Document:

Exhibit 10.39

    Exhibit
      10.39

    
 

    AMENDED
      

    AND
      

    RESTATED

    EMPLOYMENT
      AGREEMENT

    

    

    COMMERCE
      BANCORP, INC.

     

    AND
      

     

    VERNON
      W. HILL, II

     

    

    

    

    

    

    

    

    EFFECTIVE
      DATE JANUARY 1, 2006

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    

    

    AMENDED
      AND RESTATED EMPLOYMENT AGREEMENT 

    TABLE
      OF CONTENTS

    

    

      
        	
                BACKGROUND

              	 	
                1

              
	 	 	 
	
                1.

              	
                Employment
                  and Term of Employment.

              	
                2

              
	
                1.1

              	
                Five-Year
                  Term

              	
                2

              
	
                1.2

              	
                Conditions
                  to Term.

              	
                2

              
	
                (a)

              	
                Automatic
                  Renewal and Extension.

              	
                2

              
	
                (b)

              	
                Termination
                  at Anniversary.

              	
                2

              
	
                (c)

              	
                Termination
                  for Other Reasons.

              	
                2

              
	
                1.3

              	
                “Term“
                  Definition.

              	
                2

              
	
                1.4

              	
                “Anniversary
                  Date“ Definition

              	
                2

              
	 	 	 
	
                2.

              	
                Services
                  and Duties.

              	
                3

              
	
                2.1

              	
                Offices

              	
                3

              
	
                2.2

              	
                Duties

              	
                3

              
	
                (a)

              	
                Full
                  Time and Best Efforts.

              	
                3

              
	
                (b)

              	
                Outside
                  Activities

              	
                3

              
	 	 	 
	
                3.

              	
                Compensation.

              	
                3

              
	
                3.1

              	
                Compensation
                  Definition

              	
                3

              
	
                3.2

              	
                Base
                  Salary

              	
                3

              
	
                (a)

              	
                Payment.

              	
                3

              
	
                (b)

              	
                Adjustment

              	
                4

              
	
                3.3

              	
                Plans
                  and Programs

              	
                4

              
	
                (a)

              	
                Pro-Ration

              	
                4

              
	
                3.4

              	
                Year

              	
                4

              
	
                3.5

              	
                Compensation
                  Pro-Ration

              	
                4

              
	 	 	 
	
                4.

              	
                Fringe
                  and Other Benefits

              	
                4

              
	
                4.1

              	
                Generally
                  Available Benefits

              	
                4

              
	
                4.2

              	
                Other
                  Benefits

              	
                4

              
	
                4.3

              	
                Expenses

              	
                4

              
	
                4.4

              	
                Indemnity

              	
                4

              

      

       

       

      
        
          
          

        

        
          i

          
            

          

        

        
          
          

        

      

       

      

       

      
        	 	 	 
	
                5.

              	
                Disability
                  and Death Compensation.

              	
                5

              
	
                5.1

              	
                Permanent
                  Disability

              	
                5

              
	
                5.2

              	
                Disability
                  Compensation

              	
                5

              
	
                (a)

              	
                Monthly
                  Disability Payments

              	
                5

              
	
                (b)

              	
                Disability
                  Benefits

              	
                5

              
	
                (c)

              	
                Partial
                  Disability Compensation.

              	
                5

              
	
                5.3

              	
                Death
                  Compensation

              	
                6

              
	
                (a)

              	
                Termination
                  of Employment and Regular Compensation.

              	
                6

              
	
                (b)

              	
                Death
                  Benefit.

              	
                6

              
	
                (c)

              	
                Life
                  Insurance.

              	
                6

              
	 	 	 
	
                6.

              	
                Termination
                  “For Cause” by Commerce.

              	
                6

              
	
                6.1

              	
                “For
                  Cause” Termination

              	
                6

              
	
                (a)

              	
                Prior
                  Written Notice

              	
                6

              
	
                (b)

              	
                Failure
                  to Cure

              	
                6

              
	
                6.2

              	
                “For
                  Cause” Definition

              	
                6

              
	
                (a)

              	
                Conviction
                  or Plea

              	
                6

              
	
                (b)

              	
                Willful
                  Violation

              	
                6

              
	
                6.3

              	
                Compensation
                  on Termination “For Cause”

              	
                7

              
	 	 	 
	
                7.

              	
                Termination
                  “Without Cause” by Commerce.

              	
                7

              
	
                7.1

              	
                “Without
                  Cause” Termination

              	
                7

              
	
                7.2

              	
                “Without
                  Cause” Definition

              	
                7

              
	
                7.3

              	
                Compensation
                  for Termination “Without Cause”

              	
                7

              
	
                (a)

              	
                Compensation
                  through Termination Date

              	
                7

              
	
                (b)

              	
                “Without
                  Cause Severance Payment”

              	
                7

              
	 	 	 
	
                8.

              	
                Termination
                  “For Good Reason” by Hill.

              	
                8

              
	
                8.1

              	
                “Good
                  Reason” Termination

              	
                8

              
	
                (a)

              	
                Prior
                  Written Notice

              	
                8

              
	
                (b)

              	
                Failure
                  to Cure

              	
                8

              
	
                8.2

              	
                Compensation
                  for “Good Reason” Termination

              	
                8

              
	
                (a)

              	
                Compensation
                  through Termination Date

              	
                8

              
	
                (b)

              	
                “Good
                  Reason Severance Payment”

              	
                8

              

      

       

       

      
        
          
          

        

        
          ii

          
            

          

        

        
          
          

        

      

       

      

       

      
        	
                9.

              	
                “Change
                  in Control” and “Good Reason”

              	
                8

              
	
                9.1

              	
                Change
                  in Control Definition

              	
                8

              
	
                (a)

              	
                Board
                  Change

              	
                8

              
	
                (b)

              	
                Beneficial
                  Ownership Change.

              	
                9

              
	
                9.2

              	
                Good
                  Reason Definition

              	
                9

              
	
                (a)

              	
                Both
                  a Change in Control and Other Reductions

              	
                9

              
	
                (b)

              	
                Material
                  Breaches

              	
                10

              
	
                (c)

              	
                Non-Assumption

              	
                10

              
	 	 	 
	
                10.

              	
                Additional
                  Payments/Excise Taxes.

              	
                10

              
	
                10.1

              	
                Gross-Up
                  Payment

              	
                10

              
	
                (a)

              	
                Tax
                  is Determined Due

              	
                10

              
	
                (b)

              	
                Interest
                  or Penalties are Incurred

              	
                10

              
	
                10.2

              	
                Gross-Up
                  Payment Determination

              	
                11

              
	
                (a)

              	
                Cooperation

              	
                11

              
	
                (b)

              	
                Calculations

              	
                11

              
	
                (c)

              	
                Fees
                  and Expenses.

              	
                11

              
	
                (d)

              	
                Payment
                  Timing

              	
                11

              
	
                (e)

              	
                Binding
                  Effect

              	
                11

              
	
                (f)

              	
                Possible
                  Underpayment

              	
                11

              
	
                10.3

              	
                Notice
                  of IRS Claim

              	
                12

              
	
                (a)

              	
                Time
                  and Content of Notice

              	
                12

              
	
                (b)

              	
                Payment
                  Timing

              	
                12

              
	
                (c)

              	
                Contest
                  Notice

              	
                12

              
	
                (d)

              	
                Other
                  Contest Terms

              	
                13

              
	
                10.4

              	
                Refund

              	
                14

              
	
                (a)

              	
                Denial
                  of Refund

              	
                14

              
	
                 

              	 	 
	
                11.

              	
                Other
                  Rights for Termination “Without Cause” or “For Good
                  Reason”

              	
                14

              
	
                11.1

              	
                Other
                  Benefits

              	
                14

              
	
                (a)

              	
                Insurance

              	
                14

              
	
                11.2

              	
                Plans
                  and Program Rights

              	
                14

              
	
                11.3

              	
                No
                  Mitigation by Hill

              	
                14

              
	 	 	 
	
                12.

              	
                Source
                  of Payment and Timing.

              	
                15

              
	
                12.1

              	
                Source

              	
                15

              
	
                12.2

              	
                Time

              	
                15

              

      

       

       

      
        
          
          

        

        
          iii

          
            

          

        

        
          
          

        

      

       

      

       

      
        	
                13.

              	
                Interest

              	
                15

              
	 	 	 
	
                14.

              	
                Reimbursement
                  of Enforcement Expenses

              	
                15

              
	
                14.1

              	
                Failure
                  to Pay

              	
                15

              
	
                14.2

              	
                Failure
                  to Provide

              	
                15

              
	
                14.3

              	
                Further
                  Conditions for Reimbursement

              	
                15

              
	 	 	 
	
                15.

              	
                Confidential
                  Information and Non-Competition.

              	
                16

              
	
                15.1

              	
                Confidentiality

              	
                16

              
	
                (a)

              	
                Company
                  Information Definition

              	
                16

              
	
                (b)

              	
                Non-Disclosure
                  and Non-Use

              	
                16

              
	
                15.2

              	
                Commerce’s
                  Interests

              	
                16

              
	
                15.3

              	
                Non-Competition
                  and Time of Restrictions.

              	
                16

              
	
                (a)

              	
                Non-Competition

              	
                16

              
	
                (b)

              	
                Time
                  of Restrictions

              	
                17

              
	
                15.4

              	
                Remedies

              	
                17

              
	
                (a)

              	
                No
                  Defense or Bar

              	
                17

              
	
                (b)

              	
                Payments
                  After Breach

              	
                18

              
	
                15.5

              	
                Enforceability

              	
                18

              
	
                15.6

              	
                Commerce
                  Definition

              	
                18

              
	 	 	 
	
                16.

              	
                Successions.

              	
                18

              
	
                16.1

              	
                Successors/Assigns/Heirs

              	
                18

              
	
                16.2

              	
                Death

              	
                19

              
	
                16.3

              	
                Combinations

              	
                19

              
	 	 	 
	
                17.

              	
                Notices.

              	
                19

              
	
                17.1

              	
                Form
                  of Notice

              	
                19

              
	
                17.2

              	
                Place
                  of Notice

              	
                19

              
	 	 	 
	
                18.

              	
                General
                  Provisions.

              	
                20

              
	
                18.1

              	
                Entire
                  Agreement

              	
                20

              
	
                18.2

              	
                Amendments,
                  Waivers and Termination

              	
                20

              
	
                18.3

              	
                Alternate
                  Payments

              	
                20

              
	
                18.4

              	
                Benefits
                  and Insurance

              	
                20

              
	
                18.5

              	
                “Person”
                  Definition.

              	
                20

              
	
                18.6

              	
                Counterparts

              	
                20

              
	
                18.7

              	
                No
                  Waiver

              	
                21

              
	
                18.8

              	
                Assignment

              	
                21

              
	
                18.9

              	
                New
                  Jersey Jurisdiction

              	
                21

              
	
                (a)

              	
                Courts
                  in Camden, NJ

              	
                21

              
	
                (b)

              	
                Service
                  of Process

              	
                21

              

      

       

       

      
        
          
          

        

        
          iv

          
            

          

        

        
          
          

        

      

       

      

       

      
        	
                 

              	 	 
	
                18.10

              	
                Headings.

              	
                21

              
	
                18.11

              	
                Notice
                  of Dispute and Cure

              	
                21

              
	
                18.12

              	
                New
                  Jersey Law

              	
                22

              
	 	 	 
	
                SIGNATURES

              	
                 

              	
                22

              

      

    

     

    
 

    

    
      
        
           

        

        
        

      

      
        v

        
          

        

      

      
        
        

        
                                                                                                                                            

        

      

    

                                                                              

    

     

     

    AMENDED
      AND RESTATED EMPLOYMENT AGREEMENT

     

    This
      Amended and Restated Employment Agreement (“Agreement”)
      is
      dated effective as of January 1, 2006, by and between: 

    

    
      	Ø  	
              COMMERCE
                BANCORP, INC.
                (“Commerce”),
                

            

    

     

    a
      New
      Jersey business corporation,

     

    and
      

     

    
      	Ø  	
              VERNON
                W. HILL, II
                (“Hill”).

            

    

     

    

    BACKGROUND

    

    A.  Hill
      is
      the Chairman, President and Chief Executive Officer (“CEO”)
      of
      Commerce and of Commerce Bank, N.A. (“CB”),
      a
      national banking association and a wholly-owned subsidiary of Commerce.

     

    B.  Hill
      and
      Commerce are parties to an Employment Agreement dated January 1, 1992
      (“Prior
      Agreement”)
      and
      wish to amend and restate it to reflect current circumstances, including
      reduction in Hill’s base salary and to make his total compensation more
      incentive-based. 

     

    C.  The
      Board
      of Directors of Commerce (the “Board”)
      has
      determined that the continued and future services of Hill will be of value
      to
      Commerce, CB and Commerce’s other present and future subsidiaries, and has
      authorized this Agreement. 

     

    D.  Accordingly,
      the Board wishes to have Hill’s services available to Commerce for at least five
      (5) years and to provide supplemental benefits to Hill should his employment
      with Commerce terminate under certain circumstances or should he die or become
      disabled before the termination of this Agreement.

     

    

     

    
      
         

        
        

      

      
        Page
          1 of
          22

        
          

        

      

      
        
        

                                                                                                                                        

      

    

     

    

    

    NOW,
      THEREFORE,
      in
      consideration of the mutual covenants and agreements contained here, and
      intending to be legally bound, Commerce and Hill agree as follows:

    

    1. Employment
      and Term of Employment.

     

    1.1 Five-Year
      Term.
      Commerce offers, and Hill accepts employment on all the terms and conditions
      of
      this Agreement, for a term of five
      (5) years
      beginning on the date stated above.  

     

    1.2 Conditions
      to Term. This
      five-year term is subject to: 

     

    (a) Automatic
      Renewal and Extension.
      On each
      Anniversary Date, this Agreement and Hill’s employment shall automatically be
      renewed and extended (on the same terms and conditions) for a new five-year
      term
unless
      written
      notice of Termination at Anniversary is given pursuant to Section 1.2(b)
      below. 

     

    (b) Termination
      at Anniversary.
      Either
      Commerce or Hill may terminate this Agreement on any Anniversary Date by giving
      to the other party written notice of termination no later than November
      1 before
      any
      such Anniversary Date.
      If such
      prior notice is given to either party, then the Term will have four
      (4) years remaining after
      the
      applicable Anniversary Date,
      subject
      to the terms and conditions of this Agreement.

     

    (c) Termination
      for Other Reasons. This
      Agreement may be terminated on Death, “For Cause”, “Without Cause”, or for “Good
      Reason” as described in Sections 5-8 below. 

    

    1.3 "Term" Definition.
      “Term”
means
      the original five-year employment period, as well as any renewed or extended
      periods as provided for in this Agreement. 

     

    1.4  “Anniversary
      Date" Definition.
      “Anniversary
      Date”
means
      January
      1, 2007,
      as well
      as each
      annual January 1 thereafter
      if this
      Agreement is automatically renewed or extended. 

     

    

     

     

    

    
      
        
          
          

        

        
          Page
            2 of
            22

          
            

          

        

        
          
          

        

      

    

     

    

    

    2.
      Services and Duties.

     

    2.1 Offices.
      During
      the Term, Hill shall be employed as Chairman,
      President and CEO of Commerce.
      Subject
      to the approval of the CB Board of Directors, during the Term, Hill shall also
      serve as the Chairman
      of the Board, President and CEO of CB.
      Subject
      to the approval of the respective Boards of Directors, during the Term, Hill
      shall also serve as an officer and/or director of such other subsidiaries of
      Commerce as such Board of Directors, with the consent of Hill, shall
      designate. 

     

    2.2 Duties.
      As the
      Chairman of the Board, President and CEO of Commerce, Hill shall have primary
      responsibility for all operations of Commerce and its subsidiaries subject
      to
      the oversight of the respective Boards of Directors, provided that such duties
      are consistent with his present duties. 

     

    (a) Full
      Time and Best Efforts.
      Hill
      accepts such duties, will devote his full time and best efforts to the business
      and affairs of Commerce and its subsidiaries, and will use his best efforts
      to
      promote the interests of Commerce and its subsidiaries.

     

    (b) Outside
      Activities.
      Hill
      also has participated in and shall have discretion to participate in other
      outside activities. Such outside activities are expressly permitted, and shall
      be in addition to and notwithstanding Hill’s obligation of full time and best
      efforts as described in Section 2.2(a).

     

    

    3. Compensation.

     

    3.1 Compensation
      Definition.
      “Compensation”
means
      the sum of the highest annual rate of base salary (described in Section 3.2)
      and
      highest cash bonus (described in Section 3.3) paid to Hill during the most
      recent twenty-four (24) months of the Term.

     

    3.2 Base
      Salary.
      Commerce shall pay Hill “base
      salary”
at
      the
      rate of not less than $1,000,000
      per year
      for all
      services to be rendered by him under this Agreement and for all positions held
      by him during the Term. 

     

    (a) Payment.
      Base
      salary is payable at regular intervals in accord with Commerce’s normal payroll
      practices now or later in effect. 

     

     

     

    

    
      
        
          
          

        

        
          Page
            3 of
            22

          
            

          

        

        
          
          

        

      

    

     

    

    
 

    (b)
      Adjustment.
      Base
      salary is subject to an annual review and such upward adjustments as may be
      deemed appropriate by the Board or a Board-designated Committee. The Board
      or
      such Committee may recommend an increase in base salary for Hill, but shall
      have
      no obligation to do so. Base salary may not be decreased without Hill’s written
      consent.

     

    3.3 Plans
      and Programs.
      During
      the Term, Hill shall be entitled to participate in any cash or other bonus
      programs, incentive compensation plans, stock option plans or similar benefit
      or
      compensation programs now or later in effect that are generally made available
      to executive officers of Commerce. 

     

    (a) Pro-Ration.
      For any
      period less than a full year during the Term, Hill shall receive an amount
      equal
      to the prorated portion of any payment pursuant to such plan or
      program.

     

    3.4 Year.
      A
“year” commences on January 1, 2006, and on January 1 of each subsequent
      calendar year. 

     

    3.5 Compensation
      Pro-Ration. Compensation
      for a portion of a year shall be pro-rated. 

    

    4. Fringe
      and Other Benefits.
      During
      the Term, Hill shall also be entitled to.

     

    4.1 Generally
      Available Benefits.
      Participate in all fringe benefits as then in effect that are generally
      available to Commerce’s executive officers including, without limitation,
      medical and hospitalization coverage, life insurance coverage and disability
      coverage, and Supplemental Executive Retirement Plan (“SERP”)
      coverage;

     

    4.2 Other
      Benefits.
      Such
      other fringe benefits as the Board, or a Board-designated Committee, shall
      deem
      appropriate; provided that such benefits are consistent with those that he
      currently enjoys including, without limitation, use of an automobile, paid
      holidays and vacations, and club memberships;

     

    4.3 Expenses.
      Reimbursement by Commerce for all expenses incurred by Hill which Commerce
      determines to be reasonable and necessary (in accord with its normal
      reimbursement practices now or later in effect) for Hill to carry out his duties
      under this Agreement;
      and

     

    4.4 Indemnity.
      Indemnification by Commerce to the fullest extent permitted by governing law
      and
      in accord with Commerce’s bylaws and policies, against all claims concerning
      Hill’s status as an officer, director, employee, or agent of
      Commerce. 

     

    

    
      
        
        

      

      
        Page
          4 of
          22

        
          

        

      

      
        
        

      

    

     

    

    
 

    5. Disability
      and Death Compensation.

     

    5.1 Permanent
      Disability.
      Hill
      shall be deemed to have become “permanently
      disabled”
upon
      his failure to render services of the character contemplated by this Agreement,
      because of his physical or mental illness or other incapacity beyond his
      control, other than his death, for a continuous period of 6 months, or for
      shorter periods aggregating more than 9 months in any 18 consecutive
      months.

     

    5.2 Disability
      Compensation.
      Commerce shall compensate Hill for the balance of the Term at a
      rate equal to 70% of his Compensation
      at the
      time Hill becomes permanently disabled while employed during the
      Term.

     

    (a) Monthly
      Disability Payments.
      Commerce shall make the payments due under this Section 5.2 on the first day
      of
      each month, starting with the first day of the month following the month in
      which Hill is deemed to be permanently disabled, in an amount equal to
1/12
      of 70% of Hill’s Compensation
      at the
      time he is deemed to be permanently disabled. 

     

    (i)
      Insurance
      Reductions.
      Monthly
      Disability Payments shall be reduced each month, however, by the amount of
      any
      disability payments made to Hill under any Commerce-sponsored disability
      insurance plan. The amount of the reduction under the preceding sentence shall
      be computed as if Hill had elected to receive monthly payments of disability
      benefits (regardless of the actual payment frequency). 

     

    (b) Disability
      Benefits.
      After
      becoming permanently disabled as provided in this Section 5, Hill shall
      nonetheless continue until the end of the Term to be entitled to receive at
      Commerce’s expense such group hospitalization coverage, life insurance coverage
      and disability coverage as is generally made available from time to time to
      executive officers of Commerce, if and to the extent permitted by the respective
      insurers of such coverage. 

     

    (c) Partial
      Disability Compensation.
      Hill
      shall continue to receive his full Compensation if he is partially disabled
      and
      until such time as Hill is deemed to be permanently disabled.

     

     

     

    

    
      
        
          
          

        

        
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            5 of
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    5.3
      Death Compensation.
      If Hill
      dies during the Term, then: 

     

    (a) Termination
      of Employment and Regular Compensation.
      Hill’s
      employment and rights to Compensation described above shall automatically
      terminate at the close of the calendar week in which death occurs;
      and

     

    (b) Death
      Benefit.
      Commerce shall pay to such person as Hill shall designate in a notice filed
      with
      Commerce or, if no such person shall be designated, to his estate, in addition
      to his full Compensation due under Section 5.3(a), a lump
      sum “Death
      Benefit”
      in an
      amount equal to the
      product of three (3) times Hill’s Compensation at the time of his
      death.

     

    (c) Life
      Insurance.
      The
      foregoing “Death Benefit” shall be in addition to any amount payable under any
      group life insurance program maintained by Commerce or CB.

    

    6. Termination
      “For Cause” by Commerce.

     

    6.1  “For
      Cause” Termination.
      Commerce shall have the right at any time to terminate Hill’s employment
“For
      Cause”
only
      if:

     

    (a) Prior
      Written Notice.
      Commerce shall give Hill not less than thirty (30) days prior written notice
      of
      its intention to terminate his employment specifying in detail the reason(s)
      for
      such termination and the date of termination; and 

     

    (b) Failure
      to Cure.
      After
      receipt of such notice, Hill fails to cure, cease or remedy the reason(s) for
      such termination before the date of termination stated in such
      notice. 

     

    6.2 “For
      Cause” Definition.
      “For
      Cause”
means
      only the following at any time during the Term:

     

    (a) Conviction
      or Plea.
      If Hill
      is convicted of or enters a plea of guilty or nolo
      contendre
      to, a
      felony, a crime of falsehood or a crime involving fraud, moral turpitude or
      dishonesty; or

     

    (b) Willful
      Violation.
      If Hill
      willfully violates any of the terms or provisions of this Agreement, including,
      without limitation: 

     

     

    
      
        
        

      

      
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    (i)
      Hill’s willful failure to perform his duties in Section 2.2 above and this
      Agreement or the Board’s instructions after written notice of such instructions
      (other than any such failure resulting from Hill’s incapacity due to illness or
      disability); or 

     

    (ii)
      Hill
      engages in any conduct materially harmful to Commerce’s business.

     

    6.3 Compensation
      on Termination “For Cause”.
      Commerce shall pay Hill any
      prorated portion of his
      full Compensation that is then owed
      through
      the date of termination if Hill’s employment shall terminate “For Cause” and
Commerce
      shall have no further obligations to Hill under this Agreement other
      than to pay Hill such other plan, program, or other benefits as may be due
      Hill
      pursuant to Sections 3.3 and 4 above.

    

    7. Termination
      “Without Cause” by Commerce. 

     

    7.1 “Without
      Cause” Termination.
      Commerce shall have the right to terminate Hill’s employment “Without
      Cause”
by
      giving not less than thirty (30) days prior written notice of its intention
      to
      terminate his employment “Without Cause” pursuant to this Section 7. 

     

    7.2 “Without
      Cause” Definition.
      Termination “Without
      Cause”
means
      any reason other than by either Termination “For Cause” (Section 6 above), or
      Termination at Anniversary (Section 1.2(b) above). 

     

    7.3 Compensation
      for Termination “Without Cause”.
      Commerce shall pay Hill the following if Commerce terminates Hill’s employment
“Without Cause”:

     

    (a) Compensation
      through Termination Date.
      Any
      pro-rated portion of his full Compensation through the date of termination;
      and

     

    (b) “Without
      Cause Severance Payment”.
      A lump
      sum severance payment (the “Without
      Cause Severance
      Payment”)
      in
      lieu of any further Compensation payments to Hill after the date of
      termination. 

     

    (i) “Without
      Cause Severance Payment”
means
      the sum of Hill’s full Compensation that would still be remaining until the end
      of the then Term had Hill continued to be employed by Commerce to the end of
      the
      then Term.

     

     

     

    
      
        
        

      

      
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    8. Termination
      “For Good Reason” by Hill.

     

    8.1 “Good
      Reason” Termination.
      Hill
      shall have the right to terminate his employment “For Good
      Reason”
(as
      defined in Section 9.2 below) if: 

     

    (a) Prior
      Written Notice.
      Hill
      shall first give Commerce not less than thirty (30) days prior written notice
      of
      his intention to terminate his employment specifying the reason(s) for such
      termination and the date of termination; and 

     

    (b) Failure
      to Cure.
      After
      receipt of such notice, if Commerce fails to cure, cease or remedy the reason(s)
      for such termination before the date of termination stated in such
      notice.

     

    8.2 Compensation
      for “Good Reason” Termination.
      Commerce shall pay to Hill the following if Hill terminates his employment
      “For Good
      Reason”
      (defined in Section 9.2):

     

    (a) Compensation
      through Termination Date.
      Hill’s
      full Compensation through the termination date; and

     

    (b) “Good
      Reason Severance Payment”.
      A lump
      sum “Good
      Reason Severance
      Payment”
in
      lieu
      of any further Compensation payments to Hill after the date of
      termination. 

     

    (i)
      “Good
      Reason Severance Payment”
means
      a
      lump sum equal to four (4) times Hill’s Compensation immediately preceding such
      termination. 

     

    

    9. “Change
      in Control” and “Good Reason”.

     

    9.1 Change
      in Control Definition.
      “Change
      in Control”
or
      “Change
      of Control”
means
      a
      change in control of Commerce or CB of a nature that would be required to be
      reported in response to Item 6(e) of Schedule 14A of Regulation 14A promulgated
      under the Securities Exchange Act of 1934, as amended (the “Exchange
      Act”),
      or
      any successor provisions under the Exchange Act, whether or not Commerce or
      CB
      is subject to such reporting requirement; provided
      that,
      without
      limitation, such a change in control shall have been deemed to occur
      conclusively when any of the following events shall have occurred without Hill’s
      prior written consent:

     

    (a) Board
      Change.
      Within
      any period of two (2) consecutive years during the Term, there is a change
      in at
      least a majority of the members of the Board or the addition of five or more
      new
      members to the Board, unless
      such
      change or addition occurs with the affirmative vote in writing of Hill in his
      capacity as a director or a shareholder; or

     

     

    
      
        
        

      

      
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    (b) Beneficial
      Ownership Change.
      A
      Person or group acting in concert as described in Section 13(d)(2) of the
      Exchange Act holds or acquires beneficial ownership within the meaning of Rule
      13d-3 promulgated under the Exchange Act of a number of common shares of
      Commerce which constitutes either: 

     

    (i) more
      than
      fifty (50%) percent of the shares which voted in the election of directors
      of
      Commerce at the shareholders’ meeting immediately preceding such determination;
      or 

     

    (ii) more
      than
      thirty (30%) percent of Commerce’s outstanding common shares. For this Section
      9.1(b)(ii), unexercised warrants or options or unconverted nonvoting securities
      shall count as constituting beneficial ownership of Commerce’s common shares
      into which the warrants or options are exercisable or the nonvoting convertible
      securities are convertible, notwithstanding anything to the contrary contained
      in Rule 13d-3 of the Exchange Act.

     

    9.2 Good
      Reason Definition.
      “Good
      Reason”
      means: 

     

    (a) Both
      a Change in Control and Other Reductions.
      Both a
“change
      in control”
of
      Commerce (as defined in Section 9.1 above); and
      if any
      of the following “Other
      Reductions”
occur
      within
      three (3) years after such change in control
      without
      Hill’s prior written consent: 

     

    (i)
      Reduction
      of Authority.
      The
      nature and scope of Hill’s authority with Commerce or a surviving or acquiring
      Person are materially reduced to a level below that which he enjoys when the
      change in control occurs; 

     

    (ii)
      Materially
      Inconsistent Duties.
      The
      duties and responsibilities assigned to Hill are materially inconsistent with
      that which he enjoys when the change in control occurs; 

     

    (iii)
      Materially
      Reduced Benefits.
      The
      fringe benefits which Commerce provides Hill are materially reduced to a level
      below that which he enjoys when the change in control occurs; 

     

    (iv)
      Reduction
      of Position or Title.
      Hill’s
      position or title with Commerce or the surviving or acquiring Person is reduced
      from his current position or title with Commerce when the change in control
      occurs; or 

     

     

     

    

    
      
        
          
          

        

        
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     (v)
      Transfer
      or Offices and Relocation.
      Any
      relocation or transfer of Commerce’s principal executive offices to a location
      more than fifty (50) miles from Hill’s principal residence on the date when the
      change in control occurs; or, if Hill is required, without his prior written
      consent, to relocate more than fifty (50) miles from his principal residence
      when the change in control occurs. 

     

    (b) Material
      Breaches.
      Commerce materially breaches this Agreement; or

     

    (c) Non-Assumption.
      There
      is a failure or refusal of any successor to Commerce to assume all duties and
      obligations of Commerce under this Agreement.

    

    10. Additional
      Payments/Excise Taxes.

     

    10.1 Gross-Up
      Payment.
      Notwithstanding anything in this Agreement to the contrary or any termination
      of
      this Agreement, Hill
      shall be entitled to receive an additional payment
      (a
“Gross-Up
      Payment”)
      if: 

     

    (a) Tax
      is Determined Due.
      It
      shall be determined that any payment or distribution or benefit made or provided
      by Commerce or its affiliates to or for the benefit of Hill, whether pursuant
      to
      this Agreement or some other plan or otherwise, including income recognized
      by
      the exercise of options to buy Commerce stock, and determined without regard
      to
      any additional payments required under this Section 10 (a “Payment”),
      would
      be an excess Parachute Payment that is not deductible by Commerce for federal
      income tax purposes and subject to an excise tax; or 

     

    (b) Interest
      or Penalties are Incurred.
      Any
      interest or penalties are incurred by Hill concerning such excise
      tax. 

     

    (i) Excise
      Tax Definition.
       “Excise
      Tax”
means
      both: any excise tax imposed on any Compensation payments due to Hill -
      including Death Benefit, Compensation for Termination “Without Cause” or “For
      Good Reason” under Sections 5.3(b), 7.3 or 8.2 above - because of Section 280G
      and Section 4999 of the Internal Revenue Code of 1986 as amended (the
“Code”)
      or any
      successor Code provision, or any state or local law; and interest or penalties
      incurred concerning such excise tax. 

     

     

     

    

    
      
        
          
          

        

        
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     (ii)
      Gross-Up
      Payment Definition.
      “Gross-Up
      Payment”
means
      any amount of additional payments to Hill that are needed so that Hill incurs
      no
      out-of-pocket expense for Excise Taxes, and to place Hill in the same position
      after all federal and state taxes - including all income tax, Excise Tax,
      employment or other tax or any penalties and interest - that Hill would have
      been in if: (a) Hill did not have to pay the Excise Tax; (b) the Excise Tax
      did
      not apply for reasons other than Sections 280G and 4999 of the Code; and (c)
      Hill did not have to pay any interest or penalty charge for the imposition
      of
      any portion of the Excise Tax. 

     

    10.2 Gross-Up
      Payment Determination.
      All
      determinations required to be made under this Section 10, including whether
      and
      when a Gross-Up Payment is required, the amount of such Gross-Up Payment, the
      calculations under Section 280G and 4999 of the Code, and the assumptions to
      be
      used in arriving at such determination, shall be made by Commerce’s independent
      auditor or another nationally recognized accounting firm chosen by the auditor
      with the consent of Commerce and Hill (the “Accounting
      Firm”). 

     

    (a) Cooperation.
      Commerce and Hill shall cooperate with Accounting Firm and provide information
      needed for the determination. 

     

    (b) Calculations.
      Accounting Firm shall provide detailed supporting calculations both to Commerce
      and Hill within
      fifteen (15) business days
      of the
      receipt of notice from Hill that there has been a Payment or receipt of Notice
      of IRS claim under Section 10.3, or such earlier time as is requested by
      Commerce. 

     

    (c) Fees
      and Expenses.
      Commerce shall pay all fees and expenses of the Accounting Firm for services
      for
      this determination. 

     

    (d) Payment
      Timing.
      Commerce shall pay any Gross-Up Payment, as determined pursuant to this Section
      10, to Hill within
      five (5) days
      of the
      receipt of the Accounting Firm’s determination. 

     

    (e) Binding
      Effect.
      Any
      determination by the Accounting Firm shall be binding upon Commerce and
      Hill. 

     

    (f) Possible
      Underpayment.
      As a
      result of the uncertainty in the application of Section 4999 of the Code at
      the
      time of the initial determination by the Accounting Firm, it is possible that
      Commerce may not make Gross-Up Payments that should be made (“Underpayment”). 

     

     

     

    

    
      
        
          
          

        

        
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     (i)
      Determination.
      If
      Commerce exhausts its remedies pursuant to Section 10.3 and Hill is later
      required, directly or indirectly, to make a payment of any Excise Tax, then
      the
      Accounting Firm shall determine the amount of the Underpayment that has
      occurred. Such amount shall be sufficient to put Hill in the same position
      after
      all federal and state taxes - including all income tax, Excise Taxes,
      employment, or other taxes, and all penalties and interest on such taxes -
      as
      Hill would have been in if there had been no Underpayment and Commerce had
      made
      appropriate Gross-Up Payment in the first instance. 

     

    (ii)
      Payment.
      Commerce shall promptly pay to Hill or for the benefit of Hill any amounts
      determined by Accounting Firm to be needed to satisfy any
      Underpayment.

     

    10.3 Notice
      of IRS Claim.
      Hill
      shall notify Commerce in writing of any claim by the Internal Revenue Service
      (“IRS”)
      that,
      if successful, would require the payment by Commerce of the Gross-Up
      Payment. 

     

    (a) Time
      and Content of Notice.
      Such
      notification shall be given as soon as practicable but not later than
ten
      (10) business days
      after
      Hill is informed in writing of such claim and shall apprise Commerce of the
      nature of such claim and the date on which such claim is requested to be
      paid. 

     

    (b) Payment
      Timing.
      Hill
      shall not pay such IRS claim until thirty (30) days after the date on which
      he
      gives such notice to Commerce (or such shorter period ending on the date that
      any payment of taxes on such claim is due). 

     

    (c) Contest
      Notice.
      If
      Commerce notifies Hill in writing before the expiration of such thirty (30)
      day
      period that it desires to contest such IRS claim, then Hill shall: 

     

    (i)
      Give
      Commerce any information reasonably requested by Commerce relating to such
      IRS
      claim;

     

    (ii)
      Take
      such action in connection with contesting such IRS claim as Commerce shall
      reasonably request in writing, including, without limitation, accepting legal
      representation for such IRS claim by an attorney reasonably selected by
      Commerce; 

     

    (iii)
      Cooperate with Commerce in good faith in order to effectively contest such
      IRS
      claim; and 

     

    (iv)
      Permit Commerce to participate in any proceedings on such IRS claim.

     

     

    
      
        
        

      

      
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    (d) Other
      Contest Terms.
      Without
      limitation on the foregoing provisions of this Section 10.3: 

     

    (i)
      Commerce shall bear and pay directly all costs and expenses (including
      additional interest and penalties) incurred in connection with such contest
      and
      shall indemnify and hold Hill harmless, on an after-tax basis, for any Excise
      Tax or income tax (including interest and penalties with respect thereto)
      imposed as a result of such representation and payment of costs and expenses.
      

     

    (ii)
      Commerce shall control all proceedings taken in connection with such contest
      and, at its sole option, may pursue or forgo any and all administrative appeals,
      proceedings, hearing and conferences with the taxing authority in respect of
      such claim and may, at its sole option, either direct Hill to pay the tax
      claimed and sue for a refund or contest the IRS claim in any permissible manner;
      

     

    (iii)
      Hill agrees to prosecute such contest to a determination before any
      administrative tribunal, in a court of initial jurisdiction and in one or more
      appellate courts, as Commerce shall determine; 

     

    (iv)
      If
      Commerce directs Hill to pay such IRS claim and sue for a refund, then Commerce
      shall advance the amount of such payment to Hill on an interest-free basis
      and
      shall indemnify and hold Hill harmless, on an after-tax basis, from any Excise
      Tax or income tax (including interest penalties) imposed regarding such advance
      or regarding any imputed income with respect to such advance; 

     

    (v)
      Any
      extension of the statute of limitations relating to payment of taxes for the
      taxable year of Hill with respect to which such contested amount is claimed
      to
      be due is limited solely to such contested amount. 

     

    (vi)
      Commerce’s control of the contest shall be limited to issues with respect to
      which a Gross-Up Payment would be payable under this Section 10 and Hill shall
      be entitled to settle or contest, as the case may be, any other issue raised
      by
      the Internal Revenue Service or any other taxing authority. 

     

     

     

    

    
      
        
          
          

        

        
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    10.4 
      Refund.
      Hill
      shall [subject to Commerce’s complying with the requirements of Section 10.3]
      promptly pay to Commerce the amount of any refund actually received, including
      any interest paid or credited after applicable taxes if, after the receipt
      by
      Hill of an amount advanced by Commerce pursuant to Section 10.3, Hill becomes
      entitled to receive any refund for such IRS claim. 

     

    (a)  Denial
      of Refund.
      If,
      after the receipt by Hill of an amount advanced by Commerce pursuant to Section
      10.3, a determination is made that Hill shall not be entitled to any refund
      for
      such IRS claim and Commerce does not notify Hill in writing of its intent to
      contest such denial of refund before the expiration of thirty (30) days after
      such determination, then such advance shall be forgiven and shall not be
      required to be repaid and the amount of such advance shall offset the amount
      of
      Gross-Up Payment required to be paid. 

    

    11. Other
      Rights for Termination “Without Cause” or “For Good
      Reason”.

     

    11.1 Other
      Benefits.
      Hill
      shall be entitled to the following from Commerce, in addition to the other
      Compensation stated in either Section 7.3 or 8.2 above, if Hill’s employment is
      terminated either “Without
      Cause”
or
      “For
      Good Reason”
as
      set
      forth in either Section 7.1 or 8.1 above:

     

    (a) Insurance.
      Following the date of termination, Hill shall be entitled to participate in
      all
      Commerce medical, disability, hospitalization and life insurance benefits for
      a
      period of three (3) years: 

     

    (i)
      Exception.
      If Hill
      accepts subsequent employment during the three-year period following the date
      of
      termination, then continuation of any medical, disability, hospitalization
      and
      life insurance benefits will be offset by coverages provided through Hill’s
      subsequent employer.

     

    (b) Options
      Vest.
      Any
      outstanding options held by Hill to purchase Commerce stock shall vest as of
      the
      date of termination of Hill’s employment. 

     

    11.2 Plans
      and Program Rights.
      Nothing
      in this Agreement shall affect or have any bearing on Hill’s entitlement to
      other benefits under any plan or program providing benefits by reason of
      termination of employment.

     

    11.3 No
      Mitigation by Hill.
      Hill
      shall not be required, under any circumstance including provision in this
      Agreement, to mitigate the amount of any Compensation or payment provided for
      in
      this Agreement by seeking other employment.

     

    

    
      
        
          
          

        

        
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    12. Source
      of Payment and Timing.

     

    12.1 Source.
      All
      payments under this Agreement shall be paid in cash from the general funds
      of
      Commerce. 

     

    (a) No
      special or separate fund shall be required to be established and Hill shall
      have
      no right, title or interest whatsoever in or to any investment which Commerce
      may make to aid Commerce in meeting its obligations here, except
      to the
      extent that Commerce shall, in its sole and absolute discretion, choose to
      designate any of its rights it may have under one or more life insurance
      policies it may obtain to cover any of its obligations under this
      Agreement. 

     

    (b) Nothing
      in this Agreement, and no action taken pursuant to it, shall
      create or be construed to create a trust of any kind or fiduciary relationship
      between Commerce and Hill or any other Person.

     

    12.2 Time.
      All
      payments due Hill under Sections 5.2, 6.3, 7.3 or 8.2 above shall be made not
      later than the thirtieth (30th)
      day
      following the date of termination of employment.

    

    13. Interest.
      Hill
      shall be entitled (in addition to his other rights and remedies) to interest
      on
      past due amounts at a rate equal to two percentage points (2%) above the prime
      rate charged from time to time by CB if any benefits due to Hill are not paid
      when due with such interest to commence on the date a benefit was
      due.

    

    14. Reimbursement
      of Enforcement Expenses.
      Hill
      shall be entitled to full reimbursement from Commerce for all costs and expenses
      (including reasonable attorneys’ fees, costs, and interest as stated in Section
      13) incurred by Hill in enforcing his rights under this Agreement if the
      following exist: 

     

    14.1 Failure
      to Pay.
      Commerce fails to pay or provide Hill any of the amounts due him under this
      Agreement; or 

     

    14.2 Failure
      to Provide.
      Commerce fails to provide Hill with any of the other benefits due him under
      this
      Agreement; and 

     

    14.3 Further
      Conditions for Reimbursement.
      Provided
      that:

     

    (a)  Commerce
      does not cure any such failure within thirty (30) days after having received
      written notice from Hill of such failure; and 

     

     

     

    

    
      
        
          
          

        

        
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    (b)
      there
      is an adjudication that Hill’s action in enforcing his rights are not
      frivolous.

    

    15. Confidential
      Information and Non-Competition.

     

    15.1 Confidentiality. 

     

    (a) Company
      Information Definition.
      “Company
      Information”
means
      all data relating to Commerce’s business that is not generally published or
      available to the public, including writings, equipment, processes, drawings,
      strategic plans, reports, manuals, inventions, records, financial information,
      business plans, customer lists, the identity of and other facts concerning
      prospective customers, inventory lists, arrangements with suppliers and
      customers, computer programs, or other materials embodying trade secrets,
      customer product information, or technical or business information of
      Commerce.

     

    (b) Non-Disclosure
      and Non-Use.
      During
      the Term or any later time, except with the prior written consent of Commerce’s
      Board, Hill shall not, directly or indirectly:

     

    (i)
      Non-Disclosure.
      Disclose, communicate or divulge Company Information to any Person other than
      authorized Commerce personnel; 

     

    (ii)
      Non-Use.
      Use
      Company Information for the benefit of himself or any other Person, other than
      authorized Commerce personnel. 

     

    15.2 Commerce’s
      Interests.
      Hill
      will not, during the Term, except with the express prior written consent of
      Commerce’s Board, directly or indirectly, in any capacity (including but not
      limited to employee, owner, partner, consultant, agent, director, officer,
      shareholder or in any other capacity) engage in or assist any Person to engage
      in any act or action which he, acting reasonably, believes or should believe
      would be harmful or inimical to the interests of Commerce.

     

    15.3 Non-Competition
      and Time of Restrictions.

     

    (a) Non-Competition.
      Hill
      will not, except with the express prior written consent of Commerce’s Board, in
      any capacity (including, but not limited to, owner, partner, shareholder,
      consultant, agent, employee, officer, director or otherwise), directly or
      indirectly, for his own account or for the benefit of any Person: 

     

     

     

    

    
      
        
          
          

        

        
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     (i)
      Business
      and Geographic Restriction.
      Establish, engage or participate in or otherwise be connected with any
      commercial banking business which conducts business in any geographic area
      in
      which Commerce and its subsidiaries is then conducting such business.

     

    (ii)
      Exception.
      The
      foregoing shall not prohibit Hill from owning as a shareholder less than 5%
      of
      the outstanding voting stock of an issuer engaged in the commercial banking
      business.

     

    (b) Time
      of Restrictions.
      The
      non-competition restrictions in Section 15.3 shall start on the effective date
      of this Agreement and end as stated below for the appropriate
      circumstance.  

     

    (i) Hill’s
      Termination at Anniversary or Voluntary.
      If this
      Agreement is terminated by Hill in accord with the Termination at Anniversary
      in
      Section 1.2(b) of this Agreement or if Hill voluntarily terminates his
      employment, then the
      non-competition restriction ends one
      year following the effective date of termination of Hill’s employment under this
      Agreement;

    

    (ii)  Commerce’s
      Termination at Anniversary.
      If this
      Agreement is terminated by Commerce in accord with the provisions of Section
      1.2(b) of this Agreement, then the
      non-competition restriction ends on the
      effective date of termination of Hill’s employment under this
      Agreement;

    

    (iii)
      Termination
      “For Cause”.
      If
      Commerce terminates this Agreement “For Cause” in accord with Section 6 of this
      Agreement, then
      the non-competition restriction ends on the effective date of termination of
      Hill’s employment under this Agreement;
      or

     

    (iv)
      Termination
      “Without Cause” and “For Good Reason”.
      If this
      Agreement is terminated “Without Cause” or “For Good Reason” in accord with
      either Section 7.1 or 8.1 above, then
      the non-competition restriction ends on the effective date of termination of
      Hill’s employment under this Agreement.

    

    15.4 Remedies.
      Any
      breach by Hill of any of the terms in this Section 15 will result in irreparable
      injury to Commerce for which money damages could not adequately compensate
      Commerce; and, thus, in the event of any such breach, Commerce shall be entitled
      (in addition to any other rights and remedies which it may have at law or in
      equity) to have an injunction issued by any competent court enjoining and
      restraining Hill and/or any other Person involved from continuing such
      breach. 

     

    (a) No
      Defense or Bar.
      The
      existence of any claim or cause of action which Hill may have against Commerce
      or any other Person (other than a claim for Commerce’s breach of this Agreement
      for failure to make payments) shall not constitute a defense or bar to the
      enforcement of the terms in this Section 15. 

     

     

    
      
        
        

      

      
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    (b) Payments
      After Breach.
      In the
      event of any alleged breach by Hill of any of the terms in this Section 15,
      Commerce shall continue any and all of the payments due Hill under this
      Agreement until such time as a Court shall enter a final and unappealable order
      finding such a breach. 

     

    (i)
      Exception. The
      foregoing shall not preclude a Court from ordering Hill to repay such payments
      made to him for the period after the breach is determined to have occurred
      or
      from ordering that payments under this Agreement be permanently terminated
      in
      the event of a material and willful breach.

     

    15.5 Enforceability.
      If any
      portion of the terms in this Section 15, or their application, is construed
      to
      be invalid or unenforceable, then the other portions of such terms or their
      application shall not be affected and shall be given full force and effect
      without regard to the invalid or unenforceable portions to the fullest extent
      possible. 

     

    (a) If
      any
      term in this Section 15 is held to be unenforceable because of the area covered,
      duration, or scope, then Hill and Commerce expressly and intentionally authorize
      the court making such determination to reduce the area and/or duration and/or
      limit the scope to an enforceable term, so that the term shall then be
      enforceable in its reduced form.

     

    15.6 Commerce
      Definition.
      For
      this Section 15, the term “Commerce”
means
      Commerce, any successor of Commerce under Section 16 below, and all present
      and
      future direct and indirect subsidiaries and affiliates of Commerce including,
      but not limited to, CB.

     

    

    16. Successions.

     

    16.1 Successors/Assigns/Heirs.
      This
      Agreement shall inure to the benefit of and be binding on:

     

    (a) Commerce
      and Hill and their respective heirs, executors, administrators, successors
      and
      assigns; and 

     

    (b) Any
      corporate or other successor of Commerce that acquires, directly or indirectly,
      by combination, merger, consolidation, purchase, or otherwise, all or
      substantially all of the assets of Commerce. 

     

     

     

    

    
      
        
          
          

        

        
          Page
            18 of
            22

          
            

          

        

        
          
          

        

      

    

     

    

    
 

    16.2
      Death.
      On
      Hill’s death, except for the ”Death Benefit” governed by payment described in
      Section 5.3 above, any payments or benefits otherwise due Hill shall be paid
      to
      or be for the benefit of Hill’s legal representatives for his
      estate. 

     

    16.3 Combinations.
      Nothing
      in the Agreement shall preclude Commerce from combining, consolidating or
      merging into or with or transferring all or substantially all of its assets
      to
      another Person (“Combination”).
      

     

    (a) In
      the
      event of a Combination, such other Person shall be deemed to assume this
      Agreement and all obligations of Commerce in this Agreement. 

     

    (b) Upon
      such
      a Combination, the term “Commerce” shall mean such other Person and this
      Agreement shall continue in full force and effect.

    

    17. Notices.

     

    17.1 Form
      of Notice.
      All
      notices, requests, demands and other communications under this Agreement shall
      be in writing and shall be deemed to have been duly given if delivered by:
      hand
      with delivery receipt; or certified or registered mail, return receipt
      requested, with postage prepaid; or overnight or express courier with a
      receipt-for-delivery tracking system. 

     

    17.2 Place
      of Notice.
      All
      notices are to be delivered to the following addresses or to such other address
      as either party may designate in writing by like notice:

     

    
      	 	
              A.

            	
              If
                to Hill, to the address on file with the
                Company.

            

    

     

    
      	 	
              B.

            	
              If
                to Commerce, to:

            

    

    

    Commerce
      Bancorp, Inc.

    Commerce
      Atrium

    1701
      Route 70 East

    Cherry
      Hill, New Jersey 08034-5400

    

    
      	 	
              Attn:

            	
              Chairman,
                Compensation Committee

            

    

    Board
      of
      Directors

    

    

    
      
        
        

      

      
        Page
          19 of
          22

        
          

        

      

      
        
        

      

    

     

    

    
 

    18. General
      Provisions.

     

    18.1 Entire
      Agreement.
      This
      Agreement constitutes the entire agreement between Commerce and Hill concerning
      its subject matter. It supersedes and replaces all prior discussions,
      representations, promises or agreements, whether written or oral, express or
      implied, between Hill and Commerce or their representatives, including the
      Prior
      Agreement. 

     

    18.2 Amendments,
      Waivers and Termination.
      No
      amendment, waiver or termination of any of the provisions of this Agreement
      shall be effective unless in writing and signed by the party against whom it
      is
      sought to be enforced. Any written amendment, waiver or termination of this
      Agreement executed by Commerce and Hill (or his legal representatives) shall
      be
      binding upon them and upon all other Persons, without the necessity of securing
      the consent of any other Person including, but not limited to, Hill’s wife, and
      no Person shall be deemed to be a third party beneficiary under this Agreement
      except as provided under Section 16 above.

     

    18.3 Alternate
      Payments.
      Instead
      of Commerce, either CB or any other subsidiary of Commerce may make payments
      to
      Hill and, to the extent such payments are so made, Commerce shall be released
      of
      its obligations to make such payments.

     

    18.4 Benefits
      and Insurance.
      The
      benefits provided under this Agreement shall be in addition to and shall not
      affect the proceeds payable to Hill’s beneficiaries under group life insurance
      policies which Commerce may be carrying on Hill’s life.

     

    18.5  “Person”
      Definition.
      “Person”
means
      a
      natural person, joint venture, corporation, sole proprietorship, trust, estate,
      partnership, cooperative, association, non-profit organization or any other
      legal entity.

     

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

     

     

     

    

    
      
        
          
          

        

        
          Page
            20 of
            22

          
            

          

        

        
          
          

        

      

    

     

    

     

    
 

    18.7
      No Waiver.
      Except
      as otherwise expressly stated in this Agreement, no failure on the part of
      any
      party to this Agreement to exercise and no delay in exercising any right, power
      or remedy under this Agreement shall operate as a waiver; nor shall any single
      or partial exercise of any right, power or remedy under this Agreement preclude
      any other or further exercise of any of or the exercise of any other right,
      power or remedy.

     

    18.8 Assignment.
      Without
      Commerce’s prior written consent and approval, neither this Agreement nor any of
      its rights to receive payments shall be voluntarily or involuntarily:

     

    (a) Assigned,
      transferred, alienated, encumbered or disposed of, in whole or in part;
      or

     

    (b) Subject
      to anticipation, levy, execution, garnishment, attachment by, or interference
      or
      control of, any creditor.

     

    18.9 New
      Jersey Jurisdiction.
      Commerce and Hill irrevocably, voluntarily, knowingly and expressly consent
      to: 

     

    (a) Courts
      in Camden, NJ.
      The
      exclusive jurisdiction of the Superior Court, Law Division, Camden County,
      New
      Jersey or the United States District Court for the District of New Jersey,
      Camden Vicinage, to enforce this Agreement, or to resolve any claim, controversy
      or dispute involving it; and 

     

    (b) Service
      of Process.
      Service
      of process as set forth in the Notice stated in Section 17 above. 

     

    18.10 Headings.
      The
      headings of the sections of this Agreement have been inserted for convenience
      and clarity. They do not restrict or modify any of the terms or provisions
      of
      this Agreement.

     

    18.11 Notice
      of Dispute and Cure.
      If
      Commerce or Hill has a dispute or claim under this Agreement, then that dispute
      or claim shall be described with specificity in writing; and, the party
      receiving such written notice shall have thirty (30) business days to cure
      the
      dispute or claim. 

     

     

     

    

    
      
        
          
          

        

        
          Page
            21 of
            22

          
            

          

        

        
          
          

        

      

    

     

    

    
 

    18.12
      New Jersey Law.
      This
      Agreement shall be governed and construed, and the legal relationships of the
      parties determined, in accordance with the laws of the State of New Jersey
      applicable to contracts executed and to be performed solely in the State of
      New
      Jersey.

     

    

    

    

    COMMERCE
      BANCORP, INC.

    

    

    

    By: 
      /s/
      Douglas J. Pauls

                           
      Title: Senior Vice-President and Chief Financial Officer

                     
 

    Attest: 
      /s/ Alexander D. Bono

    Title:
      Senior Vice-President and General
      Counsel

    

    

    /s/
      Vernon W. Hill, II    

    Vernon
      W. Hill, II 

     

    March
      14, 2006

    Date

     

     

     

    Page
      22
      of 22Exhibit 10.1

    EXECUTION
      COPY

    
      
        

      

    

     

    FIFTH
      AMENDED AND RESTATED CREDIT AGREEMENT

     

    dated
      as
      of 

    March
      10,
      2006

     

     

    among

     

    LINCOLN
      NATIONAL CORPORATION,

    as
      an
      Account Party and Guarantor

     

    The
      SUBSIDIARY ACCOUNT PARTIES,

    as
      additional Account Parties

     

    The
      BANKS
      Party Hereto

     

    and

     

    JPMORGAN
      CHASE BANK, N.A.

    as
      Administrative Agent

     

    ___________________

     

    $1,500,000,000

     

    ___________________

     

    J.P.
      MORGAN SECURITIES INC.

    and

    WACHOVIA
      CAPITAL MARKETS LLC,

    as
      Joint
      Lead Arrangers and Joint Bookrunners

    

    WACHOVIA
      BANK, NATIONAL ASSOCIATION,

    as
      Syndication Agent

    

    and

    

    CITIBANK,
      N.A.,

    HSBC
      BANK
      USA, N.A.

    and

    THE
      BANK
      OF NEW YORK,

    as
      Documentation Agents

    ______________________________________________________________________________

    

      
        
          
            

             

          

           

        

        
           

          
            

          

        

        
           

        

      

    TABLE
      OF
      CONTENTS1 

     

    Page

     

    
      	
              ARTICLE
                I DEFINITIONS

            	
              1

            
	
              SECTION
                1.01. Definitions

            	
              1

            
	
              SECTION
                1.02. Accounting Terms and Determinations

            	
              13

            
	
              SECTION
                1.03. Types of Borrowings

            	
              14

            
	 	 
	
              ARTICLE
                II THE CREDITS

            	
              14

            
	
              SECTION
                2.01. Letters of Credit.

            	
              14

            
	
              SECTION
                2.02. Issuance and Administration of Syndicated Letters of
                Credit.

            	
              18

            
	
              SECTION
                2.03. Reimbursement for LC Disbursements, Cover, Etc.

            	
              18

            
	
              SECTION
                2.04. Loans

            	
              22

            
	
              SECTION
                2.05. Notice of Borrowings

            	
              23

            
	
              SECTION
                2.06. Funding of Loans

            	
              23

            
	
              SECTION
                2.07. Evidence of Loans

            	
              24

            
	
              SECTION
                2.08. Maturity of Loans

            	
              25

            
	
              SECTION
                2.09. Interest Rates of Loans

            	
              25

            
	
              SECTION
                2.10. Fees.

            	
              26

            
	
              SECTION
                2.11. Termination, Reduction or Increase of Commitments

            	
              27

            
	
              SECTION
                2.12. Optional Prepayments

            	
              29

            
	
              SECTION
                2.13. Payments Generally; Pro Rata Treatment

            	
              29

            
	
              SECTION
                2.14. Funding Losses

            	
              30

            
	
              SECTION
                2.15. Computation of Interest and Fees

            	
              31

            
	
              SECTION
                2.16. Extension of Commitment Termination Date

            	
              31

            
	
              SECTION
                2.17. Replacement of Banks; Fronted Letters of Credit; Obligations
                of
                Non-NAIC Approved Banks

            	
              32

            
	 	 
	
              ARTICLE
                III CONDITIONS

            	
              35

            
	
              SECTION
                3.01. Each Credit Extension

            	
              35

            
	
              SECTION
                3.02. Effectiveness

            	
              35

            
	 	 
	
              ARTICLE
                IV REPRESENTATIONS AND WARRANTIES

            	
              37

            
	
              SECTION
                4.01. Corporate Existence and Power

            	
              37

            
	
              SECTION
                4.02. Corporate and Governmental Authorization;
                Contravention

            	
              37

            
	
              SECTION
                4.03. Binding Effect

            	
              37

            
	
              SECTION
                4.04. Financial Information

            	
              38

            
	
              SECTION
                4.05. Litigation

            	
              39

            
	
              SECTION
                4.06. Compliance with ERISA

            	
              39

            
	
              SECTION
                4.07. Taxes

            	
              39

            
	
              SECTION
                4.08. Subsidiaries

            	
              39

            

    

    

      

    

    
      
        1
          The
          Table of Contents is not a part of this Agreement.

      

    

    
      
         

      

      
        -i-

        
          

        

      

      
         

      

    

    
      	
              SECTION
                4.09. Not an Investment Company

            	
              39

            
	
              SECTION
                4.10. Obligations to be Pari Passu

            	
              40

            
	
              SECTION
                4.11. No Default

            	
              40

            
	
              SECTION
                4.12. Restricted Subsidiaries

            	
              40

            
	
              SECTION
                4.13. Environmental Matters

            	
              40

            
	
              SECTION
                4.14. Full Disclosure

            	
              40

            
	
              SECTION
                4.15. Separate Representations of Subsidiary Account
                Parties

            	
              40

            
	 	 
	
              ARTICLE
                V COVENANTS

            	
              42

            
	
              SECTION
                5.01. Information

            	
              42

            
	
              SECTION
                5.02. Payment of Obligations

            	
              44

            
	
              SECTION
                5.03. Conduct of Business and Maintenance of Existence

            	
              45

            
	
              SECTION
                5.04. Maintenance of Property; Insurance

            	
              45

            
	
              SECTION
                5.05. Compliance with Laws

            	
              45

            
	
              SECTION
                5.06. Inspection of Property, Books and Records

            	
              45

            
	
              SECTION
                5.07. Minimum Adjusted Consolidated Net Worth

            	
              46

            
	
              SECTION
                5.08. Negative Pledge

            	
              46

            
	
              SECTION
                5.09. Consolidations, Mergers and Sales of Assets

            	
              46

            
	
              SECTION
                5.10. Use of Credit

            	
              46

            
	
              SECTION
                5.11. Obligations to be Pari Passu

            	
              47

            
	
              SECTION
                5.12. Termination of Jefferson-Pilot Credit Facility

            	
              47

            
	 	 
	
              ARTICLE
                VI DEFAULTS

            	
              47

            
	
              SECTION
                6.01. Events of Default

            	
              47

            
	
              SECTION
                6.02. Notice of Default

            	
              51

            
	 	 
	
              ARTICLE
                VII THE ADMINISTRATIVE AGENT

            	
              51

            
	
              SECTION
                7.01. Appointment and Authorization

            	
              51

            
	
              SECTION
                7.02. Agent's Fee

            	
              51

            
	
              SECTION
                7.03. Agent and Affiliates

            	
              51

            
	
              SECTION
                7.04. Action by Agent

            	
              51

            
	
              SECTION
                7.05. Consultation with Experts

            	
              52

            
	
              SECTION
                7.06. Liability of Agent

            	
              52

            
	
              SECTION
                7.07. Indemnification

            	
              52

            
	
              SECTION
                7.08. Credit Decision

            	
              53

            
	
              SECTION
                7.09. Successor Agent

            	
              53

            
	
              SECTION
                7.10. Delegation to Affiliates

            	
              53

            
	
              SECTION
                7.11. Joint Lead Arrangers and Other Agents

            	
              53

            
	 	 
	
              ARTICLE
                VIII CHANGE IN CIRCUMSTANCES

            	
              54

            
	
              SECTION
                8.01. Basis for Determining Interest Rate Inadequate or
                Unfair

            	
              54

            
	
              SECTION
                8.02. Illegality

            	
              54

            
	
              SECTION
                8.03. Increased Cost and Reduced Return

            	
              55

            
	
              SECTION
                8.04. Base Rate Loans Substituted for Affected Euro-Dollar
                Loans

            	
              56

            
	
              SECTION
                8.05. Taxes

            	
              57

            
	
              SECTION
                8.06. Regulation D Compensation

            	
              59

            

    

     

    
      
         

      

      
        -ii-

        
          

        

      

      
         

      

    

    
      	 	 
	
              ARTICLE
                IX GUARANTY

            	
              60

            
	
              SECTION
                9.01. The Guaranty

            	
              60

            
	
              SECTION
                9.02. Guaranty Unconditional

            	
              60

            
	
              SECTION
                9.03. Discharge Only Upon Payment In Full; Reinstatement In Certain
                Circumstances

            	
              61

            
	
              SECTION
                9.04. Waiver by the Company

            	
              61

            
	
              SECTION
                9.05. Subrogation

            	
              62

            
	 	 
	
              ARTICLE
                X MISCELLANEOUS

            	
              62

            
	
              SECTION
                10.01. Notices

            	
              62

            
	
              SECTION
                10.02. No Waivers

            	
              63

            
	
              SECTION
                10.03. Expenses; Indemnification; Non-Liability of Banks

            	
              63

            
	
              SECTION
                10.04. Sharing of Set-Offs

            	
              63

            
	
              SECTION
                10.05. Amendments and Waivers

            	
              64

            
	
              SECTION
                10.06. Successors and Assigns

            	
              65

            
	
              SECTION
                10.07. Collateral

            	
              66

            
	
              SECTION
                10.08. New York Law

            	
              66

            
	
              SECTION
                10.09. Judicial Proceedings

            	
              67

            
	
              SECTION
                10.10. Counterparts; Integration

            	
              68

            
	
              SECTION
                10.11. Confidentiality

            	
              68

            
	
              SECTION
                10.12. WAIVER OF JURY TRIAL

            	
              68

            
	
              SECTION
                10.13. Joinder and Termination of Subsidiary Account Party

            	
              69

            
	
              SECTION
                10.14. USA PATRIOT Act

            	
              69

            

    

    

    
      
         

      

      
        -iii-

        
          

        

      

      
         

      

    

    
      	
              Schedule
                I

            	
              Commitments

            
	
              Schedule
                II

            	
              List
                of Restricted Subsidiaries

            
	 	 
	
              EXHIBIT
                A

            	
              Form
                of Note

            
	
              EXHIBIT
                B

            	
              Opinion
                of Dennis L. Schoff, Esq., General Counsel of the
                Company

            
	
              EXHIBIT
                C

            	
              Opinion
                of Milbank, Tweed, Hadley & McCloy LLP, Special New York Counsel to
                JPMCB

            
	
              EXHIBIT
                D

            	
              Form
                of Assignment and Assumption

            
	
              EXHIBIT
                E

            	
              Form
                of Confirming Bank Agreement

            
	
              EXHIBIT
                F

            	
              Form
                of Subsidiary Joinder Agreement

            
	
              EXHIBIT
                G

            	
              Subsidiary
                Termination Notice

            

    

    

    
      
         

      

    

    
      
         

      

      
        -iv-

        
          

        

      

      
         

      

    

     

    FIFTH
      AMENDED AND RESTATED CREDIT AGREEMENT dated as of March 10, 2006 among: LINCOLN
      NATIONAL CORPORATION, the SUBSIDIARY ACCOUNT PARTIES party hereto, the BANKS
      party hereto and JPMORGAN CHASE BANK, N.A., as Administrative
      Agent.

     

    The
      Company, certain Subsidiary Account Parties, the banks party thereto and JPMCB,
      as Administrative Agent, are parties to the Fourth Amended and Restated Letter
      of Credit and Reimbursement Agreement dated as of December 10, 2004 (as amended
      and in effect immediately prior to the effectiveness of this Agreement, the
      "Existing
      Credit Agreement").

     

    The
      Company and the Subsidiary Account Parties desire to amend the Existing Credit
      Agreement in certain respects and to restate in its entirety the Existing Credit
      Agreement as so amended, and in that connection the Account Parties have
      requested that the Banks issue letters of credit for their account and the
      Company has requested that the Banks make loans to it in an aggregate face
      or
      principal amount not exceeding $1,500,000,000 at any one time outstanding,
      and
      the Banks are prepared to issue such letters of credit and make such loans
      upon
      the terms and conditions hereof. Accordingly, the parties hereto agree to amend
      and restate the Existing Credit Agreement in its entirety, and otherwise agree,
      as follows:

     

     

    ARTICLE
      I

     

    DEFINITIONS

     

    SECTION
      1.01. Definitions.
      The
      following terms, as used herein, have the following meanings:

     

    "Account
      Party"
      means
      any of the Company and the Subsidiary Account Parties, as the context may
      require, and "Account
      Parties"
      means
      all of the foregoing.

     

    "Additional
      Commitment Bank"
      means
      (a) a Bank or (b) any other Person which is a NAIC Approved Bank, in each case
      that agrees to provide a Commitment or (in the case of a Bank) agrees to
      increase the amount of its Commitment pursuant to Section 2.11(c) or Section
      2.16, with the consent of the Administrative Agent (such consent not to be
      unreasonably withheld).

     

    "Adjusted
      Consolidated Net Worth"
      means,
      at any date, the sum of (a) the consolidated shareholders' equity of the Company
      and its Consolidated Subsidiaries, plus
      (without
      duplication) (b) the aggregate amount of Instruments, to the extent given equity
      credit by S&P and/or Moody's; provided
      that (i)
      in the case such Instruments are given equity credit by both S&P and
      Moody's, the higher of the two amounts shall apply for purposes of clause (b)
      above and (ii) the amount of accumulated other comprehensive income (or loss),
      as shown on the relevant consolidated balance sheet of the Company and its
      Consolidated Subsidiaries most recently filed with the Securities and Exchange
      Commission, shall be excluded from "Adjusted Consolidated Net
      Worth".

     

    
      
        Credit
          Agreement

         

      

      
        -2-

        
          

        

      

      
         

      

    

    "Administrative
      Agent"
      means
      JPMCB, in its capacity as agent for the Banks hereunder, and its successors
      in
      such capacity.

     

    "Administrative
      Questionnaire"
      means,
      with respect to each Bank, an administrative questionnaire in the form prepared
      by the Administrative Agent and submitted to the Administrative Agent (with
      a
      copy to the Company) duly completed by such Bank.

     

    "Affiliate"
      of any
      Person means any other Person directly or indirectly controlling, controlled
      by
      or under common control with such Person. A Person shall be deemed to control
      another Person if the controlling Person owns 10% or more of any class of voting
      securities (or other ownership interests) of the controlled Person or possesses,
      directly or indirectly, the power to direct or cause the direction of the
      management or policies of the controlled Person, whether through ownership
      of
      stock, by contract or otherwise.

     

    "Agreement"
      means
      this Fifth Amended and Restated Credit Agreement, as it may be amended or
      modified and in effect from time to time.

     

    "Applicable
      Additional Margin"
      means
      0.05% per annum.

     

    "Applicable
      Lending Office"
      means,
      as to each Bank, its office, branch or Affiliate located at its address set
      forth in its Administrative Questionnaire or such other office, branch or
      Affiliate of such Bank as it may hereafter designate as its Applicable Lending
      Office for purposes hereof by notice to the Company and the Administrative
      Agent.

     

    "Applicable
      Facility Fee Rate",
      "Applicable
      Letter of Credit Commission"
      and
      "Applicable
      Margin"
      means,
      for any day, with respect to the facility fees payable hereunder or with respect
      to the letter of credit fees payable under Section 2.10(b) or with respect
      to
      the interest margin on any Euro-Dollar Loan, as the case may be, the applicable
      rate per annum set forth below under the caption "Applicable Facility Fee Rate",
      "Applicable Letter of Credit Commission" or "Applicable Margin", respectively,
      based upon the ratings by Moody's and S&P, respectively, applicable on such
      date to the Index Debt:

     

    
      
        Credit
          Agreement

         

      

      
        -3-

        
          

        

      

      
         

      

    

    
      	 	
              Index
                Debt Ratings

              (S&P/

              Moody's)

               

            	
              Applicable
                Facility Fee Rate

               

            	
               

               

               

               

               

               

              Applicable
                Letter of Credit Commission

               

            	
               

               

               

               

               

               

              Applicable
                Margin

               

            
	
              Category
                1

            	
              >
                A+
                / A1

            	
              0.04%

            	
              0.11%

            	
              0.11%

            
	
              Category
                2

            	
              A
                /
                A2

            	
              0.045%

            	
              0.125%

            	
              0.125%

            
	
              Category
                3

            	
              A-
                / A3

            	
              0.05%

            	
              0.15%

            	
              0.15%

            
	
              Category
                4

            	
              BBB+
                / Baa1

            	
              0.06%

            	
              0.19%

            	
              0.19%

            
	
              Category
                5

            	
              <
                BBB / Baa2

            	
              0.07%

            	
              0.28%

            	
              0.28%

            

    

    

    For
      purposes of the foregoing, (a) if the ratings established or deemed to have
      been established by Moody's and S&P for the Index Debt shall fall within
      different Categories that are one Category apart, the Applicable Facility Fee
      Rate, the Applicable Letter of Credit Commission and the Applicable Margin
      shall
      be determined by reference to the Category of the higher of the two ratings;
      (b) if the ratings established or deemed to have been established by
      Moody's and S&P for the Index Debt shall fall within different Categories
      that are more than one Category apart, the Applicable Facility Fee Rate, the
      Applicable Letter of Credit Commission and the Applicable Margin shall be
      determined by reference to the Category next below that of the higher of the
      two
      ratings; (c) if only one of Moody's and S&P shall have in effect a
      rating for the Index Debt, the Applicable Facility Fee Rate, the Applicable
      Letter of Credit Commission and the Applicable Margin shall be determined by
      reference to the Category of such rating; (d) if neither Moody's nor
      S&P shall have in effect a rating for the Index Debt (other than by reason
      of the circumstances referred to in the last sentence of this definition),
      then
      the applicable rating shall be determined by reference to Category 5; and
      (e) if the ratings established or deemed to have been established by
      Moody's and S&P for the Index Debt shall be changed (other than as a result
      of a change in the rating system of Moody's or S&P), such change shall be
      effective as of the date on which it is first announced by the applicable rating
      agency, irrespective of when notice of such change shall have been furnished
      by
      the Company to the Administrative Agent and the Banks pursuant to Section 5.01
      or otherwise. Each change in the Applicable Facility Fee Rate, the Applicable
      Letter of Credit Commission and the Applicable Margin shall apply during the
      period commencing on the effective date of such change and ending on the date
      immediately preceding the effective date of the next such change. If the rating
      system of Moody's or S&P shall change, or if either such rating agency shall
      cease to be in the business of rating corporate debt obligations, the Company
      and the Banks shall negotiate in good faith to amend this definition to reflect
      such changed rating system or the unavailability of ratings from such rating
      agency and, pending the effectiveness of any such amendment, the Applicable
      Facility Fee Rate, the Applicable Letter of Credit Commission and the Applicable
      Margin shall be determined by reference to the rating of Moody's and/or S&P,
      as the case may be, most recently in effect prior to such change or
      cessation.

     

    
      
        Credit
          Agreement

         

      

      
        -4-

        
          

        

      

      
         

      

    

    "Applicable
      Percentage"
      means,
      with respect to any Bank, the percentage of the total Commitments represented
      by
      such Bank's Commitment. If the Commitments have terminated or expired, the
      Applicable Percentages shall be determined based upon the Commitments most
      recently in effect, giving effect to any assignments.

     

    "Assignee"
      has the
      meaning set forth in Section 10.06(c).

     

    "Assignment
      and Assumption"
      means
      an assignment and assumption entered into by a Bank and an assignee (with the
      consent of any party whose consent is required by Section 10.06), and
      accepted by the Administrative Agent, in the form of Exhibit D or any other
      form
      approved by the Administrative Agent.

     

    "Bank"
      means
      each Person listed under the caption "BANKS" on the signature pages hereof,
      and
      each other Person that shall become a party hereto as a Bank pursuant to this
      Agreement (other than any such Person that ceases to be a Bank by means of
      assignment pursuant to this Agreement), together with its successors. For
      purposes of clarification, the term "Bank" shall include each Fronting Issuing
      Bank.

     

    "Base
      Rate"
      means,
      for any day, a rate per annum equal to the higher of (i) the Prime Rate for
      such
      day and (ii) the sum of 1/2 of 1% plus
      the
      Federal Funds Rate for such day.

     

    "Base
      Rate Loan"
      means a
      Loan to be made by a Bank pursuant to Section 2.04 as a Base Rate Loan in
      accordance with the applicable Notice of Borrowing or Article VIII.

     

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

     

    "Borrowing"
      has the
      meaning set forth in Section 1.03.

     

    
      
        Credit
          Agreement

         

      

      
        -5-

        
          

        

      

      
         

      

    

    "Code"
      means
      the Internal Revenue Code of 1986, as amended, or any successor
      statute.

     

    "Collateral
      Account"
      has the
      meaning set forth in Section 2.03(e).

     

    "Commitment"
      means,
      with respect to any Bank, the commitment of such Bank (a) to issue Letters
      of
      Credit under Section 2.01(a) and to acquire participations in Fronted Letters
      of
      Credit (if any) and/or (b) to make Loans hereunder, in each case expressed
      as an
      amount representing the maximum aggregate amount of such Bank's Credit Exposure
      hereunder, as such commitment may be (i) reduced or increased from time to
      time pursuant to this Agreement (including pursuant to assignments by or to
      such
      Bank pursuant to Section 10.06). The initial amount of each Bank's
      Commitment is set forth on Schedule I or in the Assignment and Assumption
      or other instrument executed and delivered hereunder pursuant to which such
      Bank
      shall have assumed its Commitment, as applicable. The initial aggregate amount
      of the Banks' Commitments is $1,500,000,000.

     

    "Commitment
      Availability Period"
      means
      the period from and including the Effective Date to but excluding earlier of
      the
      Commitment Termination Date and the date of termination of the
      Commitments.

     

    "Commitment
      Termination Date"
      means
      (a) March 10, 2011 or, if such day is not a Euro-Dollar Business Day, the next
      preceding Euro-Dollar Business Day or (b) with respect to any Bank the
      Commitment of which has been extended pursuant to Section 2.16, the date to
      which such Commitment has been so extended.

     

    "Commitment
      Utilization Day"
      means
      (a) any day on which the aggregate principal amount of outstanding Loans equals
      or exceeds 50% of the aggregate amount of the Commitments and (b) any day
      following the termination of the Commitments on which any Loans are outstanding
      hereunder.

     

    "Company"
      means
      Lincoln National Corporation, an Indiana corporation, and its
      successors.

     

    "Company's
      2004 Form 10-K"
      means
      the Company's annual report on Form 10-K for 2004, as filed with the Securities
      and Exchange Commission pursuant to the Securities Exchange Act of 1934, as
      amended.

     

    "Confirming
      Bank"
      means,
      with respect to any Bank, any other bank that has agreed, by delivery of a
      confirming bank agreement in substantially the form of Exhibit E (a
      "Confirming
      Bank Agreement"),
      that
      such other bank will itself honor the obligations of such Bank in respect of
      a
      draft complying with the terms of a Letter of Credit as if, and to the extent,
      such other bank were the "Issuing Bank" named in such Letter of
      Credit.

     

    
      
        Credit
          Agreement

         

      

      
        -6-

        
          

        

      

      
         

      

    

    "Confirming
      Bank Agreement"
      has the
      meaning set forth in the definition of "Confirming Bank".

     

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

     

    "Credit
      Documents"
      means
      (a) this Agreement, (b) the Notes, (c) with respect to any Subsidiary Account
      Party, the Subsidiary Joinder Agreement to which it is a party and (d) with
      respect to any Letter of Credit, collectively, any application therefor and
      any
      other agreements, instruments, guarantees or other documents (whether general
      in
      application or applicable only to such Letter of Credit) governing or providing
      for (i) the rights and obligations of the parties concerned or at risk with
      respect to such Letter of Credit or (ii) any collateral security for any of
      such obligations, each as the same may be modified and supplemented and in
      effect from time to time.

     

    "Credit
      Exposure"
      means,
      with respect to any Bank at any time, the sum of (a) the aggregate principal
      amount of such Bank's Loans and (b) the aggregate amount of such Bank's LC
      Exposure, in each case, outstanding at such time.

     

    "Debt"
      of any
      Person means at any date, without duplication, (a) all obligations of such
      Person for borrowed money, (b) all obligations of such Person evidenced by
      bonds, debentures, notes or other similar instruments, (c) 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, (d) all
      obligations of such Person as lessee under capital leases, (e) all
      non-contingent obligations of such Person to reimburse any bank or other Person
      in respect of amounts paid under a letter of credit or similar instrument,
      (f)
      all Debt of others secured by a Lien on any asset of such Person, whether or
      not
      such Debt is assumed by such Person, and (g) all Debt of others Guaranteed
      by
      such Person (it being understood that the definition of "Debt" does not include
      any obligations of such Person (i) to purchase securities (or other property)
      which arise out of or in connection with the sale of the same or substantially
      similar securities (or other property) or (ii) to return collateral consisting
      of securities arising out of or in connection with the loan of the same or
      substantially similar securities).

     

    "Default"
      means
      any condition or event which constitutes an Event of Default or which with
      the
      giving of notice or lapse of time or both would, unless cured or waived, become
      an Event of Default.

     

    "Derivative
      Financial Products"
      of any
      Person means all obligations (including whether pursuant to any master agreement
      or any particular agreement or transaction) of such Person in respect of any
      rate swap transaction, basis swap, forward rate transaction, interest rate
      future, commodity swap, commodity option, equity or equity index swap, equity
      or
      equity index option, bond option, interest rate option, foreign exchange
      transaction, cap transaction, floor transaction, collar transaction, currency
      swap transaction, cross-currency rate swap transaction, currency future,
      currency option or any other similar transaction (including any option with
      respect to any of the foregoing) or any combination thereof.

     

    
      
        Credit
          Agreement

         

      

      
        -7-

        
          

        

      

      
         

      

    

    "Dollars"
      and the
      sign "$"
      means
      lawful money in the United States of America.

     

    "Domestic
      Business Day"
      means
      any day except a Saturday, Sunday or other day on which commercial banks in
      New
      York City are authorized by law to close.

     

    "Effective
      Date"
      means
      the date this Agreement becomes effective in accordance with
      Section 3.02.

     

    "Environmental
      Laws"
      means
      any and all federal, state, local and foreign statutes, laws, regulations,
      ordinances, rules, judgments, orders, decrees, permits, concessions, grants,
      franchises, licenses, agreements or other governmental restrictions relating
      to
      the environment or to emissions, discharges or releases of pollutants,
      contaminants, petroleum or petroleum products, chemicals or industrial, toxic
      or
      hazardous substances or wastes into the environment including, without
      limitation, ambient air, surface water, ground water or land, or otherwise
      relating to the manufacture, processing, distribution, use, treatment, storage,
      disposal, transport or handling of pollutants, contaminants, petroleum or
      petroleum products, chemicals or industrial, toxic or hazardous substances
      or
      wastes or the clean-up or other remediation thereof.

     

    "ERISA"
      means
      the Employee Retirement Income Security Act of 1974, as amended, or any
      successor statute.

     

    "ERISA
      Group"
      means
      the Company and all members of a controlled group of corporations and all trades
      or businesses (whether or not incorporated) under common control which, together
      with the Company, are treated as a single employer under Section 414(b) or
      414(c) of the Code.

     

    "Euro-Dollar
      Business Day"
      means
      any Domestic Business Day on which commercial banks are open for international
      business (including dealings in Dollar deposits) in London.

     

    "Euro-Dollar
      Loan"
      means a
      Loan to be made by a Bank pursuant to Section 2.04 as a Euro-Dollar Loan in
      accordance with the applicable Notice of Borrowing.

     

    
      
        Credit
          Agreement

         

      

      
        -8-

        
          

        

      

      
         

      

    

    "Euro-Dollar
      Reserve Percentage"
      means,
      for any day, that percentage (expressed as a decimal) which is in effect on
      such
      day, as prescribed by the Board of Governors of the Federal Reserve System
      (or
      any successor) for determining the maximum reserve requirement for a member
      bank
      of the Federal Reserve System in New York City with deposits exceeding five
      billion dollars in respect of "Eurocurrency liabilities" (or in respect of
      any
      other category of liabilities which includes deposits by reference to which
      the
      interest rate on Euro-Dollar Loans is determined or any category of extensions
      of credit or other assets which includes loans by a non-United States office
      of
      any Bank to United States residents).

     

    "Event
      of Default"
      has the
      meaning set forth in Section 6.01.

     

    "Existing
      Credit Agreement"
      has the
      meaning set forth in the second paragraph of this Agreement.

     

    "FASB"
      means
      the Financial Accounting Standards Board or any entity or body succeeding to
      any
      or all of its functions.

     

    "Federal
      Funds Rate"
      means,
      for any day, the rate per annum (rounded upward, if necessary, to the nearest
      1/100th of 1%) equal to the weighted average of the rates on overnight Federal
      funds transactions with members of the Federal Reserve System arranged by
      Federal funds brokers on such day, as published by the Federal Reserve Bank
      of
      New York on the Domestic Business Day next succeeding such day, provided
      that
      (i) if such day is not a Domestic Business Day, the Federal Funds Rate for
      such day shall be such rate on such transactions on the next preceding Domestic
      Business Day as so published on the next succeeding Domestic Business Day,
      and
      (ii) if no such rate is so published on such next succeeding Domestic
      Business Day (as provided in clause (i)), the Federal Funds Rate for such
      day shall be the average rate quoted to the Person serving as Administrative
      Agent on such day on such transactions as determined by the Administrative
      Agent.

     

    "Fronted
      Letter of Credit"
      has the
      meaning set forth in Section 2.17(c).

     

    "Fronting
      Issuing Bank"
      has the
      meaning set forth in Section 2.17(c).

     

    "Guarantee"
      by any
      Person means any obligation, contingent or otherwise, of such Person directly
      or
      indirectly guaranteeing any Debt 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 (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 purpose of assuring in any other manner
      the obligee of such Debt 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. The term "Guarantee" used as a verb has a
      corresponding meaning.

     

    
      
        Credit
          Agreement

         

      

      
        -9-

        
          

        

      

      
         

      

    

    "Guarantor"
      means
      the Company in its capacity as guarantor of the obligations of each other
      Account Party pursuant to the provisions of Article IX.

     

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

     

    "Instruments"
      means
      Securities that are given equity credit by S&P or Moody's (and as to which
      the Company shall have provided evidence of such credit to the Administrative
      Agent), provided
      that the
      term "Instruments" shall exclude any Securities that are recorded in the
      shareholder's equity section of the consolidated balance sheet of the Company
      and its Consolidated Subsidiaries most recently filed with the Securities and
      Exchange Commission.

     

    "Insurance
      Subsidiary"
      means
      any Restricted Subsidiary which is subject to the regulation of, and is required
      to file statements with, any governmental body, agency or official in any State
      or territory of the United States or the District of Columbia which regulates
      insurance companies or the doing of an insurance business therein.

     

    "Interest
      Period"
      means,
      with respect to each Euro-Dollar Borrowing, the period commencing on the date
      of
      such Borrowing and ending one week or one, two, three or six months thereafter,
      as the Company may elect in the applicable Notice of Borrowing; provided
      that:

     

    (a) any
      Interest Period which would otherwise end on a day which is not a Euro-Dollar
      Business Day shall be extended to the next succeeding Euro-Dollar Business
      Day
      unless such Euro-Dollar Business Day falls in another calendar month, in which
      case such Interest Period shall end on the next preceding Euro-Dollar Business
      Day;

     

    (b) any
      Interest Period which begins on the last Euro-Dollar 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
      Euro-Dollar Business Day of a calendar month; and

     

    (c) any
      Interest Period which begins before the Commitment Termination Date and would
      otherwise end after the Commitment Termination Date shall end on the Commitment
      Termination Date (provided
      that, if
      at any time there shall exist different Commitment Termination Dates for the
      Banks hereunder, such Interest Period shall not end after the latest applicable
      Commitment Termination Date).

     

    
      
        Credit
          Agreement

         

      

      
        -10-

        
          

        

      

      
         

      

    

    "Investment"
      means
      any investment in any Person, whether by means of share purchase, capital
      contribution, loan, time deposit or otherwise.

     

    "Jefferson-Pilot
      Acquisition"
      means
      the acquisition by the Company or any of its Subsidiaries of Jefferson-Pilot
      Corporation by way of merger of Jefferson-Pilot Corporation with and into a
      wholly-owned Subsidiary of the Company.

     

    "JPMCB"
      means
      JPMorgan Chase Bank, N.A.

     

    "LC
      Disbursement"
      means a
      payment made by a Bank pursuant to a Letter of Credit.

     

    "LC Exposure"
      means,
      at any time, the sum of (a) the aggregate undrawn amount of all outstanding
      Letters of Credit at such time plus
      (b) the aggregate amount of all LC Disbursements under Letters of Credit
      that have not yet been reimbursed by or on behalf of the Account Parties at
      such
      time. The LC Exposure of any Bank shall at any time be its Applicable
      Percentage of the total LC Exposure at such time.

     

    "Letters
      of Credit"
      means
      letters of credit issued under Section 2.01 or Section 2.17.

     

    "LIBO
      Rate"
      has the
      meaning set forth in Section 2.09(b).

     

    "Lien"
      means,
      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, the Company or any Subsidiary shall be deemed to own subject to
      a
      Lien any asset which it has acquired or beneficially 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.

     

    "Loan"
      means a
      Base Rate Loan or a Euro-Dollar Loan and "Loans" means Base Rate Loans or
      Euro-Dollar Loans or any combination of the foregoing.

     

    "Material
      Adverse Effect"
      means a
      material adverse effect on (a) business, financial condition, results of
      operations or prospects of the Company and its Consolidated Subsidiaries, taken
      as a whole, (b) the ability of any Account Party to perform any material
      obligations under the Credit Documents or (c) the material rights and remedies
      of the Banks under the Credit Documents.

     

    "Material
      Subsidiary"
      means
      any Subsidiary of the Company with assets of $150,000,000 or more.

     

    
      
        Credit
          Agreement

         

      

      
        -11-

        
          

        

      

      
         

      

    

    "Moody's"
      means
      Moody's Investors Service, Inc.

     

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

     

    "NAIC"
      means
      the National Association of Insurance Commissioners and any successor
      thereto.

     

    "NAIC
      Approved Bank"
      means
      (a) any Bank that is a bank listed on the most current "Bank List" of banks
      approved by the NAIC (the "NAIC
      Approved Bank List")
      or
      (b) any Bank as to which its Confirming Bank is a bank listed on the NAIC
      Approved Bank List.

     

    "NAIC
      Approved Bank List"
      has the
      meaning set forth in the definition of "NAIC Approved Bank".

     

    "Newly
      Acquired Subsidiary"
      means
      any Subsidiary that is not a Subsidiary on the date hereof but that becomes
      a
      Subsidiary after the date hereof, but only during the 180 days after the first
      date on which such Subsidiary became a Subsidiary.

     

    "Non-NAIC
      Approved Bank"
      means
      at any time any Bank that is not a NAIC Approved Bank.

     

    "Notes"
      means a
      promissory note or notes of the Company, substantially in the form of Exhibit
      A
      hereto, evidencing the obligation of the Company to repay the Loans made to
      it
      hereunder, and "Note" means any one of such promissory notes issued
      hereunder.

     

    "Notice
      of Borrowing"
      has the
      meaning set forth in Section 2.05.

     

    "Parent"
      means,
      with respect to any Bank, any Person controlling such Bank.

     

    "Participant"
      has the
      meaning set forth in Section 10.06(b).

     

    "Payment
      Account"
      means
      an account designated by the Administrative Agent in a notice to the Account
      Parties and the Banks to which payments hereunder are to be made.

     

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

     

    
      
        Credit
          Agreement

         

      

      
        -12-

        
          

        

      

      
         

      

    

    "Person"
      means
      an individual, a corporation, a partnership, an association, a trust or any
      other entity or organization, including a government or political subdivision
      or
      an agency or instrumentality thereof.

     

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

     

    "Prime
      Rate"
      means
      the rate of interest publicly announced from time to time by JPMCB as its prime
      rate as in effect at its principal office in New York City; each change in
      the
      Prime Rate shall be effective from and including the date such change is
      publicly announced as being effective.

     

    "Quarterly
      Dates"
      means
      the last day of March, June, September and December in each year, the first
      of which shall be the first such day after the date hereof.

     

    "Regulations
      T, U and X"
      means
      Regulations T, U and X, respectively, of the Board of Governors of the Federal
      Reserve System, in each case as in effect from time to time.

     

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

     

    "Required
      Banks"
      means
      at any time Banks having Commitments representing more than 50% of the aggregate
      amount of the Commitments at such time; provided
      that, if
      the Commitments have expired or been terminated or if at any time following
      an
      extension of the Commitment Termination Date pursuant to Section 2.16 the
      Commitment of any non-extending Bank or Banks thereunder shall have terminated,
      "Required Banks" means Banks having more than 50% of the aggregate amount of
      the
      Credit Exposures of the Banks at such time.

     

    "Restricted
      Subsidiary"
      means,
      as of any date, a Subsidiary which meets the definitional requirements of a
      "significant subsidiary", as such term is defined in the rules set forth in
      Regulation S-X under the Securities Exchange Act of 1934, as amended (applying
      the tests set forth in such rules with reference to the consolidated balance
      sheets and related consolidated statements of income of the Company and its
      Consolidated Subsidiaries as of the last day of its most recently completed
      fiscal quarter and for the twelve-month period then ended).

     

    "S&P"
      means
      Standard and Poor's Ratings Services.

     

    
      
        Credit
          Agreement

         

      

      
        -13-

        
          

        

      

      
         

      

    

    "Secured
      Obligations"
      has the
      meaning set forth in Section 2.03(e).

     

    "Securities"
      means
      any stock, share, partnership interest, membership interest in a limited
      liability company, voting trust certificate, certificate of interest or
      participation in any profit-sharing agreement or arrangement, option, warrant,
      bond, debenture, note, or other evidence of indebtedness, secured or unsecured,
      convertible, subordinated or otherwise, or in general any instruments commonly
      known as "securities" or any certificates of interest, shares or participations
      in temporary or interim certificates for the purchase or acquisition of, or
      any
      right to subscribe to, purchase or acquire, any of the foregoing.

     

    "Subsidiary"
      means
      any corporation or other entity of which securities or other ownership interests
      having ordinary voting power to elect a majority of the board of directors
      or
      other persons performing similar functions are at the time directly or
      indirectly owned by the Company.

     

    "Subsidiary
      Account Parties"
      means
      each Subsidiary of the Company that is listed on the signature pages hereof
      under the caption "SUBSIDIARY ACCOUNT PARTIES" and each other Subsidiary of
      the
      Company that shall become a Subsidiary Account Party pursuant to Section 10.13,
      so long as such Subsidiary shall remain a Subsidiary Account Party
      hereunder.

     

    "Type",
      when
      used in reference to any Loan or Borrowing, refers to whether the Loan is a
      Base
      Rate Loan or a Euro-Dollar Loan.

     

    "Unfunded
      Liabilities"
      means,
      with respect to any Plan at any time, the amount (if any) by which (i) the
      present value of all benefits under such Plan exceeds (ii) the fair market
      value
      of all Plan assets allocable to such benefits (excluding any accrued but unpaid
      contributions), all determined as of the then most recent valuation date for
      such Plan, but only to the extent that such excess represents a potential
      liability of a member of the ERISA Group to the PBGC or any other Person under
      Title IV of ERISA.

     

    "Wachovia"
      means
      Wachovia Bank, National Association.

     

    SECTION
      1.02. Accounting
      Terms and Determinations.
      Unless
      otherwise specified herein, all accounting terms used herein shall be
      interpreted, all accounting determinations hereunder shall be made and all
      financial statements required to be delivered hereunder shall be prepared in
      accordance with generally accepted accounting principles as in effect from
      time
      to time, applied on a basis consistent (except for changes concurred in by
      the
      Company's independent public accountants) with the most recent audited
      consolidated financial statements of the Company and its Consolidated
      Subsidiaries delivered to the Banks; provided
      that if
      the Company notifies the Administrative Agent that the Company wishes to amend
      any covenant in Article V to eliminate the effect of any change in generally
      accepted accounting principles on the operation of such covenant (or if the
      Administrative Agent notifies the Company that the Required Banks wish to amend
      Article V for such purpose), then the Company's compliance with such covenant
      shall be determined on the basis of generally accepted accounting principles
      in
      effect immediately before the relevant change in generally accepted accounting
      principles became effective, until either such notice is withdrawn or such
      covenant is amended in a manner satisfactory to the Company and the Required
      Banks.

     

    
      
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          Agreement

         

      

      
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    SECTION
      1.03. Types
      of Borrowings.
      The
      term "Borrowing" denotes the aggregation of Loans to be made to the Company
      pursuant to Section 2.04 on a single date and for a single Interest Period.
      Borrowings are classified for purposes of this Agreement by reference to the
      pricing of Loans comprising such Borrowing (e.g.,
      a
      "Euro-Dollar Borrowing" is a Borrowing comprised of Euro-Dollar
      Loans).

     

     

    ARTICLE
      II

     

    THE
      CREDITS

     

    SECTION
      2.01. Letters
      of Credit.

     

    (a) General.
      Subject
      to the terms and conditions set forth herein, at the request of any Account
      Party the Banks agree at any time and from time to time during the Commitment
      Availability Period to issue Letters of Credit denominated in Dollars for the
      account of such Account Party that will not result in the aggregate outstanding
      amount of the Credit Exposures of the Banks exceeding the aggregate amount
      of
      the Commitments of the Banks. 

     

    Each
      Letter of Credit shall be a standby letter of credit in such form as the
      relevant Account Party shall request and which (i) the Administrative Agent
      shall determine in good faith does not contain any obligations, or diminish
      any
      rights, of any Bank with respect thereto that are inconsistent with the terms
      hereof or (ii) the Required Banks shall approve. Except as set forth in
      Section 2.17, without the prior consent of each Bank, no Letter of Credit may
      be
      issued that would vary the several and not joint nature of the obligations
      of
      the Banks thereunder, and each Letter of Credit shall be issued by all of the
      Banks having Commitments at the time of issuance as a single multi-bank letter
      of credit, but the obligation of each Bank thereunder shall be several and
      not
      joint, based upon its Applicable Percentage of the aggregate undrawn amount
      of
      such Letter of Credit.

     

    (b) Notice
      of Issuance, Amendment, Renewal or Extension.
      To
      request the issuance of a Letter of Credit (or the amendment, renewal or
      extension of an outstanding Letter of Credit), an Account Party shall hand
      deliver or telecopy (or transmit by electronic communication, if arrangements
      for doing so have been approved by the Administrative Agent) to the
      Administrative Agent (if by hand delivery or telecopy, not later than noon
      (New
      York City time) on the Domestic Business Day prior to, and if by approved
      electronic communication, not later than 10:00 a.m. (New York City time) on
      the
      date of, the requested date of issuance, amendment, renewal or extension) a
      notice requesting the issuance of a Letter of Credit, or identifying the Letter
      of Credit to be amended, renewed or extended, and specifying the date of
      issuance, amendment, renewal or extension, as the case may be (which shall
      be a
      Domestic Business Day), the date on which such Letter of Credit is to expire
      (which shall comply with Section 2.01(d)), the amount of such Letter of
      Credit, the name and address of the beneficiary thereof and the terms and
      conditions of (and such other information as shall be necessary to prepare,
      amend, renew or extend, as the case may be) such Letter of Credit. If requested
      by the Administrative Agent or (in the case of any Fronted Letter of Credit)
      the
      applicable Fronting Issuing Bank through the Administrative Agent, such Account
      Party also shall submit a letter of credit application on standard form of
      the
      Person that is serving as Administrative Agent or such Fronting Issuing Bank,
      as
      applicable, in connection with any request for a Letter of Credit. In the event
      of any inconsistency between the terms and conditions of this Agreement and
      the
      terms and conditions of any form of letter of credit application or other
      agreement submitted by any Account Party to, or entered into by any Account
      Party with, the Person that is serving as Administrative Agent or such Fronting
      Issuing Bank, as applicable, relating to any Letter of Credit, the terms and
      conditions of this Agreement shall control.

     

    
      
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          Agreement

         

      

      
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    If
      any
      Letter of Credit shall provide for the automatic extension of the expiry date
      thereof unless the Administrative Agent or (in the case of any Fronted Letter
      of
      Credit) the applicable Fronting Issuing Bank shall give notice to the
      beneficiary thereof that such expiry date shall not be extended (each such
      Letter of Credit, an "Evergreen
      Letter of Credit"
      and
      such notice, a "Non-Extension
      Notice"),
      then
      the Administrative Agent or such Fronting Issuing Bank, as applicable, will
      give
      a Non-Extension Notice under such Evergreen Letter of Credit if requested to
      do
      so by notice given to the Administrative Agent or such Fronting Issuing Bank
      (through the Administrative Agent), not more than 60 days, and not less than
      45
      days, prior to the current expiry date thereof, by (i) the Required Banks,
      (ii) the applicable Account Party or the Company or (iii) (subject to
      the immediately succeeding sentence) any Bank. 

     

    If
      upon
      or at any time following the Commitment Termination Date with respect to any
      Bank any Evergreen Letter of Credit shall be outstanding, such Bank may give
      notice to the Administrative Agent (with a copy to the Company) requesting
      that
      the Administrative Agent or (in the case of any Fronted Letter of Credit) the
      applicable Fronting Issuing Bank give a Non-Extension Notice under such
      Evergreen Letter of Credit at the next earliest permitted time in accordance
      with the terms thereof, whereupon (subject to the first proviso below) the
      Administrative Agent or (in the case of any Fronted Letter of Credit) the
      applicable Fronting Issuing Bank agrees to give such Non-Extension Notice;
      provided
      that
      prior to the Administrative Agent (or Fronting Issuing Bank, as applicable)
      giving such Non-Extension Notice, the Company may elect by notice to the
      Administrative Agent (or Fronting Issuing Bank, as applicable) that, in lieu
      of
      giving such Non-Extension Notice, (i) in respect of Fronted Letters of Credit,
      no such notice be issued (and the immediately succeeding sentence shall be
      applicable thereto) and (ii) in respect of all other Letters of Credit, the
      Administrative Agent shall, at the same time it would have been required to
      give
      such notice, notify the beneficiary of such Letter of Credit in accordance
      with
      the terms thereof of those Banks whose Commitments have not been terminated
      as
      of such time and such Banks' then respective Applicable Percentages under such
      Letter of Credit, provided
      that
      such election shall not be permitted and no such notification shall be given
      unless, after giving effect thereto, the aggregate outstanding amount of the
      Credit Exposures of such Banks shall not exceed the aggregate amount of the
      Commitments of such Banks. If the Company shall have provided notice under
      clause (i) of the first proviso of the immediately preceding sentence with
      respect to Fronted Letters of Credit, with respect to any outstanding Fronted
      Letter of Credit upon the Commitment Termination Date of any Bank, the
      participation interest of such Bank in each such Fronted Letter of Credit shall
      automatically terminate on the first anniversary of such Commitment Termination
      Date, and the participation interests of those Banks whose Commitments have
      not
      been terminated shall automatically be adjusted to reflect, and each such Bank
      shall have a participation in each such Fronted Letter of Credit equal to,
      such
      Bank’s Applicable Percentage of the aggregate amount available to be drawn under
      such Fronted Letter of Credit on such first anniversary.

     

    
      
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          Agreement

         

      

      
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    (c) Limitations
      on Amounts and Daily Transactions.
      Each
      Letter of Credit shall be issued, amended, renewed or extended if and only
      if
      (and upon such issuance, amendment, renewal or extension of each Letter of
      Credit the Account Parties shall be deemed to represent and warrant that),
      after
      giving effect to such issuance, amendment, renewal or extension, the aggregate
      outstanding amount of the Credit Exposures of the Banks shall not exceed the
      aggregate amount of the Commitments of the Banks.

     

    In
      no
      event may more than 25 issuances, amendments, renewals and/or extensions of
      Letters of Credit occur on any day, unless the Administrative Agent shall
      otherwise agree.

     

    (d) Expiry
      Date.
      Each
      Letter of Credit shall expire at or prior to the close of business on the
      earlier of (i) the date one year after the date of the issuance of such Letter
      of Credit (provided
      that
      such Letter of Credit may contain "evergreen" provisions for the renewal or
      extension thereof to a date one year after the then current expiry date thereof)
      or (ii) the first anniversary of the Commitment Termination Date (or, if at
      any
      time there shall exist different Commitment Termination Dates for the Banks
      hereunder, the first anniversary of the latest applicable Commitment Termination
      Date).

     

    
      
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          Agreement

         

      

      
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    (e) Obligation
      of Banks.
      With
      respect to any Letter of Credit (other than Fronted Letters of Credit), the
      obligation of any Bank under such Letter of Credit shall be several and not
      joint and shall at any time be in an amount equal to such Bank's Applicable
      Percentage of the aggregate undrawn amount of such Letter of Credit, and each
      such Letter of Credit shall expressly so provide.

     

    By
      the
      issuance of a Fronted Letter of Credit (or an amendment to a Fronted Letter
      of
      Credit increasing the amount thereof) by any Fronting Issuing Bank, and without
      any further action on the part of any Fronting Issuing Bank or the Banks, the
      applicable Fronting Issuing Bank hereby grants to each Bank, and each Bank
      hereby acquires from such Fronting Issuing Bank, a participation in such Fronted
      Letter of Credit equal to such Bank's Applicable Percentage of the aggregate
      amount available to be drawn under such Fronted Letter of Credit. Each Bank
      acknowledges and agrees that its obligation to acquire participations in respect
      of Fronted Letters of Credit is absolute and unconditional and shall not be
      affected by any circumstance whatsoever, including any amendment, renewal or
      extension of any Fronted Letter of Credit or the occurrence and continuance
      of a
      Default or reduction or termination of the Commitments. In consideration and
      in
      furtherance of the foregoing, each Bank hereby absolutely and unconditionally
      agrees to pay to the Administrative Agent, for account of the applicable
      Fronting Issuing Bank, such Bank's Applicable Percentage of each LC Disbursement
      made by such Fronting Issuing Bank in respect of any Fronted Letter of Credit
      promptly upon the request of such Fronting Issuing Bank at any time from the
      time such LC Disbursement is made until such LC Disbursement is reimbursed
      by
      the applicable Account Party or at any time after any reimbursement payment
      is
      required to be refunded to such Account Party for any reason. Such payment
      shall
      be made without any offset, abatement, withholding or reduction whatsoever.
      Promptly following receipt by the Administrative Agent of any payment from
      the
      applicable Account Party pursuant to Section 2.03(a) in respect of any Fronted
      Letter of Credit, the Administrative Agent shall distribute such payment to
      the
      applicable Fronting Issuing Bank or, to the extent that the Banks have made
      payments pursuant to this paragraph to reimburse such Fronting Issuing Bank,
      then to the Banks and such Fronting Issuing Bank as their interests may appear.
      Any payment made by a Bank pursuant to this paragraph to reimburse the
      applicable Fronting Issuing Bank for any LC Disbursement shall not relieve
      any Account Party of its obligation to reimburse such
      LC Disbursement.

     

    (f) Adjustment
      of Applicable Percentages.
      Upon
      (i) each addition of a new Bank hereunder and (ii) each increase in or any
      assignment of the Commitment of a Bank pursuant to this Agreement, then (A)
      the
      Administrative Agent shall promptly notify each beneficiary under each
      outstanding Letter of Credit (other than a Fronted Letter of Credit) of the
      Banks that are parties to such Letter of Credit, after giving effect to such
      event, and such Banks' respective Applicable Percentages as of the relevant
      effective date thereof and (B) (in the case of each outstanding Fronted Letter
      of Credit) the participation interest of each Bank therein shall automatically
      be adjusted to reflect, and each Bank shall have a participation in such Fronted
      Letter of Credit equal to, such Bank's Applicable Percentage of the aggregate
      amount available to be drawn under such Fronted Letter of Credit after giving
      effect to such event.

     

    
      
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          Agreement

         

      

      
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    (g) Continuation
      of Existing Letters of Credit.
      As of
      the Effective Date, each of the letters of credit then outstanding under the
      Existing Credit Agreement shall be automatically continued hereunder as a Letter
      of Credit issued under Section 2.01(a), and the Administrative Agent shall
      promptly notify the beneficiary of each such Letter of Credit as to (i) the
      Banks that as of the Effective Date are parties thereto and (ii) such
      Banks' respective Applicable Percentages thereunder.

     

    SECTION
      2.02. Issuance
      and Administration of Syndicated Letters of Credit.
      With
      respect to any Letter of Credit (other than Fronted Letters of Credit), each
      such Letter of Credit shall be executed and delivered by the Administrative
      Agent in the name and on behalf of, and as attorney-in-fact for, the Banks
      party
      to such Letter of Credit, and the Administrative Agent shall act under each
      such
      Letter of Credit, and each such Letter of Credit shall expressly provide that
      the Administrative Agent shall act as the agent of each such Bank to
      (a) receive drafts, other demands for payment and other documents presented
      by the beneficiary under such Letter of Credit, (b) determine whether such
      drafts, demands and documents are in compliance with the terms and conditions
      of
      such Letter of Credit and (c) to notify such Bank, the Company and the
      applicable Account Party that a valid drawing has been made and the date that
      the related LC Disbursement is to be made; provided
      that the
      Administrative Agent shall have no obligation or liability for any LC
      Disbursement under such Letter of Credit, and each such Letter of Credit shall
      expressly so provide. Each Bank hereby irrevocably appoints and designates
      the
      Administrative Agent as its attorney-in-fact, acting through any duly authorized
      officer of the Person that is serving as the Administrative Agent, to execute
      and deliver in the name and on behalf of such Bank each such Letter of Credit
      to
      be issued by the Banks hereunder. Promptly upon the request of the
      Administrative Agent, each Bank will furnish to the Administrative Agent such
      powers of attorney or other evidence as any beneficiary of any such Letter
      of
      Credit may reasonably request in order to demonstrate that the Administrative
      Agent has the power to act as attorney-in-fact for such Bank to execute and
      deliver such Letter of Credit. 

     

    SECTION
      2.03. Reimbursement
      for LC Disbursements, Cover, Etc. 

     

    (a) Reimbursement.
      If any
      Bank shall make any LC Disbursement in respect of any Letter of Credit, the
      Account Party with respect to such Letter of Credit shall reimburse such Bank
      in
      respect of any such LC Disbursement by paying to the Administrative Agent an
      amount equal to such LC Disbursement not later than noon, New York City time,
      on
      (A) the Domestic Business Day that the Company and such Account Party
      receive notice of such LC Disbursement, if such notice is received prior to
      10:00 a.m., New York City time, or (B) the Domestic Business Day
      immediately following the day that the Company and such Account Party receive
      such notice, if such notice is received on a day which is not a Domestic
      Business Day or is not received prior to 10:00 a.m., New York City time, on
      a
      Domestic Business Day.

     

    
      
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          Agreement

         

      

      
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    (b) Reimbursement
      Obligations Absolute.
      The
      Account Parties' obligations to reimburse LC Disbursements as provided in
      Section 2.03(a) shall be absolute, unconditional and irrevocable, and shall
      be performed strictly in accordance with the terms of this Agreement under
      any
      and all circumstances whatsoever and irrespective of (i) any lack of
      validity or enforceability of any Letter of Credit, or any term or provision
      therein, (ii) any draft or other document presented under a Letter of
      Credit proving to be forged, fraudulent or invalid in any respect or any
      statement therein being untrue or inaccurate in any respect, (iii) payment
      under a Letter of Credit against presentation of a draft or other document
      that
      does not comply strictly with the terms of such Letter of Credit, (iv) at any
      time or from time to time, without notice to any Account Party, the time for
      any
      performance of or compliance with any of such reimbursement obligations of
      any
      other Account Party shall be waived, extended or renewed, (v) any of such
      reimbursement obligations of any other Account Party shall be amended or
      otherwise modified in any respect, or the Guarantee of any of such reimbursement
      obligations or any security therefor shall be released, substituted or exchanged
      in whole or in part or otherwise dealt with, (vi) any lien or security interest
      granted to, or in favor of, the Administrative Agent or any of the Banks as
      security for any of such reimbursement obligations shall fail to be perfected,
      (vii) the occurrence of any Default, (viii) the existence of any
      proceedings of the type described in Section 6.01(g) or (h) with respect to
      any other Account Party or the Guarantor of any of such reimbursement
      obligations, (ix) any lack of validity or enforceability of any of such
      reimbursement obligations against any other Account Party or the Guarantor
      of
      any of such reimbursement obligations, or (x) any other event or
      circumstance whatsoever, whether or not similar to any of the foregoing, that
      might, but for the provisions of this Section 2.03, constitute a legal or
      equitable discharge of the obligations of any Account Party
      hereunder.

     

    Neither
      the Administrative Agent nor any Bank nor any of their Related Parties shall
      have any liability or responsibility by reason of or in connection with the
      issuance or transfer of any Letter of Credit or any payment or failure to make
      any payment thereunder (irrespective of any of the circumstances referred to
      in
      the preceding sentence), or any error, omission, interruption, loss or delay
      in
      transmission or delivery of any draft, notice or other communication under
      or
      relating to any Letter of Credit (including any document required to make a
      drawing thereunder), any error in interpretation of technical terms or any
      consequence arising from causes beyond their control; provided
      that the
      foregoing shall not be construed to excuse the Administrative Agent or a Bank
      from liability to any Account Party to the extent of any direct damages (as
      opposed to consequential damages, claims in respect of which are hereby waived
      by the Account Parties to the extent permitted by applicable law) suffered
      by
      any Account Party that are caused by (x) the gross negligence or willful
      misconduct of the Administrative Agent or such Bank, as the case may be, or
      (y)
      in the case of any Bank, its failure to make an LC Disbursement in respect
      of
      any drawing properly made under a Letter of Credit as provided in Section
      2.03(c). The parties hereto expressly agree that:

     

    
      
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          Agreement

         

      

      
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    (i)
      the
      Administrative Agent or (in the case of any Fronted Letter of Credit) the
      applicable Fronting Issuing Bank may accept documents that appear on their
      face
      to be in substantial compliance with the terms of a Letter of Credit without
      responsibility for further investigation, regardless of any notice or
      information to the contrary, and may make payment upon presentation of documents
      that appear on their face to be in substantial compliance with the terms of
      such
      Letter of Credit;

     

    (ii)
      the
      Administrative Agent or (in the case of any Fronted Letter of Credit) the
      applicable Fronting Issuing Bank shall have the right, in its sole discretion,
      to decline to accept such documents and to make such payment if such documents
      are not in strict compliance with the terms of such Letter of Credit;
      and

     

    (iii)
      this sentence shall establish the standard of care to be exercised by the
      Administrative Agent or (in the case of any Fronted Letter of Credit) the
      applicable Fronting Issuing Bank when determining whether drafts and other
      documents presented under a Letter of Credit comply with the terms thereof
      (and
      the parties hereto hereby waive, to the extent permitted by applicable law,
      any
      standard of care inconsistent with the foregoing).

     

    (c) Disbursement
      Procedures.
      (i) The
      following provisions shall apply to any Letter of Credit (other than any Fronted
      Letter of Credit). The Administrative Agent shall, within a reasonable time
      following its receipt thereof, examine all documents purporting to represent
      a
      demand for payment under any such Letter of Credit. The Administrative Agent
      shall promptly after such examination (A) notify each of the Banks, the
      Company and the Account Party by telephone (confirmed by telecopy) of such
      demand for payment and (B) deliver to each Bank a copy of each document
      purporting to represent a demand for payment under such Letter of Credit. With
      respect to any drawing properly made under any such Letter of Credit, each
      Bank
      will make an LC Disbursement in respect of such Letter of Credit in accordance
      with its liability under such Letter of Credit and this Agreement, such LC
      Disbursement to be made to the account of the Administrative Agent most recently
      designated by it for such purpose by notice to the Banks. The Administrative
      Agent will make any such LC Disbursement available to the beneficiary of such
      Letter of Credit by promptly crediting the amounts so received, in like funds,
      to the account identified by such beneficiary in connection with such demand
      for
      payment. Promptly following any LC Disbursement by any Bank in respect of any
      such Letter of Credit, the Administrative Agent will notify the Company and
      the
      applicable Account Party of such LC Disbursement; provided
      that any
      failure to give or delay in giving such notice shall not relieve such Account
      Party of its obligation to reimburse the Banks with respect to any such LC
      Disbursement or the Guarantor of its guarantee of such obligation.

     

    
      
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    (ii)
      The
      following provisions shall apply to any Fronted Letter of Credit. The applicable
      Fronting Issuing Bank shall, within a reasonable time following its receipt
      thereof, examine all documents purporting to represent a demand for payment
      under a Fronted Letter of Credit. The applicable Fronting Issuing Bank shall
      promptly after such examination notify the Administrative Agent and the Company
      by telephone (confirmed by telecopy) of such demand for payment and whether
      such
      Fronting Issuing Bank has made or will make a LC Disbursement thereunder;
provided
      that any
      failure to give or delay in giving such notice shall not relieve the applicable
      Account Party of its obligation to reimburse such Fronting Issuing Bank and
      the
      Banks with respect to any such LC Disbursement.

     

    (d) Interim
      Interest.
      If any
      LC Disbursement is made, then, unless the Account Parties shall reimburse such
      LC Disbursement in full on the date such LC Disbursement is made (without regard
      for when notice thereof is given), the unpaid amount thereof shall bear
      interest, for each day from and including the date such LC Disbursement is
      made
      to but excluding the date that the applicable Account Party reimburses such
      LC
      Disbursement, at the rate per annum equal to (i) 1% plus
      the Base
      Rate to but excluding the date three Domestic Business Days after such LC
      Disbursement and (ii) from and including the date three Domestic Business Days
      after such LC Disbursement, 3% plus
      the Base
      Rate.

     

    (e) Provision
      of Cover.
      In the
      event the Company and the Account Parties shall have provided cover for
      outstanding Letters of Credit pursuant to Section 6.01, the Administrative
      Agent
      will establish a separate cash collateral account (the "Collateral
      Account"),
      which
      may be a "securities account" (as defined in Section 8-501 of the Uniform
      Commercial Code as in effect in New York (the "NY
      UCC")),
      in
      the name and under the sole dominion and control of the Administrative Agent
      (and, in the case of a securities account, in respect of which the
      Administrative Agent is the "entitlement holder" (as defined in
      Section 8-102(a)(7) of the NY UCC)) into which there shall be deposited
      from time to time such amounts paid to the Administrative Agent as cover for
      the
      applicable LC Exposure. As collateral security for the prompt payment in full
      when due of all reimbursement obligations in respect of LC Disbursements, all
      interest thereon, and all other obligations of the Account Parties under the
      Credit Documents whether or not then outstanding or due and payable (such
      obligations being herein collectively called the "Secured
      Obligations"),
      each
      of the Company and the other Account Parties hereby pledges and grants to the
      Administrative Agent, for the benefit of the Banks and the Administrative Agent
      as provided herein, a security interest in all of its right, title and interest
      in and to the Collateral Account and the balances from time to time in the
      Collateral Account (including the investments and reinvestments therein provided
      for below). The balances from time to time in the Collateral Account shall
      not
      constitute payment of any Secured Obligations until applied by the
      Administrative Agent as provided herein. Anything in this Agreement to the
      contrary notwithstanding, funds held in the Collateral Account shall be subject
      to withdrawal only as provided in this Section 2.03(e). Amounts on deposit
      in the Collateral Account shall be invested and reinvested by the Administrative
      Agent in such short-term Investments as the Administrative Agent shall determine
      in its sole discretion. All such investments and reinvestments shall be held
      in
      the name and be under the sole dominion control of the Administrative Agent
      and
      shall be credited to the Collateral Account. At any time, and from time to
      time,
      while an Event of Default has occurred and is continuing, the Administrative
      Agent shall, if instructed by the Required Banks in their sole discretion,
      liquidate any such investments and reinvestments and credit the proceeds thereof
      to the Collateral Account and apply or cause to be applied such proceeds and
      any
      other balances in the Collateral Account to the payment of any of the Secured
      Obligations due and payable. If at any time (i) no Default has occurred and
      is
      continuing and (ii) all of the Secured Obligations then due have been paid
      in
      full but Letters of Credit remain outstanding, the Administrative Agent shall,
      from time to time, at the request of the Company, deliver to the Company,
      against receipt but without any recourse, warranty or representation whatsoever,
      such of the balances in the Collateral Account as exceed the aggregate undrawn
      face amount of all outstanding Letters of Credit. When all of the Secured
      Obligations shall have been paid in full, all Letters of Credit have expired
      or
      been terminated and the Commitments have terminated, the Administrative Agent
      shall promptly deliver to the Company, for account of the Company and the other
      Account Parties, as applicable, against receipt but without any recourse,
      warranty or representation whatsoever, the balances remaining in the Collateral
      Account.

     

    
      
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    SECTION
      2.04. Loans.
      At any
      time and from time to time during the Commitment Availability Period each Bank
      severally agrees, on the terms and conditions set forth in this Agreement,
      to
      make loans in Dollars to the Company pursuant to this Section in amounts such
      that the aggregate outstanding amount of the Credit Exposures of the Banks
      shall
      not exceed the aggregate amount of the Commitments of the Banks. Each Borrowing
      shall be in an aggregate principal amount of $25,000,000 or any larger multiple
      of $1,000,000 and shall be made from the several Banks ratably in proportion
      to
      their respective Commitments. Within the foregoing limits, the Company may
      borrow under this Section, repay, or to the extent permitted by Section 2.12,
      prepay Loans and reborrow at any time during the Commitment Availability Period
      under this Section.

     

    
      
        Credit
          Agreement

         

      

      
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    SECTION
      2.05. Notice
      of Borrowings.
      The
      Company shall give the Administrative Agent notice (a "Notice
      of Borrowing")
      not
      later than 11:00 a.m. (New York City time) on (x) the date of each Base Rate
      Borrowing and (y) the third Euro-Dollar Business Day before each Euro-Dollar
      Borrowing, specifying:

     

    (a) the
      date
      of such Borrowing, which shall be a Domestic Business Day in the case of a
      Base
      Rate Borrowing or a Euro-Dollar Business Day in the case of a Euro-Dollar
      Borrowing,

     

    (b) the
      aggregate amount (in Dollars) of such Borrowing,

     

    (c) whether
      the Loans comprising such Borrowing are to be Base Rate Loans or Euro-Dollar
      Loans, and

     

    (d) in
      the
      case of a Euro-Dollar Borrowing, the duration of the Interest Period applicable
      thereto, subject to the provisions of the definition of Interest
      Period.

     

    SECTION
      2.06. Funding
      of Loans.
      (a)
      Upon receipt of a Notice of Borrowing, the Administrative Agent shall promptly
      notify each Bank of the contents thereof and of such Bank's share of such
      Borrowing and such Notice of Borrowing shall not thereafter be revocable by
      the
      Company.

     

    (b) Not
      later
      than 12:00 noon (New York City time) (or 1:00 p.m. (New York City time) in
      the
      case of any Base Rate Borrowing) on the date of each Borrowing, each Bank
      participating therein shall (except as provided in subsection (c) of this
      Section) make available its share of such Borrowing, in Federal or other funds
      immediately available in New York City, to the Administrative Agent at its
      address specified in or pursuant to Section 10.01. Unless the Administrative
      Agent determines that any applicable condition specified in Article III has
      not
      been satisfied, the Administrative Agent will make the funds so received from
      the Banks available to the Company at the Administrative Agent's aforesaid
      address.

     

    (c) If
      any
      Bank makes a new Loan hereunder on a day on which the Company is to repay all
      or
      any part of an outstanding Loan from such Bank, such Bank shall apply the
      proceeds of its new Loan to make such repayment and only an amount equal to
      the
      difference (if any) between the amount being borrowed and the amount being
      repaid shall be made available by such Bank to the Administrative Agent as
      provided in subsection (b) of this Section, or remitted by the Company to the
      Administrative Agent as provided in Section 2.13, as the case may
      be.

     

    (d) Unless
      the Administrative Agent shall have received notice from a Bank prior to the
      date of any Borrowing that such Bank will not make available to the
      Administrative Agent such Bank's share of such Borrowing, the Administrative
      Agent may assume that such Bank has made such share available to the
      Administrative Agent on the date of such Borrowing in accordance with
      subsections (b) and (c) of this Section and the Administrative Agent may, in
      reliance upon such assumption, make available to the Company on such date a
      corresponding amount. If and to the extent that such Bank shall not have so
      made
      such share available to the Administrative Agent, such Bank and the Company
      severally agree to repay to the Administrative Agent forthwith on demand such
      corresponding amount together with interest thereon, for each day from the
      date
      such amount is made available to the Company until the date such amount is
      repaid to the Administrative Agent, at (i) in the case of the Company, a rate
      per annum equal to the higher of the Federal Funds Rate and the interest rate
      applicable thereto pursuant to Section 2.09 and (ii) in the case of such Bank,
      the Federal Funds Rate. If such Bank shall repay to the Administrative Agent
      such corresponding amount, such amount so repaid shall constitute such Bank's
      Loan included in such Borrowing for purposes of this Agreement.

     

    
      
        Credit
          Agreement

         

      

      
        -24-

        
          

        

      

      
         

      

    

    SECTION
      2.07. Evidence
      of Loans.
      (a)
      Each Bank shall maintain in accordance with its usual practice records
      evidencing the indebtedness of the Company to such Bank resulting from each
      Loan
      made by such Bank, including the amounts of principal and interest payable
      and
      paid to such Bank from time to time hereunder, and setting forth the Commitments
      of the Banks.

     

    (b)
      The
      Administrative Agent shall maintain records in which it shall record
      (i) the amount of each Loan made hereunder and each Interest Period
      therefor, (ii) the amount of any principal or interest due and payable or
      to become due and payable from the Company to each Bank hereunder and
      (iii) the amount of any sum received by the Administrative Agent hereunder
      for account of the Banks and each Bank's share thereof.

     

    (c)
      The
      entries made in the records maintained pursuant to subsection (a)
      or (b) of this Section shall be prima facie
      evidence
      of the existence and amounts of the obligations recorded therein; provided
      that the
      failure of any Bank or the Administrative Agent to maintain such records or
      any
      error therein shall not in any manner affect the obligation of the Company
      to
      repay the Loans in accordance with the terms of this Agreement.

     

    (d)
      Any
      Bank may request that the Loans of such Bank to the Company be evidenced by
      a
      single Note, in substantially the form of Exhibit A hereto with appropriate
      modifications to reflect the fact that it evidences solely Loans of the relevant
      Type, payable by the Company to the order of such Bank for the account of its
      Applicable Lending Office. In such event, the Company shall prepare, execute
      and
      deliver to such Bank a Note payable to such Bank (or, if requested by such
      Bank,
      to such Bank and its registered assigns). Thereafter, the Loans evidenced by
      such Note and interest thereon shall at all times (including after assignment
      pursuant to Section 10.06) be represented by one or more Notes in such form
      payable to the payee named therein (or, if such Note is a registered note,
      to
      such payee and its registered assigns).

     

    
      
        Credit
          Agreement

         

      

      
        -25-

        
          

        

      

      
         

      

    

    SECTION
      2.08. Maturity
      of Loans.
      Each
      Loan shall mature, and the Company hereby unconditionally promises to pay the
      unpaid principal of each Loan (together with accrued interest thereon), on
      the
      Commitment Termination Date.

     

    SECTION
      2.09. Interest
      Rates of Loans.
      (a)
      Each Base Rate Loan shall bear interest on the outstanding principal amount
      thereof, for each day from the date such Loan is made until it becomes due,
      at a
      rate per annum equal to the sum of the Base Rate for such day plus,
      for any
      Commitment Utilization Day, the Applicable Additional Margin. Such interest
      shall accrue and be payable quarterly in arrears on each Quarterly Date and
      on
      the date of termination of the Commitments in their entirety (and, if later,
      the
      date the Loans shall be paid in full). Any overdue principal of or interest
      on
      any Base Rate Loan shall bear interest, payable on demand, for each day until
      paid at a rate per annum equal to the sum of 2% plus
      the Base
      Rate for such day plus,
      for any
      Commitment Utilization Day, the Applicable Additional Margin.

     

    (b) Each
      Euro-Dollar Loan shall bear interest on the outstanding principal amount
      thereof, for the Interest Period applicable thereto, at a rate per annum equal
      to the sum of the Applicable Margin plus
      the
      applicable LIBO Rate plus,
      for any
      Commitment Utilization Day, the Applicable Additional Margin. Such interest
      shall be payable for each Interest Period on the last day thereof and, if such
      Interest Period is longer than three months, at intervals of three months after
      the first day thereof.

     

    The
      "LIBO
      Rate"
      applicable to any Interest Period means the rate appearing on Page 3750 of
      the
      Telerate Service (or any successor or substitute page of such Service, or any
      successor to or substitute for such Service, providing rate quotations
      comparable to those currently provided on such page of such Service, as
      determined by the Administrative Agent for purposes of providing quotations
      of
      interest rates applicable to U.S. Dollar deposits in the London interbank
      market) at approximately 11:00 A.M. (London time) two Euro-Dollar Business
      Days
      before the first day of such Interest Period, as the rate for the offering
      of
      Dollar deposits with a maturity comparable to such Interest Period. In the
      event
      that such rate is not available at such time for any reason, then the LIBO
      Rate
      for such Interest Period shall be the rate at which U.S. Dollar deposits of
      $10,000,000 and for a maturity comparable to such Interest Period are offered
      by
      the principal London office of the Person serving as Administrative Agent in
      immediately available funds in the London interbank market at approximately
      11:00 A.M. (London time), two Euro-Dollar Business Days before the first day
      of
      such Interest Period.

     

    
      
        Credit
          Agreement

         

      

      
        -26-

        
          

        

      

      
         

      

    

    (c) Any
      overdue principal of any Euro-Dollar Loan shall bear interest, payable on
      demand, for each day from and including the date payment thereof was due to
      but
      excluding the date of actual payment, at a rate per annum equal to the sum
      of 2%
plus
      the
      Applicable Margin plus,
      for any
      Commitment Utilization Day, the Applicable Additional Margin plus
      the
      average (rounded upward, if necessary, to the next higher 1/16 of 1%) of the
      respective rates per annum (as of the date of determination) at which one-day
      (or, if such amount due remains unpaid more than three Euro-Dollar Business
      Days, then for such other period of time not longer than six months as the
      Administrative Agent may select) deposits in Dollars in an amount approximately
      equal to such overdue payment due to the Person serving as the Administrative
      Agent are offered to such Person in the London interbank market for the
      applicable period determined as provided above (or, if the circumstances
      described in clause (a) or (b) of Section 8.01 shall exist, at a rate per annum
      equal to the sum of 2% plus
      the Base
      Rate for such day plus,
      for any
      Commitment Utilization Day, the Applicable Additional Margin). Any overdue
      interest on any Euro-Dollar Loan shall bear interest, payable on demand, for
      each day from and including the date payment thereof is due to but excluding
      the
      date of actual payment, at a rate per annum equal to the sum of 2% plus
      the Base
      Rate for such day plus,
      for any
      Commitment Utilization Day, the Applicable Additional Margin.

     

    (d) The
      Administrative Agent shall determine each interest rate applicable to the Loans
      hereunder. The Administrative Agent shall give prompt notice to the Company
      and
      the Banks of each rate of interest so determined, and its determination thereof
      shall be conclusive in the absence of manifest error.

     

    SECTION
      2.10. Fees.

     

    (a) The
      Company agrees to pay to the Administrative Agent for account of each Bank
      a
      facility fee, which shall accrue at the Applicable Facility Fee Rate, (i) prior
      to the termination of such Bank's Commitment, on the daily amount of the
      Commitment of such Bank (whether used or unused) during the period from and
      including the Effective Date to but excluding the date that the Commitments
      terminate and (ii) if such Bank continues to have any Credit Exposure after
      its
      Commitment terminates, on the daily amount of such Bank's Credit Exposure from
      and including the date its Commitment terminates to but excluding the date
      such
      Bank ceases to have any Credit Exposure. Accrued facility fees shall be payable
      on each Quarterly Date and on the earlier of the date the Commitments terminate
      and the Commitment Termination Date, commencing on the first such date after
      the
      Effective Date; provided
      that any
      facility fee accruing after such earlier date shall be payable on demand.
      Facility fees shall be computed on the basis of a year of 360 days and shall
      be
      payable for the actual number of days elapsed (including the first day but
      excluding the last day).

     

    (b) The
      Company agrees to pay to the Administrative Agent for account of each Bank
      a
      letter of credit fee with respect to Letters of Credit, which shall accrue
      at
      the Applicable Letter of Credit Commission on the average daily aggregate
      undrawn amount of all outstanding Letters of Credit during the period from
      and
      including the Effective Date to but excluding the later of the date on which
      such Bank's Commitment terminates and the date on which such Bank ceases to
      have
      any LC Exposure. Letter of credit fees accrued through and including each
      Quarterly Date shall be payable on the third Business Day following such
      Quarterly Date, commencing on the first such Business Day to occur; provided
      that all
      such fees shall be payable on the date on which the Commitments terminate and
      any such fees accruing after the date on which the Commitments terminate shall
      be payable on demand. Letter of credit fees shall be computed on the basis
      of a
      year of 360 days and shall be payable for the actual number of days elapsed
      (including the first day but excluding the last day).

     

    
      
        Credit
          Agreement

         

      

      
        -27-

        
          

        

      

      
         

      

    

    (c) Except
      as
      set forth in Section 2.17, the Account Parties agree to pay, on demand, to
      the
      Administrative Agent for its own account all commissions, charges, costs and
      expenses with respect to the issuance, amendment, renewal and extension of
      each
      Letter of Credit and drawings and other transactions relating thereto in amounts
      customarily charged from time to time in like circumstances by the Person that
      is serving as the Administrative Agent or, as may be separately agreed from
      time
      to time by the Company on behalf of the Account Parties and the Administrative
      Agent for its own account.

     

    (d) All
      fees
      payable hereunder shall be paid on the dates due, in immediately available
      funds, to the Administrative Agent for distribution, in the case of facility
      fees and letter of credit fees, to the Banks entitled thereto. Fees paid
      hereunder shall not be refundable under any circumstances.

     

    SECTION
      2.11. Termination,
      Reduction or Increase of Commitments.

     

    (a) Unless
      previously terminated, the Commitments shall automatically terminate on the
      Commitment Termination Date. 

     

    (b) The
      Company may, upon at least three Domestic Business Days' notice to the
      Administrative Agent, terminate at any time, or proportionately and permanently
      reduce from time to time by an aggregate amount of $10,000,000 or any larger
      multiple of $5,000,000, the aggregate amount of the Commitments, provided
      that,
      after giving effect to such termination or any such reduction, the aggregate
      outstanding amount of the Credit Exposures of the Banks shall not exceed the
      aggregate amount of the Commitments of the Banks. Upon receipt of such a notice,
      the Administrative Agent shall promptly notify each Bank of the contents thereof
      and of such Bank's ratable share of such reduction (if such notice is a notice
      of reduction) and such notice shall not thereafter be revocable by the Company.
      Any termination or reduction of the Commitments shall be permanent.

     

    
      
        Credit
          Agreement

         

      

      
        -28-

        
          

        

      

      
         

      

    

    (c) The
      Company shall have the right, at any time or from time to time prior to the
      date
      that is 30 days prior to the Commitment Termination Date, to increase the
      aggregate Commitments hereunder up to an aggregate amount not exceeding
      $1,750,000,000, by causing one or more Additional Commitment Banks (which may
      include any existing Bank) to provide a (or, in the case of an existing Bank,
      to
      increase its) Commitment (each such increase, an "Commitment
      Increase"),
      provided
      that
      (i) no Bank shall have any obligation hereunder to become an Additional
      Commitment Bank and any election to do so shall be in the sole discretion of
      each Bank, (ii) each Additional Commitment Bank shall have entered into an
      agreement in form and substance satisfactory to the Company and the
      Administrative Agent pursuant to which such Additional Commitment Bank shall
      provide a Commitment (or, if such Additional Commitment Bank is an existing
      Bank, pursuant to which its Commitment shall be increased), (iii) such
      Commitment of any Additional Commitment Bank which is not an existing Bank
      shall
      be in an amount of at least $25,000,000 and (iv) each Commitment Increase
      shall be in an amount of at least $25,000,000. Each such Additional Commitment
      Bank shall enter into an agreement in form and substance satisfactory to the
      Company and the Administrative Agent pursuant to which such Additional
      Commitment Bank shall, as of effective date of such Commitment Increase (which
      shall be a Domestic Business Day and, unless the Administrative Agent otherwise
      agrees, on which no issuance, amendment, renewal or extension of any Letter
      of
      Credit is scheduled to occur, provide a Commitment (or, if any such Additional
      Commitment Bank is an existing Bank, increase its Commitment in the amount
      specified therein and (if not an existing Bank) become a Bank hereunder.
      Notwithstanding the foregoing, no Commitment Increase pursuant to this Section
      shall be effective unless:

     

    (i)
      the
      Company shall have given the Administrative Agent notice of any such increase
      at
      least three Domestic Business Days prior to the relevant effective date of
      such
      Commitment Increase;

     

    (ii)
      no
      Default shall have occurred and be continuing on such effective date;
      and

     

    (iii)
      each of the representations and warranties of each Account Party contained
      in
      this Agreement (other than the representations and warranties set forth in
      Sections 4.04(e) and 4.05 as to any matter which has theretofore been disclosed
      in writing by the Account Parties to the Banks) shall be true on and as of
      such
      effective date with the same force and effect as if made on and as of such
      date
      (or, if any such representation or warranty is expressly stated to have been
      made as of a specific date, as of such specific date).

     

    Each
      notice under clause (i) above shall be deemed to constitute a representation
      and
      warranty by the Company and the Subsidiary Account Parties as to the matters
      specified in clauses (ii) and (iii) above. 

     

    
      
        Credit
          Agreement

         

      

      
        -29-

        
          

        

      

      
         

      

    

    SECTION
      2.12. Optional
      Prepayments.
      (a) The
      Company may, upon at least one Domestic Business Day's notice to the
      Administrative Agent, prepay any Base Rate Borrowing in whole at any time,
      or
      from time to time in part in amounts aggregating $5,000,000 or any larger
      multiple of $1,000,000, by paying the principal amount to be prepaid together
      with accrued interest thereon to the date of prepayment.

     

    (b) The
      Company may, upon notice to the Administrative Agent by 10:00 a.m., New York
      City time, at least three Domestic Business Days prior to the date of
      prepayment, prepay any Euro-Dollar Borrowing in whole at any time, or from
      time
      to time in part in amounts aggregating $5,000,000 or any larger multiple of
      $1,000,000, by paying the principal amount to be prepaid together with
      (x) accrued interest thereon to the date of prepayment and (y) all losses
      and expenses (if any) relating thereto which are (i) determined pursuant to
      Section 2.14 and (ii) notified to the Company by the relevant Bank at least
      one
      Domestic Business Day prior to the date of such prepayment, provided
      that the
      failure of any Bank to so notify the Company of the amount of any such loss
      or
      expense shall not relieve the Company of its obligation to pay the
      same.

     

    (c) Each
      prepayment pursuant to this Section shall be applied to prepay ratably the
      Loans
      of the several Banks included in the relevant Borrowing being prepaid. Upon
      receipt of a notice of prepayment pursuant to this Section, the Administrative
      Agent shall promptly notify each Bank of the contents thereof and of such Bank's
      ratable share (if any) of such prepayment and such notice shall not thereafter
      be revocable by the Company.

     

    SECTION
      2.13. Payments
      Generally; Pro Rata Treatment.

     

    (a) Each
      Account Party shall make each payment required to be made by it hereunder
      (whether reimbursement of LC Disbursements, principal of or interest on the
      Loans, fees, amounts under Article VIII or otherwise) or under any other Credit
      Document (except to the extent otherwise provided therein) prior to not later
      than 2:00 p.m., New York City time, on the date when due, in immediately
      available funds, without set-off or counterclaim. Any amounts received after
      such time on any date may, in the discretion of the Administrative Agent, be
      deemed to have been received on the next succeeding Domestic Business Day for
      purposes of calculating interest thereon. All such payments shall be made to
      the
      Administrative Agent at its Payment Account, except as otherwise expressly
      provided in the relevant Credit Document, and except that payments pursuant
      to
      Section 10.03 and Article VIII shall be made directly to the Persons entitled
      thereto. The Administrative Agent shall distribute any such payments received
      by
      it for account of any other Person to the appropriate recipient promptly
      following receipt thereof. If any payment hereunder shall be due on a day that
      is not a Domestic Business Day or Euro-Dollar Business Day (as applicable),
      the
      date for payment shall be extended to the next succeeding Domestic or
      Euro-Dollar Business Day (as applicable) and, in the case of any payment
      accruing interest, interest thereon shall be payable for the period of such
      extension. All payments hereunder or under any other Credit Document shall
      be
      made in Dollars.

     

    
      
        Credit
          Agreement

         

      

      
        -30-

        
          

        

      

      
         

      

    

    (b) If
      at any
      time insufficient funds are received by and available to the Administrative
      Agent to pay fully all amounts of unreimbursed LC Disbursements in respect
      of
      Letters of Credit (other than Fronted Letters of Credit) or interest thereon,
      principal of or interest on the Loans and fees then due hereunder, such funds
      shall be applied (i) first, to pay interest and fees then due hereunder in
      respect of such Letters of Credit or Loans (as applicable), pro rata among
      the
      Banks in accordance with the amounts of interest and fees then due to the Banks,
      and (ii) second, to pay such unreimbursed LC Disbursements or principal in
      respect of Loans (as applicable) then due hereunder, pro rata among the Banks
      in
      accordance with the amounts of unreimbursed LC Disbursements or principal of
      Loans then due to the Banks.

     

    (c) Except
      to
      the extent otherwise provided herein: (i) each reimbursement of LC
      Disbursements in respect of Letters of Credit (other than Fronted Letters of
      Credit) and each payment of facility fee under Section 2.10(a) shall be for
      account of the Banks, and each termination or reduction of the amount of the
      Commitments under Section 2.04 shall be applied to the respective
      Commitments of the Banks, pro rata in accordance with their respective
      Applicable Percentages; (ii) each payment of principal of Loans and each of
      interest hereunder shall be for account of the Banks, pro rata in accordance
      with the amounts of principal or interest (as the case may be) then due and
      payable to the Banks; and (iii) each payment of letter of credit fee under
      Section 2.10(b) shall be for account of the Banks, pro rata in accordance
      with their respective Applicable Percentages under the Letters of
      Credit.

     

    (d) Unless
      the Administrative Agent shall have received notice from the Company or the
      applicable Account Party prior to the date on which any payment is due to the
      Administrative Agent for account of the Banks hereunder that neither the Company
      nor such Account Party will make such payment, the Administrative Agent may
      assume that the Company or such Account Party made such payment on such date
      in
      accordance herewith and may, in reliance upon such assumption, distribute to
      the
      Banks the amount due. In such event, if the Company or such Account Party has
      not in fact made such payment, then each of the Banks severally agrees to repay
      to the Administrative Agent forthwith on demand the amount so distributed to
      such Bank with interest thereon, for each day from and including the date such
      amount is distributed to it to but excluding the date of payment to the
      Administrative Agent, at the Federal Funds Rate.

     

    SECTION
      2.14. Funding
      Losses.
      If the
      Company makes any payment of principal with respect to any Euro-Dollar Loan
      (pursuant to Article VI or VIII or otherwise) on any day other than the last
      day
      of the Interest Period applicable thereto, or the end of an applicable period
      fixed pursuant to Section 2.09(c), or if the Company fails to borrow any
      Euro-Dollar Loans after notice has been given to any Bank in accordance with
      Section 2.04(a), the Company shall reimburse each Bank within 15 days after
      demand for any resulting loss or expense incurred by it (or by an existing
      or
      prospective participant in the related Loan), including (without limitation)
      any
      loss incurred in obtaining, liquidating or employing deposits from third
      parties, but excluding loss of margin for the period after any such payment
      or
      failure to borrow, provided
      that
      such Bank shall have delivered to the Company a certificate as to the amount
      of
      such loss or expense, which certificate shall be conclusive in the absence
      of
      manifest error.

     

    
      
        Credit
          Agreement

         

      

      
        -31-

        
          

        

      

      
         

      

    

    SECTION
      2.15. Computation
      of Interest and Fees.
      Interest based on the Prime Rate shall be computed on the basis of a year of
      365
      days (or 366 days in a leap year) and paid for the actual number of days elapsed
      (including the first day but excluding the last day). All other interest and
      fees shall be computed on the basis of a year of 360 days and paid for the
      actual number of days elapsed (including the first day but excluding the last
      day).

     

    SECTION
      2.16. Extension
      of Commitment Termination Date.
      (a)
Request
      for Extension.
      The
      Company may, by notice to the Administrative Agent (which shall promptly notify
      the Banks) not more than 60 days and not less than 30 days prior to each
      anniversary of the Effective Date (such anniversary date, the "Extension
      Effective Date"),
      request (each, an "Extension
      Request")
      that
      the Banks extend the Commitment Termination Date then in effect (the
      "Existing
      Commitment Termination Date")
      for an
      additional one year, provided
      that no
      more than two Extension Requests may be made hereunder. Each Bank, acting in
      its
      sole discretion, shall, by notice to the Company and the Administrative Agent
      given not later than the 20th
      day (or
      such later day as shall be acceptable to the Company) following the date of
      such
      Company's notice, advise the Company and the Administrative Agent whether or
      not
      such Bank agrees to such extension; provided
      that any
      Bank that does not so advise the Company shall be deemed to have rejected such
      Extension Request. The election of any Bank to agree to such extension shall
      not
      obligate any other Bank to so agree.

     

    (b) Replacement
      of Non-extending Banks.
      The
      Company shall have the right at any time on or prior to the relevant Extension
      Effective Date, unless an Event of Default shall have occurred and be
      continuing, to replace any non-extending Bank with, and otherwise add to this
      Agreement, one or more Additional Commitment Banks. Each Additional Commitment
      Bank shall enter into an agreement in form and substance reasonably satisfactory
      to the Company and the Administrative Agent pursuant to which such Additional
      Commitment Bank shall, effective as of the Extension Effective Date, provide
      a
      Commitment or (if such Additional Commitment Bank is an existing Bank) increase
      its Commitment in the amount specified therein and (if not an existing Bank)
      become a Bank hereunder, so long as any amounts payable to the relevant
      non-extending Bank being replaced are paid in full.

     

    
      
        Credit
          Agreement

         

      

      
        -32-

        
          

        

      

      
         

      

    

    (c) Effectiveness
      of Extension.
      If (and
      only if) the total of the Commitments of the Banks that have agreed in
      connection with any Extension Request to extend the Existing Commitment
      Termination Date and the additional Commitments of the Additional Commitment
      Bank(s) shall be at least 50% of the aggregate amount of the Commitments in
      effect immediately prior to the Extension Effective Date, then, effective as
      of
      the Extension Effective Date, the Commitment Termination Date, with respect
      to
      the Commitment of each Bank that has agreed to so extend its Commitment and
      of
      each Additional Commitment Bank shall be extended to the date falling one year
      after the then Existing Commitment Termination Date (or, if such date is not
      a
      Euro-Dollar Business Day, such Commitment Termination Date as so extended shall
      be the next preceding Euro-Dollar Business Day) and each Additional Commitment
      Bank shall thereupon become a "Bank" for all purposes of this
      Agreement.

     

    Notwithstanding
      the foregoing, the extension of the Existing Termination Date shall not be
      effective with respect to any Bank unless as of the relevant Extension Date
      (i)
      no Default shall have occurred and be continuing and (ii) the representations
      and warranties of each Account Party contained in this Agreement and the other
      Credit Documents shall be true on and as of such date with the same force and
      effect as if made on and as of such date (or, if any such representation and
      warranty is expressly stated to have been made as of a specific date, as of
      such
      specific date) (and the Administrative Agent shall have received a certification
      to such effect from a senior financial Officer of the Company, together with
      such evidence and other related documents as the Administrative Agent may
      reasonably request with respect to the authorization of the Company and other
      Account Parties of the extension and their respective obligations
      hereunder).

     

    Notwithstanding
      anything herein to the contrary, with respect to any Bank that has not approved
      any Extension Request, the Commitment Termination Date for such Bank shall
      remain unchanged (and the Commitment of such Bank shall terminate, and the
      Loans
      made by such Bank shall be repayable, on such date and the obligations of such
      Bank in respect of Letters of Credit shall not extend beyond the first
      anniversary of such date).

     

    SECTION
      2.17. Replacement
      of Banks; Fronted Letters of Credit; Obligations of Non-NAIC Approved
      Banks.
      (a)
Replacement
      of Defaulting Bank .
      If any
      Bank defaults in its obligation to fund any LC Disbursement hereunder, the
      Company may, upon notice to such Bank and the Administrative Agent, require
      such
      Bank, at the expense of such Bank, to assign, without recourse (in accordance
      with and subject to the restrictions contained in Section 10.06), all its
      interests, rights and obligations under this Agreement and the Letters of Credit
      issued, or participated in, by such Bank to any Person that shall assume such
      obligations (which assignee may be another Bank, if it accepts such assignment)
      with (and subject to) the consent of the Administrative Agent (which consent
      shall not unreasonably be withheld); provided
      that
      such Bank shall have received payment of an amount equal to the outstanding
      amount of its LC Disbursements, accrued interest thereon, accrued fees and
      all
      other amounts payable to it hereunder, from the assignee (to the extent of
      such
      outstanding LC Disbursements and accrued interest and fees) or the applicable
      Account Parties (in the case of all other amounts). No Bank shall be required
      to
      make any assignment pursuant to this Section 2.17(a) if, prior thereto, the
      circumstances entitling the Company to require such assignment cease to
      apply.

     

    
      
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          Agreement

         

      

      
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    (b)
      Replacement
      of Non-NAIC Approved Bank.
      If at
      any time any Bank shall be a Non-NAIC Approved Bank, such Bank shall promptly
      notify the Company and the Administrative Agent and shall use commercially
      reasonable efforts (i) to be listed on the NAIC Approved Bank List or (ii)
      to
      agree with a Person which is listed on the NAIC Approved Bank List (with (and
      subject to) the consent of the Company and the Administrative Agent (which
      consent, in each case, shall not unreasonably withheld)) to act as a Confirming
      Bank for such Bank in respect of its obligations under the Letters of Credit
      and, in such case, such Bank shall enter into a Confirming Bank Agreement with
      such Person (and furnish a copy thereof to the Company and the Administrative
      Agent).

     

    Notwithstanding
      anything herein to the contrary, at any time any Bank shall be a Non-NAIC
      Approved Bank, the Company may, upon notice to such Bank and the Administrative
      Agent, require such Bank, at the expense of such Bank, to assign, without
      recourse (in accordance with and subject to the restrictions contained in
      Section 10.06), all its interests, rights and obligations under this
      Agreement and the Letters of Credit issued, or participated in, by such Bank
      to
      any Person that shall assume such obligations (which assignee may be another
      Bank, if it accepts such assignment) with (and subject to) the consent of the
      Administrative Agent (which consent shall not unreasonably be withheld),
provided
      that
      such Bank shall have received payment of an amount equal to the outstanding
      amount of its LC Disbursements, accrued interest thereon, accrued fees and
      all
      other amounts payable to it hereunder, from the assignee (to the extent of
      such
      outstanding LC Disbursements and accrued interest and fees) or the applicable
      Account Parties (in the case of all other amounts). No Bank shall be required
      to
      make any assignment pursuant to this Section 2.17(b) if, prior thereto, the
      circumstances entitling the Company to require such assignment cease to
      apply.

     

    (c)
      Issuance
      of Fronted Letters of Credit; Obligations of Non-NAIC Approved
      Bank.
      At any
      time any Bank shall be a Non-NAIC Approved Bank, notwithstanding anything herein
      to the contrary, the Company may request by notice to the Administrative Agent
      that JPMCB and/or (if at the time of such request JPMCB is not a NAIC Approved
      Bank or if the aggregate amount of the requested letters of credit would exceed
      the limitation set forth in clause (i) of the proviso below) Wachovia and/or
      (if
      at the time of such request neither JPMCB nor Wachovia is a NAIC Approved Bank
      or if the aggregate amount of the requested letters of credit would exceed
      the
      limitation set forth in clause (i) of the proviso below) any other Bank that
      has
      agreed to act as an issuing bank under this Section (such issuer being
      hereinafter referred to as "Fronting
      Issuing Bank")
      issue
      one or more letters of credit of the type described herein under Section 2.01(a)
      (each a "Fronted
      Letter of Credit"),
      and
      each Fronting Issuing Bank agrees to issue such letters of credit promptly
      upon
      such request, subject to the terms and conditions set forth herein; provided
      that (i)
      neither JPMCB nor Wachovia shall be required to issue Fronted Letters of Credit
      hereunder in an aggregate face amount exceeding, in each case, $750,000,000
      and
      (ii) no other Bank shall have any obligation hereunder to become a Fronting
      Issuing Bank and any election to do so shall be in the sole discretion of such
      other Bank. Each Fronted Letter of Credit shall be issued by, and be the sole
      obligation as issuing bank of, the applicable Fronting Issuing
      Bank.

     

    
      
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          Agreement

         

      

      
        -34-

        
          

        

      

      
         

      

    

    If
      at any
      time as a result of any Bank being a Non-NAIC Bank the Company shall exercise
      its rights under this Section 2.17(c) to require the issuance of one or more
      Fronted Letters of Credit by any Fronting Issuing Bank, such Bank agrees (A)
      to
      pay to the applicable Fronting Issuing Bank for its own account a fronting
      fee
      in respect of each Fronted Letter of Credit issued by such Fronting Issuing
      Bank
      which shall accrue at a rate per annum of 0.125% on the average daily amount
      of
      the aggregate undrawn amount of each such Fronted Letter of Credit during the
      period from and including the date of issuance thereof to but excluding the
      later of the expiry date thereof and the date on which there ceases to be any
      LC Exposure thereunder. Fronting fees in respect of each such Fronted
      Letter of Credit accrued through and including each Quarterly Date shall be
      payable on the third Business Day following such Quarterly Date, commencing
      on
      the first such date to occur after the issuance of such Fronted Letter of
      Credit; provided
      that all
      such fees shall be payable on the date on which the Commitments terminate and
      any such fees accruing after the date on which the Commitments terminate shall
      be payable on demand, (B) to pay to the applicable Fronting Issuing Bank for
      its
      own account, within 10 Business Days after demand, such Fronting Issuing Bank's
      standard administrative fees with respect to the issuance, amendment, renewal
      or
      extension of any such Fronted Letter of Credit or processing of drawings
      thereunder and (C) to reimburse to the Company, within 10 Business Days after
      demand, any amounts paid by the Company to any Fronting Issuing Bank in respect
      of any Fronted Letter of Credit pursuant to Section 8.03.

     

     

    
      
        Credit
          Agreement

         

      

      
        -35-

        
          

        

      

      
         

      

    

    ARTICLE
      III

     

    CONDITIONS

     

    SECTION
      3.01. Each
      Credit Extension.
      The
      obligation of each Bank to issue, amend, renew or extend any Letter of Credit
      or
      to make any Loan is subject to the satisfaction of the following
      conditions:

     

    (a) in
      the
      case of a Letter of Credit, receipt by the Administrative Agent of a notice
      of
      issuance, amendment, renewal or extension, as the case may be, with respect
      to
      such Letter Credit, as required by Section 2.01(b) or, in the case of a
      Borrowing, receipt by the Administrative Agent of a Notice of Borrowing as
      required by Section 2.05;

     

    (b) the
      fact
      that, immediately before and after issuance, amendment, renewal or extension
      of
      such Letter Credit or such Loan no Default shall have occurred and be
      continuing; and

     

    (c) the
      fact
      that the representations and warranties of each Account Party contained in
      this
      Agreement (other than the representations and warranties set forth in Sections
      4.04(e) and 4.05 as to any matter which has theretofore been disclosed in
      writing by the Account Parties to the Banks) shall be true on and as of the
      date
      of such issuance, amendment, renewal or extension of such Letter Credit or
      such
      Loan (or, if any such representation or warranty is expressly stated to have
      been made as of a specific date, as of such specific date), provided
      that the
      exception in the first parenthetical phrase in this clause shall not apply
      in
      the case of any issuance, amendment, renewal or extension of a Letter of Credit
      or the making of a Loan on the Effective Date or with respect to the certificate
      under clause (d) of Section 3.02.

     

    Each
      issuance, amendment, renewal or extension of a Letter Credit and the making
      of
      any Loan hereunder shall be deemed to be a representation and warranty by the
      applicable Account Party on the date of such issuance, amendment, renewal or
      extension or Loan, as the case may be, as to the facts specified in clauses
      (b)
      and (c) of this Section.

     

    SECTION
      3.02. Effectiveness.
      This
      Agreement shall become effective on the first date that all of the following
      conditions shall have been satisfied (or waived in accordance with
      Section 10.05):

     

    (a) receipt
      by the Administrative Agent of counterparts hereof signed by each of the Persons
      listed on the signature pages hereto (or, in the case of any Bank as to which
      an
      executed counterpart shall not have been received, receipt by the Administrative
      Agent in form satisfactory to it of telegraphic, telex or other written
      confirmation from such Bank of execution and delivery of a counterpart hereof
      by
      such Bank) (and, in the case of each bank party to the Existing Credit Agreement
      immediately prior to the Effective Date that is not a Bank hereunder, receipt
      by
      the Administrative Agent of a written confirmation of such bank as to the
      termination of its commitment thereunder as of the Effective Date, and the
      parties hereto agree that each such bank shall not be a Bank hereunder and
      shall
      cease to have a commitment in respect of the Existing Credit Agreement as of
      the
      Effective Date);

     

    
      
        Credit
          Agreement

         

      

      
        -36-

        
          

        

      

      
         

      

    

    (b) receipt
      by the Administrative Agent of an opinion of Dennis L. Schoff, Esq., General
      Counsel of the Company, substantially in the form of Exhibit B
      hereto;

     

    (c) receipt
      by the Administrative Agent of an opinion of Milbank, Tweed, Hadley & McCloy
      LLP, special New York counsel to JPMCB, substantially in the form of Exhibit
      C
      hereto;

     

    (d) receipt
      by the Administrative Agent of a certificate, dated the Effective Date and
      signed by a senior financial officer of the Company, certifying as to clauses
      (b) and (c) of Section 3.01;

     

    (e) receipt
      by the Administrative Agent of a copy of the resolutions of the Board of
      Directors of the Company, in form and substance satisfactory to the
      Administrative Agent, authorizing the execution, delivery and performance of
      this Agreement and other Credit Documents;

     

    (f) receipt
      by the Administrative Agent of all documents, opinions and instruments as it
      may
      reasonably request relating to the existence of each Account Party, the
      corporate authority for and the validity and enforceability of this Agreement
      and the other Credit Documents, and any other matters related hereto, all in
      form and substance satisfactory to the Administrative Agent; and

     

    (g) receipt
      by the Administrative Agent of evidence as to (i) payment of all fees required
      to be paid, and all expenses required to be paid or reimbursed for which
      invoices have been presented (including, without limitation, fees and
      disbursements of counsel to JPMCB) in connection with this Agreement, on or
      before the Effective Date; (ii) payment by the Borrower and Subsidiary Account
      Parties of all fees, expenses and other amounts accrued or owing as of the
      Effective Date under the Existing Credit Agreement and (iii) payment by the
      Borrower of all unpaid principal of and interest on any outstanding loan under
      the First Amended and Restated Credit Agreement dated as of December 10, 2004
      among the Borrower, the banks party thereto and JPMCB as administrative agent
      thereunder, and all fees, expenses and other amounts accrued or owing thereunder
      and the termination of the commitments of such banks thereunder as of the
      Effective Date.

     

    
      
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          Agreement

         

      

      
        -37-

        
          

        

      

      
         

      

    

    provided
      that
      this Agreement shall not become effective or be binding on any party hereto
      unless all of the foregoing conditions are satisfied not later than 3:00 p.m.
      (New York City time) March 15, 2006 or such later date as may be agreed in
      writing by the Company and all of the Banks. The Administrative Agent shall
      promptly notify the Company and the Banks of the Effective Date, and such notice
      shall be conclusive and binding on all parties hereto.

     

     

    ARTICLE
      IV

     

    REPRESENTATIONS
      AND WARRANTIES

     

    Each
      of
      the Company (other than with respect to Section 4.15) and the Subsidiary
      Account Parties (with respect to Section 4.15 only) represents and warrants
      that:

     

    SECTION
      4.01. Corporate
      Existence and Power.
      The
      Company is a corporation duly incorporated and validly existing under the laws
      of the State of Indiana, and has all corporate power and all material
      governmental licenses, authorizations, consents and approvals required to carry
      on its business as now conducted.

     

    SECTION
      4.02. Corporate
      and Governmental Authorization; Contravention.
      The
      execution, delivery and performance by the Company of this Agreement and the
      other Credit Documents to which it is a party are within the Company's corporate
      powers, have been duly authorized by all necessary corporate action, require
      no
      action by or in respect of, or filing with, any governmental body, agency or
      official and do not contravene, or constitute a default under, any provision
      of
      applicable law or regulation or of the articles of incorporation or by-laws
      of
      the Company or of any material agreement, judgment, injunction, order, decree
      or
      other instrument binding upon the Company or any of its Restricted Subsidiaries
      or result in the creation or imposition of any Lien on any asset of the Company
      or any of its Restricted Subsidiaries.

     

    SECTION
      4.03. Binding
      Effect.
      This
      Agreement and the other Credit Documents to which it is a party constitute
      the
      legal, valid and binding obligations of the Company, in each case enforceable
      in
      accordance with their respective terms, except as the same may be limited by
      bankruptcy, insolvency or similar laws affecting creditors' rights generally
      and
      by general principles of equity.

     

    
      
        Credit
          Agreement

         

      

      
        -38-

        
          

        

      

      
         

      

    

    SECTION
      4.04. Financial
      Information.

     

    (a) The
      consolidated balance sheets of the Company and its Consolidated Subsidiaries
      as
      of December 31, 2004 and the related consolidated statements of income, cash
      flows and shareholders' equity for the fiscal year then ended, reported on
      by
      Ernst & Young LLP and set forth in the Company's 2004 Form 10-K, a copy of
      which has been delivered to the Administrative Agent on behalf of each of the
      Banks, fairly present, in conformity with generally accepted accounting
      principles, the consolidated financial position of the Company and its
      Consolidated Subsidiaries as of such date and their consolidated results of
      operations and changes in financial position for such fiscal year.

     

    (b) The
      unaudited consolidated balance sheets of the Company and its Consolidated
      Subsidiaries as of September 30, 2005 and the related unaudited consolidated
      statements of income, cash flows and shareholders' equity for the nine months
      then ended, set forth in the Company's quarterly report for the fiscal quarter
      ended September 30, 2005 as filed with the Securities and Exchange Commission
      on
      Form l0-Q, a copy of which has been delivered to the Administrative Agent on
      behalf of each of the Banks, fairly present, in conformity with generally
      accepted accounting principles applied on a basis consistent with the financial
      statements referred to in subsection (a) of this Section, the consolidated
      financial position of the Company and its Consolidated Subsidiaries as of such
      date and their consolidated results of operations and changes in financial
      position for such nine month period (subject to normal year-end
      adjustments).

     

    (c) A
      copy of
      a duly completed and signed Annual Statement or other similar report of or
      for
      each Insurance Subsidiary in the form filed with the governmental body, agency
      or official which regulates insurance companies in the jurisdiction in which
      such Insurance Subsidiary is domiciled for the year ended December 31, 2004
      has
      been delivered to the Administrative Agent on behalf of each of the Banks and
      fairly presents, in accordance with statutory accounting principles, the
      information contained therein.

     

    (d) A
      copy of
      a duly completed and signed Quarterly Statement or other similar report of
      or
      for each Insurance Subsidiary in the form filed with the governmental body,
      agency or official which regulates insurance companies in the jurisdiction
      in
      which such Insurance Subsidiary is domiciled for the quarter ended September
      30,
      2005 has been delivered to the Administrative Agent on behalf of each of the
      Banks and fairly presents, in accordance with statutory accounting principles,
      the information contained therein.

     

    (e) Since
      December 31, 2004 and as of the Effective Date, there has been no material
      adverse change in the business, financial condition, results of operations
      or
      prospects of the Company and its Consolidated Subsidiaries, considered as a
      whole.

     

    
      
        Credit
          Agreement

         

      

      
        -39-

        
          

        

      

      
         

      

    

    SECTION
      4.05. Litigation.
      As of
      the Effective Date, there is no action, suit or proceeding pending against,
      or
      to the knowledge of the Company threatened against, the Company or any of its
      Subsidiaries before any court or arbitrator or any governmental body, agency
      or
      official (a) which has or would be reasonably expected to have a Material
      Adverse Effect, or (b) which in any manner draws into question the validity
      or enforceability of this Agreement or any other Credit Document.

     

    SECTION
      4.06. Compliance
      with ERISA.
      Except
      as would not result in a Material Adverse Effect, each member of the ERISA
      Group
      has fulfilled its obligations under the minimum funding standards of ERISA
      and
      the Code with respect to each Plan and is in compliance in all material respects
      with the presently applicable provisions of ERISA and the Code with respect
      to
      each Plan. Except as would not result in a Material Adverse Effect, no member
      of
      the ERISA Group has (i) sought a waiver of the minimum funding standard under
      Section 412 of the Code in respect of any Plan, (ii) failed to make any
      contribution or payment to any Plan or Multiemployer Plan or in respect of
      any
      Benefit Arrangement, or made any amendment to any Plan or Benefit Arrangement,
      which has resulted or could result in the imposition of a Lien or the posting
      of
      a bond or other security under ERISA or the Code or (iii) incurred any liability
      under Title IV of ERISA other than a liability to the PBGC for premiums under
      Section 4007 of ERISA.

     

    SECTION
      4.07. Taxes.
      United
      States Federal income tax returns of the Company and its Subsidiaries have
      been
      examined and closed through the fiscal year ended December 31, 1995. The Company
      and its Subsidiaries have filed all income tax returns and all other material
      tax returns which are required to be filed by them and have paid all taxes
      due
      pursuant to such returns or, except for any such taxes that are being contested
      in good faith by appropriate proceedings and for which adequate reserves have
      been made, pursuant to any assessment received by the Company or any Subsidiary.
      The charges, accruals and reserves on the books of the Company and its
      Subsidiaries in respect of taxes are, in the opinion of the Company,
      adequate.

     

    SECTION
      4.08. Subsidiaries.
      Each of
      the Company's Restricted Subsidiaries is a corporation duly incorporated,
      validly existing and (except where such concept is not applicable) in good
      standing under the laws of its jurisdiction of incorporation, and has all
      corporate powers and all material governmental licenses, authorizations,
      consents and approvals required to carry on its business as now
      conducted.

     

    SECTION
      4.09. Not
      an
      Investment Company.
      The
      Company is not an "investment company" within the meaning of the Investment
      Company Act of 1940, as amended.

     

    
      
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          Agreement

         

      

      
        -40-

        
          

        

      

      
         

      

    

    SECTION
      4.10. Obligations
      to be Pari Passu.
      The
      Company's obligations under this Agreement and each other Credit Document to
      which it is a party rank pari passu as to priority of payment and in all other
      respects with all other unsecured and unsubordinated Debt of the
      Company.

     

    SECTION
      4.11. No
      Default.
      No
      event has occurred and is continuing which constitutes, or which, with the
      passage of time or the giving of notice or both, would constitute, a default
      under or in respect of any material agreement, instrument or undertaking to
      which the Company or any Restricted Subsidiary is a party or by which either
      the
      Company or any Restricted Subsidiary or any of their respective assets is bound,
      unless such default would not have or be reasonably expected to have a Material
      Adverse Effect.

     

    SECTION
      4.12. Restricted
      Subsidiaries.
      Set
      forth as Schedule II hereto is a true, correct and complete list of each
      Restricted Subsidiary as of the date hereof.

     

    SECTION
      4.13. Environmental
      Matters.
      The
      Company has reasonably concluded that Environmental Laws are unlikely to have
      a
      Material Adverse Effect.

     

    SECTION
      4.14. Full
      Disclosure.
      All
      written information heretofore furnished by the Company to the Administrative
      Agent or any Bank for purposes of or in connection with this Agreement or any
      transaction contemplated hereby is, and all such information hereafter furnished
      by the Company to the Administrative Agent or any Bank will be, true and
      accurate in all material respects on the date as of which such information
      is
      stated or certified. To the best of its knowledge, the Company has disclosed
      to
      the Banks in writing any and all facts which materially and adversely affect
      or
      may materially and adversely affect (to the extent the Company can now
      reasonably foresee) the business, consolidated financial condition or
      consolidated results of operations of the Company and its Consolidated
      Subsidiaries, taken as a whole, or the ability of each Account Party to perform
      its obligations under the Credit Documents to which it is a party.

     

    SECTION
      4.15. Separate
      Representations of Subsidiary Account Parties.
      Each of
      the Subsidiary Account Parties represents and warrants that:

     

    (a) Such
      Subsidiary Account Party is a company duly organized and validly existing under
      the laws of the jurisdiction of its organization, and has all corporate power
      and all material governmental licenses, authorizations, consents and approvals
      required to carry on its business as now conducted.

     

    (b) The
      execution, delivery and performance by such Subsidiary Account Party of this
      Agreement and each other Credit Document to which it is a party are within
      such
      Subsidiary Account Party's corporate powers, have been duly authorized by all
      necessary corporate action, require no action by or in respect of, or filing
      with, any governmental body, agency or official and do not contravene, or
      constitute a default under, any provision of applicable law or regulation or
      of
      any organizational document of such Subsidiary Account Party or of any material
      agreement, judgment, injunction, order, decree or other instrument binding
      upon
      such Subsidiary Account Party or result in the creation or imposition of any
      Lien on any asset of such Subsidiary Account Party.

     

    
      
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          Agreement

         

      

      
        -41-

        
          

        

      

      
         

      

    

    (c) The
      Credit Documents (including this Agreement) to which such Subsidiary Account
      Party is a party constitute the legal, valid and binding obligations of such
      Subsidiary Account Party, in each case enforceable in accordance with their
      respective terms, except as the same may be limited by bankruptcy, insolvency
      or
      similar laws affecting creditors' rights generally and by general principles
      of
      equity.

     

    (d) Such
      Subsidiary Account Party is not an "investment company" within the meaning
      of
      the Investment Company Act of 1940, as amended.

     

    (e) Such
      Subsidiary Account Party's obligations under this Agreement to which it is
      a
      party rank pari passu as to priority of payment and in all other respects with
      all other unsecured and unsubordinated Debt of such Subsidiary Account Party
      with the exception of those obligations that are mandatorily preferred by law
      and not by contract.

     

    (f) No
      event
      has occurred and is continuing which constitutes or which, with the passage
      of
      time or the giving of notice or both, would constitute, a default under or
      in
      respect of any material agreement, instrument or undertaking to which such
      Subsidiary Account Party is a party or by which either such Subsidiary Account
      Party or any of its assets is bound.

     

    (g) Such
      Subsidiary Account Party is not the subject of (i) any winding up (whether
      compulsory or otherwise) or any other corporate, judicial or administrative
      proceeding or action which could result in the winding up of such Subsidiary
      Account Party or (ii) any other proceeding or action relating to the insolvency,
      bankruptcy, liquidation, moratorium on the payment of obligations or any other
      similar condition of or relating to such Subsidiary Account Party, and such
      Subsidiary Account Party has taken no action in furtherance of any of the
      foregoing.

     

    
      
        Credit
          Agreement

         

      

      
        -42-

        
          

        

      

      
         

      

    

     

    ARTICLE
      V

     

    COVENANTS

     

    Until
      all
      Commitments have expired or been terminated, the principal of and interest
      on
      each Loan and all fees payable hereunder shall have been paid in full and all
      Letters of Credit shall have expired or terminated and all LC Disbursements
      shall have been reimbursed, the Company and (in the case of
      Sections 5.01(l), 5.02, 5.03, 5.04, 5.05, 5.06, 5.08, 5.10 and 5.11) the
      Subsidiary Account Parties agree that:

     

    SECTION
      5.01. Information.
      The
      Company (and, in the case of Section 5.01(l), each Subsidiary Account
      Party, but only as to information concerning such Subsidiary Account Party
      and
      its Subsidiaries) will deliver to each of the Banks:

     

    (a) within
      90
      days after the end of each fiscal year of the Company, if and only to the extent
      not duplicative of information otherwise provided pursuant to clause (i)
      below, the consolidated balance sheet of the Company and its Consolidated
      Subsidiaries as of the end of such fiscal year and the related consolidated
      statements of income, cash flows and shareholders' equity for such fiscal year,
      setting forth in each case in comparative form the figures for the previous
      fiscal year, all reported on in a manner acceptable to the Securities and
      Exchange Commission by Ernst & Young LLP or other independent public
      accountants of nationally recognized standing;

     

    (b) within
      60
      days after the end of each of the first three quarters of each fiscal year
      of
      the Company, if and only to the extent not duplicative of information otherwise
      provided pursuant to clause (i) below, the consolidated balance sheet of
      the Company and its Consolidated Subsidiaries as of the end of such quarter
      and
      the related consolidated statements of income, cash flows and shareholders'
      equity for such quarter and for the portion of the Company's fiscal year ended
      at the end of such quarter, setting forth in each case in comparative form
      the
      figures for the corresponding quarter and the corresponding portion of the
      Company's previous fiscal year, all certified (subject to normal year-end
      adjustments) as to fairness of presentation, generally accepted accounting
      principles and consistency with the most recent audited consolidated financial
      statements of the Company and its Consolidated Subsidiaries delivered to the
      Banks (except for changes concurred in by the Company's independent public
      accountants) by the chief financial officer or the chief accounting officer
      of
      the Company;

     

    (c) simultaneously
      with the delivery of each set of financial statements referred to in
      clauses (a) and (b) above (whether delivered as provided therein or
      pursuant to clause (i) below), a certificate of the chief financial officer
      or the chief accounting officer of the Company (i) setting forth in
      reasonable detail the calculations required to establish whether the Company
      was
      in compliance with the requirements of Section 5.07 on the date of such
      financial statements and (ii) stating that such chief financial officer or
      chief accounting officer, as the case may be, has no knowledge of any Default
      existing on the date of such certificate or, if such chief financial officer
      or
      chief accounting officer has knowledge of the existence on such date of any
      Default, setting forth the details thereof and the action which the Company
      or
      the applicable Subsidiary Account Party, as the case may be is taking or
      proposes to take with respect thereto;

     

    
      
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    (d) simultaneously
      with the delivery of each set of financial statements referred to in clause
      (a)
      above (whether delivered as provided therein or pursuant to clause (i) below),
      a
      statement of the firm of independent public accountants which reported on such
      statements (i) as to whether anything has come to their attention to cause
      them
      to believe that any Default existed on the date of such statements and
      (ii) confirming the calculations set forth in the officer's certificate
      delivered simultaneously therewith pursuant to clause (c)
      above;

     

    (e) within
      120 days after the end of each fiscal year of each Insurance Subsidiary, a
      copy
      of a duly completed and signed Annual Statement (or any successor form thereto)
      required to be filed by such Insurance Subsidiary with the governmental body,
      agency or official which regulates insurance companies in the jurisdiction
      in
      which such Insurance Subsidiary is domiciled, in the form submitted to such
      governmental body, agency or official;

     

    (f) within
      60
      days after the end of each of the first three fiscal quarters of each Insurance
      Subsidiary, a copy of a duly completed and signed Quarterly Statement (or any
      successor form thereto) required to be filed by such Insurance Subsidiary with
      the governmental body, agency or official which regulates insurance companies
      in
      the jurisdiction in which such Insurance Subsidiary is domiciled, in the form
      submitted to such governmental body, agency or official;

     

    (g) forthwith
      upon learning of the occurrence of any Default, a certificate of the chief
      financial officer or the chief accounting officer of the Company setting forth
      the details thereof and the action which the Company is taking or proposes
      to
      take with respect thereto;

     

    (h) promptly
      upon the mailing thereof to the shareholders of the Company generally, if and
      only to the extent not duplicative of information otherwise provided pursuant
      to
      clause (i) below, copies of all financial statements, reports and proxy
      statements so mailed;

     

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

     

    (j) if
      and
      when any member of the ERISA Group (i) gives or is required to give notice
      to the PBGC of any "reportable event" (as defined in Section 4043 of ERISA)
      with respect to any Plan which might constitute grounds for a termination of
      such Plan under Title IV of ERISA, or knows that the plan administrator of
      any Plan has given or is required to give notice of any such reportable event,
      a
      copy of the notice of such reportable event given or required to be given to
      the
      PBGC; (ii) receives notice of complete or partial withdrawal liability
      under Title IV of ERISA or notice that any Multiemployer Plan is in
      reorganization, is insolvent or has been terminated, a copy of such notice;
      (iii) receives notice from the PBGC under Title IV of ERISA of an
      intent to terminate, impose liability (other than for premiums under
      Section 4007 of ERISA) in respect of, or appoint a trustee to administer,
      any Plan, a copy of such notice; (iv) applies for a waiver of the minimum
      funding standard under Section 412 of the Code, a copy of such application;
      (v) gives notice of intent to terminate any Plan under Section 4041(c)
      of ERISA, a copy of such notice and other information filed with the PBGC;
      (vi) gives notice of withdrawal from any Plan pursuant to Section 4063
      of ERISA, a copy of such notice; or (vii) fails to make any payment or
      contribution to any Plan or Multiemployer Plan or in respect of any Benefit
      Arrangement or makes any amendment to any Plan or Benefit Arrangement which
      has
      resulted or could result in the imposition of a Lien or the posting of a bond
      or
      other security, a certificate of the chief financial officer or the chief
      accounting officer of the Company setting forth details as to such occurrence
      and action, if any, which the Company or applicable member of the ERISA Group
      is
      required or proposes to take; 

     

    (k) promptly
      after Moody's or S&P shall have announced a change in the rating established
      or deemed to have been established for the Index Debt, written notice of such
      rating change; and

     

    (l) from
      time
      to time such additional information regarding the financial position or business
      of any Account Party as the Administrative Agent, at the request of any Bank,
      may reasonably request.

     

    SECTION
      5.02. Payment
      of Obligations.
      The
      Company will pay and discharge, and will cause each Restricted Subsidiary and
      Subsidiary Account Party to pay and discharge, at or before maturity, all their
      respective material obligations and liabilities, including, without limitation,
      tax liabilities, except where the same may be contested in good faith by
      appropriate proceedings, and will maintain, and will cause each Restricted
      Subsidiary to maintain, in accordance with generally accepted accounting
      principles, appropriate reserves for the accrual of any of the
      same.

     

    
      
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    SECTION
      5.03. Conduct
      of Business and Maintenance of Existence.
      The
      Company will continue, and will cause each Restricted Subsidiary and Subsidiary
      Account Party to continue, to engage in business of the same general type as
      conducted by the Company and its Restricted Subsidiaries, taken as a whole,
      on
      the date hereof and will preserve, renew and keep in full force and effect,
      and
      will cause each Restricted Subsidiary to preserve, renew and keep in full force
      and effect, their respective corporate existence and their respective rights,
      privileges, licenses and franchises which, in the judgment of the Board of
      Directors of the Company, are necessary or desirable in the normal conduct
      of
      business.

     

    SECTION
      5.04. Maintenance
      of Property; Insurance.

     

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

     

    (b) The
      Company will maintain, and will cause each of its Restricted Subsidiaries to
      maintain (either in the name of the Company or in such Subsidiary's own name)
      with financially sound and responsible insurance companies, insurance on all
      their respective properties and against at least such risks, in each case in
      at
      least such amounts (and with such risk retentions) as are usually insured
      against in the same general area by companies of established repute engaged
      in
      the same or a similar business; and the Company will furnish to the Banks,
      upon
      request from the Administrative Agent, information presented in reasonable
      detail as to the insurance so carried.

     

    SECTION
      5.05. Compliance
      with Laws.
      The
      Company will comply, and will cause each Subsidiary to comply, in all material
      respects with all applicable laws, ordinances, rules, regulations and
      requirements of governmental authorities (including, without limitation,
      Environmental Laws and ERISA and the rules and regulations thereunder) except
      where the necessity of compliance therewith is contested in good faith by
      appropriate proceedings, except where such non-compliance therewith would not
      reasonably be expected to have a Material Adverse Effect.

     

    SECTION
      5.06. Inspection
      of Property, Books and Records.
      The
      Company will keep, and will cause each Restricted Subsidiary and Subsidiary
      Account Party to keep, proper books of record and account in which full, true
      and correct entries shall be made of all dealings and transactions in relation
      to its business and activities; and, subject in all cases to Section 10.11,
      will permit, and will cause each Restricted Subsidiary and Subsidiary Account
      Party to permit, representatives of any Bank to visit and inspect any of their
      respective properties, to examine and make abstracts from any of their
      respective books and records and to discuss their respective affairs, finances
      and accounts with their respective officers, employees, actuaries and
      independent public accountants, all upon reasonable notice, at such reasonable
      times during ordinary business hours and as often as may reasonably be desired;
      provided
      that
      neither the Company nor any of its Subsidiaries shall be required to disclose
      any information subject to its attorney-client privilege.

     

    
      
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    SECTION
      5.07. Minimum
      Adjusted Consolidated Net Worth.
      The
      Company will not permit Adjusted Consolidated Net Worth to be less than (a)
      at
      any time prior to the consummation of the Jefferson-Pilot Acquisition and the
      delivery of the estimate contemplated in the last sentence of this Section,
      $4,082,000,000, (b) from and after the delivery of such estimate to but not
      including the last day of the first fiscal quarter ending after the consummation
      of the Jefferson-Pilot Acquisition, an amount equal to 70% of Estimated Adjusted
      Consolidated Net Worth (as defined below) and (c) at any time thereafter, an
      amount equal to 70% of Adjusted Consolidated Net Worth determined as of the
      end
      of the fiscal quarter or fiscal year, as applicable, of the Company ended
      immediately after the consummation of the Jefferson-Pilot Acquisition. Promptly
      but not later than 45 days following the consummation of the Jefferson-Pilot
      Acquisition, the Company shall furnish to the Administrative Agent a written
      estimate of the Adjusted Consolidated Net Worth, determined as of the end of
      the
      most recently completed fiscal quarter or fiscal year of the Company for which
      consolidated financial statements of the Company are then available and adjusted
      to give pro forma effect to the Jefferson-Pilot Acquisition ("Estimated
      Adjusted Consolidated Net Worth")
      (and
      the Administrative Agent shall promptly furnish a copy thereof to the
      Banks).

     

    SECTION
      5.08. Negative
      Pledge.
      The
      Company will not, and will not permit any Subsidiary to, create or suffer to
      exist any Lien upon any present or future capital stock or any other Securities
      of any of its Material Subsidiaries.

     

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

     

    SECTION
      5.10. Use
      of
      Credit.
      Each
      Account Party shall use each Letter of Credit issued under this Agreement to
      support its insurance or reinsurance business. The proceeds of each Loan made
      hereunder will be used for general corporate purposes of the Company. No Letter
      of Credit or proceeds of Loans will be used, directly or indirectly, for the
      purpose, whether immediate, incidental or ultimate, of buying or carrying any
      "margin stock" within the meaning of Regulations T, U and X.

     

    
      
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    SECTION
      5.11. Obligations
      to be Pari Passu.
      Each
      Account Party's obligations under this Agreement and the other Credit Documents
      to which it is a party will rank at all times pari passu as to priority of
      payment and in all other respects with all other unsecured and unsubordinated
      Debt of such Account Party with the exception of those obligations that are
      mandatorily preferred by law and not by contract.

     

    SECTION
      5.12. Termination
      of Jefferson-Pilot Credit Facility.
      Upon
      the consummation of the Jefferson-Pilot Acquisition, the Company will terminate
      the commitments of the lenders and pay all amounts owing under (a) the Credit
      Agreement dated as of December 23, 2004 among TSC Reassurance (Bermuda) Ltd.,
      as
      account party, Jefferson-Pilot Corporation, as guarantor, the lenders party
      thereto and Wachovia Bank, National Association, as administrative agent, as
      amended, and (b) the Credit Agreement dated as of May 7, 2002, among the
      Jefferson-Pilot Corporation, as guarantor, the lenders party thereto and Bank
      of
      America, N.A., as administrative agent, as amended.

     

     

    ARTICLE
      VI

     

    DEFAULTS

     

    SECTION
      6.01. Events
      of Default.
      If one
      or more of the following events ("Events
      of Default")
      shall
      have occurred and be continuing:

     

    (a) (i) the
      Company or any Account Party shall fail to pay when due any principal of any
      Loan or any reimbursement obligation in respect of an LC Disbursement or
      (ii) any Account Party shall fail to pay when due any interest on any Loan
      or LC Disbursement or any fees or any other amounts payable hereunder and such
      failure under this clause (ii) shall continue for four Domestic Business
      Days;

     

    (b) any
      Account Party shall fail to observe or perform any covenant contained in
      Sections 5.07 through 5.11, inclusive;

     

    (c) any
      Account Party shall fail to observe or perform any covenant or agreement
      contained in this Agreement (other than those covered by clause (a) or (b)
      above) for 30 days after written notice thereof has been given to the Company
      by
      the Administrative Agent at the request of any Bank;

     

    
      
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    (d) any
      representation, warranty, certification or statement made by any Account Party
      in this Agreement or in any certificate, financial statement or other document
      delivered pursuant to this Agreement shall prove to have been incorrect in
      any
      material respect when made (or deemed made);

     

    (e) the
      Company or any Subsidiary (other than a Newly Acquired Subsidiary) shall fail
      to
      make any payment in respect of any Debt (other than Loans and other extensions
      of credit hereunder and any Debt solely of a Newly Acquired Subsidiary existing
      at the time such Person becomes a Subsidiary and not created in contemplation
      of
      such event ("Newly
      Acquired Subsidiary Debt"))
      having a principal amount then outstanding of not less than $75,000,000 when
      due
      and such failure shall continue beyond any applicable grace period or the
      Company or any Subsidiary (other than a Newly Acquired Subsidiary) shall fail
      to
      make any payment in an amount at least equal to $75,000,000 in respect of any
      Derivative Financial Product when due and such failure shall continue beyond
      any
      applicable grace period;

     

    (f) any
      event
      or condition shall occur which results in the acceleration of the maturity
      of
      any Debt (other than Loans and other extensions of credit hereunder and Newly
      Acquired Subsidiary Debt) having a principal or face amount then outstanding
      of
      not less than $75,000,000 of the Company or any Subsidiary or enables (or,
      with
      the giving of notice or lapse of time or both, would enable) the holder of
      such
      Debt or any Person acting on such holder's behalf to accelerate the maturity
      thereof;

     

    (g) any
      Account Party or Restricted Subsidiary (other than a Newly Acquired Subsidiary)
      shall commence a voluntary case or other proceeding seeking rehabilitation,
      dissolution, conservation, liquidation, reorganization or other relief with
      respect to itself or its debts under any bankruptcy, insolvency or other similar
      law now or hereafter in effect or seeking the appointment of a trustee,
      receiver, liquidator, rehabilitator, dissolver, conservator, custodian or other
      similar official of it or any substantial part of its property, or shall consent
      to any such relief or to the appointment of or taking possession by any such
      official in an involuntary case or other proceeding commenced against it, or
      shall make a general assignment for the benefit of creditors, or shall fail
      generally to pay its debts as they become due, or shall take any corporate
      action to authorize any of the foregoing;

     

    (h) an
      involuntary case or other proceeding shall be commenced against any Account
      Party or Restricted Subsidiary (other than a Newly Acquired Subsidiary) seeking
      rehabilitation, dissolution, conservation, liquidation, reorganization or other
      relief with respect to it or its debts under any bankruptcy, insolvency or
      other
      similar law now or hereafter in effect or seeking the appointment of a trustee,
      receiver, liquidator, rehabilitator, dissolver, conservator, custodian or other
      similar official of it or any substantial part of its property, and such
      involuntary case or other proceeding shall remain undismissed and unstayed
      for a
      period of 60 days; or an order for relief shall be entered against any Account
      Party or such Restricted Subsidiary under the federal bankruptcy laws as now
      or
      hereafter in effect; or any governmental body, agency or official shall apply
      for, or commence a case or other proceeding to seek, an order for the
      rehabilitation, conservation, dissolution or other liquidation of Account Party
      or Restricted Subsidiary or of the assets or any substantial part thereof of
      any
      Account Party or Restricted Subsidiary or any other similar remedy;

     

    
      
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    (i) any
      of
      the following events or conditions shall occur, which, in the aggregate,
      reasonably could be expected to involve possible taxes, penalties and other
      liabilities in an aggregate amount in excess of $75,000,000: (i) any member
      of
      the ERISA Group shall fail to pay when due any amount or amounts which it shall
      have become liable to pay under Title IV of ERISA; (ii) notice of intent to
      terminate a Plan shall be filed under Title IV of ERISA by any member of the
      ERISA Group, any plan administrator or any combination of the foregoing; (iii)
      the PBGC shall institute proceedings under Title IV of ERISA to terminate,
      to impose liability (other than for premiums under Section 4007 of ERISA)
      in respect of, or to cause a trustee to be appointed to administer, any Plan;
      (iv) a condition shall exist by reason of which the PBGC would be entitled
      to
      obtain a decree adjudicating that any Plan must be terminated; or (v) there
      shall occur a complete or partial withdrawal from, or a default, within the
      meaning of Section 4219(c)(5) of ERISA, with respect to, one or more
      Multiemployer Plans;

     

    (j) a
      judgment or order for the payment of money in excess of the greater of (i)
      $150,000,000 or (ii) 3% of the consolidated shareholders' equity of the Company
      and its Consolidated Subsidiaries (after (without duplication) the actual
      amounts of insurance recoveries, offsets and contributions received and amounts
      thereof not yet received but which the insurer thereon has acknowledged in
      writing its obligation to pay) shall be rendered against any Account Party
      or
      Restricted Subsidiary and such judgment or order shall continue unsatisfied
      and
      unstayed for a period of 90 days after entry of such judgment (and, for purposes
      of this clause, a judgment shall be stayed if, among other things, an appeal
      is
      timely filed and such judgment cannot be enforced);

     

    (k) (i)
      any
      person or group of persons (within the meaning of Section 13 or 14 of the
      Securities Exchange Act of 1934, as amended) shall have acquired beneficial
      ownership (within the meaning of Rule 13d-3 promulgated by the Securities and
      Exchange Commission under said Act) of 20% or more of the outstanding shares
      of
      common stock of the Company; or (ii) occupation of a majority of the seats
      (other than vacant seats) on the board of directors of the Company by Persons
      who were neither (x) nominated by the board of directors of the Company or
      (y)
      appointed by directors so nominated; or

     

    
      
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    (l) any
      Subsidiary Account Party shall cease for any reason to be a Consolidated
      Subsidiary, unless (i) such Subsidiary Account Party shall have been
      consolidated or merged with or into a wholly owned Subsidiary or the Company
      or
      (ii) Subsidiary Account Party shall have been terminated as an Account
      Party hereunder pursuant to Section 10.13;

     

    then,
      and
      in every such event, and at any time thereafter during the continuance of such
      event, the Administrative Agent shall, if requested by the Required Banks,
      by
      notice to the Company take any or all of the following actions, at the same
      or
      different times: (i) terminate the Commitments and they shall thereupon
      terminate, (ii) declare the Loans then outstanding to be due and payable in
      whole (or in part, in which case any principal not so declared to be due and
      payable may thereafter be declared to be due and payable), and thereupon the
      principal of the Loans so declared to be due and payable, together with accrued
      interest thereon and all fees and other obligations of the Account Parties
      accrued hereunder shall become due and payable immediately, without presentment,
      demand, protest or other notice of any kind, all of which are hereby waived
      by
      each Account Party and the Guarantor, (iii) notify (or, in the case of any
      Fronted Letter of Credit, request the applicable Fronting Issuing Bank (and
      such
      Fronting Issuing Bank agrees upon such request) to notify) each beneficiary
      of
      an outstanding Letters of Credit of the existence of an Event of Default
      hereunder and cause a drawing of the aggregate undrawn amount thereunder (if
      such Letters of Credit so permit) and (iv) demand provision of cover from
      the Account Parties and the Guarantor in immediately available funds in an
      amount equal to the then aggregate undrawn amount of all Letters of Credit
      pursuant to Section 2.03(e); provided
      that, in
      the case of any of the Events of Default specified in clause (g) or (h)
      above (A) with respect to the Company, without any notice to any Account
      Party or the Guarantor or any other act by the Administrative Agent or the
      Banks, the Commitments shall thereupon terminate and the principal of the Loans
      then outstanding, together with accrued interest thereon and all fees and other
      obligations of the Account Parties accrued hereunder, shall automatically become
      due and payable without presentment, demand, protest or notice of any kind,
      all
      of which are hereby waived by each Account Party and the Guarantor and (B)
      with
      respect to any Account Party, without any notice to any Account Party or the
      Guarantor or any other act by the Administrative Agent or the Banks, the
      Commitments to issue Letters of Credit for the account of such Account Party
      shall thereupon terminate and all fees and other obligations of such Account
      Party shall become immediately due and payable without presentment, demand,
      protest or notice of any kind, all of which are hereby waived by the Account
      Parties and the Guarantor; provided,
      further,
      that,
      in the case of an Event of Default under Section 6.01(b) resulting from a
      default by any Subsidiary Account Party under Section 5.08, 5.10 or 5.11 or
      under Section 6.01(c) or (d) (in the latter case, resulting from a default
      by any Subsidiary Account Party under Section 4.15), the termination of the
      Commitments, the acceleration of all fees and other obligations of the Account
      Parties accrued hereunder and the causing of drawings under Letters of Credit
      shall apply only to the Commitments, fees, obligations in respect of such
      Subsidiary Account Party and to the Letters of Credit with respect to which
      it
      is the Account Party.

     

    
      
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    SECTION
      6.02. Notice
      of Default.
      The
      Administrative Agent shall give notice to the Company under Section 6.01(c)
      promptly upon being requested to do so by any Bank and shall thereupon notify
      all the Banks thereof.

     

     

    ARTICLE
      VII

     

    THE
      ADMINISTRATIVE AGENT

     

    SECTION
      7.01. Appointment
      and Authorization.
      Each
      Bank irrevocably appoints and authorizes the Administrative Agent to take such
      action as agent on its behalf and to exercise such powers under this Agreement
      and the other Credit Documents as are delegated to the Administrative Agent
      by
      the terms hereof or thereof, together with all such powers as are reasonably
      incidental thereto.

     

    SECTION
      7.02. Agent's
      Fee.
      The
      Company shall pay to the Administrative Agent for its own account fees in the
      amounts and at the times previously agreed upon between the Company and the
      Administrative Agent.

     

    SECTION
      7.03. Agent
      and Affiliates.
      JPMCB
      shall have the same rights and powers under this Agreement as any other Bank
      and
      may exercise or refrain from exercising the same as though it were not the
      Administrative Agent, and JPMCB and its Affiliates may accept deposits from,
      lend money to, and generally engage in any kind of business with the Company
      or
      any Subsidiary or Affiliate of any thereof as if it were not the Administrative
      Agent hereunder.

     

    SECTION
      7.04. Action
      by Agent.
      The
      obligations of the Administrative Agent hereunder are only those expressly
      set
      forth herein. The Administrative Agent shall not have any duty to take any
      discretionary action permitted to be taken by it pursuant to the provisions
      of
      this Agreement unless it shall be requested in writing to do so by the Required
      Banks. Without limiting the generality of the foregoing, the Administrative
      Agent shall not be required to take any action with respect to any Default,
      except as expressly provided in Article VI. The Administrative Agent shall
      have no duty to disclose to the Banks information that is not required to be
      furnished by an Account Party to the Administrative Agent at such time, but
      is
      voluntarily furnished by an Account Party to the Administrative Agent (either
      in
      its capacity as Administrative Agent or in its individual
      capacity).

     

    
      
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    SECTION
      7.05. Consultation
      with Experts.
      The
      Administrative Agent may consult with legal counsel (who may be counsel for
      any
      Account Party), independent public accountants and other experts selected by
      it
      and shall not be liable for any action taken or omitted to be taken by it in
      good faith in accordance with the advice of such counsel, accountants or
      experts.

     

    SECTION
      7.06. Liability
      of Agent.
      Neither
      the Administrative Agent nor any of its directors, officers, agents or employees
      shall be liable to any Bank for any action taken or not taken by it in
      connection herewith (i) with the consent or at the request of the Required
      Banks or (ii) in the absence of its own gross negligence or willful
      misconduct. The Administrative Agent shall be deemed not to have knowledge
      of
      any Default unless and until written notice thereof is given to the
      Administrative Agent by an Account Party or a Bank. Neither the Administrative
      Agent nor any of its directors, officers, agents or employees shall be
      responsible to any Bank for or have any duty to any Bank to ascertain, inquire
      into or verify (i) any statement, warranty or representation made in
      connection with this Agreement or any borrowing hereunder or the issuance,
      amendment, renewal or extension of any Letter of Credit; (ii) the
      performance or observance of any of the covenants or agreements of any Account
      Party; (iii) the satisfaction of any condition specified in
      Article III, except receipt of items required to be delivered to the
      Administrative Agent; (iv) the validity, effectiveness or genuineness of
      this Agreement, any other Credit Document or any other instrument or writing
      furnished in connection herewith; (v) the existence or possible existence
      of any Default; (vi) the financial condition of any Account Party or any
      Account Party's Subsidiaries; or (vii) the contents of any certificate,
      report or other document delivered hereunder or in connection herewith. The
      Administrative Agent shall not incur any liability by acting in reliance upon
      any notice, consent, certificate, statement, or other writing (which may be
      a
      bank wire, telex or similar writing) believed by it in good faith to be genuine
      or to be signed by the proper party or parties.

     

    SECTION
      7.07. Indemnification.
      Each
      Bank shall, ratably in accordance with its Commitment (determined as of the
      time
      that the applicable unreimbursed expense or indemnity payment is sought),
      indemnify the Administrative Agent (to the extent not reimbursed by the Company)
      against any cost, expense (including counsel fees and disbursements), claim,
      demand, action, loss or liability (except such as result from the Administrative
      Agent's gross negligence or willful misconduct) that the Administrative Agent
      may suffer or incur in connection with this Agreement or any action taken or
      omitted by the Administrative Agent hereunder. The Administrative Agent shall
      be
      fully justified in failing or refusing to take any action hereunder unless
      it
      shall first be indemnified to its satisfaction by the Banks pro rata against
      any
      and all liability, cost and expense that it may incur by reason of taking or
      continuing to take any such action.

     

    
      
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    SECTION
      7.08. Credit
      Decision.
      Each
      Bank acknowledges that it has, independently and without reliance upon the
      Administrative Agent or any other Bank, and based on such documents and
      information as it has deemed appropriate, made its own credit analysis and
      decision to enter into this Agreement. Each Bank also acknowledges that it
      will,
      independently and without reliance upon the Administrative Agent or any other
      Bank, and based on such documents and information as it shall deem appropriate
      at the time, continue to make its own credit decisions in taking or not taking
      any action under this Agreement.

     

    SECTION
      7.09. Successor
      Agent.
      The
      Administrative Agent may resign at any time by giving written notice thereof
      to
      the Banks and the Company. Upon any such resignation, the Required Banks shall
      have the right to appoint a successor Administrative Agent, which successor
      Administrative Agent shall be satisfactory to the Company, provided
      that no
      Default is continuing. If no successor Administrative Agent shall have been
      so
      appointed by the Required Banks, and shall have accepted such appointment,
      within 30 days after the retiring Administrative Agent gives notice of
      resignation, then the retiring Administrative Agent may, on behalf of the Banks,
      appoint a successor Agent, which shall be a commercial bank organized or
      licensed under the laws of the United States of America or of any State thereof
      and having a combined capital and surplus of at least $100,000,000 and (unless
      a
      Default has occurred and is continuing) shall otherwise be subject to the
      consent of the Company, which consent shall not be unreasonably withheld. Upon
      the acceptance of its appointment as Administrative Agent hereunder by a
      successor Administrative Agent, such successor Administrative Agent shall
      thereupon succeed to and become vested with all the rights and duties of the
      retiring Administrative Agent, and the retiring Administrative Agent shall
      be
      discharged from its duties and obligations hereunder. After any retiring
      Administrative Agent's resignation hereunder as Administrative Agent, the
      provisions of this Article shall inure to its benefit as to any actions taken
      or
      omitted to be taken by it while it was Administrative Agent.

     

    SECTION
      7.10. Delegation
      to Affiliates.
      The
      Account Party and the Banks agree that the Administrative Agent may delegate
      any
      of its duties under this Agreement to any of its Affiliates. Any such Affiliate
      (and such Affiliate's directors, officers, agents and employees) which performs
      duties in connection with this Agreement shall be entitled to the same benefits
      of the indemnification, waiver and other protective provisions to which the
      Administrative Agent is entitled under Articles VII and X.

     

    SECTION
      7.11. Joint
      Lead Arrangers and Other Agents.
      Notwithstanding anything herein to the contrary, none of the Joint Lead
      Arrangers and Joint Bookrunners, the Syndication Agent or the Documentation
      Agents listed on the cover page of this Agreement shall have any right, power,
      obligation, liability, responsibility or duty under this Agreement in its
      capacity as such, except in its respective capacity, if any, as a
      Bank.

     

    
      
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    ARTICLE
      VIII

     

    CHANGE
      IN
      CIRCUMSTANCES

     

    SECTION
      8.01. Basis
      for Determining Interest Rate Inadequate or Unfair.
      If on
      or prior to the first day of any Interest Period for any Euro-Dollar
      Borrowing:

     

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

     

    (b) the
      Required Banks advise the Administrative Agent that the LIBO Rate as determined
      by the Administrative Agent will not adequately and fairly reflect the cost
      to
      such Banks of funding their Euro-Dollar Loans for such Interest
      Period,

     

    the
      Administrative Agent shall forthwith give notice thereof to the Company and
      the
      Banks, whereupon until the Administrative Agent notifies the Company that the
      circumstances giving rise to such suspension no longer exist, the obligations
      of
      the Banks to make Euro-Dollar Loans shall be suspended. Unless the Company
      notifies the Administrative Agent at least two Domestic Business Days before
      the
      date of any Euro-Dollar Borrowing for which a Notice of Borrowing has previously
      been given that it elects not to borrow on such date, such Borrowing shall
      instead be made as a Base Rate Borrowing.

     

    SECTION
      8.02. Illegality.
      If,
      after the date of this Agreement, the adoption of any applicable law, rule
      or
      regulation, or any change in any applicable law, rule or regulation, or any
      change in the interpretation or administration thereof by any governmental
      authority, central bank or comparable agency charged with the interpretation
      or
      administration thereof, or compliance by any Bank (or its Applicable Lending
      Office) with any request or directive (whether or not having the force of law)
      of any such authority, central bank or comparable agency shall make it unlawful
      or impossible for any Bank (or its Applicable Lending Office) to make, continue,
      maintain or fund its Euro-Dollar Loans and such Bank shall so notify the
      Administrative Agent, the Administrative Agent shall forthwith give notice
      thereof to the other Banks and the Company, whereupon until such Bank notifies
      the Company and the Administrative Agent that the circumstances giving rise
      to
      such suspension no longer exist, the obligation of such Bank to make Euro-Dollar
      Loans shall be suspended. Before giving any notice to the Administrative Agent
      pursuant to this Section, such Bank shall designate a different Applicable
      Lending Office if such designation will avoid the need for giving such notice
      and will not, in the judgment of such Bank, be otherwise disadvantageous to
      such
      Bank. If such Bank shall determine that it may not lawfully continue to maintain
      and fund any of its outstanding Euro-Dollar Loans to maturity and shall so
      specify in such notice, the Company shall immediately prepay in full the then
      outstanding principal amount of each such Euro-Dollar Loan, together with
      accrued interest thereon. Concurrently with prepaying each such Euro-Dollar
      Loan, the Company shall borrow a Base Rate Loan in an equal principal amount
      from such Bank (on which interest and principal shall be payable
      contemporaneously with the related Euro-Dollar Loans of the other Banks), and
      such Bank shall make such a Base Rate Loan.

     

    
      
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    SECTION
      8.03. Increased
      Cost and Reduced Return.
      (a) If
      on or after the date hereof, in the case of any Loan or any obligation to make
      Loans or in the case of any Letter of Credit or any obligation to issue,
      participate in, renew or extend any Letter of Credit, the adoption of any
      applicable law, rule or regulation, or any change in any applicable law, rule
      or
      regulation, or any change in the interpretation or administration thereof by
      any
      governmental authority, central bank or comparable agency charged with the
      interpretation or administration thereof, or compliance by any Bank (or its
      Applicable Lending Office) with any request or directive (whether or not having
      the force of law) of any such authority, central bank or comparable agency
      shall
      impose, modify or deem applicable any reserve (including, without limitation,
      any such requirement imposed by the Board of Governors of the Federal Reserve
      System, but excluding with respect to any Euro-Dollar Loan any such requirement
      included in an applicable Euro-Dollar Reserve Percentage), special deposit,
      insurance assessment or similar requirement against assets of, deposits with
      or
      for the account of, or credit extended by, any Bank (or its Applicable Lending
      Office) or shall impose on any Bank (or its Applicable Lending Office) or the
      London interbank market any other condition affecting its Euro-Dollar Loans,
      its
      Notes or its obligation to make Euro-Dollar Loans or its obligation to issue
      or
      participate in Letters of Credit, any outstanding Letters of Credit or
      reimbursement claims in respect of LC Disbursements and the result of any of
      the
      foregoing is to increase the cost to such Bank (or its Applicable Lending
      Office) of making or maintaining any Euro-Dollar Loan or of issuing,
      participating in or maintaining any Letter of Credit, or to reduce the amount
      of
      any sum received or receivable by such Bank (or its Applicable Lending Office)
      under this Agreement or under other Credit Document with respect thereto, by
      an
      amount deemed by such Bank to be material, then, within 15 days after demand
      by
      such Bank (with a copy to the Administrative Agent), the Company shall pay
      to
      such Bank such additional amount or amounts as will compensate such Bank for
      such increased cost or reduction.

     

    (b) If
      any
      Bank shall have determined that, after the date hereof, the adoption of any
      applicable law, rule or regulation regarding capital adequacy, or any change
      in
      any applicable law, rule or regulation regarding capital adequacy, or any change
      in the interpretation or administration thereof by any governmental authority,
      central bank or comparable agency charged with the interpretation or
      administration thereof, or any request or directive regarding capital adequacy
      (whether or not having the force of law) of any such authority, central bank
      or
      comparable agency, has or would have the effect of reducing the rate of return
      on capital of such Bank (or its Parent) as a consequence of such Bank's
      obligations hereunder to a level below that which such Bank (or its Parent)
      could have achieved but for such adoption, change, request or directive (taking
      into consideration its policies with respect to capital adequacy) by an amount
      deemed by such Bank to be material, then from time to time, within 15 days
      after
      demand by such Bank (with a copy to the Administrative Agent), the Company
      shall
      pay to such Bank such additional amount or amounts as will compensate such
      Bank
      (or its Parent) for such reduction.

     

    
      
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    (c) Each
      Bank
      will promptly notify the Company and the Administrative Agent of any event
      of
      which it has knowledge, occurring after the date hereof, which will entitle
      such
      Bank to compensation pursuant to this Section and will designate a different
      Applicable Lending Office if such designation will avoid the need for, or reduce
      the amount of, such compensation and will not, in the judgment of such Bank,
      be
      otherwise disadvantageous to such Bank. A certificate of any Bank claiming
      compensation under this Section and setting forth the additional amount or
      amounts to be paid to it hereunder and, in reasonable detail, such Bank's
      computation of such amount or amounts, shall be conclusive in the absence of
      manifest error. In determining such amount, such Bank may use any reasonable
      averaging and attribution methods.

     

    SECTION
      8.04. Base
      Rate Loans Substituted for Affected Euro-Dollar Loans.
      If (i)
      the obligation of any Bank to make or continue Euro-Dollar Loans has been
      suspended pursuant to Section 8.02 or (ii) any Bank has demanded compensation
      under Section 8.03(a) or 8.05 and the Company shall, by at least five
      Euro-Dollar Business Days' prior notice to such Bank through the Administrative
      Agent, have elected that the provisions of this Section shall apply to such
      Bank, then, unless and until such Bank notifies the Company that the
      circumstances giving rise to such suspension or demand for compensation no
      longer apply:

     

    (a) all
      Loans
      which would otherwise be made, or continued, by such Bank as Euro-Dollar Loans
      shall be made instead as, or converted into, Base Rate Loans (on which interest
      and principal shall be payable contemporaneously with the related Euro-Dollar
      Loans of the other Banks), and

     

    (b) after
      each of its Euro-Dollar Loans has been repaid, all payments of principal which
      would otherwise be applied to repay such Euro-Dollar Loans shall be applied
      to
      repay its Base Rate Loans instead.

     

    
      
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    SECTION
      8.05. Taxes.
      (a) For
      purposes of this Section, the following terms have the following
      meanings:

     

    "Taxes"
      means
      any and all present or future taxes, duties, levies, imposts, deductions,
      charges or withholdings of any nature with respect to any payment by any Account
      Party or the Guarantor pursuant to this Agreement or any other Credit Document,
      and all liabilities with respect thereto, excluding, in the case of each Bank
      and the Administrative Agent, taxes imposed on its net income, and franchise
      or
      similar taxes imposed on it, by a jurisdiction under the laws of which such
      Bank
      or the Administrative Agent (as the case may be) is organized or in which its
      principal executive office is located or, in the case of each Bank, in which
      its
      Applicable Lending Office is located (all such excluded taxes being hereinafter
      referred to as "Domestic
      Taxes").
      If
      the form provided by a Bank pursuant to Section 8.05(d) at the time such Bank
      first becomes a party to this Agreement indicates a United States interest
      withholding tax rate in excess of zero, any United States interest withholding
      tax at such rate imposed on payments by the Company under this Agreement or
      any
      other Credit Document shall be excluded from the definition of
      "Taxes".

     

    "Other
      Taxes"
      means
      any present or future stamp or documentary taxes and any other excise or
      property taxes, or similar charges or levies, which arise from any payment
      made
      pursuant to this Agreement or any other Credit Document or from the execution,
      delivery, registration or enforcement of, or otherwise with respect to, this
      Agreement or any other Credit Document.

     

    (b) Any
      and
      all payments by any Account Party or the Guarantor to or for the account of
      any
      Bank or the Administrative Agent hereunder or under any other Credit Document
      shall be made without deduction or withholding for any Taxes or Other Taxes;
      provided
      that, if
      any Account Party or the Guarantor shall be required by law to deduct any Taxes
      or Other Taxes from any such payments, (i) the sum payable shall be increased
      as
      necessary so that after making all required deductions and withholdings
      (including deductions and withholdings applicable to additional sums payable
      under this Section) such Bank or the Administrative Agent (as the case may
      be)
      receives an amount equal to the sum it would have received had no such
      deductions or withholdings been made, (ii) such Account Party or the Guarantor
      (as the case may be) shall make such deductions or withholdings, (iii) such
      Account Party or the Guarantor (as the case may be) shall pay the full amount
      deducted or withheld to the relevant taxation authority or other authority
      in
      accordance with applicable law and (iv) such Account Party or the Guarantor
      (as
      the case may be) shall promptly furnish to the Administrative Agent, at its
      address referred to in Section 10.01, the original or a certified copy of a
      receipt evidencing payment thereof, and, if such receipt relates to Taxes or
      Other Taxes in respect of a sum payable to any Bank, the Administrative Agent
      shall promptly deliver such original or certified copy to such
      Bank.

     

    
      
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    (c) The
      Company agrees to indemnify each Bank and the Administrative Agent for the
      full
      amount of Taxes or Other Taxes (including, without limitation, any Taxes or
      Other Taxes imposed or asserted by any jurisdiction on amounts payable under
      this Section), whether or not correctly or legally imposed, paid by such Bank
      or
      the Administrative Agent (as the case may be) and any liability (including
      penalties, interest and expenses) arising therefrom or with respect thereto.
      In
      addition, the Company agrees to indemnify each Bank and the Administrative
      Agent
      for all Domestic Taxes of such Bank or the Administrative Agent (calculated
      based on a hypothetical basis at the maximum marginal rate for a corporation)
      and any liability (including penalties, interest and expenses to the extent
      not
      attributable to the gross negligence or willful misconduct of each Bank or
      the
      Administrative Agent, as the case may be) arising therefrom or with respect
      thereto, in each case to the extent that such Domestic Taxes result from any
      payment or indemnification pursuant to this Section for any taxes imposed by
      any
      jurisdiction for which the Company or any Account Party is responsible under
      Sections 8.05(a), (b) or (c). This indemnification shall be paid within 30
      days
      after such Bank or Agent, as the case may be, makes demand
      therefor.

     

    (d) At
      least
      five Domestic Business Days prior to the first date on which interest or fees
      are payable hereunder for the account of any Bank, each Bank that is not
      incorporated under the laws of the United States of America or a state thereof
      agrees that it will deliver to each of the Company and the Administrative Agent
      two duly completed copies of United States Internal Revenue Service Form W-8BEN
      or W-8ECI, certifying in either case that such Bank is entitled to receive
      payments under this Agreement and the Notes without deduction or withholding
      of
      any United States federal income taxes. Each Bank which so delivers a Form
      W-8BEN or W-8ECI further undertakes to deliver to each of the Company and the
      Administrative Agent two additional copies of such form (or successor form)
      on
      or before the date that such form expires or becomes obsolete or after the
      occurrence of any event requiring a change in the most recent form so delivered
      by it, and such amendments thereto or extensions or renewals thereof as may
      be
      reasonably requested by the Company or the Administrative Agent, in each case
      certifying that such Bank is entitled to receive payments under this Agreement
      and the Notes without deduction or withholding of any United States federal
      income taxes, unless an event (including without limitation any change in
      treaty, law or regulation) has occurred prior to the date on which any such
      delivery would otherwise be required which renders all such forms inapplicable
      or which would prevent such Bank from duly completing and delivering any such
      form with respect to it and such Bank advises the Company and the Administrative
      Agent that it is not capable of receiving payments without any deduction or
      withholding of United States federal income tax.

     

    (e) For
      any
      period with respect to which a Bank has failed to provide the Company or the
      Administrative Agent with the appropriate form as required by Section 8.05(d)
      (whether or not such Bank is lawfully able to do so, unless such failure is
      due
      to a change in treaty, law or regulation occurring subsequent to the date on
      which such form originally was required to be provided), such Bank shall not
      be
      entitled to indemnification under Section 8.05(b) or (c) with respect to any
      withholding of the United States federal income tax; provided
      that if
      a Bank, which is otherwise exempt from or subject to a reduced rate of
      withholding tax, becomes subject to Taxes because of its failure to deliver
      a
      form required hereunder, the Company shall take such steps as such Bank shall
      reasonably request to assist such Bank to recover such Taxes.

     

    
      
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    (f) If
      any
      Account Party or the Guarantor is required to pay additional amounts to or
      for
      the account of any Bank pursuant to this Section as a result of a change of
      law
      occurring after the date hereof, then such Bank, at the request of the Company,
      will change the jurisdiction of its Applicable Lending Office if, in the sole
      judgment of such Bank, such change (i) will eliminate or reduce any such
      additional payment which may thereafter accrue and (ii) is not otherwise
      disadvantageous to such Bank.

     

    (g) Each
      Bank
      and the Administrative Agent shall, at the request of the Company, use
      reasonable efforts (consistent with applicable legal and regulatory
      restrictions) to file any certificate or document requested by the Company
      if
      the making of such a filing would avoid the need for or reduce the amount of
      any
      such additional amounts payable to or for the account of such Bank or the
      Administrative Agent (as the case may be) pursuant to this Section which may
      thereafter accrue and would not, in the sole judgment of such Bank or the
      Administrative Agent, require such Bank or the Administrative Agent to disclose
      any confidential or proprietary information or be otherwise disadvantageous
      to
      such Bank or the Administrative Agent.

     

    (h) Notwithstanding
      the foregoing, nothing in this Section shall interfere with the rights of any
      Bank to conduct its fiscal or tax affairs in such manner as it deems
      fit.

     

    SECTION
      8.06. Regulation
      D Compensation.
      For so
      long as any Bank maintains reserves against "Eurocurrency liabilities" (or
      any
      other category of liabilities which includes deposits by reference to which
      the
      interest rate on Euro-Dollar Loans is determined or any category of extensions
      of credit or other assets which includes loans by a non-United States office
      of
      such Bank to United States residents), and as a result the cost to such Bank
      (or
      its Applicable Lending Office) of making or maintaining its Euro-Dollar Loans
      is
      increased, then such Bank may require the Company to pay, contemporaneously
      with
      each payment of interest on the Euro-Dollar Loans, additional interest on the
      related Euro-Dollar Loan of such Bank at a rate per annum up to but not
      exceeding the excess of (i) (A) the applicable LIBO Rate divided by (B) one
      minus
      the
      Euro-Dollar Reserve Percentage over (ii) the applicable LIBO Rate. Any Bank
      wishing to require payment of such additional interest (x) shall so notify
      the
      Company and the Administrative Agent, in which case such additional interest
      on
      the Euro-Dollar Loans of such Bank shall be payable to such Bank at the place
      indicated in such notice with respect to each Interest Period commencing at
      least three Euro-Dollar Business Days after the giving of such notice and (y)
      shall furnish to the Company at least five Euro-Dollar Business Days prior
      to
      each date on which interest is payable on the Euro-Dollar Loans an officer's
      certificate setting forth the amount to which such Bank is then entitled under
      this Section (which shall be consistent with such Bank's good faith estimate
      of
      the level at which the related reserves are maintained by it). Each such
      certificate shall be accompanied by such information as the Company may
      reasonably request as to the computation set forth therein.

     

    
      
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    ARTICLE
      IX

     

    GUARANTY

     

    SECTION
      9.01. The
      Guaranty.
      The
      Company hereby unconditionally guarantees the full and punctual payment of
      all
      reimbursement obligations in respect of LC Disbursements and all interest
      thereon payable by each Subsidiary Account Party pursuant to this Agreement
      (including, without limitation, any Subsidiary Account Party that shall become
      party hereto after the date hereof pursuant to Section 10.13), and the full
      and
      punctual payment of all other amounts payable by each Subsidiary Account Party
      under this Agreement, including amounts payable as cover in respect of
      outstanding letter of credit exposure pursuant to Sections 2.03(e) and
      6.01. Upon failure by any Subsidiary Account Party to pay punctually any such
      amount, the Company shall forthwith on demand pay the amount not so paid at
      the
      place and in the manner specified in this Agreement.

     

    SECTION
      9.02. Guaranty
      Unconditional.
      The
      obligations of the Company hereunder shall be unconditional, absolute and
      continuing and, without limiting the generality of the foregoing, shall not
      be
      released, discharged or otherwise affected by:

     

    (i)
      any
      extension, renewal, settlement, compromise, waiver or release in respect of
      any
      obligation of any Subsidiary Account Party under this Agreement, by operation
      of
      law or otherwise;

     

    (ii)
      any
      modification or amendment of or supplement to this Agreement;

     

    (iii)
      any
      release, impairment, non-perfection or invalidity of any direct or indirect
      security for any obligation of any Subsidiary Account Party under this
      Agreement;

     

    
      
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    (iv)
      any
      change in the corporate existence, structure or ownership of any Subsidiary
      Account Party, or any insolvency, bankruptcy, reorganization or other similar
      proceeding affecting any Subsidiary Account Party or its assets or any resulting
      release or discharge of any obligation of any Subsidiary Account Party contained
      in this Agreement;

     

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

     

    (vi)
      any
      invalidity or unenforceability relating to or against any Subsidiary Account
      Party for any reason of this Agreement, or any provision of applicable law
      or
      regulation purporting to prohibit the payment by any Subsidiary Account Party
      of
      any reimbursement obligation, interest or any other amount payable by it under
      this Agreement;

     

    (vii)
      any
      other act or omission to act or delay of any kind by Subsidiary Account Party,
      the Administrative Agent, any Bank or any other Person or any other circumstance
      whatsoever which might, but for the provisions of this paragraph, constitute
      a
      legal or equitable discharge of or defense to the Company's obligations
      hereunder; or

     

    (viii)
      any Bank and its Affiliates accepting deposits from, lending money to, or
      otherwise engaging in any kind of business with the Company, its Subsidiaries,
      the Subsidiary Account Parties or the Affiliates of any thereof.

     

    SECTION
      9.03. Discharge
      Only Upon Payment In Full; Reinstatement In Certain
      Circumstances.
      The
      Company's obligations hereunder shall remain in full force and effect until
      the
      Commitments shall have terminated and all reimbursement obligations, interest
      and all other amounts payable by the Company and each Subsidiary Account Party
      under this Agreement shall have been paid in full. If at any time any payment
      of
      reimbursement obligation, interest or any other amount payable by any Subsidiary
      Account Party under this Agreement is rescinded or must be otherwise restored
      or
      returned upon the insolvency, bankruptcy or reorganization of such Subsidiary
      Account Party or otherwise, the Company's obligations hereunder with respect
      to
      such payment shall be reinstated at such time as though such payment had been
      due but not made at such time.

     

    SECTION
      9.04. Waiver
      by the Company.
      The
      Company irrevocably waives acceptance hereof, presentment, demand, protest
      and
      any notice not provided for herein, as well as any requirement that at any
      time
      any action be taken by any Person against any Subsidiary Account Parties or
      any
      other Person.

     

    
      
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    SECTION
      9.05. Subrogation.
      Upon
      making any payment with respect to the obligations of any Subsidiary Account
      Party hereunder, the Company shall be subrogated to the rights of the payee
      against such Subsidiary Account Party with respect to such payment; provided
      that the
      Company shall not enforce any payment by way of subrogation against such
      Subsidiary Account Party so long as (i) any Bank has any Commitment hereunder
      or
      (ii) any amount payable hereunder remains unpaid.

     

     

    ARTICLE
      X

     

    MISCELLANEOUS

     

    SECTION
      10.01. Notices.
      All
      notices, requests and other communications to any party hereunder shall be
      in
      writing (including bank wire, telex, facsimile transmission or similar writing,
      or by electronic communication, if arrangements for doing so have been approved
      by such party) and shall be given to such party: (a) in the case of any
      Account Party, at the Company's address or telex or telecopier number set forth
      on the Company's signature page hereof, (b) in the case of the Administrative
      Agent, at its address or telex or telecopier number set forth on its respective
      signature page hereof, (c) in the case of any Bank, at its address or telex
      or telecopier number set forth in its Administrative Questionnaire or
      (d) in the case of any party, such other address or telex or telecopier
      number as such party may hereafter specify for the purpose by notice to the
      Administrative Agent and the Company. Each such notice, request or other
      communication shall be effective (i) if given by telex, when such telex is
      transmitted to the telex number specified in this Section and the appropriate
      answerback is received, (ii) if given by mail, 72 hours after such
      communication is deposited in the mails with first class postage prepaid,
      addressed as aforesaid and return receipt requested, (iii) if given by
      telecopier, when transmitted to the telecopier number specified in this Section
      or (iv) if given by any other means, when delivered at the relevant address
      specified by such party pursuant to this Section; provided
      that
      notices to the Administrative Agent under Article II or Article VIII
      shall not be effective until received.

     

    Notices
      and other communications to the Banks hereunder may be delivered or furnished
      by
      electronic communications pursuant to procedures approved by the Administrative
      Agent; provided
      that the
      foregoing shall not apply to notices pursuant to Article II unless otherwise
      agreed by the Administrative Agent and the applicable Bank. The Administrative
      Agent or the Account Parties may, in its discretion, agree to accept notices
      and
      other communications to it hereunder by electronic communications pursuant
      to
      procedures approved by it; provided
      that
      approval of such procedures may be limited to particular notices or
      communications.

     

    
      
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    SECTION
      10.02. No
      Waivers.
      No
      failure or delay by the Administrative Agent or any Bank in exercising any
      right, power or privilege hereunder or under any other Credit Document shall
      operate as a waiver thereof nor shall any single or partial exercise thereof
      preclude any other or further exercise thereof or the exercise of any other
      right, power or privilege. The rights and remedies herein provided shall be
      cumulative and not exclusive of any rights or remedies provided by
      law.

     

    SECTION
      10.03. Expenses;
      Indemnification; Non-Liability of Banks.

     

    (a) The
      Company shall pay (i) all out-of-pocket expenses of the Administrative
      Agent, including reasonable fees and disbursements of special counsel for the
      Administrative Agent, in connection with the preparation of this Agreement,
      any
      waiver or consent hereunder or any amendment hereof or any Default or alleged
      Default hereunder and (ii) if an Event of Default occurs, all out-of-pocket
      expenses incurred by the Administrative Agent and each Bank, including fees
      and
      disbursements of counsel including costs allocated to in-house counsel, in
      connection with such Event of Default and collection, bankruptcy, insolvency
      and
      other enforcement proceedings resulting therefrom.

     

    (b) The
      Company agrees to indemnify the Administrative Agent, each Bank and each
      Confirming Bank, their Affiliates and the respective directors, officers,
      agents, advisors and employees of the foregoing (each an "Indemnitee")
      and
      hold each Indemnitee harmless from and against any and all liabilities, losses,
      damages, costs and expenses of any kind, including, without limitation, the
      reasonable fees and disbursements of counsel and costs of settlement, which
      may
      be incurred by such Indemnitee in connection with any investigative,
      administrative or judicial proceeding (whether or not such Indemnitee shall
      be
      designated a party thereto) relating to or arising out of this Agreement or
      any
      actual or proposed use of proceeds of Loans or of the Letters of Credits;
provided
      that no
      Indemnitee shall have the right to be indemnified hereunder for its own gross
      negligence or willful misconduct as determined by a court of competent
      jurisdiction or for the breach by such Indemnitee of its obligations hereunder
      or, in the case of a Confirming Bank, under its Confirming Bank
      Agreement.

     

    SECTION
      10.04. Sharing
      of Set-Offs.
      Each
      Bank agrees that if it shall, by exercising any right of set-off or counterclaim
      or otherwise, receive payment of a proportion of the aggregate amount of
      principal and interest due with respect to any Loan made by it or reimbursement
      obligation or interest due with respect to any LC Disbursement made by it under
      a Letter of Credit which is greater than the proportion received by any other
      Bank in respect of the aggregate amount of principal and interest due with
      respect to any Loan made by such other Bank or reimbursement obligation or
      interest due, as the case may be, with respect to any LC Disbursement made
      by
      such other Bank under such Letter of Credit, the Bank receiving such
      proportionately greater payment shall purchase such participations in the Loans
      held by or the LC Exposure by the other Banks under such Letter of Credit,
      as
      applicable, and such other adjustments shall be made, as may be required so
      that
      all such payments of principal and interest with respect to the Loans and
      reimbursement obligations and interest with respect to LC Disbursements made
      by
      the Banks under such Letter of Credit shall be shared by the Banks pro rata;
      provided
      that
      nothing in this Section shall impair the right of any Bank to exercise any
      right
      of set-off or counterclaim it may have and to apply the amount subject to such
      exercise to the payment of indebtedness of the applicable Account Party other
      than its indebtedness under this Agreement. Each Account Party agrees, to the
      fullest extent it may effectively do so under applicable law, that any holder
      of
      a participation in any Loan or LC Exposure, whether or not acquired pursuant
      to
      the foregoing arrangements, may exercise rights of set-off or counterclaim
      and
      other rights with respect to such participation as fully as if such holder
      of a
      participation were a direct creditor of such Account Party in the amount of
      such
      participation.

     

    
      
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          Agreement

         

      

      
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    SECTION
      10.05. Amendments
      and Waivers.
      Any
      provision of this Agreement may be amended or waived if, but only if, such
      amendment or waiver is in writing and is signed by each Account Party and the
      Required Banks or by the Administrative Agent (with the consent of the Required
      Banks) (and, if the rights or duties of the Administrative Agent or any Fronting
      Issuing Bank, in such capacity, are affected thereby, by the Administrative
      Agent or any Fronting Issuing Bank, as the case may be); provided
      that the
      Administrative Agent may, with the consent of the Company (which shall not
      be
      unreasonably withheld), specify by notice to the Banks modifications in the
      procedures set forth in Section 2.01(b); provided,
      further,
      that
      the consent of each Bank affected thereby shall be required with respect to
      any
      amendment, waiver or modification that (i) increases the amount or extends
      the expiry date of the Commitment of any Bank, increases the LC Exposure of
      such
      Bank or otherwise subjects any Bank to any additional obligation,
      (ii) reduces the principal amount of any Loan or the amount of any
      reimbursement obligation of any Account Party in respect of any LC Disbursement,
      the rate or amount of interest thereon or any fees payable to such Bank
      hereunder, (iii) postpones the scheduled date of payment of the principal
      amount of any Loan or for reimbursement of any LC Disbursement, or any interest
      thereon, or any fees payable hereunder, or waives or excuses any such payment,
      or postpones the scheduled date of expiration of any Commitment, or
      (iv) alters the manner in which reimbursement payments, payments or
      prepayments of principal, interest or payment of other amounts hereunder shall
      be applied as among the Banks; provided,
      further,
      that
      the consent of 100% of the Banks shall be required with respect to (x) any
      change in the percentage of the Commitments or of the Credit Exposure, or the
      number of Banks, which shall be required for the Banks or any of them to take
      any action under this Section or any other provision of this Agreement,
      (y) the release of any of the collateral provided for cover of the LC
      Exposure pursuant to Sections 2.03(e) and 6.01 other than as expressly provided
      in Section 2.03(e) or (z) any change in the obligations of the Company
      under Article IX. 

     

    
      
        Credit
          Agreement

         

      

      
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    SECTION
      10.06. Successors
      and Assigns.

     

    (a) The
      provisions of this Agreement shall be binding upon and inure to the benefit
      of
      the parties hereto and their respective successors and assigns; provided,
      however,
      that no
      Account Party may assign or otherwise transfer any of its rights or obligations
      under this Agreement, without the prior written consent of the
      Banks.

     

    (b) Any
      Bank
      may at any time grant to one or more banks or other institutions (each a
      "Participant")
      participating interests in its Commitment or the Loans or any or all of its
      Letters of Credit. In the event of any such grant by a Bank of a participating
      interest to a Participant, whether or not upon notice to the Company and the
      Administrative Agent, such Bank shall remain solely responsible for the
      performance of its obligations hereunder, and the Account Parties and the
      Administrative Agent shall continue to deal solely and directly with such Bank
      in connection with such Bank's rights and obligations under this Agreement.
      Any
      agreement pursuant to which any Bank may grant such a participating interest
      shall provide that such Bank shall retain the sole right and responsibility
      to
      enforce the obligations of the Account Parties hereunder including, without
      limitation, the right to approve any amendment, modification or waiver of any
      provision of this Agreement; provided
      that
      such participation agreement may provide that such Bank will not agree to any
      modification, amendment or waiver of this Agreement described in
      clause (i), (ii), (iii), (iv), (x), (y) or (z) of Section 10.05
      without the consent of the Participant. Each Account Party agrees that each
      Participant shall, to the extent provided in its participation agreement, be
      entitled to the benefits of Article VIII with respect to its participating
      interest. An assignment or other transfer which is not permitted by
      subsection (c) or (d) below shall be given effect for purposes of this
      Agreement only to the extent of a participating interest granted in accordance
      with this subsection (b).

     

    (c) Any
      Bank
      may at any time assign to one or more NAIC Approved Banks (each an "Assignee")
      all,
      or a proportionate part of all, of its rights and obligations under this
      Agreement, and such Assignee shall assume such rights and obligations, pursuant
      to an Assignment and Assumption executed by such Assignee and such transferor
      Bank, with (and subject to) the consent of the Company, which shall not be
      unreasonably withheld, and the Administrative Agent, which shall not be
      unreasonably withheld; provided
      that (i)
      if an Assignee is an Affiliate of any Bank or was a Bank immediately prior
      to
      such assignment, no such consent of the Company shall be required and (ii)
      if an
      Assignee was a Bank immediately prior to such assignment, no such consent of
      the
      Administrative Agent shall be required; provided,
      further,
      that if
      an Event of Default occurs and is continuing under Section 6.01(a), 6.01(g)
      or
      6.01(h) with respect to the Company, no such consent of the Company shall be
      required; and provided,
      further,
      that
      any such assignment (other than an assignment to another Bank or an Affiliate
      of
      any Bank or an assignment of the entire remaining amount of the transferor
      Bank's Commitment and interests in outstanding Loans and Letters of Credit)
      shall be in an amount that is at least $5,000,000 unless otherwise agreed by
      the
      Account Parties and the Administrative Agent. Upon execution and delivery of
      such Assignment and Assumption and payment by such Assignee to such transferor
      Bank of an amount equal to the purchase price agreed between such transferor
      Bank and such Assignee, such Assignee shall be a Bank party to this Agreement
      and shall have all the rights and obligations of a Bank with a Commitment as
      set
      forth in such instrument of assumption, and the transferor Bank shall be
      released from its obligations hereunder to a corresponding extent, and no
      further consent or action by any party shall be required. In connection with
      any
      such assignment, the transferor Bank or Assignee shall pay to the Administrative
      Agent an administrative fee for processing such assignment in the amount of
      $3,500. If the Assignee is not incorporated under the laws of the United States
      of America or a state thereof, it shall, prior to the first date on which
      interest or fees are payable hereunder for its account, deliver to the Company
      and the Administrative Agent certification as to exemption from deduction or
      withholding of any United States federal income taxes in accordance with
      Section 8.05(d).

     

    
      
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        -66-

        
          

        

      

      
         

      

    

    (d) Any
      Bank
      may at any time assign all or any portion of its rights under this Agreement
      to
      any Person to secure obligations of such Bank, including, without limitation,
      to
      one or more of the Federal Reserve Banks which comprise the Federal Reserve
      System. No such assignment shall release the transferor Bank from its
      obligations hereunder.

     

    (e) No
      Assignee, Participant or other transferee of any Bank's rights shall be entitled
      to receive any greater payment under Sections 8.03, 8.05 or 8.06 than such
      Bank would have been entitled to receive with respect to the rights transferred,
      unless such transfer is made (i) with the Company's prior written consent
      or by reason of the provisions of Section 8.02, 8.03 or 8.05 requiring such
      Bank to designate a different Applicable Lending Office under certain
      circumstances or (ii) at a time when the circumstances giving rise to such
      greater payment did not exist.

     

    SECTION
      10.07. Collateral.
      Each of
      the Banks represents to the Administrative Agent and each of the other Banks
      that it in good faith is not relying upon any "margin stock" (as defined in
      Regulation U) as collateral in the extension or maintenance of the credit
      provided for in this Agreement.

     

    SECTION
      10.08. New
      York Law.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of New York.

     

    
      
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          Agreement

         

      

      
        -67-

        
          

        

      

      
         

      

    

    SECTION
      10.09. Judicial
      Proceedings.

     

    (a) Submission
      to Jurisdiction.
      Each
      Account Party hereby submits to the nonexclusive jurisdiction of the United
      States District Court for the Southern District of New York and of any New
      York
      State court sitting in New York City for purposes of all legal proceedings
      arising out of or relating to this Agreement or any other Credit Document or
      the
      transactions contemplated hereby. Each Account Party irrevocably waives, to
      the
      fullest extent permitted by law, any objection which it may now or hereafter
      have to the laying of the venue of any such proceeding brought in such a court
      and any claim that any such proceeding brought in such a court has been brought
      in an inconvenient forum.

     

    (b) Appointment
      of Agent for Service of Process.
      Each
      Subsidiary Account Party irrevocably designates and appoints the Company, and
      the Company hereby accepts such appointment, at its office in Philadelphia,
      Pennsylvania set forth beneath the Company's signature on the signature page
      hereof, as the authorized agent of such Subsidiary Account Party, to accept
      and
      acknowledge on its behalf, service of any and all process which may be served
      in
      any suit, action or proceeding of the nature referred to in
      Section 10.09(a) above in any federal or New York State court sitting in
      New York City. Said designation and appointment shall be irrevocable by each
      Subsidiary Account Party until all reimbursement obligations, interest thereon
      and all other amounts payable hereunder shall have been paid in full in
      accordance with the provisions hereof and thereof or, if earlier, when such
      Subsidiary Account Party is terminated as an Account Party hereunder pursuant
      to
      Section 10.13.

     

    (c) Service
      of Process.
      Each
      Account Party hereby consents to process being served in any suit, action or
      proceeding of the nature referred to in subsection (a) above in any federal
      or New York State court sitting in New York City by service of process upon
      its
      agent appointed as provided in subsection (b) above; provided
      that, to
      the extent lawful and possible, notice of said service upon such agent shall
      be
      mailed by registered or certified air mail, postage prepaid, return receipt
      requested, to such Account Party at its address specified on the signature
      page
      hereof (or, in the case of any Subsidiary Account Party, on the signature page
      of the Subsidiary Joinder Agreement to which it is a party) or to any other
      address of which such Account Party shall have given written notice to the
      applicable Bank. Each Account Party irrevocably waives, to the fullest extent
      permitted by law, all claim of error by reason of any such service in such
      manner and agrees that such service shall be deemed in every respect effective
      service of process upon such Account Party in any such suit, action or
      proceeding and shall, to the fullest extent permitted by law, be taken and
      held
      to be valid and personal service upon and personal delivery to such Account
      Party.

     

    (d) No
      Limitation on Service or Suit.
      Nothing
      in this Section shall affect the right of the Administrative Agent or any Bank
      to serve process in any other manner permitted by law or limit the right of
      the
      Administrative Agent or any Bank to bring proceedings against any Account Party
      in the courts of any jurisdiction or jurisdictions.

     

    
      
        Credit
          Agreement

         

      

      
        -68-

        
          

        

      

      
         

      

    

    SECTION
      10.10. Counterparts;
      Integration.
      This
      Agreement may be signed in any number of counterparts, each of which shall
      be an
      original, with the same effect as if the signatures thereto and hereto were
      upon
      the same instrument. This Agreement constitutes the entire agreement and
      understanding among the parties hereto and supersedes any and all prior
      agreements and understandings, oral or written, relating to the subject matter
      hereof.

     

    SECTION
      10.11. Confidentiality.
      The
      Administrative Agent and each Bank agree that they will maintain the
      confidentiality of, and will not use for any purpose (other than exercising
      its
      rights and enforcing its remedies hereunder and under the other Credit
      Documents), any written or oral information provided under this Agreement by
      or
      on behalf of the Account Parties (hereinafter collectively called "Confidential
      Information"),
      subject to the Administrative Agent's and each Bank's (a) obligation to
      disclose any such 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 such Confidential Information to its
      bank examiners, auditors, counsel and other professional advisors and to other
      Banks and to its subsidiaries and Affiliates and the subsidiaries and Affiliates
      of its holding company, provided
      that the
      Administrative Agent or such Bank, as the case may be, shall cause each such
      subsidiary or Affiliate to maintain the Confidential Information on the same
      terms as the terms provided herein, (c) right to disclose any such
      Confidential Information in connection with any litigation or dispute involving
      the Banks and the Company or any of its Subsidiaries and Affiliates and
      (d) right to provide such information to participants, prospective
      participants or prospective assignees pursuant to Section 10.06 or to its
      prospective Confirming Bank or Confirming Bank if prior thereto such
      participant, prospective participant, prospective assignee, prospective
      Confirming Bank or Confirming Bank agrees in writing to maintain the
      confidentiality of such information on terms substantially similar to those
      of
      this Section as if it were a "Bank" party hereto. Notwithstanding the foregoing,
      any such information supplied to a Bank, participant, prospective participant,
      prospective assignee, prospective Confirming Bank or Confirming Bank under
      this
      Agreement shall cease to be Confidential Information if it is or becomes known
      to such Person by other than unauthorized disclosure, or if it is, at the time
      of disclosure, or becomes a matter of public knowledge.

     

    SECTION
      10.12. WAIVER
      OF JURY TRIAL.
      EACH OF
      THE ACCOUNT PARTIES, THE ADMINISTRATIVE AGENT AND THE BANKS HEREBY IRREVOCABLY
      WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT
      OF
      OR RELATING TO THIS AGREEMENT, THE NOTES OR THE TRANSACTIONS CONTEMPLATED
      HEREBY.

     

    
      
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    SECTION
      10.13. Joinder
      and Termination of Subsidiary Account Party.
      

     

    (a) Any
      direct or indirect wholly-owned Subsidiary of the Company that is organized,
      licensed or regulated under applicable law as an insurance or reinsurance
      company may, with the consent of the Company, become a party to this Agreement
      as an Account Party by delivering an executed Subsidiary Joinder Agreement,
      substantially in the form of Exhibit F hereto, to the Administrative Agent
      for
      acceptance by it (which shall promptly notify the Banks), provided
      that on
      and as of the date of acceptance of such Subsidiary Joinder Agreement by the
      Administrative Agent (i) no Default shall have occurred and be continuing,
      (ii) each of the representations and warranties contained in this Agreement
      (other than the representations and warranties set forth in Sections 4.04(e)
      and
      4.05 as to any matter which has theretofore been disclosed in writing by the
      Account Parties to the Banks) shall be true with the same force and effect
      as if
      made on and as of such date (or, if any such representation or warranty is
      expressly stated to have been made as of a specific date, as of such specific
      date), (iii) such Subsidiary Account Party shall be deemed to have appointed
      the
      Company as its authorized agent pursuant to Section 10.09(b) to accept service
      of any and all process which may be served in any suit, action or proceeding
      of
      any nature in any federal or New York State court sitting in New York City
      arising out of or relating to this Agreement or any other Credit Document or
      the
      transactions contemplated hereby and (iv) such other documents as the
      Administrative Agent shall reasonably request, which may include opinions of
      counsel and other documents that are consistent with conditions set forth in
      Section 3.02, each in form and substance satisfactory to the Administrative
      Agent.

     

    (b) The
      Company may, at any time at which a Subsidiary Account Party shall not be an
      Account Party with respect to an outstanding Letter of Credit and which shall
      have no unpaid LC Disbursements or unpaid interest on any LC Disbursements,
      terminate such Subsidiary Account Party as an Account Party hereunder by
      delivering an executed notice thereof, substantially in the form of Exhibit
      G
      hereto, to the Administrative Agent (which shall promptly notify the Banks).
      Immediately upon the receipt by the Administrative Agent of such notice, all
      commitments of the Banks to issue Letters of Credit for the account of such
      Subsidiary Account Party and all rights of such Subsidiary Account Party
      hereunder, shall terminate and such Subsidiary Account Party shall immediately
      cease to be an Account Party hereunder; provided
      that all
      obligations of such Subsidiary Account Party as an Account Party hereunder
      arising in respect of any period in which such Subsidiary Account Party was,
      or
      on account of any action or inaction by such Subsidiary Account Party as, an
      Account Party hereunder shall survive such termination.

     

    SECTION
      10.14. USA
      PATRIOT Act.
      Each
      Bank hereby notifies the Account Parties that pursuant to the requirements
      of
      the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October
      26, 2001)), such Bank may be required to obtain, verify and record
      information that identifies the Account Parties, which information includes
      the
      name and address of the Account Parties and other information that will allow
      such Bank to identify the Account Parties in accordance with said
      Act.

     

    
      
        Credit
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        -70-

        
          

        

      

      
         

      

    

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

     

    LINCOLN
      NATIONAL CORPORATION

    

    

    By:
      /s/
      Frederick J. Crawford

    Name:
      Frederick J. Crawford

    Title:
      Senior Vice President &

    Chief
      Financial Officer

    

    

    By:
      /s/
      James E. Cruickshank

    Name:
      James E. Cruickshank

    Title:
      2nd
      Vice
      President &

    Assistant
      Treasurer

    

    U.S.
      Federal Tax Identification No.: 35-1140070

     

    

    Centre
      Square, West Tower

    1500
      Market Street, Suite 3900

    Philadelphia,
      PA 19102-2112

    Attention:
      Treasurer's Office

    Tel: (215)
      448-1435

    Fax: (215)
      448-3954

    
      
        Credit
          Agreement

         

      

      
         

        
          

        

      

      
         

      

    

    

    SUBSIDIARY
      ACCOUNT PARTIES

    

    LINCOLN
      NATIONAL REINSURANCE

    COMPANY
      (BARBADOS) LIMITED

    

    

    By:
      /s/
      James E. Cruickshank

    Name:
      James E. Cruickshank

    Title:
      Treasurer 

     

    

    U.S.
      Federal Tax Identification No.: 35-1716060

     

    

    THE
      LINCOLN NATIONAL LIFE INSURANCE 

    COMPANY

    

    

    By:
      /s/
      Douglas N. Miller

    Name:
      Douglas N. Miller

    Title:
      Senior Vice President

    

    U.S.
      Federal Tax Identification No.: 35-0472300

     

    

    LFG
      SOUTH
      CAROLINA REINSURANCE COMPANY

    

    

    By:
      /s/
      James E. Cruickshank

    Name:
      James E. Cruickshank

         
      Title:
      Treasurer

    

    U.S.
      Federal Tax Identification No.: 20-3743123

     

    
      
        Credit
          Agreement

         

      

      
         

        
          

        

      

      
         

      

    

    

    LINCOLN
      REINSURANCE COMPANY OF BERMUDA, LIMITED

    

    

    By:
      /s/
      Frederick J. Crawford

    Name:
      Frederick J. Crawford

    Title:
      President

    

    
      
        Credit
          Agreement

         

      

      
         

        
          

        

      

      
         

      

    

    BANKS

    

    JPMORGAN
      CHASE BANK, N.A.,

    individually
      and as Administrative Agent

    

    

    By:
      /s/
      Heather Lindstrom

    Name:
      Heather Lindstrom

    Title:
      Vice President

    

    Address
      for Notices (for the Administrative Agent):

    

    JPMorgan
      Chase Bank, N.A.

    1111
      Fannin Street

    10th
      Floor

    Houston,
      Texas 77002-8069

    Attention:
      Loan and Agency Services

    Tel: (713)
      750-3560

    Fax: (713)
      750-2223

    

    with
      a
      copy to:

    

    JPMorgan
      Chase Bank, N.A.

    270
      Park
      Avenue

    22nd
      Floor

    New
      York,
      NY 10017

    Attention:
      Heather Lindstrom

    Tel: (212)
      270-9839

    Fax: (212)
      270-1511

    

    

    
      
        Credit
          Agreement

         

      

      
         

        
          

        

      

      
         

      

    

    

    WACHOVIA
      BANK, NATIONAL ASSOCIATION 

    

    

    By:
      /s/
      Joan Anderson

    Name:
      Joan Anderson

    Title:
      Director

    
      
        Credit
          Agreement

         

      

      
         

        
          

        

      

      
         

      

    

    

    THE
      BANK
      OF NEW YORK 

    

    

    By:
      /s/
      Richard G. Shaw

    Name:
      Richard G. Shaw

    Title:
      Vice President

    
      
        Credit
          Agreement

         

      

      
         

        
          

        

      

      
         

      

    

    

    CITIBANK,
      N.A.

    

    

    By:
      /s/
      Thomas Fontana

    Name:
      Thomas Fontana

    Title:
      Managing Director

    (On
      behalf of Peter Bickford)

    
      
        Credit
          Agreement

         

      

      
         

        
          

        

      

      
         

      

    

    HSBC
      BANK
      USA, N.A.

    

    

    By:
      /s/
      Dennis Cogan

    Name:
      Dennis Cogan

    Title:
      Senior Vice President

    
      
        Credit
          Agreement

         

      

      
         

        
          

        

      

      
         

      

    

    

    BANK
      OF
      AMERICA, N.A.

    

    

    By:
      /s/
      Jeffrey M. Shaver

    Name:
      Jeffrey M. Shaver

    Title:
      Vice President

    
      
        Credit
          Agreement

         

      

      
         

        
          

        

      

      
         

      

    

    

    KEYBANK
      NATIONAL ASSOCIATION

    

    

    By:
      /s/
      Mary K. Young 

    Name:
      Mary K. Young

    Title:
      Senior Vice President

    
      
        Credit
          Agreement

         

      

      
         

        
          

        

      

      
         

      

    

    

    MELLON
      BANK, N.A.

    

    

    By:
      /s/
      Richard B. Arrington

    Name:
      Richard B. Arrington

    Title:
      Executive Vice President

    
      
        Credit
          Agreement

         

      

      
         

        
          

        

      

      
         

      

    

    

    WELLS
      FARGO BANK, NATIONAL ASSOCIATION

    

    

    By:
      /s/
      Robert C. Meyer

    Name:
      Robert C. Meyer

    Title:
      Senior Vice President

    

    

    By:
      /s/
      Elizabeth S. Collins

    Name:
      Elizabeth S. Collins

    Title:
      Vice President

    
      
        Credit
          Agreement

         

      

      
         

        
          

        

      

      
         

      

    

    

    THE
      NORTHERN TRUST COMPANY

    

    

    By:
      /s/
      Alex Nikolov

    Name:
      Alex Nikolov

    Title:
      Second Vice President

    

    
      
        Credit
          Agreement

         

      

      
         

        
          

        

      

      
         

      

    

    

    ABN
      AMRO
      BANK N.V.

    

    

    By:
      /s/
      Neil R. Stein 

    Name:
      Neil R. Stein

    Title:
      Director

    

    

    

    By:
      /s/
      Michael DeMarco 

    Name:
      Michael DeMarco

    Title:
      Vice President

    
      
        Credit
          Agreement

         

      

      
         

        
          

        

      

      
         

      

    

    

    THE
      BANK
      OF TOKYO-MITSUBISHI TRUST COMPANY

    

    

    By:
      /s/
      Jesse A. Reid, Jr.

    Name:
      Jesse A. Reid, Jr.

    Title:
      Authorized Signatory

    
      
        Credit
          Agreement

         

      

      
         

        
          

        

      

      
         

      

    

    

    LLOYDS
      TSB BANK PLC

    

    

    By:
      /s/
      Matthew S.R. Tuck

    Name:
      Matthew S.R. Tuck

    Title:
      Vice President

    Financial
      Institutions, USA

    T020

    

    

    

    By:
      /s/
      Elaine B. Kallenbach

    Name:
      Elaine B. Kallenbach

    Title:
      Assistant Vice President

    Financial
      Institutions, USA

    K-027

    

    
      
        Credit
          Agreement

         

      

      
         

        
          

        

      

      
         

      

    

    

    MORGAN
      STANLEY BANK

    

    

    By:
      /s/
      Daniel Twenge

    Name:
      Daniel Twenge

    Title:
      Vice President

    

    
      
        Credit
          Agreement

         

      

      
         

        
          

        

      

      
         

      

    

    

    U.S.
      BANK
      NATIONAL ASSOCIATION

    

    

    By:
      /s/
      Ziad W. Amra

    Name:
      Ziad W. Amra

    Title:
      Assistant Vice President

    

    

    
      
        Credit
          Agreement

         

      

      
         

        
          

        

      

      
         

      

    

    

    BNP
      PARIBAS

    

    

    By:
      /s/
      Laurent Vanderzyppe

    Name:
      Laurent Vanderzyppe

    Title:
      Managing Director

    

    

    

    By:
      /s/
      Marguerite L. Ledon 

    Name:
      Marguerite L. Ledon

    Title:
      Vice President

    
      
        Credit
          Agreement

         

      

      
         

        
          

        

      

      
         

      

    

    

    PNC
      BANK,
      NATIONAL ASSOCIATION

    

    

    By:
      /s/
      Douglas O. Winters

    Name:
      Douglas O. Winters

    Title:
      Senior Vice President

    
      
        Credit
          Agreement

         

      

      
         

        
          

        

      

      
         

      

    

    

    COMERICA
      BANK, NA

    

    

    By:
      /s/
      John M. Costa

    Name:
      John M. Costa

    Title:
      First Vice President

    

    

    
      
        Credit
          Agreement

         

      

      
         

        
          

        

      

      
         

      

    

    

    WILLIAM
      STREET CREDIT CORPORATION

    

    

    By:
      /s/
      Mark Walton

    Name:
      Mark Walton

    Title:
      Assistant Vice President

    
      
        Credit
          Agreement

         

      

      
         

        
          

        

      

      
         

      

    

    

    LEHMAN
      BROTHERS BANK, FSB

    

    

    By:
      /s/
      Janine M. Shugan

    Name:
      Janine M. Shugan

    Title:
      Authorized Signatory

    

    
      
        Credit
          Agreement

         

      

      
         

        
          

        

      

      
         

      

    

    

    MERRILL
      LYNCH BANK USA

    

    

    By:
      /s/
      Louis Alder

    Name:
      Louis Alder

    Title:
      Director

    
      
        Credit
          Agreement

         

      

      
         

        
          

        

      

      
         

      

    

    

    FIFTH
      THIRD BANK

    

    

    By:
      /s/
      Megan Heisel

    Name:
      Megan Heisel

    Title:
      Vice President

    
      
        Credit
          Agreement

         

      

      
         

        
          

        

      

      
         

      

    

    

    NATIONAL
      CITY BANK

    

    

    By:
      /s/
      Gustavus Bahr

    Name:
      Gustavus Bahr

    Title:
      Vice President

    
      
        Credit
          Agreement

         

      

      
         

        
          

        

      

      
         

      

    

    

    THE
      ROYAL
      BANK OF SCOTLAND PLC

    

    

    By:
      /s/
      George Urban

    Name:
      George Urban

    Title:
      Vice President

    

    
      
        Credit
          Agreement

         

      

      
         

        
          

        

      

      
         

      

    

    

    SOCIETE
      GENERALE

    

     

    By:
      /s/
      William Aishton

    Name:
      William Aishton

    Title:
      Vice President

    

    

     

    
      
        
          Credit
            Agreement

        

         

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULE
      I

    

    Commitments

    

    

      
        	
                Banks

              	
                Commitment
                  ($)

              
	 	 
	
                JPMorgan
                  Chase Bank, N.A. 

              	
                125,000,000

              
	
                Wachovia
                  Bank, National Association

              	
                125,000,000

              
	
                The
                  Bank of New York

              	
                100,000,000

              
	
                Citibank,
                  N.A.

              	
                100,000,000

              
	
                HSBC
                  Bank USA, N.A.

              	
                100,000,000

              
	
                Bank
                  of America, N.A.

              	
                75,000,000

              
	
                KeyBank
                  National Association

              	
                75,000,000

              
	
                Mellon
                  Bank, N.A.

              	
                75,000,000

              
	
                Wells
                  Fargo Bank, National Association

              	
                75,000,000

              
	
                The
                  Northern Trust Company

              	
                75,000,000

              
	
                ABN
                  Amro Bank N.V.

              	
                50,000,000

              
	
                The
                  Bank of Tokyo-Mitsubishi Trust Company

              	
                50,000,000

              
	
                Lloyds
                  TSB Bank Plc

              	
                50,000,000

              
	
                Morgan
                  Stanley Bank

              	
                50,000,000

              
	
                U.S.
                  Bank National Association

              	
                50,000,000

              
	
                BNP
                  Paribas

              	
                50,000,000

              
	
                PNC
                  Bank, National Association

              	
                50,000,000

              
	
                Comerica
                  Bank, NA

              	
                35,000,000

              
	
                William
                  Street Credit Corporation

              	
                30,000,000

              
	
                Lehman
                  Brothers Bank, FSB

              	
                30,000,000

              
	
                Merrill
                  Lynch Bank USA

              	
                30,000,000

              
	
                Fifth
                  Third Bank

              	
                25,000,000

              
	
                National
                  City Bank

              	
                25,000,000

              
	
                The
                  Royal Bank of Scotland Plc

              	
                25,000,000

              

      

       

      
        
          
            Schedule
              I (Commitments)

          

        

        
           

          
            

          

        

        
           

        

      

      
        	
                Société
                  Génèrale

              	
                25,000,000

              
	
                TOTAL
                  COMMITMENTS

              	$1,500,000,000

      

       

    

    
      
        
          Schedule
            I (Commitments)

        

         

      

      
        -2-

        
          

        

      

      
         

      

    

    SCHEDULE
      II

     

    List
      of Restricted Subsidiaries

     

    Lincoln
      National Life Insurance Company

     

    

     

    
      
        
          Schedule
            II (Restricted Subsidiaries)

        

         

      

      
         

        
          

        

      

      
         

      

    

    

    Form
      Exhibits Omitted.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}]]