Document:

Exhibit 10.4

 

INDEMNIFICATION AGREEMENT

 

THIS INDEMNIFICATION AGREEMENT (this
“Agreement”) is made and entered March 10, 2004 (the “Effective Date”), by
and between Senior Housing Properties Trust, a Maryland real estate investment
trust (the “Company”), and David J. Hegarty (“Indemnitee”).

 

WHEREAS Indemnitee currently serves as an
officer of the Company and may, in connection therewith, be subjected to
claims, suits or proceedings arising from such service; and

 

WHEREAS, as an inducement to Indemnitee to continue
to serve as such officer, the
Company has agreed to indemnify and to advance expenses and costs incurred by
Indemnitee in connection with any such claims, suits or proceedings, to the
fullest extent permitted by law as hereinafter provided; and

 

NOW, THEREFORE, in consideration of the
premises and the covenants contained herein, the Company and Indemnitee do
hereby covenant and agree as follows:

 

Section 1.               Definitions.  For purposes of this Agreement:

 

(a)           “Change in Control” means a change in
control of the Company occurring after the Effective Date of a nature that
would be required to be reported in response to Item 6(e) of Schedule 14A
of Regulation 14A (or in response to any similar item on any similar
schedule or form) promulgated under the Securities Exchange Act of 1934,
as amended (the “Act”), whether or not the Company is then subject to such
reporting requirement; provided, however, that, without limitation, such a
Change in Control shall be deemed to have occurred if after the Effective Date
(i) any “person” (as such term is used in Sections 13(d) and 14(d) of the Act)
is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Act),
directly or indirectly, of securities of the Company representing 10% or more of the combined voting power
in the election of trustees of the Company’s then outstanding securities
without the prior approval of at least two-thirds of the members of the Board
of Trustees in office immediately prior to such person attaining such
percentage interest; (ii) there occurs a proxy contest, or the Company is a
party to a merger, consolidation, sale of assets, plan of liquidation or other
reorganization not approved by at least two-thirds of the members of the Board
of Trustees then in office, as a consequence of which members of the Board of
Trustees in office immediately prior to such transaction or event constitute
less than a majority of the Board of Trustees thereafter; or (iii) during any
period of two consecutive years, other than as a result of an event described
in clause (a)(ii) of this Section 1, individuals who at the
beginning of such period constituted the Board of Trustees (including for this
purpose any new trustee whose election or nomination for election by the
Company’s shareholders was approved by a vote of at least two-thirds of the
trustees then still in office who were trustees at the beginning of such
period) cease for any reason to constitute at least a majority of the Board of
Trustees.

 

(b)           “Corporate Status” means the status
of a person who is or was a director, trustee, officer or agent of the Company.

 

(c)           “Disinterested Trustee” means a
trustee of the Company who is not and was not a party to the Proceeding in
respect of which indemnification is sought by Indemnitee.

 

 

(d)           “Expenses” means all expenses,
including, but not limited to, all reasonable attorneys’ fees, retainers, court
costs, transcript costs, fees of experts, witness fees, travel expenses,
duplicating costs, printing and binding costs, telephone charges, postage, delivery
service fees, and all other disbursements or expenses of the types customarily
incurred in connection with prosecuting, defending, preparing to prosecute or
defend, investigating, or being or preparing to be a witness in a Proceeding.

 

(e)           “Independent Counsel” means a law
firm, or a member of a law firm, that is retained by Indemnitee and is not
serving as counsel to the Company.

 

(f)            “Proceeding” means any threatened,
pending or completed action, suit, arbitration, alternate dispute resolution
mechanism, investigation, administrative hearing or any other proceeding,
whether civil, criminal, administrative or investigative (including on appeal),
except one initiated by an Indemnitee pursuant to Section 9.

 

Section 2.               Indemnification
- General.  The Company shall
indemnify, and advance Expenses to, Indemnitee (a) as provided in this
Agreement and (b) otherwise to the fullest extent permitted by Maryland law in
effect on the date hereof and as amended from time to time; provided, however,
that no change in Maryland law shall have the effect of reducing the benefits
available to Indemnitee hereunder based on Maryland law as in effect on the
date hereof.  The rights of Indemnitee
provided in this Section 2 shall include, without limitation, the
rights set forth in the other sections of this Agreement, including any
additional indemnification permitted by Section 2-418(g) of the Maryland
General Corporation Law (“MGCL”), as applicable to a Maryland real estate
investment trust by virtue of Section 8-301(15) of the Maryland REIT Law.

 

Section 3.               Proceedings
Other Than Proceedings by or in the Right of the Company.  Indemnitee shall be entitled to the rights
of indemnification provided in this Section 3 if, by reason of his
Corporate Status, he is, or is threatened to be, made a party to any
threatened, pending, or completed Proceeding, other than a Proceeding by or in
the right of the Company.  Pursuant to
this Section 3, Indemnitee shall be indemnified against all
judgments, penalties, fines and amounts paid in settlement and all Expenses
incurred by him or on his behalf in connection with a Proceeding by reason of
Indemnitee’s Corporate Status unless it is established that (i) the act or
omission of Indemnitee was material to the matter giving rise to the Proceeding
and (a) was committed in bad faith or (b) was the result of active and
deliberate dishonesty, (ii) Indemnitee actually received an improper personal
benefit in money, property or services, or (iii) in the case of any criminal
Proceeding, Indemnitee had reasonable cause to believe that his conduct was
unlawful.

 

Section 4.               Proceedings
by or in the Right of the Company. 
Indemnitee shall be entitled to the rights of indemnification provided
in this Section 4 if, by reason of his Corporate Status, he is, or
is threatened to be, made a party to any threatened, pending or completed
Proceeding brought by or in the right of the Company to procure a judgment in
its favor.  Pursuant to this Section 4,
Indemnitee shall be indemnified against all amounts paid in settlement and all
Expenses incurred by him or on his behalf in connection with such Proceeding
unless it is established that (i) the act or omission of Indemnitee was
material to the matter giving rise to such a Proceeding and (a) was committed
in bad faith or (b) was the result of active and

 

2

 

deliberate dishonesty or (ii)
Indemnitee actually received an improper personal benefit in money, property or
services.

 

Section 5.               Indemnification
for Expenses of a Party Who is Partly Successful.  Without limitation on Section 3 and Section 4,
if Indemnitee is not wholly successful in any Proceeding covered by this
Agreement, but is successful, on the merits or otherwise, as to one or more but
less than all claims, issues or matters in such Proceeding, the Company shall
indemnify Indemnitee under this Section 5 for all Expenses incurred
by him or on his behalf in connection with each successfully resolved claim,
issue or matter, allocated on a reasonable and proportionate basis.  For purposes of this Section and
without limitation, the termination of any claim, issue or matter in such a
Proceeding by dismissal, with or without prejudice, shall be deemed to be a
successful result as to such claim, issue or matter.

 

Section 6.               Advance
of Expenses.  The Company shall
advance all Expenses incurred by or on behalf of Indemnitee in connection with
any Proceeding to which Indemnitee is, or is threatened to be, made a party or
a witness, within ten days after the receipt by the Company of a statement or
statements from Indemnitee requesting such advance or advances from time to
time, whether prior to or after final disposition of such Proceeding.  Such statement or statements shall reasonably
evidence the Expenses incurred by Indemnitee and shall include or be preceded
or accompanied by a written affirmation by Indemnitee of Indemnitee’s good
faith belief that the standard of conduct necessary for indemnification by the
Company as authorized by law and by this Agreement has been met and a written
undertaking by or on behalf of Indemnitee, in substantially the form attached
hereto as Exhibit A or in such form as may be required under applicable
law as in effect at the time of the execution thereof, to reimburse the portion
of any Expenses advanced to Indemnitee relating to claims, issues or matters in
the Proceeding as to which it shall ultimately be established that the standard
of conduct has not been met and which have not been successfully resolved as
described in Section 5.  To
the extent that Expenses advanced to Indemnitee do not relate to a specific
claim, issue or matter in the Proceeding, such Expenses shall be allocated on a
reasonable and proportionate basis.  The
undertaking required by this Section 6 shall be an unlimited
general obligation by or on behalf of Indemnitee and shall be accepted without
reference to Indemnitee’s financial ability to repay such advanced Expenses and
without any requirement to post security therefor.

 

Section 7.               Procedure
for Determination of Entitlement to Indemnification.

 

(a)           To obtain indemnification under this
Agreement, Indemnitee shall submit to the Company a written request, including
such documentation and information as is reasonably available to Indemnitee and
is reasonably necessary to determine whether and to what extent Indemnitee is
entitled to indemnification.  The
Secretary of the Company shall, promptly upon receipt of such a request for
indemnification, advise the Board of Trustees in writing that Indemnitee has
requested indemnification.

 

(b)           Upon written request by Indemnitee
for indemnification pursuant to the first sentence of Section 7(a)
hereof, a determination, if required by applicable law, with respect to
Indemnitee’s entitlement thereto shall promptly be made in the specific case:
(i) if a Change in Control shall have occurred, by Independent Counsel in a
written opinion to the Board of

 

3

 

Trustees,
a copy of which shall be delivered to Indemnitee; or (ii) if a Change of
Control shall not have occurred or if after a Change of Control Indemnitee
shall so request, (A) by the Board of Trustees (or a duly authorized committee
thereof) by a majority vote of a quorum consisting of Disinterested Trustees
(as herein defined), or (B) if a quorum of the Board of Trustees consisting of
Disinterested Trustees is not obtainable or, even if obtainable, such quorum of
Disinterested Trustees so directs, by Independent Counsel in a written opinion
to the Board of Trustees, a copy of which shall be delivered to Indemnitee, or
(C) if so directed by a majority of the members of the Board of Trustees, by
the shareholders of the Company; and, if it is so determined that Indemnitee is
entitled to indemnification, payment to Indemnitee shall be made within ten
days after such determination. 
Indemnitee shall cooperate with the person, persons or entity making
such determination with respect to Indemnitee’s entitlement to indemnification,
including providing to such person, persons or entity upon reasonable advance
request any documentation or information which is not privileged or otherwise
protected from disclosure and which is reasonably available to Indemnitee and
reasonably necessary to such determination. 
Any Expenses incurred by Indemnitee in so cooperating with the person,
persons or entity making such determination shall be borne by the Company
(irrespective of the determination as to Indemnitee’s entitlement to
indemnification) and the Company shall indemnify and hold Indemnitee harmless
therefrom.

 

Section 8.               Presumptions
and Effect of Certain Proceedings.

 

(a)           In making a determination with
respect to entitlement to indemnification hereunder, the person or persons or
entity making such determination shall presume that Indemnitee is entitled to
indemnification under this Agreement if Indemnitee has submitted a request for
indemnification in accordance with Section 7(a) of this Agreement,
and the Company shall have the burden of proof to overcome that presumption in
connection with the making of any determination contrary to that presumption.

 

(b)           The termination of any Proceeding by
judgment, order, settlement, conviction, a plea of nolo  contendere
or its equivalent, or an entry of an order of probation prior to judgment, does
not create a presumption that Indemnitee did not meet the requisite standard of
conduct described herein for indemnification.

 

Section 9.               Remedies
of Indemnitee.

 

(a)           If (i) a determination is made
pursuant to Section 7 that Indemnitee is not entitled to indemnification
under this Agreement, (ii) advance of Expenses is not timely made pursuant to Section 6,
(iii) no determination of entitlement to indemnification shall have been made
pursuant to Section 7(b) within 30 days after receipt by the
Company of the request for indemnification, (iv) payment of indemnification is
not made pursuant to Section 5 within ten days after receipt by the
Company of a written request therefor, or (v) payment of indemnification is not
made within ten days after a determination has been made that Indemnitee is
entitled to indemnification, Indemnitee shall be entitled to an adjudication in
an appropriate court of the State of Maryland, or in any other court of
competent jurisdiction, of his entitlement to such indemnification or advance of
Expenses.  Alternatively, Indemnitee, at
his option, may seek an award in arbitration to be conducted by a single
arbitrator pursuant to the commercial

 

4

 

Arbitration
Rules of the American Arbitration Association. 
Indemnitee shall commence such proceeding seeking an adjudication or an
award in arbitration within 180 days following the date on which Indemnitee
first has the right to commence such proceeding pursuant to this Section 9(a);
provided, however, that the foregoing clause shall not apply in
respect of a proceeding brought by Indemnitee to enforce his rights under Section 5.

 

(b)           In any judicial proceeding or
arbitration commenced pursuant to this Section 9, the Company shall
have the burden of proving that Indemnitee is not entitled to indemnification
or advance of Expenses, as the case may be.

 

(c)           If a determination shall have been
made pursuant to Section 7(b) that Indemnitee is entitled to
indemnification, the Company shall be bound by such determination in any
judicial proceeding or arbitration commenced pursuant to this Section 9,
absent a misstatement by Indemnitee of a material fact, or an omission of a
material fact necessary to make Indemnitee’s statement not materially
misleading, in connection with the request for indemnification.

 

(d)           In the event that Indemnitee,
pursuant to this Section 9, seeks a judicial adjudication of or an
award in arbitration to enforce his rights under, or to recover damages for
breach of, this Agreement, Indemnitee shall be entitled to recover from the
Company, and shall be indemnified by the Company for, any and all Expenses
incurred by him in such judicial adjudication or arbitration.  If it shall be determined in such judicial
adjudication or arbitration that Indemnitee is entitled to receive part but not
all of the indemnification or advance of Expenses sought, the Expenses incurred
by Indemnitee in connection with such judicial adjudication or arbitration
shall be appropriately prorated.

 

Section 10.             Defense
of the Underlying Proceeding.

 

(a)           Indemnitee shall notify the Company
promptly upon being served with or receiving any summons, citation, subpoena,
complaint, indictment, information, notice, request or other document relating
to any Proceeding which may result in the right to indemnification or the
advance of Expenses hereunder; provided, however, that the
failure to give any such notice shall not disqualify Indemnitee from the right,
or otherwise affect in any manner any right of Indemnitee, to indemnification
or the advance of Expenses under this Agreement unless the Company’s ability to
defend in such Proceeding or to obtain proceeds under any insurance policy is
materially and adversely prejudiced thereby, and then only to the extent the
Company is thereby actually so prejudiced.

 

(b)           Subject to the provisions of the last
sentence of this Section 10(b) and of Section 10(c)
below, the Company shall have the right to defend Indemnitee in any Proceeding
which may give rise to indemnification hereunder; provided, however,
that the Company shall notify Indemnitee of any such decision to defend within
15 calendar days following receipt of notice of any such Proceeding under Section 10(a)
above.  The Company shall not, without
the prior written consent of Indemnitee, which shall not be unreasonably
withheld or delayed, consent to the entry of any judgment against Indemnitee or
enter into any settlement or compromise which (i) includes an admission of
fault of Indemnitee or (ii) does not include, as an unconditional term thereof,
the full release of Indemnitee from all liability in respect of such
Proceeding, which

 

5

 

release
shall be in form and substance reasonably satisfactory to Indemnitee.  This Section 10(b) shall not
apply to a Proceeding brought by Indemnitee under Section 9 above
or Section 14.

 

(c)           Notwithstanding the provisions of Section 10(b),
if in a Proceeding to which Indemnitee is a party by reason of Indemnitee’s
Corporate Status, (i) Indemnitee reasonably concludes, based upon an opinion of
counsel approved by the Company, which approval shall not be unreasonably
withheld, that he may have separate defenses or counterclaims to assert with
respect to any issue which may not be consistent with other defendants in such
Proceeding, (ii) Indemnitee reasonably concludes, based upon an opinion of
counsel approved by the Company, which approval shall not be unreasonably
withheld, that an actual or apparent conflict of interest or potential conflict
of interest exists between Indemnitee and the Company, or (iii) the Company
fails to assume the defense of such Proceeding in a timely manner, Indemnitee
shall be entitled to be represented by separate legal counsel of Indemnitee’s
choice, subject to the prior approval of the Company, which shall not be
unreasonably withheld, at the expense of the Company.  In addition, if the Company fails to comply with any of its
obligations under this Agreement or in the event that the Company or any other
person takes any action to declare this Agreement void or unenforceable, or
institutes any Proceeding to deny or to recover from Indemnitee the benefits
intended to be provided to Indemnitee hereunder, Indemnitee shall have the
right to retain counsel of Indemnitee’s choice, subject to the prior approval
of the Company, which shall not be unreasonably withheld, at the expense of the
Company (subject to Section 9(d)), to represent Indemnitee in
connection with any such matter.

 

Section 11.             Non-Exclusivity;
Survival of Rights.

 

(a)           The rights of indemnification and
advance of Expenses as provided by this Agreement shall not be deemed exclusive
of any other rights to which Indemnitee may at any time be entitled under
applicable law, the Declaration of Trust or Bylaws of the Company, any
agreement or a resolution of the shareholders entitled to vote generally in the
election of trustees or of the Board of Trustees, or otherwise.  No amendment, alteration or repeal of this
Agreement or of any provision hereof shall limit or restrict any right of
Indemnitee under this Agreement in respect of any action taken or omitted by
such Indemnitee in his Corporate Status prior to such amendment, alteration or
repeal.

 

(b)           In the event of any payment under
this Agreement, the Company shall be subrogated to the extent of such payment
to all of the rights of recovery of Indemnitee, who shall execute all papers
required and take all action necessary to secure such rights, including
execution of such documents as are necessary to enable the Company to bring
suit to enforce such rights.

 

(c)           The Company shall not be liable under
this Agreement to make any payment of amounts otherwise indemnifiable hereunder
if and to the extent that Indemnitee has otherwise actually received such
payment under any insurance policy, contract, agreement or otherwise.

 

Section 12.             Duration
of Agreement; Binding Effect.

 

(a)           This Agreement shall continue until
and terminate ten years after the date that Indemnitee shall have ceased to
serve as a director, trustee, officer, employee, or agent of the

 

6

 

Company
or of any other corporation, partnership, joint venture, trust, employee
benefit plan or other enterprise which Indemnitee served at the request of the
Company; provided, however, that the rights of Indemnitee
hereunder shall continue until the final termination of any Proceeding then
pending in respect of which Indemnitee is granted rights of indemnification or
advance of Expenses hereunder and of any proceeding commenced by Indemnitee
pursuant to Section 9 relating thereto.

 

(b)           The indemnification and advance of
Expenses provided by, or granted pursuant to, this Agreement shall be binding
upon and be enforceable by the parties hereto and their respective successors
and assigns (including any direct or indirect successor by purchase, merger,
consolidation or otherwise to all or substantially all of the business or
assets of the Company), shall continue as to an Indemnitee who has ceased to be
a director, trustee, officer, employee or agent of the Company or of any other
corporation, partnership, joint venture, trust, employee benefit plan or other
enterprise which such person is or was serving at the written request of the
Company, and shall inure to the benefit of Indemnitee and his or her spouse,
assigns, heirs, devisees, executors and administrators and other legal
representatives.

 

(c)           The Company shall require and cause
any successor (whether direct or indirect by purchase, merger, consolidation or
otherwise) to all, substantially all or a substantial part, of the business
and/or assets of the Company, by written agreement in form and substance
satisfactory to Indemnitee, expressly to assume and agree to perform this
Agreement in the same manner and to the same extent that the Company would be
required to perform if no such succession had taken place.

 

Section 13.             Severability.  If any provision or provisions of this
Agreement shall be held to be invalid, illegal or unenforceable for any reason
whatsoever: (a) the validity, legality and enforceability of the remaining
provisions of this Agreement (including, without limitation, each portion of
any section of this Agreement containing any such provision held to be
invalid, illegal or unenforceable that is not itself invalid, illegal or
unenforceable) shall not in any way be affected or impaired thereby; and (b) to
the fullest extent possible, the provisions of this Agreement (including,
without limitation, each portion of any section of this Agreement
containing any such provision held to be invalid, illegal or unenforceable,
that is not itself invalid, illegal or unenforceable) shall be construed so as
to give effect to the intent manifested thereby.

 

Section 14.             Limitation
and Exception to Right of Indemnification or Advance of Expenses.  Notwithstanding any other provision of this
Agreement, (a) any indemnification or advance of Expenses to which Indemnitee
is otherwise entitled under the terms of this Agreement shall be made only to
the extent such indemnification or advance of Expenses does not conflict with
applicable Maryland law and (b) Indemnitee shall not be entitled to
indemnification or advance of Expenses under this Agreement with respect to any
Proceeding brought by Indemnitee, unless (i) the Proceeding is brought to
enforce indemnification under this Agreement or otherwise or (ii) the Company’s
Bylaws, as amended, the Declaration of Trust, a resolution of the shareholders
entitled to vote generally in the election of trustees or of the Board of
Trustees or an agreement approved by the Board of Trustees to which the Company
is a party expressly provide otherwise.

 

7

 

Section 15.             Counterparts.  This Agreement may be executed in one or
more counterparts, each of which shall for all purposes be deemed to be an
original but all of which together shall constitute one and the same
Agreement.  One such counterpart signed
by the party against whom enforceability is sought shall be sufficient to
evidence the existence of this Agreement.

 

Section 16.             Headings.  The headings of the paragraphs of this
Agreement are inserted for convenience only and shall not be deemed to
constitute part of this Agreement or to affect the construction thereof.

 

Section 17.             Modification
and Waiver.  No supplement,
modification or amendment of this Agreement shall be binding unless executed in
writing by both of the parties hereto. 
No waiver of any of the provisions of this Agreement shall be deemed or
shall constitute a waiver of any other provisions hereof (whether or not
similar) nor shall such waiver constitute a continuing waiver.

 

Section 18.             Notices.  Any notice, report or other communication
required or permitted to be given hereunder shall be in writing unless some
other method of giving such notice, report or other communication is accepted
by the party to whom it is given, and shall be given by being delivered at the
following addresses to the parties hereto:

 

(a)           If to Indemnitee, to:  The address set forth on the signature page
hereto.

 

(b)           If to the Company to:

 

Senior Housing Properties Trust

400 Centre Street

Newton, Massachusetts 02458

Attn:  Secretary

 

or to such other address as may have been furnished to Indemnitee by
the Company or to the Company by Indemnitee, as the case may be.

 

Section 19.             Governing
Law.  The parties agree that this
Agreement shall be governed by, and construed and enforced in accordance with,
the laws of the State of Maryland, without regard to its conflicts of laws
rules.

 

 

[SIGNATURE PAGE FOLLOWS]

 

8

 

IN WITNESS WHEREOF, the parties hereto have
executed this Agreement on the day and year first above written.

 

 

	
  ATTEST:

  	
  SENIOR HOUSING PROPERTIES TRUST

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Jennifer B. Clark

  	
   

  	
  By: 

  	
  /s/ John R. Hoadley

  	
  (SEAL)

  
	
   

  	
  Name: John R. Hoadley

  
	
   

  	
  Title:  Treasurer and Chief
  Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  WITNESS:

  	
  INDEMNITEE

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Judith A. Stapleton

  	
   

  	
  /s/ David J. Hegarty

  	
   

  
	
   

  	
  Name:  David J. Hegarty

  
	
   

  	
  Address: [address omitted]

  
						

 

9

 

EXHIBIT A

 

FORM OF UNDERTAKING TO REPAY
EXPENSES ADVANCED

 

The Board of Trustees of Senior Housing Properties Trust

 

Re:  Undertaking to Repay
Expenses Advanced

 

Ladies and Gentlemen:

 

This undertaking is being provided pursuant to that certain Indemnification
Agreement dated
                   ,
2004, by and between Senior Housing Properties Trust (the “Company”) and the
undersigned Indemnitee (the “Indemnification Agreement”), pursuant to which I
am entitled to advance of expenses in connection with [Description of Proceeding]
(the “Proceeding”).

 

Terms used herein and not otherwise defined shall have the meanings
specified in the Indemnification Agreement.

 

I am subject to the Proceeding by reason of my Corporate Status or by
reason of alleged actions or omissions by me in such capacity.  I hereby affirm that at all times, insofar
as I was involved as [a trustee]  [an officer] of the Company,
in any of the facts or events giving rise to the Proceeding, I (1) acted in
good faith and honestly, (2) did not receive any improper personal benefit in
money, property or services and (3) in the case of any criminal proceeding, had
no reasonable cause to believe that any act or omission by me was unlawful.

 

In consideration of the advance of expenses by the Company for
reasonable attorney’s fees and related expenses incurred by me in connection
with the Proceeding (the “Advanced Expenses”), I hereby agree that if, in
connection with the Proceeding, it is established that (1) an act or omission
by me was material to the matter giving rise to the Proceeding and (a) was
committed in bad faith or (b) was the result of active and deliberate
dishonesty or (2) I actually received an improper personal benefit in money,
property or services or (3) in the case of any criminal proceeding, I had
reasonable cause to believe that the act or omission was unlawful, then I shall
promptly reimburse the portion of the Advanced Expenses relating to the claims,
issues or matters in the Proceeding as to which the foregoing findings have been
established and which have not been successfully resolved as described in Section 5
of the Indemnification Agreement.  To
the extent that Advanced Expenses do not relate to a specific claim, issue or
matter in the Proceeding, I agree that such Expenses shall be allocated on a
reasonable and proportionate basis.

 

IN WITNESS WHEREOF, I have executed this Affirmation and Undertaking on
this         day of
                                      ,
200     .

 

 

WITNESS:

 

	
   

  	
   

  	
   

  	
  (SEAL)

  

 

 

Schedule to Exhibit 10.4

 

The following individuals are parties to
Indemnification Agreements with the Company which are substantially identical
in all material respects to the representative Indemnification Agreement filed
herewith and are dated as of the respective dates listed below.  The other Indemnification Agreements are
omitted pursuant to Instruction 2 to Item 601 of Regulation S-K.

 

	
  Name of Signatory

  	
   

  	
  Date

  
	
  David J. Hegarty

  	
   

  	
  March 10, 2004

  
	
  John R. Hoadley

  	
   

  	
  March 10, 2004

  
	
  Frank J. Bailey

  	
   

  	
  March 10, 2004

  
	
  John L. Harrington

  	
   

  	
  March 10, 2004

  
	
  Gerard M. Martin

  	
   

  	
  March 10, 2004

  
	
  Barry M. Portnoy

  	
   

  	
  March 10, 2004

  
	
  Frederick N. Zeytoonjian

  	
   

  	
  March 10, 2004

  
	
  William J. Sheehan

  	
   

  	
  May 7, 2004Exhibit
10.1

 

EXECUTION COPY

 

 

CREDIT
AGREEMENT

 

CHEVRON
PHILLIPS CHEMICAL COMPANY LLC,

a Borrower,

 

CHEVRON
PHILLIPS CHEMICAL COMPANY LP,

a Borrower,

 

BARCLAYS BANK
PLC,

Administrative Agent,

 

 

THE ROYAL BANK
OF SCOTLAND plc,

Syndication Agent,

 

 

SUMITOMO
MITSUI BANKING CORPORATION

 

THE BANK OF
NOVA SCOTIA

 

and,

 

THE BANK OF
TOKYO-MITSUBISHI, LTD.

Co-Documentation Agents

 

Dated as of
July 30, 2004

 

 

BARCLAYS
CAPITAL,

as Co-Lead Arranger and Co-Book Manager

 

THE ROYAL BANK
OF SCOTLAND plc,

as Co-Lead Arranger and Co-Book Manager

 

 

CREDIT AGREEMENT, dated
as of July 30, 2004, among CHEVRON PHILLIPS CHEMICAL COMPANY LLC, a Delaware
limited liability company (the “LLC”),
CHEVRON PHILLIPS CHEMICAL COMPANY LP, a Delaware limited partnership which is
wholly-owned, indirectly, by the LLC (the “LP”;
and together with the LLC, the “Borrowers” and, each, a “Borrower”), the several lenders from time to
time parties to this Agreement (collectively, the “Lenders”;
individually, a “Lender”), BARCLAYS
BANK PLC, as administrative agent (the “Administrative
Agent”), THE ROYAL BANK OF SCOTLAND plc, as syndication agent (the “Syndication Agent”), and Sumitomo Mitsui
Banking Corporation, The Bank of Nova Scotia and The Bank of Tokyo-Mitsubishi,
Ltd., as co-documentation agents (each a “Co-Documentation Agent” and
together the “Co-Documentation Agents”).

 

The parties hereto hereby
agree as follows:

 

SECTION 1.  DEFINITIONS

 

1.1          Defined Terms.  As used in this Agreement, the following
terms shall have the following meanings:

 

“ABR”: when used in reference to any Loan or
borrowing, refers to whether such Loan, or the Loans comprising such borrowing,
are bearing interest at a rate determined by reference to the Alternate Base
Rate.

 

“Administrative Agent”: as defined in the preamble.

 

“Administrative Agent-Related Person”: as
defined in subsection 8.3.

 

“Affiliate”: as to any Person, any other
Person that, directly or indirectly, is in control of, is controlled by, or is
under common control with, such Person. 
For purposes of this definition, “control” of a Person means the power,
directly or indirectly, either to (a) vote 10% or more of the securities having
ordinary voting power for the election of directors (or persons performing
similar functions) of such Person or (b) direct or cause the direction of the
management and policies of such Person, whether by contract or otherwise.

 

“Agent’s/Arranger’s Fees”: as defined in
subsection 2.9(c).

 

“Agreement”: this Credit Agreement, as
amended, supplemented or otherwise modified from time to time.

 

“Alternate Base Rate”: for any day, a rate per
annum equal to the greater of (a) the Prime Rate in effect on such day or (b)
the Federal Funds Effective Rate in effect on such day plus 1⁄2 of 1%.  Any change in the Alternate Base Rate due to
a change in the Prime Rate or the Federal Funds Effective Rate shall be
effective from and including the effective date of such change in the Prime
Rate or the Federal Funds Effective Rate, respectively. “Federal Funds
Effective Rate”: as used in this definition, for any day, the weighted average
(rounded upwards, if necessary, to the next 1/100 of 1%) of the rates on
overnight Federal funds transactions with members of the Federal Reserve System
arranged by Federal funds brokers, as published on the next succeeding Business
Day by the Federal Reserve Bank of New York, or, if such rate is not so
published for any day that is a Business Day, the average (rounded upwards, if
necessary, to

 

 

the next 1/100 of
1%) of the quotations for such day for such transactions received by the
Administrative Agent from three Federal funds brokers of recognized standing
selected by it.  “Prime Rate”: as used
in this definition, the rate of interest per annum publicly announced from time
to time by Barclays Bank PLC as its “prime rate” in New York City. Such “prime
rate” is a rate set by Barclays Bank PLC, based upon various factors, including
Barclays Bank PLC’s cost and desired return, general economic conditions and
other factors, and is used as a reference point for pricing some loans, which
may be priced at, above, or below such announced rate.  Any change in such rate announced by
Barclays Bank PLC, shall take effect at the opening of business on the day
specified in the public announcement of such change.

 

“Applicable Commitment Fee Rate”: the
“Applicable Commitment Fee Rate” determined in accordance with the Pricing
Grid.

 

“Applicable Eurodollar Margin”: for each
Eurodollar Loan, the applicable rate per annum set forth on the Pricing Grid.

 

“Applicable Utilization Fee Rate”: the
“Applicable Utilization Fee Rate” determined in accordance with the Pricing
Grid.

 

“Assignment and Acceptance”: an Assignment and
Acceptance, substantially in the form of Exhibit B; collectively, the
“Assignments and Acceptances”.

 

“Available Commitment”: as to any Lender, at a
particular time, an amount equal to the excess, if any, of (a) the amount of
such Lender’s Commitment at such time, minus (b) the aggregate unpaid principal
amount at such time of all Loans of such Lender, and minus (c) an amount equal
to such Lender’s Commitment Percentage of the aggregate unpaid principal amount
at such time of all Same Day Loans, provided that for purposes of calculating
Available Commitments for purposes of subsection 2.9(a), such amount under
clauses (b) and (c) consisting of Same Day Loans shall be zero; collectively,
the “Available Commitments”.

 

“Benefited Lender”: as defined in Section 9.7.

 

“Borrower(s)”: as defined in the preamble.

 

“Borrowing Date”: any Business Day specified
in a notice pursuant to subsection 2.3 as a date on which a Borrower requests
the Lenders to make Loans hereunder.

 

“Business Day”: a day other than a Saturday,
Sunday or other day on which commercial banks in New York City or Houston,
Texas, are authorized or required by law to close, provided, that with respect
to notices and determinations in connection with, and payments of principal and
interest on, Eurodollar Loans, such day is also a day for trading by and
between banks in Dollar deposits in the interbank eurodollar market.

 

“Capital Stock”: with respect to any Person,
any and all shares, interests, participations, rights in or other equivalents
in the equity interests (however designated) in such Person, and any warrants
or options exercisable for, exchangeable for or convertible into such an equity
interest in such Person.

 

2

 

“ChevronTexaco”: ChevronTexaco Corporation, a
Delaware corporation.

 

“Closing Date”: July 30, 2004.

 

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

 

“Co-Documentation
Agent”: as defined in the preamble.

 

“Co-Lead Arranger”:
means either Barclays Capital, the investment banking division of Barclays Bank
PLC or The Royal Bank of Scotland plc, each a Co-Lead Arranger and together the
“Co-Lead Arrangers”).

 

“Commitment”: as to any Lender, its obligation
to make Loans to the Borrowers pursuant to subsection 2.1 and to make or
participate in Same Day Loans pursuant to subsection 2.4, in each case in an
aggregate amount not to exceed at any one time outstanding the amount set forth
opposite such Lender’s name on Schedule I, as such amount may change from time
to time as provided herein; provided that the Commitments shall not at any time
exceed $800,000,000 in the aggregate; collectively, the “Commitments”; provided
further, that the Commitments with respect to Same Day Loans shall not at any
time exceed $100,000,000 in the aggregate.

 

“Commitment Fee”: as defined in subsection
2.9(a); collectively, the “Commitment Fees”.

 

“Commitment Percentage”: at a particular time,
as to any Lender, the percentage of the aggregate Commitments in effect at such
time constituted by such Lender’s Commitment.

 

“Commitment Period”: the period from and
including the Closing Date to but not including the Termination Date or such
earlier date as all the Commitments shall terminate as provided herein.

 

“Commitment Utilization Percentage”: on any
day the percentage equivalent to a fraction (a) the numerator of which is the
sum of the aggregate outstanding principal amount of the Loans, and (b) the
denominator of which is the sum of the aggregate Commitments (or, on any day
after termination of the Commitments pursuant to Section 7, the aggregate
Commitments in effect immediately preceding such termination).

 

“Common Stock”: of any Person means Capital
Stock of such Person that does not rank prior, as to the payment of dividends
or as to the distribution of assets upon any voluntary or involuntary
liquidation, dissolution or winding-up of such Person, to shares of Capital
Stock of any other class of such Person.

 

“Confidential Information”: as defined in
subsection 9.4.

 

“ConocoPhillips”:
ConocoPhillips, a Delaware corporation.

 

“Consolidated Net Assets”: at any date, the
total amount (without duplication) of assets of the LLC and its Subsidiaries
after deducting therefrom (a) all current liabilities (without duplication) of
the LLC and its Subsidiaries (excluding any thereof which are by their terms

 

3

 

extendible or
renewable at the option of the LLC or the applicable Subsidiary, as the case
may be, to a time more than 12 months after the time as of which the amount
thereof is being computed), and (b) total prepaid expenses and deferred charges
of the LLC and its Subsidiaries.

 

“Debt”: as to any Person, at any date, without
duplication, (i) all obligations of such Person for borrowed money, (ii) all
obligations of such Person evidenced by bonds, debentures, notes or other
similar instruments, (iii) all obligations of such Person to pay the deferred
purchase price of property or services, except trade accounts payable arising
in the ordinary course of business, (iv) all obligations of such Person as
lessee under capital leases, and (v) all Debt of others Guaranteed by such
Person.

 

“Default”: any of the events specified in
Section 7, whether or not any requirement for the giving of notice, the lapse
of time, or both, or any other condition, has been satisfied.

 

“Dollars” and “$”:
dollars in lawful currency of the United States of America.

 

“Early Commitment Termination Date”: as
defined in subsection 2.5(b).

 

“EDGAR”: as defined in subsection 5.2(a).

 

“Environmental Laws”: mean any and all
principles of common law and any and all laws, statutes, ordinances, rules,
regulations, orders, decrees, judgments, injunctions or binding agreements of
any Governmental Authority pertaining to the protection or reclamation of the
natural environment or to Hazardous Materials in any and all jurisdictions in
which the Borrowers and their Subsidiaries own property or conduct business,
including, without limitation, the Clean Air Act, the Comprehensive
Environmental Response, Compensation, and Liability Act of 1980, the Federal
Water Pollution Control Act, the Occupational Safety and Health Act of 1970,
the Resource Conservation and Recovery Act of 1976, the Safe Drinking Water
Act, the Toxic Substances Control Act, the Hazardous & Solid Waste
Amendments Act of 1984, the Superfund Amendments and Reauthorization Act of
1986, the Hazardous Materials Transportation Act, the Oil Pollution Act of
1990, any state or local laws implementing or substantially equivalent to the
foregoing federal laws, and all other environmental conservation or protection
laws, all as amended from time to time.

 

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

 

“ERISA Affiliate”: any trade or business
(whether or not incorporated) that, together with either Borrower, is treated
as a single employer under Section 414 of the Code.

 

“ERISA Event”: (a) any “reportable event”, as
defined in Section 4043 of ERISA or the regulations issued thereunder with
respect to a Plan (other than an event for which the 30-day notice period is
waived under the regulations); (b) the existence with respect to any Plan of an
“accumulated funding deficiency” (as defined in Section 412 of the Code or
Section 302 of ERISA), whether or not waived; (c) the filing pursuant to
Section 412(d) of the Code or Section 303(d) of ERISA of an application for a waiver
of the minimum funding standard with respect to any Plan; (d) the incurrence by
either Borrower or any of its ERISA Affiliates of any liability under Title IV
of ERISA with respect to the termination of any Plan; (e) the receipt by either

 

4

 

Borrower or any
ERISA Affiliate from the PBGC or a plan administrator of any notice relating to
an intention to terminate any Plan or Plans or to appoint a trustee to
administer any Plan; (f) the incurrence by either Borrower or any of its ERISA
Affiliates of any liability with respect to the withdrawal or partial
withdrawal from any Plan or Multiemployer Plan; or (g) the receipt by either
Borrower or any ERISA Affiliate of any notice, or the receipt by any Multiemployer
Plan from either Borrower or any ERISA Affiliate of any notice, concerning the
imposition of Withdrawal Liability or a determination that a Multiemployer Plan
is, or is expected to be, insolvent or in reorganization, within the meaning of
Title IV of ERISA.

 

“Eurodollar”: when used in reference to any
Loan or borrowing, refers to whether such Loan, or the Loans comprising such
borrowing, are bearing interest at a rate determined by reference to the
Eurodollar Rate.

 

“Eurodollar Rate”: with respect to an Interest
Period pertaining to any Eurodollar Loan, the rate of interest determined on
the basis of the rate for deposits in Dollars for a period equal to such
Interest Period commencing on the first day of such Interest Period appearing
on Page 3750 of the Telerate screen as of 11:00 A.M., London time, two Business
Days prior to the beginning of such Interest Period.  In the event that such rate does not appear on such page of the
Telerate screen (or otherwise on the Telerate Service), the “Eurodollar Rate”
with respect to such Eurodollar borrowing for such Interest Period shall be the
average of the rates at which dollar deposits of $5,000,000 and for a maturity
comparable to such Interest Period are offered by the principal London offices
of the Reference Banks (or, if any Reference Bank does not at the time maintain
a London office, the principal London office of any affiliate of such Reference
Bank) for immediately available funds in the London interbank market at
approximately 11:00 a.m., London time, two Business Days prior to the
commencement of such Interest Period.

 

“Event of Default”: means any of the events
described in Section 7.

 

“Excess Utilization Day”: each day on which
the Commitment Utilization Percentage exceeds 50%.

 

“Fee Letters”: as defined in subsection
2.9(c).

 

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

 

“Governmental Authority”: any nation or
government, any state or other political subdivision thereof and any entity
exercising executive, legislative, judicial, regulatory or administrative
functions of or pertaining to government.

 

“Guarantee”: as to any Person, any obligation,
contingent or otherwise, of such Person directly or indirectly guaranteeing any
Debt or other obligation of any other Person and, without limiting the
generality of the foregoing, any obligation, direct or indirect, contingent or
otherwise, of such Person (i) to purchase or pay (or advance or supply funds
for the purchase or payment of) such Debt or other obligation (whether arising
by virtue of partnership arrangements, by agreement to keep-well, to purchase
assets, goods, securities or services, to take-or-pay, or to maintain financial
statement conditions or otherwise) or (ii) entered into for the

 

5

 

purpose of
assuring in any other manner the obligee of such Debt or other obligation of
the payment thereof or to protect such obligee against loss in respect thereof
(in whole or in part), provided that the term “Guarantee” shall not include
endorsements for collection or deposit in the ordinary course of business or
performance, surety and similar bonds or completion guarantees provided in the
ordinary course of business.  The term
“Guarantee” used as a verb has a corresponding meaning.

 

“Hazardous Materials”: means (a) any
chemicals, materials or substances defined or as included in the definition of
“hazardous substances,” “hazardous materials,” “toxic substances,” or words of
similar import, under any Environmental Law; (b) radioactive materials (other
than naturally occurring radioactive materials below threshold regulated
levels), asbestos in any form that is or could be friable, polychlorinated
biphenyls, radon, mercury, lead-based paint; and (c) regulated constituents or
substances in concentrations or levels that exceed numeric or risk-based
standards established pursuant to Environmental Laws.

 

“Highest Lawful Rate”: with respect to each
Lender, the maximum nonusurious interest rate, if any, that at any time or from
time to time may be contracted for, taken, reserved, charged or received with
respect to any Loan hereunder or on other amounts, if any, due to such Lender
pursuant to this Agreement or any Note under applicable law.  “Applicable law”: as used in this
definition, with respect to each Lender, that law in effect from time to time
that permits the charging and collection by such Lender of the highest
permissible lawful, nonusurious rate of interest on the transactions herein
contemplated including, without limitation, the laws of each State that may be
held to be applicable, and of the United States of America, if applicable.

 

“Interest Payment Date”: (a)  as to any ABR Loan, the last day of each
March, June, September and December, (b) as to any Eurodollar Loan in respect
of which the applicable Borrower has selected an Interest Period of one, two or
three months, the last day of such Interest Period, (c) as to any Eurodollar
Loan in respect of which the applicable Borrower has selected an Interest
Period longer than 3 months, each date which is three months, or a whole
multiple thereof, from the first day of such Interest Period and the last day
of such Interest Period, and (d) with respect to any Same Day Loan, the last
day of each Interest Period.

 

“Interest Period”: (a) with respect to any
Eurodollar Loan:

 

(i)    initially, the period
commencing on the Borrowing Date or conversion date, as the case may be, with
respect to such Eurodollar Loan and ending one, two, three or six months thereafter,
as selected by the applicable Borrower in its notice of borrowing or notice of
conversion, as the case may be, given pursuant to subsection 2.3 or 2.7,
respectively; and

 

(ii)   thereafter, each period
commencing on the last day of the next preceding Interest Period applicable to
such Eurodollar Loan, and ending one, two, three or six months thereafter, as
selected by the applicable Borrower in its notice of continuation given
pursuant to subsection 2.7;

 

(b)           with respect to any ABR Loan, the period commencing on
the Borrowing Date or conversion date, as the case may be, with respect to such
ABR Loan and ending on the

 

6

 

day
next preceding the date on which such ABR Loan is converted into a Eurodollar
Loan pursuant to subsection 2.7;

 

(c)           with respect to any Same Day Loan, the period
commencing on the Borrowing Date with respect to such Same Day Loan and ending
on a Business Day not later than 15 days after such Borrowing Date as selected
by the applicable Borrower in its notice of borrowing or if the applicable
Borrower does not specify an Interest Period in its notice of borrowing, ending
on the first Business Day after such Borrowing Date;

 

provided, that all of the
foregoing provisions relating to Interest Periods are subject to the following:

 

(i)            if any Interest Period
would otherwise end on a day which is not a Business Day, that Interest Period
shall be extended to the next succeeding Business Day, unless, with respect to
Eurodollar Loans, the result of such extension would be to carry such Interest
Period into another calendar month in which event such Interest Period shall
end on the immediately preceding Business Day;

 

(ii)           any Interest Period
pertaining to a Eurodollar 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 end on the last
Business Day of a calendar month; and

 

(iii)          notwithstanding anything
to the contrary in this definition of “Interest Period”, any Interest Period
that would otherwise extend beyond the Termination Date shall end on the
Termination Date.

 

“Investment Grade Rating”: ratings of at least
BBB- by S&P (with not less than a stable outlook) and Baa3 by Moody’s.

 

“Joint Venture”: any Person in which either
Borrower or any Subsidiary owns an equity interest, but which is not a
Subsidiary of either Borrower.

 

“Lender”: as defined in the preamble hereto;
collectively, the “Lenders”.  Unless the
context otherwise requires, the term “Lenders” includes the Same Day Lender.

 

“Lien”: with respect to any asset, any
mortgage, lien, pledge, charge, security interest or encumbrance of any kind in
respect of such asset.  For the purposes
of this Agreement, a Borrower or any Subsidiary shall be deemed to own subject
to a Lien any asset which it has acquired or holds subject to the interest of a
vendor or lessor under any conditional sale agreement, capital lease or other
title retention agreement relating to such asset.

 

“LLC”: as defined in the preamble.

 

“Loans”: any loan made by a Lender (including
the Same Day Lender) hereunder; each, a “Loan”.

 

“LP”: as defined in the preamble.

 

7

 

“Material Subsidiary”: at any time, any
Subsidiary which as of such time meets the definition of a “significant
subsidiary” contained as of the date hereof in Regulation S-X of the Securities
and Exchange Commission.

 

“Money Market Rate”: for any Interest Period,
with respect to any Same Day Loan, the fixed rate of interest per annum quoted
by the Administrative Agent to the applicable Borrower to be the fixed rate of
interest for such Same Day Loan at approximately 3:00 P.M., New York City time,
on the relevant Borrowing Date.

 

“Moody’s”: Moody’s Investors Service, Inc.,
and its successors.

 

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

 

“Non-Recourse Debt”:
the Debt of any Joint Venture, provided that in all circumstances recourse of the
creditor, or any agent trustee, receiver, or other person acting on behalf of
such creditor in respect of such Debt, for the payment of such Debt or any
judgment in respect thereof is limited to the assets of such Joint Venture.

 

“Non-U.S. Lender”: as defined in subsection
2.16(b).

 

“Note”: as defined in subsection 2.2(e);
collectively, the “Notes”.

 

“Participant”: as defined in subsection
9.6(b).

 

“Permitted Encumbrances”: (a) Liens imposed by
law for taxes that are not yet due or are being contested in compliance with
subsection 5.1; (b) carriers’, warehousemen’s, mechanics’, materialmen’s,
repairmen’s and other like Liens imposed by law, arising in the ordinary course
of business and securing obligations that are not overdue by more than 30 days
or are being contested in compliance with subsection 5.1; (c) pledges and
deposits made in the ordinary course of business in compliance with workers’
compensation, unemployment insurance and other social security laws or
regulations; (d) deposits to secure the performance of bids, trade contracts,
leases, statutory obligations, surety and appeal bonds, performance bonds and
other obligations of a like nature, in each case in the ordinary course of
business; (e) easements, zoning restrictions, rights-of-way and similar
encumbrances on real property imposed by law or arising in the ordinary course
of business that do not secure any monetary obligations and do not materially
detract from the value of the affected property or interfere with the ordinary
conduct of business of the Borrowers or any of their respective Subsidiaries;
(f) any Lien arising out of judgments or awards against a Borrower or any
Subsidiary with respect to which such Borrower or such Subsidiary at the time
shall be prosecuting an appeal or proceedings for review and with respect to
which it shall have secured a stay of execution pending such appeal or
proceedings for review to the extent such proceeding has not resulted in an
Event of Default under subsection 7(i); and (g) Liens not otherwise covered by
clauses (a) - (f) inclusive which are incidental to the conduct of the business
of the Borrowers and their Subsidiaries or the ownership of their assets which
do not in the aggregate materially detract from the value of such assets or
materially impair their use in the operation of such Borrower’s or such
Subsidiary’s business; provided that the term “Permitted Encumbrances” shall
not include any Lien securing Debt.

 

8

 

“Person”: an individual, partnership,
corporation, limited liability company, business trust, joint stock company,
trust, unincorporated association, joint venture, Governmental Authority or
other entity of whatever nature.

 

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

 

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

 

“Pricing Grid”: the Pricing Grid attached
hereto as Annex A.

 

“Prior 364-Day Credit Agreement”: as defined
in subsection 4.1(i)(i).

 

“Prior Three-Year Credit Agreement”: as
defined in subsection 4.1(i)(ii).

 

“Purchasing Lender”: as defined in subsection
9.6(c).

 

“Reference Banks”: Barclays Bank PLC and such
other banks acceptable to the Borrowers designated by the Administrative Agent
from time to time.

 

“Register”: as defined in subsection 9.6(d).

 

“Required Lenders”: at a particular time, (a)
prior to the Termination Date, Lenders, the Commitment Percentages of which
aggregate more than 50%, and (b) if the Commitments have been terminated and
there are Loans outstanding, Lenders holding Loans aggregating more than 50% of
the aggregate outstanding principal amount of Loans.

 

“S&P”: Standard & Poor’s Ratings Service,
a division of the McGraw-Hill Companies, Inc., and its successors.

 

“Same Day Lender”: Barclays Bank PLC, in its
capacity as lender of Same Day Loans hereunder.

 

“Same Day Loan”: a Loan made pursuant to
subsection 2.4.

 

“Senior Debt”: the LLC’s and LP’s joint and
several senior unsecured, non-credit enhanced, long term debt for which a
rating has been established by Moody’s and/or S&P as provided in the
Pricing Grid.

 

“Subsidiary”: as to each Borrower, any
corporation, partnership, limited liability company or other entity of which
shares of stock or other ownership interests having ordinary voting power
(other than stock or such other ownership interests having such power only by
reason of the happening of a contingency) to elect a majority of the board of
directors or other

 

9

 

Persons performing
similar functions are at the time directly or indirectly owned by such
Borrower.

 

“Successor”: as defined in subsection 6.2.

 

“Syndication Agent”: as defined in the
preamble.

 

“Termination Date”: July 29, 2009.

 

“Tranche”: the collective reference to
Eurodollar Loans, the Interest Periods with respect to all of which begin on
the same date and end on the same later date (whether or not the Loans
comprising any such Tranche were originally made on the same day).

 

“Transferee”: as defined in subsection 9.4.

 

“Transfer Effective Date”: as defined in each
Assignment and Acceptance.

 

“Type”: as to any Loan its nature as a
Eurodollar Loan, an ABR Loan or a Same Day Loan.

 

“Voting Stock”: any class or classes of
Capital Stock pursuant to which the holders thereof have the general voting
power under ordinary circumstances to elect at least a majority of the board of
directors, managers or trustees of any Person (irrespective of whether or not,
at the time, stock of any other class or classes shall have, or might have,
voting power by reason of the happening of any contingency).

 

1.2          Other Definitional Provisions.  (a) 
Unless otherwise specified therein, all terms defined in this Agreement
shall have the defined meanings when used in any Notes or any certificate or
other document made or delivered pursuant hereto.

 

(b)           As
used herein and in any Notes, and any certificate or other document made or
delivered pursuant hereto, accounting terms relating to each Borrower and its
respective Subsidiaries not defined in subsection 1.1 and accounting terms
partly defined in subsection 1.1, to the extent not defined, shall have the
respective meanings given to them under GAAP.

 

(c)           The
words “hereof,” “herein” and “hereunder” and words of similar import when used
in this Agreement shall refer to this Agreement as a whole and not to any
particular provision of this Agreement, and section, subsection, schedule and
exhibit references are to this Agreement unless otherwise specified.

 

(d)           The
meanings given to terms defined herein shall be equally applicable to both the
singular and plural forms of such terms.

 

SECTION 2.  AMOUNT AND TERMS OF COMMITMENTS

 

2.1          Commitment.  (a) Subject to the terms and conditions
hereof, each Lender severally agrees to make Loans to the Borrowers from time
to time during the Commitment Period in an aggregate principal amount at any
one time outstanding which, when added to such

 

10

 

Lender’s
Commitment Percentage of the outstanding Same Day Loans, does not exceed the
amount of such Lender’s then current Commitment; provided, that the aggregate
amount of the Loans outstanding shall not at any time exceed the aggregate
amount of the Commitments.  During the
Commitment Period, each Borrower may use the Commitments by borrowing,
prepaying the Loans in whole or in part, and reborrowing, all in accordance
with the terms and conditions hereof.

 

(b)           The
Loans may from time to time be (i) Eurodollar Loans, (ii) ABR Loans, (iii) a
combination thereof, or (iv) Same Day Loans, as determined by the applicable
Borrower, and notified to the Administrative Agent in accordance with
subsection 2.3, 2.4 or 2.7; provided, that no Loan shall be made as a
Eurodollar Loan after the day that is one month prior to the Termination Date.

 

2.2          Repayment of Loans; Evidence of Debt.  (a) 
The Borrowers, jointly and severally, hereby unconditionally promise to
pay to the Administrative Agent for the account of each Lender the then unpaid
principal amount of the Loans of such Lender on the Termination Date (or such
earlier date on which the Loans become due and payable pursuant to Section
7).  The Borrowers, jointly and
severally, hereby unconditionally promise to the Same Day Lender to pay the
then unpaid principal amount of each Same Day Loan on the earlier of the
Termination Date and the first Business Day after the Borrowing Date for such
Same Day Loan or, if an Interest Period was selected in the applicable
Borrower’s notice of borrowing for such Same Day Loan, the last day of such
Interest Period.  The Borrowers, jointly
and severally, hereby further agree to pay interest on the unpaid principal
amount of the Loans from time to time outstanding from the date hereof until
payment in full thereof at the rates per annum, and on the dates, set forth in
subsection 2.10.

 

(b)           Each
Lender shall maintain in accordance with its usual practice an account or
accounts evidencing indebtedness of each Borrower to such Lender resulting from
each Loan of such Lender from time to time, including the amounts of principal
and interest payable and paid to such Lender from time to time under this
Agreement.

 

(c)           The
Administrative Agent shall maintain the Register pursuant to subsection 9.6(d)
in which shall be recorded with respect to each Borrower (i) the amount of each
Loan made hereunder, the Type thereof and each Interest Period applicable
thereto, (ii) the amount of any principal or interest due and payable or to become
due and payable from such Borrower to each Lender hereunder and (iii) both the
amount of any sum received by the Administrative Agent hereunder from such
Borrower and each Lender’s share thereof.

 

(d)           The
entries made in the Register and the accounts of each Lender maintained
pursuant to subsection 2.2(b) shall, to the extent permitted by applicable law,
be prima facie evidence of the existence and amounts of the obligations of each
Borrower therein recorded; provided, however, that the failure of any Lender or
the Administrative Agent to maintain the Register or any such account, or any
error therein, shall not in any manner affect the obligation of the Borrowers
to repay (with applicable interest) the Loans made to either Borrower by such
Lender in accordance with the terms of this Agreement.

 

11

 

(e)           The
Borrowers agree that, upon the request to the Administrative Agent by any
Lender, the Borrowers will execute and deliver to such Lender a promissory note
of the Borrowers evidencing the Loans of such Lender, substantially in the form
of Exhibit A with appropriate insertions as to date and principal amount (a “Note”).

 

2.3          Procedure for Revolving Credit Borrowing.  (a) 
Each Borrower may borrow under the Commitments during the Commitment
Period on any Business Day; provided, that the applicable Borrower shall give
the Administrative Agent irrevocable written notice, substantially in the form
of Exhibit F hereto, (i) prior to 12:00 P.M., New York City time, three
Business Days prior to the requested Borrowing Date, in the case of Eurodollar
Loans and (ii) prior to 12:00 P.M., New York City time, on the requested
Borrowing Date, in the case of ABR Loans, specifying (A) the amount to be
borrowed, (B) the requested Borrowing Date, (C) whether the borrowing is to be
a Eurodollar Loan, an ABR Loan, or a combination thereof and (D) the length of
the Interest Period for each Eurodollar Loan included in such notice.  If no election as to the Type of borrowing
is specified, then the requested borrowing shall be an ABR borrowing. If no
Interest Period is specified with respect to any requested Eurodollar
borrowing, then the Interest Period shall be deemed to be one month.  Each Eurodollar or ABR borrowing under the
Commitments shall be in an aggregate principal amount of the lesser of (1)
$10,000,000 or a whole multiple of $1,000,000 in excess thereof, and (2) the
then Available Commitments.

 

(b)           Upon
receipt of such notice from the applicable Borrower, the Administrative Agent
shall promptly notify each Lender thereof (but in any event no later than (i)
the date of receipt of such notice from such Borrower in the case of Eurodollar
Loans and (ii) 2:00 P.M., New York City time, on the requested Borrowing Date
in the case of ABR Loans).  Each Lender
will make the amount of its pro rata share of each borrowing available to the
Administrative Agent for the account of such Borrower at the office of the
Administrative Agent set forth in subsection 9.2 prior to (i) 4:00 P.M., New
York City time, in the case of ABR Loans, and (ii) 12:00 P.M., New York City
time, in the case of Eurodollar Loans on the Borrowing Date requested by such
Borrower in funds immediately available to the Administrative Agent in Dollars.  The proceeds of all Loans will then be made
available to such Borrower by the Administrative Agent by crediting the account
of such Borrower on the books of the Administrative Agent, or such other
account of such Borrower as shall have been designated by such Borrower to the
Administrative Agent.

 

(c)           Unless
the Administrative Agent shall have been notified in writing by any Lender
prior to a proposed Borrowing Date that such Lender will not make available to
the Administrative Agent the amount which would constitute its Commitment
Percentage of the borrowing on such Borrowing Date, the Administrative Agent
may assume that such Lender has made such amount available to the
Administrative Agent on such Borrowing Date, and the Administrative Agent may,
in reliance upon such assumption, make available to the applicable Borrower an
amount equal to such Lender’s Commitment Percentage of the borrowing on such
Borrowing Date.  The Administrative
Agent shall notify such Borrower as promptly as practicable if such Lender’s
Commitment Percentage of such borrowing is not made available to the
Administrative Agent on such Borrowing Date. 
If such amount is made available to the Administrative Agent on a date
after such Borrowing Date, such Lender shall pay to the Administrative Agent on
demand an amount equal to the product of (i) the daily average overnight
federal funds rate during such period as quoted by the Administrative Agent,
times (ii)

 

12

 

the amount of such
Lender’s Commitment Percentage of such borrowing (minus the amount, if any,
which such Lender has made available to the Administrative Agent), times (iii)
a fraction the numerator of which is the number of days that elapse from and
including such Borrowing Date to the date on which such Lender’s Commitment
Percentage of such borrowing shall have become immediately available to the
Administrative Agent and the denominator of which is 360.  A certificate of the Administrative Agent
submitted to any Lender with respect to any amounts owing under this subsection
2.3(c) shall be prima
facie evidence of the accuracy of the information set forth therein,
absent manifest error.  If such Lender’s
Commitment Percentage of such borrowing is not in fact made available to the
Administrative Agent by such Lender within three Business Days of such
Borrowing Date, the Administrative Agent shall be entitled to recover the
amount of such Lender’s Commitment Percentage of such borrowing (minus the
amount, if any, which such Lender had made available to the Administrative
Agent) on demand from such Borrower with interest thereon (i) for the period
from and including such Borrowing Date to the date one day after such demand,
at a rate per annum equal to the daily average overnight federal funds rate during
such period as quoted by the Administrative Agent and calculated on the basis
of a 360-day year for the actual days elapsed and (ii) thereafter, at the rate
per annum applicable to ABR Loans hereunder. 
Nothing contained in this subsection 2.3(c) shall prejudice in any
manner whatsoever any right or remedy of such Borrower against such Lender.

 

2.4          Same Day Loans.  (a) 
Subject to the terms and conditions set forth herein, the Same Day
Lender agrees to make Same Day Loans to the Borrowers from time to time during
the Commitment Period, in an aggregate principal amount at any time outstanding
that will not result in (i) the aggregate principal amount of outstanding Same
Day Loans exceeding $100,000,000 or (ii) the aggregate principal amount of
outstanding Loans exceeding $800,000,000. 
Borrowings of Same Day Loans under the Commitments shall be in an
aggregate principal amount of not less than (1) $1,000,000, and (2) not greater
than the then Available Commitments with respect to Same Day Loans.  With respect to borrowings of Same Day Loans
in excess of $1,000,000, any such excess amount shall be in a whole multiple of
$100,000.  Within the foregoing limits
and subject to the terms and conditions set forth herein, each Borrower may
borrow, prepay and reborrow Same Day Loans.

 

(b)           To
request a Same Day Loan, a Borrower shall notify the Administrative Agent of
such request by telephone (confirmed by telecopy in a form substantially the
same as Exhibit H), not later than 12:00 P.M., New York City time, on the day
of a proposed Same Day Loan.  Each such
notice shall be irrevocable and shall specify the requested date (which shall
be a Business Day), amount of the requested Same Day Loan and any Interest
Period selected.  The Administrative
Agent will promptly advise the Same Day Lender of any such notice received from
such Borrower.  The Same Day Lender
shall make each Same Day Loan available to such Borrower by means of a credit
to the general deposit account of such Borrower with the Same Day Lender by
3:00 P.M., New York City time, on the requested date of such Same Day
Loan.  Subject to subsection 2.4(c),
each payment (including each prepayment) by either Borrower on account of Same
Day Loans shall be made to the Same Day Lender for the Same Day Lender’s sole account.

 

(c)           The
Same Day Lender may by written notice given to the Administrative Agent not
later than 1:00 P.M., New York City time, on any Business Day require the
Lenders to acquire participations on such Business Day in all or a portion of
the Same Day Loans

 

13

 

outstanding.  Such notice shall specify the aggregate
amount of Same Day Loans in which Lenders will participate.  Promptly upon receipt of such notice, the
Administrative Agent will give notice thereof to each Lender, specifying in
such notice such Lender’s Commitment Percentage of such Same Day Loan or
Loans.  Each Lender hereby absolutely
and unconditionally agrees, upon receipt of notice as provided above, to pay to
the Same Day Lender, such Lender’s Commitment Percentage of such Same Day Loan
or Loans.  Each Lender acknowledges and
agrees that its obligation to acquire participations in Same Day Loans pursuant
to this paragraph is absolute and unconditional and shall not be affected by
any circumstance whatsoever, including the occurrence and continuance of a
Default or reduction or termination of the Commitments, and that each such
payment shall be made without any offset, abatement, withholding or reduction
whatsoever.  Each Lender shall comply
with its obligation under this paragraph by wire transfer of immediately
available funds by 3:00 P.M., New York City time, on the date of receipt of the
notice referenced above, to the account of the Same Day Lender most recently
designated by it for such purpose by notice to the Lenders.  The Administrative Agent shall notify the
Borrower of any participations in any Same Day Loan acquired pursuant to this
paragraph, and thereafter payments in respect of such Same Day Loan shall be
made to the Administrative Agent and not to the Same Day Lender.  Any amounts received by the Same Day Lender
from the Borrower (or other party on behalf of the Borrower) in respect of a
Same Day Loan after receipt by the Same Day Lender of the proceeds of a sale of
participations therein shall be promptly remitted to the Administrative Agent;
any such amounts received by the Administrative Agent shall be promptly
remitted by the Administrative Agent to the Lenders that shall have made their
payments pursuant to this paragraph and to the Same Day Lender, as their
interests may appear.  The purchase of
participations in a Same Day Loan pursuant to this paragraph shall not relieve
the Borrowers of any default in the payment thereof.  Notwithstanding the foregoing, a Lender shall not have any
obligation to acquire a participation in a Same Day Loan pursuant to this
paragraph if an Event of Default shall have occurred and be continuing at the
time such Same Day Loan was made and such Lender shall have notified the Same
Day Lender in writing, at least one Business Day prior to the time such Same
Day Loan was made, that such Event of Default has occurred and that such Lender
will not acquire participations in Same Day Loans made while such Event of
Default is continuing.

 

2.5          Termination or Reduction of Commitments.  (a) 
The Borrowers shall have the right, upon not less than five Business
Days’ written notice to the Administrative Agent, to terminate the Commitments
or, from time to time, to reduce the amount thereof; provided, that no such
termination or reduction shall be permitted if, after giving effect thereto and
to any prepayments of the Loans made on the effective date thereof, the then
outstanding principal amount of the Loans would exceed the amount of the
Commitments then in effect.  Any such
reduction shall be in an amount of $10,000,000, or a whole multiple of
$5,000,000 in excess thereof, and shall reduce permanently the amount of such
Commitments then in effect.

 

(b)           Unless
an Event of Default has occurred and is continuing, the Borrowers shall have
the right, in their sole discretion, to terminate the Commitment of any Lender
by giving the Administrative Agent and such Lender a written notice setting
forth its election and a termination date (the “Early
Commitment Termination Date”), which date shall not be earlier than
30 days after the date on which such notice has been given, except as otherwise
provided in subsections 2.14(c), 2.15 and 2.16(f).  On the Early Commitment Termination Date, such Lender’s
Commitment shall terminate and the Borrowers shall (i) prepay all of such
Lender’s

 

14

 

outstanding Loans
together with interest thereon accrued to such Early Commitment Termination
Date and any amounts payable pursuant to subsection 2.17, (ii) pay all
Commitment Fees accrued to such Early Commitment Termination Date with respect
to such Lender’s Commitment and (iii) pay all amounts then owing to such Lender
pursuant to subsections 2.14, 2.16, 2.17 and 9.5 for which demand has been made
to the Borrowers prior to such Early Commitment Termination Date.  Upon termination of such Lender’s Commitment
in accordance with this subsection 2.5(b), such Lender shall cease to be a
party hereto subject to the provisions of subsection 8.7.

 

(c)           In
the event that the Borrowers elect to terminate the Commitment of any Lender
pursuant to subsection 2.5(b), the Borrowers shall have the right, in their
sole discretion, upon notice to the Administrative Agent, to request one or
more Lenders or Purchasing Lenders, or to seek another lender, to acquire,
pursuant to subsection 9.6(c), such terminated Commitment and all amounts owing
to such Lender in respect of its Loans hereunder; provided, however, that if
such terminated Commitments are in the aggregate greater than 15% of the then
aggregate Commitments, the Borrowers will replace such terminated Lender or
Lenders with one or more replacement lenders (which may be a Lender or Lenders)
which will acquire on the date of such termination, pursuant to subsection
9.6(c), an amount of such terminated Commitment or Commitments, as applicable,
which will result in the then aggregate Commitments, after giving effect to
such acquisition, being at least 85% of the aggregate Commitments as of the
Closing Date (as the same may be reduced pursuant to subsection 2.5(a), but
excluding any reductions pursuant to subsection 2.5(b)).

 

2.6          Optional and Mandatory Prepayments.  (a)  Optional Prepayments.  The Borrowers may at any time and from time
to time prepay the Loans, in whole or in part, without premium or penalty upon
(i) in the case of Eurodollar Loans, at least three Business Days’ irrevocable
written notice to the Administrative Agent, specifying the date and amount of
prepayment and whether the prepayment is of Eurodollar Loans or a combination
of Eurodollar Loans and ABR Loans, and if a combination thereof, the amount of
prepayment allocable to each, (ii) in the case of ABR Loans, at least one
Business Day’s irrevocable written notice to the Administrative Agent,
specifying the date and amount of prepayment and (iii) in the case of Same Day
Loans, upon irrevocable written notice to the Administrative Agent received no
later than 12:00 P.M. on the day of such prepayment, specifying the date and
amount of prepayment.  Upon receipt of
such notice the Administrative Agent shall promptly notify each Lender
thereof.  If such notice is given, the
payment amount specified in such notice shall be due and payable on the date
specified therein, together with any interest thereon accrued to such
prepayment date and any amounts payable pursuant to subsection 2.17.

 

(b)           Mandatory Prepayments.  If, after giving effect to any termination
or reduction of the Commitments pursuant to subsection 2.5, the aggregate
outstanding principal amount of the Loans exceeds the Commitments as so
reduced, the Borrowers shall, simultaneously with any such termination or
reduction of the Commitments pay or prepay an amount equal to such excess
together with interest thereon accrued to such date of payment or prepayment
and any amount payable pursuant to subsection 2.17.

 

2.7          Conversion and Continuation Options.  (a) 
Each Borrower may elect from time to time to convert its Eurodollar
Loans to ABR Loans by giving the Administrative Agent

 

15

 

prior irrevocable
notice, in a form substantially the same as Exhibit I, of such election by
12:00 P.M., New York City time, on a Business Day; provided,
that any such conversion of Eurodollar Loans may only be made on the last day
of an Interest Period with respect thereto. 
Each Borrower may elect from time to time to convert its ABR Loans to
Eurodollar Loans by giving the Administrative Agent at least three Business
Days’ prior irrevocable notice of such election.  Any such notice of conversion to Eurodollar Loans shall specify
the length of the Interest Periods therefor. 
Upon receipt of any such notice the Administrative Agent shall promptly
notify each Lender thereof.  All or any
part of the outstanding Eurodollar Loans and ABR Loans may be converted as
provided herein; provided, that no Loan
may be converted into a Eurodollar Loan when any Event of Default has occurred
and is continuing if the Administrative Agent, upon the request of the Required
Lenders, shall determine not to permit such conversions.

 

(b)           Any
Eurodollar Loans may be continued as such upon the expiration of the then
current Interest Period with respect thereto by the applicable Borrower giving
notice, in a form substantially the same as Exhibit I, to the Administrative
Agent, in accordance with the appropriate notification provisions therefor set
forth in subsection 2.7(a), of the length of the next Interest Period to be
applicable to such Loans; provided, that if the applicable Borrower shall fail
to give any required notice as described above in this paragraph, such Loans
shall automatically be continued as Eurodollar Loans with an Interest Period of
one month; provided, further, that no Eurodollar Loan may be continued as such
when any Event of Default has occurred and is continuing if the Administrative
Agent, upon the request of the Required Lenders, shall determine not to permit
such continuations; and further provided, that if such continuation is not
permitted pursuant to the preceding proviso, such Loans shall automatically be
converted to ABR Loans.

 

(c)           This
subsection 2.7 shall not apply to Same Day Loans, which may not be converted or
continued.

 

2.8          Maximum Number of Tranches.  All conversions and continuations of Loans outstanding at any one
time hereunder and all selections of Interest Periods hereunder shall be in
such amounts and be made pursuant to such elections so that, after giving
effect thereto, there shall be no more than 15 Tranches.

 

2.9          Fees. 
(a)  The Borrowers agree to pay
to the Administrative Agent for the ratable account of each Lender a commitment
fee (the “Commitment Fee”) from and
including the first day of the Commitment Period to the Termination Date or
such earlier date as all the Commitments shall terminate as provided herein, at
the rate per annum equal to the Applicable Commitment Fee Rate on the average
daily amount of the Available Commitment of such Lender during the period for
which payment is made.  Such Commitment Fees
shall be payable quarterly in arrears on the last Business Day of each March,
June, September and December and on the Termination Date or such earlier date
as the Commitment of such Lender shall terminate as provided herein, commencing
on the first of such dates to occur after the Closing Date.

 

(b)           The
Borrowers agree to pay to the Administrative Agent for the ratable account of
each Lender, a utilization fee (a “Utilization Fee”)
at a rate per annum equal to the Applicable Utilization Fee Rate for each
Excess Utilization Day on the outstanding Loans of such Lender on such Excess
Utilization Day during the period for which payment is made.  Such

 

16

 

Utilization Fees
shall be payable quarterly in arrears on the last Business Day of each March, June,
September and December and on the Termination Date or such earlier date as the
Commitment of such Lender shall terminate as provided herein, commencing on the
first of such dates to occur after the Closing Date.

 

(c)           The
Borrowers agree to pay to the Administrative Agent and the Co-Lead Arrangers,
for their own respective accounts, the applicable fees heretofore agreed in
writing pursuant to the respective fee letters each dated as of June 3, 2004
(each a “Fee Letter” and collectively, the “Fee
Letters”) between the Borrowers and the Administrative Agent and the
Co-Lead Arrangers, as applicable (any such fees, the “Agent’s/Arranger’s Fees”). The Borrowers
agree to pay to the Administrative Agent for the respective accounts of the
Lenders, pro
rata according to their Commitment amounts, an upfront fee in an
amount set forth in the applicable Fee Letter.

 

2.10        Interest Rate.  (a) Each Eurodollar Loan shall bear interest
for the Interest Period applicable thereto on the unpaid principal amount
thereof at a rate per annum equal to the Eurodollar Rate determined for such
Interest Period plus the Applicable Eurodollar Margin.

 

(b)           Each
Same Day Loan shall bear interest on the unpaid principal amount thereof at a
rate per annum equal to the Money Market Rate plus the Applicable Eurodollar
Margin; provided, however, that, at any time as there shall be a Same Day Loan
outstanding past the date such Same Day Loan is due and payable or there shall
have occurred and be continuing an Event of Default, each Same Day Loan as to
which the Lenders shall have acquired participations pursuant to subsection
2.4(c) shall bear interest from and after the earlier of (i) the date after
which such Same Day Loan is due and payable or (ii) the date on which such
Event of Default shall have occurred, in each case at a rate per annum equal to
the Alternate Base Rate.

 

(c)           Each
ABR Loan shall bear interest at a rate per annum equal to the Alternate Base
Rate.

 

(d)           If
all or a portion of the principal amount of or any interest on any Loan shall
not be paid when due (without regard to any applicable grace periods, whether
at the stated maturity, by acceleration or otherwise), such overdue amount
shall, without limiting the rights of any Lender under Section 7, bear interest
at a rate per annum equal to the rate which would otherwise be applicable
pursuant to subsection 2.10(a), (b) or (c), as applicable, plus 2%, in each
case from the date of nonpayment until paid in full (as well after as before
judgment).

 

(e)           Interest
on each Loan shall be payable in arrears on each Interest Payment Date with
respect thereto.

 

2.11        Computation of Interest and Fees.  (a) Interest in respect of the ABR Loans
shall be calculated on the basis of a 365 (or 366, as the case may be) day year
for the actual days elapsed.  Interest
in respect of Eurodollar Loans, Same Day Loans, Commitment Fees, Utilization
Fees, and other amounts owing shall be calculated on the basis of a 360 day
year for the actual days elapsed.  The
Administrative Agent shall as soon as practicable notify the Borrowers and the
Lenders of each determination of a Eurodollar Rate.  Any change in the interest rate on a Loan resulting from a change
in the Alternate Base Rate or the Applicable

 

17

 

Eurodollar Margin
shall become effective as of the opening of business on the day on which such
change in the Alternate Base Rate is announced or such Applicable Eurodollar
Margin changes as provided herein, as the case may be.  The Administrative Agent shall as soon as
practicable notify the Borrowers and the Lenders of the effective date and the
amount of each such change.

 

(b)           Each
determination of an interest rate by the Administrative Agent pursuant to any
provision of this Agreement shall be conclusive and binding on the Borrowers
and the Lenders in the absence of manifest error.  Upon the request of a Borrower, the Administrative Agent shall
deliver to the Borrowers a statement showing the determination of any interest
rate pursuant to subsections 2.10(a), (b) or (c), as applicable.

 

2.12        Inability to Determine Interest Rate.  In the event that prior to the first day of
any Interest Period with respect to a Eurodollar Loan:

 

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

 

(ii)           the
Administrative Agent shall have received notice prior to the first day of such
Interest Period from the Required Lenders that the interest rate determined
pursuant to subsection 2.10(a) for such Interest Period does not accurately
reflect the cost to such Lenders (as conclusively certified by such Lenders) of
making or maintaining Eurodollar Loans during such Interest Period,

 

with respect to a Loan
that is to be made as or converted to or continued as a Eurodollar Loan, the
Administrative Agent shall forthwith give telecopy or telephonic notice of such
determination to the Borrowers and each Lender at least one day prior to the
relevant Borrowing Date, conversion date or continuation date for such
Eurodollar Loan.  If such notice is
given, any Loan that is to be made as or converted to or continued as a
Eurodollar Loan shall be made as or converted to an ABR Loan.

 

2.13        Pro Rata Treatment and Payments.  (a) Except as provided by subsection 2.4,
each borrowing by either Borrower from the Lenders hereunder and, except as
otherwise provided by subsection 2.5(b), in the Fee Letter or by subsection
2.9(c), each payment by either Borrower on account of any fee payable hereunder
in respect of the Commitments and any reduction of the Commitments of the
Lenders hereunder shall be made pro rata according to the respective Commitment Percentages
of the Lenders.  Except as otherwise
provided in subsections 2.4 and 2.5(b), each payment (including each
prepayment) by either Borrower on account of principal of and interest on the
Loans shall be made pro rata according to the respective outstanding principal
amounts of the Loans then held by the Lenders.

 

(b)           All
payments (including prepayments) to be made by either Borrowers hereunder and
under any Notes on account of principal, interest and fees shall be made prior
to 3:00 PM, New York City time, on the date when due without set-off or
counterclaim and shall be made to the Administrative Agent (except payments to
be made directly to the Same Day Lender as expressly provided in this
Agreement), for the account of the Lenders (or, in the case of payments made
pursuant to subsection 2.5(b), for the account of each Lender whose

 

18

 

Commitment has
been terminated pursuant to any such subsection or, in the case of
Agent’s/Arranger’s Fees, to the Administrative Agent or the Co-Lead Arrangers as
agreed in writing), at the Administrative Agent’s office set forth in
subsection 9.2, in lawful money of the United States of America and in
immediately available funds.  Any
amounts received after such time on any date may, in the discretion of the Administrative
Agent, be deemed to have been received on the next succeeding Business Day for
purposes of calculating interest thereon. 
The Administrative Agent shall distribute such payments to each Lender
promptly upon receipt in like funds as received.

 

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

 

2.14        Increased Costs.  (a) If the
adoption of any applicable law, rule or regulation after the date of this
Agreement, or any change in any law, rule or regulation, or in the
interpretation, application or administration thereof by any Governmental
Authority, central bank or comparable agency charged with the interpretation,
application or administration thereof after the date of this Agreement, or
compliance by any Lender with any request or directive (whether or not having
the force of law) of any such authority, central bank or comparable agency made
after the date of this Agreement shall impose, modify or deem applicable any
reserve, special deposit or similar requirement (including, without limitation,
any such requirement imposed by the Board of Governors of the Federal Reserve
System or any Person or Persons performing similar functions with respect to a
foreign bank) against assets of, deposits with or for the account of, or credit
extended by, any Lender which are not otherwise included in the determination
of the applicable Eurodollar Rate hereunder, or shall impose any other
condition (including, without limitation, any assessment for deposit insurance
under any applicable laws) regarding this Agreement; and the result of any of
the foregoing is to increase the cost to such Lender, by an amount which such
Lender deems to be material, of making, converting into, continuing or
maintaining extensions of credit or to reduce any amount receivable hereunder,
in each case, in respect of its Eurodollar Loans, then, in any such case, the
Borrowers shall promptly pay such Lender, upon its demand, any additional
amounts necessary to compensate such Lender for such additional cost or reduced
amount receivable.

 

(b)           If
any Lender shall have determined reasonably and in good faith that the adoption
of any law, rule, regulation or guideline regarding capital adequacy after the
date of this Agreement, or any change in any of the foregoing after the date of
this Agreement or in the interpretation or administration of any of the
foregoing by any Governmental Authority, central bank or comparable agency
charged with the interpretation or administration thereof after the date of
this Agreement, or compliance by such Lender (or any lending office of such
Lender) with any request or directive regarding capital adequacy (whether or
not having the force of law) of any such Governmental Authority, central bank
or comparable agency after the date of this Agreement, has or would have the
effect of reducing the rate of return on such Lender’s capital or on the
capital of such Lender’s holding company as a consequence of its obligations
hereunder to a level below that which such Lender or such Lender’s holding
company could

 

19

 

have achieved but
for this Agreement and such adoption, change or compliance (taking into
consideration such Lender’s policies and the policies of such Lender’s holding
company with respect to capital adequacy) by an amount which such Lender deems
to be material, then from time to time promptly after demand by such Lender,
the Borrowers shall pay to such Lender such additional amount or amounts as
will compensate such Lender or such Lender’s holding company for such
reduction.

 

(c)           If
a Lender becomes entitled to claim any additional amounts pursuant to this
subsection 2.14, it shall promptly notify the Borrowers, through the
Administrative Agent, of the event by reason of which it has become so
entitled.  A certificate as to any additional
amounts payable pursuant to this subsection 2.14 and setting forth in
reasonable detail the basis for such claim, submitted by such Lender (through
the Administrative Agent) to the Borrowers, shall be conclusive in the absence
of manifest error.  The Borrowers shall
pay such Lender the amount shown as due on any such certificate promptly upon
receipt thereof.  Failure or delay on
the part of any Lender to demand compensation pursuant to this Section shall
not constitute a waiver of such Lender’s right to demand such compensation;
provided, that the Borrowers shall not be required to compensate a Lender
pursuant to this subsection 2.14 for any increased costs or reductions incurred
more than six months prior to the date that such Lender notifies the Borrowers
of such Lender’s intention to claim compensation therefor and, if the
circumstances giving rise to such increased cost or reduction have a
retroactive effect, then such six-month period shall be extended to include the
period of such retroactive effect.  Each
Lender shall designate a different lending office for funding or booking its
Loans hereunder or assign its rights and obligations hereunder to another of
its offices, branches or affiliates, if such designation or assignment will
avoid the need for, or reduce the amount of, compensation pursuant to this
subsection 2.14 and will not, in the judgment of such Lender, be otherwise
disadvantageous to such Lender.  Upon
receipt of notice from such Lender of a claim pursuant to this subsection 2.14,
the Borrowers may terminate such Lender’s Commitment pursuant to subsection
2.5(b) upon three Business Days’ notice to the Administrative Agent and such
Lender unless such Lender shall have designated a different lending office or
assigned its rights and obligations hereunder to another of its offices,
branches or affiliates as provided in the preceding sentence.

 

2.15        Illegality.  Notwithstanding any other provision of this
Agreement, if any requirement of law or any change therein or in the
interpretation or application thereof shall make it unlawful for any Lender to
make or maintain Eurodollar Loans as contemplated by this Agreement, such
Lender shall promptly notify the Borrowers and the Administrative Agent thereof
and the Commitment of such Lender hereunder to make and continue Eurodollar
Loans as such and convert ABR Loans to Eurodollar Loans shall forthwith be
suspended to the extent required by law until such time as such Lender may
again make and maintain Eurodollar Loans. 
To the extent required by law such Lender’s Loans then outstanding as
Eurodollar Loans, if any, shall be converted into ABR Loans on the last day of
the Interest Period therefor, or within such earlier period as required by law,
to the extent necessary to maintain such Lender’s Commitment Percentage of
outstanding Loans.  Such Lender shall
designate a different lending office for funding or booking its Eurodollar
Loans or assign its rights and obligations hereunder to another of its offices,
branches or affiliates if such designation or assignment will permit such
Lender to lawfully make and maintain Eurodollar Loans hereunder and will not,
in the judgment of such Lender, be otherwise disadvantageous to such
Lender.  Upon receipt of notice from
such Lender

 

20

 

as specified in
the first sentence of this subsection 2.15, the Borrowers may terminate such
Lender’s Commitment pursuant to subsection 2.5(b) upon three Business Days’
notice to the Administrative Agent unless such Lender shall have designated a
different lending office or assigned its rights and obligations hereunder to
another of its offices, branches or affiliates as provided in the preceding
sentence.

 

2.16        Taxes.  (a)
Except as otherwise provided hereunder, payments made by a Borrower, the
Administrative Agent or any Lender under this Agreement and any Notes shall be
made free and clear of, and without reduction or withholding for or on account
of, any present or future income, stamp or other taxes, levies, imposts, duties,
charges, fees, deductions or withholdings, now or hereafter imposed, levied,
collected, withheld or assessed by any Governmental Authority excluding, in the
case of the Administrative Agent and each Lender, net income and franchise
taxes imposed on or withholdings required on payments made to the
Administrative Agent or such Lender by the jurisdiction under the laws of which
the Administrative Agent or such Lender is organized or any political
subdivision or taxing authority thereof or therein, or by any jurisdiction in
which such Lender’s lending office is located or any political subdivision or
taxing authority thereof or therein (all such non-excluded taxes, levies,
imposts, deductions, charges or withholdings being hereinafter called “Taxes”). 
If any Taxes are required to be withheld from any amounts payable to the
Administrative Agent or any Lender hereunder or under any Notes, the amounts so
payable to the Administrative Agent or such Lender shall be increased to the
extent necessary to yield to the Administrative Agent or such Lender (after
payment of all Taxes) interest or any such other amounts payable hereunder at
the rates or in the amounts specified in this Agreement and any Notes;
provided, that no such increase to the amounts payable hereunder shall be made
or be payable (i) to the extent that such Taxes are attributable to the failure
of the Administrative Agent or such Lender to comply with the requirements of
subsection 2.16(b) hereof or (ii) that are United States withholding taxes
imposed on amounts payable to such Lender at the time such Lender becomes a
party to this Agreement, except to the extent that such Lender’s assignor (if
any) was entitled, at the time of assignment, to receive additional amounts
from the Borrower with respect to such Taxes pursuant to this subsection
2.16(a).

 

(b)           Each
Lender (or transferee) that is not a “U.S. Person” as defined in Section
7701(a)(30) of the Code (a “Non-U.S. Lender”)
shall deliver to the Borrowers and the Administrative Agent (or, in the case of
a Participant, to the Lender from which the related participation shall have
been purchased) two copies of either U.S. Internal Revenue Service Form W-8BEN
or Form W-8ECI, or, in the case of a Non-U.S. Lender claiming exemption from
U.S. federal withholding tax under Section 871(h) or 881(c) of the Code with
respect to payments of “portfolio interest”, a statement substantially in the
form of Exhibit G and a Form W-8BEN, or any subsequent versions thereof or
successors thereto, properly completed and duly executed by such Non-U.S.
Lender claiming complete exemption from, or a reduced rate of, U.S. federal
withholding tax on all payments by the Borrowers under this Agreement and the
Notes.  Such forms shall be delivered by
each Non-U.S. Lender on or before the later of (i) the date it becomes a party
to this Agreement (or, in the case of any Participant, on or before the date
such Participant purchases the related participation) or (ii) prior to receipt
by such Lender or Participant of any payment subject to withholding under the
Code.  In addition, each Non-U.S. Lender
shall deliver such forms promptly upon the obsolescence or invalidity of any
form previously delivered by such Non-U.S. Lender.  Each Non-U.S. Lender shall promptly notify the

 

21

 

Borrowers at any
time it determines that it is no longer in a position to provide any previously
delivered certificate to the Borrowers (or any other form of certification
adopted by the U.S. taxing authorities for such purpose).  Notwithstanding any other provision of this
subsection 2.16(b), a Non-U.S. Lender shall not be required to deliver any form
pursuant to this subsection 2.16(b) that such Non-U.S. Lender is not legally able
to deliver.

 

(c)           The
applicable Borrower shall promptly send to the Administrative Agent for its own
account or for the account of any Lender, as the case may be, a copy of an
original official receipt received by such Borrower showing payment to the
proper taxing authority by such Borrower of any Taxes withheld.  If a Borrower fails to withhold and pay over
to the proper taxing authority any Taxes when due or fails to remit to the
Administrative Agent or any Lender the required receipts or other required
documentary evidence, the Borrowers shall indemnify the Administrative Agent
and any such Lender for any interest or penalties that may become payable by
the Administrative Agent or any Lender as a result of any such failure.

 

(d)           Each
Lender shall designate a different lending office for its Loans or assign its
rights and obligations hereunder to another of its offices, branches or
affiliates if such designation or assignment will avoid the need for, or reduce
the amount of, increased amounts payable pursuant to subsection 2.16(a) and
will not, in the judgment of such Lender, be otherwise disadvantageous to such
Lender.

 

(e)           Each
Borrower agrees to pay, indemnify, and hold each Lender and the Administrative
Agent harmless from any and all present or future stamp or documentary taxes or
any other excise or property taxes, charges or similar levies arising from any
payment made hereunder or from the execution, delivery or enforcement of, or
otherwise with respect to, this Agreement or any Notes.

 

(f)            If
an amount payable by a Borrower hereunder for the account of any Lender is
increased pursuant to subsection 2.16(a), or the Borrowers become liable to
indemnify the Administrative Agent or any Lender under subsection 2.16(e), the
Borrowers shall have the right to terminate the Commitment of such Lender
pursuant to subsection 2.5(b) upon three Business Days’ notice to the
Administrative Agent and such Lender unless such Lender shall have designated a
different lending office or assigned its rights and obligations hereunder to
another of its offices, branches or affiliates as provided in subsection
2.16(d).

 

2.17        Break Funding Payments.  In the
event of: (a) the payment of any principal of any Eurodollar Loan or Same Day
Loan other than on the last day of an Interest Period applicable thereto
(including as a result of an Event of Default), (b) the conversion of any
Eurodollar Loan other than on the last day of the Interest Period applicable
thereto, (c) the failure to borrow, convert, continue or prepay any Loan on the
date specified in any notice delivered pursuant hereto, (d) the assignment of
any Eurodollar Loan other than on the last day of the Interest Period
applicable thereto as a result of a request by the Borrowers pursuant to
subsections 2.5(b) or (c), then, in any such event, the Borrowers shall
compensate each Lender for the loss, cost and expense attributable to such
event.  The loss to any Lender
attributable to any such event shall be an amount determined by such Lender to
be equal to the excess, if any, of (i) the amount of interest that would have
accrued to such Lender on the amount so paid or not borrowed, continued or
converted at a rate of interest equal to the Eurodollar Rate for such

 

22

 

Eurodollar Loan,
for the period from the date of such payment or failure to borrow, continue or
convert to the last day (x) in the case of a payment other than on the last day
of the Interest Period for such Loan, of the then current Interest Period for
such Loan, or (y) in the case of such failure to borrow, continue or convert,
of the Interest Period for such Loan which would have commenced on the date of
such failure to borrow, continue or convert, over (ii) the amount of interest
which would have accrued to such Lender on such amount by placing such amount
on deposit for a comparable period with leading Lenders in the London interbank
market.  If a Lender becomes entitled to
claim any amounts pursuant to this subsection 2.17, it shall promptly notify
the Borrowers, through the Administrative Agent, of the event by reason of
which it has become so entitled.  A
certificate as to any amounts payable pursuant to this subsection 2.17 and
setting forth in reasonable detail the basis for such claim, submitted by such
Lender (through the Administrative Agent) to the Borrowers, shall be conclusive
in the absence of manifest error.  The
Borrowers shall pay such Lender the amount shown as due on any such certificate
promptly after receipt thereof.

 

SECTION 3.  REPRESENTATIONS AND WARRANTIES

 

Each Borrower as to itself
hereby represents and warrants to the Administrative Agent and to each Lender
that:

 

3.1          Existence and Power.  The LLC is
a limited liability company duly organized, validly existing and in good
standing under the laws of the State of Delaware, and has all limited liability
company powers and all material governmental licenses, authorizations, consents
and approvals required to carry on its business as now conducted.  The LP is a limited partnership duly
organized, validly existing and in good standing under the laws of the State of
Delaware, and has all partnership powers and all material governmental
licenses, authorizations, consents and approvals required to carry on its
business as now conducted.

 

3.2          Requisite and Governmental
Authorization; Contravention.  The execution, delivery and performance by such Borrower of this
Agreement and any Notes are within its limited liability company or
partnership, as applicable, powers, have been duly authorized by all necessary limited
liability company or partnership, as applicable, action, require no action by
or in respect of, or filing with, any Governmental Authority and do not
contravene, or constitute a breach or a default under, any provision of any
applicable law, regulation or order of any Governmental Authority, or (i) in
the case of the LLC, its Certificate of Formation, as amended, and the Second
Amended and Restated Limited Liability Company Agreement, as amended, (ii) in
the case of the LP, its Certificate of Limited Partnership and Agreement of Limited
Partnership, as amended, or (iii) in the case of both the LLC and the LP, any
agreement, judgment, injunction, order, decree or other instrument binding upon
such Borrower or resulting in the creation or imposition of any Lien on any
asset of such Borrower or any of its Subsidiaries.

 

3.3          Enforceability.  This Agreement and any Notes constitute the
legal, valid and binding obligation of such Borrower, enforceable against such
Borrower in accordance with their respective terms, subject, as to enforceability
only, to applicable bankruptcy, moratorium, insolvency or similar laws
affecting the rights of creditors generally and to general principles of
equity.

 

23

 

3.4          Litigation.  Neither Borrower nor any of their respective
Subsidiaries is a party to any, and there are no pending or, to Borrowers’
knowledge, threatened, legal, administrative, arbitral or other proceedings,
claims, actions or governmental or regulatory investigations of any nature
against or affecting either Borrower or any of its respective Subsidiaries that
(i) individually or in the aggregate, would reasonably be expected to
materially adversely affect the business, consolidated financial position or
results of operations of the Borrowers and their Subsidiaries taken as a whole
or (ii) that involve this Agreement or the transactions under this Agreement
and could reasonably be expected to adversely affect the enforceability of any
material provision of this Agreement.

 

3.5          Financial Statements; No Material Change.  (a) The consolidated balance sheet of the
LLC as of March 31, 2004, and the related consolidated statement of operations,
of members’ capital and of cash flows for the period January 1, 2004 through
March 31, 2004, copies of which have been presented to the Lenders, present
fairly, in all material respects, the financial condition of the Borrowers and
their Subsidiaries, taken as a whole, at March 31, 2004, and the results of
their operations and their cash flows for the period January 1, 2004 through
March 31, 2004, respectively, in conformity with GAAP.

 

(b)           Since
March 31, 2004, as reflected in (a) above, there has been no material adverse
change in the business, consolidated financial position or results of
operations of the Borrowers and their Subsidiaries taken as a whole.

 

3.6          Employee Benefit Plans.  No
“Prohibited Transaction” (as such term is defined in ERISA) has occurred or
ERISA Event has occurred or is reasonably expected to occur with respect to any
“Employee Benefit Plans” (as such term is defined in ERISA) of the LLC or any
of its Subsidiaries or any ERISA Affiliate which would reasonably be expected
to materially adversely affect the business, consolidated financial position or
results of operations of the Borrowers and their Subsidiaries taken as a
whole.  No “Prohibited Transaction”
under ERISA or the Code which would have a material adverse effect on the
business, consolidated financial position or results of operations of the
Borrowers and their Subsidiaries taken as a whole has occurred with respect to
the LLC or any of its Subsidiaries or any ERISA Affiliate or will occur upon
the issuance of any Notes or the execution of this Agreement. The present value
of all accumulated benefit obligations under each Plan (based on the
assumptions used for purposes of Statement of Financial Accounting Standards
No. 87) did not, as of the date of the most recent financial statements
reflecting such amounts, exceed the fair market value of the assets of such
Plan by an amount that could reasonably be expected to result in a material
adverse effect on the business, consolidated financial position or results of
operations of the Borrowers and their Subsidiaries taken as a whole, and the
present value of all accumulated benefit obligations of all underfunded Plans
(based on the assumption used for purposes of Statement of Financial Accounting
Standards No. 87) did not, as of the date of the most recent financial
statements reflecting such amounts, exceed the fair market value of the assets
of all such underfunded Plans by an amount that could reasonably be expected to
result in a material adverse effect on the business, consolidated financial
position or results of operations of the Borrowers and their Subsidiaries taken
as a whole.

 

3.7          Taxes. 
The LLC and its Subsidiaries have filed all United States federal income
tax returns which are required to be filed by them.  The LLC and its Subsidiaries have filed all

 

24

 

United States
federal information tax returns and all other material tax returns which are
required to be filed by them and their Subsidiaries and have paid, where
applicable, all taxes due pursuant to such returns or pursuant to any
assessment received by the LLC or any of its Subsidiaries, except (i) those
which are currently being contested in good faith by appropriate proceedings
and for which LLC or such Subsidiary, as applicable, would be liable for the
contested taxes if the appeal is unsuccessful and has set aside on its books
adequate reserves to the extent required by GAAP or (ii) where the failure to
do so, individually or in the aggregate, would not reasonably be expected to
result in a material adverse effect on the business, consolidated financial
position or results of operations of the LLC and its Subsidiaries taken as a
whole. The charges, accruals and reserves on the books of the LLC and its
Subsidiaries in respect of taxes or other governmental charges assessable
against the LLC are, in the opinion of the LLC, adequate.  The federal tax identification number for
the LLC is 73-1590261 and the federal tax identification number for the LP is
73-1587712.

 

3.8          Material Subsidiaries.  Each of
such Borrower’s Material Subsidiaries is a corporation or other legal entity duly
incorporated or formed, validly existing and in good standing under the laws of
its jurisdiction of incorporation or formation, and has all corporate,
partnership, or other powers and all material governmental licenses,
authorizations, consents and approvals required to carry on business as now
conducted.

 

3.9          Investment Company Act.  Neither
Borrower is an “investment company” or a company “controlled” by an “investment
company”, within the meaning of the Investment Company Act of 1940, as amended.

 

3.10        Regulation U.  No part of the proceeds of the Loans will be
used by either Borrower for any purpose which violates or would be inconsistent
with the provisions of Regulation U of the Board of Governors of the Federal
Reserve.

 

3.11        Compliance with Laws.  Each
Borrower and its Subsidiaries are in compliance with all laws, regulations, and
orders (including, without limitations, ERISA and Environmental Laws) of any
Governmental Authority applicable to it or its property and all indentures,
agreements and other instruments binding upon it or its property, except where
the failure to do so, individually or in the aggregate, could not reasonably be
expected to result in a material adverse effect on the business, consolidated
financial position or results of operations of the Borrowers and their
Subsidiaries taken as a whole.

 

3.12        Purpose of Loans.  The proceeds
of the Loans shall be used for general limited liability company and
partnership purposes of either or both Borrowers.

 

SECTION 4.  CONDITIONS PRECEDENT

 

4.1          Conditions to Effectiveness of Agreement.  The effectiveness of this Agreement is
subject to the satisfaction of the following conditions on the Closing Date:

 

(a)           Loan Documents.  The Administrative Agent shall have received (i) this Agreement,
executed and delivered by a duly authorized officer of each Borrower and each
Lender and (ii) for the account of each Lender that has requested a Note, a
Note conforming to

 

25

 

the requirements
of subsection 2.2(e) and executed by a duly authorized officer of each
Borrower.

 

(b)           Closing Certificate.  The Administrative Agent shall have received
a Closing Certificate of each Borrower, substantially in the form of Exhibit C
and dated the Closing Date; such Closing Certificate shall be satisfactory in
form and substance to the Administrative Agent and its counsel and shall be
executed by the Chairman of the Board of Directors, the President or any Vice
President or the Treasurer or any Assistant Treasurer, and the Secretary or any
Assistant Secretary of the applicable Borrower.

 

(c)           Secretary’s Certificate.  The Administrative Agent shall have received
a certificate of the Secretary or Assistant Secretary of each Borrower,
substantially in the form of Exhibit D and dated the Closing Date and in form
and substance satisfactory to the Administrative Agent, which certificate shall
(i) certify as to the incumbency and signature of the officers of such Borrower
executing this Agreement and any Notes (with the President or a Vice President
of such Borrower attesting to the incumbency and signature of the Secretary or
Assistant Secretary providing such certificate), (ii) have attached to it a
true, complete and correct copy of each of the certificate of incorporation and
by-laws or equivalent organizational documents of such Borrower, (iii) have
attached to it a true and correct copy of the resolutions of the Board of
Directors or General Partner, as applicable, of such Borrower, which
resolutions shall authorize the execution, delivery and performance of this
Agreement and the Notes and the borrowings by such Borrower hereunder and (iv)
certify that, as of the date of such certificate, none of such certificate of
incorporation, by-laws or partnership agreements, as applicable, or board
resolutions or resolutions of the general partner, as applicable, shall have
been amended, supplemented, modified, revoked or rescinded.

 

(d)           Fees and Expenses.  The Administrative Agent, the Co-Lead Arrangers and the Lenders
shall have received their respective fees referred to in subsection 2.9(c) and
any expenses for which an invoice has been submitted to be received on the
Closing Date.

 

(e)           Legal Opinion.  The Administrative Agent shall have received executed legal
opinions substantially in the form of Exhibits E-1 and E-2 and dated the
Closing Date, with such changes therein as shall be requested or approved by
the Administrative Agent.

 

(f)            Approvals. 
The Administrative Agent shall have received a certificate of an officer
of the Borrowers certifying that any governmental and third party approvals
necessary and material in connection with the financing contemplated hereby and
the continuing operations of either Borrower and its Subsidiaries shall have
been obtained and be in full force and effect.

 

(g)           Representations and Warranties. The
Administrative Agent shall have received a certificate of an officer of the
Borrowers certifying that each of the representations and warranties made by
each Borrower in this Agreement shall be true and correct in all material
respects on and as of such date as if made on and as of such date.

 

(h)           No Default. The Administrative Agent shall
have received a certificate of an officer of each of the Borrowers certifying
that no Default or Event of Default shall have

 

26

 

occurred and be
continuing on such date or after giving effect to the extensions of credit, if
any, requested to be made on such date.

 

(i)            Payment and Termination of Existing Commitments.
The Administrative Agent shall have received payment in full on the Closing
Date of any outstanding amounts due under (i) that certain 364-Day Credit
Agreement (the “Prior 364-Day Credit Agreement”)
entered into as of August 28, 2003 by and among the Borrowers, Barclays Bank
PLC, as administrative agent, The Royal Bank of Scotland plc, as syndication
agent, The Bank of Tokyo-Mitsubishi Ltd. and Sumitomo Mitsui Banking
Corporation, as co-documentation agents, and the lenders from time to time
party thereto, and (ii) that certain Three-Year Credit Agreement (the “Prior Three-Year Credit Agreement”) entered
into as of August 29, 2002 by and among the Borrowers, Barclays Bank PLC, as
administrative agent, The Royal Bank of Scotland plc, as syndication agent, The
Bank of Tokyo-Mitsubishi Ltd. and Sumitomo Mitsui Banking Corporation, as
co-documentation agents, and the lenders from time to time party thereto, along
with a certificate of an officer of the Borrowers certifying that there has
been a complete termination of all commitments under each of the Prior 364-Day
Credit Agreement and the Prior Three-Year Credit Agreement.

 

4.2          Conditions to Each Loan.  The agreement of each Lender to make any Loan requested to be
made by it on any date pursuant to subsection 2.3 (including, without
limitation, its initial Loan requested to be made by it) and subsection 2.4 is
subject to the satisfaction of the following conditions precedent as of the
date such Loan is requested to be made:

 

(a)           Representations and Warranties.  Each of the representations and warranties
made by each Borrower in this Agreement shall be true and correct in all
material respects on and as of such date as if made on and as of such date,
except that the representations and warranties contained in subsections 3.4 and
3.5 shall not be restated on any Borrowing Date.

 

(b)           No Default. 
No Event of Default and no Default shall have occurred and be continuing
on such date or after giving effect to the Loans requested to be made on such
date.

 

Each borrowing by either Borrower
shall constitute a representation and warranty by the Borrowers hereunder as of
the date of each such borrowing that the conditions in this subsection 4.2 have
been satisfied.

 

SECTION 5.  AFFIRMATIVE COVENANTS OF THE BORROWERS

 

So long as any Commitment
remains in effect, any Note remains outstanding and unpaid or any other amount
is owing to any Lender or the Administrative Agent hereunder:

 

5.1          Obligations.  Each Borrower will pay and discharge, and
will cause each of its Subsidiaries to pay and discharge, at or before maturity
or before they become delinquent, all their respective material obligations and
liabilities, including, without limitation, tax liabilities, except (i) where
such obligations or liabilities may be contested in good faith by appropriate
proceedings and reserves in conformity with GAAP with respect thereto have been
provided on the books of such Borrower, or (ii) where the failure to do so,
individually or in the aggregate, would not reasonably be expected to result in
a material adverse effect on the business,

 

27

 

consolidated
financial position or results of operations of the Borrowers and their
Subsidiaries taken as a whole.

 

5.2          Financial Reporting Requirements.  The LLC will:

 

(a)           furnish
to the Administrative Agent and each Lender fiscal year audited financial
statements or make available its Annual Report on Form 10-K via the EDGAR
system of the Securities and Exchange Commission (“EDGAR”)
on the Internet, in either case, as soon as available and in any event within
90 days after the end of each fiscal year of the LLC, which fiscal year audited
financial statements will include an audited consolidated balance sheet of the
LLC and its consolidated Subsidiaries as of the end of such fiscal year and the
related audited consolidated statements of income and cash flows and changes in
members’ capital for such fiscal year, setting forth in each case in
comparative form the figures for the previous fiscal year, all reported on by independent
public accountants of nationally recognized standing;

 

(b)           furnish
to the Administrative Agent and each Lender unaudited quarterly financial
statements or make available its Quarterly Report on Form 10-Q via EDGAR on the
Internet, in either case, as soon as available and in any event within 45 days
after the end of each of the first three quarters of each fiscal year of the
LLC, which unaudited quarterly financial statements will include a consolidated
balance sheet of the LLC and its consolidated Subsidiaries as of the end of
such quarter and the related (i) consolidated statement of income for such
quarter and for the portion of the LLC’s fiscal year ended at the end of such
quarter, and (ii) consolidated statement of cash flows for the portion of the
LLC’s fiscal year ended at the end of such quarter, setting forth in each case
in comparative form (A) for the consolidated balance sheet, the figures as of
the end of the LLC’s previous fiscal year, (B) for the consolidated statement
of income, the figures for the corresponding quarter and the corresponding
portion of the LLC’s previous fiscal year and (C) for the consolidated
statement of cash flows, the figures for the corresponding portion of the LLC’s
previous fiscal year, the furnishing or making available of such financial
statements shall constitute a certification (subject to normal year-end
adjustments) as to fairness of presentation and GAAP;

 

(c)           furnish
to the Administrative Agent within 10 days of so furnishing or making available
via EDGAR each set of financial statements referred to in clause (a) above, a
certificate of the chief financial officer, Treasurer or the chief accounting
officer of the LLC stating whether there exists on the date of such certificate
any Default or Event of Default and, if any Default or Event of Default then
exists, setting forth the details thereof and the action which such Borrower is
taking or proposes to take with respect thereto.  The Administrative Agent will furnish a copy of such certificate
to each Lender within a reasonable time after receipt from the Borrowers;

 

(d)           furnish
to the Administrative Agent from time to time such additional information
regarding the financial position or business of the Borrowers and their
Subsidiaries as the Administrative Agent may reasonably request.

 

5.3          Notices. 
Each Borrower as to itself will promptly furnish, or cause to be
furnished, to the Administrative Agent notice of:  (i) the occurrence of any Default or Event of Default hereunder;
(ii) the institution of any litigation or proceeding involving it or a
Subsidiary

 

28

 

that could
reasonably be expected to materially and adversely affect the business,
financial condition or results of operations of such Borrower and its
Subsidiaries taken as a whole (whether or not the claim asserted therein is
considered to be covered by insurance); (iii) any default by such Borrower or
any of its Subsidiaries in the payment of principal of or interest on Debt of
such Borrower and/or its Subsidiaries in an aggregate amount of $100,000,000 or
more; and (iv) any downward change in the ratings publicly announced by S&P
or Moody’s of the LLC’s and LP’s then current joint and several Senior Debt.

 

5.4          Maintenance of Property; Insurance.  Each Borrower will, and will cause each of
its Subsidiaries to, (a) keep and maintain all property material to the conduct
of its business in good working order and condition, ordinary wear and tear
excepted, and (b) maintain, with financially sound insurance companies,
insurance in such amounts and against such risks as are customarily maintained,
in the reasonable judgment of the Borrowers, by companies engaged in the same
or similar businesses operating in the same or similar locations; provided,
that any such insurance may be maintained through a program of self-insurance
to the extent consistent with prudent business practice.

 

5.5          Compliance with Laws.  Each Borrower will comply, and cause each of
its Subsidiaries to comply, in all material respects with all applicable laws,
ordinances, rules, regulations, and requirements of any Governmental Authority
(including, without limitation, ERISA and the rules and regulations thereunder
and Environmental Laws), except where the necessity of compliance therewith is
contested in good faith by appropriate proceedings or to the extent that
failure to comply therewith would not reasonably be expected to have a material
adverse effect on the business, financial position or results of operations of
the Borrowers and their Subsidiaries taken as a whole.

 

5.6          Books and Records.  Each
Borrower will, and will cause each Subsidiary to, keep proper books of record
and account in which full, true and correct entries in conformity with GAAP
shall be made of all dealings and transactions in relation to its business and
activities.

 

5.7          Further Assurances.  Each
Borrower will from time to time, at its expense, promptly execute and deliver
to the Administrative Agent and the Lenders such further instruments and
documents, and take such further action, that may be reasonably necessary, or
that the Administrative Agent or the Lenders may reasonably request, in order
to enable the Administrative Agent and the Lenders to exercise or enforce their
respective rights or remedies under or in connection with this Agreement and
any Notes.

 

SECTION 6.  NEGATIVE COVENANTS OF THE BORROWERS

 

So long as any Commitment
remains in effect, any Note remains outstanding and unpaid or any other amount
is owing to any Lender or the Administrative Agent hereunder:

 

6.1          Negative Pledge.  Neither
Borrower and no Subsidiary will create, assume or suffer to exist any Lien on
any asset now owned or hereafter acquired by it, except:

 

29

(a)           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;

 

(b)           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 attached to such asset concurrently with or within six months after
the acquisition thereof;

 

(c)           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; 

 

(d)           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;

 

(e)           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
subsection 6.1; provided, that the principal amount of such Debt is not
increased and such Debt is not secured by any additional assets;

 

(f)            Permitted
Encumbrances;

 

(g)           Liens
to secure indebtedness of the pollution control or industrial revenue bond type
and Liens in favor of the United States or any state thereof, or any
department, agency, instrumentality or political subdivision of any such
jurisdiction, to secure any Debt incurred for the purpose of financing all or
any part of the purchase price or cost of constructing or improving the
property subject thereto;

 

(h)           with
respect to Non-Recourse Debt incurred by any Joint Venture, Liens on (i) any of
the equity interests in such Joint Venture held by either Borrower or any other
Subsidiary, or (ii) any Debt owing by such Joint Venture to either Borrower or
any other Subsidiary; and

 

(i)            Liens
not otherwise permitted by the foregoing clauses of this subsection 6.1,
securing Debt in an aggregate principal amount at any time outstanding not to
exceed 10% of Consolidated Net Assets.

 

6.2          Consolidations, Mergers and Sales of Assets.  Neither of the Borrowers will merge with or
into or consolidate with or sell, transfer, lease or otherwise dispose of (in
one transaction or in a series of transactions and including by means of any
liquidation, dissolution, merger or sale of Capital Stock or otherwise) all or
substantially all of its assets and those of its Subsidiaries, taken as a
whole, to a Person unless (i) the resulting, surviving or transferee Person
(the “Successor”) shall (unless such
Successor is a Borrower) expressly assume, by amendment to this Agreement
executed by the Borrowers, the Successor and the Administrative Agent, all of
the obligations of such Borrower under this Agreement, the Loans and any Notes;
(ii) immediately after giving effect to such transaction, no Default or Event
of Default shall have occurred and be continuing; and (iii) such Successor,
immediately after giving effect to such transaction, shall have an Investment
Grade Rating, if, immediately before the transaction, the Senior Debt has an
Investment Grade Rating; provided, if,
immediately before the transaction,

 

30

 

the Senior Debt
does not have an Investment Grade Rating, in no event shall the rating by
S&P and Moody’s of the long term unsecured senior debt securities of such
Successor, immediately after the transaction, be less than such ratings of the
Senior Debt immediately prior to the transaction.

 

SECTION 7.  EVENTS OF DEFAULT

 

Upon the occurrence and
during the continuance of any of the following events:

 

(a)           any
principal of any Loan shall not be paid when due in accordance with the terms
hereof; or

 

(b)           any
interest on any Loan, any Commitment Fee, Utilization Fee or Agent’s/Arranger’s
Fees shall not be paid when due, and, in each case, such amount shall remain
unpaid for 5 days; or

 

(c)           any
representation or warranty made by either Borrower in Section 3 or in any
certificate, financial or other statement furnished by such Borrower pursuant
to this Agreement shall prove to have been incorrect in any material adverse
respect when made; or

 

(d)           either
Borrower shall fail to perform or observe any of its covenants or agreements
contained in Section 6 and such failure continues unremedied for 30 days; or

 

(e)           either
Borrower shall fail to perform or observe any other term, covenant or agreement
contained in this Agreement or any Notes, and any such failure shall remain
unremedied for 30 days after notice of such failure shall have been given to
the Borrowers by the Administrative Agent or the Required Lenders; or

 

(f)            either
Borrower or any of its Material Subsidiaries shall default beyond any
applicable period of grace in any payment of principal of or interest on any
indebtedness for any borrowed money for which such Borrower or such Material
Subsidiary is liable (other than indebtedness as to which the lenders thereof
have agreed that there shall be no recourse against the assets of the Borrower
or any Material Subsidiary, as the case may be, other than the assets securing
such indebtedness) in an amount then outstanding of $100,000,000 or more when
due, whether by its terms or as a result of such indebtedness becoming or being
declared due and payable prior to the date on which it could otherwise become
due and payable; or

 

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

 

31

 

(h)           (i)
with respect to clause (A), ConocoPhillips, ChevronTexaco or any of their
respective Affiliates shall as to either Borrower, and (ii) with respect to all
clauses in this subsection 7(h), either Borrower or any Material Subsidiary,
shall (A) voluntarily commence any proceeding or file any petition seeking
liquidation, reorganization or other relief under any Federal, state or foreign
bankruptcy, insolvency, receivership or similar law now or hereafter in effect,
(B) consent to the institution of, or fail to contest in a timely and
appropriate manner, any proceeding or petition described in clause (g) of this
Section, (C) apply for or consent to the appointment of a receiver, trustee,
custodian, sequestrator, conservator or similar official for such Borrower or
such Material Subsidiary or for a substantial part of its assets, (D) file an
answer admitting the material allegations of a petition filed against it in any
such proceeding, (E) make a general assignment for the benefit of creditors or
(F) take any action for the purpose of effecting any of the foregoing; or

 

(i)            one
or more judgments or decrees shall be entered against either Borrower or any of
their respective Subsidiaries or any combination thereof involving in the
aggregate a liability (not paid or covered by insurance) of $100,000,000 or
more with respect to such Borrower or such Subsidiary and the same shall remain
undischarged for a period of 30 consecutive days during which execution shall
not be effectively stayed, or any action shall be legally taken by a judgment
creditor to attach or levy upon any assets of either Borrower or any Subsidiary
to enforce any such judgment or judgments; or

 

(j)            an
ERISA Event shall have occurred that, when taken together with all other ERISA
Events that have occurred, would reasonably be expected to result in liability
of the LLC and its Subsidiaries in an aggregate amount that would reasonably be
expected to result in a material adverse effect on the business, consolidated
financial position or results of operations of the Borrowers and their
Subsidiaries taken as a whole; or

 

(k)           ConocoPhillips
and/or ChevronTexaco shall cease to own, directly or indirectly, in the
aggregate at least 50% of the Common Stock of, and the total voting power of
the outstanding Voting Stock of, each of LLC, LP, and all partners in LP;

 

then, and in any such
event, (A) if such event is an Event of Default specified in subsections 7(g)
or (h) above with respect to either Borrower, automatically the Commitments
shall terminate and the Loans hereunder (with accrued interest thereon) and all
other amounts owing under this Agreement and any Notes shall immediately become
due and payable, and (B) if such event is any other Event of Default, either or
both of the following actions may be taken: (i) with the consent of the
Required Lenders, the Administrative Agent may, or upon the request of the
Required Lenders, the Administrative Agent shall, by notice of default to the
Borrowers, declare the Commitments to be terminated forthwith, whereupon the
Commitments shall immediately terminate; and (ii) with the consent of the
Required Lenders, the Administrative Agent may, or upon the request of the
Required Lenders, the Administrative Agent shall, by notice of default to the
Borrowers, declare the Loans hereunder (with accrued interest thereon) and all
other amounts owing under this Agreement and any Notes to be due and payable
forthwith, whereupon the same shall immediately become due and payable.  Except as expressly provided above in this
Section 7, presentment, demand, protest, notice of acceleration, notice of
intent to accelerate, and all other notices of any kind are hereby expressly
waived.

 

32

 

SECTION 8.  THE ADMINISTRATIVE AGENT

 

8.1          Appointment of Administrative Agent; No Other Duties.  Subject to subsection 8.9, each Lender
hereby irrevocably designates and appoints Barclays Bank PLC as the
Administrative Agent of such Lender under this Agreement, and each such Lender
irrevocably authorizes Barclays Bank PLC as the Administrative Agent for such
Lender, to take such action on its behalf under the provisions of this
Agreement and to exercise such powers and perform such duties as are expressly
delegated to the Administrative Agent by the terms of this Agreement, together
with such other powers as are reasonably incidental thereto. Notwithstanding
any provision to the contrary elsewhere in this Agreement, the Administrative
Agent shall not have any duties or responsibilities, except those expressly set
forth herein, or any fiduciary relationship with any Lender, and no implied
covenants, functions, responsibilities, duties, obligations or liabilities
shall be read into this Agreement or otherwise exist against the Administrative
Agent. Without limiting the generality of the foregoing sentence, the use of
the term “agent” in this Agreement with reference to the Administrative Agent
is not intended to connote any fiduciary or other implied (or express)
obligations arising under agency doctrine of any applicable law.  Instead, such term is used merely as a
matter of market custom, and is intended to create or reflect only an
administrative relationship between independent contracting parties.

 

8.2          Delegation of
Duties.  The Administrative Agent may execute any of
its duties under this Agreement by or through agents, employees or
attorneys-in-fact and shall be entitled to advice of counsel concerning all
matters pertaining to such duties.  The
Administrative Agent shall not be responsible for the negligence or misconduct
of any agents or attorneys-in-fact selected by it in the absence of the
Administrative Agent’s gross negligence or willful misconduct.

 

8.3          Exculpatory
Provisions.  Neither the Administrative Agent nor any of
its officers, directors, employees, agents, attorneys-in-fact or Affiliates
(collectively, the “Administrative Agent-Related
Persons”) shall be (i) liable for any action lawfully taken or
omitted to be taken by it or such Person under or in connection with this
Agreement (except for its or such Person’s own gross negligence or willful
misconduct), or (ii) responsible in any manner to any of the Lenders for any
recitals, statements, representations or warranties made by either Borrower or
any officer thereof contained in this Agreement or in any certificate, report,
statement or other document referred to or provided for in, or received by the
Administrative Agent under or in connection with, this Agreement or for the
value, validity, effectiveness, genuineness, enforceability or sufficiency of
this Agreement or any Notes or for any failure of either Borrower to perform
its obligations hereunder or thereunder. 
No Administrative Agent-Related Person shall be under any obligation to
any Lender to ascertain or to inquire as to the observance or performance of
any of the agreements contained in, or conditions of, this Agreement, or to
inspect the properties, books or records of either Borrower or any Subsidiary
or Affiliate thereof. 

 

8.4          Reliance by
Administrative Agent.  (a) The Administrative Agent shall be
entitled to rely, and shall be fully protected in relying, upon any Note,
writing, communication, signature, resolution, notice, consent, certificate,
affidavit, letter, cablegram, telegram, telecopy, telex, teletype or telephone message,
statement, order or other document or conversation

 

33

 

believed by it to
be genuine and correct and to have been signed, sent or made by the proper
Person or Persons and upon advice and statements of legal counsel (including,
without limitation, counsel to either Borrower), independent accountants and
other experts selected by the Administrative Agent.  The Administrative Agent may deem and treat the registered owner
of any Note as the owner thereof for all purposes unless a written notice of
assignment, negotiation or transfer thereof shall have been filed with the
Administrative Agent.  The
Administrative Agent shall be fully justified in failing or refusing to take
any action under this Agreement and any Note unless it shall first receive such
advice or concurrence of the Required Lenders as it deems appropriate or it
shall first be indemnified to its satisfaction by the Lenders against any and
all liability and expense which may be incurred by it by reason of taking or
continuing to take any such action.  The
Administrative Agent shall in all cases be fully protected in acting, or in
refraining from acting, under this Agreement and any Notes in accordance with a
request of the Required Lenders, and such request and any action taken or
failure to act pursuant thereto shall be binding upon all the Lenders and all
future holders of any Notes.  Where this
Agreement expressly permits or prohibits an action unless Required Lenders
otherwise determine, and in all other instances, the Administrative Agent may,
but shall not be required to, initiate any solicitation for the consent or a
vote of the Lenders.

 

(b)           For
purposes of determining compliance with the conditions specified in subsection
4.1, each Lender shall be deemed to have consented to, approved or accepted or
to be satisfied with, each document or other matter either sent by the
Administrative Agent to each Lender for consent, approval, acceptance or
satisfaction, or required thereunder to be consented to or approved by or
acceptable or satisfactory to a Lender.

 

8.5          Notice of Default. 
The Administrative Agent shall not be deemed to have knowledge or notice
of the occurrence of any Default or Event of Default hereunder (other than an
Event of Default described in subsection 7(a)) unless the Administrative Agent
has received written notice from a Lender or either Borrower referring to this
Agreement, describing such Default or Event of Default and stating that such
notice is a “notice of default”, and the Administrative Agent shall not be
responsible for or have any duty to ascertain or inquire into (i) any
statement, warranty or representation made in or in connection with this
Agreement, (ii) the contents of any certificate, report or other document delivered
hereunder or in connection herewith, (iii) the performance or observance of any
of the covenants, agreements or other terms or conditions set forth herein,
(iv) the validity, enforceability, effectiveness or genuineness of this
Agreement or any other agreement, instrument or document, or (v) the
satisfaction of any condition set forth in Section 4 or elsewhere herein, other
than to confirm receipt of items expressly required to be delivered to the
Administrative Agent.  In the event that
the Administrative Agent receives such a notice or any notice pursuant to
subsection 5.2 or 5.3, the Administrative Agent shall give prompt notice
thereof to the Lenders.  The
Administrative Agent shall take such action with respect to such Default or
Event of Default as shall be reasonably directed by the Required Lenders in
accordance with Section 7; provided, that unless and until the Administrative
Agent shall have received any such directions, the Administrative Agent may
(but shall not be obligated to) take such action, or refrain from taking such
action, with respect to such Default or Event of Default as it shall deem
advisable or in the best interests of the Lenders.

 

8.6          Non-Reliance on Administrative Agent and Other Lenders.  Each Lender expressly acknowledges that no
Administrative Agent-Related Person has made any

 

34

 

representations or
warranties to it and that no act by the Administrative Agent hereinafter taken,
including any consent to and acceptance of any assignment or review of the
affairs of each Borrower or any of their Subsidiaries or Affiliates, shall be
deemed to constitute any representation or warranty by any Administrative
Agent-Related Person to any Lender, including whether any Administrative
Agent-Related Persons have disclosed material information in their
possession.  Each Lender represents to
the Administrative Agent that it has, independently and without reliance upon
any Administrative Agent-Related Person or any other Lender, and based on such
documents and information as it has deemed appropriate, made its own appraisal
of and investigation into the business, prospects, operations, property,
financial and other condition and creditworthiness of each Borrower and its
Subsidiaries and Affiliates, and all applicable bank regulatory laws relating
to the transactions contemplated hereby, and made its own decision to make its
portion of the Loans hereunder and enter into this Agreement.  Each Lender also represents that it will,
independently and without reliance upon any Administrative Agent-Related Person
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 analysis,
appraisals and decisions in taking or not taking action under this Agreement
and any Notes, and to make such investigation as it deems necessary to inform
itself as to the business, prospects, operations, property, financial and other
condition and creditworthiness of each Borrower and their Subsidiaries and
Affiliates.  Except for notices, reports
and other documents expressly required to be furnished to the Lenders by the
Administrative Agent hereunder, the Administrative Agent shall not have any
duty or responsibility to provide any Lender with any credit or other
information concerning the business, prospects, operations, property, financial
and other condition or creditworthiness of either Borrower or any of their
Subsidiaries or Affiliates which may come into the possession of any Administrative
Agent-Related Person.

 

8.7          Indemnification. 
Whether or not the transactions contemplated hereby are consummated, the
Lenders agree to indemnify each Administrative Agent-Related Person in its
capacity as such (to the extent not reimbursed by the Borrower within a
reasonable period after demand has been made by the Administrative Agent to the
Borrowers for those amounts owing by either Borrower, and without limiting the
obligation of the Borrowers to do so), ratably according to the respective
principal amounts of their Commitments and hold harmless each Administrative
Agent-Related Person, from and against any and all liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind whatsoever which may at any time (including without
limitation at any time following the payment of the Loans) be imposed on,
incurred by or asserted against the Administrative Agent in any way relating to
or arising out of this Agreement, or any documents contemplated by or referred
to herein or the transactions contemplated hereby or any action taken or
omitted by any Administrative Agent-Related Person under or in connection with
any of the foregoing; provided, that no Lender shall be liable for the payment
of any portion of such liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements resulting solely
from any Administrative Agent-Related Person’s gross negligence or willful
misconduct; provided, however, that no action taken in accordance with the
directions of Required Lenders shall be deemed to constitute gross negligence
or 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 legal fees and expenses) incurred by the
Administrative Agent in connection with the

 

35

 

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, 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
either Borrower.  The undertaking in
this Section shall survive the payment of all obligations hereunder and the
resignation or replacement of the Administrative Agent.  

 

8.8          Administrative Agent in Its Individual
Capacity.  Barclays Bank PLC and its Affiliates may
make loans to, issue letters of credit for the account of, accept deposits
from, acquire equity interests in and generally engage in any kind of banking,
trust, financial advisory, underwriting or other business with either Borrower
and its Subsidiaries and Affiliates as though Barclays Bank PLC were not the
Administrative Agent or the Same Day Lender hereunder and without notice to or
consent of the Lenders.  The Lenders
acknowledge that, pursuant to such activities, Barclays Bank PLC or its
Affiliates may receive information regarding any Borrower or its Affiliates
(including information that may be subject to confidentiality obligations in
favor of either Borrower or such Affiliate) and acknowledge that the
Administrative Agent shall be under no obligation to provide such information
to them.  With respect to its Loans,
Barclays Bank PLC shall have the same rights and powers under this Agreement as
any other Lender and may exercise the same as though it were not the
Administrative Agent or the Same Day Lender.

 

8.9          Successor or Substitute Administrative
Agent.  (a) The Administrative Agent may resign as
Administrative Agent upon not less than 10 days’ notice to the Lenders and the
Borrowers.  If the Administrative Agent
shall resign as Administrative Agent under this Agreement, then the Borrowers
shall appoint from among the Lenders a successor agent for the Lenders;
provided, if an Event of Default under subsections 7(g) or (h) has occurred and
is continuing, then the Required Lenders shall appoint from among the Lenders a
successor agent for the Lenders.  If no
successor administrative agent is appointed prior to the effective date of the
resignation of the Administrative Agent, the Administrative Agent may appoint a
successor administrative agent from among the Lenders (i) after consulting with
the Lenders and (ii) unless an Event of Default has occurred and is continuing,
subject to the Borrowers’ consent (such consent not to be unreasonably
withheld).

 

(b)           Any
successor or substitute agent pursuant to subsection 8.9(a) shall succeed to
the rights, powers and duties of the Administrative Agent, and the term
“Administrative Agent” shall mean such successor or substitute agent effective
upon its acceptance of its appointment, and the former Administrative Agent’s
rights, powers and duties as Administrative Agent shall be terminated upon the
acceptance by such successor or substitute agent of its appointment, without
any other or further act or deed on the part of such former Administrative
Agent or any of the parties to this Agreement or any holders of the Loans.  After any retiring Administrative Agent’s
resignation hereunder as Administrative Agent, the provisions of Section 8
shall inure to its benefit as to any actions taken or omitted to be taken by it
while it was Administrative Agent under this Agreement.

 

8.10        Syndication Agent; Co-Documentation
Agents; Co-Lead Arrangers.  None of the Lenders or other Persons or the
Co-Lead Arrangers identified on the facing page, in this Agreement, or
signature pages of this Agreement as a “syndication agent,” “co-documentation
agent,” “managing agent,” “co-agent,” “co-lead arranger,” or “co-book manager”
shall have any

 

36

 

right, power,
obligation, liability, responsibility or duty under this Agreement other than
those applicable to all Lenders as such. 
Without limiting the foregoing, none of the Lenders or other Persons or
the Co-Lead Arrangers so identified as a “syndication agent,” “co-documentation
agent,” “managing agent,” “co-agent,” “co-lead arranger,” or “co-book manager”
shall have, or be deemed to have, any fiduciary relationship with any Lender.  Each Lender acknowledges that it has not
relied, and will not rely, on any of the Lenders or the Co-Lead Arrangers so
identified in deciding to enter into this Agreement or in taking or not taking
action hereunder.

 

SECTION 9.  MISCELLANEOUS

 

9.1          Amendments and
Waivers.  Neither this Agreement, any Note, nor any
terms hereof or thereof may be waived, amended, supplemented or modified,
except in accordance with the provisions of this subsection.  The Required Lenders may, or with the
written consent of the Required Lenders, the Administrative Agent may, from
time to time, enter into with the Borrowers written waivers, amendments,
supplements or modifications hereto for the purpose of adding any provisions to
this Agreement or any Notes or changing in any manner the rights of the Lenders
or the Borrowers hereunder or thereunder or waiving, on such terms and
conditions as may be specified in such instrument, any of the requirements of
this Agreement or any Notes or any Default or Event of Default and its consequences;
provided, however, that no such waiver and no such amendment, supplement or
modification shall (a) reduce the amount or extend the scheduled date of
maturity of any Loan or of any mandatory prepayment thereof, reduce the stated
rate of any interest thereon or fee payable hereunder or extend the scheduled
date of any payment thereof or increase the aggregate amount or extend the
expiration date of any Lender’s Commitment, in each case without the written
consent of each Lender affected thereby, (b) amend, modify or waive any
provision of this subsection 9.1 or reduce the percentage specified in the
definition of Required Lenders, or consent to the assignment or transfer by
either Borrower of any of its rights and obligations under this Agreement, or
release either Borrower from liability hereunder or under any Note, in each
case without the written consent of all the Lenders, or (c) amend, modify or
waive any provision of Section 8 or otherwise affect the rights or duties of
the Administrative Agent without the written consent of the then Administrative
Agent.  In addition, no such agreement
shall amend, modify or otherwise affect the rights or duties of the Same Day
Lender under this Agreement without the prior written consent of the Same Day
Lender. Any such waiver and any such amendment, supplement or modification
shall apply equally to each of the Lenders and shall be binding upon the
Borrowers, the Lenders, the Administrative Agent and all future holders of the
Loans.  In the case of any waiver, the
Borrowers, the Lenders and the Administrative Agent shall be restored to their
former positions and rights hereunder and under the outstanding Loans, and any
Default or Event of Default waived shall be deemed to be cured and not
continuing; but no such waiver shall extend to any subsequent or other Default
or Event of Default, or impair any right consequent thereon.

 

9.2          Notices.  Unless otherwise expressly permitted to be
given by telephone (not voicemail), all notices, requests, demands or other
communications to or upon the respective parties hereto to be effective shall
be in writing (including by telecopy) and shall be deemed to have been duly
given or made when delivered or on the fourth Business Day after depositing the
same in the mails, registered or certified mail, postage prepaid or in the case
of notice by telecopy, when receipt is confirmed. All notices shall be
addressed as follows in the case of the Borrowers and the Administrative Agent,
and as set forth in Schedule I in the
case of any

 

37

 

Lender, or to such
other address as any of the parties hereto and any future holders of the Loans
may designate by written notice:

 

	
  The Borrowers:

  	
   

  	
  Chevron Phillips Chemical Company LLC and

  Chevron Phillips Chemical Company LP

  10001 Six Pines Drive

  The Woodlands, Texas  77380

  Attention: Treasurer

  Telecopier:  (832) 813-4771

  Telephone:  (832) 813-4436

  
	
   

  	
   

  	
   

  
	
  Notice for Borrowings:

  	
   

  	
  Barclays Bank PLC, New York Branch

  200 Park Avenue, 4th Floor

  New York, NY 10166

  Attention: May
  Wong

  Telecopier:  (212) 412-5306

  Telephone:  (212) 412-2716
Email:  may.wong@barcap.com

  
	
   

  	
   

  	
   

  
	
  The Administrative Agent:

  (for all notices other than

  notices of borrowing)

  	
   

  	
  Barclays Capital

  200 Park Avenue, 4th Floor

  New York, NY 10166

  Attention: Nicholas A. Bell

  Telecopier: (212) 412-7600

  Telephone: (212) 412-4029

  Email: nicholas.bell@barcap.com

  
	
   

  	
   

  	
   

  
	
  The Same Day Lender:

  	
   

  	
  Barclays Bank PLC, New York Branch

  200 Park Avenue, 4th Floor

  New York, NY 10166

  Attention: May
  Wong

  Telecopier:  (212) 412-5306

  Telephone:  (212) 412-2716
Email:  may.wong@barcap.com

  

 

provided, that any
notice, request, demand or other communication to or upon the Administrative
Agent or the Lenders pursuant to subsections 2.3, 2.4, 2.5(b) and (c), and 2.7
shall not be effective until received. 
Electronic mail and internet and intranet websites may be used to
distribute routine communications, such as financial statements and other
information, and to distribute agreements and other documents to be signed by
Administrative Agent, Syndication Agent, Co-Documentation Agents, Co-Lead
Arrangers, Lenders and Borrowers.  No
other legally binding or time-sensitive communication or request for a Loan or
a continuation or

 

38

 

conversion thereof may be
sent by electronic mail without the consent of, or confirmation to, the
intended recipient in each instance.

 

9.3          No Waiver;
Cumulative Remedies.  No
failure to exercise and no delay in exercising, on the part of the
Administrative Agent or any Lender, 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.

 

9.4          Confidentiality. 
Each Lender shall maintain in confidence and not disclose to any Person
any non-public information furnished to it pursuant to this Agreement and
designated by either Borrower as such (“Confidential
Information”) without the prior consent of such Borrower, subject to
each Lender’s (a) obligation to disclose any Confidential Information pursuant
to a request or order under applicable laws and regulations or pursuant to a
subpoena or other legal process, (b) right to disclose any Confidential
Information to other Lenders, to bank examiners, to its Affiliates, auditors
and counsel, and to any Participant or Purchasing Lender (each, a “Transferee”) and prospective Transferee
pursuant to subsection 9.6(c) approved by such Borrower (other than during the
existence of an Event of Default under subsection 7(g) or (h)), (c) right to
disclose any Confidential Information in connection with any litigation or
dispute or the exercise of any remedy hereunder involving the Administrative
Agent or the Lenders and either Borrower or any of its Subsidiaries; provided, however,
that Confidential Information disclosed pursuant to clause (b) or (c) of this
sentence shall be so disclosed subject to such procedures as are reasonably
calculated to maintain the confidentiality thereof.  Notwithstanding the foregoing provisions of this subsection 9.4,
(a) the foregoing obligation of confidentiality shall not apply to any
Confidential Information that was known to such Lender or any of their
respective Affiliates prior to the time it received such Confidential Information
from either Borrower pursuant to this Agreement, other than as a result of the
disclosure thereof by a Person who, to the knowledge or reasonable belief of
such Lender, was prohibited from disclosing it by any duty of confidentiality
arising (under this Agreement or otherwise) by contract or law, (b) the
foregoing obligation of confidentiality shall not apply to any Confidential
Information that becomes part of the public domain independently of any act of
such Lender not permitted hereunder or when identical or substantially similar
information is received by such Lender, without restriction as to its
disclosure or use, from a Person who was not prohibited from disclosing it by
any duty of confidentiality arising (under this Agreement or otherwise) by
contract or law, (c) the foregoing obligation of confidentiality shall not
apply to, and each of the Agents and the Lenders (and each Person employed or
retained by such Agents or Lenders who are or are expected to become engaged in
evaluating, approving, structuring or administering the Loans) may disclose to
any Person, without limitation of any kind, the “tax treatment” and “tax
structure” (in each case, within the meaning of United States Treasury
Regulation Section 1.6011-4) of the Loan transactions contemplated by this
Agreement and the Notes, and all materials of any kind (including opinions or
other tax analyses) related thereto that are or have been provided to such
Agent or Lender relating to such tax treatment or tax structure; provided, that with respect to any
document or similar item that in either case contains confidential information
concerning such tax treatment or tax structure of the Loan transactions
contemplated by this Agreement and the Notes as well as other information, this
sentence shall only apply to

 

39

 

such portions of
the documents or similar item that relate to such tax treatment or tax
structure, and (d) each Lender that is subject to the Act (as hereinafter
defined) and the Administrative Agent (for itself and not on behalf of any
Lender), provided that it is subject to the Act, hereby notifies the Borrowers
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 each Borrower, which
information includes the name and address of each Borrower and other
information required by the Act that will reasonably allow such Lender or the Administrative
Agent, as applicable, to identify each Borrower in accordance with the Act. The
obligations of each Lender under this subsection 9.4 shall survive the
termination of this Agreement and the payment of any Notes and all other
amounts payable hereunder.

 

9.5          Payment of Expenses; Indemnification.  (a) The Borrowers agree (i) to pay or
reimburse the Administrative Agent and the Co-Lead Arrangers for all their
out-of-pocket costs and expenses incurred in connection with the development,
preparation, negotiation, execution and syndication of this Agreement and any
Notes and any other documents prepared in connection herewith, and the
consummation of the transactions contemplated hereby and thereby, including,
without limitation, the reasonable legal fees and disbursements of Mayer,
Brown, Rowe & Maw LLP, counsel to the Administrative Agent, but excluding
all other legal fees and disbursements, (ii) to pay or reimburse the
Administrative Agent for all their costs and expenses incurred in connection
with any amendment, supplement or modification requested by either or both
Borrowers to this Agreement and any Notes and any other documents prepared in
connection herewith, including, without limitation, the reasonable legal fees
and disbursements of counsel to the Administrative Agent, but excluding all
other legal fees and disbursements, and (iii) to pay or reimburse the
Administrative Agent and the Lenders in connection with the enforcement or
preservation of any rights under this Agreement, any Notes and any such other
documents, including, without limitation, legal fees and disbursements of
counsel to the Administrative Agent and counsel to each Lender.

 

(b)           The
Borrowers shall indemnify the Administrative Agent, the Syndication Agent, the
Co-Documentation Agents, the Co-Lead Arrangers, and the Lenders and any of
their respective Affiliates, and their respective directors, officers,
employees and agents (each such Person being called an “Indemnitee”) against, and hold each
Indemnitee harmless from, any and all losses, claims, damages, liabilities and
related expenses, including the fees, charges and disbursements of any counsel
for any Indemnitee, incurred by or asserted against any Indemnitee arising out
of, in connection with, or as a result of (i) the execution or delivery of this
Agreement or any agreement or instrument contemplated hereby, the performance
by the parties hereto of their respective obligations hereunder or the
consummation of the transactions contemplated hereby, (ii) any Loan or the use
of the proceeds therefrom, or (iii) any actual or prospective claim,
litigation, investigation or proceeding relating to any of the foregoing,
whether based on contract, tort or any other theory and regardless of whether
any Indemnitee is a party thereto; provided, that such indemnity shall not, as
to any Indemnitee, be available to the extent that such losses, claims,
damages, liabilities or related expenses resulted in whole or in part from the
gross negligence or willful misconduct of such Indemnitee.

 

9.6          Successors and Assigns; Participations;
Purchasing Lenders. 
(a) This Agreement shall be binding upon and inure to the benefit of the
Borrowers, the Lenders, the

 

40

 

Administrative
Agent, all future holders of the Loans and their respective successors and
assigns, except that neither Borrower may assign or transfer any of its rights
or obligations under this Agreement without the prior written consent of each
Lender.

 

(b)           Any
Lender may, in accordance with applicable law, at any time sell to one or more
banks or other entities (each, a “Participant”)
participating interests in any Loan owing to such Lender, any Note held by such
Lender, any Commitment of such Lender or any other interests of such Lender hereunder.  In the event of any such sale by a Lender of
a participating interest to a Participant, such Lender’s obligations under this
Agreement to the other parties to this Agreement shall remain unchanged, such
Lender shall remain solely responsible for the performance thereof, such Lender
shall remain the holder of its Loan for all purposes under this Agreement, and
the Borrowers and the Administrative Agent 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, modification or waiver described in clause (a) of the proviso to subsection
9.1 that affects such Participant. 
Without affecting the limitations in the preceding sentences, the
participating banks or other financial institutions, shall not be Lenders
hereunder for any purpose except, if the participation agreement so provides,
each Participant shall be entitled to the benefits of subsections 2.14, 2.16,
and 2.17 with respect to its participation in the Commitments and the Loans
outstanding from time to time as if it were a Lender; provided, that no
Participant shall be entitled to receive any greater amount pursuant to any
such subsection than the transferor Lender would have been entitled to receive
in respect of the amount of the participation transferred by such transferor
Lender to such Participant had no such transfer occurred; and provided further,
that, in the case of subsection 2.16, such Participant shall have complied with
the requirements of that subsection.

 

(c)           Each
Lender may, in accordance with applicable law, with the consent of the
Borrowers (which shall not be unreasonably withheld and which will not be
required during the existence of an Event of Default under subsections 7(g) or
(h)), the Same Day Lender and the Administrative Agent (except no consent of
the Borrowers or the Administrative Agent shall be required in the case of an
assignment to a Lender or an Affiliate of a Lender) sell or assign to one or
more Lenders or additional banks or other entities (a “Purchasing Lender”) all or a part of its
rights and obligations under this Agreement and any Notes pursuant to an
Assignment and Acceptance executed by such Purchasing Lender, such transferor
Lender, the Administrative Agent, the Same Day Lender and the Borrowers;
provided, that, if such sale is not to one or more Lenders and is to an
additional lender, (i) such sale shall be in a minimum amount of $10,000,000
and (ii) the Commitment retained by such transferor Lender after such sale
shall be at least $10,000,000, unless the transferor Lender sells all of its
Commitment hereunder.  Upon (i) the
execution of such Assignment and Acceptance, (ii) delivery of any executed
forms required by subsection 2.16, (iii) recordation of such transfer in the
Register and (iv) payment by such Purchasing Lender of the registration and
processing fee described in subsection 9.6(e), from and after the Transfer
Effective Date determined pursuant to such Assignment and Acceptance (which
shall not be earlier than the date which is five Business Days after the date
the Administrative Agent has received the Assignment and Acceptance), such
Purchasing Lender

 

41

 

shall for all
purposes be a Lender party to this Agreement and shall have all the rights and
obligations of a Lender under this Agreement to the same extent as if it were an
original party hereto with a Commitment as set forth therein and the transferor
Lender shall be released from any further obligations under this Agreement to
the extent of such assigned interests; if such transferor Lender no longer
holds any rights or obligations under this Agreement, such transferor Lender
shall cease to be a “Lender” hereunder except that its rights under subsections
2.14, 2.16, 2.17 and 9.5 shall not be affected.  Such Assignment and Acceptance shall be deemed to amend this
Agreement to the extent, and only to the extent, necessary to reflect the
addition of such Purchasing Lender and the resulting adjustment of the
Commitments and the Commitment Percentages arising from the purchase by such
Purchasing Lender of all or a portion of the rights and obligations of such
transferor Lender under this Agreement. 
Upon the consummation of any transfer to a Purchasing Lender pursuant to
this subsection 9.6(c), the transferor Lender, the Administrative Agent and the
Borrowers shall make appropriate arrangements so that, if required, a
replacement Note is issued to such transferor Lender and a new Note or, as
appropriate, a replacement Note, is issued to such Purchasing Lender, in each
case in principal amounts reflecting their respective Commitments.  Such new Notes shall be dated the Closing
Date and shall otherwise be in the form of the Notes replaced thereby.

 

(d)           The
Administrative Agent shall maintain, as agent for the Borrowers, at its address
referred to in subsection 9.2, a copy of each Assignment and Acceptance
delivered to it and a register (the “Register”)
for the recordation of the names and addresses of the Lenders and the
Commitment of, and principal amount of the Loans owing to, each Lender from
time to time.  The entries in the Register
shall be conclusive, in the absence of manifest error, and the Borrowers, the
Administrative Agent and the Lenders may treat each Person whose name is
recorded in the Register as the owner of the Loan recorded therein for all
purposes of this Agreement.  Any
assignment of any Loan, whether or not evidenced by a Note, shall be effective
only upon appropriate entries with respect thereto being made in the
Register.  Any assignment or transfer of
all or part of a Loan evidenced by a Note shall be registered on the Register
only upon surrender for registration of assignment or transfer of the Note
evidencing such Loan, accompanied by a duly executed Assignment and Acceptance,
and thereupon one or more new Notes shall be issued to the designated Assignee.  The Register shall be available for
inspection by either Borrower or any Lender at any reasonable time and from
time to time upon reasonable prior notice. 
Upon the written request of the Borrowers, the Administrative Agent
shall deliver promptly a copy of the Register to the Borrowers.

 

(e)           Upon
its receipt of an Assignment and Acceptance executed by a transferor Lender, a
Purchasing Lender, the Borrowers, the Same Day Lender, and the Administrative
Agent, together with payment by the Purchasing Lender to the Administrative
Agent of a registration and processing fee of $3,500 from such Purchasing
Lender and/or such transferor Lender (including in the case of assignments to
Affiliates of assigning Lenders), the Administrative Agent shall (i) promptly
accept such Assignment and Acceptance, (ii) on the Transfer Effective Date
determined pursuant thereto record the information contained therein in the
Register and give notice of such acceptance and recordation to the Lenders and
the Borrowers.

 

(f)            Each
Borrower authorizes each Lender to disclose to any Transferee and any
prospective Transferee any and all financial information (other than
Confidential

 

42

 

Information,
except as permitted by subsection 9.4) in such Lender’s possession concerning
such Borrower which has been delivered to such Lender by such Borrower pursuant
to this Agreement or which has been delivered to such Lender by such Borrower
in connection with such Lender’s credit evaluation of such Borrower prior to
entering into this Agreement.

 

(g)           For
avoidance of doubt, the parties to this Agreement acknowledge that the
provisions of this subsection 9.6 concerning assignments of Loans and Notes
relate only to absolute assignments and that such provisions do not prohibit
assignments creating security interests, including, without limitation, any
pledge or assignment by a Lender of any Loan or Note to any Federal Reserve
Bank in accordance with applicable law; provided that no such assignment,
whether to a Federal Reserve Bank or other entity, shall release a Lender from
any of its obligations hereunder or substitute any such Federal Reserve Bank or
other entity for such Lender as a party hereto or permit an absolute assignment
to occur other than in accordance with such provisions of this subsection 9.6.

 

9.7          Adjustments;
Set-off.  (a) Except to the extent that this Agreement
expressly provides for payments to be allocated to a particular Lender, if any
Lender (a “Benefited Lender”) shall, at
any time after the Loans have been declared to be due and payable pursuant to
Section 7, receive any payment of all or part of its Loans, or interest
thereon, or receive any collateral in respect thereof (whether voluntarily or
involuntarily, by set-off, pursuant to events or proceedings of the nature
referred to in subsection 7(f), or otherwise) in a greater proportion than any
such payment to and collateral received by any other Lender, if any, in respect
of such other Lender’s Loans, or interest thereon, such Benefited Lender shall
purchase for cash from the other Lenders such portion of each such other
Lender’s Loans, or shall provide such other Lenders with the benefits of any
such collateral, or the proceeds thereof, as shall be necessary to cause such
Benefited Lender to share the excess payment or benefits of such collateral or
proceeds ratably with each of the Lenders; provided, however, that if all or
any portion of such excess payment or benefits is thereafter recovered from
such Benefited Lender, such purchase shall be rescinded, and the purchase price
and benefits returned, to the extent of such recovery, but without
interest.  Each Borrower agrees that
each Lender purchasing a portion of another Lender’s portion of the Loan
pursuant to this subsection 9.7(a) may exercise all rights of payment
(including, without limitation, rights of set-off) with respect to such portion
as fully as if such Lender were the direct holder of such portion.

 

(b)           In
addition to any rights and remedies of the Lenders provided by law, upon the
occurrence and during the continuance of an Event of Default each Lender shall
have the right, without prior notice to the Borrowers, any such notice being
expressly waived by each Borrower to the extent permitted by applicable law, to
set off and appropriate and apply against the obligations under this Agreement
any and all deposits (general or special, time or demand, provisional or
final), in any currency, and any other credits, indebtedness or claims, in any
currency, in each case whether direct or indirect, absolute or contingent,
matured or unmatured, at any time held or owing by such Lender to or for the
credit or the account of either Borrower. 
Each Lender agrees promptly to notify the Borrowers and the
Administrative Agent after any such set-off and application made by such
Lender, provided, that the failure to
give such notice shall not affect the validity of such set-off and application.

 

43

 

9.8          Counterparts. 
This Agreement may be executed by one or more of the parties to this
Agreement on any number of separate counterparts and all of said counterparts
taken together shall be deemed to constitute one and the same instrument.  A set of the copies of this Agreement signed
by all the parties hereto shall be lodged with each Borrower and the
Administrative Agent.  Delivery of an
executed counterpart of a signature page of this Agreement by telecopy shall be
as effective as delivery of a manually executed counterpart of this Agreement.

 

9.9          GOVERNING LAW. 
(a)
THIS AGREEMENT AND ANY NOTES AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
UNDER THIS AGREEMENT AND ANY NOTES SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

(b)           Notwithstanding
anything in subsection 9.9(a) to the contrary, nothing in this Agreement or in
any Note shall be deemed to constitute a waiver of any rights which any Lender
may have under applicable federal law relating to the amount of interest which
any Lender may contract for, take, receive or charge in respect of any Loans,
including any right to take, receive, reserve and charge interest at the rate
allowed by the laws of the state where such Lender is located.  To the extent that Texas law is applicable
to the determination of the Highest Lawful Rate, the Lenders and each Borrower
agree that (i) if Chapter 303 of the Texas Finance Code, as amended, is
applicable to such determination, the weekly rate ceiling (formerly known as
the indicated (weekly) rate ceiling in Article 1.4, Subtitle 1, Title 79, of
the Revised Civil Statutes of Texas, as amended) as computed from time to time
shall apply; provided, that, to the extent permitted by such Article, the
Administrative Agent may from time to time by notice to the Borrowers revise
the election of such interest rate ceiling as such ceiling affects the then
current or future balances of the Loans; and (ii) the provisions of Chapter 346
of the Texas Finance Code, as amended (formerly found in Chapter 15 of Subtitle
3, Title 79, of the Revised Civil Statutes of Texas, 1925, as amended) shall
not apply to this Agreement or any Note issued hereunder.

 

9.10        Jurisdiction;
Venue.  Any legal action or proceeding with respect
to this Agreement may be brought in the courts of the State of New York or of
the United States of America for the Southern District of New York and, by
execution and delivery of this Agreement, each Borrower hereby accepts for and
in respect of its property, generally, irrevocably and unconditionally, the
non-exclusive jurisdiction of the aforesaid courts.  Each Borrower further irrevocably consents to the service of
process out of any of the aforementioned courts in any such action or
proceeding by the mailing of copies thereof by registered or certified mail
postage prepaid, to it at its address referred to in subsection 9.2.  Nothing herein shall affect the right of the
Administrative Agent or any Lender to serve process in any other manner
permitted by law or to commence legal proceedings or otherwise proceed against
either Borrower in any other jurisdiction. 
Each Borrower hereby irrevocably and unconditionally waives any
objection that it may now or hereafter have to the venue of any action
described in this subsection 9.10, or that such proceeding was brought in an
inconvenient court, and agrees not to plead or claim the same.

 

44

 

9.11        Survival and Termination of Agreement.  All covenants, agreements, representations
and warranties made herein and in any certificate, document or statement
delivered pursuant hereto or in connection herewith shall survive the execution
and delivery of this Agreement and any Notes, regardless of any investigation
made by any such other party or on its behalf and notwithstanding that the
Agents or any Lender may have had notice or knowledge of any Default or
incorrect representation or warranty at the time any credit is extended
hereunder, and shall continue in full force and effect so long as any Loan or
any amount payable to any Lender under or in connection with this Agreement or
any Loan is unpaid and so long as the Commitments have not expired or
terminated.  It being expressly
understood that the obligations of the Borrowers to the Administrative Agent
and each Lender under subsections 2.14, 2.16, 2.17 and 9.5 and the obligations
of the Lenders to the Administrative Agent under subsection 8.7 shall survive
the payment in full of the Loans and all other amounts payable hereunder;
provided, that with respect to amounts payable under subsections 2.14, 2.16,
2.17, 8.7 and 9.5, such amounts shall be deemed to have been paid if no claim
therefor is made within one year after payment in full of the Loans and all
other amounts payable hereunder.  Notwithstanding
the foregoing, no Lender shall be entitled to any payments from either Borrower
under subsection 2.14, 2.16, 2.17 or 9.5 unless, within one year of such
Lender’s obtaining actual knowledge of the occurrence of the event or events
giving rise to the operation of any such subsection, it has notified the
Borrowers of the occurrence of such event or events; provided, however, that
the requirement for notice set forth herein shall have no effect on the nature
or scope of the provisions of such subsections other than as expressly stated in
this subsection 9.11.

 

9.12        Entire Agreement. 
This Agreement sets forth the entire agreement of the parties hereto
with respect to its subject matter, and supersedes all previous understandings,
written or oral, with respect thereto.

 

9.13        WAIVER OF JURY
TRIAL.  EACH BORROWER, THE ADMINISTRATIVE AGENT AND
EACH LENDER HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY
LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY NOTE AND FOR ANY
COUNTERCLAIM THEREIN.

 

9.14        Severability. 
Any provision of this Agreement or of any Note which is prohibited,
unenforceable or not authorized in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition,
unenforceability or non-authorization without invalidating the remaining
provisions hereof or thereof or affecting the validity, enforceability or
legality of any such provision in any other jurisdiction.

 

9.15        Joint and Several
Liability.  (a) Any and all obligations and liabilities
of either Borrower under this Agreement shall be the joint and several
obligation and the joint and several liability of the Borrowers.  Except as expressly set forth in Section 7,
each Borrower waives presentation to, demand of payment from and protest to the
Lenders of any of the obligations and liabilities of the other Borrower
hereunder and also waives notice of protest for nonpayment and notice of
acceleration and notice of intent to accelerate, and all other notices of any
kind.  Except as expressly set forth in
Section 7, each Borrower waives notice of any default by the other Borrower
hereunder.  The obligations and
liabilities of each Borrower hereunder shall not be

 

45

 

affected by (i)
the failure of any Lender to assert any claim or demand or to enforce any right
or remedy against the other Borrower or any other person under this Agreement
or any Notes; (ii) any extension or renewal of any thereof; (iii) any
rescission, waiver, amendment or modification of any of the terms or provisions
of this Agreement or any Notes; (iv) the release of any obligation or liability
of the other Borrower by any Lender; (v) the failure of any Lender to exercise
any right or remedy against any Borrower; (vi) any change in the ownership of
either of the Borrowers; or (vii) any winding up, reorganization, arrangement,
liquidation, reconstruction or similar proceeding with respect to either of the
Borrowers or any Lender.

 

(b)           If
and to the extent that either of the Borrowers shall fail to make any payment
with respect to any of the obligations hereunder as and when due or to perform
any of such obligations in accordance with the terms thereof, then in each such
event, the other Borrower will make such payment with respect to, or perform,
such obligation.

 

(c)           The
obligations of each Borrower under the provisions of this subsection 9.15
constitute full recourse obligations of such Borrower, enforceable in
accordance with the terms of this Agreement.

 

(d)           The
provisions of this subsection 9.15 are made for the benefit of the Lenders and
their successors and assigns, and may be enforced by the Administrative Agent
and the Lenders from time to time against either of the Borrowers as often as
occasion therefor may arise and without requirement on the part of the Lenders
first to marshal any of their claims or to exercise any of their rights against
the other Borrower or to exhaust any remedies available to them against the
other Borrower or to resort to any other source or means of obtaining payment
of all or any part of the obligations hereunder or to elect any other remedy.
The provisions of this subsection 9.15 shall remain in effect until all of the
obligations hereunder shall have been paid in full or otherwise fully satisfied
and all of the Commitments shall have terminated or expired.  If at any time, any payment, or any part
thereof, made in respect of all or any part of the obligations hereunder, is
rescinded or must otherwise be restored or returned by any of the Lenders upon
the insolvency, bankruptcy or reorganization of a Borrower, or otherwise, the
provisions of this subsection 9.15 will forthwith be reinstated in effect, as
though such payment had not been made.

 

46

 

Signature Page to the

Credit Agreement

 

 

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

 

 

	
   

  	
  CHEVRON PHILLIPS
  CHEMICAL COMPANY LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  J.M. McKee

  
	
   

  	
   

  	
  Vice President and
  Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CHEVRON PHILLIPS
  CHEMICAL COMPANY LP

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  J.M. McKee

  
	
   

  	
   

  	
  Vice President and
  Treasurer

  

 

S - 1

 

	
   

  	
  BARCLAYS BANK PLC, as
  Administrative Agent, 

  Same Day Lender and a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

S - 2

 

	
   

  	
  THE ROYAL BANK OF
  SCOTLAND plc, as

  Syndication Agent and a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

S - 3

 

	
   

  	
  THE BANK OF NOVA
  SCOTIA, as Co-

  Documentation Agent and a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

S - 4

 

	
   

  	
  THE BANK OF
  TOKYO-MITSUBISHI, LTD., as Co-

  Documentation Agent and a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

S - 5

 

	
   

  	
  SUMITOMO MITSUI BANKING
  CORPORATION,

  as Co-Documentation Agent and a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

S - 6

 

	
   

  	
  ING CAPITAL LLC, as a
  Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

S - 7

 

	
   

  	
  BNP PARIBAS, as a
  Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

S - 8

 

	
   

  	
  MORGAN STANLEY BANK, as
  a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

S - 9

 

	
   

  	
  UFJ BANK LIMITED, as a
  Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

S - 10

 

	
   

  	
  RIYAD BANK, HOUSTON
  AGENCY, as a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

S - 11

 

	
   

  	
  STANDARD CHARTERED
  BANK, as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

S - 12

 

	
   

  	
  BANCA MONTE DEI PASCHI DI SIENA S.p.A., as a

  Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

S - 13

 

	
   

  	
  BANCA NAZIONALE DEL
  LAVORO, as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

S - 14

 

	
   

  	
  BAYERISCHE LANDESBANK,
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

S - 15

 

	
   

  	
  DnB NOR BANK ASA, as a
  Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

S - 16

 

	
   

  	
  EXPORT DEVELOPMENT
  CANADA, as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

S - 17

 

	
   

  	
  KBC BANK N.V., as a
  Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

S - 18

 

	
   

  	
  NORDDEUTSCHE LANDESBANK

  GIROZENTRALE, as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

S - 19

 

	
   

  	
  QATAR NATIONAL BANK
  SAQ, as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

S - 20

 

	
   

  	
  THE BANK OF NEW YORK,
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

S - 21

 

	
   

  	
  BANCA DI ROMA – CHICAGO
  BRANCH, as a

  Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

S - 22

Schedule I

 

LENDER INFORMATION

 

	
  Lender

  	
   

  	
  Lender’s
  Maximum

  Commitment

  	
   

  	
  Lender’s Lending Office

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Administrative
  Agent

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Barclays Bank PLC

  	
   

  	
  $

  	
  65,000,000.00

  	
   

  	
  Address for Notices:

  Barclays Capital

  200 Park Avenue, 4th Floor

  New York, NY 10166

  Attention: Nicholas A. Bell

  Telecopier: (212) 412-7600

  Telephone: (212) 412-4029
Email: nicholas.bell@barcap.com

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Lending Office:

  Barclays Bank PLC, New York Branch

  Global Services Unit

  222 Broadway

  New York, NY 10038

  Attention: May Wong

  Telecopier: (212) 412-5306

  Telephone: (212) 412-2716

  Email: may.wong@barcap.com

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Syndication
  Agent

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  The Royal Bank of Scotland plc

  	
   

  	
  $

  	
  65,000,000.00

  	
   

  	
  Address for Notices:

  The Royal Bank of Scotland plc

  600 Travis Street, Suite 6070

  Houston, TX 77002

  Attention: Brian Smith

  Telecopier: (713) 221-2430

  Telephone: (713) 221-2417

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Lending Office:

  The Royal Bank of Scotland plc

  101 Park Avenue, 12th Floor

  New York, NY 10178

  Attention: Sheila Shaw

  Telecopier: (212) 401-1494

  Telephone: (212) 401-1406

  

 

I - 1

 

	
  Co-Documentation
  Agent

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  The Bank of Nova Scotia

  	
   

  	
  $

  	
  60,000,000.00

  	
   

  	
  Address for Notices:

  The Bank of Nova Scotia

  600 Peachtree Street N.E., Suite 2700

  Atlanta, GA 30308

  Attention: A. Millington

  Telecopier: (404) 888-8998

  Telephone: (404) 877-1579

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Lending Office:

  The Bank of Nova Scotia

  600 Peachtree Street N.E., Suite 2700

  Atlanta, GA 30308

  Attention: A. Millington

  Telecopier: (404) 888-8998

  Telephone: (404) 877-1579

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Co-Documentation
  Agent

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  The Bank of Tokyo-Mitsubishi, Ltd.

  	
   

  	
  $

  	
  60,000,000.00

  	
   

  	
  Address for Notices:

  The Bank of Tokyo-Mitsubishi, Ltd.

  1100 Louisiana Street

  Suite 2800

  Houston, TX 77002

  Attention: Joan Stanton

  Telecopier: (713) 658-0116

  Telephone: (713) 655-3824

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Lending Office:

  The Bank of Tokyo-Mitsubishi, Ltd.

  1100 Louisiana Street

  Suite 2800

  Houston, TX 77002

  Attention: Barrie Hogue

  Telecopier: (713) 658-0116

  Telephone: (713) 655-3835

  

 

I - 2

 

	
  Co-Documentation
  Agent

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sumitomo Mitsui Banking
  Corporation

  	
   

  	
  $

  	
  60,000,000.00

  	
   

  	
  Address for Notices:

  Sumitomo Mitsui Banking Corporation

  277 Park Avenue

  New York, NY 10172

  Attention: Robert Dupree

  Telecopier: (212) 224-4384

  Telephone: (212) 224-4159

  e-mail: robert_dupree@smbcgroup.com

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Lending Office:

  Sumitomo Mitsui Banking Corporation

  277 Park Avenue

  New York, NY 10172

  Attention: Robert Dupree

  Telecopier: (212) 224-4384

  Telephone: (212) 224-4159

  e-mail: robert_dupree@smbcgroup.com

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Other
  Lenders

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ING Capital LLC

  	
   

  	
  $

  	
  55,000,000.00

  	
   

  	
  Address for Notices:

  ING Capital LLC

  1325 Avenue of the Americas

  New York, NY 10019

  Attention: Cheryl Labelle

  Telecopier: (646) 424-7229

  Telephone: (646) 424-7207

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Lending Office:

  ING Capital LLC

  1325 Avenue of the Americas

  New York, NY 10019

  Attention: Cheryl Labelle

  Telecopier: (646) 424-7229

  Telephone: (646) 424-7207

  

 

I - 3

 

	
  BNP Paribas

  	
   

  	
  $

  	
  40,000,000.00

  	
   

  	
  Address for Notices:

  BNP Paribas

  919 Third Avenue

  New York, NY 10022

  Attention: Cory Lantin

  Telecopier: (212) 841-2683

  Telephone: (212) 471-6626

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Lending Office:

  BNP Paribas

  1200 Smith Street, Suite 3100

  Houston, TX 77002

  Attention: Joe Onischuk, Director

  Telecopier: (713) 659-6915

  Telephone: (713) 982-1100

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Morgan Stanley Bank

  	
   

  	
  $

  	
  40,000,000.00

  	
   

  	
  Address for Notices:

  Morgan Stanley Bank

  1633 Broadway – 25th Floor

  New York, NY 10019

  Attention: James Morgan

  Telecopier: (212) 537-1867

  Telephone: (212) 537-1470

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Lending Office:

  Morgan Stanley Bank

  1633 Broadway – 25th Floor

  New York, NY 10019

  Attention: James Morgan

  Telecopier: (212) 537-1867

  Telephone: (212) 537-1470

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  UFJ Bank Limited

  	
   

  	
  $

  	
  40,000,000.00

  	
   

  	
  Address for Notices:

  UFJ Bank Limited

  55 East 52nd Street

  New York, NY 10055

  Attention: John Feeney

  Telecopier: (212) 754-1304

  Telephone: (212) 339-8366

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Lending Office:

  UFJ Bank Limited

  55 East 52nd Street

  New York, NY 10055

  Attention: Marlin Chin

  Telecopier: (212) 754-2368

  Telephone: (212) 339-6392

  

 

I - 4

 

	
  Riyad Bank, Houston Agency

  	
   

  	
  $

  	
  35,000,000.00

  	
   

  	
  Address for Notices:

  Riyad Bank

  700 Louisiana, Suite 4770

  Houston, TX 77002

  Attention: Paul N. Travis

  Telecopier: (713) 331-2043

  Telephone: (713) 331-2021

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Lending Office:

  Riyad Bank

  700 Louisiana, Suite 4770

  Houston, TX 77002

  Attention: Pierre J. Herszdorfer

  Telecopier: (713) 331-2043

  Telephone: (713) 331-2022

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Standard Chartered Bank

  	
   

  	
  $

  	
  35,000,000.00

  	
   

  	
  Address for Notices:

  Standard Chartered Bank

  790 East Colorado Blvd.

  Suite 808

  Pasadena, CA 91101

  Attention: John Robinson

  Telecopier: (626) 839-8010

  Telephone: (626) 839-8009

  Email: john.robinson@us.standardchartered.com

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Lending Office:

  Standard Chartered Bank

  One Madison Avenue

  Third Floor

  New York, NY 10010-3603

  Attention: Victoria Falone

  Telecopier: (212) 667-0287

  Telephone: (212) 667-0203

  Email: victoria.faltine@us.standardchartered.com

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Banca Monte dei Paschi di Siena
  S.p.A.

  	
   

  	
  $

  	
  25,000,000.00

  	
   

  	
  Address for Notices:

  Banca Monte dei Paschi di Siena S.p.A.

  55 East 59th Street

  New York, New York 10022

  Attention: Nicolas Kanaris

  Telecopier: (212) 891-3661

  Telephone: (212) 891-3655

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Lending Office:

  Banca Monte dei Paschi di Siena S.p.A.

  55 East 59th Street

  New York, New York 10022

  Attention: Mei Tam

  Telecopier: (212) 891-3661

  Telephone: (212) 891-3649

  

 

I - 5

 

	
  Banca Nazionale del Lavoro

  	
   

  	
  $

  	
  25,000,000.00

  	
   

  	
  Address for Notices:

  Banca Nazionale del Lavoro

  25 West 51st Street

  New York, NY 10019

  Attention: Juan Cortes

  Telecopier: (212) 765-2978

  Telephone: (212) 314-0295

  Email: juan.cortes@bnlmail.com

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Lending Office:

  Banca Nazionale del Lavoro

  25 West 51st Street

  New York, NY 10019

  Attention: Anna Hernandez

  Telecopier: (212) 765-2978

  Telephone: (212) 314-0679

  Email: Anna.Hernandez@bnmail.com

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bayerische Landesbank

  	
   

  	
  $

  	
  25,000,000.00

  	
   

  	
  Address for Notices:

  Bayerische Landesbank

  Cayman Island Branch

  560 Lexington Avenue

  New York, NY 10022

  Attention: Steven Christenson

  Telecopier: (212) 310-9868

  Telephone: (212) 230-9105

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Lending Office:

  Bayerische Landesbank

  Cayman Island Branch

  560 Lexington Avenue

  New York, NY 10022

  Attention: Anthony Seay

  Telecopier: (212) 230-9151

  Telephone: (212) 230-9151

  

 

I - 6

 

	
  DnB NOR Bank ASA

  	
   

  	
  $

  	
  25,000,000.00

  	
   

  	
  Address for Notices:

  DnB NOR Bank ASA

  200 Park Avenue

  31st Floor

  New York, NY 10166

  Attention: Peter Dodge

  Telecopier: (212) 681-3900

  Telephone: (212) 681-3873

  Email: peter.dodge @dnbnor.no

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Lending Office:

  DnB NOR Bank ASA

  200 Park Avenue

  31st Floor

  New York, NY 10166

  Attention: Teresa Rosu

  Telecopier: (212) 681-4123

  Telephone: (212) 681-3845

  Email: teresa.rosu@dnbnor.no

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Export Development Canada

  	
   

  	
  $

  	
  25,000,000.00

  	
   

  	
  Address for Notices:

  Export Development Canada

  151 O’Connor Street

  Ottawa, Ontario Canada K1 1K3

  Attention: Daniel O’Blenis

  Telecopier: (613) 598-3186

  Telephone: (613) 598-6814

  Email: doblenis@edc.ca

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Lending Office:

  Export Development Canada

  151 O’Connor Street

  Ottawa, Ontario Canada K1 1K3

  Attention: Mark Henry

  Telecopier: (613) 598-2514

  Telephone: (613) 597-8517

  Email: mhenry@edc.ca

  

 

I - 7

 

	
  KBC Bank N.V.

  	
   

  	
  $

  	
  25,000,000.00

  	
   

  	
  Address for Notices:

  KBC Bank N.V.

  Atlanta Representative Office

  245 Peach Tree Center Avenue; Suite 2550

  Atlanta, GA 30303

  Attention: Filip Berton, AVP

  Telecopier: (404) 584-5465

  Telephone: (404) 584-5466

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Lending Office:

  KBC Bank N.V.

  New York Branch

  125 West 55th Street

  New York, NY 10019

  Attention: Robert Pacifici

  Loan Administration

  Telecopier: (212) 956-5581

  Telephone: (212) 541-0671

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Norddeutsche Landesbank Girozentrale

  	
   

  	
  $

  	
  25,000,000.00

  	
   

  	
  Address for Notices:

  Norddeutsche Landesbank Girozentrale

  1114 Avenue of the Americas

  37th Floor

  New York, NY 10036

  Attention: Patrick Wacker

  Telecopier: (212) 812-6860

  Telephone: (212) 812-6844

  Email: Patrick.wacker@nordlb.com

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Lending Office:

  Norddeutsche Landesbank Girozentrale

  1114 Avenue of the Americas

  37th Floor

  New York, NY 10036

  Attention: Andrea Johann

  Telecopier: (212) 812-6930

  Telephone: (212) 812-6830

  Email: andrea.johann@nordlb.com

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Qatar National Bank SAQ

  	
   

  	
  $

  	
  25,000,000.00

  	
   

  	
  Address for Notices:

  Qatar National Bank SAQ

  51 Grovenor Street

  London W1K 5HH

  Attention: Mohamad Danhet

  Telecopier: 44-20-7647-2648

  Telephone: 44-20-7647-2641

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Lending Office:

  Qatar National Bank SAQ

  51 Grovenor Street

  London W1K 5HH

  Attention: Richard V. Gossat

  Telecopier: 44-20-7647-2640

  Telephone: 44-20-7647-2641

  

 

I - 8

 

	
  The Bank of New York

  	
   

  	
  $

  	
  25,000,000.00

  	
   

  	
  Address for Notices:

  The Bank of New York

  One Wall Street, 17th Floor

  New York, New York 10286

  Attention: Raymond Palmer

  Telecopier: (212) 635-7923

  Telephone: (212) 635-7834

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Lending Office:

  The Bank of New York

  One Wall Street, 17th Floor

  New York, New York 10286

  Attention: Raymond Palmer

  Telecopier: (212) 635-7923

  Telephone: (212) 635-7834

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Banca di Roma – Chicago Branch

  	
   

  	
  $

  	
  20,000,000.00

  	
   

  	
  Address for Notices:

  Banca di Roma – Chicago Branch

  225 West Washington, Suite 1200

  Chicago, IL 60606

  Attention: Ms. Joyce Montgomery

  Telecopier: (312) 726-3058

  Telephone: (312) 704-2648

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Lending Office:

  Banca di Roma – New York Branch

  34 East 51st Street

  New York, NY 10022

  Attention: Mr. Lino Caldera

  Telecopier: (212) 407-1613

  Telephone: (212) 407-1684

  

 

I - 9

 

Annex A

 

PRICING GRID

 

	
   

  	
   

  	
  Level 1

  	
   

  	
  Level 2

  	
   

  	
  Level 3

  	
   

  	
  Level 4

  	
   

  	
  Level 5

  	
   

  	
  Level 5

  	
   

  
	
  Senior
  Debt Ratings

  	
   

  	
  3 A/A2

  	
   

  	
  A-/A3

  	
   

  	
  BBB+/Baa1

  	
   

  	
  BBB/Baa2

  	
   

  	
  BBB-/Baa3

  	
   

  	
  <
  BBB-/Baa3

  	
   

  
	
   

  	
   

  	
  (bps)

  	
   

  	
  (bps)

  	
   

  	
  (bps)

  	
   

  	
  (bps)

  	
   

  	
  (bps)

  	
   

  	
  (bps)

  	
   

  
	
  Applicable Eurodollar Margin(1)

  	
   

  	
  35.0

  	
   

  	
  50.0

  	
   

  	
  62.5

  	
   

  	
  75.0

  	
   

  	
  87.5

  	
   

  	
  112.5

  	
   

  
	
  Applicable Utilization Fee Rate – Above 50% Usage(1)

  	
   

  	
  10.0

  	
   

  	
  10.0

  	
   

  	
  12.5

  	
   

  	
  12.5

  	
   

  	
  12.5

  	
   

  	
  25.0

  	
   

  
	
  Applicable Commitment Fee Rate(1)

  	
   

  	
  10.0

  	
   

  	
  11.0

  	
   

  	
  12.5

  	
   

  	
  15.0

  	
   

  	
  20.0

  	
   

  	
  25.0

  	
   

  

 

The foregoing
Pricing Grid is based upon the Senior Debt ratings as determined from time to
time by S&P and Moody’s.

 

(1)  The Commitment Fee, Utilization Fee and
Applicable Eurodollar Margins shall be determined by the highest of the two
ratings assigned by S&P and Moody’s to the Senior Debt.  If the two ratings for the Senior Debt are
two or more rating levels apart, the Commitment Fee, Utilization Fee and
Applicable Eurodollar Margin shall be determined by reference to the rating
level that is one rating level below the highest rating level in which the
Senior Debt’s ratings fall.

 

A -- 1

 

Exhibit A to the

Credit Agreement

 

FORM
OF NOTE

 

New York, New
York

July 30, 2004

 

FOR VALUE RECEIVED,
CHEVRON PHILLIPS CHEMICAL COMPANY LLC, a Delaware limited liability company
(the “LLC”), CHEVRON PHILLIPS CHEMICAL
COMPANY LP, a Delaware limited partnership which is wholly-owned, indirectly,
by the LLC (the “LP”; and together with
the LLC, the “Borrowers” and, each, a “Borrower”), jointly and severally promise to
pay to the order of [Insert Name of Lender] (the “Lender”)
[Insert Lender Address], Attention: [Insert Lender Contact Name], (i) on the
Termination Date (as defined in the Credit Agreement referred to below) or (ii)
if in accordance with subsection 2.2(a) the Borrowers have extended the date
upon which the principal amount of the Loans of the Lenders outstanding as of
the Termination Date will be due and payable, on the first anniversary of the
Termination Date; in each case in lawful money of the United States of America
and in immediately available funds, the principal amount equal to the aggregate
unpaid principal amount of all Loans made by the Lender to the Borrowers
pursuant to subsections 2.1, 2.2, 2.3 and 2.4 of the Agreement.  The Borrowers, jointly and severally, hereby
further agree to pay interest on the unpaid principal amount of the Loans from
time to time outstanding from the date hereof until payment in full thereof at
the rates per annum, and on the dates, set forth in subsection 2.10 of the
Credit Agreement.  The holder of this
Note is authorized to record the date and amount of each Loan made by the
Lender, each payment of principal with respect thereto and each conversion or
continuation made pursuant to subsection 2.7 of the Credit Agreement, on the
schedules annexed hereto and made a part hereof, or on a continuation thereof
which shall be attached hereto and made a part hereof, and any such recordation
shall constitute prima
facie evidence, absent manifest error, of the accuracy of the
information recorded; provided, that failure by the Lender to make any such
recordation or any error in such recordation shall not affect the obligations
of the Borrowers hereunder or under the Credit Agreement.

 

This Note is one of the
Notes referred to in the Credit Agreement, dated as of the date hereof, among
LLC and LP, each as a Borrower, the Lenders parties thereto, Barclays Bank PLC,
as the Administrative Agent, and the other agents therein named (as amended,
supplemented or otherwise modified from time to time, the “Credit Agreement”; terms defined therein and
not otherwise defined herein being used herein as therein defined), is entitled
to the benefits thereof and is subject to optional and mandatory prepayment in
whole or in part as provided therein. 
The Borrowers agree to pay all costs and expenses incurred by the Lender
in connection with the enforcement of its rights and remedies under the Credit
Agreement and this Note.

 

Upon the occurrence of
any one or more of the Events of Default specified in the Credit Agreement, all
amounts then remaining unpaid on this Note shall become, or may be declared to
be, immediately due and payable all as provided therein.

 

A - 1

 

THIS NOTE SHALL BE GOVERNED BY, AND
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK.

 

 

	
   

  	
  CHEVRON PHILLIPS
  CHEMICAL COMPANY LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CHEVRON PHILLIPS
  CHEMICAL COMPANY LP

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

A - 2

 

Schedule A

to Note

 

LOANS,
CONVERSIONS AND REPAYMENTS OF ABR LOANS

 

	
  Date

  	
   

  	
  Amount of
  ABR

  Loans

  	
   

  	
  Amount

  Converted to

  ABR Loans

  	
   

  	
  Amount of

  Principal of

  ABR Loans

  Repaid

  	
   

  	
  Amount of
  ABR

  Loans Converted

  to Eurodollar

  Loans

  	
   

  	
  Unpaid
  Principal

  Balance of ABR

  Loans

  	
   

  	
  Notation
  Made

  By

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

A - 3

 

Schedule B

to Note

 

LOANS,
CONTINUATIONS, CONVERSIONS AND REPAYMENTS OF EURODOLLAR LOANS

 

	
  Date

  	
   

  	
  Amount of

  Eurodollar

  Loans

  	
   

  	
  Amount

  Converted to

  Eurodollar

  Loans

  	
   

  	
  Interest
  Period

  and

  Eurodollar

  Rate with

  Respect

  Thereto

  	
   

  	
  Amount of

  Principal of

  Eurodollar

  Loans Repaid

  	
   

  	
  Amount of

  Eurodollar

  Loans

  Converted to

  ABR Loans

  	
   

  	
  Unpaid

  Principal

  Balance of

  Eurodollar

  Loans

  	
   

  	
  Notation
  Made

  By

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

Exhibit B to the

Credit Agreement

 

FORM OF ASSIGNMENT AND ACCEPTANCE

 

Reference is made to the
Credit Agreement dated as of July 30, 2004 (as amended, supplemented or
otherwise modified from time to time, the “Credit
Agreement”), among CHEVRON PHILLIPS CHEMICAL COMPANY LLC, a Delaware
limited liability company (the “LLC”),
CHEVRON PHILLIPS CHEMICAL COMPANY LP, a Delaware limited partnership which is
wholly-owned, indirectly, by the LLC (the “LP”;
and together with the LLC, the “Borrowers”
and, each, a “Borrower”), the Lenders
parties thereto, Barclays Bank PLC, as the Administrative Agent, and the other
agents therein named. Unless otherwise defined herein, terms defined in the
Credit Agreement and used herein shall have the meanings given to them in the
Credit Agreement.

 

                         
(the “Assignor”) and
                         
(the “Assignee”) agree as follows:

 

1.             The
Assignor hereby irrevocably sells and assigns to the Assignee without recourse
to the Assignor, and the Assignee hereby irrevocably purchases and assumes from
the Assignor without recourse to the Assignor, as of the Transfer Effective
Date (as defined below), a       % interest (the
“Assigned Interest”) in and to the
Assignor’s rights and obligations under the Credit Agreement with respect to the
credit facility contained in the Credit Agreement as are set forth on Schedule
1 (the “Assigned Facility”), in a
principal amount for the Assigned Facility as set forth on Schedule 1.

 

2.             The
Assignor (a) makes no representation or warranty and assumes no responsibility
with respect to any statements, warranties or representations made in or in
connection with the Credit Agreement or any other instrument or document
furnished pursuant thereto or with respect to the execution, legality,
validity, enforceability, genuineness, sufficiency or value of the Credit
Agreement, any Note or any other instrument or document furnished pursuant
thereto, other than that the Assignor is the legal and beneficial owner of the
Assigned Facility and the Assignor has not created any adverse claim upon the
interest being assigned by it hereunder and that such interest is free and
clear of any such adverse claim; (b) makes no representation or warranty and
assumes no responsibility with respect to the financial condition of the
Borrowers or their Subsidiaries or the performance or observance by the
Borrowers of any of their obligations under the Credit Agreement or any Note or
any other instrument or document furnished pursuant hereto or thereto; and (c)
attaches any Notes held by it evidencing the Assigned Facility and (i) requests
that the Administrative Agent, upon request by the Assignee, exchange any
attached Notes for a new Note or Notes payable to the Assignee and (ii) if the
Assignor has retained any interest in the Assigned Facility, requests that the
Administrative Agent exchange any attached Notes for a new Note or Notes
payable to the Assignor, in each case in amounts which reflect the assignment
being made hereby (and after giving effect to any other assignments which have
become effective on the Transfer Effective Date).

 

3.             The
Assignee (a) represents and warrants that it is legally authorized to enter
into this Assignment and Acceptance; (b) confirms that it has received a copy
of the Credit

 

B - 1

 

Agreement, together with copies of the financial
statements delivered pursuant to subsection 3.5 or 5.2, as available, thereof
and such other documents and information as it has deemed appropriate to make
its own credit analysis and decision to enter into this Assignment and
Acceptance; (c) agrees that it will, independently and without reliance upon
the Assignor, the Administrative Agent or any other Lender and based on such
documents and information as it shall deem appropriate at the time, continue to
make its own credit decisions in taking or not taking action under the Credit
Agreement, any Notes or any other instrument or document furnished pursuant
hereto or thereto; (d) appoints and authorizes the Administrative Agent to take
such action as agent on its behalf and to exercise such powers and discretion
under the Credit Agreement, any Notes or any other instrument or document
furnished pursuant hereto or thereto as are delegated to the Administrative
Agent by the terms thereof, together with such powers as are incidental
thereto; and (e) agrees that it will be bound by the provisions of the Credit
Agreement and will perform in accordance with its terms all the obligations
which by the terms of the Credit Agreement are required to be performed by it
as a Lender including, if it is organized under the laws of a jurisdiction
outside the United States, its obligation pursuant to subsection 2.15(b) of the
Credit Agreement.

 

4.             The
effective date of this Assignment and Acceptance shall be
           ,
20     (the “Transfer
Effective Date”).  Following
the execution of this Assignment and Acceptance, it will be delivered to the
Administrative Agent for acceptance by it and recording by the Administrative
Agent pursuant to the Credit Agreement, effective as of the Transfer Effective
Date (which shall not, unless otherwise agreed to by the Administrative Agent,
be earlier than five Business Days after the date of such acceptance and
recording by the Administrative Agent).

 

5.             Upon
such acceptance and recording, from and after the Transfer Effective Date, the
Administrative Agent shall make all payments in respect of the Assigned
Interest (including payments of principal, interest, fees and other amounts) to
the Assignor for amounts which have accrued to the Transfer Effective Date and
to the Assignee for amounts which have accrued subsequent to the Transfer
Effective Date.  The Assignor and the
Assignee shall make all appropriate adjustments in payments by the
Administrative Agent for periods prior to the Transfer Effective Date or with
respect to the making of this assignment directly between themselves.

 

6.             From
and after the Transfer Effective Date, (a) the Assignee shall be a party to the
Credit Agreement and, to the extent provided in this Assignment and Acceptance,
have the rights and obligations of a Lender thereunder and shall be bound by
the provisions thereof and (b) the Assignor shall, to the extent provided in
this Assignment and Acceptance, relinquish its rights and be released from its
obligations under the Credit Agreement, provided,
however, that its rights under
subsections 2.14, 2.16, 2.17 and 9.5 thereunder shall not be affected.

 

7.             This
Assignment and Acceptance shall be governed by and construed in accordance with
the laws of the State of New York.

 

IN WITNESS WHEREOF, the
parties hereto have caused this Assignment and Acceptance to be executed as of
the date first above written by their respective duly authorized officers on
Schedule 1 hereto.

 

B - 2

 

SCHEDULE 1

TO ASSIGNMENT AND ACCEPTANCE 

RELATING TO THE CREDIT AGREEMENT, DATED AS OF JULY 30, 2004,
among

CHEVRON PHILLIPS CHEMICAL COMPANY LLC, as a Borrower, and

CHEVRON PHILLIPS CHEMICAL COMPANY LP, as a Borrower,

the Several Lenders from Time to Time Parties thereto, and

BARCLAYS BANK PLC, as Administrative Agent

 

Name of Assignor:

 

Name of Assignee:

 

Transfer Effective Date:

 

	
  Principal

  Amount Assigned

  	
   

  	
  Commitment

  Percentage Assigned(1)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  $

  	
   

  	
   

  	
            .                      

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  [Name of Assignee]

  	
   

  	
  [Name of Assignor]

  	
   

  

 

 

	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
  Name:

  	
   

  	
  Name:

  
	
  Title:

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
  Accepted:

  	
   

  	
  Consented To(2):

  
	
   

  	
   

  	
   

  
	
  BARCLAYS BANK PLC, as

  Administrative Agent, Same Day Lender and a Lender

  	
   

  	
  CHEVRON PHILLIPS
  CHEMICAL COMPANY LLC,

  as a Borrower

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
  Name:

  	
   

  	
  Name:

  
	
  Title:

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CHEVRON PHILLIPS
  CHEMICAL COMPANY LP, as

  a Borrower

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

(1)     Calculate
the Commitment Percentage that is assigned to at least 15 decimal places and
show as a percentage of the aggregate commitments of all Banks.

 

(2)      Not
required during the occurrence and continuation of an Event of Default under
subsections 7(g) or (h).

 

B - 3

 

Exhibit
C to the

Credit Agreement

 

FORM OF

CLOSING CERTIFICATE

OF

CHEVRON PHILLIPS CHEMICAL COMPANY LLC

AND CHEVRON PHILLIPS CHEMICAL COMPANY LP

 

Reference is made to the
CREDIT AGREEMENT (as amended, supplemented or otherwise modified from time to
time, the “Credit Agreement”), dated as
of July 30, 2004, among Chevron Phillips Chemical Company LLC, a Delaware
limited liability company (the “LLC”), and Chevron Phillips Chemical
Company LP, a Delaware limited partnership wholly owned indirectly by the LLC
(the “LP”), each as a Borrower, the Lenders, Barclays Bank PLC, as the
Administrative Agent, and the other agents therein named. Unless otherwise
indicated, capitalized terms used but not defined herein shall have the
respective meanings set forth in the Credit Agreement.  This certificate is being delivered pursuant
to subsection 4.1(b) of the Credit Agreement.

 

I, J.M. McKee, Vice
President and Treasurer of each of Chevron Phillips Chemical Company LLC and
Chevron Phillips Chemical Company LP, HEREBY CERTIFY that:

 

(a)           Each
of the representations and warranties made by the LLC and the LP in or pursuant
to the Credit Agreement are true and correct in all material respects on and as
of the date hereof;

 

(b)           No
Default or Event of Default has occurred and is continuing on the date hereof
or will occur after giving effect to the extensions of credit requested to be
made on the date hereof; and

 

(c)           Any
governmental and third party approvals necessary and material in connection
with the financing contemplated by the Credit Agreement and the continuing
operations of the LLC and the LP and their Subsidiaries have been obtained and
are in full force and effect.

 

C - 1

 

IN WITNESS
WHEREOF, I have hereunto signed my name this 30th day of July, 2004.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  Name: J.M. McKee

  
	
   

  	
  Title:  Vice President and Treasurer of both
  Chevron

  Phillips Chemical Company LLC and Chevron Phillips

  Chemical Company LP

  

 

C - 2

 

Exhibit D to the

Credit Agreement

 

FORM OF

CERTIFICATE OF SECRETARY

OF

CHEVRON PHILLIPS CHEMICAL COMPANY [LLC][LP]

 

Reference is made to the
CREDIT AGREEMENT (as amended, supplemented or otherwise modified from time to
time, the “Credit Agreement”), dated as of July 30, 2004,
among Chevron Phillips Chemical Company LLC, a Delaware limited liability
company (the “LLC”), and Chevron Phillips Chemical Company LP, a Delaware
limited partnership wholly owned indirectly by the LLC (the “LP”), each as a
Borrower, the Lenders, Barclays Bank PLC, as the Administrative Agent, and the
other agents therein named. Unless otherwise indicated, capitalized terms used
but not defined herein shall have the respective meanings set forth in the
Credit Agreement.  This certificate is
being delivered pursuant to subsection 4.1(c) of the Credit Agreement.

 

I, Lisa Lynch, Assistant
Secretary of Chevron Phillips Chemical Company [LLC][LP], DO HEREBY CERTIFY
that:

 

(a)           annexed
hereto as Exhibit A is a true and correct copy of the Certificate of [Formation
of the LLC][Limited Partnership of the LP] as in effect on [Date] and at all
times thereafter through the date hereof;

 

(b)           annexed
hereto as Exhibit B is a true and correct copy of the [Amended and Restated
Limited Liability Company Agreement of the LLC][Agreement of Limited
Partnership of the LP] as in effect on [Date] and at all times thereafter
through the date hereof;

 

(c)           annexed
hereto as Exhibit C is a true and correct copy of certain resolutions duly
adopted by the [Board of Managers of the LLC][General Partner of the LP] on
[Date(s)], which resolutions are the only resolutions adopted by the [Board of
Directors of the LLC][General Partner of the LP] or any committee thereof
relating to the Credit Agreement and the Notes and borrowings by the [LLC][LP]
thereunder and have not been revoked, amended, supplemented or modified and are
in full force and effect on the date hereof; and

 

(d)           each
of the persons named below is and has been at all times since [Date] a duly
elected and qualified officer of the [LLC][LP] holding the respective office
set forth opposite his or her name and the signature set forth opposite the
name of each such person is his or her genuine signature:

 

D - 1

 

	
  Name

  	
   

  	
  Title

  	
   

  	
  Specimen
  Signature

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [Include all officers
  of the [LLC][LP] who are signing the Credit Agreement, the Notes or any
  closing document.]

  	
   

  	
   

  	
   

  	
   

  

 

[Remainder of page left blank intentionally;
Signature page to follow.]

 

D - 2

 

IN WITNESS WHEREOF, I
have hereunto signed my name this 30th day of July, 2004.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  Name: Lisa Lynch

  
	
   

  	
  Title: Assistant
  Secretary

  

 

D - 3

Exhibit E-1 to the

Credit Agreement

 

FORM OF OPINION OF BORROWERS’
COUNSEL

 

July 30, 2004

 

Barclays Bank PLC, as

Administrative Agent for the

Lenders listed on Schedule I hereto

200 Park Avenue, 4th Floor

New York, NY 10166

Attention: Mr. Nicholas A. Bell

 

and

 

The Agents and Lenders listed

on Schedule I hereto

 

Re:                               $800,000,000
Five-Year Revolving Credit Facility

 

Ladies and Gentlemen:

 

I am Counsel of Chevron
Phillips Chemical Company LLC, a Delaware limited liability company (the “LLC”) owned equally, indirectly, by
ConocoPhillips and ChevronTexaco Corporation, and of Chevron Phillips Chemical
Company LP, a Delaware limited partnership wholly-owned, indirectly, by the LLC
(the “LP”; and, together with the LLC,
the “Borrowers”).  I am rendering this opinion in connection
with the preparation, execution and delivery of the Credit Agreement, dated as
of July 30, 2004 (the “Credit Agreement”),
among the Borrowers, Barclays Bank PLC, as Administrative Agent, the other
agents therein named, and the lenders party thereto (collectively, the “Lenders”).

 

Unless otherwise
indicated, capitalized terms used but not defined herein shall have the
respective meanings set forth in the Credit Agreement. This opinion is
furnished to you pursuant to subsection 4.1(e)
of the Credit Agreement.

 

In connection with this
opinion, I have examined:

 

(A)          the
Credit Agreement, signed by the Borrowers and by the Administrative Agent, the
other agents therein named, and the Lenders; and

 

(B)           the
Notes delivered on the Closing Date pursuant to the Credit Agreement (the
“Notes”).

 

I also have examined the
originals, or duplicates or certified or conformed copies, of such records,
agreements, instruments and other documents and have made such other
investigations as I have deemed relevant and necessary in connection with the
opinions expressed herein.  As to

 

E - 1

 

questions of fact material to this opinion, I have
relied upon certificates of public officials and of officers and representatives
of the Borrowers.  In addition, I have
examined, and have relied as to matters of fact upon, the representations made
in the Credit Agreement.

 

In rendering the opinions
set forth below, I have assumed the genuineness of all signatures (other than
officers of the Borrowers), the legal capacity of natural persons, the
authenticity of all documents submitted to me as originals, the conformity to
original documents of all documents submitted to me as duplicates or certified
or conformed copies, and the authenticity of the originals of such latter
documents.

 

Based upon and subject to
the foregoing, and subject to the qualifications and limitations set forth
herein, I am of the opinion that:

 

1.             The
LLC (a) has been duly organized and is validly existing and in good standing as
a limited liability company under the laws of the State of Delaware, (b) has
the limited liability company power and authority to execute and deliver the
Credit Agreement and each Note and to borrow and perform its obligations thereunder,
and (c) has duly authorized, executed and delivered the Credit Agreement and
the Notes.

 

2.             The
LP (a) has been duly organized and is validly existing and in good standing as
a limited partnership under the laws of the State of Delaware, (b) has the partnership
power and authority to execute and deliver the Credit Agreement and each Note
and to borrow and perform its obligations thereunder, and (c) has duly
authorized, executed and delivered the Credit Agreement and the Notes.

 

3.             The
execution and delivery by the LLC of the Credit Agreement and each Note, its
borrowings in accordance with the terms of the Credit Agreement and performance
of its payment and other obligations thereunder will not result in any
violation of (1) its Certificate of Formation or its Amended and Restated
Limited Liability Company Agreement, or (2) assuming that proceeds of
borrowings will be used in accordance with the terms of the Credit Agreement,
any Federal statute or the Delaware Limited Liability Company Act or any rule or
regulation issued pursuant to any Federal statute or the Delaware Limited
Liability Company Act.

 

4.             The
execution and delivery by the LP of the Credit Agreement and each Note, its
borrowings in accordance with the terms of the Credit Agreement and performance
of its payment and other obligations thereunder will not result in any
violation of (1) its Certificate of Limited Partnership or its Agreement of
Limited Partnership, or (2) assuming that proceeds of borrowings will be used
in accordance with the terms of the Credit Agreement, any Federal statute or
the Delaware Revised Uniform Limited Partnership Act or any rule or regulation
issued pursuant to any Federal statute or the Delaware Revised Uniform Limited
Partnership Act.

 

5.             No
consent, approval, authorization, order, filing, registration or qualification
of or with any Federal governmental agency or body or any Delaware governmental
agency or body acting pursuant to the Delaware Limited Liability Company Act or
the Delaware

 

E - 2

 

Revised Uniform Limited Partnership Act is required
for the execution and delivery by either Borrower of the Credit Agreement and
each Note, the borrowings by either Borrower in accordance with the terms of
the Credit Agreement and each Note or the performance by the Borrowers of their
payment obligations under the Credit Agreement and each Note.

 

6.             Neither
Borrower is an “investment company,” “company” or a company “controlled” by an
“investment company” within the meaning of and subject to regulation under the
Investment Company Act of 1940, as amended.

 

I express no opinion with
respect to: (a) the effect of any provision of the Credit Agreement or the
Notes which is intended to permit modification thereof only by means of an
agreement signed in writing by the parties thereto; (b) the effect of any
provision of the Credit Agreement or the Notes insofar as it provides that any
Person purchasing a participation from a Lender or other Person may exercise
set-off or similar rights with respect to such participation or that any Lender
or other Person may exercise set-off or similar rights other than in accordance
with applicable law; (c) the effect of any provision of the Credit Agreement or
the Notes imposing penalties or forfeitures; (d) the enforceability of any
provision of the Credit Agreement or the Notes to the extent that such
provision constitutes a waiver of illegality as a defense to performance of
contract obligations; and (e) the effect of any provision of the Credit
Agreement or the Notes relating to indemnification or exculpation in connection
with violations of any securities laws or relating to indemnification,
contribution or exculpation in connection with willful, reckless or criminal
acts or gross negligence of the indemnified or exculpated Person or the Person
receiving contribution.

 

In connection with the
provisions of the Credit Agreement whereby the parties submit to the
jurisdiction of the courts of the United States of America located in the State
of New York, I note the limitations of 28 U.S.C. 1331 and 1332 on subject
matter jurisdiction of the Federal courts.

 

The opinions expressed
herein are limited to the Federal law of the United States, the Delaware
Limited Liability Company Law and the Delaware Uniform Limited Partnership Act.

 

This opinion letter is
rendered to you in connection with the above-described transactions.  This opinion letter may not be relied upon
by you for any other purpose, or relied upon by, or furnished to, any other person,
firm or corporation, other than
[                    ],
which can rely on this opinion for the purposes of rendering the opinions set
forth in their Opinion Letter dated July 30, 2004, without my prior
written consent.

 

Very truly yours,

 

 

David Bargainer

 

E - 3

 

Schedule I

to Exhibit E-1

 

SCHEDULE I

THE ADMINISTRATIVE AGENT AND THE LENDERS

 

Barclays Bank
PLC,

as Administrative Agent and a Lender

 

The Royal Bank
of Scotland plc,

as Syndication Agent and a Lender

 

Sumitomo
Mitsui Banking Corporation,

Co-Documentation Agent and a Lender

 

The Bank of
Nova Scotia,

as Co-Documentation Agent and a Lender

 

The Bank of
Tokyo-Mitsubishi,

Co-Documentation Agent and a Lender

 

ING Capital
LLC, a Lender

 

BNP Paribas, a
Lender

 

Morgan Stanley
Bank, a Lender

 

UFJ Bank
Limited, a Lender

 

Riyad Bank,
Houston Agency, a Lender

 

Standard Chartered Bank, a Lender

 

Banca Monte De Paschi di Siena S.p.A., a Lender

 

Banca Nazionale del Lavoro, a Lender

 

Bayerische
Landesbank, a Lender

 

DnB NOR Bank
ASA, a Lender

 

Export
Development Canada, a Lender

 

KBC Bank N.V., Lender

 

Norddeutsche Landesbank Girozentrale, Lender

 

E - 4

 

Qatar National
Bank SAQ, Lender

 

The Bank of
New York, Lender

 

Banca di Roma – Chicago Branch, Lender

 

E - 5

 

Exhibit E-2 to the

Credit Agreement

 

FORM
OF OPINION OF BORROWERS’
COUNSEL

 

July 30, 2004

 

Barclays Bank PLC, as

Administrative Agent for the

Lenders listed on Schedule I hereto

200 Park Avenue, 4th Floor

New York, NY 10166

Attention: Mr. Nicholas A. Bell

 

and

 

The Agents and Lenders listed

on Schedule I hereto

 

Re:                               $800,000,000
Five-Year Revolving Credit Facility

 

Ladies and Gentlemen:

 

We have acted as special
counsel to Chevron Phillips Chemical Company LLC, a Delaware limited liability
company (the “LLC”), and Chevron
Phillips Chemical Company LP, a Delaware limited partnership (the “LP”; and, together with the LLC, the “Borrowers”), in connection with the
preparation, execution and delivery of the Credit Agreement, dated as of July
30, 2004 (the “Credit Agreement”),
among the Borrowers, Barclays Bank PLC, as Administrative Agent, the other
agents therein named, and the lenders party thereto (collectively, the “Lenders”).

 

Unless otherwise
indicated, capitalized terms used but not defined herein shall have the
respective meanings set forth in the Credit Agreement. This opinion is
furnished to you pursuant to subsection 4.1(e)
of the Credit Agreement.

 

In connection with this
opinion, we have examined:

 

(C)           the
Credit Agreement, signed by the Borrowers and by the Administrative Agent, the
other agents therein named, and the Lenders; and

 

(D)          the
Notes delivered on the Closing Date pursuant to the Credit Agreement (the
“Notes”).

 

We also have examined the
originals, or duplicates or certified or conformed copies, of such records,
agreements, instruments and other documents and have made such other
investigations as we have deemed relevant and necessary in connection with the
opinions expressed herein.  As to
questions of fact material to this opinion, we have relied upon

 

E - 6

 

certificates of public officials and of officers and
representatives of the Borrowers.  In
addition, we have examined, and have relied as to matters of fact upon, the
representations made in the Credit Agreement.

 

In rendering the opinions
set forth below, we have assumed the genuineness of all signatures (other than
officers of the Borrowers), the legal capacity of natural persons, the
authenticity of all documents submitted to us as originals, the conformity to
original documents of all documents submitted to us as duplicates or certified
or conformed copies, and the authenticity of the originals of such latter
documents.  In addition, we have relied
on the opinions of David Bargainer, counsel to the LLC and the LP, with respect
to all of the matters set forth in his Opinion Letter dated July 30, 2004.

 

Based upon and subject to
the foregoing, and subject to the qualifications and limitations set forth
herein, we are of the opinion that:

 

1.             The
execution and delivery by the LLC of the Credit Agreement and each Note, its
borrowings in accordance with the terms of the Credit Agreement and performance
of its payment and other obligations thereunder will not result in any
violation of, assuming that proceeds of borrowings will be used in accordance
with the terms of the Credit Agreement, any New York statute or any rule or
regulation issued pursuant to any New York statute.

 

2.             The
execution and delivery by the LP of the Credit Agreement and each Note, its
borrowings in accordance with the terms of the Credit Agreement and performance
of its payment and other obligations thereunder will not result in any
violation of, assuming that proceeds of borrowings will be used in accordance
with the terms of the Credit Agreement, any New York statute or any rule or
regulation issued pursuant to any New York statute.

 

3.             No
consent, approval, authorization, order, filing, registration or qualification
of or with any New York governmental agency or body is required for the
execution and delivery by either Borrower of the Credit Agreement and each
Note, the borrowings by either Borrower in accordance with the terms of the
Credit Agreement and each Note or the performance by the Borrowers of their
payment obligations under the Credit Agreement and each Note.

 

4.             The
Credit Agreement and each Note constitute the valid and legally binding
obligation of each Borrower, enforceable against such Borrower in accordance
with its terms.

 

In issuing our opinion in
paragraph 4, we have assumed that the Credit Agreement is a valid and legally
binding obligation of each of the Lenders parties thereto.

 

Our opinion in paragraph
4 above is subject to (i) the effects of bankruptcy, insolvency, fraudulent
conveyance, reorganization, moratorium and other similar laws of general
application relating to or affecting creditors’ rights generally, (ii) general
equitable principles (whether considered in a proceeding in equity or at law)
and (iii) an implied covenant of good faith and fair dealing.

 

E - 7

 

We express no opinion
with respect to: (a) the effect of any provision of the Credit Agreement which
is intended to permit modification thereof only by means of an agreement signed
in writing by the parties thereto; (b) the effect of any provision of the
Credit Agreement insofar as it provides that any Person purchasing a participation
from a Lender or other Person may exercise set-off or similar rights with
respect to such participation or that any Lender or other Person may exercise
set-off or similar rights other than in accordance with applicable law; (c) the
effect of any provision of the Credit Agreement imposing penalties or
forfeitures; (d) the enforceability of any provision of the Credit Agreement to
the extent that such provision constitutes a waiver of illegality as a defense
to performance of contract obligations; and (e) the effect of any provision of
the Credit Agreement relating to indemnification or exculpation in connection
with violations of any securities laws or relating to indemnification,
contribution or exculpation in connection with willful, reckless or criminal acts
or gross negligence of the indemnified or exculpated Person or the Person
receiving contribution.

 

In connection with the
provisions of the Credit Agreement whereby the parties submit to the
jurisdiction of the courts of the United States of America located in the State
of New York, we note the limitations of 28 U.S.C. 1331 and 1332 on subject
matter jurisdiction of the federal courts.

 

Our opinions expressed
herein are limited to the law of the State of New York.

 

This opinion letter is
rendered to you in connection with the above-described transactions.  This opinion letter may not be relied upon
by you for any other purpose, or relied upon by, or furnished to, any other
Person without our prior written consent.

 

Yours very truly,

 

E - 8

 

Schedule I

to Exhibit E-2

 

SCHEDULE I

THE ADMINISTRATIVE AGENT AND THE LENDERS

 

Barclays Bank
PLC,

as Administrative Agent and a Lender

 

The Royal Bank
of Scotland plc,

as Syndication Agent and a Lender

 

Sumitomo
Mitsui Banking Corporation,

Co-Documentation Agent and a Lender

 

The Bank of
Nova Scotia,

as Co-Documentation Agent and a Lender

 

The Bank of
Tokyo-Mitsubishi

Co-Documentation Agent and a Lender

 

ING Capital
LLC, a Lender

 

BNP Paribas, a
Lender

 

Morgan Stanley
Bank, a Lender

 

UFJ Bank
Limited, a Lender

 

Riyad Bank,
Houston Agency, a Lender

 

Standard Chartered Bank, a Lender

 

Banca Monte De Paschi di Siena S.p.A., a Lender

 

Banca Nazionale del Lavoro, a Lender

 

Bayerische
Landesbank, a Lender

 

DnB NOR Bank
ASA, a Lender

 

Export
Development Canada, a Lender

 

KBC Bank N.V.,
Lender

 

Norddeutsche Landesbank Girozentrale, Lender

 

Qatar National Bank SAQ, Lender

 

The Bank of
New York, Lender

 

Banca di Roma – Chicago Branch, Lender

 

E - 9

 

Exhibit F to the

Credit Agreement

 

FORM OF BORROWING REQUEST

 

Barclays Bank PLC, 

as Administrative Agent

200 Park Avenue, 4th Floor

New York, NY 10166

 

Attention: Ms. May Wong

 

[Date(1)]

 

Dear Sirs and Madams:

 

The undersigned, Chevron
Phillips Chemical Company [LLC][LP] (the “Requesting
Borrower”) refers to the Credit Agreement dated as of July 30, 2004
(as it may be amended, restated, supplemented or otherwise modified from time
to time, the “Credit Agreement”), among
Chevron Phillips Chemical Company LP and Chevron Phillips Chemical Company LLC,
each as a Borrower, the several Lenders from time to time party thereto,
Barclays Bank PLC, as Administrative Agent, and the other agents therein named.
Terms used herein and not otherwise defined herein shall have the meanings
assigned to such terms in the Credit Agreement.

 

The Requesting Borrower
hereby gives you notice pursuant to subsection 2.3 of the Credit Agreement that
it requests a [Eurodollar][ABR] Loan under the Credit Agreement, and in that
connection sets forth below the terms on which such [Eurodollar][ABR] Loan is
requested to be made:

 

(A)          [the
amount to be borrowed(2)],

 

(B)           [the
requested Borrowing Date],

 

(C)           [Interest
rate basis(3)] and

 

(D)          [length
of the Interest Period for each Eurodollar Loan requested herein(4)].

 

(1).          Prior to 12:00 P.M., New
York City time, at least three Business Days prior to the requested Borrowing
Date, in the case of Eurodollar Loans, and prior to 12:00 P.M., New York City
time, on the Borrowing Date, in the case of ABR Loans.

(2).          In an aggregate
principle amount of the lesser of (1) $10,000,000 or a whole multiple of
$1,000,000 in excess thereof, and (2) the Available Commitments.

(3).          Eurodollar Rate, ABR
Rate or a combination thereof. If no election as to the Type of borrowing is
specified, the borrowing shall be an ABR borrowing.

(4).          If no Interest Period is
specified, the Interest Period shall be deemed to be one month.

 

F - 1

 

Upon acceptance of any or
all of the Loans made by the Lenders in response to this request, the
Requesting Borrower shall be deemed to have represented and warranted that the
conditions specified in subsection 4.2 of the Credit Agreement have been satisfied.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  CHEVRON PHILLIPS
  CHEMICAL

  COMPANY [LLC][LP]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
				

 

F - 2

 

Exhibit G to the

Credit Agreement

 

FORM OF EXEMPTION CERTIFICATE

 

Reference is made to the
Credit Agreement, dated as of July 30, 2004 (as amended, supplemented or
otherwise modified from time to time, the “Credit
Agreement”), among Chevron Phillips Chemical Company LP and Chevron
Phillips Chemical Company LLC, each as a Borrower, the several Lenders from
time to time party thereto, Barclays Bank PLC, as Administrative Agent, and the
other agents therein named. Unless otherwise defined herein, terms defined in
the Credit Agreement and used herein shall have the meanings given to them in
the Credit Agreement.  [Name of Non-U.S.
Lender] (the “Non-U.S. Lender”) is
providing this certificate pursuant to subsection 2.16(b) of the Credit
Agreement.  The Non-U.S. Lender hereby
represents and warrants that:

 

1.             The
Non-U.S. Lender is the sole record and beneficial owner of the Loans in respect
of which it is providing this certificate.

 

2.             The
Non-U.S. Lender is not a “bank” for purposes of Section 881(c)(3)(A) of the
Internal Revenue Code of 1986, as amended (the “Code”).  In this regard, the Non-U.S. Lender further
represents and warrants that:

 

(a)           the
Non-U.S. Lender is not subject to regulatory or other legal requirements as a
bank in any jurisdiction; and

 

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

 

3.             The
Non-U.S. Lender is not a 10-percent shareholder of either Borrower within the
meaning of Section 881(c)(3)(B) of the Code.

 

4.             The
Non-U.S. Lender is not a controlled foreign corporation receiving interest from
a related person within the meaning of Section 881(c)(3)(C) of the Code.

 

G - 1

 

IN WITNESS WHEREOF, the
undersigned has duly executed this certificate.

 

	
   

  	
  [NAME OF NON-U.S.
  LENDER]

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
   

  	
   

  
								

 

G - 2

 

Exhibit H to the

Credit Agreement

 

FORM OF SAME DAY BORROWING REQUEST

 

Barclays Bank PLC, 

as Administrative Agent

200 Park Avenue, 4th Floor

New York, NY 10166

 

Attention: Ms. May Wong

 

[Date(1)]

 

Dear Sirs and Madams:

 

The undersigned, Chevron
Phillips Chemical Company [LLC][LP] (the “Requesting
Borrower”) refers to the Credit Agreement dated as of July 30, 2004
(as it may be amended, restated, supplemented or otherwise modified from time
to time, the “Credit Agreement”), among
Chevron Phillips Chemical Company LP and Chevron Phillips Chemical Company LLC,
each as a Borrower, the several Lenders from time to time party thereto,
Barclays Bank PLC, as Administrative Agent, and the other agents therein
named.  Terms used herein and not
otherwise defined herein shall have the meanings assigned to such terms in the
Credit Agreement.  The Requesting
Borrower hereby gives you notice pursuant to subsection 2.4 of the Credit
Agreement that it requests a Same Day Loan under the Credit Agreement, and in
that connection sets forth below the terms on which such Same Day Loan is
requested to be made:

 

(A)          Date
of Same Day Loan (which is a Business Day),

 

(B)           Principal
Amount of Same Day Loan(2), and

 

(C)           Length
of Interest Period for each Same Day Loan requested herein.(3)

 

(1).          Not later than 12:00
P.M., New York City time, on the day of a proposed Same Day Loan.

(2).          In an aggregate
principal amount of the lesser of (1) $1,000,000, and (2) the then Available
Commitments with respect to Same Day Loans.

(3).          Commences on the
Borrowing Date and ends (a) on a Business Day not later than 15 days after such
Borrowing Date, or (b) if an Interest Period is not specified, on the first
Business Day after the Borrowing Date.

 

H - 1

 

Upon acceptance of any or
all of the Loans made by the Same Day Lender in response to this request, the
Requesting Borrower shall be deemed to have represented and warranted that the
conditions specified in subsection 4.2 of the Credit Agreement have been
satisfied.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  CHEVRON PHILLIPS
  CHEMICAL

  COMPANY [LLC][LP]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
					

 

H - 2

 

Exhibit I to the

Credit Agreement

 

FORM OF CONVERSION OR CONTINUATION
REQUEST

 

Barclays Bank PLC, 

as Administrative Agent

200 Park Avenue, 4th Floor

New York, NY 10166

 

Attention: Ms. May Wong

 

[Date]

 

Dear Sirs and Madams:

 

The undersigned, Chevron
Phillips Chemical Company [LLC][LP] (the “Requesting
Borrower”), refers to the Credit Agreement dated as of July 30, 2004
(as it may be amended, restated, supplemented or otherwise modified from time
to time, the “Credit Agreement”), among
Chevron Phillips Chemical Company LP and Chevron Phillips Chemical Company LLC,
each as a Borrower, the several Lenders from time to time party thereto,
Barclays Bank PLC, as Administrative Agent, and the other agents therein named.
Terms used herein and not otherwise defined herein shall have the meanings
assigned to such terms in the Credit Agreement.

 

Pursuant to subsection
2.7 of the Credit Agreement, this Notice of Conversion/Continuation (the “Notice”) represents the Requesting Borrower’s
irrevocable election to [insert one or more of the following]:

 

1              Convert
$                   
in aggregate principal amount of ABR Loans to Eurodollar Loans on 
               ,
20   (1).  The initial
Interest Period for such Eurodollar Loans is requested to be a
             month
period.

 

2              Convert
$                   
in aggregate principal amount of Eurodollar Loans with a current Interest
Period ending
                  ,
20    to ABR Loans on
                 ,
20   (2).

 

3              Continue
as Eurodollar Loans
$                 
in aggregate principal amount of Eurodollar Loans with a current Interest
Period ending                 ,
20   (3).  The succeeding
Interest Period is requested to be a        
month period.

 

(1).          Not later than three
Business Days’ prior irrevocable notice.

(2).          Not later than 12:00
P.M., New York City time, on a Business Day; provided, that any such conversion
of Eurodollar Loans may only be made on the last day of an Interest Period with
respect thereto.

(3).          Only may be continued as
such upon the expiration of the then current Interest Period with respect
thereto.

 

I - 1

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  CHEVRON PHILLIPS
  CHEMICAL

  COMPANY [LLC][LP]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

I - 2

 

TABLE OF CONTENTS

 

	
  SECTION 1.

  	
  DEFINITIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  1.1

  	
  Defined Terms

  	
   

  
	
   

  	
   

  	
   

  
	
  1.2

  	
  Other Definitional
  Provisions

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.

  	
  AMOUNT AND TERMS OF
  COMMITMENTS

  	
   

  
	
   

  	
   

  	
   

  
	
  2.1

  	
  Commitment

  	
   

  
	
   

  	
   

  	
   

  
	
  2.2

  	
  Repayment of
  Loans; Evidence of Debt

  	
   

  
	
   

  	
   

  	
   

  
	
  2.3

  	
  Procedure for
  Revolving Credit Borrowing

  	
   

  
	
   

  	
   

  	
   

  
	
  2.4

  	
  Same Day Loans

  	
   

  
	
   

  	
   

  	
   

  
	
  2.5

  	
  Termination or
  Reduction of Commitments

  	
   

  
	
   

  	
   

  	
   

  
	
  2.6

  	
  Optional and
  Mandatory Prepayments

  	
   

  
	
   

  	
   

  	
   

  
	
  2.7

  	
  Conversion and Continuation
  Options

  	
   

  
	
   

  	
   

  	
   

  
	
  2.8

  	
  Maximum Number of Tranches

  	
   

  
	
   

  	
   

  	
   

  
	
  2.9

  	
  Fees

  	
   

  
	
   

  	
   

  	
   

  
	
  2.10

  	
  Interest Rate

  	
   

  
	
   

  	
   

  	
   

  
	
  2.11

  	
  Computation of
  Interest and Fees

  	
   

  
	
   

  	
   

  	
   

  
	
  2.12

  	
  Inability to
  Determine Interest Rate

  	
   

  
	
   

  	
   

  	
   

  
	
  2.13

  	
  Pro Rata Treatment and
  Payments

  	
   

  
	
   

  	
   

  	
   

  
	
  2.14

  	
  Increased
  Costs

  	
   

  
	
   

  	
   

  	
   

  
	
  2.15

  	
  Illegality

  	
   

  
	
   

  	
   

  	
   

  
	
  2.16

  	
  Taxes

  	
   

  
	
   

  	
   

  	
   

  
	
  2.17

  	
  Break
  Funding Payments

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 3.

  	
  REPRESENTATIONS AND
  WARRANTIES

  	
   

  
	
   

  	
   

  	
   

  
	
  3.1

  	
  Existence
  and Power

  	
   

  
	
   

  	
   

  	
   

  
	
  3.2

  	
  Requisite
  and Governmental Authorization; Contravention

  	
   

  
	
   

  	
   

  	
   

  
	
  3.3

  	
  Enforceability

  	
   

  
	
   

  	
   

  	
   

  
	
  3.4

  	
  Litigation

  	
   

  
	
   

  	
   

  	
   

  
	
  3.5

  	
  Financial
  Statements; No Material Change

  	
   

  
	
   

  	
   

  	
   

  
	
  3.6

  	
  Employee
  Benefit Plans

  	
   

  
	
   

  	
   

  	
   

  
	
  3.7

  	
  Taxes

  	
   

  
	
   

  	
   

  	
   

  
	
  3.8

  	
  Material
  Subsidiaries

  	
   

  
	
   

  	
   

  	
   

  
	
  3.9

  	
  Investment
  Company Act

  	
   

  

 

i

 

	
  3.10

  	
  Regulation U

  	
   

  
	
   

  	
   

  	
   

  
	
  3.11

  	
  Compliance
  with Laws

  	
   

  
	
   

  	
   

  	
   

  
	
  3.12

  	
  Purpose of
  Loans

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 4.

  	
  CONDITIONS PRECEDENT

  	
   

  
	
   

  	
   

  	
   

  
	
  4.1

  	
  Conditions to
  Effectiveness of Agreement

  	
   

  
	
   

  	
   

  	
   

  
	
  4.2

  	
  Conditions
  to Each Loan

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 5.

  	
  AFFIRMATIVE COVENANTS OF
  THE BORROWERS

  	
   

  
	
   

  	
   

  	
   

  
	
  5.1

  	
  Obligations

  	
   

  
	
   

  	
   

  	
   

  
	
  5.2

  	
  Financial Reporting
  Requirements

  	
   

  
	
   

  	
   

  	
   

  
	
  5.3

  	
  Notices

  	
   

  
	
   

  	
   

  	
   

  
	
  5.4

  	
  Maintenance of
  Property; Insurance

  	
   

  
	
   

  	
   

  	
   

  
	
  5.5

  	
  Compliance with Laws

  	
   

  
	
   

  	
   

  	
   

  
	
  5.6

  	
  Books and
  Records

  	
   

  
	
   

  	
   

  	
   

  
	
  5.7

  	
  Further
  Assurances

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 6.

  	
  NEGATIVE COVENANTS OF THE
  BORROWERS

  	
   

  
	
   

  	
   

  	
   

  
	
  6.1

  	
  Negative
  Pledge

  	
   

  
	
   

  	
   

  	
   

  
	
  6.2

  	
  Consolidations, Mergers
  and Sales of Assets

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 7.

  	
  EVENTS OF DEFAULT

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 8.

  	
  THE ADMINISTRATIVE AGENT

  	
   

  
	
   

  	
   

  	
   

  
	
  8.1

  	
  Appointment of
  Administrative Agent; No Other Duties

  	
   

  
	
   

  	
   

  	
   

  
	
  8.2

  	
  Delegation
  of Duties

  	
   

  
	
   

  	
   

  	
   

  
	
  8.3

  	
  Exculpatory
  Provisions

  	
   

  
	
   

  	
   

  	
   

  
	
  8.4

  	
  Reliance by
  Administrative Agent

  	
   

  
	
   

  	
   

  	
   

  
	
  8.5

  	
  Notice of
  Default

  	
   

  
	
   

  	
   

  	
   

  
	
  8.6

  	
  Non-Reliance on
  Administrative Agent and Other Lenders

  	
   

  
	
   

  	
   

  	
   

  
	
  8.7

  	
  Indemnification

  	
   

  
	
   

  	
   

  	
   

  
	
  8.8

  	
  Administrative
  Agent in Its Individual Capacity

  	
   

  
	
   

  	
   

  	
   

  
	
  8.9

  	
  Successor
  or Substitute Administrative Agent

  	
   

  
	
   

  	
   

  	
   

  
	
  8.10

  	
  Syndication
  Agent; Co-Documentation Agents; Co-Lead Arrangers

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 9.

  	
  MISCELLANEOUS

  	
   

  
	
   

  	
   

  	
   

  
	
  9.1

  	
  Amendments
  and Waivers

  	
   

  

 

ii

 

	
  9.2

  	
  Notices

  	
   

  
	
   

  	
   

  	
   

  
	
  9.3

  	
  No Waiver; Cumulative
  Remedies

  	
   

  
	
   

  	
   

  	
   

  
	
  9.4

  	
  Confidentiality

  	
   

  
	
   

  	
   

  	
   

  
	
  9.5

  	
  Payment of
  Expenses; Indemnification

  	
   

  
	
   

  	
   

  	
   

  
	
  9.6

  	
  Successors
  and Assigns; Participations; Purchasing Lenders

  	
   

  
	
   

  	
   

  	
   

  
	
  9.7

  	
  Adjustments;
  Set-off

  	
   

  
	
   

  	
   

  	
   

  
	
  9.8

  	
  Counterparts

  	
   

  
	
   

  	
   

  	
   

  
	
  9.9

  	
  GOVERNING LAW

  	
   

  
	
   

  	
   

  	
   

  
	
  9.10

  	
  Jurisdiction;
  Venue

  	
   

  
	
   

  	
   

  	
   

  
	
  9.11

  	
  Survival and
  Termination of Agreement

  	
   

  
	
   

  	
   

  	
   

  
	
  9.12

  	
  Entire
  Agreement

  	
   

  
	
   

  	
   

  	
   

  
	
  9.13

  	
  WAIVER
  OF JURY TRIAL

  	
   

  
	
   

  	
   

  	
   

  
	
  9.14

  	
  Severability

  	
   

  
	
   

  	
   

  	
   

  
	
  9.15

  	
  Joint and Several
  Liability

  	
   

  

 

	
  SCHEDULE
  I

  	
  Lender Information

  	
   

  
	
   

  	
   

  	
   

  
	
  ANNEX
  A

  	
  Pricing Grid

  	
   

  
	
   

  	
   

  	
   

  
	
  EXHIBIT
  A

  	
  Form of Note

  	
   

  
	
  EXHIBIT
  B

  	
  Form of Assignment
  and Acceptance

  	
   

  
	
  EXHIBIT
  C

  	
  Form of Closing Certificate

  	
   

  
	
  EXHIBIT
  D

  	
  Form of Secretary’s
  Certificate

  	
   

  
	
  EXHIBIT E-1

  	
  Form of Opinion
  of Counsel to the Borrowers

  	
   

  
	
  EXHIBIT E-2

  	
  Form of Opinion of Counsel to the
  Borrowers

  	
   

  
	
  EXHIBIT
  F

  	
  Form of Borrowing Request

  	
   

  
	
  EXHIBIT
  G

  	
  Form of Exemption
  Certificate

  	
   

  
	
  EXHIBIT
  H

  	
  Form of Same Day
  Borrowing Request

  	
   

  
	
  EXHIBIT
  I

  	
  Form of
  Conversion or Continuation Request

  	
   

  

 

iii

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00069-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00069-of-00352.parquet"}]]