and warranties have been or will be relied upon by
the Administrative Agent and each Lender, regardless of any investigation made
by the Administrative Agent or any Lender or on their behalf and
notwithstanding that the Administrative Agent or any Lender may have had notice
or knowledge of any Default at the time of any Credit Extension, and shall
continue in full force and effect as long as any Loan or any other Obligation
hereunder shall remain unpaid or unsatisfied or any Letter of Credit shall
remain outstanding.

 

10.14.           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.

 

10.15.           Tax Forms.

 

(a)                               Each Lender that is not a “United States
person” within the meaning of Section 7701(a)(30) of the Code (a “Foreign
Lender”) that is entitled to an exemption from or reduction of withholding
tax under the Laws of the jurisdiction in which the Borrower is resident for
tax purposes, or any treaty to which such jurisdiction is a party, with respect
to payments hereunder or under any other Loan Document shall deliver to the
Borrower (with a copy to the Administrative Agent), at the time or times
prescribed by applicable Laws or reasonably requested by the Borrower or the
Administrative Agent, such properly completed and executed documentation
prescribed by applicable Laws as will permit such payments to be made without
withholding or at a reduced rate of withholding.  Notwithstanding the submission of such
documentation claiming a reduced rate of or exemption from U.S. withholding
tax, the Administrative Agent shall be entitled to withhold United States
federal income taxes at the full 30% withholding rate if in its reasonable
judgment it is required to do so under the due diligence requirements imposed
upon a withholding agent under § 1.1441-7(b) of the United States Income
Tax Regulations; provided that the Administrative Agent will provide to
the applicable Lender any withholding copies of the US tax forms it files in
accordance with regulations under § 1441 of the Code evidencing both the amount
of income subject to withholding and the amount of tax withheld and deposited,
promptly after the filing of such tax forms. 
Further, the Administrative Agent is indemnified by the applicable
Lender under § 1.1461-1(e) of the United States Income Tax Regulations
against any claims and demands of any Lender or assignee or participant of a
Lender for the amount of any tax it deducts and withholds in accordance with
regulations under § 1441 of the Code.  In
addition, any Lender, if requested by the Borrower or the Administrative Agent,
shall deliver such other documentation prescribed by applicable Laws or
reasonably requested by the Borrower or the Administrative Agent as will enable
the Borrower or the Administrative Agent to determine whether or not such
Lender is subject to backup withholding or information reporting requirements.

 

(b)                               Without limiting the generality of the
foregoing, in the event that the Borrower is resident for tax purposes in the
United States of America, any Foreign Lender shall deliver to the Borrower and
the Administrative Agent (in such number of copies as shall be requested by the
recipient) on or prior to the date on which such Foreign Lender becomes a
Lender under this Agreement (and from time to time thereafter upon the request
of the Borrower or the Administrative Agent, but only if such Foreign Lender is
legally entitled to do so), whichever of the following is applicable:

 

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(i)                                   two (2) duly completed valid
originals of IRS Form W-8BEN claiming eligibility for benefits of an
income tax treaty to which the United States of America is a party,

 

(ii)                                two (2) duly completed valid
originals of IRS Form W-8ECI,

 

(iii)                             in the case of a Foreign Lender claiming the benefits
of the exemption for portfolio interest under section 881(c) of the Code, (x) a
certificate to the effect that such Foreign Lender is not (A) a “bank”
within the meaning of section 881(c)(3)(A) of the Code, (B) a “10
percent shareholder” of the Borrower within the meaning of section 881(c)(3)(B) of
the Code, or (C) a “controlled foreign corporation” described in section
881(c)(3)(C) of the Code and (y) two duly completed valid originals
of IRS Form W-8BEN, or

 

(iv)                            any other form prescribed by applicable
Laws as a basis for claiming exemption from or a reduction in United States
Federal withholding tax duly completed together with such supplementary
documentation as may be prescribed by applicable Laws to permit the Borrower to
determine the withholding or deduction required to be made.

 

(c)                               Any Lender that is a U.S. Person shall
submit to the Administrative Agent two (2) originals of an IRS Form W-9
or any other form prescribed by applicable Laws demonstrating that such Lender
is not a Foreign Lender.

 

(d)                               If a payment made to a Lender under any
Loan Document would be subject to U.S. Federal withholding Tax imposed by FATCA
if such Lender fails to comply with the applicable reporting requirements of
FATCA (including those contained in Section 1471(b) or 1472(b) of
the Code, as applicable), such Lender shall deliver to the Borrower and the
Administrative Agent (A) a certification signed by the chief financial
officer, principal accounting officer, treasurer or controller, and (B) other
documentation reasonably requested by the Borrower and the Administrative Agent
sufficient for the Administrative Agent and the Borrower to comply with their
obligations under FATCA and to determine that such Lender has complied with
such applicable reporting requirements.

 

10.16.           Replacement of Lenders.

 

If any
Lender requests compensation under Section 3.04, 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 3.01,
if any Lender is a Defaulting Lender, or if any other circumstance exists
hereunder that gives the Borrower the right to replace a Lender as a party
hereto, 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 in, and consents required by, Section 10.07), all of its
interests, rights and obligations under this Agreement and the related Loan
Documents to an assignee that shall assume such obligations (which assignee may
be another Lender, if a Lender accepts such assignment), provided that:

 

(a)                               the Borrower shall have paid to the
Administrative Agent the assignment fee specified in Section 10.07(b);

 

(b)                               such Lender shall have received payment
of an amount equal to the outstanding principal of its Loans and L/C Advances,
accrued interest thereon, accrued fees and all other amounts payable to it
hereunder and under the other Loan Documents (including any amounts under Section 3.05)
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);

 

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(c)                              in the case of any such assignment
resulting from a claim for compensation under Section 3.04 or
payments required to be made pursuant to Section 3.01, such
assignment will result in a reduction in such compensation or payments
thereafter; and

 

(d)                               such assignment does not conflict with
applicable Laws.

 

A
Lender shall not be required to make any such assignment or 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.

 

10.17.           Governing Law.

 

(a)                               THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK;  PROVIDED THAT THE ADMINISTRATIVE AGENT AND EACH
LENDER SHALL RETAIN ALL RIGHTS ARISING UNDER FEDERAL LAW.

 

(b)                               ANY LEGAL ACTION OR PROCEEDING WITH
RESPECT TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT MAY BE BROUGHT IN THE
COURTS OF THE STATE OF NEW YORK SITTING IN THE BOROUGH OF MANHATTAN OR OF THE
UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW YORK, AND BY EXECUTION AND
DELIVERY OF THIS AGREEMENT, THE BORROWER, THE ADMINISTRATIVE AGENT AND EACH
LENDER CONSENTS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE
NON-EXCLUSIVE JURISDICTION OF THOSE COURTS. 
THE BORROWER, THE ADMINISTRATIVE AGENT AND EACH LENDER IRREVOCABLY
WAIVES ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR
BASED ON THE GROUNDS OF FORUM NON CONVENIENS,
WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR
PROCEEDING IN SUCH JURISDICTION IN RESPECT OF ANY LOAN DOCUMENT OR OTHER
DOCUMENT RELATED THERETO.  THE BORROWER,
THE ADMINISTRATIVE AGENT AND EACH LENDER WAIVES PERSONAL SERVICE OF ANY
SUMMONS, COMPLAINT OR OTHER PROCESS, WHICH MAY BE MADE BY ANY OTHER MEANS
PERMITTED BY THE LAW OF SUCH STATE.

 

10.18.           No Advisory or Fiduciary
Responsibility.  In
connection with all aspects of each transaction contemplated hereby, the
Borrower acknowledges and agrees that: (i) the credit facility provided
for hereunder and any related arranging or other services in connection
therewith (including in connection with any amendment, waiver or other
modification hereof or of any other Loan Document) are an arm’s-length
commercial transaction between the Borrower and its Affiliates, on the one
hand, and the Administrative Agent, the Lenders and the Arrangers, on the other
hand, and the Borrower is capable of evaluating and understanding and
understands and accepts the terms, risks and conditions of the transactions
contemplated hereby and by the other Loan Documents (including any amendment,
waiver or other modification hereof or thereof); (ii) in connection with
the process leading to such transaction, the Administrative Agent, the Lenders
and the Arrangers, each is and has been acting solely as a principal and is not
the financial advisor, agent or fiduciary, for the Borrower or any of its
Affiliates, stockholders, creditors or employees or any other Person; (iii) none
of the Administrative Agent, any Lender or any Arranger has assumed or will
assume an advisory, agency or fiduciary responsibility in favor of the Borrower
with respect to any of the transactions contemplated hereby or the process
leading thereto, including with respect to any amendment, waiver or other modification
hereof or of any other Loan Document (irrespective of whether the
Administrative Agent or any Lender or Arranger has advised or is currently
advising the Borrower or any of its Affiliates on other matters) and none of
the Administrative Agent, any Lender or any Arranger has any obligation to the
Borrower or any of its Affiliates with respect 

 

 - 70 -

 

to the transactions
contemplated hereby except those obligations expressly set forth herein and in
the other Loan Documents; (iv) the Administrative Agent, the Lenders, the
Arrangers and their respective Affiliates may be engaged in a broad range of
transactions that involve interests that differ from those of the Borrower and
its Affiliates, and none of the Administrative Agent, any Lender or any
Arranger has any obligation to disclose any of such interests by virtue of any
advisory, agency or fiduciary relationship; and (v) the Administrative
Agent, the Lenders and the Arranger(s) have not provided and will not
provide any legal, accounting, regulatory or tax advice with respect to any of
the transactions contemplated hereby (including any amendment, waiver or other
modification hereof or of any other Loan Document) and the Borrower has
consulted its own legal, accounting, regulatory and tax advisors to the extent
it has deemed appropriate.  The Borrower
hereby waives and releases, to the fullest extent permitted by law, any claims
that it may have against the Administrative Agent, the Lenders and the Arrangers
with respect to any breach or alleged breach of agency or fiduciary duty.

 

10.19.           Waiver of Right to Trial
by Jury.  EACH PARTY TO THIS AGREEMENT
HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION
OR CAUSE OF ACTION ARISING UNDER ANY LOAN DOCUMENT OR IN ANY WAY CONNECTED WITH
OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM
WITH RESPECT TO ANY LOAN DOCUMENT, OR THE TRANSACTIONS RELATED THERETO, IN
EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER FOUNDED IN
CONTRACT OR TORT OR OTHERWISE; AND EACH PARTY HEREBY AGREES AND CONSENTS THAT
ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT
TRIAL WITHOUT A JURY, AND THAT ANY PARTY TO THIS AGREEMENT MAY FILE AN
ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS
WRITTEN EVIDENCE OF THE CONSENT OF THE SIGNATORIES HERETO TO THE WAIVER OF
THEIR RIGHT TO TRIAL BY JURY.

 

10.20.           USA PATRIOT Act Notice.  Each Lender that is subject to the Act (as
hereinafter defined) and the Administrative Agent (for itself and not on behalf
of any Lender) hereby notifies the Borrower that pursuant to the requirements
of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26,
2001)) (the “Act”), it is required to obtain, verify and record information
that identifies the Borrowers, which information includes the name and address
of each Borrower and other information that will allow such Lender or the
Administrative Agent, as applicable, to identify such Borrower in accordance
with the Act.

 

10.21.           Termination of
Commitments Under Existing Credit Agreement.  The commitments of the Existing Lenders under
the Existing Credit Agreement shall terminate on the Closing Date.  Execution of this Agreement by Lenders who
are Existing Lenders shall constitute a waiver of the notice provisions in Section 2.06
of the Existing Credit Agreement.

 

10.22.           ENTIRE AGREEMENT.  THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS
REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE
CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL
AGREEMENTS OF THE PARTIES.  THERE ARE NO
UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.

 

- 71 -

 

IN
WITNESS WHEREOF,
the parties hereto have caused this Agreement to be duly executed as of the
date first above written.

 

	
   

  	
  EQT CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Philip P. Conti

  
	
   

  	
  Name: Philip P. Conti

  
	
   

  	
  Title: SVP & CFO

  

 

 

[Signature Page to
EQT Corporation Revolving Credit Agreement]

 

 

	
   

  	
  PNC BANK, NATIONAL ASSOCIATION,

  
	
   

  	
  as Administrative Agent
  and as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Tracy J. DeCock

  
	
   

  	
  Name: Tracy J. DeCock

  
	
   

  	
  Title: Senior Vice
  President

  

 

 

[Signature Page to EQT Corporation Revolving
Credit Agreement]

 

 

	
   

  	
  JPMORGAN CHASE BANK, N.A.,

  
	
   

  	
  as a Lender and L/C
  Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Muhammad Hasan

  
	
   

  	
  Name: Muhammad Hasan

  
	
   

  	
  Title: Vice President

  

 

 

[Signature Page to EQT Corporation Revolving
Credit Agreement]

 

 

	
   

  	
  BANK OF AMERICA, N.A.,

  
	
   

  	
  as a Lender and L/C
  Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ronald E. McKaig

  
	
   

  	
  Name: Ronald E. McKaig 

  
	
   

  	
  Title: Senior Vice
  President

  

 

[Signature Page to EQT
Corporation Revolving Credit Agreement]

 

 

	
   

  	
  WELLS FARGO BANK, N.A.,

  
	
   

  	
  as a Lender and L/C
  Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul V. Farrell

  
	
   

  	
  Name: Paul V. Farrell

  
	
   

  	
  Title: Director

  

 

[Signature Page to EQT
Corporation Revolving Credit Agreement]

 

 

	
   

  	
  BARCLAYS BANK PLC,

  
	
   

  	
  as a Lender and L/C
  Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ann Sutton

  
	
   

  	
  Name: Ann Sutton

  
	
   

  	
  Title: Director

  

 

[Signature Page to EQT
Corporation Revolving Credit Agreement]

 

 

	
   

  	
  CITIBANK, N.A.,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John F. Miller

  
	
   

  	
  Name: John F. Miller

  
	
   

  	
  Title: Attorney-In-Fact

  

 

[Signature Page to EQT
Corporation Revolving Credit Agreement]

 

 

	
   

  	
  CREDIT SUISSE AG, CAYMAN
  ISLANDS

  
	
   

  	
  BRANCH, as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Doreen Barr

  
	
   

  	
  Name: Doreen Barr

  
	
   

  	
  Title: Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Vipul Dhadda

  
	
   

  	
  Name: Vipul Dhadda

  
	
   

  	
  Title: Associate

  

 

 

[Signature Page to EQT
Corporation Revolving Credit Agreement]

 

 

	
   

  	
  DEUTSCHE BANK AG NEW YORK
  BRANCH,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Philippe Sandmeier

  
	
   

  	
  Name: Philippe
  Sandmeier

  
	
   

  	
  Title: Managing
  Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ming K. Chu

  
	
   

  	
  Name: Ming K. Chu

  
	
   

  	
  Title: Vice President

  

 

[Signature Page to EQT
Corporation Revolving Credit Agreement]

 

 

	
   

  	
  SUNTRUST BANK,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gregory C. Magnuson

  
	
   

  	
  Name: Gregory C.
  Magnuson

  
	
   

  	
  Title: Vice President

  

 

[Signature Page to EQT
Corporation Revolving Credit Agreement]

 

 

	
   

  	
  THE BANK OF TOKYO-MITSUBISHI
  UFJ, LTD.,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William S. Rogers

  
	
   

  	
  Name: William S. Rogers

  
	
   

  	
  Title: Authorized
  Signatory

  

 

[Signature Page to EQT
Corporation Revolving Credit Agreement]

 

 

	
   

  	
  BNP PARIBAS,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Andrew Ostrov

  
	
   

  	
  Name: Andrew Ostrov

  
	
   

  	
  Title: Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Matthew Turner

  
	
   

  	
  Name: Matthew Turner

  
	
   

  	
  Title: Vice President

  

 

[Signature Page to EQT
Corporation Revolving Credit Agreement]

 

 

	
   

  	
  CITIZENS BANK OF PENNSYLVANIA,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Euclid B. Noble

  
	
   

  	
  Name: Euclid B. Noble

  
	
   

  	
  Title: Vice President

  

 

[Signature Page to EQT
Corporation Revolving Credit Agreement]

 

 

 

	
   

  	
  ROYAL BANK OF CANADA,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Don J. Mckinnerney

  
	
   

  	
  Name: Don J.
  Mckinnerney

  
	
   

  	
  Title: Authorized
  Signatory

  

 

[Signature Page to EQT
Corporation Revolving Credit Agreement]

 

 

	
   

  	
  RBC BANK (USA),

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard Marshall

  
	
   

  	
  Name: Richard Marshall

  
	
   

  	
  Title: Market
  Executive-National Division

  

 

[Signature Page to EQT
Corporation Revolving Credit Agreement]

 

 

	
   

  	
  THE BANK OF NEW YORK MELLON,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mark W. Rogers

  
	
   

  	
  Name: Mark W. Rogers

  
	
   

  	
  Title: Vice President

  

 

[Signature Page to EQT
Corporation Revolving Credit Agreement]

 

 

	
   

  	
  UBS LOAN FINANCE LLC,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Irja R. Otsa

  
	
   

  	
  Name: Irja R. Otsa

  
	
   

  	
  Title: Associate
  Director

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ April Varner-Nanton

  
	
   

  	
  Name: April Varner-Nanton

  
	
   

  	
  Title: Director

  

 

[Signature Page to EQT
Corporation Revolving Credit Agreement]

 

 

	
   

  	
  U.S. BANK NATIONAL ASSOCIATION,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Daria Mahoney

  
	
   

  	
  Name: Daria Mahoney

  
	
   

  	
  Title: Vice President

  

 

[Signature Page to EQT
Corporation Revolving Credit Agreement]

 

 

	
   

  	
  CREDIT AGRICOLE CORPORATE AND

  
	
   

  	
  INVESTMENT BANK, as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Darrell Stanley

  
	
   

  	
  Name: Darrell Stanley

  
	
   

  	
  Title: Managing
  Director

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Sharada Manne

  
	
   

  	
  Name: Sharada Manne

  
	
   

  	
  Title: Director

  

 

[Signature Page to EQT
Corporation Revolving Credit Agreement]

 

 

	
   

  	
  GOLDMAN SACHS BANK USA,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mark Walton

  
	
   

  	
  Name: Mark Walton

  
	
   

  	
  Title: Authorized
  Signatory

  

 

[Signature Page to EQT
Corporation Revolving Credit Agreement]

 

 

	
   

  	
  SOCIETE GENERALE,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ambrish Thanawala

  
	
   

  	
  Name: Ambrish Thanawala

  
	
   

  	
  Title: Managing
  Director

  

 

[Signature Page to EQT
Corporation Revolving Credit Agreement]

 

 

	
   

  	
  THE HUNTINGTON NATIONAL BANK,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ W. Christopher Kohler

  
	
   

  	
  Name: W. Christopher Kohler

  
	
   

  	
  Title: Senior Vice
  President

  

 

[Signature Page to EQT
Corporation Revolving Credit Agreement]

 

 

SCHEDULE I

 

EXISTING LETTERS OF CREDIT

 

Reference #
3091980

Beneficiary:  Appalachian NPI, LLC

Issuing Bank:  Bank of America, N.A.

Amount:  $23,452,576.20

Expiration Date:  March 3, 2011

 

Schedule I

 

 

 

SCHEDULE 2.01

 

COMMITMENTS

AND PRO
RATA SHARES

 

 

	
  Lender

  	
  Commitment

  	
  Percentage

  
	
  JPMorgan Chase
  Bank, N.A.

  	
  $101,000,000.00

  	
  6.733333333%

  
	
  Bank of America,
  N.A.

  	
  101,000,000.00

  	
  6.733333333%

  
	
  Wells Fargo
  Bank, N.A.

  	
  101,000,000.00

  	
  6.733333333%

  
	
  Barclays Bank
  PLC

  	
  101,000,000.00

  	
  6.733333333%

  
	
  PNC Bank,
  National Association

  	
  101,000,000.00

  	
  6.733333333%

  
	
  Citibank, N.A.

  	
  81,000,000.00

  	
  5.400000000%

  
	
  Credit Suisse
  AG, Cayman Islands Branch

  	
  81,000,000.00

  	
  5.400000000%

  
	
  Deutsche Bank AG
  New York Branch

  	
  81,000,000.00

  	
  5.400000000%

  
	
  SunTrust Bank

  	
  81,000,000.00

  	
  5.400000000%

  
	
  The Bank of
  Tokyo – Mitsubishi UFJ, Ltd.

  	
  81,000,000.00

  	
  5.400000000%

  
	
  BNP Paribas

  	
  65,000,000.00

  	
  4.333333333%

  
	
  Citizens Bank of
  Pennsylvania

  	
  65,000,000.00

  	
  4.333333333%

  
	
  Royal Bank of
  Canada

  	
  50,555,556.00

  	
  3.370370400%

  
	
  RBC Bank (USA)

  	
  14,444,444.00

  	
  0.962962933%

  
	
  The Bank of New
  York Mellon

  	
  65,000,000.00

  	
  4.333333333%

  
	
  UBS Loan Finance
  LLC

  	
  65,000,000.00

  	
  4.333333333%

  
	
  U.S. Bank
  National Association

  	
  65,000,000.00

  	
  4.333333333%

  
	
  Credit Agricole
  Corporate and Investment Bank

  	
  50,000,000.00

  	
  3.333333333%

  
	
  Goldman Sachs
  Bank USA

  	
  50,000,000.00

  	
  3.333333333%

  
	
  Societe Generale

  	
  50,000,000.00

  	
  3.333333333%

  
	
  The Huntington
  National Bank

  	
  50,000,000.00

  	
  3.333333333%

  
	
  Total
  Commitments

   

  	
  $1,500,000,000.00

  	
  100.00%

  

 

Schedule 2.01

 

SCHEDULE 10.02

 

ADMINISTRATIVE
AGENT’S OFFICE,

CERTAIN
ADDRESSES FOR NOTICES

 

BORROWER:

 

EQT Corporation

625 Liberty Avenue

Suite 1700

Pittsburgh, PA 15222

Attention: Assistant Treasurer

Telephone: (412) 553-7869

Facsimile: (412) 553-7781

Electronic Mail:  treasury@eqt.com

Website Address:  www.eqt.com

 

ADMINISTRATIVE AGENT:

 

Administrative Agent’s Office  

(for payments and Request for Credit Extensions):

PNC Agency Services

PNC Firstside Center, 4th Floor

500 First Avenue

Pittsburgh, PA 15219

Attention: Christian Schwemm

Telephone: (412) 768-7551

Facsimile: (412) 762-8672

Electronic Mail: christian.schwemm@pnc.com

 

Account No.:  13076-001-7005

Account Name: Wire Suspense – Agency Services

Ref:  EQT Corporation

ABA# 043 000 096

 

Other Notices as Administrative Agent:

 

PNC Bank, National Association

PNC Bank

225 Fifth Avenue - 4th Floor

Pittsburgh, PA 15222

Attention: Tracy J. DeCock

Telephone: (412) 762-9999

Facsimile:  (412) 762-4718

Electronic Mail: tracy.decock@pnc.com

 

Schedule 10.02

 

L/C ISSUER (PNC Bank, National
Association):

 

PNC Agency Services

PNC Firstside Center, 4th Floor

500 First Avenue

Pittsburgh, PA 15219

Attention: Christian Schwemm

Telephone: (412) 768-7551

Facsimile: (412) 762-8672

Electronic Mail: christian.schwemm@pnc.com

 

L/C ISSUER (JPMorgan Chase Bank,
N.A.):

 

JPMorgan Chase Bank, N.A.

10420 Highland Manor Drive, 4fl Building 2

Tampa, FL 33610

Attention:  James Alonzo

Telephone:  (813) 432-6339

Fax:  (813) 432-5161

Electronic Mail: 
james.alonzo@chase.com

 

with a copy to:

 

JPMorgan Chase Bank, N.A.

10420 Highland Manor Drive 4fl Building 2

Tampa, FL 33610

Attention:  Gina M. Thomas

Telephone:  (813) 432-6356

Fax:  (813) 432-5161

Electronic Mail:  gina.m.thomas@jpmorgan.com

 

L/C ISSUER (Bank of America, N.A.):

 

Bank of America, N.A.

Trade Operations-Los Angeles #22621

333 S. Beaudry Avenue, 19th Floor

Mail Code:  CA9-703-19-23

Los Angeles, CA 90017-1466

Attention:  Sandra Leon

Vice President

Telephone:  (213) 345-5231

Facsimile:  (213) 345-6694

Electronic Mail: 
Sandra.Leon@bankofamerica.com

 

L/C ISSUER (Wells Fargo Bank, N.A.):

 

Wells Fargo Bank, N.A.

1740 Broadway

Denver, CO  80274

Attention:  Elizabeth Yowell

Telephone:  (303) 863-5114

 

Schedule
10.02, page 2

 

Facsimile:  (303) 863-2729

Electronic Mail: 
Elizabeth.yowell@wellsfargo.com

 

L/C ISSUER (Barclays Bank PLC):

 

Barclays Bank PLC

Letter of Credit Department

200 Park Avenue

New York, NY  10166

Attention:  Dawn Townsend

Telephone:  (201) 499-2081

Facsimile:  (212) 412-5011

Electronic Mail: 
dawn.townsend@barclayscapital.com

 

Schedule
10.02, page 2

 

EXHIBIT  A-1

 

FORM OF
COMMITTED LOAN NOTICE

 

Date:                          ,        

 

To:          PNC Bank, National Association, as
Administrative Agent

 

Ladies and Gentlemen:

 

Reference is made to that
certain Revolving Credit Agreement, dated as of December 8, 2010 (as amended,
restated, extended, supplemented or otherwise modified in writing from time to
time, the “Agreement;” the terms defined therein being used herein as
therein defined), among EQT Corporation, a Pennsylvania corporation (the “Borrower”),
the Lenders from time to time party thereto, PNC Bank, National Association, as
Administrative Agent and an L/C Issuer, and the other L/C Issuers therein
named.

 

The undersigned hereby requests (select one):

 

	
   

  	
  o 
  A Borrowing of Committed Loans

  	
  o 
  A conversion or continuation of Loans

  
	
   

  	
   

  
	
  1.

  	
  On                                                                    (a
  Business Day).

  
	
   

  	
   

  
	
  2.

  	
  In the amount of $                                          .

  
	
   

  	
   

  
	
  3.

  	
  Comprised of                                                 .

  
	
   

  	
                                [Type
  of Committed Loan requested]

  
				

 

4.         For Eurodollar Rate Loans: 
with an Interest Period of      months.

 

The undersigned hereby
certifies that the following statements will be true on the date of the proposed
before and after giving effect thereto and to the application of the proceeds
therefrom:

 

(a)        the representations and warranties of
the Borrower contained in Article V of the Agreement are true and
correct as of the date hereof (except such representations and warranties which
expressly refer to an earlier date, which are true and correct as of such
earlier date, and except for the following: 
[described any exceptions to the representations and warranties in Section
5.04(c), 5.05 and 5.06 that have been disclosed to the
Administrative Agent, and identify when such disclosure was made and in what
document]); and

 

(b)        no Default has occurred and is
continuing, or would result from the proposed Borrowing.

 

[The Committed Borrowing
requested herein complies with the proviso to the first sentence of Section
2.01 of the Agreement.]

 

	
   

  	
  EQT CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

Exhibit A-1 – Page
1

Form of Committed
Loan Notice

 

EXHIBIT A-2

 

FORM OF SWING LINE LOAN NOTICE

 

Date:                          ,        

 

To:          PNC Bank, National Association, as Swing
Line Lender

PNC Bank, National Association, as Administrative Agent

 

Ladies and Gentlemen:

 

Reference is made to that
certain Revolving Credit Agreement, dated as of December 8, 2010 (as amended,
restated, extended, supplemented or otherwise modified in writing from time to
time, the “Agreement;” the terms defined therein being used herein as
therein defined), among EQT Corporation, a Pennsylvania corporation (the “Borrower”),
the Lenders from time to time party thereto, PNC Bank, National Association, as
Administrative Agent, an L/C Issuer and Swing Line Lender and the other L/C
Issuers therein named.

 

The undersigned hereby requests (select one):

 

 

	
   

  	
  o 
  A Borrowing of Swing Line Loans

  	
  o 
  A conversion of Swing Line Loans

  
	
   

  	
   

  
	
  1.

  	
  On                                                                    (a
  Business Day).

  
	
   

  	
   

  
	
  2.

  	
  In the amount of $                                          .

  
	
   

  	
   

  
	
  3.

  	
  Comprised of                                                 .

  
	
   

  	
                                [Type
  of Swing Line Loan requested]

  
				

 

The Swing Line Borrowing
requested herein complies with the requirements of the provisos to the first
sentence of Section 2.04(a) of the Agreement.

 

	
   

  	
  EQT CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

Exhibit A-2 – Page
1

Form of Swing Line
Loan Notice

 

EXHIBIT B

 

FORM OF
NOTE

 

                                    [Date]

 

FOR VALUE
RECEIVED, the undersigned (the “Borrower”), hereby promises to pay to                                           
or registered assigns (the “Lender”), in accordance with the provisions
of the Agreement (as hereinafter defined), the principal amount of each Loan
from time to time made by the Lender to the Borrower under that certain
Revolving Credit Agreement, dated as of December 8, 2010 (as amended,
restated, extended, supplemented or otherwise modified in writing from time to
time, the “Agreement;” the terms defined therein being used herein as
therein defined), among the Borrower, the Lenders from time to time party
thereto, PNC Bank, National Association, as Administrative Agent and an L/C
Issuer, and the other L/C Issuers therein named.

 

The Borrower promises to
pay interest on the unpaid principal amount of each Loan from the date of such
Loan until such principal amount is paid in full, at such interest rates and at
such times as provided in the Agreement. 
All payments of principal and interest shall be made to the
Administrative Agent for the account of the Lender in Dollars in immediately
available funds at the Administrative Agent’s Office.  If any amount is not paid in full when due
hereunder, such unpaid amount shall bear interest, to be paid upon demand, from
the due date thereof until the date of actual payment (and before as well as
after judgment) computed at the per annum rate set forth in the Agreement.

 

This Note is one of the
Notes referred to in the Agreement, is entitled to the benefits thereof and may
be prepaid in whole or in part subject to the terms and conditions provided
therein.  Upon the occurrence and
continuation of one or more of the Events of Default specified in the
Agreement, all amounts then remaining unpaid on this Note shall become, or may
be declared to be, immediately due and payable all as provided in the
Agreement.  Loans made by the Lender
shall be evidenced by one or more loan accounts or records maintained by the
Lender in the ordinary course of business. The Lender may also attach schedules
to this Note and endorse thereon the date, amount and maturity of its Loans and
payments with respect thereto.

 

This Note is a Loan
Document and is subject to Section 10.10 of the Agreement, which is
incorporated herein by reference the same as if set forth herein verbatim.

 

The Borrower, for itself,
its successors and assigns, hereby waives diligence, presentment, protest and
demand and notice of protest, demand, dishonor and non-payment of this Note.

 

Exhibit B - Page 1

Form of Note

 

THIS NOTE SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK;
PROVIDED THAT THE ADMINISTRATIVE AGENT AND EACH LENDER SHALL RETAIN ALL RIGHTS
ARISING UNDER FEDERAL LAW.

 

	
   

  	
  EQT
  CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

Exhibit B - Page 2

Form of Note

 

LOANS AND
PAYMENTS WITH RESPECT THERETO

 

	
  Date

  	
   

  	
  Type of Loan

  Made

  	
   

  	
  Amount of 

  Loan Made

  	
   

  	
  End of 

  Interest 

  Period

  	
   

  	
  Amount of 

  Principal or 

  Interest Paid 

  This Date

  	
   

  	
  Outstanding 

  Principal 

  Balance This 

  Date

  	
   

  	
  Notation 

  Made By

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Exhibit B - Page 3

Form of Note

 

EXHIBIT C

 

FORM OF
COMPLIANCE CERTIFICATE

 

Financial
Statement Date:                               ,        

 

To:          PNC Bank, National Association, as
Administrative Agent

 

Ladies
and Gentlemen:

 

Reference is made to that
certain Revolving Credit Agreement, dated as of December 8, 2010 (as
amended, restated, extended, supplemented or otherwise modified in writing from
time to time, the “Agreement;” the terms defined therein being used
herein as therein defined), among EQT Corporation, a Pennsylvania corporation
(the “Borrower”), the Lenders from time to time party thereto, PNC Bank,
National Association, as Administrative Agent and an L/C Issuer, and the other
L/C Issuers therein named.

 

The undersigned
Responsible Officer hereby certifies as of the date hereof that he/she is the                           
                                 of
the Borrower, and that, as such, he/she is authorized to execute and deliver
this Certificate to the Administrative Agent on the behalf of the Borrower, and
that:

 

[Use
following paragraph 1 for fiscal year-end
financial statements]

 

1.            Attached hereto as Schedule 1 are
the year-end audited financial statements required by Section 6.01(a) of
the Agreement for the fiscal year of the Borrower ended as of the above date,
together with the report and opinion of an independent certified public
accountant required by such section. 
Such financial statements fairly present the financial condition,
results of operations and cash flows of the Borrower and its Subsidiaries in
accordance with GAAP as at such date and for such period.

 

[select one]

[are attached hereto as Schedule
1]

--or--

[are available  in electronic format and have been delivered
pursuant to Section 6.01 of the Agreement].

 

[Use
following paragraph 1 for fiscal quarter-end
financial statements]

 

1.            Attached hereto as Schedule 1 are
the unaudited financial statements required by Section 6.01(b) of
the Agreement for the fiscal quarter of the Borrower ended as of the above
date.  Such financial statements fairly
present the financial condition, results of operations and cash flows of the
Borrower and its Subsidiaries in accordance with GAAP as at such date and for
such period, subject only to normal year-end audit adjustments and the absence
of footnotes.

 

[select one]

[are attached hereto as Schedule
1]

--or--

[are available  in electronic format and have been delivered
pursuant to Section 6.01 of the Agreement].

 

2.            The undersigned has reviewed and is
familiar with the terms of the Agreement and has made, or has caused to be made
under his/her supervision, a detailed review of the transactions and condition
(financial or otherwise) of the Borrower during the accounting period covered
by the attached financial statements.

 

Exhibit C - Page 1

Form of Compliance Certificate

 

3.            A review of the activities of the
Borrower during such fiscal period has been made under the supervision of the
undersigned with a view to determining whether during such fiscal period the
Borrower performed and observed all its Obligations under the Loan Documents,
and

 

[select one:]

 

[to the best knowledge of
the undersigned during such fiscal period, (a) the Borrower performed and
observed each covenant and condition of the Loan Documents applicable to it,
and (b) no Default exists.]

--or--

[the following covenants
or conditions have not been performed or observed [or: the following Default
exists] and the following is a list of each such Default and its nature and
status:]

 

4.            The representations and warranties of the
Borrower contained in Article V of the Agreement (except with
respect to the representations and warranties in Sections 5.04(c), 5.05
and 5.06, to the extent disclosed herein), or which are contained in any
document furnished at any time under or in connection with the Loan Documents,
are true and correct on and as of the date hereof, except to the extent that
such representations and warranties specifically refer to an earlier date, in
which case they are true and correct as of such earlier date, and except that
for purposes of this Compliance Certificate, the representations and warranties
contained in subsections (a) and (b) of Section 5.04 of
the Agreement shall be deemed to refer to the most recent statements furnished
pursuant to clauses (a) and (b), respectively, of Section 6.01
of the Agreement, including the statements in connection with which this
Compliance Certificate is delivered.

 

[the following is a
description of the nature and status of each event or circumstance which causes
the representations and warranties in Section[s] [5.04(c)], [5.05]
and [5.06], to be untrue on the date hereof:]

 

5.            The financial covenant analyses and
information set forth on Schedule 2 attached hereto are true and
accurate on and as of the date of this Certificate.

 

IN
WITNESS WHEREOF,
the undersigned has executed this Certificate as of                                ,           .

 

	
   

  	
  EQT
  CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

Exhibit C - Page 2

Form of Compliance Certificate

 

SCHEDULE 1

 

Financial Statements

 

Exhibit C - Page 3

Form of Compliance Certificate

 

For the Quarter/Year ended

 

                                      (“Statement Date”)

 

SCHEDULE
2

to the Compliance
Certificate

($ in 000’s)

 

Section 7.02
– Debt to Total Capital.

 

I.             Consolidated Debt at Statement Date

 

	
  A.           Debt of the Borrower and its
  Subsidiaries on the Statement Date:

  	
   

  	
  $                          

  
	
   

  	
   

  	
   

  
	
  B.           Non-Recourse Debt of the Borrower and
  its Subsidiaries on the Statement Date:

  	
   

  	
  $                          

  
	
   

  	
   

  	
   

  
	
  C.           Designated
  Hybrid Equity Securities on the Statement Date:

  	
   

  	
  $                          

  
	
   

  	
   

  	
   

  
	
  D.           Consolidated Debt at Statement Date

  (Lines I.A. – I.B. – I.C.):

  	
   

  	
  $                          

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  II.           Total Capital at Statement Date:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  A.           Consolidated Debt at Statement Date 

  (Line I.D. above):

  	
   

  	
  $                          

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  B.           Shareholders’ Equity on the Balance
  Sheet:

  	
   

  	
  $                          

  
	
   

  	
   

  	
   

  
	
  C.           Designated Hybrid Equity Securities on
  the Statement Date:

  	
   

  	
  $                          

  
	
   

  	
   

  	
   

  
	
  D.           Any excess of the net book value of
  assets subject to Liens securing Non-Recourse Debt (including the total
  assets of Excluded Subsidiaries) over the amount of the related Non-Recourse
  Debt that is reflected in Shareholders’ Equity:

  	
   

  	
  $                          

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  E.1.        Either:

  Less the absolute value of accumulated other comprehensive income as
  determined in accordance with GAAP:

  	
   

  	
  $                          

  

 

Exhibit C - Page 4

Form of Compliance Certificate

 

	
  Or

  	
   

  	
   

  
	
  E.2.        Plus the absolute value of accumulated
  other comprehensive loss as determined in accordance with GAAP:

  	
   

  	
  $                          

  
	
   

  	
   

  	
   

  
	
  F.            Total Capital at Statement Date (Lines
  II.A. + II.B. + II.C. – II.D. and either –II.E1. (in the case of accumulated
  other comprehensive income) or +II.E2. (in the case of accumulated
  other comprehensive loss):

  	
   

  	
  $                          

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  III.          Consolidated Debt to Total Capital at
  Statement Date:

  (Line I.D.  ̧ Line II.F.) (cannot exceed 0.65 during
  any period)

  	
   

  	
   _______________

  

 

Exhibit C - Page 5

Form of Compliance Certificate

 

EXHIBIT D

 

FORM OF
ASSIGNMENT AND ASSUMPTION

 

This Assignment and
Assumption (this “Assignment and Assumption”) is dated as of the
Effective Date set forth below and is entered into by and between [the] [each]1 Assignor identified in item 1 below ([the][each,
an] “Assignor”) and [the][each]2 Assignee
identified in item 2 below ([the][each], an] “Assignee”).  [It is understood and agreed that the rights
and obligations of the [the Assignors][the Assignees]3 hereunder are several and not joint.]4 Capitalized terms used but not defined herein
shall have the meanings given to them in the Revolving Credit Agreement
identified below (the “Credit Agreement”), receipt of a copy of which is
hereby acknowledged by the Assignee.  The
Standard Terms and Conditions set forth in Annex 1 attached hereto are hereby
agreed to and incorporated herein by reference and made a part of this
Assignment and Assumption as if set forth herein in full.

 

For an agreed
consideration, [the][each] the Assignor hereby irrevocably sells and assigns to
[the Assignee] [the respective Assignees], and [the][each] Assignee hereby
irrevocably purchases and assumes from the [the Assignor][the respective
Assignors], subject to and in accordance with the Standard Terms and Conditions
and the Credit Agreement, as of the Effective Date inserted by the
Administrative Agent as contemplated below (i) all of [the Assignor’s]
[the respective Assignors’] rights and obligations in [its capacity as a
Lender][their respective capacities as Lenders] under the Credit Agreement and
any other documents or instruments delivered pursuant thereto to the extent
related to the amount and percentage interest identified below of all of such
outstanding rights and obligations of [the Assignor] [the respective Assignors]
under the revolving credit facility established pursuant to the Credit
Agreement (including, without limitation, Letters of Credit and Swing Line
Loans) and (ii) to the extent permitted to be assigned under applicable
law, all claims, suits, causes of action and any other right of [the Assignor
(in its capacity as a Lender)] [the respective Assignors (in their respective
capacities as Lenders)] against any Person, whether known or unknown, arising
under or in connection with the Credit Agreement, any other documents or
instruments delivered pursuant thereto or the loan transactions governed
thereby or in any way based on or related to any of the foregoing, including,
but not limited to, contract claims, tort claims, malpractice claims, statutory
claims and all other claims at law or in equity related to the rights and
obligations sold and assigned pursuant to clause (i) above (the rights and
obligations sold and assigned by [the][any] Assignor to [the][any] Assignee
pursuant to clauses (i) and (ii) above being referred to herein
collectively as [the][an] “Assigned Interest”).  Each such sale and assignment is without
recourse to [the][any] Assignor and, except as expressly provided in this
Assignment and Assumption, without representation or warranty by [the][any]Assignor.

 

1.            Assignor[s]:                                                            

 

2.            Assignee[s]:                                                                  [for
each Assignee, indicate [Affiliate] [Approved Fund] of [identify Lender]]

 

 

	
   

  	
   

  	
   

  

1              For
bracketed language here and elsewhere in this form relating to the Assignor(s),
if the assignment is from a single Assignor, choose the first bracketed
language.  If the assignment is from
multiple Assignors, choose the second bracketed language.

2              For
bracketed language here and elsewhere in this form relating to the Assignor(s),
if the assignment is to a single Assignor, choose the first bracketed
language.  If the assignment is from
multiple Assignors, choose the second bracketed language.

3              Select
as appropriate.

4              Include
bracketed language if there are either multiple Assignors or multiple
Assignees.

 

Exhibit D - Page 1

Form of Assignment and Assumption

 

 

	
  3.

  	
  Borrower:

  	
  EQT Corporation

  
	
   

  	
   

  	
   

  
	
  4.

  	
  Administrative
  Agent:

  	
  PNC Bank,
  National Association, as the administrative agent under the Credit Agreement

  
	
   

  	
   

  	
   

  
	
  5.

  	
  Credit
  Agreement:

  	
  The Revolving
  Credit Agreement, dated as of December 8, 2010, among EQT Corporation,
  the Lenders parties thereto, PNC Bank, National Association, as
  Administrative Agent, Swing Line Lender and an L/C Issuer, and the other L/C
  Issuers therein named.

  
	
   

  	
   

  	
   

  
	
  6.

  	
  Assigned
  Interest:

  	
   

  

 

	
  Assignor[s]5

  	
  Assignee[s]6

  	
  Aggregate

  Amount of

  Commitment/Loans

  for all Lenders

  	
  Amount of

  Commitment/Loans

  Assigned

  	
  Percentage

  Assigned of

  Commitment/Loans7

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  $                                    

  	
  $                                   

  	
                           %

  

[7.           Trade Date:                                           ]8

 

Effective Date:                                     ,
20     [TO BE INSERTED BY ADMINISTRATIVE AGENT AND
WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER
THEREFOR.]

 

The terms set forth in
this Assignment and Assumption are hereby agreed to:

 

	
   

  	
  ASSIGNOR

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [NAME OF ASSIGNOR]

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ASSIGNEE

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [NAME OF ASSIGNEE]

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

 

	
   

  	
   

  	
   

  

5              List
Assignor, as appropriate.

6              List
each Assignee, as appropriate.

7              Set
forth, to at least 9 decimals, as a percentage of the Commitment of all Lenders
thereunder.

8              To
be completed if the Assignor and the Assignee intend that the minimum
assignment amount is to be determined as of the Trade Date.

 

Exhibit D - Page 2

Form of Assignment and Assumption

 

 

	
  [Consented
  to and] Accepted:

  
	
   

  
	
  [NAME
  OF ADMINISTRATIVE AGENT], as

  
	
  Administrative Agent

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Title:

  	
   

  
	
   

  	
   

  
	
  [Consented to:]

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Title:

  	
   

  

 

Exhibit D - Page 3

Form of Assignment
and Assumption

 

 

ANNEX
1 TO ASSIGNMENT AND ASSUMPTION

 

STANDARD TERMS AND
CONDITIONS FOR

 

ASSIGNMENT AND
ASSUMPTION

 

1.    Representations and Warranties.

 

1.1. Assignor.  [The][Each]
Assignor (a) represents and warrants that (i) it is the legal and
beneficial owner of the [the][the relevant] Assigned Interest,
(ii) [the][such] Assigned Interest is free and clear of any lien,
encumbrance or other adverse claim, (iii) it has full power and authority,
and has taken all action necessary, to execute and deliver this Assignment and
Assumption and to consummate the transactions contemplated hereby and
(iv) it is [not] a Defaulting Lender; and (b) assumes no responsibility
with respect to (i) any statements, warranties or representations made in
or in connection with the Credit Agreement or any other Loan Document,
(ii) the execution, legality, validity, enforceability, genuineness,
sufficiency or value of the Loan Documents or any collateral thereunder,
(iii) the financial condition of the Borrower, any of its Subsidiaries or
Affiliates or any other Person obligated in respect of any Loan Document or
(iv) the performance or observance by the Borrower, any of its
Subsidiaries or Affiliates or any other Person of any of their respective
obligations under any Loan Document.

 

1.2. Assignee.  [The][Each]
Assignee (a) represents and warrants that (i) it has full power and
authority, and has taken all action necessary, to execute and deliver this
Assignment and Assumption and to consummate the transactions contemplated
hereby and to become a Lender under the Credit Agreement, (ii) it meets
all the requirements to be an assignee under section 10.0(7)(b)(iii),(v) and
(vi) of the Credit Agreement (subject to such consents, if any, as may be
required under section 10.07(b)(iii) of the Credit Agreement),
(iii) from and after the Effective Date, it shall be bound by the
provisions of the Credit Agreement as a Lender thereunder and, to the extent of
[the][relevant] Assigned Interest, shall have the obligations of a Lender
thereunder, (iv) it is sophisticated with respect to decisions to acquire
assets of the type represented by [the][such] Assigned Interest and either it, or
the Person exercising discretion in making its decision to acquire [the][such]
Assigned Interest, is experienced in acquiring assets of such type, (v) it
has received a copy of the Credit Agreement, and has received or has been
accorded the opportunity to receive copies of the most recent financial
statements delivered pursuant to Section 6.01 thereof, as applicable, and
such other documents and information as it deems appropriate to make its own
credit analysis and decision to enter into this Assignment and Assumption and
to purchase [the][such] Assigned Interest, (vi) it has independently and
without reliance upon the Administrative Agent or any other Lender, and based
on such documents and information as it has deemed appropriate, made its own
credit analysis and decision to enter into this Assignment and Assumption and
to purchase [the][such]  Assigned
Interest, and (vii) if it is a Foreign Lender, attached hereto is any
documentation required to be delivered by it pursuant to the terms of the
Credit Agreement, duly completed and executed by [the][such] Assignee; and
(b) agrees that (i) it will, independently and without reliance upon
the Administrative Agent, [the][any] the Assignor or any other Lender, and
based on such documents and information as it shall deem appropriate at the
time, continue to make its own credit decisions in taking or not taking action
under the Loan Documents, and (ii) it will perform in accordance with
their terms all of the obligations which by the terms of the Loan Documents are
required to be performed by it as a Lender.

 

2.    Payments.  From and
after the Effective Date, the Administrative Agent shall make all payments in
respect of [the][each] Assigned interest (including payments of principal,
interest, fees and other amounts) to [the][the relevant] Assignor for amounts
which have accrued to but excluding the Effective Date and to [the][the
relevant] Assignee for amounts which have accrued from and after the Effective
Date.

 

Exhibit D - Page 4

Form of Assignment and Assumption

 

 

3.    General Provisions. 
This Assignment and Assumption shall be binding upon, and inure to the
benefit of, the parties hereto and their respective successors and
assigns.  This Assignment and Assumption
may be executed in any number of counterparts, which together shall constitute
one instrument.  Delivery of an executed
counterpart of a signature page of this Assignment and Assumption by
telecopy shall be effective as delivery of a manually executed counterpart of
this Assignment and Assumption.  This
Assignment and Assumption shall be governed by, and construed in accordance
with, the law of the State of New York.

 

Exhibit D - Page 5

Form of Assignment and Assumption

 

 

EXHIBIT E-1

 

FORM OF
OPINION OF REED SMITH LLP

 

December 8,
2010

 

To PNC Bank, National
Association, as

Administrative Agent, and
the Lenders

and the other Agents
Parties to the

Credit Agreement Referred
to Below

 

Ladies and Gentlemen:

 

We
have participated in the preparation of the Revolving Credit Agreement (the “Credit
Agreement”) dated as of December 8, 2010 among EQT Corporation, a
Pennsylvania corporation (the “Borrower”), the Lenders named therein, PNC Bank,
National Association, as Administrative Agent and an L/C Issuer, and the other
L/C Issuers named therein, and have acted as special counsel for the Borrower
for the purpose of rendering this opinion pursuant to
Section 4.01(a)(v) of the Credit Agreement.  Capitalized terms used herein which are
defined in the Credit Agreement are used herein as therein defined.

 

We
have examined originals or copies, certified or otherwise identified to our
satisfaction, of such documents, corporate records, certificates of public
officials and other instruments and have conducted such other investigations of
law as we have deemed necessary or advisable for purposes of this opinion.  We have assumed, with respect to all
documents which we have examined:  the
genuineness of all signatures thereon, the authenticity of all documents
submitted to us as originals, the conformity to the originals of all documents
submitted to us as copies, and the authenticity of the originals of such
copies.

 

In
rendering this opinion we have assumed with your permission that (i) the
Credit Agreement has been duly authorized, executed and delivered by
Administrative Agent and each Lender, (ii) the Borrower has been duly
incorporated and is validly existing as a corporation under the laws of the
Commonwealth of Pennsylvania, (iii) the Borrower has duly authorized,
executed and delivered the Credit Agreement and the Notes, and (iv) the
execution and delivery by the Borrower of the Credit Agreement and the Notes
require no consent or approval by any governmental body, agency or official or
any filing with the public utility commissions of Kentucky, Pennsylvania, or
West Virginia.  We understand you have
relied on the opinion of the Borrower’s General Counsel of even date herewith
with respect to these issues regarding the Borrower.

 

Upon
the basis of the foregoing, we are of the opinion that the Credit Agreement
constitutes a legal, valid and binding agreement of the Borrower and each Note
constitutes a legal, valid and binding obligation of the Borrower, in each case
enforceable in accordance with its terms, except as the same may be limited by
applicable bankruptcy, insolvency, fraudulent conveyance, fraudulent transfer,
reorganization, receivership, moratorium or similar laws relating to or
affecting creditors’ rights generally and by general principles of equity,
whether enforcement is sought in a proceeding in equity or at law.  The enforceability of the respective
obligations of the parties to the Credit Agreement and the Note, and the
availability of certain rights and remedies provided for therein, may be
limited by applicable state and federal laws and judicial decisions, but the
remedies provided for in the Credit Agreement are adequate for the practical
realization of the benefits provided thereby, except for the consequences of
any procedural delay which may result therefrom.

 

 

Exhibit E-1 - Page 1

Form of Opinion of Reed Smith LLP

 

 

We
express no opinion as to the enforceability of any provisions of the Credit
Agreement or any Note providing for the indemnification or exculpation of any
Agent or any Lender (A) in violation of public policy, (B) to the
extent precluded by federal or state securities laws, or (C) purporting to
indemnify or exculpate any Agent or any Lender from the consequences of its own
gross negligence, willful misconduct or strict liability.

 

We are
members of the Bar of the State of New York and of the Commonwealth of
Pennsylvania and the foregoing opinion is limited to the laws of the
Commonwealth of Pennsylvania and of the State of New York and the applicable
federal laws of the United States of America. 
In giving the foregoing opinion, we express no opinion as to the effect
(if any) of any law of any jurisdiction (except the Commonwealth of
Pennsylvania and the State of New York) in which any Lender is located which
limits the rate of interest that such Lender may charge or collect.  Our opinion is qualified to the extent, if
any, of the applicability to this transaction of Section 911(b) of
the Pennsylvania Crimes Code (the “Crimes Code”), Act of December 6, 1972,
P.L. 1482, No. 334, as amended, 18 Pa.C.S. §911(b), which prohibits the
use or investment of income derived from a pattern of “racketeering activity”
in the establishment or operation of any enterprise.  “Racketeering activity,” as defined in the
Crimes Code, includes the collection of money or other property in full or
partial satisfaction of a debt which arose as the result of the lending of
money or other property at a rate of interest exceeding 25% per annum “when not
otherwise authorized by law”.

 

This
opinion is rendered solely to you and to Eligible Assignees in connection with
the above matter.  This opinion may not
be relied upon by you or Assignees for any other purpose or relied upon by any
other person without our prior written consent. 
The opinions expressed herein are rendered and speak only as of the date
hereof, and we specifically disclaim any responsibility to update such opinions
or to advise you of subsequent developments affecting such opinions that
hereafter may come to our attention.

 

	
   

  	
  Very truly yours,

  

 

 

 

AEL:la

 

 

Exhibit E-1 - Page 2

Form of Opinion of Reed Smith LLP

 

 

EXHIBIT E-2

 

FORM OF
OPINION OF DEPUTY GENERAL COUNSEL

OF
EQT CORPORATION

 

December 8,
2010

 

To PNC Bank, National
Association, as

Administrative Agent and
the Lenders and the

other Agents Parties to
the Credit

Agreement Referred to
Below

 

Ladies and Gentlemen:

 

I am
Deputy General Counsel of EQT Corporation (the “Borrower”) and have acted as
internal counsel for the Borrower in connection with the Revolving Credit
Agreement (the “Credit Agreement”) dated as of December 8, 2010 among the
Borrower, the Lenders parties thereto, PNC Bank, National Association, as
Administrative Agent and an L/C Issuer, and the other L/C Issuers named
therein.  Capitalized terms which are
defined in the Credit Agreement are used herein as therein defined.  This opinion is being rendered to you at the
request of my client pursuant to Section 4.01(a)(v) of the Credit
Agreement.

 

For
purposes of rendering this opinion, I have examined the following:

 

1.            the Credit Agreement;

 

2.            the Notes;

 

3.            the Certificate of Incorporation and Bylaws of the
Borrower;

 

4.            a Certificate of Good Standing of the Borrower,
certified by the Secretary of the Commonwealth of Pennsylvania on                           ,
2010; and

 

5.            Minutes of the meeting of the Board of Directors of
the Borrower on                  
    ,         .

 

For
purposes of rendering this opinion I have relied without independent
investigation upon statements of officers and employees of the Borrower as to
certain factual matters relevant to this opinion.  I have assumed, with respect to all documents
which I have examined:  the genuineness
of all signatures thereon (other than signatures of officers of the Borrower),
the authenticity of all documents submitted to me as originals, the conformity
to the originals of all documents submitted to me as copies, and the
authenticity of the originals of such copies.

 

Upon
the basis of the foregoing, I am of the opinion that:

 

1.            The Borrower is a corporation duly incorporated,
validly existing and in good standing under the laws of Pennsylvania and has
all corporate powers and authority and all material governmental licenses,
authorizations, consents and approvals required to carry on its business as now
conducted and execute, deliver and perform its obligations under the Credit
Agreement and Notes.

 

2.            The execution, delivery and performance by the
Borrower of the Credit Agreement and the Notes (a) are within the
corporate powers of the Borrower, (b) have been duly authorized by all

 

Exhibit E-2 – Page 1

Form of Opinion of
General Counsel of EQT Corporation

 

 

necessary corporate
action, (c) require no consent or approval by, or filing with, the public
utility commissions of Kentucky, Pennsylvania, or West Virginia, or any other
Governmental Authority of the Commonwealth of Pennsylvania or of the Federal
government of the United States, (d) do not contravene, or constitute a
default under, the articles of incorporation or by-laws of the Borrower,
(e) do not contravene, or constitute a default under, any agreement,
judgment, injunction, order, decree, or other instrument, in each case under
this clause (e) of which I have actual knowledge, binding upon the
Borrower or any of its Subsidiaries, or (f) result in the creation or
imposition of any Lien on any asset of the Borrower or any of its Subsidiaries.  The Credit Agreement has been duly executed
and delivered by the Borrower.  The
execution and delivery of the Credit Agreement, and the making and repayment of
the Loans or other payment obligations, do not violate any applicable Law of
Pennsylvania or the United States.

 

3.            There is no action, suit or proceeding pending
against, or to the best of my actual knowledge threatened against, the Borrower
or any of its Subsidiaries before any court or arbitrator or any governmental
body, agency or official, in which there is a reasonable possibility of an
adverse decision which could materially adversely affect the business,
consolidated financial position or consolidated results of operations of the
Borrower and its Consolidated Subsidiaries, considered as a whole, or which in
any manner draws into question the validity of the Credit Agreement or the
Notes.

 

4.            Each of the Borrower’s corporate Subsidiaries is a
corporation validly existing, and has all corporate powers and all material
governmental licenses, authorizations, consents and approvals required to carry
on its business as now conducted.

 

5.            None of the Borrower, any Person Controlling the
Borrower, or any Subsidiary is or is required to be registered as an “investment
company” under the Investment Company Act of 1940.

 

I am a
member of the Bar of the Commonwealth of Pennsylvania and the foregoing opinion
is limited (i) to the laws of the Commonwealth of Pennsylvania,
(ii) to the applicable federal laws of the United States of America,
(iii) to the extent set forth in paragraph 2 above, to the public utility
laws of the Commonwealth of Kentucky and the State of West Virginia and
(iv) to the extent set forth in paragraph 4 above, to the general
corporation laws of the applicable States of the United States under which the
Borrower’s Subsidiaries are organized.

 

This
opinion is rendered solely to you and to Eligible Assignees in connection with
the Credit Agreement.  This opinion may
not be relied upon by you or Eligible Assignees for any other purpose or relied
upon by any other person without my prior written consent.  The opinions expressed herein are rendered
and speak only as of the date hereof, and I specifically disclaim any
responsibility to update such opinions or to advise you of subsequent
developments affecting such opinions that hereafter may come to my attention.

 

Very truly yours,

 

Deputy General Counsel

 

 

Exhibit E-2 – Page 2

Form of Opinion of
General Counsel of EQT CorporationExhibit 10.57

 

 

SECURITIES PURCHASE AGREEMENT

 

BETWEEN

 

COMMUNICATION INTELLIGENCE CORPORATION,

 

PHOENIX VENTURE FUND LLC

 

AND

 

THE INVESTORS SIGNATORY HERETO

 

DATED AS OF DECEMBER 9, 2010

 

 

 

Table of Contents

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  1.

  	
  Authorization of Securities

  	
  1

  
	
  2.

  	
  Sale and Purchase of the Series C Preferred Stock and
  Warrants

  	
  1

  
	
  3.

  	
  Closing; Payment of Purchase Price; Use of Proceeds

  	
  2

  
	
   

  	
  3.1

  	
  Closing

  	
  2

  
	
   

  	
  3.2

  	
  Use of Proceeds

  	
  2

  
	
  4.

  	
  Representations and Warranties of the Purchasers; Register
  of Securities; Restrictions on Transfer

  	
  2

  
	
   

  	
  4.1

  	
  Organization; Authority

  	
  2

  
	
   

  	
  4.2

  	
  Validity

  	
  2

  
	
   

  	
  4.3

  	
  Brokers

  	
  3

  
	
   

  	
  4.4

  	
  Investment Representations and Warranties

  	
  3

  
	
   

  	
  4.5

  	
  Acquisition for Own Account

  	
  3

  
	
   

  	
  4.6

  	
  Ability to Protect Its Own Interests and Bear Economic
  Risks

  	
  3

  
	
   

  	
  4.7

  	
  Accredited Investor

  	
  3

  
	
   

  	
  4.8

  	
  Access to Information

  	
  3

  
	
   

  	
  4.9

  	
  Restricted Securities

  	
  4

  
	
   

  	
  4.10

  	
  Residence

  	
  4

  
	
  5.

  	
  Representations and Warranties by the Company

  	
  4

  
	
   

  	
  5.1

  	
  Capitalization

  	
  4

  
	
   

  	
  5.2

  	
  Due Issuance and Authorization of Capital Stock

  	
  5

  
	
   

  	
  5.3

  	
  Organization

  	
  6

  
	
   

  	
  5.4

  	
  Subsidiaries

  	
  6

  
	
   

  	
  5.5

  	
  Consents

  	
  6

  
	
   

  	
  5.6

  	
  Power and Authorization

  	
  7

  
	
   

  	
  5.7

  	
  Enforcement

  	
  7

  
	
   

  	
  5.8

  	
  No Conflicts

  	
  7

  
	
   

  	
  5.9

  	
  Material Contracts

  	
  8

  
	
   

  	
  5.10

  	
  Right of First Refusal; Stockholders Agreement; Voting and
  Registration Rights

  	
  8

  
	
   

  	
  5.11

  	
  Previous Issuances

  	
  8

  
	
   

  	
  5.12

  	
  No Integrated Offering

  	
  9

  

 

i

 

Table of Contents

(Continued)

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
   

  	
  5.13

  	
  SEC Reports; Financial Statements

  	
  9

  
	
   

  	
  5.14

  	
  No Undisclosed Material Liabilities

  	
  9

  
	
   

  	
  5.15

  	
  Litigation

  	
  10

  
	
   

  	
  5.16

  	
  Taxes

  	
  10

  
	
   

  	
  5.17

  	
  Employee Matters

  	
  10

  
	
   

  	
  5.18

  	
  Compliance with Laws

  	
  11

  
	
   

  	
  5.19

  	
  Brokers

  	
  11

  
	
   

  	
  5.20

  	
  Environmental Matters

  	
  11

  
	
   

  	
  5.21

  	
  Intellectual Property Matters

  	
  12

  
	
   

  	
  5.22

  	
  Related-Party Transactions

  	
  17

  
	
   

  	
  5.23

  	
  Title to Property and Assets

  	
  18

  
	
   

  	
  5.24

  	
  Absence of Changes

  	
  18

  
	
   

  	
  5.25

  	
  Illegal Payments

  	
  20

  
	
   

  	
  5.26

  	
  Suppliers and Customers

  	
  20

  
	
   

  	
  5.27

  	
  Regulatory Permits

  	
  20

  
	
   

  	
  5.28

  	
  Insurance

  	
  20

  
	
   

  	
  5.29

  	
  Investment Company

  	
  20

  
	
   

  	
  5.30

  	
  Listing and Maintenance Requirements

  	
  20

  
	
   

  	
  5.31

  	
  Accountants

  	
  21

  
	
   

  	
  5.32

  	
  Application of Takeover Protections

  	
  21

  
	
   

  	
  5.33

  	
  Stock Options

  	
  21

  
	
   

  	
  5.34

  	
  Disclosure

  	
  21

  
	
  6.

  	
  Pre-Closing Covenants

  	
  21

  
	
   

  	
  6.1

  	
  Conduct of Business

  	
  21

  
	
   

  	
  6.2

  	
  Notice of Certain Events

  	
  22

  
	
  7.

  	
  Conditions of Parties’ Obligations

  	
  23

  
	
   

  	
  7.1

  	
  Conditions of the Purchasers’ Obligations

  	
  23

  
	
   

  	
  7.2

  	
  Conditions of the Company’s Obligations

  	
  26

  
	
   

  	
  7.3

  	
  Conditions of Each Party’s Obligations

  	
  26

  
	
  8.

  	
  Covenants; Termination

  	
  27

  

 

ii

 

Table of Contents

(Continued)

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
   

  	
  8.1

  	
  Preparation of Consent Solicitation; Action by Written
  Consent of Stockholders

  	
  27

  
	
   

  	
  8.2

  	
  Reporting Requirements; Access to Records

  	
  27

  
	
   

  	
  8.3

  	
  Integration

  	
  27

  
	
   

  	
  8.4

  	
  Securities Laws Disclosure; Publicity

  	
  28

  
	
   

  	
  8.5

  	
  Reservation of Common Stock

  	
  28

  
	
   

  	
  8.6

  	
  Listing of Common Stock

  	
  28

  
	
   

  	
  8.7

  	
  Filings

  	
  28

  
	
   

  	
  8.8

  	
  Termination of Agreement

  	
  28

  
	
   

  	
  8.9

  	
  Procedure and Effect of No-Default Termination

  	
  29

  
	
  9.

  	
  Transfer Restrictions; Restrictive Legend

  	
  29

  
	
   

  	
  9.1

  	
  Transfer Restrictions

  	
  29

  
	
   

  	
  9.2

  	
  Unlegended Certificates

  	
  30

  
	
  10.

  	
  Registration, Transfer and Substitution of Certificates for
  Securities

  	
  30

  
	
   

  	
  10.1

  	
  Stock Register; Ownership of Securities

  	
  30

  
	
   

  	
  10.2

  	
  Replacement of Certificates

  	
  30

  
	
  11.

  	
  Definitions

  	
  30

  
	
  12.

  	
  Enforcement

  	
  34

  
	
   

  	
  12.1

  	
  Cumulative Remedies

  	
  34

  
	
   

  	
  12.2

  	
  No Implied Waiver

  	
  35

  
	
  13.

  	
  Confidentiality

  	
  35

  
	
  14.

  	
  Miscellaneous

  	
  35

  
	
   

  	
  14.1

  	
  Waivers and Amendments

  	
  35

  
	
   

  	
  14.2

  	
  Notices

  	
  35

  
	
   

  	
  14.3

  	
  Indemnification; Survival

  	
  36

  
	
   

  	
  14.4

  	
  No Waivers

  	
  37

  
	
   

  	
  14.5

  	
  Successors and Assigns

  	
  37

  
	
   

  	
  14.6

  	
  Headings

  	
  37

  
	
   

  	
  14.7

  	
  Governing Law

  	
  37

  
	
   

  	
  14.8

  	
  Fees and Expenses

  	
  37

  
	
   

  	
  14.9

  	
  Jurisdiction

  	
  38

  

 

iii

 

Table of Contents

(Continued)

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
   

  	
  14.10

  	
  Waiver of Jury Trial

  	
  38

  
	
   

  	
  14.11

  	
  Counterparts; Effectiveness

  	
  39

  
	
   

  	
  14.12

  	
  Entire Agreement

  	
  39

  
	
   

  	
  14.13

  	
  Severability

  	
  39

  
	
   

  	
  14.14

  	
  Independent Nature of Purchasers’ Obligations and Rights

  	
  39

  

 

Exhibits and Schedules

 

	
  Schedule I

  	
   

  	
  Schedule of Purchasers

  
	
   

  	
   

  	
   

  
	
  Schedule II

  	
   

  	
  Disclosure Schedule

  
	
   

  	
   

  	
   

  
	
  Exhibit A

  	
   

  	
  Certificate of Designation (Series C)

  
	
   

  	
   

  	
   

  
	
  Exhibit B

  	
   

  	
  Form of Warrant

  
	
   

  	
   

  	
   

  
	
  Exhibit C

  	
   

  	
  Amended and Restated Certificate of Designation
  (Series B)

  
	
   

  	
   

  	
   

  
	
  Exhibit D

  	
   

  	
  Second Amended and Restated Certificate of Designation
  (Series A-1)

  
	
   

  	
   

  	
   

  
	
  Exhibit E

  	
   

  	
  Charter Amendment

  
	
   

  	
   

  	
   

  
	
  Exhibit F

  	
   

  	
  Registration Rights Agreement

  

 

iv

 

SECURITIES PURCHASE AGREEMENT

 

This
SECURITIES PURCHASE AGREEMENT (this “Agreement”) is made and entered into this 9th
day of December, 2010, by and between Communication Intelligence Corporation, a
Delaware corporation (the “Company”),
Phoenix Venture Fund LLC, a Delaware limited liability company (“Phoenix”) and the
other entities and individuals listed on Schedule I hereto (Phoenix
together with such other entities and individuals, the “Purchasers” and each,
a “Purchaser”). Certain terms used and
not otherwise defined in the text of this Agreement are defined in
Section 11 hereof.

 

W I T N E S S E T H

 

WHEREAS,
the Company desires to issue and to sell to each of the Purchasers, and the
Purchasers desire to purchase, severally and not jointly, from the Company, (i) the
shares of Series C Preferred Stock set forth on the Schedule I
attached hereto in the column Number of Shares Purchased and (ii) Warrants
to purchase the number of Warrant Shares set forth on Schedule I
attached hereto in the column Number of Warrants Shares, all in accordance with
the terms and provisions of this Agreement;

 

NOW,
THEREFORE, in consideration of the foregoing and the mutual representations,
warranties and covenants herein contained, the parties hereto, intending to be
bound, hereby agree as follows:

 

1.             Authorization of Securities.  The Company has authorized the issuance of up
to 4,100,000 shares of its Series C Participating Convertible Preferred
Stock, par value $0.01 per share (“Series C Preferred Stock”),  up to 3,000,000 shares of which will be
issued and sold upon the terms and subject to the conditions of this Agreement
(the “Purchased Shares”).  The Series C Preferred Stock will be
convertible into shares of the Company’s common stock, par value $0.01 per
share (the “Common Stock”),
and will have the rights, preferences and privileges set forth in the form of
Certificate of Designation of Series C Preferred Stock attached hereto as Exhibit A
(the “Certificate of
Designation (Series C)”). 
In addition, each share of Series C Preferred Stock will be issued
with a detachable three-year warrant in the form attached hereto as Exhibit B
(each a “Warrant” and collectively,
the “Warrants”) to purchase 44.44444
shares of Common Stock at an exercise price of $0.0225 per share (the “Warrant Shares”).  The shares of Common Stock into which the Series C
Preferred Stock is convertible are sometimes referred to herein as the “Conversion Shares”
and the Purchased Shares, the Conversion Shares, the Warrants and the Warrant
Shares are sometimes referred to herein collectively as, the “Securities”.

 

2.             Sale and Purchase of the Series C
Preferred Stock and Warrants.  Upon the terms and subject to the conditions
herein contained, the Company agrees to sell to the Purchasers, and each
Purchaser agrees, severally and not jointly, to purchase from the Company, at
the Closing, the number of shares of Series C Preferred Stock set forth in
the column “Number of Shares Purchased” and Warrants to purchase the number of
Warrant Shares set forth in the column “Number of Warrant Shares”, in each
case, opposite such Purchaser’s name on Schedule I attached hereto, for
$1.00 per Purchased Share (the “Purchase Price”), which aggregate Purchase Price shall
be paid in cash, as set forth in the column “Aggregate Purchase Price” 

 

1

 

opposite each Purchaser’s name on Schedule I
attached hereto.  The Company and the
Purchasers are executing and delivering this Agreement in accordance with and
in reliance upon the exemption from securities registration afforded by Section 4(2) of
the Securities Act and Rule 506 of Regulation D promulgated thereunder.

 

3.             Closing; Payment of Purchase
Price; Use of Proceeds.

 

3.1           Closing.  Upon the terms and subject to the
satisfaction of the conditions contained in Section 7 hereof, the
closing (the “Closing”)
with respect to the transaction contemplated in Section 2 hereof
shall take place at the offices of Pillsbury Winthrop Shaw Pittman LLP,
1540 Broadway, New York, New York at 10:00 a.m. local time, or another
mutually acceptable time and location, on the date that is three (3) Business
Days after the date on which the last of the conditions precedent to Closing
set forth in Section 7 hereof have been either satisfied or waived
by the party for whose benefit such conditions precedent exist or at such other
date and time as the Company and Phoenix may agree (the “Closing Date”).  Within four (4) Business Days after the
Closing Date, the Company shall deliver to each Purchaser certificates representing
the Series C Preferred Stock and Warrants which such Purchaser is
purchasing at the Closing as set forth on Schedule I attached hereto,
registered in the name of such Purchaser, against delivery to the Company at
the Closing by such Purchaser of a wire transfer, in immediately available
funds to such account as the Company designates, in the amount of the Purchase
Price therefor.

 

3.2           Use of Proceeds.  The Company shall use the proceeds from the
sale of Purchased Shares hereunder for general corporate and working capital
purposes.

 

4.             Representations and
Warranties of the Purchasers; Register of Securities; Restrictions on Transfer. Each
Purchaser, severally as to itself and not jointly, represents and warrants to
the Company as follows:

 

4.1           Organization; Authority.  (a)  Each Purchaser that is an entity is
duly formed or organized, validly existing and in good standing under the laws
of its jurisdiction of organization or formation, and has all requisite
corporate, limited liability company, partnership or trust (as the case may be)
power and authority to enter into and deliver this Agreement and the other
Transaction Documents and instruments referred to herein to which it is a party
and to consummate the transactions contemplated hereby and thereby.

 

(b)           Each Purchaser that is an
individual has full legal right, power, authority and capacity to enter into
and deliver this Agreement and the other Transaction Documents and instruments
referred to herein to which such Purchaser is a party and to consummate the
transactions contemplated hereby and thereby.

 

4.2           Validity.  The execution, delivery and performance of
this Agreement and the other Transaction Documents and instruments referred to
herein, in each case to which such Purchaser is a party, and the consummation
by such Purchaser of the transactions contemplated hereby and thereby, have
been duly authorized by all necessary action on the part of such
Purchaser.  This Agreement and the other
Transaction Documents and instruments referred to herein to which such
Purchaser is a party have been duly executed and delivered by such 

 

2

 

Purchaser, and each such agreement constitutes a
valid and binding obligation of such Purchaser enforceable against it in
accordance with its terms, subject to general application from time to time of
bankruptcy, insolvency, fraudulent conveyance or other similar laws affecting
creditors’ rights generally and to general equitable principles.

 

4.3           Brokers.  There is no broker, investment banker,
financial advisor, finder or other person which has been retained by such
Purchaser who might be entitled to any fee or commission for which the Company
will be liable in connection with the execution of this Agreement and the consummation
of the transactions contemplated hereby.

 

4.4           Investment Representations
and Warranties.  Such
Purchaser understands that the offering and sale of the Purchased Shares and
Warrants have not been registered under the Securities Act and are being made
in reliance upon federal and state exemptions for transactions not involving a
public offering which depend upon, among other things, the bona fide nature of
the investment intent and the accuracy of Purchaser’s representations as
expressed herein.  Such Purchaser
acknowledges that, except as set forth in the Registration Rights Agreement,
the Company has no obligation to register or qualify the Purchased Shares and
Warrants for resale.

 

4.5           Acquisition for Own Account.  Such Purchaser is acquiring the Purchased
Shares and Warrants for its own account for investment and not with a view
toward distribution in a manner which would violate the Securities Act.

 

4.6           Ability to Protect Its Own
Interests and Bear Economic Risks.  Such Purchaser, by reason of its own business
and financial experience or that of its management, has the capacity to protect
its own interests in connection with the transactions contemplated by this
Agreement and the other Transaction Documents. Such Purchaser is able to bear
the economic risk of an investment in the Purchased Shares and Warrants and is
able to sustain a loss of all of its investment in the Purchased Shares and
Warrants without economic hardship if such a loss should occur.

 

4.7           Accredited Investor.  Each Purchaser is an “accredited investor” as
that term is defined in Regulation D promulgated under the Securities
Act.  Such Purchaser is not required to
be registered as a broker-dealer under Section 15 of the Exchange Act and
such Purchaser is not a broker-dealer.  Each Purchaser acknowledges
that an investment in the Purchased Shares and Warrants is speculative and
involves a high degree of risk.

 

4.8           Access to Information. Such
Purchaser has been given access to Company documents, records and other
information, and has had adequate opportunity to ask questions of, and receive
answers from, the Company’s officers, employees, accountants, and
representatives concerning the Company’s business, operations, financial
condition, assets, liabilities, and all other matters relevant to its
investment in the Purchased Shares and Warrants. The representations of the
Purchasers contained in this Agreement shall not affect the ability of the
Purchasers to rely on the representations and warranties made by the Company
pursuant to Section 5 of this Agreement.

 

3

 

4.9           Restricted Securities.

 

(a)           Such Purchaser understands
that the Securities will be characterized as “restricted securities” under the
federal securities laws inasmuch as they are being acquired from the Company in
a transaction not involving a public offering and that under such laws and
applicable regulations such Securities may be resold without registration under
the Securities Act only in certain limited circumstances.

 

(b)           Such Purchaser acknowledges
that the Securities must be held indefinitely unless subsequently registered
under the Securities Act and under applicable state securities laws or an
exemption from such registration is available.

 

(c)           Such Purchaser is aware of the
provisions of Rule 144 under the Securities Act which permit limited
resale of securities purchased in a private placement.

 

4.10         Residence.  The office or offices of such Purchaser in
which its investment decision was made, and which is its principal place of
business, in the case of a corporation, limited liability company, partnership
or other entity, or is its residence, in the case of an individual, is located
at the address or addresses of such Purchaser set forth on Schedule I
hereto.

 

5.             Representations and
Warranties by the Company. Except as set forth by the Company in a
written Disclosure Schedule provided by the Company to the Purchasers dated the
date hereof (the “Disclosure
Schedule”), the Company represents and warrants to each
Purchaser that the statements contained in this Section 5 are complete and
accurate as of the date of this Agreement and as of the Closing Date. The
Disclosure Schedule shall be arranged in sections corresponding to the numbered
and lettered sections and subsections contained in this Section 5, and the
disclosures in any section or subsection of the Disclosure Schedule shall
qualify other sections and subsections in this Section 5 only to the
extent it is readily apparent from a reasonable reading of the disclosure that
such disclosure is applicable to such other sections and subsections.

 

5.1           Capitalization.

 

(a)           As of the date hereof, the
authorized capital stock of the Company consists of 519,000,000 shares of
Common Stock, par value $0.01 per share, and 16,000,000 shares of preferred
stock, par value $0.01 per share, of which 2,000,000 shares are designated Series A-1
Preferred Stock and 14,000,000 shares are designated Series B Preferred
Stock. As of the date hereof, the Company has 192,418,565 issued shares of Common
Stock, of which no shares are held by the Company as treasury shares and
192,418,565 are outstanding; 797,235 shares of Series A-1 Preferred Stock
are outstanding; 8,174,510 shares of Series B Preferred Stock are
outstanding; 4,000,000 shares of Common Stock are reserved for issuance under
the Company’s 1999 Stock Option Plan, under which 2,183,368 shares are subject
to outstanding options and no further grants will be made; 7,000,000 shares of
Common Stock are reserved for issuance under the Company’s 2009 Stock
Compensation Plan, under which 3,828,415 shares are subject to outstanding
awards and 3,098,600 shares are available for grant; 4,129,443 shares are
subject to outstanding non-plan options and 31,974,283 shares of Common 

 

4

 

Stock are reserved for
issuance upon the exercise of warrants and other convertible securities
outstanding on the date hereof. As of the date hereof the Company has no other
shares of capital stock authorized, issued, outstanding or reserved.  A capitalization table presenting the
capitalization of the Company as of the date hereof is set forth on Schedule
5.1(a) hereto.

 

(b)           After giving effect to the
filing of the Charter Amendment and the Certificate of Designation (Series C)
with the Secretary of State of the State of Delaware, the authorized capital
stock of the Company will consist of 1,050,000,000 shares of Common Stock, par
value $0.01 per share, and 24,500,000 shares of preferred stock, par value
$0.01 per share, of which 2,000,000 shares are designated Series A-1
Preferred Stock, 14,000,000 shares are designated Series B Preferred Stock
and 4,100,000 are designated Series C Preferred Stock.

 

(c)           As of the date hereof, other
than as set forth in Section 5.1(a), except as set forth on Schedule
5.1(c), (i) there are no outstanding options, warrants, scrip, rights
to subscribe to, calls or commitments of any character whatsoever relating to,
or securities or rights convertible into or exercisable or exchangeable for,
any shares of capital stock of the Company, or arrangements by which the
Company is or may become bound to issue additional shares of capital stock, nor
are any such issuances or arrangements contemplated; (ii) there are no
agreements or arrangements under which the Company is or may become obligated
to register the sale of any of its securities under the Securities Act;
(iii) the Company has no obligation (contingent or otherwise) to purchase,
redeem or otherwise acquire any of its equity securities or any interests
therein or to pay any dividend or make any distribution in respect thereof; and
(iv) the Company has not reserved any shares of capital stock for issuance
pursuant to any stock option plan or similar arrangement.

 

(d)           There have been no
adjustments to the exercise price or the conversion price of any options,
warrants or other securities convertible into or exchangeable for shares of
Common Stock, including Series A-1 Preferred Stock and Series B
Preferred Stock.  Except as set forth on Schedule
5.1(d), the execution and delivery of this Agreement and the consummation
of the transactions contemplated hereby and thereby will not trigger any
conversion or exercise price adjustments or any other anti-dilution rights or
provisions relating to any shares of capital stock of the Company or any
securities or rights convertible into or exercisable or exchangeable for shares
of capital stock of the Company.

 

5.2           Due Issuance and
Authorization of Capital Stock.  All of the shares of capital stock of the
Company outstanding on the date hereof have been validly issued and are fully
paid and non-assessable.  On the Closing
Date, the sale and delivery of the Purchased Shares, when issued, sold and
delivered in accordance with the terms hereof, and the issuance and/or delivery
of the Conversion Shares upon conversion of the Purchased Shares in accordance
with the terms of the Certificate of Designation (Series C), and the
issuance and/or delivery of the Warrants and the Warrant Shares upon exercise
of the Warrants in accordance with their terms will be duly authorized, validly
issued, fully paid and non-assessable, and free from all taxes and will vest in
the holders thereof legal and valid title to such Purchased Shares, 

 

5

 

Conversion Shares, the Warrants or Warrant Shares,
as the case may be, free and clear of any lien, claim, judgment, charge,
mortgage, security interest, pledge, escrow, equity or other encumbrance
(collectively, “Encumbrances”),
and will not be subject to preemptive rights or other similar rights of
stockholders of the Company, and the issuance of such shares will not impose
personal liability upon the holder thereof. 
Following the filing of the Charter Amendment with the Secretary of
State of the State of Delaware, a sufficient number of authorized shares of
Common Stock have been reserved for issuance upon conversion of all of the
Purchased Shares and exercise of all of the Warrants.

 

5.3           Organization. The Company
and each of its Subsidiaries (a) is duly incorporated or otherwise
organized, validly existing and in good standing under the laws of the
jurisdiction of its formation, (b) is duly qualified to do business as a
foreign entity and is in good standing in each jurisdiction where the nature of
the property owned or leased by it or the nature of the business conducted by
it makes such qualification necessary, except where the failure to be so
qualified would not have a Material Adverse Effect, and (c) has all
requisite corporate power and authority to own or lease and operate its assets
and carry on its business as presently being conducted. The Company has its
principal place of business and chief executive office in Redwood Shores,
California.

 

5.4           Subsidiaries.  All of the direct and indirect Subsidiaries
of the Company are set forth on Schedule 5.4.  Except as set forth on Schedule 5.4,
the Company owns, directly or indirectly, all of the capital stock or
comparable equity interests of each Subsidiary free and clear of any
Encumbrances, and all of the issued and outstanding shares of capital stock or
comparable equity interests of each Subsidiary are validly issued and are fully
paid, non-assessable and free of preemptive and similar rights to subscribe for
or purchase securities.

 

5.5           Consents.  Except as set forth on Schedule 5.5,
neither the execution, delivery or performance of this Agreement, the
Certificate of Designation (Series C), the Amended and Restated
Certificate of Designation (Series B), the Second Amended and Restated
Certificate of Designation (Series A-1), the Charter Amendment, the
Warrants or the other Transaction Documents by the Company, nor the
consummation by it of the obligations and transactions contemplated hereby or
thereby (including, without limitation, the issuance, the reservation for
issuance and the delivery of the Series C Preferred Stock, the issuance
and delivery of the Conversion Shares or the issuance and delivery of the
Warrants and the Warrant Shares) requires any consent of, authorization by,
exemption from, filing with or notice to any Governmental Entity or any other
Person, other than (a) approval by the Company’s stockholders of the
Charter Amendment, the approval of the holders of Series B Preferred
Stock, voting as a separate class, of the Amended and Restated Certificate of
Designation (Series B) and the approval of the holders of Series A-1
Preferred Stock, voting as a separate class, of the Second Amended and Restated
Certificate of Designation (Series A-1), (b) the filing of the
Charter Amendment, the Certificate of Designation (Series C), the Amended
and Restated Certificate of Designation (Series B) and the Second Amended
and Restated Certificate of Designation (Series A-1) with the Secretary of
State of the State of Delaware, (c) the filings required to comply with
the Company’s registration obligations under the Registration Rights Agreement
and (d) filings required under applicable U.S. federal and state
securities laws.

 

6

 

5.6           Power and Authorization.  The Company has all requisite corporate power
and has taken all necessary corporate action required for the due
authorization, execution, delivery and performance by the Company of this
Agreement, the Certificate of Designation (Series C), the Amended and
Restated Certificate of Designation (Series B), the Second Amended and
Restated Certificate of Designation (Series A-1), the Charter Amendment,
the Warrants and the other Transaction Documents and the consummation of the
transactions contemplated hereby and thereby (including, without limitation,
the issuance of the Series C Preferred Stock, the Conversion Shares, the
Warrants and the Warrant Shares, and the provision to the Purchasers of the
rights contemplated by the Transaction Documents) and no action on the part of
the stockholders of the Company is required other than approval by the
stockholders of the Charter Amendment and approval by the holders of Series B
Preferred Stock, voting as a separate class, of the Amended and Restated
Certificate of Designation (Series B) and by the holders of Series A-1
Preferred Stock, voting as a separate class, of the Second Amended and Restated
Certificate of Designation (Series A-1). 
The execution, delivery and performance by the Company of this
Agreement, the Warrants and each of the other Transaction Documents, the
execution and filing of the Charter Amendment, the Certificate of Designation (Series C),
the Amended and Restated Certificate of Designation (Series B) and the
Second Amended and Restated Certificate of Designation (Series A-1), and
the consummation by the Company of the transactions contemplated hereby and
thereby, have been duly authorized by all necessary corporate action on the
part of the Company.

 

5.7           Enforcement.  This Agreement has been duly executed and
delivered by the Company, and the Certificate of Designation (Series C),
the Amended and Restated Certificate of Designation (Series B), the Second
Amended and Restated Certificate of Designation (Series A-1), the Charter
Amendment, the Warrants and the other Transaction Documents and instruments
referred to herein to which the Company is a party will be duly executed and
delivered by the Company, and each such agreement constitutes or will
constitute a valid and binding obligation of the Company enforceable against it
in accordance with its terms, subject to general application from time to time
of bankruptcy, insolvency, fraudulent conveyance or other similar laws
affecting creditors’ rights generally and to general equitable principles.

 

5.8           No Conflicts.  The execution, delivery and performance of
each of this Agreement, the Warrants, the other Transaction Documents, the
Certificate of Designation (Series C), the Amended and Restated
Certificate of Designation (Series B), the Second Amended and Restated
Certificate of Designation (Series A-1) and the Charter Amendment, and the
consummation of the transactions contemplated hereby and thereby (including,
without limitation, the issuance and reservation for issuance, as applicable,
of the Purchased Shares, the Series C Preferred Stock, the Conversion
Shares, the Warrants and the Warrant Shares) will not (a) result in a
violation of the Certificate of Incorporation and By-laws of the Company (the “Charter Documents”)
or the certificates of formation, operating agreements, articles or
certificates of incorporation, by-laws or comparable organization documents of
its Subsidiaries, (b) conflict with or result in the breach of the terms,
conditions or provisions of or constitute a default (or an event which with
notice or lapse of time or both would become a default) under, or give rise to
any right of termination, acceleration or cancellation under, any Material
Contract, (c) result in a material violation of any law, rule, regulation,
order, judgment or decree (including, without limitation, U.S. federal and
state securities laws and regulations) applicable 

 

7

 

to the Company or any Subsidiary or by which any
property or asset of the Company or any Subsidiary is bound or affected,
(d) result in a material violation of any rule or regulation of FINRA
or its Trading Markets, or (e) result in the creation of any Encumbrance
upon any of the Company’s or any Subsidiary’s assets.  The Company is not in violation of the
Charter Documents.  The business of the
Company and each of its Subsidiaries is not being conducted in violation in any
material respect of any law, ordinance or regulation of any Governmental
Entity.

 

5.9           Material Contracts.  Each Material Contract of the Company or any
Subsidiary is listed on Schedule 5.9 hereof.  Each Material Contract is the legal, valid
and binding obligation of the Company or such Subsidiary, as the case may be,
enforceable against the Company or such Subsidiary, as the case may be, in
accordance with its terms, except to the extent that enforceability may be
limited by bankruptcy, insolvency, fraudulent conveyance or other similar laws
affecting creditors’ rights generally and by general equitable principles.  There has not occurred any breach, violation
or default or any event that, with the lapse of time, the giving of notice or
the election of any Person, or any combination thereof, would constitute a
breach, violation or default by the Company under, or give others any rights of
termination, amendment, acceleration or cancellation of, any such Material
Contract.  To the knowledge of the
Company, there has not occurred any breach, violation or default or any event
that, with the lapse of time, the giving of notice or any combination thereof,
would constitute a breach, violation or default by any other Person under any
such Material Contract.  The Company has
not been notified that any party to any Material Contract intends to cancel,
terminate, not renew or exercise an option under any Material Contract, whether
in connection with the transactions contemplated hereby or otherwise.

 

5.10         Right of First Refusal;
Stockholders Agreement; Voting and Registration Rights.  Except as set forth on Schedule 5.10,
no party has any right of first refusal, right of first offer, right of
co-sale, preemptive right or other similar right regarding the securities of
the Company.  Except as set forth on Schedule
5.10, there are no provisions in the Charter Documents or any Material
Contracts, which (a) may affect or restrict the voting rights of any
Purchaser with respect to the Securities in its capacity as a stockholder of
the Company, (b) restrict the ability of any Purchaser, or any successor
thereto or assignee or transferee thereof, to transfer the Securities,
(c) would adversely affect the Company’s or any Purchaser’s right or
ability to consummate the transactions contemplated by this Agreement (or
comply with the terms of the other Transaction Documents, the Certificate of
Designation (Series C) or the Warrants) and the transactions contemplated
hereby or thereby, (d) require the vote of more than a majority of the
Company’s issued and outstanding Common Stock, voting together as a single
class, to take or prevent any corporate action, other than those matters
requiring a different vote under Delaware law or under the terms of the Charter
Documents, or (e) entitle any party to nominate or elect any director of
the Company or require any of the Company’s stockholders to vote for any such
nominee or other person as a director of the Company.

 

5.11         Previous Issuances.  All shares of capital stock and other
securities issued by the Company prior to the Closing Date have been issued in
transactions registered under or exempt from the registration requirements
under the Securities Act and all applicable state securities or “blue sky”
laws, and in compliance with all applicable corporate laws.  The Company has not violated the Securities
Act or any applicable state securities or “blue sky” laws in connection with
the issuance of any shares of capital stock or other securities prior to the 

 

8

 

Closing Date. 
No Person has any rescission rights with respect to any shares of
capital stock of the Company.

 

5.12         No Integrated Offering.  Neither the Company, nor any of its
Affiliates or any other Person acting on the Company’s behalf, has directly or
indirectly engaged in any form of general solicitation or general advertising
with respect to the Securities nor have any of such Persons made any offers or
sales of any security of the Company or its Affiliates or solicited any offers
to buy any security of the Company or its Affiliates under circumstances that
would require registration of the Series C Preferred Stock, the Purchased
Shares, the Conversion Shares, the Warrants or the Warrant Shares under the
Securities Act or cause this offering of Purchased Shares and Warrants to be
integrated with any prior offering of securities of the Company for purposes of
the Securities Act or any applicable shareholder approval provisions of any
Trading Market on which any of the securities of the Company are listed or
designated.

 

5.13         SEC Reports; Financial
Statements.

 

(a)           The Company has filed all
reports, schedules, forms, statements and other documents required to be filed
by the Company under the Securities Act and the Exchange Act, including
pursuant to Section 13(a) or 15(d) thereof, since
January 1, 2008 (the foregoing materials, including the exhibits thereto
and documents incorporated by reference therein, being collectively referred to
herein as the “SEC
Reports”) on a timely basis or has received a valid extension of
such time of filing and has filed any such SEC Reports prior to the expiration
of any such extension.  As of their
respective dates, the SEC Reports complied as to form in all material respects
with the requirements of the Securities Act and the Exchange Act, as
applicable, and none of the SEC Reports, when filed, contained any untrue
statement of a material fact or omitted to state a material fact required to be
stated therein or necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not misleading.  All Material Contracts to which the Company
or any Subsidiary is a party or to which the property or assets of the Company
or any Subsidiary are subject that are required to be included as part of or
specifically identified in the SEC Reports are so included or specifically
identified.

 

(b)           The financial statements of
the Company and its Subsidiaries included in the SEC Reports comply in all
material respects with applicable accounting requirements and the rules and
regulations of the SEC and PCAOB with respect thereto as in effect at the time
of filing.  Such financial statements
have been prepared in accordance with GAAP, except for unaudited financial
statements that may not contain all footnotes required by GAAP, are true and
correct in all material respects and fairly present the financial position of
the Company and its consolidated subsidiaries as of and for the dates thereof
and the results of operations and cash flows for the periods then ended,
subject, in the case of unaudited statements, to normal, immaterial, year-end
audit adjustments.

 

5.14         No Undisclosed Material
Liabilities.  As of the
date of this Agreement, there are no liabilities of the Company or any
Subsidiary, of any kind whatsoever, whether

 

9

 

interest-bearing indebtedness, or liabilities
accrued, contingent, absolute, determined, determinable or otherwise, other
than liabilities:

 

(a)           reflected in the financial
statements included in the Company’s Annual Report on Form 10-K for the
year ended December 31, 2009 and the Company’s Quarterly Report on Form 10-Q
for the quarters ended March 31, 2010, June 30, 2010 and September 30,
2010;

 

(b)           incurred since September 30,
2010 in the ordinary course of business consistent with past practice, which are
not in excess of $25,000 individually or $250,000 in the aggregate;

 

(c)           created under, or incurred
in connection with, this Agreement, the other Transaction Documents, the
Certificate of Designation (Series C), the Amended and Restated
Certificate of Designation (Series B) or the Second Amended and Restated
Certificate of Designation (Series A-1).

 

5.15         Litigation.  Except as set forth on Schedule 5.15,
there is no action, suit, investigation or other proceeding pending against, or
to the knowledge of the Company, threatened against or affecting, the Company
or any of its Subsidiaries or any of their properties or to the knowledge of
the Company any of its or their officers or directors before any court or
arbitrator or any Governmental Entity. 
To the knowledge of the Company, there are no facts that would cause a
reasonable person to believe that such a proceeding would likely result.

 

5.16         Taxes.  The Company and each of its Subsidiaries has
properly filed all federal, foreign, state, local, and other tax returns and
reports which are required to be filed, which returns and reports were properly
completed and are true and correct in all respects, and all taxes, interest,
and penalties due and owing have been timely paid.  There are no outstanding waivers or
extensions of time with respect to the period for assessing or auditing any tax
or tax return of the Company or any Subsidiary, or claims now pending or
matters under discussion between the Company or any Subsidiary and any taxing
authority in respect of any tax of the Company or any Subsidiary.

 

5.17         Employee Matters.

 

(a)           The Company has listed on Schedule
5.17(a) any “employee benefit plan” subject to the Employee Retirement
Income Security Act of 1974, as amended (“ERISA”), that it or any Subsidiary maintains.

 

(b)           No director or officer or
other employee of the Company or any Subsidiary will become entitled to any
retirement, severance or similar benefit or enhanced or accelerated benefit
(including any acceleration of vesting) or lapse of repurchase rights or
obligations with respect to any employee benefit plan subject to ERISA or other
benefit under any compensation plan or arrangement of the Company or any
Subsidiary (each, an “Employee
Benefit Plan”)) solely as a result of the transactions contemplated
in this Agreement; and no payment made or to be made to any current or former
employee or director of the Company or any of its Affiliates by reason of the
transactions contemplated hereby (whether alone or in connection with any other
event, 

 

10

 

including, but not limited
to, a termination of employment) will constitute an “excess parachute payment”
within the meaning of Section 280G of the Code.

 

(c)           No employee is, or is now
expected to be, in violation of any term of any employment contract,
confidentiality, disclosure or proprietary information agreement or
non-competition agreement, or any other contract or agreement or any
restrictive covenant, and the continued employment of each employee does not
subject the Company or any of its Subsidiaries to any liability with respect to
any of the foregoing.

 

(d)           The Company and each of its
Subsidiaries are in substantial compliance with all applicable federal, state,
local and foreign statutes, laws (including, without limitation, common law),
judicial decisions, regulations, ordinances, rules, judgments, orders and codes
respecting employment, employment practices, labor, terms and conditions of
employment and wages and hours, and no work stoppage or labor strike
against the Company or any Subsidiary is pending or, to their knowledge,
threatened, nor is the Company or any Subsidiary involved in or, to their
knowledge, threatened with any labor dispute, grievance or litigation relating
to labor matters involving any employees of the Company or any Subsidiary. To
the Company’s knowledge, there are no suits, actions, disputes, claims (other
than routine claims for benefits), investigations or audits pending or, to the
knowledge of the Company, threatened in connection with any Employee Benefit
Plan.

 

5.18         Compliance with Laws.  The Company and each of its Subsidiaries have
been and are in compliance in all material respects with the terms of all
franchises, permits, licenses and other rights and privileges necessary to
conduct the Company’s and each of its Subsidiaries’ present and proposed
business and is in compliance with and have not violated, in any respect, any
applicable provisions of any laws, statutes, ordinances or regulations material
to its respective business or the terms of any judgments, orders, decrees,
injunctions or writs.

 

5.19         Brokers.  Except as set forth on Schedule 5.19,
there is no investment banker, broker, finder, financial advisor or other
person who has been retained by or is authorized to act on behalf of the
Company who is entitled to any fee or commission in connection with the
transactions contemplated by this Agreement.

 

5.20         Environmental Matters.

 

(a)           (i) No written notice,
notification, demand, request for information, citation, summons, complaint or
order has been received by, and no investigation, action, claim, suit,
proceeding or review is pending or, to the knowledge of the Company, threatened
by any Person against the Company or any of its Subsidiaries and no penalty has
been assessed against the Company or any of its Subsidiaries, in each case,
with respect to any matters relating to or arising out of any Environmental
Law; (ii) the Company and each of its Subsidiaries are in substantial
compliance with all applicable Environmental Laws; and (iii) to the
knowledge of the Company, there are no liabilities of or relating to the
Company or any of its Subsidiaries relating to or arising out of any 

 

11

 

Environmental Law, and there
is no existing condition, situation or set of circumstances which could
reasonably be expected to result in a such a liability.

 

(b)           For purposes of this
Agreement, the term “Environmental
Laws” means federal, state, local and foreign statutes, laws,
binding judicial decisions, regulations, ordinances, rules, binding judgments,
binding orders, codes, binding injunctions and permits relating to human health
and the environment, including, but not limited to, Hazardous Materials; and
the term “Hazardous
Material” means all substances or materials regulated as
hazardous, toxic, explosive, dangerous, flammable or radioactive under any
Environmental Law including, but not limited to: (i) petroleum, asbestos,
or polychlorinated biphenyls and (ii) in the United States, all substances
defined as Hazardous Substances, Oils, Pollutants or Contaminants in the
National Oil and Hazardous Substances Pollution Contingency Plan.

 

5.21         Intellectual Property
Matters.

 

(a)           “Intellectual Property”
means any and all of the following arising under the laws of the United States,
any other jurisdiction or any treaty regime: (i) all inventions (whether
patentable or unpatentable and whether or not reduced to practice), all
improvements thereon, and all patents, patent applications and patent
disclosures and all reissuances, continuations, continuations-in-part,
divisionals, revisions, extensions and reexaminations thereof, (ii) all
trademarks, service marks, trade dress, logos, trade names and corporate names
and all translations, adaptations, derivations and combinations thereof and
including all goodwill associated therewith, and all applications,
registrations and renewals in connection therewith (collectively, “Trademarks”), (iii) all
copyrightable works, mask works or moral rights, all copyrights and all
applications, registrations and renewals in connection therewith, (iv) all
trade secrets and confidential business information (including, without
limitation, ideas, research and development, know-how, formulas, compositions, manufacturing
and production processes and techniques, technical data, designs, drawings,
specifications, customer and supplier lists, pricing and cost information and
business and marketing plans and proposals), (v) all computer software,
including, without limitation, all
software implementations of algorithms, models and methodologies, whether in
source code or object code, all databases and compilations, including any and
all data and collections of data, whether machine readable or otherwise, all
descriptions, schematics, flow-charts and other work product used to design,
plan, organize and develop any of the foregoing, and all documentation,
including user manuals and training materials, relating to any of the foregoing
(“Software”), (vi) all
other proprietary rights, (vii) all copies and tangible embodiments of the
foregoing (in whatever form or medium) and (viii) all licenses or
agreements in connection with the foregoing. 
“Company
Intellectual Property” means all Intellectual Property which is
used or usable in the business of the Company or any of its Subsidiaries.

 

(b)           Without limiting the scope
of the Company Intellectual Property, Schedule 5.21(b) sets forth
each item of Company Intellectual Property. 
With respect to each item of Company Intellectual Property:

 

12

 

(1)           the Company or a Subsidiary
possesses all rights, titles and interests in and to the item if owned by the
Company or a Subsidiary, free and clear of any Encumbrance, license or other restriction,
and uses and contemplates using such item, in the case of a licensed item, in
the manner in which it is entitled to use such item under the applicable
license agreement, and the Company has taken or caused to be taken commercially
reasonable and prudent steps for a company of like resources and business to
protect its rights in and to the item;

 

(2)           the item, if owned by the
Company or a Subsidiary, is not, and if licensed, to the knowledge of the
Company is not, subject to any outstanding injunction, judgment, order, decree,
ruling or charge;

 

(3)           no action, suit, proceeding,
hearing, investigation, charge, complaint, claim or demand is pending or, to
the knowledge of the Company, has been or is being threatened which challenges
the validity, enforceability, registrability, use or ownership of the item;

 

(4)           the Company or a Subsidiary
has sufficient right, title and interest to use or own the item without
infringement upon or misappropriation of any valid and enforceable Intellectual
Property right or other right of any third party;

 

(5)           other than customary
contractual obligations to indemnify customers in connection with an allegation
of infringement made by a third party, neither the Company nor any of its
Subsidiaries has agreed to indemnify any person for or against any
interference, infringement or misappropriation;

 

(6)           to the knowledge of the
Company, no third party has interfered with, infringed upon, misappropriated or
otherwise come into conflict with the Company Intellectual Property and, except as set forth in Schedule
5.21(b)(6), no claim or litigation has been brought or threatened against any
third party by or on behalf of the Company or any Subsidiary asserting
interference with, infringement of, or misappropriation of Company Intellectual
Property or breach of any license or agreement involving the Company
Intellectual Property;

 

(7)           neither the Company nor any
Subsidiary is party to any option, license, sublicense or agreement covering
the item that it is in breach or default thereunder, and no event has occurred
which, with notice or lapse of time, would constitute a breach or default or
permit termination, modification or acceleration thereunder;

 

(8)           each option, license,
sublicense or agreement covering the item is valid, binding and enforceable
against the Company or its Subsidiary, as the case may be;

 

(9)           that is a registered or
applied for patent, copyright, trademark, or service mark in the United States
or any other jurisdiction, such 

 

13

 

item, to the knowledge of
the Company, is valid, enforceable and subsisting and is not subject to any
claims, Encumbrances, taxes or other fees except for periodic filing, annuity
and maintenance fees; and

 

(10)         the Company has not entered into any agreement
granting any third party the right to bring infringement actions with respect
to, or otherwise to enforce rights with respect to, the item.

 

(c)           Except as set forth on Schedule
5.21(c), the Company, each of its Subsidiaries, and their respective
products and services have not, to the knowledge of the Company, infringed
upon, misappropriated or otherwise come into conflict with any valid and
enforceable Intellectual Property rights of third parties or violated any
license or agreement with respect to Intellectual Property rights of a third
party. There is no pending or, to the knowledge of the Company, threatened
claim or litigation against the Company, any Subsidiary, or any of their
respective products and services contesting the right to use any third party’s
Intellectual Property rights, asserting the infringement, misuse,
misappropriation, or other violation of any third party’s Intellectual Property
rights, asserting violation of any license or agreement with respect to a third
party’s Intellectual Property rights, or asserting unfair competition or trade practices. The Company has not received written, or to
the knowledge of the Company, non-written notice from any third party (i) that
the Company, any Subsidiaries, or any of their respective
products and services infringes, misuses, misappropriates or otherwise violates the
Intellectual Property of any third party, (ii) that the Company or a
Subsidiary requires a license to any third party Intellectual Property rights
to conduct its business as currently conducted or as it is intended to be
conducted, or (iii) of an unsolicited offer to license any Intellectual
Property rights of a third party. To
the knowledge of the Company, there are no facts or circumstances that would
reasonably lead it to believe that the activities or the conduct of the
business or operations of the Company or any Subsidiary did prior to Closing,
or will when conducted in the same manner following the Closing, infringe upon,
violate or constitute the unauthorized use of the Intellectual Property rights
of any third party.

 

(d)           All domain names owned by
the Company or its Subsidiaries or used in the business of the Company and its
Subsidiaries (the “Domain
Names”) have been and are duly registered with Network Solutions
and GoDaddy.com (together, the “Registrars”) through the Registrars’ registration
procedures, and are operating, accessible domain names. The registration of each such Domain Name is
free and clear of all Encumbrances and is in full force and effect. The Company
has paid all fees required to maintain each Domain Name registration. The Company or
a Subsidiary owns all, and has not waived, forfeited or granted to any third
parties any, rights, title or interest in or to the Domain Names including,
without limitation, any benefits, entitlements or rights of renewal with
respect to the Domain Names.  None of the
Domain Names have been placed on “hold” or are otherwise subject to a dispute
or potential dispute. Neither the Company nor any of its Subsidiaries has received written
notice of any claim asserted against the Company or any of its Subsidiaries
adverse to its rights to such Domain Names.

 

14

 

(e)           The Company or a Subsidiary is the exclusive owner
of all Trademarks used in connection with the operation or conduct of the
business of the Company and its Subsidiaries. All Trademarks of the Company and
its Subsidiaries which are used in any way in connection with the conduct of
the Company’s business have been in continuous use by the Company or a
Subsidiary. There has been no prior use of any such Trademarks or other action
taken by any third party that would confer upon said third party superior
rights in such Trademarks, the Company has taken all necessary steps to protect
the Trademarks against infringement and the registered Trademarks have been
continuously used in the form appearing in, and in connection with the goods
and services listed in their respective registration certificates or identified
in their respective pending applications.

 

(f)            None of the key employees of
the Company or any Subsidiary are obligated under any contract (including,
without limitation, licenses, covenants, or commitments of any nature) or other
agreement, or subject to any judgment, decree, or order of any court or
administrative agency, that would interfere with the use of his or her
reasonable diligence to promote the interests of the Company or any Subsidiary
or that would conflict with the Company’s or any Subsidiary’s businesses as
presently conducted or as proposed to be conducted. Neither the execution,
delivery or performance of this Agreement or the other Transaction Documents,
nor the carrying on of the businesses of the Company or any Subsidiary by the
employees of the Company and its Subsidiaries, nor the conduct of the Company’s
businesses as presently conducted or as proposed to be conducted, will conflict
with or result in a breach of the terms, conditions or provisions of, or
constitute a default under, any contract, covenant, or instrument under which
any such key employee is obligated.

 

(g)           The Company has entered into
confidentiality and proprietary information and assignment of inventions and
other Intellectual Property agreements with each of the current and former
employees, consultants, and independent contractors of the Company and its
Subsidiaries, that, among other things, protect the confidentiality of all
Company Intellectual Property and ensure full and unencumbered ownership by the
Company or a Subsidiary of all Company Intellectual Property. The Company is
not aware of any violation by any such employees of such agreements.

 

(h)           No current or former
stockholder, member, director, officer or employee of the Company or any
Subsidiary has any interest, right, title or interest in any of the Company
Intellectual Property.

 

(i)            The Company and each of its Subsidiaries have taken
all necessary steps to protect the respective rights in confidential
information and trade secrets used in connection with the conduct of the
Company’s or any Subsidiary’s business. Without limiting the foregoing, the
Company and each of its Subsidiaries have enforced a policy of requiring each
employee, consultant, contractor and third party to which they disclose
confidential information or trade secrets to execute agreements restricting
disclosure and use of such confidential information and trade secrets that are
substantially consistent with the Company’s standard forms thereof. Except
under valid and binding confidentiality obligations, there has been no
disclosure of any confidential information 

 

15

 

or trade secrets used in connection with the
conduct of the Company’s or any Subsidiary’s business. Except as set forth in Schedule
5.21(i), neither the
Company or a Subsidiary has provided, nor is obligated in any circumstance to
provide, source code to any Company Intellectual Property to any third party.

 

(j)            The Company Intellectual
Property comprises all Intellectual Property necessary to the business of the
Company and each of its Subsidiaries as presently conducted or proposed to be
conducted.  It is not necessary for the
Company or any Subsidiary to utilize any inventions, trade secrets or
proprietary information of any of its employees made prior to their employment
by the Company or a Subsidiary, except for valid and enforceable inventions,
trade secrets or proprietary information that have been assigned to the Company
or a Subsidiary.

 

(k)           The Company and each of its
Subsidiaries are not subject to any “open source” or “copyleft” obligations and
are not subject to
any agreement or distribution model that: (i) involves
distribution, making generally available of, or making any public disclosure
of, any source code either used or developed by the Company or any Subsidiary, (ii) prohibits or limits charging a
fee or receiving consideration in connection with licensing or distributing any
Company product, (iii) except as specifically permitted by law, grants any
right to, or otherwise allows, any third party to decompile, disassemble or
otherwise reverse-engineer any Company product, or (iv) requires the
licensing of any Company product for the purpose of making derivative works.

 

(l)            All Software, hardware, and
technology used by the Company and each of its Subsidiaries perform in
substantial compliance with all applicable specifications.

 

(m)          Any Software used by the Company or any Subsidiary was either (i) developed
by employees of the Company or a Subsidiary within the scope of their
employment; (ii) developed by consultants or independent contractors who
have assigned their rights to the Company or a Subsidiary pursuant to written
agreements; or (iii) otherwise acquired by the Company or a Subsidiary
from a third party pursuant to a valid written agreement with the third party.
The Software used by the Company or any Subsidiary does not contain any
programming code, documentation or other materials or development environments
that embody Intellectual Property rights of any third party, except for such
materials or development environments obtained by the Company or a Subsidiary
from third parties who make such materials or development environments
generally available on non-discriminatory commercial terms.

 

(n)           Neither the
Company nor any Subsidiary is now or ever was a member or promoter of, or
a contributor to, or otherwise participated in any industry standards
bodies or similar organizations that could compel the Company or any Subsidiary
to grant or offer to any third party any license or right to Company
Intellectual Property, to disclose any Company Intellectual Property to any
third party, or to restrict the Company’s enforcement of Company Intellectual
Property, provided that the mere act of
implementing a standard shall not be deemed to cause the Company or any
Subsidiary 

 

16

 

to
be considered a member, promoter, contributor or participant in a standards
body or similar organization.  To
the extent the Company or any Subsidiary is now or ever was a member, promoter,
contributor, or participant in any industry standards body or similar organization,
the Company and such Subsidiary have complied at all times with any policies of
such industry standards body or similar organization, including without
limitation any policies regarding the identification and disclosure of
intellectual property. Schedule 5.21(n) sets forth a complete and
accurate list of any standards bodies or similar organizations in which the
Company or any Subsidiary has ever been a member, promoter, contributor or
participant.

 

(o)           No funding or facilities of a government, university, college, or other
educational institution or research center was used in the creation or
development of the Company Intellectual Property. To the knowledge of the
Company, no current or former employee, consultant or independent contractor,
who was involved in, or who contributed to, the creation or development of any
Company Intellectual Property, performed services for any government,
university, college, or other educational institution or research center,
during a period of time during which such employee, consultant or independent
contractor was also performing services used in the creation or development of
the Company Intellectual Property. Neither the Company nor any of its
Subsidiaries are party to any contract, license or agreement with any
government that grants to such government any right or license with respect to
the Company Intellectual Property, other than as granted in the ordinary course
of business pursuant to a non-exclusive license to any Company product.

 

(p)           The Company and each of its
Subsidiaries maintain rules, policies and procedures regarding data security,
privacy, collection and use of personal
information and user information, and data use that are
commercially reasonable and, in any event, comply with the Company’s or such
Subsidiary’s obligations to its customers and applicable laws, rules and
regulations. To the knowledge of the Company, there have not been, and the
transaction contemplated under this Agreement will not result in, any security
breaches of any security policy, data use restriction or privacy breach under
any such policies or any applicable laws, rules or regulations. No claims have been asserted or, to the knowledge of the Company,
threatened against the Company or any Subsidiary by any person alleging a
violation of such person’s privacy, personal or confidentiality rights under
any applicable rules, policies or procedures.

 

(q)           No event has occurred, and
no circumstance or condition exists, that has resulted or would result in
the delivery, license, or disclosure of the source code for any Company
Software to any other Person pursuant to any source code escrow arrangement.  The Company and each of its Subsidiaries have
at all times been in compliance with the obligations and conditions of any
source code escrow agreement.

 

5.22         Related-Party Transactions.  No stockholder who beneficially owns 5% or
more (on a fully-diluted basis) of any class of equity securities, officer or
director of the Company or any Subsidiary or member of his or her immediate
family is currently indebted to the Company or any Subsidiary, nor is the
Company or any Subsidiary indebted (or committed to make loans or extend or
guarantee credit) to any of such Person. 
Except as set forth on Schedule 

 

17

 

5.22 hereto, as of the date
hereof, no stockholder who beneficially owns 5% or more (on a fully-diluted
basis) of any class of equity securities, officer or director of the Company
and no member of the immediate family of any stockholder who beneficially owns
5% or more (on a fully-diluted basis) of any class of equity securities,
officer or director of the Company is directly or indirectly interested in any
contract with the Company or any of its Subsidiaries.

 

5.23         Title to Property and Assets.  Neither the Company nor any Subsidiary owns
any real property.  The Company and each
of its Subsidiaries own or have legally enforceable rights to use or hold for
use their personal property and assets free and clear of all Encumbrances
except liens for taxes not yet due and payable, purchase-money security
interests entered into in the ordinary course of business and such other Encumbrances,
if any, that individually or in the aggregate, do not and would not detract
from the value of any asset or property of the Company and its Subsidiaries.
With respect to any real property, neither the Company nor any Subsidiary is in
violation in any material respect of any of its leases. All machinery,
equipment, furniture, fixtures and other personal property and all buildings,
structures and other facilities, if any, including, without limitation, office
or other space used by the Company or any of its Subsidiaries in the conduct of
their business, are in good operating condition and fit for operation in the
ordinary course of businesses (subject to normal wear and tear). The Company
has delivered to the Purchasers true and complete copies of any leases related
to the real property used by the Company or any of its Subsidiaries in the
conduct of their businesses.

 

5.24         Absence of Changes.  Since December 31, 2009 and except as
set forth on Schedule 5.24 or as expressly provided by this Agreement, there
has not been:

 

(1)           any declaration, setting
aside or payment of any dividend or other distribution with respect to any
shares of capital stock of the Company or any repurchase, redemption or other
acquisition by the Company of any outstanding shares of its capital stock of
the Company;

 

(2)           any amendment of any term of
any outstanding security of the Company;

 

(3)           any transaction or
commitment made, or any contract, agreement or settlement entered into, by (or
judgment, order or decree affecting) the Company or any Subsidiary relating to
its assets or business (including the acquisition or disposition of any
material amount of assets) or any relinquishment by the Company or any
Subsidiary of any contract or other right, other than contracts that do not involve
the payment of more than $100,000 in the aggregate;

 

(4)           any (A) grant of any
severance or termination pay to (or amendment to any such existing arrangement
with) any director, officer or employee of the Company or any Subsidiary,
(B) entering into of any employment, deferred compensation, supplemental
retirement or other similar agreement (or any amendment to any such existing
agreement) with any director, officer or employee of the Company or any
Subsidiary, (C) increase in, or accelerated vesting and/or payment of,
benefits under any existing severance or 

 

18

 

termination pay policies or
employment agreements or (D) increase in or enhancement of any rights or
features related to compensation, bonus or other benefits payable to directors,
officers or senior employees of the Company or any Subsidiary;

 

(5)           any tax election made or
changed, any audit settled or any amended tax returns filed;

 

(6)           any Material Adverse Effect
or any event or events that individually or in the aggregate would have a
Material Adverse Effect;

 

(7)           any damage, destruction or
loss (whether or not covered by insurance) affecting the Company’s and any of
its Subsidiaries’ properties or assets;

 

(8)           any sale, assignment or
transfer, or any agreement to sell, assign or transfer, any asset, liability,
property, obligation or right of the Company or any Subsidiary to any Person,
including, without limitation, the Purchaser and its Affiliates, in each case,
other than in the ordinary course of business and consistent with past
practice;

 

(9)           any liability incurred, or
any loans or advances made, by the Company or any Subsidiary, other than
advances of travel and other business expenses in the ordinary course involving
not more than $5,000 individually or $25,000 in the aggregate;

 

(10)         any purchase or acquisition
of, or agreement, plan or arrangement to purchase or acquire, any property,
rights or assets;

 

(11)         any assignment, lease or
other transfer or disposition, or any other agreement or arrangement therefor
by the Company or any Subsidiary of any property or equipment having a value in
excess of $50,000;

 

(12)         any expenditure by the
Company or any Subsidiary (or series of related expenditures) involving more
than $50,000 individually or $100,000 in the aggregate;

 

(13)         any waiver of any rights or
claims of the Company or any Subsidiary;

 

(14)         any agreement or commitment
by the Company or any Subsidiary to do any of the foregoing or any transaction
by the Company or any Subsidiary outside the ordinary course of business of the
Company; or

 

(15)         any lien upon, or adversely
affecting, any property or other assets of the Company or any Subsidiary.

 

19

 

5.25         Illegal Payments.  Neither the Company nor any Subsidiary has,
nor, to the knowledge of the Company, has any director, officer, agent or
employee of the Company or any Subsidiary, paid, caused to be paid, or agreed
to pay, directly or indirectly, in connection with the business of the Company
or any Subsidiary: (a) to any government or agency thereof, any agent or
any supplier or customer, any bribe, kickback or other similar payment;
(b) any contribution to any political party or candidate (other than from
personal funds of directors, officers or employees not reimbursed by their
respective employers or as otherwise permitted by applicable law); or
(c) intentionally established or maintained any unrecorded fund or asset
or made any false entries on any books or records for any purpose.

 

5.26         Suppliers and Customers.  Since January 1, 2009, there has been no
termination, cancellation or threatened termination or cancellation or
limitation of, or any dissatisfaction with, the business relationship between
the Company or any Subsidiary and any supplier, customer, vendor, customer or
client, where such business relationship involves payments of more than $25,000
per annum.

 

5.27         Regulatory Permits.  The Company and each of its Subsidiaries
possess all certificates, authorizations and permits issued by the appropriate
federal, state, local or foreign regulatory authorities necessary to conduct
their respective businesses, except where the failure to possess such permits
is not material to the Company and its Subsidiaries taken as a whole (“Material Permits”),
and neither the Company nor any Subsidiary has received any notice of
proceedings relating to the revocation or modification of any Material Permit.

 

5.28         Insurance.  The Company and each of its Subsidiaries are
insured by insurers of recognized financial responsibility against such losses
and risks and in such amounts as are customary in the businesses in which the
Company and each of its Subsidiaries are engaged.  The Company maintains directors and officers’
insurance coverage in the amount set forth on Schedule 5.28.  Neither the Company nor any Subsidiary has
any reason to believe that it will not be able to renew its existing insurance
coverage as and when such coverage expires or to obtain similar coverage from
similar insurers as may be necessary to continue its business without a
significant increase in cost.

 

5.29         Investment Company.  The Company is not, and is not an Affiliate
of, and immediately after receipt of payment for the shares of Series C
Preferred Stock, will not be or be an Affiliate of, an “investment company”
within the meaning of the Investment Company Act of 1940, as amended.

 

5.30         Listing and Maintenance
Requirements.  The Common
Stock is registered pursuant to Section 12(g) of the Exchange Act,
and the Company has taken no action designed to, or which to its knowledge is
likely to have the effect of, terminating the registration of the Common Stock
under the Exchange Act nor has the Company received any notification that the
SEC is contemplating terminating such registration.  The Common Stock is currently quoted on the
OTC Bulletin Board (the “OTCBB”)
under the symbol “CICI.”  The Company has
not, in the 12 months preceding the date hereof, received notice from the
OTCBB to the effect that the Company is not in compliance with the listing or
maintenance requirements of the OTCBB. 
The Company is, and has no reason to believe that it will not in the
foreseeable future continue to be, in compliance with all such listing and
maintenance requirements of the OTCBB.

 

20

 

5.31        Accountants.  GHP Horwath, P.C. has delivered an
unqualified audit report to the Company with respect to its audited
consolidated financial statements included in the SEC Reports for the years
ended December 31, 2008 and 2009, and are independent accountants as
required by the Securities Act and the rules and regulations promulgated
thereunder. During the last two fiscal years, there have been no disagreements
of any kind and none are reasonably anticipated by the Company to arise,
between the Company and GHP Horwath, P.C. and the Company is current with
respect to any fees owed to such accounting firm.

 

5.32        Application of Takeover
Protections.  The Company
and its Board have taken all necessary action, if any, in order to render
inapplicable any control share acquisition, business combination, poison pill
(including any distribution under a rights agreement) or other similar
anti-takeover provision under the Company’s Charter Documents or the laws of
the State of Delaware (including Section 203 of the Delaware General
Corporation Law) that is or could become applicable as a result of this
Agreement, the Certificate of Designation (Series C), the Warrants, the
Warrant Shares and the Transaction Documents, including without limitation the
Company’s issuance of the Series C Preferred Stock or the issuance and
delivery of the Conversion Shares, the Warrants and Warrant Shares and the
ownership of the Series C Preferred Stock, the Conversion Shares, the
Warrants and the Warrant Shares.

 

5.33        Stock Options.  With respect to stock options issued pursuant
to the Company’s Employee Benefit Plans (i) each stock option designated
by the Company at the time of grant as an “incentive stock option” under Section 422
of the Code so qualifies; (ii) except as set forth in the SEC Reports,
including the financial statements included therein, each grant of a stock
option was duly authorized no later than the date on which the grant of such
stock option was by its terms to be effective by all necessary corporate
action, including, as applicable, approval by the Board (or a duly constituted
and authorized committee thereof) and any required stockholder approval by the
necessary number of votes or written consents; and (iii) each such grant
was made in accordance with the terms of the Employee Benefit Plans, the
Securities Act and all other applicable laws and regulatory rules or
requirements.

 

5.34        Disclosure.  The Company understands and confirms that the
Purchasers will rely on the foregoing representations in purchasing securities
of the Company. No representation or warranty by the Company contained in this
Agreement contains any untrue statement of a material fact or omits to state
any material fact necessary in order to make the statements made therein, in
light of the circumstances under which they were made, not misleading.  The Company acknowledges and agrees that the
Purchasers do not make and have not made any representations or warranties with
respect to the transactions contemplated hereby other than those specifically
set forth in Section 4 hereof.

 

6.             Pre-Closing Covenants.

 

6.1          Conduct of Business.

 

(a)           From the date of this
Agreement through the Closing Date, except as Phoenix may otherwise approve
(which approval shall not be unreasonably withheld) or as otherwise expressly
provided by this Agreement, the Company shall, and shall 

 

21

 

cause each of its
Subsidiaries to, (i) conduct their businesses in the ordinary course in
accordance with past practice, (ii)  use commercially reasonable efforts
to preserve intact their respective business organizations and goodwill and
assets, (iii) use commercially reasonable efforts to keep available the
services provided by their respective present officers and key employees, (iv) use
their commercially reasonable efforts to maintain satisfactory relationships
with others having business relationships with the Company and any of its
Subsidiaries, and (v) observe and perform all of its obligations and
comply with all terms and provisions of any and all leases, licenses and other
agreements to which it is a party.

 

(b)           Except as
expressly provided by this Agreement, or to the extent Phoenix otherwise
consents in writing (which consent shall not be unreasonably withheld), during
the period from the date of this Agreement to the Closing Date, the Company
shall not, and shall not cause or permit any of its Subsidiaries, to directly
or indirectly (i) incur indebtedness for borrowed money, (ii) grant
any Encumbrances on its assets, (iii) enter into any Material Contract or
terminate or amend any Material Contract to which any such Person becomes or is
a party or transfer or license any Company Intellectual Property, in each case,
other than in the ordinary course of business consistent with past practice,
(iv) dispose of any assets of any such Person, (v) other than
issuances of additional shares of (A) Series A-1 Preferred Stock in
connection with the payment of accrued dividends on shares of Series A-1
Preferred Stock or (B) Series B Preferred Stock in connection with
the payment of accrued dividends on shares of Series B Preferred Stock, in
each case, outstanding as of the date hereof, make any distribution in respect
of the equity securities of or other ownership interest in such Person,
(vi) make or revoke any election under the Code, (vii) other than the
issuance of additional shares of (A) Series A-1 Preferred Stock in
connection with the payment of accrued dividends on shares of Series A-1
Preferred Stock or (B) Series B Preferred Stock in connection with
the payment of accrued dividends on shares of Series B Preferred Stock, in
each case, outstanding as of the date hereof, authorize, issue, or agree or
otherwise commit to authorize or issue, any shares of stock of any class, or
any bonds, debentures or notes, or any securities convertible into,
exchangeable for or having option rights to purchase any shares of capital
stock of the Company securities other than pursuant to the exercise of options
or warrants or the conversion of Series A-1 Preferred Stock or Series B
Preferred Stock, in each case, outstanding on the date hereof pursuant to their
terms, (viii) amend its Charter Documents or comparable governance
documents, (ix) make any capital expenditure in excess of $100,000, (x) decrease
the amount of any insurance coverage, (xi) make any alteration to its
business plan, (xii) increase the compensation of any of its employees, (xiii) waive,
compromise, or settle any claim, or (xiv) voluntarily incur any liability
or obligation in excess of $50,000 individually or $250,000 in the aggregate.

 

6.2          Notice of Certain Events.  From the date of this Agreement through the
Closing Date, the Company will promptly give written notice to Phoenix, on
behalf of the Purchasers, of (i) any facts, events or circumstance changes
which, individually or in the aggregate would reasonably be expected to have a
Material Adverse Effect or cause the conditions to closing in Section 7
not to be satisfied and (ii) all claims or proceedings pending or
threatened against the Company or any of it Subsidiaries which may give rise to
a liability in excess of $50,000 or which may harm the reputation or operations
of the Company or any of its 

 

22

 

Subsidiaries. 
The Company will promptly supply Phoenix, on behalf of the Purchasers,
with all information reasonably requested in respect of any such facts, events,
circumstances, claims or proceedings.

 

7.             Conditions of Parties’
Obligations.

 

7.1          Conditions of the Purchasers’
Obligations.  The
obligations of the Purchasers to purchase the Purchased Shares and the Warrants
set forth on Schedule I attached hereto at the Closing are subject to
the fulfillment prior to the Closing Date of all of the following conditions,
any of which may be waived in whole or in part by Phoenix in its absolute
discretion.

 

(a)           Representations and
Warranties. The representations and warranties of the Company
contained in this Agreement and in any certificate, if any, or other writing,
if any, delivered by the Company pursuant hereto shall be true and correct on
the date hereof and on and as of the Closing Date.

 

(b)           Performance. The Company
shall have performed and complied in all material respects with all agreements,
obligations and conditions contained in this Agreement that are required to be
performed or complied with it on or before the Closing.

 

(c)           No Material Adverse Effect.  There shall have been no Material Adverse
Effect with respect to the Company or its Subsidiaries since December 31,
2009.

 

(d)           Consents and Waivers.  The Company shall have obtained all consents
or waivers necessary to execute and perform its obligations under this
Agreement, the other Transaction Documents, the Warrants (including the
consents and waivers listed on Schedule 5.5), the Certificate of
Designation (Series C), the Amended and Restated Certificate of
Designation (Series B) and the Second Amended and Restated Certificate of
Designation (Series A-1), to issue the Series C Preferred Stock, the
Conversion Shares, the Warrants and the Warrant Shares, and to carry out the
transactions contemplated hereby and thereby, including the consents of the
requisite holders of the shares of Series A-1 Preferred Stock and Series B
Preferred Stock, in the forms attached hereto as Schedule 7.1(d)(i) and
(ii).  All corporate and other action
and governmental filings necessary to effectuate the terms of the Charter
Amendment, the Certificate of Designation (Series C), the Amended and
Restated Certificate of Designation (Series B), the Second Amended and
Restated Certificate of Designation (Series A-1), this Agreement, the
other Transaction Documents, the Purchased Shares, the Conversion Shares, the
Warrants and the Warrant Shares, and other agreements and instruments executed
and delivered by the Company in connection herewith shall have been made or
taken.

 

(e)           Charter Amendment. Prior to the
Closing, (i) the Company shall have caused the Charter Amendment, to be
filed with the Secretary of State of Delaware to increase the number of authorized
shares of Common Stock to 1,050,000,000 and the number of authorized shares of
Preferred Stock to 24,500,000 and (ii) the Purchasers 

 

23

 

shall have received
confirmation from the Secretary of State of the State of Delaware reasonably
satisfactory to them that such filing has occurred.

 

(f)            Certificates of Designation. Prior to the
Closing, (i)(A) the Certificate of Designation (Series C), (B) the
Amended and Restated Certificate of Designation (Series B) and (C) the
Second Amended and Restated Certificate of Designation (Series A-1) shall
have been filed with the Secretary of State of the State of Delaware, and
(ii) the Purchasers shall have received confirmation from the Secretary of
State of the State of Delaware reasonably satisfactory to it that such filings
has occurred.

 

(g)           Minimum Subscription.  The Company shall have received from the
Purchasers not less than $1,500,000 in immediately available funds for the
purchase of the Purchased Shares and Warrants in accordance with the terms of
this Agreement.

 

(h)           Stockholder Approval
Obtained. The Company shall have obtained all necessary
stockholder approvals to have filed the Charter Amendment, the Certificate of
Designation (Series C), the Amended and Restated Certificate of
Designation (Series B) and the Second Amended and Restated Certificate of
Designation (Series A-1), including the approval of the requisite holders
of Common Stock voting separately as a class with respect to the Charter
Amendment, the requisite holders of Common Stock, Series A-1 Preferred
Stock and Series B Preferred Stock voting together as a class (on an
as-converted basis) with respect to the Charter Amendment, the requisite
holders of Series A-1 Preferred Stock and Series B Preferred Stock
voting together as a class with respect to the Charter Amendment, the requisite
holders of the Series B Preferred Stock voting separately as a class  with respect to the Charter Amendment, the
requisite holders of the Series B Preferred Stock voting separately as a
class with respect to the Amended and Restated Certificate of Designation (Series B)
and the requisite holders of Series A-1 Preferred Stock voting separately
as a class, with respect to the Second Amended and Restated Certificate of
Designation (Series A-1).

 

(i)            No Change to Capitalization.  Other than (i) the issuance of
additional shares of Series A-1 Preferred Stock in connection with the
payment of accrued dividends on shares of Series A-1 Preferred Stock
outstanding as of the date hereof, (ii) the issuance of additional shares
of Series B Preferred Stock in connection with the payment of accrued
dividends on shares of Series B Preferred Stock outstanding as of the date
hereof, or (iii) the issuance of shares of Common Stock in connection with
the exercise of options or warrants or the conversion of Series A-1
Preferred Stock or Series B Preferred Stock, in each case, outstanding on
the date hereof, there shall have been no change to the capitalization of the
Company as set forth on Schedule 5.1(a) hereto since the date
hereof.

 

(j)            Compliance Certificate. The Company
shall have delivered to the Purchaser a Compliance Certificate, executed by the
President and Chief Financial Officer of the Company, dated as of the Closing
Date to the effect that the conditions specified in subsections (a), (b), (c),
(d), (e)(i), (f)(i), (g), (h), (i) and (k) of this Section 7.1
have been satisfied.

 

24

 

(k)           Qualification Under State
Securities Laws. All registrations, qualifications, permits and
approvals, if any, required to be obtained prior to the Closing under
applicable state securities laws shall have been obtained for the lawful
execution, delivery and performance of this Agreement, the Warrants and the
other Transaction Documents, including, without limitation, the offer and sale
of the Purchased Shares and the Warrants.

 

(l)            Registration Rights
Agreement. The Registration Rights Agreement shall have been
executed and delivered by (i) Company and (ii) the Persons listed on
the signature pages thereto.

 

(m)          Supporting Documents.  Phoenix at the Closing shall have received
the following:

 

(1)           A good standing certificate
of the Company and CIC Acquisition Corp.;

 

(2)           An opinion from Davis Wright
Tremaine LLP, counsel to the Company, dated as of the Closing Date, in a form
satisfactory to Phoenix;

 

(3)           Copies of resolutions of the
Board of Directors of the Company (the “Board”), certified by the Vice President and
Assistant Treasurer of the Company, authorizing and approving (A) the
filing of the Charter Amendment, the Certificate of Designation (Series C),
the Amended and Restated Certificate of Designation (Series B) and the
Second Amended and Restated Certificate of Designation (Series A-1); (B) the
issuance and delivery of the Purchased Shares, the Conversion Shares, the
Warrants and the Warrant Shares; (C) the consummation of the transactions
contemplated by this Agreement and the other Transaction Documents; and (D) the
execution, delivery and performance of this Agreement, the Certificate of
Designation (Series C), the Amended and Restated Certificate of
Designation (Series B), the Second Amended and Restated Certificate of
Designation (Series A-1), the Warrants and the other Transaction Documents
and all other documents and instruments to be delivered pursuant hereto and
thereto;

 

(4)           Copies of resolutions of the
Special Committee of the Board of Directors of the Company, certified by the
Vice President and Assistant Treasurer of the Company, authorizing, approving
and recommending the approval by the Board of (A) the issuance of the
Purchased Shares and the Warrants; (B) the consummation of the
transactions contemplated by this Agreement and the other Transaction
Documents; and (C) the execution, delivery and performance of this
Agreement, the Certificate of Designation (Series C), the Amended and
Restated Certificate of Designation (Series B), the Second Amended and
Restated Certificate of Designation (Series A-1), the Warrants and the
other Transaction Documents;

 

25

 

(5)           Copy of the Certificate of
Incorporation and the By-laws of the Company, certified by the Vice President
and Assistant Treasurer of the Company; and

 

(6)           A certificate of incumbency
executed by the Vice President and Assistant Treasurer of the Company
(A) certifying the names, titles and signatures of the officers authorized
to execute the documents referred to in subparagraphs (3) and
(4) above and (B) further certifying that the Certificate of
Designation (Series C) delivered to Phoenix at the time of the execution
of this Agreement has been validly adopted and has not been amended or
modified.

 

(n)           Fees of Purchasers’ Counsel
and Consultants.  The Company
shall have paid all of the fees, expenses and disbursements of Phoenix and its
Affiliate, SG Phoenix LLC, and otherwise satisfied its obligations under Section 14.8
hereof and the Fee Letter in full.

 

7.2          Conditions of the Company’s
Obligations.  The
obligations of the Company under Section 2 hereof are subject to
the fulfillment prior to or on the Closing Date of all of the following
conditions, any of which may be waived in whole or in part by the Company.

 

(a)           Covenants; Representations
and Warranties. (i) Each of the Purchasers at the Closing
Date shall have performed in all material respects all of its obligations and
conditions hereunder required under this Agreement to be performed or complied
by it at or prior to the Closing Date and (ii) the representations and warranties
of each Purchaser at the Closing Date contained in this Agreement shall be true
and correct in all material respects at and as of the Closing Date as if made
at and as of the Closing Date (except to the extent expressly made as of an
earlier date, in which case as of such earlier date).

 

(b)           Registration Rights
Agreement. Each Purchaser and the other Persons listed on the
signature pages thereto shall have executed and delivered the Registration
Rights Agreement.

 

7.3          Conditions of Each Party’s
Obligations.  The
respective obligations of the Company and the Purchasers to consummate the
transactions at the Closing contemplated hereunder are subject to the absence
of the following: (a) any litigation challenging or seeking damages in
connection with the transactions contemplated by this Agreement, any of the
Transaction Documents, the Charter Amendment, the Certificate of Designation (Series C),
the Amended and Restated Certificate of Designation (Series B) or the
Second Amended and Restated Certificate of Designation (Series A-1), in
which there has been issued any order or injunction delaying or preventing the
consummation of the transactions contemplated hereby, and (b) any statute,
rule, regulation, injunction, order or decree, enacted, enforced, promulgated,
entered, issued or deemed applicable to this Agreement or the transactions
contemplated hereby by any court, government or governmental authority or
agency or legislative body, domestic, foreign or supranational prohibiting or
enjoining the transactions contemplated by this Agreement.

 

26

 

8.             Covenants; Termination.

 

8.1          Preparation of Consent
Solicitation; Action by Written Consent of Stockholders.   As promptly as reasonably practicable
following the date of this Agreement, but no later than December 10, 2010,
the Company shall prepare and cause to be filed with the SEC a preliminary
consent solicitation to be sent to the stockholders of the Company relating to
the solicitation of the Company’s stockholders to act by written consent in
lieu of a special meeting to approve the Charter Amendment which amends the
Certificate of Incorporation to increase the number of authorized shares of
Common Stock and the number of authorized shares of preferred stock of the
Company (together with any amendments or supplements thereto, the “Consent Solicitation”). 
The Company shall use its reasonable best efforts to finalize the
Consent Solicitation as promptly as possible after such filing.  The Company shall promptly notify Phoenix
upon the receipt of any comments from the SEC or any request from the SEC for
amendments or supplements to the Consent Solicitation and shall provide Phoenix
with copies of all correspondence between it and its representatives, on the
one hand, and the SEC, on the other hand. 
Phoenix shall have the opportunity to review and approve in its
reasonable discretion the Consent Solicitation and all correspondence from the
Company and its representatives to the SEC related thereto prior to filing with
the SEC. The Company shall, as soon as reasonably practicable following the
date the SEC completes review of the Consent Solicitation or notifies the
Company that it will not review the Consent Solicitation, duly give notice to
the Company stockholders by mailing the definitive Consent Solicitation, for
the purpose of seeking Company stockholder approval and to solicit such
approval from the stockholders. The Company shall, through the Consent
Solicitation, recommend to the Company’s stockholders that they approve the
Charter Amendment.  The Company shall
within one (1) Business Day of obtaining such stockholder approvals in
accordance with the terms of this Agreement take all requisite actions
(including the filing of the Charter Amendment, the Certificate of Designation
(Series C), the Amended and Restated Certificate of Designation (Series B)
and the Second Amended and Restated Certificate of Designation (Series A-1)
with the Secretary of State of the State of Delaware) to effect approvals and
consummate the transactions contemplated by this Agreement and the other
Transaction Documents.

 

8.2          Reporting Requirements;
Access to Records.  The Company
covenants to timely file (or obtain extensions in respect thereof and file
within the applicable grace period) all reports required to be filed by the
Company after the date hereof pursuant to the Exchange Act as long as the
Company remains subject to the reporting requirements of the Exchange Act. The
Company further agrees to promptly make available to Phoenix on behalf of the
Purchasers (i) such information as the Company is required to file or
furnish to the SEC, within the time periods required by applicable law and
regulations for filing or furnishing such information with the SEC,
(ii) such information as it furnishes to its other stockholders as a
class, and (iii) reasonable access during normal business hours, upon
reasonable advance notice, to all of the books, records and properties of the
Company and each of its Subsidiaries, if any, and to all officers and employees
of the Company and such Subsidiaries (which access shall be given to the
Phoenix’s officers, employees, advisors, counsel and other authorized
representatives).

 

8.3          Integration.  The Company shall not sell, offer for sale or
solicit offers to buy or otherwise negotiate in respect of any security (as
defined in Section 2 of the Securities Act) that would be integrated with
the offer or sale of the Purchased Shares and the Warrants in a 

 

27

 

manner that would require the registration under the
Securities Act of the sale of the Purchased Shares and the Warrants to the
Purchasers.

 

8.4          Securities Laws Disclosure;
Publicity.  The Company
shall by 5:30 p.m. ET on the fourth business day immediately following the
date hereof, file with the SEC a Current Report on Form 8-K, disclosing
the material terms of the transactions contemplated hereby and filing the
Transaction Documents as exhibits thereto. The Company and Phoenix shall
consult with each other in issuing any press releases with respect to the
transactions contemplated hereby, and neither the Company nor Phoenix shall
issue any other press release or otherwise make any such public statement
without the prior consent of the Company, with respect to any press release of
Phoenix, or without the prior consent of Phoenix, with respect to any press
release of the Company, which consent shall not unreasonably be withheld or
delayed, except if such disclosure is required by law, in which case the
disclosing party shall promptly provide the other party with prior notice of
such public statement or communication. 
Notwithstanding the foregoing, the Company shall not include the name of
any Purchaser in any filing with the SEC or any regulatory agency or Trading
Market, without the prior written consent of Phoenix, except (i) as
required by federal securities law in connection with (A) any registration
statement contemplated by the Registration Rights Agreement, (B) the
Current Report on Form 8-K required by this Section 8.4,
(C) any filing required by the SEC and (D) the filing of final
Transaction Documents (including signature pages thereto) with the SEC and
(ii) to the extent such disclosure is required by law or Trading Market
regulations, in which case the Company shall provide Phoenix with prior notice
of such disclosure permitted under this clause (ii); provided,
however, that notwithstanding the foregoing, other than such
Purchaser’s name, the Company will not disclose any personal information
regarding the Purchaser, including without limitation, the Purchaser’s tax
identification number and address required or permitted to be disclosed under
the foregoing clauses (i) and (ii).

 

8.5          Reservation of Common Stock.  After the Closing, the Company will reserve
and continue to reserve and keep available at all times, free of preemptive
rights, a sufficient number of shares of Common Stock for the purpose of
enabling the Company to issue the Conversion Shares upon conversion of the Series C
Preferred Stock and the Warrant Shares upon exercise of the Warrants.

 

8.6          Listing of Common Stock.  The Company hereby agrees to use best efforts
to maintain the listing or quotation of the Common Stock on a Trading
Market.  The Company will take all action
reasonably necessary to continue the listing or quotation and trading of its
Common Stock on a Trading Market and will comply in all respects with the
Company’s reporting, filing and other obligations under the bylaws or rules of
the Trading Market.

 

8.7          Filings.  The Company shall make all filings with the
SEC and its Trading Markets as required by the transactions contemplated
hereby.

 

8.8          Termination of Agreement.

 

(a)           This Agreement may be
terminated at any time prior to the Closing Date by mutual written consent of
the Company and Phoenix.

 

28

 

(b)           This Agreement may be
terminated by the Company or Phoenix if (i) any Federal or state court of
competent jurisdiction shall have issued an order, judgment or decree
permanently restraining, enjoining or otherwise prohibiting the Closing, and
such order, judgment or decree shall have become final and nonappealable or (ii) any
statute, rule, order or regulation shall have been enacted or issued by any
Governmental Entity which, directly or indirectly, prohibits the consummation
of the Closing; or (iii) the Closing contemplated hereby shall have not
occurred on or before January 31, 2011 (the “Termination
Date”), provided, however, that the right to terminate this
Agreement under this Section 8.8(b) shall not be available to
any party whose failure to fulfill any obligation under this Agreement has been
the cause of, or resulted in, the failure of the Closing to occur on or before
such date.

 

(c)           This Agreement may be
terminated by Phoenix if there has been a material violation or breach by the
Company of any covenant, representation or warranty contained in this Agreement
and such violation or breach is not cured by the earlier of the Closing Date or
the date ten (10) days after receipt by the Company of notice specifying
particularly such violation or breach, and such violation or breach has not
been waived by Phoenix.

 

(d)           This Agreement may be
terminated by the Company, if there has been a material violation or breach by
the Purchasers of any covenant, representation or warranty contained in this
Agreement and such violation or breach is not cured by the earlier of the
Closing Date or the date ten (10) days after receipt by Phoenix of notice
specifying particularly such violation or breach, and such violation or breach
has not been waived by the Company.

 

8.9          Procedure and Effect of
No-Default Termination.  In the event of termination of this
Agreement pursuant to Section 8.8, written notice thereof shall
forthwith be given by the terminating party to the other party, whereupon, if
this Agreement is terminated pursuant to any of Sections 8.8 (a) or
(b), the liabilities of the parties hereunder will terminate to each
other, except as otherwise expressly provided in this Agreement, and thereafter
neither the Company nor the Purchasers shall have any recourse against the
other by reason of this Agreement.

 

9.             Transfer Restrictions;
Restrictive Legend.

 

9.1          Transfer Restrictions.  The Purchasers understand that the Company
may, as a condition to the transfer of any of the Securities, require that the
request for transfer be accompanied by an opinion of counsel reasonably
satisfactory to the Company, to the effect that the proposed transfer does not
result in a violation of the Securities Act, unless such transfer is covered by
an effective registration statement or exempt under Rule 144 or Rule 144A
under the Securities Act; provided, however, that an opinion of counsel shall
not be required for a transfer by a Purchaser that is (A) a partnership
transferring all of the assets owned by it to its partners or former partners
pro rata in accordance with partnership interests, (B) a corporation
transferring to a wholly owned subsidiary or a parent corporation that owns all
of the capital stock of such Purchaser, (C) a limited liability company
transferring all of the assets owned by it to its members or former members pro
rata in accordance with their interest in the limited liability

 

29

 

company, (D) an individual transferring to such
Purchaser’s family member or trust for the benefit of such Purchaser, or
(E) transferring its Securities to any Affiliate of such Purchaser, in the
case of an institutional investor, or other Person under common management with
such Purchaser; and provided, further, that the transferee in each case agrees
to be subject to the restrictions in this Section 9. It is
understood that the certificates evidencing the Securities may bear
substantially the following legends:

 

“THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR
HYPOTHECATED IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT
TO THE SECURITIES UNDER SUCH ACT OR, SUBJECT TO PERMITTED EXCEPTIONS, AN
OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT
REQUIRED OR UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A OF SUCH ACT.”

 

9.2           Unlegended Certificates.  The Company shall be obligated to promptly reissue
unlegended certificates upon the request of any holder thereof at such time as
such holder provides the Company with evidence reasonably acceptable to the
Company that the holding period under Rule 144, or another applicable
exemption from the registration requirements of the Securities Act, allowing
such removal has been satisfied.

 

10.           Registration, Transfer and
Substitution of Certificates for Securities.

 

10.1         Stock Register; Ownership of
Securities.  The Company
will keep at its principal office a register in which the Company will provide
for the registration or transfers of the Securities. The Company may treat the
Person in whose name any of the Securities are registered on such register as
the owner thereof and the Company shall not be affected by any notice to the
contrary. All references in this Agreement to a “holder” of any Securities
shall mean the Person in whose name such Securities are at the time registered
on such register.

 

10.2         Replacement of Certificates.  Upon receipt of evidence reasonably
satisfactory to the Company of the loss, theft, destruction or mutilation of
any certificate representing Securities, and, in the case of any such loss,
theft or destruction, upon delivery of an indemnity agreement reasonably
satisfactory to the Company or, in the case of any such mutilation, upon
surrender of such certificate for cancellation at the office of the Company
maintained pursuant to Section 10.1 hereof, the Company at its
expense will execute and deliver, in lieu thereof, a new certificate
representing Securities of like tenor.

 

11.           Definitions.  Unless the context otherwise requires, the
terms defined in this Section 11 shall have the meanings specified
for all purposes of this Agreement.

 

Except
as otherwise expressly provided, all accounting terms used in this Agreement,
whether or not defined in this Section 11, shall be construed in
accordance with GAAP. If and so long as the Company has one or more
Subsidiaries, such accounting terms shall be determined on a consolidated basis
for the Company and each of its Subsidiaries, and the financial statements and
other financial information to be furnished by the Company pursuant to this 

 

30

 

Agreement
shall be consolidated and presented with consolidating financial statements of
the Company and each of its Subsidiaries.

 

“Affiliate” shall have
the meaning ascribed to such term in Rule 12b-2 of the General Rules and
Regulations under the Exchange Act.

 

“Agreement” has the
meaning assigned to it in the introductory paragraph hereof.

 

“Amended and Restated Certificate of
Designation (Series B)” means the Amended and Restated
Certificate of Designation of Series B Participating Convertible Preferred
Stock in the form attached hereto as Exhibit C, which sets forth
the rights, preferences and privileges of the Series B Preferred Stock,
par value $0.01 per share, of the Company.

 

“By-laws” means the
By-laws of the Company in effect as of the date hereof, and as may be amended,
restated, modified or amended and restated, from time to time

 

“Board” has the
meaning assigned to it in Section 7.1(m)(3) hereof.

 

“Certificate of Designation (Series C)”
has the meaning assigned to it in Section 1 hereof.

 

“Certificate of Incorporation”
means the Amended and Restated Certificate of Incorporation of the Company in
effect on the date hereof, and as may be amended, restated, modified or amended
and restated, from time to time.

 

“Charter Amendment”
means the Certificate of Amendment to the Certificate of Incorporation, in the
form attached hereto as Exhibit E.

 

“Charter Documents”
has the meaning assigned to it in Section 5.8 hereof.

 

“Closing” has the
meaning assigned to it in Section 3.1 hereof.

 

“Closing Date” has the
meaning assigned to it in Section 3.1 hereof.

 

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

 

“Common Stock” has the
meaning assigned to it in Section 1 hereof.

 

“Company” has the
meaning assigned to it in the introductory paragraph hereof.

 

“Company Intellectual Property”
has the meaning assigned to it in Section 5.21(a) hereof.

 

“Consent Solicitation” has the
meaning assigned to it in Section 8.1 hereof.

 

“Conversion Shares”
has the meaning assigned to it in Section 1 hereof.

 

“Disclosure Schedule”
has the meaning assigned to it in Section 5 hereof.

 

31

 

“Domain Names” has the
meaning assigned to it in Section 5.21(c) hereof.

 

“Employee Benefit Plan”
has the meaning assigned to it in Section 5.17(b) hereof.

 

“Encumbrances” has the
meaning assigned to it in Section 5.2 hereof.

 

“Environmental Law”
has the meaning assigned to it in Section 5.20(b) hereof.

 

“ERISA” has the
meaning assigned to it in Section 5.17(a) hereof.

 

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

 

“Fee Letter” means the
Fee Letter, dated November 18, 2010, between the Company, Phoenix and SG
Phoenix LLC.

 

“GAAP” means U.S.
generally accepted accounting principles consistently applied.

 

“Governmental Entity”
means any national, federal, state, municipal, local, territorial, foreign or
other government or any department, commission, board, bureau, agency,
regulatory authority or instrumentality thereof, or any court, judicial,
administrative or arbitral body or public or private tribunal.

 

“Hazardous Material”
has the meaning assigned to it in Section 5.20(b) hereof.

 

“Intellectual Property”
has the meaning assigned to it in Section 5.21(a) hereof.

 

“knowledge” of the
Company or any similar phrase means, with respect to any fact, circumstance,
event or other matter in question, the knowledge of such fact, circumstance,
event or other matter after reasonable inquiry of Guido DiGregorio, Francis
Dane, Craig Hutchison or Beth Selling. 
Any such individual will be deemed to have knowledge of a particular
fact, circumstance, event or other matter if (a) such fact, circumstance,
event or other matter is contained in one or more documents (whether written or
electronic, including electronic mails sent to or by such individual) in the
possession of such individual, including his or her personal files, or
(b) such knowledge would reasonably be expected to be obtained from
reasonable inquiry of the persons employed by the Company charged with
administrative or operational responsibility for such matters for the Company.

 

“Material Adverse Effect”
means (i) any material adverse effect on the issuance or validity of the
Securities or the transactions contemplated hereby or the enforceability or
validity of the Charter Amendment, the Certificate of Designation (Series C),
the Amended and Restated Certificate of Designation (Series B) or the
Second Amended and Restated Certificate of Designation (Series A-1) or on
the ability of the Company to perform its obligations under this Agreement, the
Warrants and the other Transaction Documents or (ii) any material adverse
effect on the condition (financial or otherwise), properties, assets,
liabilities, business, operations or prospects of the Company and its
Subsidiaries, taken as a whole.

 

“Material Contract”
means all written and oral contracts, agreements, deeds, mortgages, leases,
subleases, licenses, instruments, notes, commitments, commissions,
undertakings, 

 

32

 

arrangements
and understandings (i) which by their terms involve, or would reasonably
be expected to involve, aggregate payments by or to the Company during any 12
month period in excess of $50,000, (ii) the breach of which by the Company
or any of its Subsidiaries would be material to the Company or any of its Subsidiaries
or (iii) which are required to be filed as exhibits by the Company with
the SEC pursuant to Items 601(b)(4) and 601(b)(10) of Regulation S-K
promulgated by the SEC.

 

“Material Permits” has
the meaning assigned to it in Section 5.27 hereof.

 

“OTCBB” has the meaning assigned to
in Section 5.30 hereof.

 

“PCAOB” means the Public Company
Accounting Oversight Board.

 

“Person” means and
includes all natural persons, corporations, business trusts, associations,
companies, partnerships, joint ventures, limited liability companies and other
entities and governments and agencies and political subdivisions.

 

“Phoenix” has the meaning assigned to
it in the introductory paragraph hereof.

 

“Purchase Price” has
the meaning assigned to it in Section 2 hereof.

 

“Purchased Shares” has the meaning
assigned to it in Section 1 hereof.

 

“Purchasers” has the
meaning assigned to it in the introductory paragraph of this Agreement and
shall include any Affiliates of the Purchasers.

 

“Registrars” has the meaning assigned
to it in Section 5.21(d) hereof.

 

“Registration Rights Agreement” means
the Registration Rights Agreement in the form attached hereto as Exhibit F.

 

“SEC” means the
Securities and Exchange Commission.

 

“SEC Reports” has the
meaning assigned to it in Section 5.13(a) hereof.

 

“Second Amended and Restated
Certificate of Designation (Series A-1)” means the Amended
and Restated Certificate of Designation of Series A-1 Cumulative
Convertible Preferred Stock in the form attached hereto as Exhibit D,
which sets forth the rights, preferences and privileges of the Series A-1
Preferred Stock, par value $0.01 per share, of the Company.

 

“Securities” has the
meaning assigned to it in Section 1 hereof.

 

“Securities Act” or “Act” means the
Securities Act of 1933, as amended.

 

“Series A-1 Preferred Stock”
means the Series A-1 Cumulative Convertible Preferred Stock, par value
$0.01 per share, of the Company provided for pursuant to the Second Amended and
Restated Certificate of Designation (Series A-1) filed with the Delaware
Secretary of State.

 

33

 

“Series B Preferred Stock” means
the Series B Participating Convertible Preferred Stock, par value $0.01
per share, of the Company provided for pursuant to the Amended and Restated
Certificate of Designation (Series B) filed with the Delaware Secretary of
State.

 

“Series C Preferred Stock”
has the meaning assigned to such term in Section 1 hereof.

 

“Software” has the
meaning assigned to it in Section 5.21(a) hereof.

 

“Subsidiary” means any
corporation, association trust, limited liability company, partnership, joint
venture or other business association or entity (i) at least 50% of the
outstanding voting securities of which are at the time owned or controlled
directly or indirectly by the Company or (ii) with respect to which the
Company possesses, directly or indirectly, the power to direct or cause the
direction of the affairs or management of such Person.

 

“Termination Date” has
the meaning assigned to it in Section 8.10(b) hereof.

 

“Trademarks” has the
meaning assigned to it in Section 5.21(a) hereof.

 

“Trading Market” means the
following markets or exchanges on which the Common Stock is listed or quoted
for trading on the date in question: the American Stock Exchange, the Nasdaq
Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the
New York Stock Exchange or the OTCBB.

 

“Transaction Documents”
means this Agreement and the Registration Rights Agreement.

 

“Warrant” or “Warrants”
has the meaning assigned to it in Section 1 hereof.

 

“Warrant Shares” has the meaning
assigned to it in Section 1 hereof.

 

12.           Enforcement.

 

12.1         Cumulative Remedies.  None of the rights, powers or remedies
conferred upon the Purchasers on the one hand or the Company on the other hand
shall be mutually exclusive, and each such right, power or remedy shall be
cumulative and in addition to every other right, power or remedy, whether
conferred by this Agreement, the Warrants, any of the other Transaction
Documents, the Certificate of Incorporation, the Certificate of Designation (Series C),
the Amended and Restated Certificate of Designation (Series B) or the
Second Amended and Restated Certificate of Designation (Series A-1) or now
or hereafter available at law, in equity, by statute or otherwise. In addition
to being entitled to exercise all rights provided herein or granted at law,
including recovery of damages, the Purchasers and the Company will be entitled
to specific performance under the Transaction Documents, the Certificate of
Incorporation and the Certificate of Designation (Series C). The parties
agree that monetary damages may not be adequate compensation for any loss
incurred by reason of any breach of obligations contained in the Transaction
Documents and the Warrants and hereby agree to waive and not to assert in any
action for specific performance of any such obligation the defense that a
remedy at law would be adequate or the posting of a bond.

 

34

 

12.2         No Implied Waiver.  Except as expressly provided in this
Agreement, no course of dealing between the Company and the Purchasers or any
other holder of shares of Series C Preferred Stock and no delay in
exercising any such right, power or remedy conferred hereby or by the
Certificate of Designation (Series C), the Warrants or by any of the other
Transaction Documents or now or hereafter existing at law in equity, by statute
or otherwise, shall operate as a waiver of, or otherwise prejudice, any such
right, power or remedy.

 

13.           Confidentiality.  Except as otherwise agreed in writing by the
Company, each Purchaser agrees that it will use reasonable care to keep
confidential and not disclose or divulge any confidential information obtained
from the Company pursuant to the terms of the Transaction Documents, unless
such confidential information (a) is known or becomes known to the public
in general (other than as a result of a breach of this Section 13
by such Purchaser), (b) is or has been independently developed or
conceived by such Purchaser without use of the Company’s confidential
information, (c) is or has been made known or disclosed to such Purchaser
by a third party without a breach of any obligation of confidentiality such
third party may have to the Company or (d) was known to such Purchaser
prior to disclosure to the Purchaser by the Company; provided, however, that
such Purchaser may disclose confidential information (i) to its attorneys,
accountants, consultants, and other professionals; (ii) to any prospective
purchaser of any Securities from the Purchaser, if such prospective purchaser
agrees to keep such information confidential; (iii) to any Affiliate,
partner, member, stockholder or advisor of such Purchaser in the ordinary
course of business, provided that the Purchaser informs such person that such
information is confidential; or (iv) as may otherwise be required by law.

 

14.           Miscellaneous.

 

14.1         Waivers and Amendments.  Upon the approval of the Company and the
written consent of Phoenix, the obligations of the Company and the rights of
the Purchasers under this Agreement may be waived (either generally or in a
particular instance, either retroactively or prospectively and either for a
specified period of time or indefinitely). Neither this Agreement, nor any
provision hereof, may be changed, waived, discharged or terminated orally or by
course of dealing, but only by an instrument in writing.

 

The
foregoing notwithstanding, no such waiver or supplemental agreement shall
affect any of the rights of any holder of any Securities created by the
Certificate of Designation (Series C), the Warrants or by the Delaware
General Corporation Law without compliance with all applicable provisions of
the Certificate of Designation (Series C) and the Delaware General
Corporation Law.

 

14.2         Notices.  All notices, requests, consents, and other
communications under this Agreement shall be in writing and shall be deemed
delivered (a) three business days after being sent by registered or
certified mail, return receipt requested, postage prepaid or (b) one
business day after being sent via a reputable nationwide overnight courier
service guaranteeing next business day delivery, in each case to the intended
recipient as set forth below:

 

If
to the Purchasers at its address set forth on Schedule I hereto.

 

with
a copy (which shall not constitute notice) to:

 

35

 

Pillsbury
Winthrop Shaw Pittman LLP 

1540 Broadway

New York, New York 10036

Attention: Jonathan J. Russo, Esq. 

Facsimile No.: (212) 858-1500

 

If
to the Company:

 

Communication
Intelligence Corporation

275 Shoreline Drive, Suite 500

Redwood Shores, CA 94065 

Attention: Craig Hutchison 

Facsimile No.: (650) 802-7777

 

with
a copy (which shall not constitute notice) to:

 

Davis
Wright Tremaine LLP

1300 SW Fifth Avenue, Suite 2300

Portland, OR 97201 

Attention: Michael C. Phillips, Esq.

Facsimile No.: (503) 778-5299

 

or
at such other address as the Company or the Purchasers each may specify by
written notice to the other parties hereto. Any party may give any notice,
request, consent or other communication under this Agreement using any other
means (including, without limitation, personal delivery, messenger service,
telecopy, first class mail or electronic mail), but no such notice, request,
consent or other communication shall be deemed to have been duly given unless
and until it is actually received by the party for whom it is intended. Any
party may change the address to which notices, requests, consents or other
communications hereunder are to be delivered by giving the other parties notice
in the manner set forth in this Section 14.2.

 

14.3         Indemnification; Survival.  The Company shall indemnify, save and hold
harmless each Purchaser, its directors, officers, members, stockholders,
employees, partners, representatives, advisors, attorneys and agents (each, a “Purchaser Indemnified Party”)
from and against (and shall promptly reimburse such indemnified persons for)
any and all liability, loss, cost, damage, fine, penalty, amount paid in
settlement, reasonable attorneys’ and accountants’ fees and expenses, court
costs and all other out-of-pocket expenses incurred (collectively, “Losses”) in
connection with or arising from claims, actions, suits, proceedings,
investigations or similar claims by any person or entity (other than any
Purchaser Indemnified Party) associated, arising out of or relating to
(i) the execution, delivery and performance of this Agreement, the
Warrants, any of the other Transaction Documents or the Certificate of
Designation (Series C), (ii) the transactions contemplated hereby or
thereby, or (iii) the ownership by such Purchaser of the Securities.  This indemnification provision shall be in
addition to the rights of the Purchaser to bring an action against the Company
for breach of any term of this Agreement, the other Transaction Documents, the
Warrants or the Certificate of Designation (Series C). All representations
and warranties of the Company in this Agreement or the Transaction Documents
shall survive the Closing until the date that is two (2) years after the 

 

36

 

Closing Date; provided, however,
that the representations and warranties of the Company contained in Sections
5.2 (Due Issuance and Authorization of Capital Stock),
5.16 (Taxes), 5.17 (Employee Matters) and 5.21 (Intellectual
Property Matters) shall survive the Closing until the sixty (60)
days after the expiration of the applicable statute of limitations period
(after giving effect to any waivers or extensions thereof).  All covenants of the Company in this
Agreement, except to the extent otherwise expressly provided, shall survive the
Closing indefinitely.

 

14.4         No Waivers.  No failure or delay by any party in
exercising any right, power or privilege hereunder shall operate as a waiver
thereof nor shall any single or partial exercise thereof preclude any other or
further exercise thereof or the exercise of any other right, power or
privilege. The rights and remedies herein provided shall be cumulative and not
exclusive of any rights or remedies provided by law.

 

14.5         Successors and Assigns.  All the terms and provisions of this
Agreement shall be binding upon and inure to the benefit of and be enforceable
by the respective parties hereto, the successors and permitted assigns of each
Purchaser and the successors of the Company, whether so expressed or not.  None of the parties hereto may assign its
rights or obligations under Section 2 hereof without the prior
written consent of the Company, except that each Purchaser may, without the
prior consent of the Company, assign its rights to purchase the shares of Series C
Preferred Stock and Warrants hereunder to any Affiliate.

 

14.6         Headings.  The headings of the Sections and paragraphs
of this Agreement have been inserted for convenience of reference only and do
not constitute a part of this Agreement.

 

14.7         Governing Law.  This Agreement shall be governed by and
construed in accordance with the laws of the State of New York, without regard
to its conflict of law principles.

 

14.8         Fees and Expenses.  The Company agrees to pay, reimburse and hold
Phoenix, on behalf of the Purchasers, and its Affiliates, including SG Phoenix
LLC, harmless from liability for the payment of all out-of-pocket fees and
expenses incurred by it in connection with its diligence investigation of the
Company, the preparation and negotiation of this Agreement and the other
Transaction Documents and the other agreements contemplated hereby and the
consummation of the transactions contemplated hereby, regardless of whether the
purchase of shares of Series C Preferred Stock and Warrants by the
Purchasers pursuant to this Agreement is consummated in accordance with the
terms of this Agreement.  Phoenix may
deduct such fees and expenses from the aggregate amount to be paid by Phoenix
at the Closing for the shares of Series C Preferred Stock and Warrants to
be purchased by it hereunder.  The fees
and expenses of the Phoenix may include, without limitation:

 

(a)           the fees and expenses of
counsel, consultants and accountants and out of pocket expenses, including
diligence and travel expenses, of Phoenix and its Affiliates, arising in
connection with the preparation, negotiation and execution of the Certificate
of Designation (Series C), the Amended and Restated Certificate of
Designation (Series B), the Second Amended and Restated Certificate of
Designation (Series A-1), the Warrants and the Transaction Documents, the
preparation, execution 

 

37

 

and filing of all forms,
schedules and reports and amendments thereto of the Purchasers required to be
filed with the SEC in connection with or arising out of the transactions
contemplated by the Transaction Documents and the consummation of the
transactions contemplated thereby (including Schedule 13D filings and
amendments and Form 4 filings),

 

(b)           all costs of the Company’s
performance and compliance with the Certificate of Designation (Series C),
the Amended and Restated Certificate of Designation (Series B), the Second
Amended and Restated Certificate of Designation (Series A-1), the Warrants
or the Transaction Documents, and

 

(c)           stamp and other taxes,
excluding income taxes, which may be payable with respect to the execution and
delivery of the Certificate of Designation (Series C), the Amended and
Restated Certificate of Designation (Series B), the Second Amended and
Restated Certificate of Designation (Series A-1) or the Transaction
Documents, or the issuance, delivery or acquisition of the Purchased Shares or
the Conversion Shares.

 

14.9         Jurisdiction.  Any suit, action or proceeding seeking to
enforce any provision of, or based on any matter arising out of or in
connection with, this Agreement or the transactions contemplated hereby shall
be brought in any federal or state court located in the State of New York, and
each of the parties hereby consents to the jurisdiction of such courts (and of
the appropriate appellate courts therefrom) in any such suit, action or
proceeding and irrevocably waives, to the fullest extent permitted by law, any
objection which it may now or hereafter have to the laying of the venue of any
such suit, action or proceeding in any such court or that any such suit, action
or proceeding which is brought in any such court has been brought in an
inconvenient forum. Process in any such suit, action or proceeding may be
served on any party anywhere in the world, whether within or without the
jurisdiction of any such court. Without limiting the foregoing, each party
agrees that service of process on such party as provided in Section 14.2
shall be deemed effective service of process on such party.

 

14.10       Waiver of Jury Trial.  TO THE EXTENT NOT PROHIBITED BY APPLICABLE
LAW WHICH CANNOT BE WAIVED, THE PURCHASERS AND THE COMPANY HEREBY WAIVE, AND
COVENANT THAT NEITHER THE COMPANY NOR THE PURCHASERS WILL ASSERT, ANY RIGHT TO
TRIAL BY JURY ON ANY ISSUE IN ANY PROCEEDING, WHETHER AS PLAINTIFF, DEFENDANT
OR OTHERWISE, IN RESPECT OF ANY ISSUE, CLAIM, DEMAND, ACTION OR CAUSE OF
ACTION ARISING OUT OF OR BASED UPON THIS AGREEMENT, ANY OTHER AGREEMENT OR THE
SUBJECT MATTER HEREOF OR THEREOF OR IN ANY WAY CONNECTED WITH, RELATED OR
INCIDENTAL TO THE DEALINGS OF THE PURCHASERS AND THE COMPANY HEREUNDER OR
THEREUNDER, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING AND
WHETHER IN TORT OR CONTRACT OR OTHERWISE. The Company acknowledges that it has
been informed by the Purchasers that the provisions of this Section 14.10
constitute a material inducement upon which the Purchasers is relying and will
rely in entering into this Agreement. The Purchasers or the Company may file an
original counterpart or a copy of this Section 14.10 with any court
as written evidence of the consent of the Purchasers and the Company to the
waiver of the right to trial by jury.

 

38

 

14.11       Counterparts; Effectiveness.  This Agreement may be executed in any number
of counterparts and by different parties hereto in separate counterparts, with
the same effect as if all parties had signed the same document. All such
counterparts shall be deemed an original, shall be construed together and shall
constitute one and the same instrument. This Agreement shall become effective
when each party hereto shall have received counterparts hereof signed by all of
the other parties hereto.

 

14.12       Entire Agreement.  This Agreement, the Charter Amendment, the
Certificate of Designation (Series C), the Amended and Restated
Certificate of Designation (Series B), the Second Amended and Restated
Certificate of Designation (Series A-1), the Warrants and the Transaction
Documents contain the entire agreement among the parties hereto with respect to
the subject matter hereof and thereof and such agreements supersede and replace
all other prior agreements, written or oral, among the parties hereto with
respect to the subject matter hereof and thereof.

 

14.13       Severability.  If any provision of this Agreement shall be
found by any court of competent jurisdiction to be invalid or unenforceable,
the parties hereby waive such provision to the extent that it is found to be
invalid or unenforceable. Such provision shall, to the maximum extent allowable
by law, be modified by such court so that it becomes enforceable, and, as
modified, shall be enforced as any other provision hereof, all the other
provisions hereof continuing in full force and effect.

 

14.14       Independent Nature of
Purchasers’ Obligations and Rights.  The obligations of each Purchaser under this
Agreement and any other Transaction Document are several and not joint with the
obligations of any other Purchaser, and no Purchaser shall be responsible in
any way for the performance or non-performance of the obligations of any other
Purchaser under this Agreement and any other Transaction Document.  The decision of each Purchaser to purchase
shares of Series C Preferred Stock and Warrants pursuant to this Agreement
and the other Transaction Documents has been made by such Purchaser
independently of any other Purchaser. 
Nothing contained herein or in any other Transaction Document, and no action
taken by any Purchaser pursuant thereto, shall be deemed to constitute the
Purchasers as a partnership, an association, a joint venture or any other kind
of entity, or create a presumption that the Purchasers are in any way acting in
concert or as a group with respect to such obligations or the transactions
contemplated by this Agreement, the Warrants and the other Transaction
Documents.  Each Purchaser shall be
entitled to independently protect and enforce its rights, including without
limitation, the rights arising out of this Agreement, the Warrants or out of
the other Transaction Documents, and it shall not be necessary for any other
Purchaser to be joined as an additional party in any proceeding for such
purpose.

 

[Remainder of Page Intentionally Left Blank]

 

39

 

IN
WITNESS WHEREOF, the parties hereto have caused this Securities Purchase
Agreement to be duly executed as of the day and year first above written.

 

 

	
   

  	
  THE COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  COMMUNICATION
  INTELLIGENCE CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:
  Craig Hutchison

  
	
   

  	
  Title:
    Vice President and Assistant
  Treasurer

  

 

 

IN
WITNESS WHEREOF, the parties hereto have caused this Securities Purchase
Agreement to be duly executed as of the day and year first above written.

 

 

	
   

  	
  PURCHASER

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Telephone No.:

  
	
   

  	
   

  
	
   

  	
  Facsimile No.:

  
	
   

  	
   

  
	
   

  	
  Email Address:

  
	
   

  	
   

  
	
   

  	
  Number of Shares:

  
	
   

  	
   

  
	
   

  	
  Aggregate Purchase Price:

  
	
   

  	
   

  
	
   

  	
  SSN/TIN:

  

 

41

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