Document:

Bank of Kentucky Financial Corporation 2007 Stock Option and Incentive Plan

 EXHIBIT 10.1 
 THE BANK OF KENTUCKY FINANCIAL CORPORATION 
 2007 STOCK OPTION AND INCENTIVE PLAN 
 1. PURPOSE. The purpose of The Bank of Kentucky Financial Corporation 2007 Stock Option and Incentive Plan (this “Plan”) is to promote the best
interests of The Bank of Kentucky Financial Corporation (the “Company”) and its shareholders by enabling the Company to attract, retain and reward directors, officers, managerial and other key employees of the Company and any Subsidiary
(hereinafter defined), and to strengthen the mutuality of interests between such directors, officers and employees of the Company and the Company’s shareholders. 
 2. DEFINITIONS. For purposes of this Plan, the following terms shall have the meanings set forth below: 
 (a) “Board” means the Board of Directors of the Company. 
 (b) “Code” means the Internal Revenue Code of 1986,
as amended, or any successor thereto, together with rules, regulations and interpretations promulgated thereunder. 
 (c)
“Committee” means the Committee of the Board constituted as provided in Section 3 of this Plan. 
 (d) “Common
Shares” means the common shares of the Company or any security of the Company issued in substitution, in exchange or in lieu thereof. 
 (e) “Company” means The Bank of Kentucky Financial Corporation, a Kentucky corporation, or any successor corporation. 
 (f) “Employment” means regular employment with the Company or a Subsidiary and does not include service as a director or officer only. 
 (g) “ERISA” means the Employee Retirement Income Security Act, as amended, or any successor thereto, together with rules, regulations and interpretations promulgated thereunder. 
 (h) “Exchange Act” means the Securities Exchange Act of 1934, as amended, or any successor statute. 
 (i) “Fair Market Value” means and shall be determined as follows: 
 (i) If the Common Shares are traded on a national securities exchange at the time of grant of the Stock Option, then the Fair Market Value
shall be the average of the highest and the lowest selling price on such exchange on the date such Stock Option is granted or, if there were no sales on such date, then on the next prior business day on which there was a sale. 
 (ii) If the Common Shares are quoted on The Nasdaq Stock Market at the time of the grant of the Stock Option, then the Fair Market Value
shall be the mean between the closing high bid and low asked quotation with respect to a Common Share on such date on The Nasdaq Stock Market. 
 (iii) If the Common Shares are not traded on a national securities exchange or quoted on The Nasdaq Stock Market, then the Fair Market Value shall be as determined by the Committee. 
 (j) “Incentive Stock Option” means any Stock Option granted pursuant to the provisions of Section 6 of this Plan that is intended to be
and is specifically designated as an “incentive stock option” within the meaning of Section 422 of the Code. 
 (k)
“Non-Qualified Stock Option” means any Stock Option granted pursuant to the provisions of Section 6 of this Plan that is not an Incentive Stock Option. 
 (l) “Participant” means an employee, director or officer of the Company or a Subsidiary who is granted a Stock Option under this Plan. Notwithstanding the foregoing, for the purposes of the granting of any
Incentive Stock Option under this Plan, the term “Participant” shall include only employees of the Company or a Subsidiary. 

 (m) “Plan” means The Bank of Kentucky Financial Corporation 2007 Stock Option and Incentive
Plan, as set forth herein and as it may be hereafter amended from time to time. 
 (n) “Stock Option” means an award of an option
to purchase Common Shares granted pursuant to the provisions of Section 6 of this Plan. 
 (o) “Subsidiary” means any
corporation or entity in which the Company directly or indirectly controls 50% or more of the total voting power of all classes of its stock having voting power and includes, without limitation, The Bank of Kentucky, Inc. 
 (p) “Terminated for Cause” means any removal of a director or officer or discharge of an employee for the personal dishonesty, incompetence,
willful misconduct, breach of fiduciary duty involving personal profit, intentional failure to perform stated duties, willful violation of a material provision of any law, rule or regulation (other than traffic violations or similar offenses), a
material violation of a final cease-and-desist order or any other action of a director, officer or employee which results in a substantial financial loss to the Company or a Subsidiary. 
 3. ADMINISTRATION.  
 (a) This Plan shall be administered and Stock Options shall be granted under
this Plan by the Committee, to be comprised of not fewer than two members of the Board of Directors. The members of the Committee shall be appointed from time to time by the Board. Members of the Committee shall serve at the pleasure of the Board,
and the Board may from time to time remove members from, or add members to, the Committee. A majority of the members of the Committee shall constitute a quorum for the transaction of business. An action approved in writing by all of the members of
the Committee then serving shall be fully as effective as if the action had been taken by unanimous vote at a meeting duly called and held. 
 (b) The Committee is authorized to construe and interpret this Plan and to make all other determinations necessary or advisable for the administration of this Plan to the extent permitted by law. The Committee may designate persons other
than members of the Committee to carry out its responsibilities under such conditions and limitations as it may prescribe. Any determination, decision or action of the Committee in connection with the construction, interpretation, administration, or
application of this Plan shall be final, conclusive and binding upon all persons participating in this Plan and any person validly claiming under or through persons participating in this Plan. The Company shall effect the granting of Stock Options
under this Plan by execution of instruments in writing in such form as approved by the Committee. 
 4. DURATION OF, AND COMMON SHARES SUBJECT TO, THIS
PLAN.  
 (a) Term. This Plan shall terminate on the date which is ten (10) years from the date on which this Plan is adopted
by the Board or the date on which this Plan is approved by the shareholders of the Company, whichever is earlier, except with respect to Stock Options then outstanding. No Stock Option may be granted under this Plan after the date which is ten
(10) years from the date on which this Plan is adopted by the Board or the date on which this Plan is approved by the shareholders of the Company, whichever is earlier. 
 (b) Common Shares Subject to Plan. The maximum number of Common Shares with respect to which Stock Options may be granted under this Plan, subject
to adjustment as provided in Section 9 of this Plan, shall be 1,200,000 Common Shares, of which options for up to 360,000 Common Shares may be awarded to non-employee directors and non-employee officers in the aggregate and up to 840,000 Common
Shares may be awarded to employees. 
 Common Shares which may be issued under this Plan may be either authorized and unissued shares or
issued shares which have been reacquired by the Company. No fractional shares shall be issued under this Plan. 
 5. ELIGIBILITY AND GRANTS. Persons
eligible for Stock Options under this Plan shall consist of directors, officers and managerial and other key employees of the Company or a Subsidiary who hold positions with 

  

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significant responsibilities or whose performance or potential contribution, in the judgment of the Committee, will benefit the future success of the Company
or a Subsidiary. In selecting the directors, officers and employees to whom Stock Options will be awarded and the number of shares subject to such Stock Options, the Committee shall consider the position, duties and responsibilities of the eligible
directors, officers and employees, the value of their services to the Company and the Subsidiaries and any other factors that the Committee may deem relevant. No director, officer or employee shall have any right or entitlement to receive a Stock
Option. 
 6. STOCK OPTIONS. Stock Options granted under this Plan may be in the form of Incentive Stock Options or Non-Qualified Stock Options, and
such Stock Options shall be subject to the following terms and conditions and in such form as the Committee may from time to time approve and shall contain such additional terms and conditions as the Committee shall deem desirable, not inconsistent
with the express provisions of the Plan: 
 (a) Grant. No more than 25% of the shares subject to Stock Options may be awarded to any
individual who is an employee of the Company or a Subsidiary, no more than 5% of such shares may be awarded to any director or officer who is not an employee of the Company or a Subsidiary and no more than 30% of such shares may be awarded to
non-employee directors and non-employee officers in the aggregate. 
 (b) Stock Option Price. The option exercise price per Common
Share purchasable under a Stock Option granted to a non-employee director or non-employee officer shall be the Fair Market Value of the Common Shares on the date of grant. The option exercise price for Common Shares purchasable under a Stock Option
granted to an employee shall be determined by the Committee at the time of grant; provided, however, that in no event shall the exercise price of a Stock Option be less than 100% of the Fair Market Value of the Common Shares on the date of the grant
of such Stock Option. Notwithstanding the foregoing, in the case of an employee who owns Common Shares representing more than 10% of the outstanding common shares at the time an Incentive Stock Option is granted, the option exercise price shall in
no event be less than 110% of the Fair Market Value of the Common Shares at the time the Incentive Stock Option is granted. 
 (c) Stock
Option Terms. Subject to the right of the Company to provide for earlier termination in the event of any merger, acquisition or consolidation involving the Company, the term of each Stock Option shall be fixed by the Committee; provided,
however, that the term of Incentive Stock Options will not exceed ten years after the date the Incentive Stock Option is granted; provided further, however, that in the case of an employee who owns a number of Common Shares representing more than
10% of the Common Shares outstanding at the time an Incentive Stock Option is granted, the term of the Incentive Stock Option shall not exceed five years. 
 (d) Exercisability. Except as set forth in Section 6(f) and Section 7 of this Plan, Stock Options awarded under this Plan shall become exercisable commencing on the date or dates and subject to such
other terms and conditions as shall be determined by the Committee at the date of the grant. 
 (e) Method of Exercise. A Stock Option
may be exercised, in whole or in part, by giving written notice of exercise to the Company specifying the number of Common Shares to be purchased, accompanied by payment in full of the purchase price in cash or, if acceptable to the Committee in its
sole discretion, in Common Shares already owned by the Participant, or by surrendering outstanding Stock Options. The Committee may also permit Participants, either on a selective or aggregate basis, simultaneously to exercise Stock Options and sell
Common Shares thereby acquired, pursuant to a brokerage or similar arrangement approved in advance by the Committee, and use the proceeds from such sale as payment of the purchase price of such Common Shares. 
 (f) Special Rule for Incentive Stock Options. With respect to Incentive Stock Options granted under this Plan, to the extent the aggregate Fair
Market Value (determined as of the date the Incentive Stock Option is granted) of the number of shares with respect to which Incentive Stock Options are exercisable under all plans of the Company or a Subsidiary for the first time by a Participant
during any calendar year exceeds $100,000.00, or such other limit as may be required by the Code, such Stock Options shall be Non-Qualified Stock Options to the extent of such excess. 
 7. TERMINATION OF EMPLOYMENT, DIRECTORSHIP, ETC.  
 (a) Except in the event of the death or disability
of a Participant, at such time as a Participant no longer holds at least one of the following positions, namely, Director of the Company, Director of a Subsidiary of 

  

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the Company, non-employee officer of the Company, non-employee officer of any Subsidiary of the Company, employee of the Company or employee of a Subsidiary
of the Company, any Stock Option which has not yet become exercisable shall thereupon terminate and be of no further force or effect. 
 (b)
Unless the Committee shall specifically state otherwise at the time the Option is granted, all Options granted under this Plan shall become exercisable in full on the date of termination of a Participant’s employment, or service as a director
or officer with the Company or a Subsidiary because of his/her death or disability. 
 (c) In the event a Participant is Terminated for Cause
(hereinabove defined) any Option which has not been exercised shall terminate as of the date of such Termination for Cause. 
 (d) In the
event of the termination of a Participant’s employment by the Participant or by the Company and any subsidiary of the Company, other than if the Participant is Terminated for Cause or upon death or disability, any portion of the Option
exercisable but not yet exercised shall terminate if not exercised within three months after the termination of employment. 
 8. NON-TRANSFERABILITY OF
STOCK OPTION. No Stock Option under this Plan, and no rights or interests therein, shall be assignable or transferable by a Participant except by will or the laws of descent and distribution. During the lifetime of a Participant, Stock Options
are exercisable only by the Participant or his or her legal representative. 
  

	9.	ADJUSTMENT UPON CHANGES IN CAPITALIZATION.  

 (a)
The existence of this Plan and the Stock Options granted hereunder shall not affect or restrict in any way the right or power of the Board or the shareholders of the Company to make or authorize the following: any adjustment, recapitalization,
reorganization or other change in the Company’s capital structure or its business; any merger, acquisition or consolidation of the Company; any issuance of bonds, debentures, preferred or prior preference stocks ahead of or affecting the
Company’s capital stock or rights thereof; the dissolution or liquidation of the Company or any sale or transfer of all or any part of its assets or business; or any other corporate act or proceeding, including any merger or acquisition which
would result in the exchange of cash, stock of any other company or options to purchase the stock of another company for any Stock Option outstanding at the time of such corporate transaction or which would involve the termination of all Stock
Options outstanding at the time of such corporate transaction. 
 (b) In the event of any change in capitalization affecting the Common
Shares of the Company, such as a stock dividend, stock split, recapitalization, merger, consolidation, spin-off, split-up, combination or exchange of shares or other form of reorganization, or any other change affecting the Common Shares, such
proportionate adjustments, if any, shall be made with respect to the aggregate number of Common Shares for which Stock Options in respect thereof may be granted under this Plan, the maximum number of Common Shares which may be sold or awarded to any
Participant, the number of Common Shares covered by each outstanding Stock Option, and the exercise price per share in respect of outstanding Stock Options. 
 10. AMENDMENT AND TERMINATION OF THIS PLAN. Without further approval of the shareholders, the Board may at any time terminate this Plan or may amend it from time to time in such respects as the Board may deem advisable, except that
the Board may not, without approval of the shareholders, make any amendment which would (a) increase the aggregate number of Common Shares which may be issued under this Plan (except for adjustments pursuant to Section 9 of this Plan),
(b) materially modify the requirements as to eligibility for participation in this Plan, or (c) materially increase the benefits accruing to Participants under this Plan. The above notwithstanding, the Board may amend this Plan to take
into account changes in applicable securities, federal income tax and other applicable laws. 
 11. MODIFICATION OF OPTIONS. The Board may authorize
the Committee to direct the execution of an instrument providing for the modification of any outstanding Stock Option which the Board believes to be in the best interests of the Company; provided, however, that no such modification, extension or
renewal shall confer on the holder of such Stock Option any right or benefit which could not be conferred on him by the grant of a new Stock Option at such time and shall not materially decrease the Participant’s benefits under the Stock Option
without the consent of the holder of the Stock Option, except as otherwise permitted under this Plan. 
  

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 12. MISCELLANEOUS.  
 (a) Tax Withholding. The Company shall have the right to deduct from any settlement, including the delivery or vesting of Common Shares, made under this Plan any federal, state or local taxes of any kind
required by law to be withheld with respect to such payments or to take such other action as may be necessary in the opinion of the Company to satisfy all obligation for the payment of such taxes. If Common Shares are used to satisfy tax
withholding, such shares shall be valued based on the Fair Market Value when the tax withholding is required to be made. 
 (b) No Right
to Employment. Neither the adoption of this Plan nor the granting of any Stock Option shall confer upon any employee of the Company or a Subsidiary any right to continued Employment with the Company or a Subsidiary, as the case may be, nor shall
it interfere in any way with the right of the Company or a Subsidiary to terminate the Employment of any of its employees at any time, with or without cause. 
 (c) Annulment of Stock Options. The grant of any Stock Option payable in Common Shares is provisional until the Participant becomes entitled to the certificate in settlement thereof. In the event a Participant
is Terminated for Cause, any Stock Option which is provisional shall be annulled as of the date of such termination. 
 (d) Other Company
Benefit and Compensation Programs. Payments and other benefits received by a Participant under a Stock Option made pursuant to this Plan shall not be deemed a part of a Participant’s regular, recurring compensation for purposes of the
termination indemnity or severance pay law of any country and shall not be included in, nor have any effect on, the determination of benefits under any other employee benefit plan or similar arrangement provided by the Company or a Subsidiary unless
expressly so provided by such other plan or arrangement, or except where the Committee expressly determines that a Stock Option or portion of a Stock Option should be included to accurately reflect competitive compensation practices or to recognize
that a Stock Option has been made in lieu of a portion of competitive annual cash compensation. Stock Options under this Plan may be made in combination with or in tandem with, or as alternatives to, grants, stock options or payments under any other
plans of the Company or a Subsidiary. This Plan notwithstanding, the Company or any Subsidiary may adopt such other compensation programs and additional compensation arrangements as it deems necessary to attract, retain and reward directors,
officers and employees for their service with the Company and its Subsidiaries. 
 (e) Securities Law Restrictions. No Common Shares
shall be issued under this Plan unless counsel for the Company shall be satisfied that such issuance will be in compliance with applicable federal and state securities laws. Certificates for Common Shares delivered under this Plan may be subject to
such stop-transfer orders and other restrictions as the Committee may deem advisable under the rules, regulations and other requirements of the Securities and Exchange Commission, any stock exchange upon which the Common Shares are then listed, and
any applicable federal or state securities law. The Committee may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions. 
 (f) Stock Option Agreement. Each Participant receiving a Stock Option under this Plan shall enter into an agreement with the Company in a form
specified by the Committee agreeing to the terms and conditions of the Stock Option and such related matters as the Committee shall, in its sole discretion, determine. 
 (g) Cost of Plan. The costs and expenses of administering this Plan shall be borne by the Company. 
 (h) Governing Law. This Plan and all actions taken hereunder shall be governed by and construed in accordance with the laws of the State of Kentucky, except to the extent that federal law shall be deemed applicable. 
 (i) Effective Date. This Plan shall be effective upon the later of the adoption by the Board and approval by the Company’s shareholders. This
Plan shall be submitted to the shareholders of the Company for approval at an annual or special meeting of shareholders. 
  

 5Commitment Letter with J.P. Morgan

 Exhibit 4.1 
 

 
 March 28, 2007 
 $1,750,000,000 Senior Credit Facilities 
 Commitment Letter 
 United States Steel Corporation 
 600 Grant Street 
 Pittsburgh, PA 15219 
 Attention: Gretchen Haggerty 
                 Executive Vice President 
                       & Chief Financial Officer 
 Ladies and Gentlemen: 
 You (the
“Company”) have advised us that (i) you or your wholly-owned subsidiary propose to acquire (the “Acquisition”) a company you have identified to us (the “Target”), (ii) you may repay
outstanding long-term debt securities of the Company and (iii) you are refinancing your existing revolving credit facility, and in that connection you have requested that J.P. Morgan Securities Inc. (“JPMorgan”) agree to
structure, arrange and syndicate three senior credit facilities in an aggregate amount of $1,750,000,000 (each, a “Facility” and collectively, the “Facilities”), and that JPMorgan Chase Bank, N.A. (“JPMorgan
Chase”) commit to provide the full amount of the Facilities and to serve as administrative agent for the Facilities. 
 JPMorgan is pleased to
advise you that it is willing to act as sole and exclusive lead arranger and bookrunner for the Facilities. 
 Furthermore, JPMorgan Chase is pleased
to advise you of its commitment to provide the full amount of the Facilities, upon the terms and subject to the conditions set forth or referred to in this commitment letter (the “Commitment Letter”) and in the Summary of Terms and
Conditions attached hereto as Exhibit A (the “Term Sheet”). 
 It is agreed that JPMorgan Chase will act as the sole and exclusive
Administrative Agent, and that JPMorgan will act as the sole and exclusive Lead Arranger and Bookrunner (in such capacities, the “Lead Arranger”), for the Facilities. You agree that no other agents, co-agents arrangers or
bookrunners will be appointed, no other titles will be awarded and no compensation will be paid in connection with the Facilities (other than, in each case, as expressly contemplated by the Term Sheet) unless you and we shall so agree. 

We intend to syndicate the Facilities to a group of financial institutions (together with JPMorgan Chase, the “Lenders”) identified by us in
consultation with you. JPMorgan shall commence syndication efforts promptly, and you agree to actively assist JPMorgan in completing a syndication satisfactory to both you and it. Such assistance shall include (a) your using commercially
reasonable efforts to ensure that the syndication efforts benefit materially from your existing lending relationships, (b) direct contact 

  

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between senior management and advisors of the Company and the proposed Lenders, (c) assistance in the preparation of a Confidential Information Memorandum and
other marketing materials to be used in connection with the syndication and (d) the hosting with JPMorgan of one or more meetings of prospective Lenders. 
 JPMorgan, in consultation with the Company, will manage all aspects of the syndication, including decisions as to the selection of institutions to be approached and when they will be approached, when their commitments will be
accepted, which institutions will participate, the allocations of the commitments among the Lenders and compensation to the Lenders. In acting as the Lead Arranger, JPMorgan will have no responsibility other than to arrange the syndication as set
forth herein and shall in no event be subject to any fiduciary or other implied duties. To assist JPMorgan in its syndication efforts, you agree promptly to prepare and provide to JPMorgan and JPMorgan Chase all information with respect to the
Company and the Target and the transactions contemplated hereby, including all historical financial information and projections (the “Projections”), as we may reasonably request in connection with the arrangement and syndication of
the Facilities. You hereby represent and covenant that (a) all written information, other than the Projections, that has been or will be made available to JPMorgan or JPMorgan Chase by you or any of your representatives, taken as a whole
(collectively, the “Information”), is or will be, when furnished, complete and correct in all material respects and does not or will not, when furnished, contain any untrue statement of a material fact or omit to state a material
fact necessary in order to make the statements contained therein not materially misleading in light of the circumstances under which such statements are made and (b) the Projections that have been or will be made available to JPMorgan or
JPMorgan Chase by you or any of your representatives have been prepared in good faith based on reasonable assumptions (it being understood that the Projections are not to be viewed as facts and that actual results may differ significantly from the
Projections and that no assurance can be given that the results set forth in the Projections will be realized). If, after the time the Information has been made available to JPMorgan and JPMorgan Chase and prior to the execution and delivery of the
Credit Documentation (as defined below), events occur that cause the Information to be misleading in any material respect, you shall promptly advise JPMorgan and JPMorgan Chase. You understand that in arranging and syndicating the Facilities we may
use and rely on the Information without independent verification thereof. 
 A consideration for JPMorgan Chase’s commitments hereunder and
JPMorgan’s agreement to perform the services described herein, you agree to pay to each of them the nonrefundable fees set forth in the Fee Letter referred to below. 
 JPMorgan Chase’s commitment hereunder and JPMorgan’s agreement to perform the services described herein are subject to (a) our satisfaction that prior to and during the syndication of the Facilities there shall
be no competing offering, placement or arrangement of any debt securities or bank financing by or on behalf of the Company without our consent, (b) the negotiation, execution and delivery on or before July 2, 2007 of mutually satisfactory
definitive documentation with respect to the Facilities (such documentation, the “Credit Documentation”) and (c) the other conditions set forth or referred to in the Term Sheet. Any matters that are not covered by the
provisions hereof and of the Term Sheet are subject to the approval and agreement of JPMorgan Chase, JPMorgan and the Company. 
 You agree (a) to
indemnify and hold harmless JPMorgan Chase, JPMorgan, their affiliates and their respective officers, directors, employees, advisors, and agents (each, an “indemnified person”) from and against any and all losses, claims, damages
and liabilities to which any such indemnified person may become subject arising out of or in connection with this Commitment Letter, the Facilities, the use of the proceeds thereof, the Acquisition or any claim, litigation, investigation or
proceeding relating to 

  

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any of the foregoing, regardless of whether any indemnified person is a party thereto, and to reimburse each indemnified person upon demand for any legal expenses
(including the fees and expenses of a single counsel, which counsel shall be selected (x) by mutual agreement of the indemnified person and the Company or (y) if no such agreement has been reached following good faith consultation with
respect thereto, by the indemnified party) and other reasonable and documented out-of-pocket expenses incurred in connection with investigating or defending any of the foregoing, provided that the foregoing indemnity will not, as to any
indemnified person, apply to losses, claims, damages, liabilities or related expenses to the extent they are found by a final, non-appealable judgment of a court to arise from the breach of an express contractual undertaking by, or the willful
misconduct, bad faith or gross negligence of, an indemnified person, and (b) to reimburse JPMorgan Chase, JPMorgan and their affiliates on demand for all reasonable and documented out-of-pocket expenses (including due diligence expenses,
syndication expenses, travel expenses, and reasonable fees, charges and disbursements of counsel) incurred in connection with the Facilities and any related documentation (including this Commitment Letter, the Term Sheet and the definitive loan
documentation) or the administration, amendment, modification or waiver thereof. If any action, suit or proceeding is brought against any indemnified person in connection with any claim for which it is entitled to indemnity hereunder, such
indemnified person shall (i) promptly notify the Company in writing of such action, suit or proceeding and (ii) give the Company an opportunity to consult from time to time with such indemnified person regarding defensive measures and
potential settlement. Notwithstanding any other provision of this Commitment Letter, the Company shall not be liable to pay any settlement effected without its written consent (which shall not be unreasonably withheld). No indemnified person shall
be liable for any damages arising from the use by others of Information or other materials obtained through electronic, telecommunications or other information transmission systems or for any special, indirect, consequential or punitive damages in
connection with the Facilities. 
 You acknowledge that JPMorgan Chase and its affiliates (the term “JPMorgan Chase” being
understood to refer hereinafter in this paragraph to include such affiliates) may be providing debt financing, equity capital or other services (including financial advisory services) to other companies in respect of which you may have conflicting
interests regarding the transactions described herein and otherwise. Neither JPMorgan nor JPMorgan Chase will use confidential information obtained from you by virtue of the transactions contemplated by this letter or their other relationships with
you in connection with the performance by JPMorgan or JPMorgan Chase of services for other companies, and neither JPMorgan nor JPMorgan Chase will furnish any such information to other companies. You also acknowledge that JPMorgan and JPMorgan Chase
have no obligation to use in connection with the transactions contemplated by this Commitment Letter, or to furnish to you, confidential information obtained from other companies. 
 In order to enable JPMorgan to bring relevant expertise to bear on its engagement under this Commitment Letter from among its global affiliates, you agree that
JPMorgan may perform the services contemplated hereby in conjunction with its affiliates, and that any JPMorgan affiliates performing services hereunder shall be entitled to the benefits and subject to the terms of this Commitment Letter.

 The Commitment Letter shall not be assignable by any party hereto without the prior written consent of each other party hereto (except, in the case
of JPMorgan and JPMorgan Chase, to their respective affiliates, it being understood that any such affiliate shall be subject to the restrictions set forth in this sentence) (and any purported assignment without such consent, other than as described
in the immediately preceding parenthetical, shall be null and void), is intended to be solely for the benefit of the parties hereto and is not intended to confer any benefits upon, or create any rights in favor of, any person other than the parties
hereto and any indemnified person (as defined above); provided that JPMorgan and 

  

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JPMorgan Chase shall have the right, in their sole discretion, to syndicate the Facilities among commercial banks or other financial institutions or otherwise and to
sell, transfer or assign all or any portion of, or interests or participations in, the Facilities and any notes issued in connection therewith. This Commitment Letter may not be amended or waived except by an instrument in writing signed by you,
JPMorgan Chase and JPMorgan. This Commitment Letter may be executed in any number of counterparts, each of which shall be an original, and all of which, when taken together, shall constitute one agreement. Delivery of an executed signature page of
this Commitment Letter by facsimile transmission or portable document format shall be effective as delivery of a manually executed counterpart hereof. This Commitment Letter and the accompanying Fee Letter are the only agreements that have been
entered into among us with respect to the Facilities and set forth the entire understanding of the parties with respect thereto. This Commitment Letter shall be governed by, and construed in accordance with, the laws of the State of New York.

 This Commitment Letter is delivered to you on the understanding that neither this Commitment Letter, the Term Sheet nor the accompanying Fee Letter
nor any of their terms or substance shall be disclosed, directly or indirectly, to any other person except (a) to your officers, employees, directors, agents and advisors who are directly involved in the consideration of this matter or
(b) as may be compelled in a judicial or administrative proceeding or as otherwise required by law (in which case you agree to inform us promptly thereof), provided, that the foregoing restrictions shall cease to apply (except with
respect to the Fee Letter) after this Commitment Letter has been accepted by you. 
 The reimbursement, indemnification and confidentiality provisions
contained herein shall remain in full force and effect regardless of whether the Facilities Documentation shall be executed and delivered and notwithstanding the termination of this Commitment Letter or JPMorgan Chase’s commitment hereunder.

  

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 If the foregoing correctly sets forth our agreement, please indicate your acceptance of the terms hereof and of the
Term Sheet and the Fee Letter by returning to our counsel Davis Polk & Wardwell in New York, an executed counterpart hereof not later than 5:00 p.m., on March 30, 2007. JPMorgan Chase’s commitment and JPMorgan’s agreements
herein will expire at such time if JPMorgan Chase has not received such executed counterpart in accordance with the immediately preceding sentence. 
 JPMorgan Chase and JPMorgan are pleased to have been given the opportunity to assist you in connection with this important financing. 
  

	
	 Very truly yours,

	
	 JPMORGAN CHASE BANK, N.A.

	
	 By: /s/ James H.
Ramage                    

	       Name: James H. Ramage

	       Title:    Managing Director

	
	 J.P. MORGAN SECURITIES INC.

	
	 By: /s/ Bruce S.
Borden                      

	       Name:  Bruce S. Borden

	       Title:     Executive Director

 Accepted and agreed to as of 
 the date first written above: 
 UNITED STATES STEEL CORPORATION 
  

	
	 By: /s/ L. T.
Brockway                    

	       Name: L. T. Brockway

	       Title:    Vice President & Treasurer

  

 5 

 Summary of Terms and Conditions 
  

					
	I.	  	Parties	  	
			
		  	Borrower:	  	 United States Steel Corporation (the “Borrower”).

			
		  	Sole Lead Arranger
and Sole Bookrunner:	  	 J.P. Morgan Securities Inc. ( “JPMorgan” and in such capacity, the “Lead
Arranger”).

			
		  	Administrative Agent:	  	JPMorgan Chase Bank, National Association (“JPMCB” and, in such capacity, the “Administrative Agent”).
			
		  	Lenders:	  	A syndicate of banks, financial institutions and other entities, including JPMCB, arranged by the Lead Arranger (collectively, the “Lenders”).
			
	II.	  	Credit Facilities	  	
			
		  	A. Revolving Credit Facility	  	
			
		  	Type and Amount of
Facility:	  	
 Five-year revolving credit facility (the “Revolving Credit Facility”) in the
amount of
 $750,000,000 (the loans thereunder, the “Revolving Credit Loans”).

			
		  	Availability:	  	The Revolving Credit Facility shall be available on a revolving basis during the period commencing on the date of execution and delivery of definitive documentation with respect to such Facility (such
date with respect to any Facility, the “Closing Date” for such Facility) and ending on the fifth anniversary thereof (the “Revolving Credit Termination Date”).
			
		  	Commitment Increase:	  	The Borrower may increase the commitments under the Revolving Credit Facility by an amount up to $200,000,000, either through increases in the commitments of existing Lenders at the time willing to do so
or by the addition of any financial institution(s) reasonably acceptable to the Administrative Agent, the Issuing Lender(s) and the Borrower.

  

 1 

			
	Letters of Credit:	  	A portion of the Revolving Credit Facility not in excess of $300,000,000 shall be available for the issuance of letters of credit the “Letters of Credit”) by JPMCB or another Lender
(in such capacity, the “Issuing Lender”). No Letter of Credit shall have an expiration date after the earlier of (a) one year after the date of issuance and (b) five business days prior to the Revolving Credit Termination Date,
provided that a later expiration date will be permitted so long as such Letter of Credit is cash collateralized and provided further that any Letter of Credit with a one-year tenor may provide for the renewal thereof for
additional one-year periods (which shall in no event extend beyond the outside date permitted by in clause (b) above).
		
		  	Drawings under any Letter of Credit shall be reimbursed by the Borrower (whether with its own funds or with the proceeds of Revolving Credit Loans) on the same business day. To the extent that the
Borrower does not so reimburse the Issuing Lender, the Lenders under the Revolving Credit Facility shall be irrevocably and unconditionally obligated to reimburse the Issuing Lender on a pro rata basis.
		
	Competitive Loans:	  	The Borrower shall have the option to request that the Lenders bid for loans (“Competitive Loans”) bearing interest at an absolute rate or a margin over the LIBO Rate (as defined in
Annex I), with specified maturities of not less than one month or more than six months. Each Lender shall have the right, but not the obligation, to submit bids at its discretion. The Borrower, by notice given four business days in advance in the
case of eurodollar rate bids and one business day in advance in the case of absolute rate bids, shall specify the proposed date of borrowing, the interest period, the amount of the Competitive Loan and the maturity date thereof, the interest rate
basis to be used by the Lenders in bidding and such other terms as the Borrower may specify . The Administrative Agent shall advise the Lenders of the terms of the Borrower’s notice, and, subject to acceptance by the Borrower, bids shall be
allocated to each Lender in ascending order from the lowest bid to the highest bid acceptable to the Borrower. While Competitive Loans are outstanding, the available commitments under the Revolving Credit Facility shall be reduced by the aggregate
amount of such Competitive Loans.

  

 2 

			
	Initial Conditions:	  	The availability of the Revolving Credit Facility shall be conditioned upon satisfaction of the following conditions precedent:
		
		  	 (a)    The conditions precedent set forth on Annex III hereto.

		
		  	 (b)    There not occurring or becoming known to Administrative Agent any material adverse change with respect to the Borrower and
its subsidiaries taken as a whole.

		
		  	 (c)    The Borrower’s Amended and Restated Credit Agreement dated as of October 22, 2004 shall have been
terminated.

		
	On-Going Conditions:	  	The making of each extension of credit shall be conditioned upon (a) the accuracy of all representations and warranties in the Credit Documentation (including, without limitation, the material adverse
change and litigation representations) and (b) there being no default or event of default in existence at the time of, or after giving effect to the making of, such extension of credit.
		
	 Purpose:
	  	The proceeds of the Revolving Credit Loans shall be used for general corporate purposes of the Borrower and its subsidiaries.
		
	 Maturity:
	  	 The Revolving Credit Termination Date.

	
	B. One-Year Term Loan Facility
		
	Type and Amount of Facility:	  	  
 One-year term loan facility (the “One-Year Term Loan Facility”) in the
amount of $500,000,000 (the loans thereunder, the “One-Year Term Loans”).

		
	 Availability:
	  	The One-Year Loan Facility shall be available for drawing in a single drawdown not later than October 1, 2007.
		
	 Initial Conditions:
	  	 (a)    The conditions precedent set forth on Annex III hereto.

  

 3 

			
	 	  	(b)    There not occurring or becoming known to the Administrative Agent any material
        adverse change with respect to the Borrower
and its subsidiaries taken as a whole.
		
	 Purpose:
	  	The proceeds of the One-Year Term Loans may be used to pay the purchase price of the Acquisition and the related fees and transaction expenses, in part, or to refinance other long-term debt of the
Borrower and its subsidiaries.
		
	 Maturity:
	  	The first anniversary of the Closing Date.
		
	Mandatory Prepayments/ Reductions:	  	  
 Loans under the One-Year Term Facility shall be prepaid with 100% of the net cash
proceeds of issuances of debt and equity securities of the Borrower and its subsidiaries after the Closing Date, subject to an exception for the refinancing of other long-term debt of the Borrower and other exceptions to be
agreed.

	
	C. Five-Year Term Loan Facility
		
	Type and Amount of Facility:	  	  
 Five-year term loan facility (the “Five-Year Term Loan Facility” and
together with the One-Year Term Loan Facility, the “Term Loan Facilities”; the Term Loan Facilities together with the Revolving Credit Facility, the “Facilities”) in the amount of $500,000,000 (the loans thereunder,
the “Five-Year Term Loans” and together with the Revolving Credit Loans and the One-Year Term Loans, the “Loans”).

		
	Availability:	  	The Five-Year Term Loan Facility shall be available for drawing in a single drawdown not later than October 1, 2007.
		
	 Initial Conditions:
	  	 (a)    The conditions precedent set forth on Annex III hereto.

		
		  	 (b)    There not occurring or becoming known to the Administrative Agent any material adverse change with respect to the Borrower
and its subsidiaries taken as a whole.

  

 4 

					
		  		  	 (c)    Consummation of the acquisition no later than October 1, 2007 in all material respects in accordance with applicable
law and the Merger Agreement (which Merger Agreement shall not differ materially from the draft thereof dated March 27, 2007) without material waiver or amendment thereof unless consented to by the Administrative Agent (which consent shall not
be unreasonably withheld, conditioned or delayed).

			
		  	Purpose:	  	The proceeds of the Five-Year Term Loans shall be used for the payment of the purchase price for the Acquisition and the related fees and transaction expenses.
			
		  	Maturity:	  	The fifth anniversary of the Closing Date with amortization in amounts of $25,000,000 to be payable on each anniversary of the Closing Date.
			
	III.	  	Certain Payment Provisions	  	
			
		  	Fees and Interest Rates:	  	 As set forth on Annex I.

			
		  	Optional Prepayments and
Commitment Reductions:	  	  
 Loans may be prepaid without penalty and commitments may be reduced by the Borrower in
$25,000,000 minimum amounts, provided, that Competitive Loans may not be prepaid without the consent of the relevant Lender.

		
	IV.	  	Certain Documentation Matters
			
		  	Representations and
Warranties:	  	  
 Shall include only the following:

			
		  		  	Corporate Existence.
			
		  		  	Corporate and governmental authorizations; no contravention; binding and enforceable agreements.
			
		  		  	Financial information.
			
		  		  	No material adverse change since 12/31/06, except as disclosed prior to the Closing Date.
			
		  		  	Borrower and its subsidiaries have paid all taxes imposed upon them except for such taxes as are being contested in good faith and in cases where the failure to pay such taxes

  

 5 

			
		  	would not reasonably be expected to result in a material adverse change.
		
		  	Except as set forth in the Borrower’s most recent reports filed with the SEC, the Borrower does not presently anticipate that remediation costs and penalties associated with environmental laws, to
the extent not previously provided for, will result in a material adverse change.
		
		  	Except as set forth in the Borrower’s most recent reports filed with the SEC, there is no action, suit, arbitration or other proceeding, inquiry or investigation, at law or in equity, pending against
the Borrower or of which the Borrower has otherwise received official notice or which to the knowledge of the Borrower is threatened against the Borrower, wherein there is a reasonable possibility of an unfavorable decision, ruling or finding that
would reasonably be expected to result in a material adverse change.
		
		  	The Borrower is not an “investment company” or a company “controlled” by an “investment company” within the meaning of the Investment Company Act.
		
		  	Compliance with ERISA except where non-compliance would not reasonably be expected to result in a material adverse change.
		
		  	Adequacy of Disclosure.
		
	Affirmative Covenants:	  	Shall include only the following:
		
		  	Furnishing of information, including (without limitation), quarterly and annual financial statements, officer’s certificates regarding covenant compliance.
		
		  	Furnishing notice of the occurrence of a Default or Event of Default together with a description of the action the Borrower shall employ to remedy the same.
		
		  	Furnishing notice of any material adverse change (including, without limitation, circumstances arising in litigation, governmental investigations and environmental matters).

  

 6 

			
	 	  	Maintenance of property; insurance coverage in such amounts and covering such risks as is
usually carried by companies engaged in similar businesses.
		
		  	Compliance with all applicable laws, rules and regulations, other than such laws, rules or regulations (a) the validity or applicability of which the Borrower or any Subsidiary is contesting in good
faith or (b) the failure to comply with which would not reasonably be expected to result in a material adverse change.
		
		  	The Borrower and its Subsidiaries will do or cause to be done all things necessary to preserve, renew and keep in full force and effect its legal existence and the rights, licenses, permits,
privileges, franchises, patents, copyrights, trademarks and trade names material to the conduct of its business; provided that the foregoing shall not prohibit any merger, consolidation, liquidation or dissolution that is otherwise
permitted.
		
		  	The Borrower and its Subsidiaries will maintain proper books and records and grant the Lenders the right to inspect their property and books and records at reasonable times and upon reasonable
notice.
		
	Financial Covenants:	  	 Minimum interest coverage (EBITDA/Interest) of 2:1.
 Maximum leverage
(Debt/EBITDA) of 3.25:1.

		
	Negative Covenants:	  	Shall include only the following:
		
		  	Neither the Borrower nor any Subsidiary will create or suffer to exist any lien on any of its assets except (i) existing liens, (ii) certain purchase money liens, (iii) liens existing on assets at the
time of the acquisition of such assets, (iv) liens in connection with consignment arrangements, (v) liens arising in connection with permitted receivables financings, (vi) liens on assets of foreign subsidiaries, (vii) certain liens arising in the
ordinary course and not in connection with financing transactions, (viii) liens arising in connection with a refinancing, extension, renewal or refunding of any permitted lien, (ix) liens to secure debt owing to the Borrower or a
subsidiary of Borrower, (x) liens securing obligations in connection with governmental bonds issued to finance the

  

 7 

			
	 	  	cost of pollution control facilities and (xi) liens not otherwise permitted on assets other than
domestic inventory in an amount not to exceed 10% of Consolidated Net Tangible
Assets.
		
		  	No mergers or consolidations by the Borrower (unless (a) before and after giving effect thereto, no Default has occurred and is continuing and (b) the Borrower is the person surviving such transaction or
is another entity organized under the laws of a state of the United States that assumes the Borrower’s obligations under the credit agreement pursuant to satisfactory instrument of assumption).
		
	Events of Default:	  	 Shall include only the following:

		
		  	 Nonpayment of principal under the Facilities when due.

		
		  	Nonpayment of interest or other amounts under the Facilities within five business days of becoming due.
		
		  	Any representation and warranty made in the Credit Documentation shall prove to be false or misleading in any material respect when made or deemed made.
		
		  	Breaches of covenants set forth in the Credit Documentation subject, in the case of affirmative covenants that are capable of being remedied, to a 30-day grace period after the earlier of actual knowledge
and notice.
		
		  	Failure to make any payment with respect to any other material debt (i.e., debt with an aggregate principal amount in excess of $100,000,000) when due or within any applicable grace period; or any event
or condition shall exist which permits the holder to cause acceleration of the maturity of any other material debt and shall continue uncured and unwaived for the longer of the applicable grace period or five business days; or the maturity of any
other material debt shall be accelerated.
		
		  	Certain bankruptcy events (subject, in the case of involuntary bankruptcy, to a 60 day grace period).
		
		  	The occurrence of certain ERISA events that would reasonably be expected to result in a material adverse change.

  

 8 

			
		  	The imposition of any unpaid judgments in excess of $100,000,000 (which continue for a period of 30 consecutive days during which a stay of enforcement of such judgment or order, by reason of a pending
appeal or otherwise, shall not be in effect).
		
	Change in Control:	  	Upon the happening of a Change in Control, each Lender shall have the right to terminate its Commitments. declare its Loans due and payable and receive a payment from Borrower equal to the principal
amount of its Loans outstanding plus interest thereon.
		
	Voting:	  	Amendments and waivers with respect to the Credit Documentation shall require the approval of Lenders holding more than 50% of the aggregate amount of the Loans and unused commitments under the
applicable Facility, except that (a) the consent of each Lender directly affected thereby shall be required with respect to (i) reductions in the amount or extensions of the scheduled date of maturity of any Loan, (ii) reductions in the rate of
interest or any fee or extensions of any due date thereof and (iii) increases in the amount or extensions of the expiry date of any Lender’s commitment and (b) the consent of 100% of the Lenders shall be required with respect to modifications
to any of the voting percentages.
		
	 Assignments
 and Participations:
	  	The Lenders shall be permitted to assign all or a portion of their loans and commitments with the consent, not to be unreasonably withheld, of (a) the Borrower, unless (i) the assignee is a Lender, an
affiliate of a Lender or an approved fund or (ii) an Event of Default has occurred and is continuing, (b) the Administrative Agent and (c) the Issuing Bank(s). In the case of partial assignments (other than to another Lender, to an affiliate of a
Lender or an Approved Fund), the minimum assignment amount shall be $5,000,000, unless otherwise agreed by the Borrower and the Administrative Agent.
		
		  	The Lenders shall also be permitted to sell participations in their Loans. Participants shall have the same benefits as the Lenders with respect to yield protection and increased cost provisions.
Voting rights of participants shall be limited to those matters with respect to which the affirmative vote of the Lender from which it purchased its participation would

  

 9 

			
		  	be required as described under “Voting” above. Pledges of Loans in accordance with applicable law shall be permitted without restriction. Promissory notes shall be issued under the Revolving
Credit Facility only upon request.
		
	Yield Protection:	  	The Credit Documentation shall contain customary provisions (a) protecting the Lenders against increased costs or loss of yield resulting from changes in reserve, tax, capital adequacy and other
requirements of law and from the imposition of or changes in withholding or other taxes (subject to customary limitations) and (b) indemnifying the Lenders for “breakage costs” incurred in connection with, among other things, any
prepayment of a Eurodollar Loan (as defined in Annex I) on a day other than the last day of an interest period with respect thereto and any prepayment of a Competitive Loan.
		
	Expenses and
Indemnification:	  	The Borrower shall pay (a) all reasonable out-of-pocket expenses of the Administrative Agent and the Lead Arranger associated with the syndication of the Facilities and the preparation, execution,
delivery and administration of the Credit Documentation and any amendment or waiver with respect thereto (including the reasonable fees, disbursements and other charges of counsel) and (b) all out-of-pocket expenses of the Administrative Agent and
the Lenders (including the fees, disbursements and other charges of counsel) in connection with the enforcement of the Credit Documentation.
		
		  	The Administrative Agent, the Lead Arranger and the Lenders (and their affiliates and their respective officers, directors, employees, advisors and agents) will have no liability for, and will be
indemnified and held harmless against, any loss, liability, cost or expense incurred in respect of the financing contemplated hereby or the use or the proposed use of proceeds thereof (subject to customary limitations).
		
	Governing Law and Forum:	  	State of New York.
		
	Counsel to the
Administrative Agent
and the Lead Arranger:	  	Davis Polk & Wardwell.

  

 10 

 Annex I 
 Interest and Certain Fees 
  

	 Interest Rate Options: 
	 The Borrower may elect that the Loans (other than Competitive Loans) comprising each borrowing bear interest at a rate per annum equal to:

  

	 	 the ABR; or 

  

	 	 the Adjusted LIBO Rate plus the Applicable Margin. 

  

	 	 As used herein: 

  

	 	 “ABR” means the higher of (i) the rate of interest publicly announced by JPMCB as its prime rate in effect (the “Prime
Rate”) and (ii) the federal funds effective rate from time to time plus 0.5%. 

  

	 	 “Adjusted LIBO Rate” means the LIBO Rate, as adjusted for statutory reserve requirements for eurocurrency liabilities.

  

	 	 “Applicable Margin” means a percentage determined in accordance with the pricing grid attached hereto as Annex I-A.

  

	 	 “LIBO Rate” means the rate at which eurodollar deposits in the London interbank market for one, two, three or six months (as selected by
the Borrower) are quoted on the Telerate screen. 

  

	 Interest Payment Dates: 
	 In the case of Loans bearing interest based upon the ABR (“ABR Loans”), quarterly in arrears. 

  

	 	 In the case of Loans bearing interest based upon the Adjusted LIBO Rate (“Eurodollar Loans”), on the last day of each relevant interest
period and, in the case of any interest period longer than three months, on each successive date three months after the first day of such interest period. 

  

	 Facility Fees: 
	 The Borrower shall pay a facility fee, calculated at the applicable rate per annum determined in 

 
accordance with the pricing grid attached hereto as Annex I-A, on the average daily amount of the Revolving Credit Facility (whether used or unused), payable quarterly
in arrears. 
  

	 Commitment Fee: 
	 The Borrower shall pay a commitment fee at the rate of 0.05% per annum on the undrawn amount of the commitments under each Term Loan Facility, payable
with respect to each Term Loan Facility upon the earlier of (i) the funding of such Term Loan Facility and (ii) termination of the commitments thereunder. 

  

	 Letter of Credit Fees: 
	 The Borrowers shall pay a commission on all outstanding Letters of Credit at a per annum rate equal to the Applicable Margin then in effect with respect to
Eurodollar Loans on the face amount of each such Letter of Credit. Such commission shall paid to the Administrative Agent quarterly in arrears to be distributed ratably among the Lenders participating in the applicable letter of credit.

  

	 Default Rate: 
	 At any time when the Borrower is in default in the payment of any amount of principal due under any Facility, such amount shall bear interest at 2% above
the rate otherwise applicable thereto. Overdue interest, fees and other amounts shall bear interest at 2% above the rate applicable to ABR Loans. 

  

	 Rate and Fee Basis: 
	 All per annum rates shall be calculated on the basis of a year of 360 days (or 365/366 days, in the case of ABR Loans the interest rate payable on which is
then based on the Prime Rate) for actual days elapsed. 

  

 2 

 Annex I-A 
 Pricing Grid 
 (bps) 
 Revolving Credit Facility 
  

					
	 Ratings1
	 	 Facility Fee
	 	 Applicable Margin

	 Baa1/BBB+
	 	  8.0	 	  27.0
	 Baa2/BBB
	 	10.0	 	  40.0
	 Baa3/BBB-
	 	12.5	 	  50.0
	 Ba1/BB+
	 	15.0	 	  72.5
	 Lower
	 	20.0	 	 105.0

 Term Loan Facilities 
  

					
	 Ratings1
	 	 Applicable Margin
	 	 
	 Baa1/BBB+
	 	  35.0	 	
	 Baa2/BBB
	 	  50.0	 	
	 Baa3/BBB-
	 	  62.5	 	
	 Ba1/BB+
	 	  87.5	 	
	 Lower
	 	 125.0	 	

	 	

	 	 1
	 Except as expressly provided, based upon the higher of Moody’s and S&P ratings, unless split

	 	by more than one notch, in which case based upon a rating one notch higher than the lower of 

	 	the two. 

 Annex II 
 Certain Definitions 
 “Consolidated EBITDA” means, for any period, net income (or net loss) (before
discontinued operations) plus the sum of (a) consolidated interest expense, (b) income tax expense, (c) depreciation expense, (d) amortization expense, and (e) any non-cash losses or expenses from any unusual,
extraordinary or otherwise non-recurring items, including but not limited to (i) aggregate foreign exchange losses included in “other expense” and (ii) losses from minority interest, and minus (x) consolidated
interest income and (y) the sum of the amounts for such period of any income tax benefits and any income or gains from any unusual, extraordinary or otherwise non-recurring items, including but not limited to (i) aggregate foreign exchange
gains included in “other income” and (ii) income from minority interest; in each case determined on a consolidated basis for the Borrower and its Subsidiaries and in the case of items (a) through (e) and items (x) and
(y), to the extent such amounts were included in the calculation of net income. For the purpose of calculating Consolidated EBITDA for any period, if during such period the Borrower or any Subsidiary shall have made an acquisition or a disposition,
Consolidated EBITDA for such period shall be calculated after giving pro forma effect thereto as if such acquisition or disposition, as the case may be, occurred on the first day of such period. 
 “Consolidated Net Tangible Assets” means at any time, the aggregate amount of assets (less applicable reserves and other properly
deductible items) of the Borrower and its consolidated Subsidiaries adjusted for inventories on the basis of cost (before application of the “last-in first-out” method of determining cost) or current market value, whichever is lower, and
deducting therefrom (a) all current liabilities of such corporation and its consolidated Subsidiaries except for (i) notes and loans payable, (ii) current maturities of long-term debt and (iii) current maturities of obligations
under capital leases and (b) all goodwill, trade names, patents, unamortized debt discount and expenses of such corporation and its consolidated Subsidiaries (to the extent included in said aggregate amount of assets) and other like
intangibles, all as set forth in the most recent consolidated balance sheet of the Borrower and its consolidated Subsidiaries, delivered to the Administrative Agent, computed and consolidated in accordance with GAAP. 
 “material adverse change” means any event, development or circumstance that has had or would reasonably be expected to have a material
adverse effect on (a) the business, operations or financial condition of the Borrower and its subsidiaries taken as a whole or (b) the validity or enforceability of any of the Credit Documentation or the rights or remedies of the
Administrative Agent and the Lenders thereunder. 
 “Subsidiary” of a person means a corporation, partnership, joint venture,
limited liability company or other business entity of which a majority of the shares of securities or other interests having ordinary voting power for the election of directors or other 

 
governing body (other than securities or interests having such power only by reason of the happening of a contingency) are at the time beneficially owned directly, or
indirectly through one or more intermediaries, or both, by such person. Unless otherwise specified, all references herein to a “Subsidiary” or to “Subsidiaries” shall refer to a Subsidiary or Subsidiaries of the Borrower.

 Annex III 
 Initial Conditions:

 The availability of the each Facility shall be conditioned upon satisfaction of, among other things, the following conditions precedent on or
before July 2, 2007: 
  

	 	(a)	The parties shall have executed and delivered mutually satisfactory definitive financing documentation with respect to the each Facility (the “Credit Documentation”).

  

	 	(b)	The Lenders, the Administrative Agent and the Lead Arranger shall have received all fees required to be paid, and all expenses for which invoices have been presented, on or before the Closing
Date. 

  

	 	(c)	The Lenders shall have received such legal opinions, documents and other instruments as they may reasonably request.

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