Document:

EXHIBIT 10.7

 

INTERCREDITOR AGREEMENT

 

This Intercreditor Agreement
(this “Agreement”) dated as of August 13, 2010 is between Lighthouse Capital  Partners V, L.P.,
a Delaware limited partnership (“LCP”);”); MPM
BioVentures III LP (“MPM III”), MPM BioVentures III QP,
LP (“MPM III QP”), MPM BioVentures III GmbH &
Co. Beteiligungs KG (“MPM III KG”), MPM
BioVentures III Parallel Fund, LP (“MPM III Parallel”), and MPM Asset Management Investors 2002 BVIII LLC (“MPM III
2002”, collectively with MPM III, MPM III QP, MPM III KG, and MPM III Parallel”,
“MPM”);  Ayer
Capital Partners Master Fund, L.P., a Cayman Islands limited
partnership (“Ayer Master”), and Ayer
Capital Partners Kestrel Fund, LP, a Delaware limited partnership (“Ayer
Kerstel”, collectively with Ayer Master, “Ayer”).

 

RECITALS

 

A.                                   LCP and Aryx
Therapeutics, Inc. (“Aryx” or “Company”) are parties to a Loan and
Security Agreement originally dated as of March 28, 2005 pursuant to which
LCP extended loans and other financial accommodations to Aryx and Aryx granted
LCP a first position security interest in certain of its property to secure its
repayment obligations to LCP.  Aryx
further covenanted not to pledge or encumber its intellectual property or
further encumber LCP’s collateral.

 

B.                                     Aryx desires to
enter into a Secured Note and Warrant Purchase Agreement pursuant to which MPM
and Ayer will purchase Secured Promissory Notes in an aggregate principal
amount not to exceed US$4 Million (“Bridge Notes”) and Aryx grants MPM and Ayer
a security interest in substantially all of its assets, including its
intellectual property.

 

C.                                     LCP is willing
to make certain additional advances to Aryx on certain conditions and consent
to the security interest securing Aryx’s obligations under the Bridge Notes; provided
that (a) Aryx grant LCP a lien on Aryx’s intellectual property, (b) Aryx
enter into Amendment No. 8, and (c) LCP, MPM and Ayer agree to the
terms set forth herein.

 

NOW THEREFORE, the parties
agree as follows:

 

1.                                      Definitions.  The following capitalized terms shall mean
the following in this Agreement:

 

1.1                               “Amendment No. 8”
means Amendment No. 8 to the LCP Loan Agreement and attached hereto as Exhibit A.

 

1.2                               “Assignment
Agreement” means the assignment agreement substantially in the form
attached hereto as Exhibit B.

 

1.3                               “Bridge Debt
Security Interest” means all liens and security interests granted Bridge
Lenders in the Collateral to the extent that they secure the indebtedness under
the Bridge Notes.

 

1.4                               “Bridge
Lender” means either or both MPM and Ayer.

 

1.5                               “Bridge Note” means any promissory note issued by Borrower pursuant to
the terms of the Bridge Note Agreement.

 

1.6                               “Bridge Note
Agreement” means the Secured Note and Warrant Purchase
Agreement dated as of August 13, 2010 between Borrower and Bridge Lender.

 

1.7                               “Collateral”
means all property of the Company that is subject to a Bridge Debt Security
Interest, a Senior LCP Security Interest or a Subordinated Security Interest.

 

 

1.8                               “Enforcement
Action” means any action to exercise any rights or remedies, including
without limitation, (a) to sue for payment of, or to initiate or
participate with others in any suit, action or proceeding against either the
Company or a Secured Party to (i) enforce payment of or to collect the
whole or any part of the amounts owed a Secured Party or (ii) commence
judicial enforcement of any of the rights and remedies with respect to any
indebtedness or other obligations,  (b) to
sell, license, lease, or otherwise dispose of all or any portion of any
Collateral, by private or public sale, other disposition or any other means
permissible under applicable law, or (c) to notify account debtors or
directly collect accounts receivable or other payment, or (d) to foreclose
upon, take possession of or sell or otherwise dispose of any Collateral.

 

1.9                               “Event of
Default” has the meaning ascribed to the term in the LCP Loan Agreement.

 

1.10                        “LCP”
means Lighthouse Capital Partners V, L.P and its assigns under the LCP Loan
Agreement.

 

1.11                        “LCP IP
Security Agreement” means the Intellectual Property Security Agreement
dated as of August 13, 2010 between LCP and Company pursuant to which
Company granted LCP security interests in its intellectual property.

 

1.12                        “LCP Loan
Agreement” means the Loan and Security Agreement No. 4521 originally
dated March 28, 2005, as amended in writing from time to time, including
Amendment No. 8 and any subsequent amendments.

 

1.13                        “New Value
Obligations” has the meaning ascribed to the term in Amendment No. 8,
provided, that in no event shall the aggregate principal amount of the New
Value Obligations exceed $2,290,918.91.

 

1.14                        “Obligations”
has the meaning ascribed to the term in the LCP Loan Agreement

 

1.15                        “Permitted
Payments” means (i) regular monthly installments of principal or
interest on the Senior LCP Debt paid by the Company to LCP pursuant to the
terms of the LCP Loan Agreement; (ii) regular monthly installments of
principal or interest on the Subordinated Debt paid by the Company to LCP
pursuant to the terms of the LCP Loan Agreement unless any indebtedness under a
Bridge Note is outstanding and Bridge Lender has provided LCP with written
notice that an Event of Default under Sections7(a),7(b) or 7(c) of a
Bridge Note has occurred and is continuing without forbearance; (iii) payment
by the Company of the amount due pursuant to Section 7.9 of The Bridge
Note Agreement; (iv) regular monthly installments of principal and/or
interest paid by the Company to Bridge Lender pursuant to the terms of a Bridge
Note unless any Senior LCP Debt is outstanding and LCP has provided Bridge
Lender with written notice that an Event of Default under Sections 8.1, 8.10 or
8.11 has occurred and is continuing without forbearance; and (v) payment
by the Company of the amount due pursuant to Section 1 of Article VII
of Amendment No. 8.

 

1.16                        “Recovery”
means (a) the receipt by any Secured Party of any Collateral or Proceeds
of any Collateral as a result of an Enforcement Action by such Secured Party;
and (b) the receipt by any Secured Party of any payment or distribution of
assets of the Company of any kind or character on account of any of the Senior
LCP Debt, any indebtedness due a Bridge Lender, or the Subordinated Debt,
whether in cash, property or securities, upon the dissolution, winding-up or
total or partial liquidation or reorganization, readjustment, arrangement or
similar proceeding relating to the Company or its property, whether voluntary
or involuntary or in any insolvency proceeding; provided that a Permitted
Payment shall not be a Recovery.

 

 

1.17                        “Secured
Party” means either or both LCP or Bridge Lender as the context requires.

 

1.18                        “Senior LCP
Debt” means the New Value Obligations together with any interest that
accrues on the principal amount thereof subsequent to the commencement of a
case under the Bankruptcy Code, whether or not such interest is allowed as a
claim in such case.

 

1.19                        “Senior LCP
IP Security Interest” means the security interest granted LCP pursuant to
Section 2 of the LCP IP Security Agreement.

 

1.20                        “Senior LCP
Security Interest” means the Senior LCP IP Security Interest together with
any other lien, pledge or security interest of LCP to the extent that such
lien, pledge or security interest secures the New Value Obligations.

 

1.21                        “Standstill
Period” means the period expiring ninety (90) days after the date LCP
receives written notice from Bridge Lender that an event of default has
occurred under a Bridge Note.

 

1.22                        “Subordinated
Debt” means all Obligations other than the New Value Obligations.

 

1.23                        “Subordinated
Security Interest” means all liens and security interests granted LCP in
the property of the Company to the extent that they secure the Subordinated
Debt.

 

Terms used but not defined
in this Agreement that are defined in Division 9 of the California Uniform
Commercial Code and shall have the meaning ascribed to such term therein.  Each entity or person referred to includes
that entity or person’s lawful and permitted successors and assigns.

 

2.                                      Perfection
of Security Interests. If a Secured Party is unable to perfect a
security interest in any of the Collateral including, without limitation,
control over deposit accounts and securities accounts and/or possession of
certain property, the other Secured Party agrees to act as agent with respect
to such Collateral for perfection by possession or exercise of control and to
promptly perform written instructions received from such Secured Party with
respect to such Collateral that are reasonably necessary to undertake
Enforcement Actions upon the commencement of that Secured Party’s ability to initiate
Enforcement Actions in accordance with Section 6.  The enforcing Secured Party agrees to defend,
indemnify and hold harmless the Secured Party acting as agent, together with
all of its partners, officers, employees and agents from (a) all obligations,
demands, claims, and liabilities claimed or asserted by any other party in
connection with or relating to any action taken by the Secured Party acting as
agent at the request or instruction of the enforcing Secured Party and (b) all
losses or expenses in any way suffered, incurred, or paid by the Secured Party
acting as agent as a result of or in any way arising out of, following or
consequential to any action taken by the Secured Party acting as agent at the
request or instruction of the enforcing Secured Party (including without
limitation, reasonable attorneys fees and expenses), except for losses arising
from or out of such Secured Party’s gross negligence or willful misconduct.

 

3.                                      Lien
Ranking.

 

(a)                                  Notwithstanding
any contrary priority established by (i) the filing dates of their
respective financing statements, (ii) the recording dates of any other
security perfection documents, (iii) the time or order of attachment or
perfection of their respective security interests in the Collateral, or (iv) which
Secured Party has possession of or control over any of the Collateral, the
Secured Parties agree that the Senior LCP Security Interest in the Collateral
shall at all times be senior and prior in all respects to the Bridge Loan
Security Interest in the Collateral and the Bridge Loan Security Interest in
the Collateral shall at all times be junior and subordinate in all respects to
the Senior LCP Security Interest.

 

 

(b)                                 Notwithstanding
any contrary priority established by (i) the filing dates of their
respective financing statements, (ii) the recording dates of any other
security perfection documents, (iii) the time or order of attachment or
perfection of their respective security interests in the Collateral, or (iv) which
Secured Party has possession of or control over any of the Collateral, the
Secured Parties agree that the Senior LCP Security Interest and the Bridge Debt
Security Interest in the Collateral shall at all times be senior and prior in
all respects to the Subordinated Security Interest in the Collateral and the
Subordinated Security Interest in the Collateral shall at all times be junior
and subordinate in all respects to both the Senior LCP Security Interest and
the Bridge Loan Security Interest.

 

4.                                      Debt
Subordination.  All
indebtedness of any kind or character, including without limitation under the
Bridge Notes, now or hereafter owing by the Company to Bridge Lender is
subordinated in right to payment to the Senior LCP Debt subject to Permitted
Payments.  All Subordinated Debt is subordinated
in right to payment to the obligations under the Bridge Notes subject to
Permitted Payments.

 

5.                                      Permitted
Payments.  A Secured
Party is entitled to receive and retain for its own account all Permitted
Payments, and Permitted Payments are not subject to Sections 7 or 9 of this
Agreement.

 

6.                                      Enforcement
Actions.  So long as
any Senior LCP Debt is outstanding, Bridge Lender shall not initiate or
prosecute any Enforcement Action until the expiration of the Standstill
Period.  Nothing in this Section 6
shall be deemed to prohibit Bridge Lender from giving the Company notice of a
default under a Bridge Note, provided that Bridge Lender shall concurrently
provide LCP with written notice thereof. 
LCP will provide Bridge Lender with prompt written notice of  (i) an Event of Default of which LCP is
aware and (ii) any initiation of an Enforcement Action.  Bridge Lender will provide LCP with prompt
written notice of  (i) an Event of
Default under a Bridge Note of which a Bridge Lender is aware and (ii) any
initiation of an Enforcement Action.

 

7.                                      Turnover.

 

(a)                                  During
continuance of an Event of Default of which Bridge Lender has been notified and
until the Senior LCP Debt is paid in full, Bridge Lender shall hold in trust
for and deliver to LCP in the form received (except for endorsement or
assignment by Bridge Lender) any payment, distribution, security or proceeds it
receives on account of indebtedness subordinated to the Senior LCP Debt
pursuant to Section 4.

 

(b)                                 During
continuance of an Event of Default under a Bridge Note of which LCP has been
notified and until all obligations under the Bridge Notes are paid in full, LCP
shall hold in trust for and deliver to Bridge Lender in the form received
(except for endorsement or assignment by Bridge Lender) any payment,
distribution, security or proceeds it receives on account of the Subordinated
Indebtedness pursuant to Section 4.

 

8.                                      Conversion
to Equity.  Nothing in
this Agreement shall be deemed to prohibit or restrict Bridge Lender from
converting all or any portion of the Eligible Debt into equity securities of
Company.

 

9.                                      Collateral
Proceeds Sharing.  Each of the
Secured Parties agrees that Recoveries shall be shared by the Secured Parties
and shall be paid to and applied as follows:

 

(a)                                  First, to the
payment of all reasonable costs of enforcement and collateral preservation and
disposition incurred by LCP, if any, in connection with any such Recovery;

 

(b)                                 Second, after
payment in full of all amounts contemplated in clause (a) above, to LCP
until the Senior LCP Debt is paid in full;

 

 

(c)                                  Third, after
payment in full of all amounts contemplated in clauses (a) and (b) above,
to the payment of all reasonable costs of enforcement and collateral
preservation and disposition incurred by a Bridge Lender, if any, in connection
with any such Recovery;

 

(d)                                 Fourth, after
payment in full of all amounts contemplated in clauses (a) through (c) above,
to Bridge Lender until obligations under the Bridge Notes are paid in full;

 

(e)                                  Fifth, after
payment in full of all amounts contemplated in clauses a through (d) above,
to LCP until the remaining Obligations are paid in full;

 

(f)                                    Finally, after
payment in full of all amounts contemplated in clauses (a) through (e) above,
the surplus, if any, shall be paid to the Company or any of its respective
successors or to whomsoever may be lawfully entitled to receive the same.

 

The foregoing hierarchy of
payment and applications shall be followed for each and every distribution of
Recoveries.

 

10.                               Purchase
Option.  Bridge
Lender agrees that any time following a Purchase Event LCP shall have the
option (the right but not the obligation) for LCP or its designee to purchase
the Bridge Notes and all rights to the Bridge Debt Security Interest
(collectively the “Bridge Debt”) without warranty or representation or recourse
(except as otherwise provided for in the Assignment Agreement) in consideration
of payment in good funds to Bridge Lender the outstanding obligations under the
Bridge Notes (the “Purchase Price”). 
If LCP or its designee chooses to exercise such right, it must
irrevocably notify Bridge Lender thereof within two (2) Business Days
following the occurrence of the applicable Purchase Event, and the parties
shall close promptly thereafter, but in any event within two (2) Business
Days following notice of the exercise of LCP’s purchase right (the “Purchase
Period”).  If LCP or its designee
chooses to exercise its purchase right, such purchase shall be effected
pursuant the Assignment Agreement and payment to Bridge Lender of the Purchase
Price.  Upon LCP or its designee
providing Bridge Lender with irrevocable notice of its election to purchase the
Bridge Debt on such terms, LCP or its designee shall be obligated to purchase
the Bridge Debt for the Purchase Price. 
If LCP elects not to exercise the purchase right under this Section 10  (or does not so irrevocably provide notice of
such exercise within the required timeframe or close the purchase within the
Purchase Period), Bridge Lender shall have no further obligations pursuant to
this Section 10. Bridge Lender shall not commence any Enforcement Action
during the Purchase Period; provided, that, if upon expiration of the
Purchase Period, the parties have not closed the transaction, Bridge Lender
may, at its option, commence or pursue any such Enforcement Action.  As used herein, the term “Purchase Event”
means the occurrence of any of the following events: (a) the receipt by
LCP of written notice from a Bridge Lender of intent to commence an Enforcement
Action in accordance with Section 6, which Bridge Lender agrees to provide
at least two (2) Business Days prior to commencing any Enforcement Action,
or (b) the commencement of any Proceeding.

 

11.                               Release
of Collateral on Authorized Disposition.  Each Secured Party shall release all of its
liens and security in Collateral as to which the enforcing Secured Party
releases all of its liens and security interests in connection with a sale or
disposition of such Collateral by (i) a Secured Party pursuant to an
Enforcement Action permitted hereunder or (ii) by the Company as permitted
under the LCP Loan Agreement and the Bridge Notes and related documents;
provided that neither Secured Party shall be deemed to have released its
security interest in any proceeds of such disposition.

 

12.                               Insolvency.  The terms of this Agreement remain in full
force and effect, despite Company’s insolvency, reorganization or any case or
proceeding under any Bankruptcy or insolvency law.

 

 

13.                               Legends.  No amendment of the Bridge Notes, LCP Loan
Agreement or any instruments or documents relating thereto will modify this
Agreement in any way.  Each Party hereto
may, but is not obligated to, put legends upon the documents to which it is a
party with Aryx referencing this Agreement.

 

14.                               Choice
of Law and Venue.  All
judicial proceedings (to the extent that the reference requirement of Section 15  is not applicable) arising in or under or
related to this Agreement may be brought in any state or federal court located
in the State of California.  By execution
and delivery of this Agreement, each party hereto generally and
unconditionally: (a) consents to nonexclusive personal jurisdiction in San
Francisco County, State of California; (b) waives any objection as to
jurisdiction or venue in San Francisco County, State of California;
(c) agrees not to assert any defense based on lack of jurisdiction or
venue in the aforesaid courts; and (d) irrevocably agrees to be bound by
any judgment rendered thereby, in each case, in connection with this Agreement.  Service of process on any party hereto in any
action arising out of or relating to this Agreement shall be effective if given
in accordance with the requirements for notice set forth in Section 18,
and shall be deemed effective and received as set forth in Section 16.  Nothing herein shall affect the right to
serve process in any other manner permitted by law or shall limit the right of
either party to bring proceedings in the courts of any other jurisdiction.

 

15.                               Mutual
Waiver of Jury Trial / Judicial Reference.

 

(a)                                  Because
disputes arising in connection with complex financial transactions are most
quickly and economically resolved by an experienced and expert person and the
parties wish applicable state and federal laws to apply (rather than
arbitration rules), the parties desire that their disputes be resolved by a
judge applying such applicable laws. 
EACH PARTY SPECIFICALLY WAIVES ANY RIGHT IT MAY HAVE TO TRIAL BY
JURY OF ANY CAUSE OF ACTION, CLAIM, CROSS-CLAIM, COUNTERCLAIM, THIRD PARTY
CLAIM OR ANY OTHER CLAIM (COLLECTIVELY, “CLAIMS”).  This waiver extends to all such Claims,
including Claims that involve Persons other than a party hereto; Claims that
arise out of or are in any way connected to the relationship amongst the
parties hereto; and any Claims for damages, breach of contract, tort, specific
performance, or any equitable or legal relief of any kind, arising out of this
Agreement.

 

(b)                                 If the waiver
of jury trial set forth in Section 17(a) is ineffective or
unenforceable, the parties agree that all Claims shall be resolved by reference
to a private judge sitting without a jury, pursuant to Code of Civil Procedure Section 638,
before a mutually acceptable referee or, if the parties cannot agree, a referee
selected by the Presiding Judge of the San Francisco County, California.  Such proceeding shall be conducted in San
Francisco County, California, with California rules of evidence and
discovery applicable to such proceeding.

 

(c)                                  In the event
Claims are to be resolved by judicial reference, either party may seek from a
court identified in Section 16 for any prejudgment order, writ or other
relief and have such prejudgment order, writ or other relief enforced to the
fullest extent permitted by law notwithstanding that all Claims are otherwise
subject to resolution by judicial reference.

 

16.                               Notices.  All notices required or permitted under this
Agreement shall be in writing and shall be deemed effectively given:
(a) upon personal delivery to the party to be notified, (b) when sent
by confirmed telex, electronic mail or facsimile if sent during normal business
hours of the recipient, if not, then on the next business day, (c) five (5) days
after having been sent by registered or certified mail, return receipt
requested, postage prepaid, or (d) one (1) day after deposit with a
nationally recognized overnight courier, specifying next day delivery, with
written verification of receipt.  All
communications shall be sent to the addresses set forth on the signature page hereto
and as may be designated by ten (10) days advance written notice to the
other parties hereto.

 

 

17.                               Other
Provisions.

 

17.1                        This Agreement
binds and benefits each Secured Party, and their respective successors or
assigns.  This Agreement is for Bridge
Lender’s and LCP’s benefit and not for the benefit of the Company or any other
party.  Company has no rights
hereunder.  This Agreement is made only
for the benefit of the parties and their successors and assigns, and may not be
relied upon by any other third party, including Company or any successor thereto
or any judgment lien creditor thereof.

 

17.2                        This Agreement
represents the entire agreement of the Parties with respect to the subject
matter hereof, and supersedes prior negotiations or agreements.  This Agreement may be amended only by written
instrument signed by Bridge Lender and LCP.

 

17.3                        Each party
hereto warrants and represents to the others that it has full power and
authority to enter hereinto and to perform all obligations hereunder, that this
Agreement is valid, binding and enforceable in accordance with its terms and
that execution and performance hereof does not violate any agreement with any
other person or entity..

 

17.4                        This Agreement
may be executed in two or more counterparts, each of which is an original and
all of which together constitute one instrument.

 

 [Signature pages follow]

 

 

“LCP”

 

LIGHTHOUSE
CAPITAL PARTNERS V, L.P.

By: Lighthouse Management Partners V, L.L.C., 

its general partner

 

 

	
  By:

  	
  /s/ Thomas Conneely

  	
   

  
	
   

  	
   

  
	
  Name:

  	
  Thomas Conneely

  	
   

  
	
   

  	
   

  
	
  Title:

  	
  Vice President

  	
   

  
	
   

  	
   

  
	
  Address:

  	
  500 Drake’s Landing Road

  	
   

  
	
   

  	
  Greenbrae, CA 94904

  	
   

  
						

 

SIGNATURE
PAGE TO

INTERCREDITOR
AGREEMENT

 

 

“Bridge Lender”

 

AYER CAPITAL PARTNERS MASTER    FUND, L.P.

By: Ayer Capital Partners, LLC,
its general partner

 

 

	
  By:

  	
  /s/ Jay Venkatesan

  	
   

  

Name:
Jay Venkatesan

Title:
Managing Member

 

 

AYER CAPITAL PARTNERS KESTREL  FUND, L.P.

By: Ayer Kestrel Partners, LLC,
its general partner

 

 

	
  By:

  	
  /s/ Jay Venkatesan

  	
   

  

Name:
Jay Venkatesan

Title:
Managing Member

Address:

 

Ayer
Capital Management, LP

Attn:  Jay Venkatesan

230
California Street, Suite 600

San
Francisco, CA 94123

f:
(415) 651-9005

 

SIGNATURE
PAGE TO

INTERCREDITOR AGREEMENT

 

 

“Bridge Lenders”

 

MPM BIOVENTURES III, L.P.

By:  MPM BioVentures III GP,
L.P., its General Partner

By:
MPM BioVentures III LLC, its General Partner

 

 

	
  By:

  	
  /s/ Nicholas Simon III

  	
   

  
	
   

  	
   

  	
   

  
	
  Print Name:

  	
  Nicholas Simon III

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
  Series A Member

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
  200 Clarendon Street, 54th Floor

  	
   

  
	
   

  	
  Boston, MA 02116

  	
   

  
						

 

MPM BIOVENTURES III-QP, L.P.

By:  MPM BioVentures III GP,
L.P., its General Partner

By:
MPM BioVentures III LLC, its General Partner

 

 

	
  By:

  	
  /s/ Nicholas Simon III

  	
   

  
	
   

  	
   

  	
   

  
	
  Print Name:

  	
  Nicholas Simon III

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
  Series A Member

  	
   

  
					

 

	
  Address:

  	
  200 Clarendon Street, 54th Floor

  	
   

  
	
   

  	
  Boston, MA 02116

  	
   

  

 

MPM BIOVENTURES III GMBH & CO. BETEILIGUNGS KG

By:  MPM BioVentures III GP,
L.P., in its capacity as Managing Limited Partner

By:
MPM BioVentures III LLC, its General Partner

 

 

	
  By:

  	
  /s/ Nicholas Simon III

  	
   

  
	
   

  	
   

  	
   

  
	
  Print Name:

  	
  Nicholas Simon III

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
  Series A Member

  	
   

  
					

 

	
  Address:

  	
  200 Clarendon Street, 54th Floor

  	
   

  
	
   

  	
  Boston, MA 02116

  	
   

  

 

SIGNATURE PAGE TO

INTERCREDITOR
AGREEMENT

 

 

“Bridge
Lenders”

 

MPM BIOVENTURES III PARALLEL FUND, L.P.

By:  MPM BioVentures III GP,
L.P., its General Partner

By:
MPM BioVentures III LLC, its General Partner

 

 

	
  By:

  	
  /s/ Nicholas Simon III

  	
   

  
	
   

  	
   

  	
   

  
	
  Print Name:

  	
  Nicholas Simon III

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
  Series A Member

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
  200 Clarendon Street, 54th Floor

  	
   

  
	
   

  	
  Boston, MA 02116

  	
   

  
						

 

MPM ASSET MANAGEMENT INVESTORS 2002 BVIII LLC

 

 

	
  By:

  	
  /s/ Nicholas Simon III

  	
   

  
	
   

  	
   

  	
   

  
	
  Print Name:

  	
  Nicholas Simon III

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
  Manager

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
  200 Clarendon Street, 54th Floor

  	
   

  
	
  Boston,
  MA 02116

  	
   

  
						

 

SIGNATURE PAGE TO

INTERCREDITOR
AGREEMENT

 

 

The Company acknowledges and
consents to the terms of this Agreement. The Company agrees to that it will
make no payments inconsistent with the terms of this Agreement

 

“Company”

 

ARYx INTERNATIONAL, INC.

 

 

	
  By:

  	
  /s/ Paul Goddard

  	
   

  
	
   

  	
   

  	
   

  
	
  Print Name:

  	
  Paul Goddard, Ph.D.

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
  Chairman and Chief
  Executive Officer

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
  6300 Dumbarton Circle

  	
   

  
	
   

  	
  Fremont, CA 94555

  	
   

  
						

 

SIGNATURE PAGE TO

INTERCREDITOR AGREEMENT

 

 

EXHIBIT A

 

Amendment No. 8

 

[see attached]

 

 

EXHIBIT B

 

FORM OF ASSIGNMENT
AGREEMENT

 

LENDER ASSIGNMENT AGREEMENT

 

This
LENDER ASSIGNMENT AGREEMENT (this “Agreement”) dated as of
              ,
20        , is made between
                                          ,
a Delaware corporation (the “Assignor”)
and LCP  CAPITAL
PARTNERS V, L.P., a Delaware limited partnership (the “Assignee”).

 

WHEREAS, the Assignor and [Borrower] (“Borrower”),
have entered into that certain Note and Warrant Purchase Agreement, dated August 13,
2010 (as amended and in effect from time to time, the “Purchase Agreement”),
pursuant to which Borrower issues Secured Promissory Notes (the “Notes”) to Assignor and the other
lender which are secured pursuant to the terms of a Security Agreement (the “Security Agreement”), dated as of August 13,
2010  among Borrower, as pledgor, and
Assignor and the other pledgees thereunder, as pledgees, and by certain other
security agreements (collectively with the Purchase Agreement, Notes and the Security
Agreement, the “Documents”); and

 

WHEREAS, Assignor desires to assign, and Assignee agrees to
accept the assignment of all of the Assignor’s interest in the Documents on the
terms and conditions set forth herein;

 

NOW, THEREFORE, for good and valuable consideration, the
receipt and adequacy of which are hereby acknowledged, and intending to be
legally bound, the parties hereto hereby agree as follows

 

1.             The Assignor
hereby sells and assigns to the Assignee, and the Assignee hereby purchases and
assumes from the Assignor, WITHOUT RECOURSE to the Assignor, one hundred
percent (100%) of the right, title and interest of Assignor in, to and under (i) the
Documents, including, without limitation, such documents set forth on Annex 1 hereto, and (ii) all obligations owing to the
Assignor under the Documents as of the date hereof (collectively, the “Assigned Interest”).

 

2.             The Assignor
(i) represents and warrants that it is the legal and beneficial owner of
the interest being assigned by it hereunder and that such interest is free and
clear of any adverse claim; (ii) represents and warrants that it had full
authority to enter into the Documents; (iii)   represents and warrants that it has no
knowledge of any facts or circumstances that would cause any term or provision
of any Document to be invalid or unenforceable outside of a bankruptcy
proceeding commenced by or against Borrower(iv) makes no representation or
warranty and assumes no responsibility with respect to any statements,
warranties or representations made in or in connection with the Assigned
Interest or the execution, legality, validity, enforceability, genuineness,
sufficiency or value of the Documents or any other instrument or document
furnished pursuant thereto; and (v) makes no representation or warranty
and assumes no responsibility with respect to the financial condition of any
part to any of the Assigned Interest or any Document or the performance or
observance by any such party of any of its respective obligations thereunder.

 

3.             The Assignee
(i) confirms that it has received a copy of the Documents, together with
such other documents and information as it has deemed appropriate to make its
own credit analysis and decision to enter into this Agreement; (ii) agrees
that it will, independently and without reliance upon the Assignor, and based
on such documents and information as it shall deem appropriate at the time,
continue to make its own 

 

 

credit
decisions in taking or not taking action under the Documents; and (iii) agrees
that it will become a party to and be bound by the Documents on the date hereof
as if it were an original “Lender”, “Purchaser” and “Secured Party” thereunder
(collectively, “Lender”) and will have the
rights and obligations of a Lender thereunder and will perform in accordance
with their terms all of the obligations which by the terms of the Documents are
required to be performed by it as a Lender.

 

4.             Upon the
execution and delivery of by the parties hereto of this Agreement, (i) the
Assignee shall be a party to the Documents and have the rights and obligations
of a Lender thereunder in accordance with its Assigned Interest; and
(ii) the Assignor shall relinquish its rights and be released from its
obligations under the Documents.

 

5.             From and after
the date hereof, all payments under the Documents to be made to a Lender shall
be made to the Assignee in respect of the Assigned Interest (including, without
limitation, all payments of principal, interest, and fees with respect
thereto).

 

6.             This Assignment
and Assumption shall be governed by and construed in accordance with the laws
which govern the Documents.

 

	
   

  	
  LIGHTHOUSE CAPITAL PARTNERS V,
  L.P.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [ASSIGNOR]

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:Exhibit 10.1

 

EXECUTION VERSION

 

 

$1,000,000,000

 

THREE-YEAR TERM
CREDIT AGREEMENT

 

Dated as of August 13,
2010

 

AMONG

 

AON CORPORATION,

 

as Borrower,

 

THE LENDERS,

 

CREDIT SUISSE AG

 

as Administrative
Agent,

 

MORGAN STANLEY
SENIOR FUNDING, INC.

 

as Syndication Agent

 

and

 

BANK OF AMERICA,
N.A.,

 

DEUTSCHE BANK
SECURITIES INC.

 

and

 

RBS SECURITIES INC.

 

as Co-Documentation
Agents

 

 

CREDIT SUISSE
SECURITIES (USA) LLC

 

and

 

MORGAN STANLEY
SENIOR FUNDING, INC.

 

as Joint Lead
Arrangers and Joint Bookrunners

 

and

 

BANK OF AMERICA,
N.A.,

 

DEUTSCHE BANK
SECURITIES INC.

 

and

 

RBS SECURITIES INC.

as Co-Arrangers

 

 

TABLE OF
CONTENTS

 

 

	
   

  	
  PAGE

  
	
   

  	
   

  
	
  ARTICLE 1

  	
   

  
	
  DEFINITIONS

  	
   

  
	
   

  	
   

  
	
  Section 1.01. Definitions

  	
  1

  
	
   

  	
   

  
	
  ARTICLE 2

  	
   

  
	
  THE CREDITS

  	
   

  
	
   

  	
   

  
	
  Section 2.01. Commitment

  	
  20

  
	
  Section 2.02. Required Payments

  	
  20

  
	
  Section 2.03. Ratable Loans

  	
  20

  
	
  Section 2.04. Types of Advances

  	
  20

  
	
  Section 2.05. Undrawn Commitment Fee /
  Termination or Reductions of Commitments

  	
  20

  
	
  Section 2.06. Minimum Amount of Each
  Advance

  	
  21

  
	
  Section 2.07. Optional Principal
  Payments

  	
  21

  
	
  Section 2.08. Method of Selecting
  Types and Interest Periods for New Advances

  	
  21

  
	
  Section 2.09. Conversion and
  Continuation of Outstanding Advances

  	
  22

  
	
  Section 2.10. Interest Rate, Etc

  	
  22

  
	
  Section 2.11. Rates Applicable After
  Default

  	
  23

  
	
  Section 2.12. Method of Payment

  	
  23

  
	
  Section 2.13. Noteless Agreement;
  Evidence of Indebtedness

  	
  23

  
	
  Section 2.14. Telephonic Notices

  	
  24

  
	
  Section 2.15. Interest Payment
  Dates; Interest and Fee Basis

  	
  24

  
	
  Section 2.16. Notification of
  Advances, Interest Rates, Prepayments and Commitment Reductions

  	
  25

  
	
  Section 2.17. Lending Installations

  	
  25

  
	
  Section 2.18. Non-Receipt of Funds
  by the Administrative Agent

  	
  25

  
	
  Section 2.19. Replacement of Lender

  	
  26

  
	
   

  	
   

  
	
  ARTICLE 3

  	
   

  
	
  YIELD PROTECTION; TAXES

  	
   

  
	
   

  	
   

  
	
  Section 3.01. Yield Protection

  	
  26

  
	
  Section 3.02. Changes in Capital
  Adequacy Regulations

  	
  27

  
	
  Section 3.03. Availability of Types
  of Advances

  	
  28

  
	
  Section 3.04. Funding
  Indemnification

  	
  28

  
	
  Section 3.05. Taxes

  	
  28

  
	
  Section 3.06. Lender Statements;
  Survival of Indemnity

  	
  30

  

 

i

 

	
  ARTICLE 4

  	
   

  
	
  CONDITIONS PRECEDENT

  	
   

  
	
   

  	
   

  
	
  Section 4.01. Effectiveness

  	
  31

  
	
  Section 4.02. Conditions Precedent
  to the Advances on the Closing Date

  	
  32

  
	
   

  	
   

  
	
  ARTICLE 5

  	
   

  
	
  REPRESENTATIONS AND WARRANTIES

  	
   

  
	
   

  	
   

  
	
  Section 5.01. Corporate Existence
  and Standing

  	
  35

  
	
  Section 5.02. Authorization and
  Validity

  	
  35

  
	
  Section 5.03. Compliance with Laws
  and Contracts

  	
  35

  
	
  Section 5.04. Governmental Consents

  	
  36

  
	
  Section 5.05. Financial Statements

  	
  36

  
	
  Section 5.06. Material Adverse
  Change

  	
  36

  
	
  Section 5.07. Taxes

  	
  36

  
	
  Section 5.08. Litigation and
  Contingent Obligations

  	
  37

  
	
  Section 5.09. ERISA

  	
  37

  
	
  Section 5.10. Defaults

  	
  37

  
	
  Section 5.11. Regulation U

  	
  37

  
	
  Section 5.12. Investment Company

  	
  38

  
	
  Section 5.13. Ownership of
  Properties

  	
  38

  
	
  Section 5.14. Material Agreements

  	
  38

  
	
  Section 5.15. Environmental Laws

  	
  38

  
	
  Section 5.16. Insurance

  	
  39

  
	
  Section 5.17. Insurance Licenses

  	
  39

  
	
  Section 5.18. Disclosure

  	
  39

  
	
  Section 5.19. Solvency

  	
  39

  
	
  Section 5.20. Senior Debt

  	
  39

  
	
  Section 5.21. Foreign
  Corrupt Practices Act

  	
  40

  
	
   

  	
   

  
	
  ARTICLE 6

  	
   

  
	
  COVENANTS

  	
   

  
	
   

  	
   

  
	
  Section 6.01. Financial Reporting

  	
  40

  
	
  Section 6.02. Use of Proceeds

  	
  42

  
	
  Section 6.03. Notice of Default

  	
  42

  
	
  Section 6.04. Conduct of Business

  	
  42

  
	
  Section 6.05. Taxes

  	
  43

  
	
  Section 6.06. Insurance

  	
  43

  
	
  Section 6.07. Compliance with Laws

  	
  43

  
	
  Section 6.08. Maintenance of
  Properties

  	
  43

  
	
  Section 6.09. Inspection

  	
  43

  
	
  Section 6.10. Capital Stock and
  Dividends

  	
  44

  

 

ii

 

	
  Section 6.11. Merger

  	
  44

  
	
  Section 6.12. Liens

  	
  44

  
	
  Section 6.13. Affiliates

  	
  45

  
	
  Section 6.14. Change in Fiscal Year

  	
  45

  
	
  Section 6.15. Restrictive Agreements

  	
  45

  
	
  Section 6.16. Dispositions

  	
  46

  
	
  Section 6.17. Financial Covenants

  	
  46

  
	
  Section 6.18. ERISA

  	
  47

  
	
  Section 6.19. Indebtedness

  	
  47

  
	
   

  	
   

  
	
  ARTICLE 7

  	
   

  
	
  DEFAULTS

  	
   

  
	
   

  	
   

  
	
  Section 7.01. Defaults

  	
  48

  
	
   

  	
   

  
	
  ARTICLE 8

  	
   

  
	
  ACCELERATION, WAIVERS, AMENDMENTS
  AND REMEDIES

  	
   

  
	
   

  	
   

  
	
  Section 8.01. Acceleration

  	
  49

  
	
  Section 8.02. Amendments

  	
  50

  
	
  Section 8.03. Preservation of Rights

  	
  51

  
	
   

  	
   

  
	
  ARTICLE 9

  	
   

  
	
  GENERAL PROVISIONS

  	
   

  
	
   

  	
   

  
	
  Section 9.01. Survival of Representations

  	
  51

  
	
  Section 9.02. Governmental
  Regulation

  	
  51

  
	
  Section 9.03. Headings

  	
  51

  
	
  Section 9.04. Entire Agreement

  	
  52

  
	
  Section 9.05. Several Obligations;
  Benefits of this Agreement

  	
  52

  
	
  Section 9.06. Expenses;
  Indemnification

  	
  52

  
	
  Section 9.07. Numbers of Documents

  	
  54

  
	
  Section 9.08. Accounting

  	
  54

  
	
  Section 9.09. Severability of
  Provisions

  	
  54

  
	
  Section 9.10. Nonliability of
  Lenders

  	
  54

  
	
  Section 9.11. Confidentiality

  	
  54

  
	
  Section 9.12. Disclosure

  	
  55

  
	
  Section 9.13. USA PATRIOT ACT
  NOTIFICATION

  	
  55

  
	
   

  	
   

  
	
  ARTICLE 10

  	
   

  
	
  THE ADMINISTRATIVE AGENT

  	
   

  
	
   

  	
   

  
	
  Section 10.01. Authorization and
  Authority

  	
  55

  
	
  Section 10.02. Administrative Agent
  Individually

  	
  56

  

 

iii

 

	
  Section 10.03. Duties of Administrative
  Agent; Exculpatory Provisions

  	
  57

  
	
  Section 10.04. Reliance by
  Administrative Agent

  	
  58

  
	
  Section 10.05. Delegation of Duties

  	
  58

  
	
  Section 10.06. Resignation of
  Administrative Agent

  	
  59

  
	
  Section 10.07. Non-Reliance on
  Administrative Agent and Other Lenders

  	
  59

  
	
  Section 10.08. No Other Duties, Etc

  	
  60

  
	
   

  	
   

  
	
  ARTICLE 11

  	
   

  
	
  SETOFF; RATABLE PAYMENTS

  	
   

  
	
   

  	
   

  
	
  Section 11.01. Setoff

  	
  61

  
	
  Section 11.02. Ratable Payments

  	
  61

  
	
   

  	
   

  
	
  ARTICLE 12

  	
   

  
	
  BENEFIT OF AGREEMENT; ASSIGNMENTS;
  PARTICIPATIONS

  	
   

  
	
   

  	
   

  
	
  Section 12.01. Successors and Assigns

  	
  61

  
	
  Section 12.02. Participations

  	
  62

  
	
  Section 12.03. Assignments

  	
  63

  
	
  Section 12.04. Dissemination of
  Information

  	
  64

  
	
  Section 12.05. Tax Treatment

  	
  64

  
	
   

  	
   

  
	
  ARTICLE 13

  	
   

  
	
  NOTICES

  	
   

  
	
   

  	
   

  
	
  Section 13.01. Giving Notice

  	
  65

  
	
  Section 13.02. Change of Address

  	
  66

  
	
   

  	
   

  
	
  ARTICLE 14

  	
   

  
	
  COUNTERPARTS

  	
   

  
	
   

  	
   

  
	
  ARTICLE 15

  	
   

  
	
  CHOICE OF LAW; CONSENT TO
  JURISDICTION; WAIVER OF JURY TRIAL

  	
   

  
	
   

  	
   

  
	
  Section 15.01. CHOICE OF LAW

  	
  66

  
	
  Section 15.02. CONSENT TO
  JURISDICTION

  	
  66

  
	
  Section 15.03. WAIVER OF JURY TRIAL

  	
  67

  

 

iv

 

	
  Schedules

  	
   

  
	
   

  	
   

  
	
  Pricing Schedule

  	
   

  
	
  Schedule 1.01

  	
  Commitments

  
	
  Schedule 4.02(g)

  	
  Continuing Debt
  Instruments

  
	
  Schedule 5.21

  	
  Foreign Corrupt Practices
  Act Matters

  
	
   

  	
   

  
	
  Exhibits

  	
   

  
	
   

  	
   

  
	
  Exhibit A

  	
  Form Note

  
	
  Exhibit B

  	
  Form Compliance
  Certificate

  
	
  Exhibit C

  	
  Form Assignment
  Agreement

  
			

 

v

 

THREE-YEAR TERM
CREDIT AGREEMENT

 

This Three-Year Term Credit
Agreement, dated as of August 13, 2010, is among Aon Corporation, a
Delaware corporation, the Lenders (as defined below), and Credit Suisse AG, as Administrative
Agent.

 

R E C I T A L S:

 

A.            In connection with the Transactions (as defined below),
the Borrower has requested the Lenders to make financial accommodations to it
in the aggregate principal amount of $1,000,000,000; and

 

B.            The Lenders are willing to extend such financial
accommodations on the terms and conditions set forth below.

 

NOW, THEREFORE, in
consideration of the premises and of the mutual agreements made herein, and for
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows:

 

ARTICLE 1

DEFINITIONS

 

Section 1.01.  Definitions.  As used in this Agreement:

 

“Activities”
is defined in Section 10.02(b).

 

“Administrative
Agent” means Credit Suisse AG in its capacity as contractual
representative of the Lenders pursuant to Article 10, and not in its
individual capacity as a Lender, and any successor Administrative Agent
appointed pursuant to Article 10.

 

“Administrative
Questionnaire” shall mean an administrative questionnaire in a
form provided by the Administrative Agent which shall include, without
limitation, a designation by the assignee of one or more credit contacts to
whom all syndicate-level information (which may contain material non-public
information about the Borrower, the Company or their respective Subsidiaries,
related parties or securities) will be made available, who will comply with
Section 9.11 of this Agreement and who may receive such information in
accordance with the assignee’s compliance procedures and applicable laws,
including federal and state securities laws.

 

“Advance”
means a borrowing of Loans, (a) advanced by the Lenders on the same
Borrowing Date, or (b) converted or continued by the Lenders on the same
date of conversion or continuation, consisting, in either case, of the
aggregate amount of the several Loans of the same Type and, in the case of
Eurodollar Loans, for the same Interest Period.

 

“Affected
Lender” is defined in Section 2.19.

 

1

 

“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.

 

“Agent”
means the Administrative Agent, any Arranger, the Syndication Agent, the
Co-Documentation Agents and each Co-Arranger and “Agents”
means all of them.

 

“Agent’s
Group” is defined in Section 10.02(b).

 

“Aggregate
Commitment” means the aggregate of the Commitments of all the
Lenders, as reduced from time to time pursuant to the terms hereof.  The initial Aggregate Commitment is
$1,000,000,000.

 

“Aggregate
Outstanding Credit Exposure” means, at any time, the aggregate
of the Outstanding Credit Exposure of all the Lenders.

 

“Agreement”
means this Three-Year Term Credit Agreement, as it may be amended or modified
and in effect from time to time.

 

“Agreement
Accounting Principles” means generally accepted accounting
principles as in effect from time to time, applied in a manner consistent with
those used in preparing the financial statements referred to in Section 4.02(h).

 

“Alternate
Base Rate” means, for any day, a rate per annum equal to the
greatest of (a) the Prime Rate in effect on such day, (b) the Federal
Funds Effective Rate in effect on such day plus 1/2 of 1% and (c) the
Eurodollar Base Rate for a one month Interest Period on such day (or if such
day is not a Business Day, the immediately preceding Business Day) plus 1.00%; provided that,
for the avoidance of doubt, the Eurodollar Base Rate for any day shall be based
on the rate determined on such day at approximately 11 a.m. (London time)
by reference to the British Bankers’ Association Interest Settlement Rates for
deposits in dollars (as set forth by any service selected by the Administrative
Agent that has been nominated by the British Bankers’ Association as an
authorized vendor for the purpose of displaying such rates).  Any change in the Alternate Base Rate due to
a change in the Prime Rate, the Federal Funds Effective Rate or the Eurodollar
Base Rate shall be effective on the effective date of such change in the Prime
Rate, the Federal Funds Effective Rate or the Eurodollar Base Rate, as the case
may be.

 

“Alternate
Base Rate Advance” means an Advance which bears interest
determined by reference to the Alternate Base Rate.

 

“Alternate
Base Rate Loan” means a Loan which bears interest determined by
reference to the Alternate Base Rate.

 

2

 

“Applicable
Margin” means, (a) with respect to Alternate Base Rate
Advances, the percentage rate per annum which is applicable at such time with
respect to Alternate Base Rate Advances as set forth in the Pricing Schedule
and (b) with respect to Eurodollar Advances, the percentage rate per annum
which is applicable at such time with respect to Eurodollar Advances as set
forth in the Pricing Schedule.

 

“Approved
Fund” means any Fund that is administered or managed by (a) a
Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate
of an entity that administers or manages a Lender.

 

“Arrangers”
means Credit Suisse Securities (USA) LLC and Morgan Stanley Senior Funding, Inc.
and their respective successors, in their capacity as “Joint Lead Arrangers”.

 

“Article”
means an article of this Agreement unless another document is specifically
referenced.

 

“Authorized
Officer” means any of the president, chief financial officer,
treasurer or vice-president and controller of the Borrower, acting singly.

 

“Borrower”
means Aon Corporation, a Delaware corporation, and its successors and permitted
assigns.

 

“Borrower
Debt Rating” means the senior unsecured long-term debt (without
third party credit enhancement) rating of the Borrower as determined by a
rating agency identified on the Pricing Schedule.

 

“Borrowing
Date” means a date on which an Advance is made hereunder.

 

“Borrower
Material Adverse Change” is defined in Section 4.02(n).

 

“Borrower
Material Adverse Effect” means any event, change, effect,
development, state of facts, condition, circumstance or occurrence that is or
would reasonably be expected to be materially adverse to the business, assets,
liabilities, condition (financial or otherwise) or results of operations of the
Borrower and its Subsidiaries, taken as a whole, but shall not be deemed to
include any event, change, effect, development, state of facts, condition,
circumstance or occurrence: (i) in or affecting economic conditions
(including changes in interest rates) or the financial or securities markets in
the United States or elsewhere in the world, to the extent the Borrower and its
Subsidiaries are not adversely affected in a disproportionate manner relative
to other participants in the industries in which the Borrower and its
Subsidiaries operate, (ii) in or affecting the industries in which the
Borrower and its Subsidiaries operate generally (but, for the avoidance of
doubt, not including the industries in which the Borrower’s or any of its
Subsidiaries’ clients or customers operate), to the extent the Borrower and its
Subsidiaries are not adversely affected in a disproportionate manner relative
to other participants in the industries in which the Borrower and its
Subsidiaries operate or (iii) resulting from or arising out of (A) the
announcement or the existence of, or compliance with, or taking any action
required by the

 

3

 

Merger Agreement or the
Transactions (as defined in the Merger Agreement), (B) any taking of any
action at the written request of the Company (and, with respect to any material
action, with the prior written consent of the Arrangers, not to be unreasonably
withheld), (C) any litigation arising from allegations of a breach of
fiduciary duty or other violation of applicable Law relating to the Merger
Agreement or the Transactions (as defined in the Merger Agreement), (D) any
adoption, implementation, promulgation, repeal, modification, reinterpretation
or proposal, in each case after the date of the Merger Agreement, of any rule,
regulation, ordinance, order, protocol or any other Law of or by any national,
regional, state or local Governmental Entity, to the extent the Borrower and
its Subsidiaries are not adversely affected in a disproportionate manner relative
to other participants in the industries in which the Borrower and its
Subsidiaries operate, (E) any changes in GAAP or accounting standards or
interpretations thereof, to the extent the Borrower and its Subsidiaries are
not adversely affected in a disproportionate manner relative to other
participants in the industries in which the Borrower and its Subsidiaries
operate, (F) any outbreak or escalation of hostilities or acts of war or
terrorism, to the extent the Borrower and its Subsidiaries are not adversely
affected in a disproportionate manner relative to other participants in the
industries in which the Borrower and its Subsidiaries operate or (G) any
change in the share price or trading volume of the Parent Common Stock, in the
Borrower’s credit rating or in any analyst’s recommendations, in each case in
and of itself, or the Borrower’s failure to meet projections or forecasts
(including any analyst’s projections), in and of itself (provided,
in each case, that the event, change, effect, development, condition,
circumstance or occurrence underlying such change or failure shall not be
excluded, and may be taken into account, in determining whether there is or
would reasonably be expected to be a Borrower Material Adverse Effect).  The capitalized terms used in this definition
and not otherwise defined in this Agreement shall have the meanings set forth
in the Merger Agreement as in effect on the date hereof.

 

“Borrowing
Notice” is defined in Section 2.08.

 

“Bridge
Credit Agreement” means the Senior Bridge Term Loan Credit
Agreement dated as of the date hereof among Aon Corporation, as borrower,
Credit Suisse AG, as administrative agent, and the lenders and agents party
thereto as it may be amended or modified and in effect from time to time to the
extent permitted hereunder.

 

“Bridge
Loan Documents” means the “Loan Documents” as defined in the
Bridge Credit Agreement.

 

“Bridge
Loans” means the “Loans” as defined in the Bridge Credit
Agreement.

 

“Business
Day” means (a) with respect to any borrowing, payment or
rate selection of Eurodollar Advances, a day (other than a Saturday or Sunday)
on which banks generally are open in New York for the conduct of substantially
all of their commercial lending activities, interbank wire transfers can be
made on the Fedwire system and dealings in United States dollars are carried on
in the London interbank market and (b) for all other purposes, a day
(other than a Saturday or Sunday) on which banks generally are open in New York
for the conduct of

 

4

 

substantially all of their
commercial lending activities and interbank wire transfers can be made on the
Fedwire system.

 

“Cananwill
Securitization” means each of (i) the Second Amended and
Restated Purchase Agreement, dated as of March 30, 2001, by and among
Cananwill Premium Credit Trust, Cananwill Corporation, the Borrower, the
Purchasers and Managing Agents listed on the signature pages thereto and
JP Morgan Chase Bank, N.A. (successor by merger to Bank One, NA), as
Administrative Agent, (ii) the Receivables Purchase Agreement, dated as of
December 11, 2002, by and among Cananwill Canada Limited, the Borrower and
CIBC Mellon Trust Company, in its capacity as Trustee of Plaza Trust, (iii) the
Amended and Restated Receivables Purchase Agreement, dated as of December 19,
2002, by and among Cananwill Receivables Purchase Facility, L.L.C., Cananwill
Europe Limited, the Borrower, the Purchasers and Managing Agents listed on the
signature pages thereto and JP Morgan Chase Bank, N.A. (successor by
merger to Bank One, NA), as administrative agent and (iv) the Receivables
Facilities Agreement, dated as of December 20, 2001, by and among Abel
Tasman Holdings Pty Limited, Cananwill Australia Pty Limited, Cananwill, Inc.
and ABN AMRO Asset Management (Australia) Limited, in each case as the same may
be modified, amended or supplemented from time to time, provided that such
modification, amendment or supplement does not change the fundamental nature
thereof.

 

“Capitalized
Lease” of a Person means any lease of Property by such Person as
lessee which would be capitalized on a balance sheet of such Person prepared in
accordance with Agreement Accounting Principles.

 

“Capitalized
Lease Obligations” of a Person means the amount of the
obligations of such Person under Capitalized Leases which would be shown as a
liability on a balance sheet of such Person prepared in accordance with
Agreement Accounting Principles.

 

“Change”
is defined in Section 3.02.

 

“Change
in Control” means (a) the acquisition by any Person, or two
or more Persons acting in concert, including without limitation any acquisition
effected by means of any transaction contemplated by Section 6.11, of
beneficial ownership (within the meaning of Rule 13d-3 of the Securities
and Exchange Commission under the Securities Exchange Act of 1934) of 30% or
more of the outstanding shares of voting stock of the Borrower, or (b) during
any period of 25 consecutive calendar months, commencing on the date of this
Agreement, the ceasing of those individuals (the “Continuing
Directors”) who (i) were directors of the Borrower on the
first day of each such period or (ii) subsequently became directors of the
Borrower and whose initial election or initial nomination for election
subsequent to that date was approved by a majority of the Continuing Directors
then on the board of directors of the Borrower, to constitute a majority of the
board of directors of the Borrower.

 

“Closing
Date” shall mean the date on which the Merger is consummated and
the conditions precedent set forth in Section 4.02 have been satisfied or
waived.

 

5

 

“Closing
Date Specified Representations” means the representations and
warranties set forth in Sections 5.01(a), 5.02, 5.03 (other than the first
sentence thereof), 5.05, 5.11, 5.12, 5.18(a), 5.19 and 5.20.

 

“Co-Arranger
Commitment Letter” means that Co-Arranger Commitment Letter
dated as of July 21, 2010 from Credit Suisse AG, Credit Suisse Securities
(USA) LLC, Morgan Stanley Senior Funding, Inc., Bank of America, N.A.,
Deutsche Bank Securities Inc., Deutsche Bank AG Cayman Islands Branch, Deutsche
Bank AG New York Branch, and the Royal Bank of Scotland plc to the Borrower.

 

“Co-Arrangers”
means Bank of America, N.A., Deutsche Bank Securities Inc. and RBS Securities
Inc. (or, in each case, their respective successors), in their collective
capacity as “Co-Arrangers”.

 

“Co-Documentation
Agents” means Bank of America, N.A., Deutsche Bank Securities
Inc. and RBS Securities Inc. (or, in each case, their respective Affiliates and
successors), in their collective capacity as “Co-Documentation Agents”.

 

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

 

“Commitment”
means, for each Lender, the obligation of such Lender to make Loans to the
Borrower in an aggregate outstanding amount not exceeding the amount set forth
opposite its name on Schedule 1.01 hereto, 
as it may be modified as a result of any assignment that has become
effective pursuant to Section 12.03(b) or as otherwise modified from
time to time pursuant to the terms hereof.

 

“Commitment
Fee” is defined in Section 2.05(a).

 

“Commitment
Letter” means that Commitment Letter dated as of July 11,
2010 from Credit Suisse AG, Credit Suisse Securities (USA) LLC and Morgan
Stanley Senior Funding, Inc. to the Borrower.

 

“Communications”
is defined in Section 13.01.

 

“Company”
means Hewitt Associates, Inc., a Delaware corporation.

 

“Company
Material Adverse Change” is defined in Section 4.02(o).

 

“Company
Material Adverse Effect” means any event, change, effect,
development, state of facts, condition, circumstance or occurrence that is or
would be reasonably expected to be materially adverse to the business, assets,
liabilities, condition (financial or otherwise) or results of operations of the
Company and its Subsidiaries, taken as a whole, but shall not be deemed to
include any event, change, effect, development, state of facts, condition,
circumstance or occurrence: (i) in or affecting economic conditions
(including changes in interest rates) or the

 

6

 

financial or securities
markets in the United States or elsewhere in the world, to the extent the
Company and its Subsidiaries are not adversely affected in a disproportionate
manner relative to other participants in the industries in which the Company or
its Subsidiaries operate, (ii) in or affecting the industries in which the
Company or its Subsidiaries operate generally (but, for the avoidance of doubt,
not including the industries in which the Company’s or any of its Subsidiaries’
clients or customers operate), to the extent the Company and its Subsidiaries
are not adversely affected in a disproportionate manner relative to other
participants in the industries in which the Company or its Subsidiaries operate
or (iii) resulting from or arising out of (A) the announcement or the
existence of, or compliance with, or taking any action required by the Merger
Agreement or the Transactions (as defined in the Merger Agreement), (B) any
taking of any action at the written request of the Borrower, Merger Sub or
Merger LLC (and, with respect to any material action, with the prior written
consent of the Arrangers, not to be unreasonably withheld), (C) any litigation
arising from allegations of a breach of fiduciary duty or other violation of
applicable law relating to the Merger Agreement or the Transactions (as defined
in the Merger Agreement), (D) any adoption, implementation, promulgation,
repeal, modification, reinterpretation or proposal, in each case after the date
of the Merger Agreement, of any rule, regulation, ordinance, order, protocol or
any other Law of or by any national, regional, state or local Governmental
Entity, to the extent the Company and its Subsidiaries are not adversely
affected in a disproportionate manner relative to other participants in the
industries in which the Company or its Subsidiaries operate, (E) any
changes in GAAP or accounting standards or interpretations thereof, to the extent
the Company or its Subsidiaries are not adversely affected in a
disproportionate manner relative to other participants in the industries in
which the Company and its Subsidiaries operate, (F) any outbreak or
escalation of hostilities or acts of war or terrorism, to the extent the
Company and its Subsidiaries are not adversely affected in a disproportionate
manner relative to other participants in the industries in which the Company or
its Subsidiaries operate, or (G) any change in the share price or trading
volume of the shares of Company Common Stock, in the Company’s credit rating or
in any analyst’s recommendations, in each case in and of itself, or the failure
of the Company to meet projections or forecasts (including any analyst’s
projections), in and of itself (provided, in
each case, that the event, change, effect, development, condition, circumstance
or occurrence underlying such change or failure shall not be excluded, and may
be taken into account, in determining whether there is or would reasonably be
expected to be a Company Material Adverse Effect).  The capitalized terms used in this definition
and not otherwise defined in this Agreement shall have the meanings set forth
in the Merger Agreement as in effect on the date hereof.

 

“Condemnation”
is defined in Section 7.01(h).

 

“Confidential
Information Memorandum” means the Confidential Information
Memorandum of the Borrower dated June 2010.

 

“Consolidated”
or “consolidated”, when used in
connection with any calculation, means a calculation to be determined on a
consolidated basis for the Borrower and its Subsidiaries (or, when used with
respect to any other Person, such Person and its Subsidiaries) in accordance
with generally accepted accounting principles.

 

7

 

“Consolidated
Adjusted EBITDA” means, for any Measurement Period, Consolidated
Net Income for such period plus, (a) to the extent deducted from revenues
in determining Consolidated Net Income, (i) Consolidated Interest Expense,
(ii) expense for taxes paid or accrued, (iii) depreciation, (iv) amortization,
(v) extraordinary losses incurred other than in the ordinary course of
business, (vi) the Transaction Costs and (vii) non recurring cash
charges incurred for such period in connection with the Merger in an amount not
to exceed $50,000,000 in the aggregate during the term of this Agreement minus (b) to the extent included in Consolidated Net
Income, extraordinary gains realized other than in the ordinary course of
business, all calculated for the Borrower and its Subsidiaries on a
consolidated basis; provided that,
notwithstanding the foregoing provisions of this definition, no amounts shall
be added pursuant to clauses (i) through (v) for any losses, costs,
expenses or other charges resulting from the settlement of any Disclosed Claims
or any payments in respect of any judgments or other orders thereon or any
restructuring or other charges in connection therewith or relating thereto.

 

“Consolidated
Funded Debt” means, without duplication, (i) all
Indebtedness of the Borrower and its Subsidiaries of the types described in
clauses (a), (b), (c), (d) and (e) of the definition of Indebtedness
(excluding, for purposes of clauses (b) and (c), any leases that
constitute operating leases in accordance with Agreement Accounting
Principles), and (ii) all Indebtedness of the Borrower and its
Subsidiaries of the type described in clause (j) of the definition of
Indebtedness with respect to Indebtedness of the types described in clause (i) above,
calculated on a Consolidated basis.

 

“Consolidated
Interest Expense” means, for any Measurement Period, the
interest expense of the Borrower and its Subsidiaries calculated on a
consolidated basis for such period.

 

“Consolidated
Leverage Ratio” means, as of the last day of any Measurement
Period, the ratio of Consolidated Funded Debt at such date to Consolidated
Adjusted EBITDA for such Measurement Period; provided
that in the event that the Senior Notes are issued prior to the Closing Date
and the proceeds thereof are held in escrow pursuant to arrangements reasonably
satisfactory to the Administrative Agent, the outstanding principal amount of
the Senior Notes for the purpose of determining the Consolidated Leverage Ratio
at any time prior to the Closing Date shall be deemed to be the excess (if any)
of the outstanding principal amount of the Senior Notes over the escrowed
proceeds thereof.

 

“Consolidated
Net Income” means, with reference to any period, the net income
(or loss) of the Borrower and its Subsidiaries calculated on a consolidated
basis for such period.

 

“Consolidated
Net Worth” means, at any date of determination, the consolidated
common stockholders’ equity of the Borrower and its consolidated Subsidiaries
determined in accordance with Agreement Accounting Principles.

 

“Contingent
Obligation” of a Person means any agreement, undertaking or
arrangement by which such Person assumes, guarantees, endorses, contingently
agrees to purchase or provide funds for the payment of, or otherwise becomes or
is contingently liable upon, the obligation or liability of any other Person,
or agrees to maintain the net worth or working capital or other

 

8

 

financial condition of any
other Person, or otherwise assures any creditor of such other Person against
loss, including, without limitation, any comfort letter, operating agreement or
take or pay contract or application for a Letter of Credit.

 

“Continuing
Debt Instruments” means the agreements and instruments set forth
on Schedule 4.02(g) as the same may be supplemented, modified, amended,
refinanced or replaced from time to time; provided that
in each case the aggregate outstanding principal amount thereof (or credit
committed thereunder) is not increased without the consent of the Required
Lenders except as contemplated by Section 6.19(b).

 

“Controlled
Group” means all members of a controlled group of corporations
or other business entities and all trades or businesses (whether or not
incorporated) under common control which, together with the Borrower or any of
its Subsidiaries, are treated as a single employer under Section 414 of
the Code.

 

“Conversion/Continuation
Notice” is defined in Section 2.09.

 

“Credit
Extension” means the making of an Advance hereunder.

 

“Credit
Extension Date” means the Borrowing Date for an Advance.

 

“Default”
means an event described in Article 7.

 

“Defaulting
Lender” has the meaning specified in Section 2.19.

 

“Disclosed
Claims” means any litigation, proceeding or investigation
disclosed in (a) the Borrower’s annual report on Form 10-K for the
year ended December 31, 2008 and (b) the Borrower’s quarterly report
on Form 10-Q for the fiscal quarter ended September 30, 2009 as filed
with the Securities and Exchange Commission.

 

“Disposition”
or “Dispose” means the sale, transfer or
other disposition (including any sale and leaseback transaction), in each case
for consideration in any single transaction or series of related transactions
in excess of $25,000,000 (as determined reasonably in good faith by the
Borrower), by any Person of any Property (including any equity interests owned
by such Person, or any notes or accounts receivable or any rights and claims
associated therewith) of such Person (or the granting of any option or other
right to do any of the foregoing).

 

“Effective
Date” means the date this Agreement becomes effective in
accordance with Section 4.01.

 

“Effective
Date Specified Representations” means the representations and
warranties set forth in Sections 5.01(a), 5.02, 5.03 (other than the first
sentence thereof and clause (i)(B) of the second sentence thereof), 5.12
and 5.18.

 

“Environmental
Laws” is defined in Section 5.15.

 

9

 

“Environmental
Liability” has the meaning specified in Section 9.06(b).

 

“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended from time
to time, and any rule or regulation issued thereunder.

 

“Euro
Facility” means the €650,000,000 Facility Agreement dated as of
February 7, 2005 by and among the Borrower, the Subsidiaries of the
Borrower party thereto, Citibank International plc, as agent, and the financial
institutions parties thereto as lenders, as the same may be supplemented,
modified and amended from time to time, provided that,
in each case, the principal amount of the credit committed thereunder is not
increased without the consent of the Required Lenders except as contemplated by
Section 6.19(b).  References to any
specific section of the Euro Facility shall be deemed to refer to the corresponding
provision in the Euro Facility as modified, amended, renewed or refinanced from
time to time.

 

“Eurodollar
Advance” means an Advance which, except as otherwise provided in
Section 2.11, bears interest at the applicable Eurodollar Rate.

 

“Eurodollar
Base Rate” means, with respect to a Eurodollar Advance for the
Interest Period applicable to such Eurodollar Advance, the applicable British
Bankers’ Association Interest Settlement Rate for deposits in U.S. dollars
appearing on Reuters LIBOR01 Page as of 11:00 a.m. (London time) two
(2) Business Days prior to the first day of such Interest Period, and
having a maturity equal to such Interest Period, provided that, (i) if
Reuters LIBOR01 Page is not available to the Administrative Agent for any
reason, the applicable Eurodollar Base Rate for the relevant Interest Period
shall instead be the applicable British Bankers’ Association Interest
Settlement Rate for deposits in U.S. dollars as reported by any other generally
recognized financial information service as of 11:00 a.m. (London time)
two (2) Business Days prior to the first day of such Interest Period, and
having a maturity equal to such Interest Period, and (ii) if no such
British Bankers’ Association Interest Settlement Rate is available to the Administrative
Agent, the applicable Eurodollar Base Rate for the relevant Interest Period
shall instead be the rate determined by the Administrative Agent to be the rate
at which the Administrative Agent offers to place deposits in U.S. dollars with
first class banks in the London interbank market at approximately 11:00 a.m.
(London time) two (2) Business Days prior to the first day of such
Interest Period, in the approximate amount of the Administrative Agent’s
relevant Eurodollar Loan and having a maturity equal to such Interest Period.

 

“Eurodollar
Loan” means a Loan which, except as otherwise provided in
Section 2.11, bears interest at the applicable Eurodollar Rate.

 

“Eurodollar
Rate” means, with respect to a Eurodollar Advance for the
relevant Interest Period, the sum of (a) the quotient of (i) the
Eurodollar Base Rate applicable to such Interest Period, divided by (ii) one
minus the Reserve Requirement (expressed
as a decimal) applicable to such Interest Period, plus (b) the Applicable
Margin for Eurodollar Advances.

 

10

 

“Excluded
Indebtedness” means Indebtedness of the Borrower or any of its
Subsidiaries having an outstanding principal amount not in excess of
$50,000,000 in the aggregate for all such Indebtedness.

 

“Excluded
Taxes” means, in the case of each Lender and the Administrative
Agent, taxes imposed on its overall net income, and franchise taxes imposed on
it, by (i) the jurisdiction under the laws of which such Lender or the
Administrative Agent is incorporated or organized or (ii) the jurisdiction
in which the Administrative Agent’s or such Lender’s principal executive office
or such Lender’s applicable Lending Installation is located.

 

“Exhibit”
refers to an exhibit to this Agreement, unless another document is specifically
referenced.

 

“Existing
Credit Agreement” means the $400,000,000 Three-Year Credit
Agreement dated as of December 4, 2009 among the Borrower, Citibank, N.A.,
as agent, and the lenders party thereto, as amended, restated, supplemented or
otherwise modified from time to time. 
References to any specific section of the Existing Credit Agreement
shall be deemed to refer to the corresponding provision in the Existing Credit
Agreement as modified, amended, renewed or refinanced from time to time.

 

“FATCA”
means Section 1471 through 1474 of the Code, as in effect on the date
hereof, and any applicable Treasury regulations or published administrative
guidance promulgated thereunder.

 

“Federal
Funds Effective Rate” means, for any day, an interest rate per
annum 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 for such day (or, if such day is not a
Business Day, for the immediately preceding Business Day) by the Federal Reserve
Bank of New York, or, if such rate is not so published for any day which is a
Business Day, the average of the quotations at approximately 10:00 a.m.
(New York time) on such day on such transactions received by the Administrative
Agent from three Federal funds brokers of recognized standing selected by the
Administrative Agent in its sole discretion.

 

“Fee
Letter” means the Fee Letter dated as of July 11, 2010 from
Credit Suisse AG, Credit Suisse Securities (USA) LLC and Morgan Stanley Senior
Funding, Inc. to the Borrower.

 

“Financial
Statements” is defined in Section 4.02(h).

 

“Fiscal
Quarter” means each of the four three-month accounting periods
comprising a Fiscal Year.

 

“Fiscal
Year” means the twelve-month accounting period ending December 31
of each year.

 

“Foreign
Corrupt Practices Act” is defined in Section 5.21.

 

11

 

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

 

“Funded
Target Attainment Percentage” has the meaning set forth in
Section 430(d)(2) of the Code or Section 303(d)(2) of
ERISA.

 

“Governmental
Authority” means any government (foreign or domestic) or any
state or other political subdivision thereof or any governmental body, agency,
authority, department or commission (including without limitation any taxing
authority or political subdivision) or any instrumentality or officer thereof
(including, without limitation, any court or tribunal and any board of
insurance, insurance department or insurance commissioner) exercising
executive, legislative, judicial, regulatory or administrative functions of or
pertaining to government and any corporation, partnership or other entity
directly or indirectly owned or controlled by or subject to the control of any
of the foregoing.

 

“Hazardous
Materials” is defined in Section 5.15.

 

“Hedging
Agreement” means any interest rate protection agreement, foreign
currency exchange agreement, commodity price protection agreement or other
interest or currency exchange rate or commodity price hedging arrangement and
all other similar agreements or arrangements designed to alter the risks of any
Person arising from fluctuations in interest rates, currency values or
commodity prices.

 

“Immaterial
Subsidiaries” means one or more Subsidiaries of the Borrower,
the Consolidated total assets, Consolidated revenues and Consolidated net
operating income of which, in the aggregate, do not exceed three percent (3%)
of the Consolidated total assets, Consolidated revenues and Consolidated net
operating income, respectively, of the Borrower and its Subsidiaries, in each
case determined as of the end, or for, as the case may be, the period of four
Fiscal Quarters most recently ended for which financial statements have been or
are required to have been delivered pursuant to Section 6.01(a) or
Section 6.01(b).

 

“Indebtedness”
of a Person means, without duplication, (a) such Person’s obligations for
borrowed money, (b) obligations of such Person representing the deferred
purchase price of Property or services (other than accounts payable arising in
the ordinary course of such Person’s business payable on terms customary in the
trade), (c) such Person’s obligations created or arising under any
conditional sale or other title retention agreement with respect to property
acquired by such Person (even though the rights and remedies of the seller or
lender under such agreement in the event of default are limited to repossession
or sale of such property), (d) such Person’s obligations which are
evidenced by bonds, notes, debentures, acceptances, or similar instruments, (e) Capitalized
Lease Obligations of such Person, (f) Contingent Obligations of such
Person, (g) obligations, contingent or otherwise, for which such Person is
obligated pursuant to or in respect of Letters of Credit or bankers’
acceptances, (h) such Person’s obligations under Hedging Agreements to the
extent required to be reflected on a balance sheet of such Person, (i) repurchase
obligations or liabilities of such Person with respect to accounts or notes
receivable

 

12

 

sold by such Person, and
(j) all Indebtedness and other obligations referred to in clauses (a) through
(i) above secured by (or for which the holder of such Indebtedness or
other obligations has an existing right, contingent or otherwise, to be secured
by) any Lien on property (including, without limitation, accounts and contract
rights) owned by such Person or payable out of the proceeds or production from
property of such Person, even though such Person has not assumed or become
liable for the payment of such Indebtedness or other obligations.

 

“Information”
is defined in Section 9.11.

 

“Interest
Period” means, with respect to a Eurodollar Advance, a period of
one, two, three or six months commencing on a Business Day selected by the
Borrower pursuant to this Agreement.  An
Interest Period of one, two, three or six months shall end on (but exclude) the
day which corresponds numerically to such date one, two, three or six months
thereafter; provided, however,
that if there is no such numerically corresponding day in such next, second,
third or sixth succeeding month, such Interest Period shall end on the last
Business Day of such next, second, third or sixth succeeding month.  If an Interest Period would otherwise end on
a day which is not a Business Day, such Interest Period shall end on the next
succeeding Business Day; provided, however, that if said next succeeding Business Day falls in
a new calendar month, such Interest Period shall end on the immediately
preceding Business Day.

 

“Knowledge”
means the actual knowledge of any fact, circumstance or condition of those
officers of the Borrower, Merger Sub and Merger LLC set forth in Section 9.03
of the Parent Disclosure Letter (as defined in the Merger Agreement).

 

“Law” means any Federal, state, local,
foreign, international or multinational treaty, constitution, statute or other
law, ordinance, rule or regulation.

 

“Lender
Appointment Period” is defined in Section 10.06.

 

“Lenders”
means the lending institutions listed on the signature pages of this
Agreement and their respective successors and assigns.

 

“Lending
Installation” means, with respect to a Lender or the
Administrative Agent, the office or branch of such Lender or the Administrative
Agent listed on the signature pages hereof, on a Schedule or otherwise
selected by such Lender or the Administrative Agent pursuant to Section 2.17.

 

“Letter
of Credit” of a Person means a letter of credit or similar
instrument which is issued upon the application of such Person or upon which
such Person is an account party or for which such Person is in any way liable.

 

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

 

13

 

without limitation, the
interest of a vendor or lessor under any conditional sale, Capitalized Lease or
other title retention agreement).

 

“Loan”
means, with respect to a Lender, such Lender’s loan made pursuant to Article 2
(or any conversion or continuation thereof).

 

“Loan
Documents” means this Agreement and any Notes issued pursuant to
Section 2.13 and the other documents and agreements contemplated hereby
and executed by the Borrower in favor of the Administrative Agent or any
Lender.

 

“Margin
Stock” has the meaning assigned to that term under
Regulation U.

 

“Material
Adverse Change” means a Borrower Material Adverse Change or a
Company Material Adverse Change.

 

“Material
Adverse Effect” means a material adverse effect on (a) the
business, Property, condition (financial or otherwise), performance, results of
operations, or prospects of the Borrower and its Subsidiaries taken as a whole,
(b) the ability of the Borrower to perform its obligations under the Loan
Documents, or (c) the validity or enforceability of any of the Loan
Documents or the rights or remedies of the Administrative Agent or the Lenders
thereunder.

 

“Maturity
Date” means the date that is three years from the Closing Date
(or, if such day is not a Business Day, the next preceding Business Day).

 

“Measurement
Period” means, at any date of determination, the most recently
completed four consecutive Fiscal Quarters of the Borrower ending on or prior
to such date.

 

“Merger”
means the merger of Merger Sub with and into the Company pursuant to the Merger
Agreement.

 

“Merger
Agreement” means the Agreement and Plan of Merger dated July 11,
2010 among the Borrower, Merger LLC, Merger Sub and the Company.

 

“Merger
Cash Consideration” means an aggregate amount of approximately
$2,450,000,000 in cash to be paid to the equity holders of the Company pursuant
to the Merger Agreement.

 

“Merger
Consideration” means the Merger Cash Consideration and the
Merger Equity Consideration.

 

“Merger
Equity Consideration” means the shares of common stock of the
Borrower to be delivered to the equity holders of the Company pursuant to the
Merger Agreement.

 

“Merger
LLC” means Alps Merger LLC, a Delaware limited liability company
and a wholly owned subsidiary of the Borrower.

 

14

 

“Merger
Sub” means Alps Merger Corp., a Delaware corporation and a
wholly owned subsidiary of the Borrower.

 

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

 

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

 

“Non-U.S.
Lender” is defined in Section 3.05(d).

 

“Note”
is defined in Section 2.13.

 

“Notice”
is defined in Section 13.01.

 

“Obligations”
means all unpaid principal of and accrued and unpaid interest on the Loans, all
accrued and unpaid fees and all expenses, reimbursements, indemnities and other
obligations of the Borrower to the Lenders or to any Lender, the Administrative
Agent or any indemnified party arising under the Loan Documents.

 

“Other
Taxes” is defined in Section 3.05(b).

 

“Outstanding
Credit Exposure” means, as to any Lender at any time, the
aggregate principal amount of its Loans outstanding at such time.

 

“Participants”
is defined in Section 12.02.

 

“Payment
Date” means the last Business Day of each March, June, September and
December.

 

“PBGC”
means the Pension Benefit Guaranty Corporation, or any successor thereto.

 

“Permitted
Assignee” means each Person identified in writing by the
Borrower to the Arrangers on the date of execution of the Commitment Letter.

 

“Person”
means any natural person, corporation, firm, joint venture, partnership,
association, enterprise, limited liability company, trust or other entity or organization,
or any government or political subdivision or any agency, department or
instrumentality thereof.

 

“Plan”
means an “employee pension benefit plan,” as defined in Section 3(2) of
ERISA, which is covered by Title IV of ERISA or subject to the minimum funding
standards under Section 412 of the Code, as to which the Borrower or any
member of the Controlled Group may have any liability.

 

“Platform”
is defined in Section 13.01.

 

“Pricing
Schedule” means the Schedule attached hereto identified as such.

 

15

 

“Prime
Rate” means mean the rate of interest per annum announced from
time to time by Credit Suisse AG (or any successor to Credit Suisse AG in its
capacity as Administrative Agent) as its prime commercial lending rate in
effect at its principal office in New York City.  The Prime Rate is a reference rate and does
not necessarily represent the lowest or best rate actually charged to any
customer.

 

“Pro
Forma Financials” is defined in Section 4.02(i).

 

“Property”
of a Person means any and all property, whether real, personal, tangible,
intangible, or mixed, of such Person, or other assets owned, leased or operated
by such Person.

 

“pro
rata” means, when used with respect to a Lender, and any
described aggregate or total amount, an amount equal to such Lender’s pro rata
share or portion based on its percentage of the Aggregate Commitment or if the
Aggregate Commitment has been terminated, its percentage of the Aggregate
Outstanding Credit Exposure.

 

“Purchasers”
is defined in Section 12.03.

 

“Regulation
D” means Regulation D of the Board of Governors of the Federal
Reserve System as from time to time in effect and any successor thereto or
other regulation or official interpretation of said Board of Governors relating
to reserve requirements applicable to depositary institutions.

 

“Regulation
U” means Regulation U of the Board of Governors of the Federal
Reserve System as from time to time in effect and any successor or other
regulation or official interpretation of said Board of Governors relating to
the extension of credit by banks and certain other Persons for the purpose of
purchasing or carrying margin stocks applicable to member banks of the Federal
Reserve System and certain other Persons.

 

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

 

“Release”
is defined in the Comprehensive Environmental Response, Compensation and
Liability Act, as amended, 42 U.S.C. 39601 et seq.  “Released”
shall have a corresponding meaning.

 

“Repayment
Date” is defined in Section 2.02.

 

“Reportable
Event” means a reportable event as defined in Section 4043
of ERISA and the regulations issued under such section, with respect to a Plan,
excluding, however, such events as to which the PBGC has by regulation waived
the requirement of Section 4043(a) of ERISA that it be notified
within thirty (30) days of the occurrence of such event; provided,
that a failure to meet the minimum funding standard of Section 412 or 430
of the Code or Section 302 of

 

16

 

ERISA shall be a Reportable
Event regardless of the issuance of any such waiver of the notice requirement
in accordance with either Section 4043(a) of ERISA or Section 412(c) of
the Code.

 

“Required
Lenders” means Lenders in the aggregate having more than 50% of
the Aggregate Commitment or, if the Aggregate Commitment has been terminated,
Lenders in the aggregate holding more than 50% of the Aggregate Outstanding
Credit Exposure; provided that if any Lender shall
be a Defaulting Lender at such time, there shall be excluded from the
determination of Required Lenders at such time (a) the unused Commitment
of such Defaulting Lender at such time and (b) Outstanding Credit Exposure
of such Lender at such time.

 

“Reserve
Requirement” means, with respect to an Interest Period, the
maximum aggregate reserve requirement (including all basic, supplemental,
marginal and other reserves) which is imposed under Regulation D on
Eurocurrency liabilities.

 

“Risk-Based
Capital Guidelines” is defined in Section 3.02.

 

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

 

“Schedule”
refers to a specific schedule to this Agreement, unless another document is
specifically referenced.

 

“Senior Notes” means the up to
$1,500,000,000 in aggregate principal amount of senior unsecured notes of the
Borrower issued in a public offering or in a Rule 144A or other private
placement.

 

“Section”
means a numbered section of this Agreement, unless another document is
specifically referenced.

 

“Single
Employer Plan” means a Plan other than a Multiemployer Plan.

 

“Solvent”
and “Solvency” mean, with respect to the
Borrower and its Subsidiaries, on a consolidated basis, on any date of
determination, that on such date (a) the Fair Value (as defined below) of
the property of the Borrower and its Subsidiaries, on a consolidated basis, is
greater than the total amount of liabilities, including contingent liabilities,
of the Borrower and its Subsidiaries, on a consolidated basis, (b) the
Present Fair Salable Value (as defined below) of the assets of the Borrower and
its Subsidiaries, on a consolidated basis, is not less than the amount that
will be required to pay the probable liability of the Borrower and its
Subsidiaries on their debts as they become absolute and matured, (c) the
Borrower and its Subsidiaries do not intend to, and do not believe that they
will, incur debts or liabilities beyond their ability to pay such debts and
liabilities as they mature, (d) the Borrower and its Subsidiaries are not
engaged in business or a transaction, and are not about to engage in business
or a transaction, for which the Borrower’s and its Subsidiaries’ property, on a
consolidated basis, would constitute unreasonably small capital after giving
due consideration to the prevailing practice in the industry in which the
Borrower and its Subsidiaries and the Company and its Subsidiaries are

 

17

 

engaged in on the date
hereof, and (e) the Borrower and its Subsidiaries, on a consolidated
basis, are able to pay their debts and liabilities, contingent obligations and
other commitments as they mature in the ordinary course of business.  The amount of contingent liabilities at any
time shall be computed as the amount that, in the light of all the facts and
circumstances existing at such time, represents the amount that can reasonably
be expected to become an actual or matured liability.  For the purpose hereof, “Fair
Value” means  the amount
at which the aggregate assets of the Borrower and its Subsidiaries would change
hands between a willing buyer and a willing seller within a commercially
reasonable period of time, each having reasonable knowledge of the relevant
facts, neither being under any compulsion to act, with equity to both.  “Present Fair Salable Value”
means the amount that may be realized if the aggregate assets of the Borrower
and its Subsidiaries are sold with reasonable promptness in an arm’s length
transaction under present conditions for the sale of assets of comparable
business enterprises.

 

“Subsequent
Merger” the merger of the surviving corporation in the Merger
with and into Merger LLC, with Merger LLC surviving as a Wholly Owned
Subsidiary of Borrower.

 

“Subsidiary”
of a Person means (a) any corporation more than 50% of the outstanding
securities having ordinary voting power of which shall at the time be owned or
controlled, directly or indirectly, by such Person or by one or more of its
Subsidiaries or by such Person and one or more of its Subsidiaries, or (b) any
partnership, association, joint venture, limited liability company or similar
business organization more than 50% of the ownership interests having ordinary
voting power of which shall at the time be so owned or controlled.  Unless otherwise expressly provided, all
references herein to a “Subsidiary”
shall mean a Subsidiary of the Borrower.

 

“Substantial
Portion” means, with respect to the Property of the Borrower and
its Subsidiaries, Property which (a) represents more than 10% of the
consolidated assets of the Borrower and its Subsidiaries, as would be shown in
the consolidated financial statements of the Borrower and its Subsidiaries as
at the end of the quarter next preceding the date on which such determination
is made, or (b) is responsible for more than 10% of the consolidated net
sales or of the consolidated net income of the Borrower and its Subsidiaries
for the 12-month period ending as of the end of the quarter next preceding the
date of determination.

 

“Syndication
Agent” means Morgan Stanley Senior Funding, Inc. and its
successors, in its capacity as “Syndication Agent”.

 

“Taxes”
means any and all present or future taxes, duties, levies, imposts, deductions,
charges or withholdings, and any and all liabilities with respect to the
foregoing, but excluding Excluded Taxes and Other Taxes.

 

“Termination
Event” means, with respect to any Plan which is subject to Title
IV of ERISA, (a) a Reportable Event, (b) the withdrawal of the
Borrower or any other member of the Controlled Group from such Plan during a
plan year in which the Borrower or any other member of the Controlled Group was
a “substantial employer” as defined in Section 4001(a)(2) of ERISA or
was deemed such under Section 4068(f) of ERISA, the conditions for
imposition of a lien

 

18

 

under Section 303(d) of
ERISA shall have been met, (d) a determination that any Plan is in “at
risk” status (within the meaning of Section 303 of ERISA), (e) the
termination of such Plan, the filing of a notice of intent to terminate such
Plan or the treatment of an amendment of such Plan as a termination under
Section 4041 of ERISA, (f) the institution by the PBGC of proceedings
to terminate such Plan or (g) any event or condition which might
constitute grounds under Section 4042 of ERISA for the termination of, or
appointment of a trustee to administer, such Plan.

 

“Transactions”
means (i) the Merger and the Subsequent Merger, including the payment of
the Merger Consideration, (ii) the execution, delivery and performance of
this Agreement, including the funding of the Loans hereunder and the
application of the proceeds thereof, (iii) the execution, delivery and
performance of the Bridge Credit Agreement, (iv) the issuance of the
Senior Notes, and, to the extent the Borrower is unable to issue the Senior
Notes on or prior to the date the Merger is consummated, the funding of the
Bridge Loans and the application of the proceeds thereof and (v) payment
of the Transaction Costs.

 

“Transactions
Costs” means fees and expenses in an aggregate amount not to
exceed $50,000,000 in connection with the Transactions.

 

“Transferee”
is defined in Section 12.04.

 

“Type”
means, with respect to any Advance, its nature as an Alternate Base Rate
Advance or a Eurodollar Advance.

 

“Unmatured
Default” means an event which but for the lapse of time or the
giving of notice, or both, would constitute a Default.

 

“USA
PATRIOT Act” shall mean The Uniting and Strengthening America by
Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of
2001 (Title III of Pub.  L.  No.  107-56 (signed into law October 26,
2001)).

 

“Wholly
Owned Subsidiary” of a Person means (a) any Subsidiary all
of the outstanding voting securities of which shall at the time be owned or
controlled, directly or indirectly, by such Person or one or more Wholly Owned
Subsidiaries of such Person, or by such Person and one or more Wholly Owned
Subsidiaries of such Person, or (b) any partnership, association, joint
venture, limited liability company or similar business organization 100% of the
ownership interests having ordinary voting power of which shall at the time be
so owned or controlled.  Unless otherwise
provided, all references herein to a “Wholly Owned Subsidiary”
shall mean a Wholly Owned Subsidiary of the Borrower.

 

The foregoing definitions
shall be equally applicable to both the singular and plural forms of the
defined terms.  In computations of
periods of time from a specified date to a later specified date, the word “from” means “from
and including” and the words “to”
and “until” each mean “to but excluding”.

 

19

 

ARTICLE 2

THE CREDITS

 

Section 2.01.  Commitment.  Each Lender severally agrees, on
the terms and conditions set forth in this Agreement, to make Loans to the
Borrower on the Closing Date in a principal amount not to exceed the amount of
its Commitment.  Amounts borrowed under
this Section 2.01 and repaid or prepaid may not be reborrowed.

 

Section 2.02.  Required Payments.

 

(a)        The
Borrower shall pay to the Administrative Agent, for the account of the Lenders,
on the last Business Day of each March, June, September and December occurring
after the Closing Date and prior to the Maturity Date (each such date being
called a “Repayment Date”), a principal
amount of the Loans (as adjusted from time to time pursuant to Section 2.07)
equal to 2.50% of the original principal amount of the Loans, together in each
case with accrued and unpaid interest on the principal amount to be paid to but
excluding the date of such payment.

 

(b)        All
unpaid Obligations shall be paid in full by the Borrower on the Maturity Date.

 

Section 2.03.  Ratable Loans.  Each Advance hereunder shall consist of Loans
made from the several Lenders ratably in proportion to the ratio that their
respective Commitments bear to the Aggregate Commitment.

 

Section 2.04.  Types of Advances.  The Advances may be Alternate Base
Rate Advances or Eurodollar Advances, or a combination thereof, selected by the
Borrower in accordance with Section 2.08 and Section 2.09.

 

Section 2.05.  Undrawn Commitment Fee / Termination
or Reductions of Commitments. 
(a) The Borrower agrees to pay to the Administrative Agent for the
account of each Lender a commitment fee (the “Commitment
Fee”), which shall accrue at 0.375% per annum on the daily
amount of the unused Commitment of such Lender during the period from and
including August 25, 2010 to but excluding the earlier to occur of (i) the
termination of the Commitments hereunder and (ii) the Closing Date and
shall be payable on such earlier date.

 

(b)        All
unused Commitments after giving effect to the Advances on the Closing Date
shall automatically terminate.  In
addition, the Commitments shall automatically terminate in the event that the
Closing Date does not occur on or before the earlier of (i) 5:00 p.m.,
New York City time, on March 31, 2011 or (ii) the date on which the
Merger Agreement terminates or either party thereto publicly announces its
intention not to proceed with the Acquisition.

 

(c)        At any
time prior to the Closing Date, the Borrower may permanently reduce the
Aggregate Commitment in whole, or in part ratably among the Lenders in a
minimum aggregate amount of $10,000,000 or any integral multiple of $1,000,000
in excess thereof, upon at least three (3) Business Days’ written notice
to the Administrative Agent, which notice shall specify the amount of any such
reduction.

 

20

 

(d)        The
Borrower agrees to pay to the Administrative Agent and the other parties
thereto the fees payable in the amounts and at the times set forth in the Fee
Letter, the Commitment Letter and the Co-Arranger Commitment Letter, except
that any “ticking fee” payable pursuant to the Fee Letter or the Co-Arranger
Commitment Letter with respect to the Commitments shall, from the Effective
Date, be replaced with the Commitment Fee.

 

Section 2.06.  Minimum Amount of Each
Advance.  Each Eurodollar
Advance shall be in the minimum amount of $10,000,000 (and in multiples of
$1,000,000 if in excess thereof), provided, however,
that in no event shall more than six (6) Eurodollar Advances be permitted
to be outstanding at any time.

 

Section 2.07.  Optional Principal
Payments.  The Borrower may
from time to time pay, without penalty or premium, all outstanding Alternate
Base Rate Advances, or, in a minimum aggregate amount of $10,000,000 or any
integral multiple of $1,000,000 in excess thereof, any portion of the
outstanding Alternate Base Rate Advances upon notice to the Administrative
Agent by 11:00 a.m. (New York time) on the Business Day of the proposed
prepayment.  The Borrower may from time
to time pay, subject to the payment of any funding indemnification amounts
required by Section 3.04 but without penalty or premium, all outstanding
Eurodollar Advances, or, in a minimum aggregate amount of $10,000,000 or any
integral multiple of $1,000,000 in excess thereof, any portion of an
outstanding Eurodollar Advance, upon three (3) Business Days’ prior notice
to the Administrative Agent.  Prepayments
shall be applied to scheduled amortization of the Loans as directed by the
Borrower.

 

Section 2.08.  Method of Selecting Types and
Interest Periods for New Advances.  The
Borrower shall select the Type of Advance and, in the case of each Eurodollar
Advance, the Interest Period applicable thereto from time to time.  The Borrower shall give the Administrative
Agent irrevocable notice (a “Borrowing Notice”)
not later than 11:00 a.m. (New York time) on the Business Day prior to the
Closing Date of each Alternate Base Rate Advance and at least three (3) Business
Days before the Closing Date for each Eurodollar Advance, specifying:

 

(a)                    the Borrowing Date of such Advance, which shall
be the Closing Date and a Business Day;

 

(b)                   the aggregate amount of such Advance;

 

(c)                    the Type of Advance selected; and

 

(d)                   in the case of each Eurodollar Advance, the
Interest Period applicable thereto.

 

Not later than 11:00 a.m.
(New York time) on the Closing Date, each Lender shall make available its Loan
or Loans, in funds immediately available in New York, to the Administrative
Agent at its address specified pursuant to Article 13.  The Administrative Agent will make the funds
so received from the Lenders available to the Borrower at the Administrative
Agent’s aforesaid address.

 

21

 

Section 2.09.   Conversion and Continuation
of Outstanding Advances.  Each
Alternate Base Rate Advance shall continue as an Alternate Base Rate Advance
unless and until such Alternate Base Rate Advance is converted into a
Eurodollar Advance pursuant to this Section 2.09 or is repaid in
accordance with Section 2.07.  Each
Eurodollar Advance shall continue as a Eurodollar Advance until the end of the
then applicable Interest Period therefor, at which time such Eurodollar Advance
shall be automatically converted into an Alternate Base Rate Advance unless (a) such
Eurodollar Advance is or was repaid in accordance with Section 2.07 or (b) the
Borrower shall have given the Administrative Agent a Conversion/Continuation
Notice (as defined below) requesting that, at the end of such Interest Period,
such Eurodollar Advance continue as a Eurodollar Advance for the same or
another Interest Period (or, if no Interest Period is specified in such
Conversion/Continuation Notice, continuation shall be for a one (1) month
Interest Period).  Subject to the terms
of Section 2.06, the Borrower may elect from time to time to convert all
or any part of an Alternate Base Rate Advance into a Eurodollar Advance.  Subject to the payment of any funding
indemnification amounts required by Section 3.04, the Borrower may elect
from time to time to convert all or any part of a Eurodollar Advance into an
Alternate Base Rate Advance.  The
Borrower shall give the Administrative Agent irrevocable notice (a “Conversion/Continuation Notice”) of
each (x) conversion of an Alternate Base Rate Advance into a Eurodollar
Advance or the continuation of a Eurodollar Advance as a new Eurodollar Advance
not later than 11:00 a.m. (New York time) at least three (3) Business
Days prior to the date of the requested conversion or continuation and (y) conversion
of a Eurodollar Advance into an Alternate Base Rate Advance, not later than
11:00 a.m. (New York time) on the date of the requested conversion, in
each case specifying:

 

(a)       the
requested date of such conversion or continuation, which shall be a Business
Day;

 

(b)      the
aggregate amount and Type of the Advance which is to be converted or continued;
and

 

(c)       the
amount and Type(s) of Advance(s) into which such Advance is to be
converted or continued and, in the case of a conversion into or continuation of
a Eurodollar Advance, the duration of the Interest Period applicable thereto,
which shall end on or prior to the Maturity Date.

 

Section 2.10.  Interest Rate, Etc.  Each Alternate Base Rate Advance
shall bear interest on the outstanding principal amount thereof, for each day
from and including the date such Advance is made or is converted from a
Eurodollar Advance into an Alternate Base Rate Advance pursuant to Section 2.09,
to but excluding the date it is paid or is converted into a Eurodollar Advance
pursuant to Section 2.09 hereof, at a rate per annum equal to the
Alternate Base Rate plus the
Applicable Margin with respect to Alternate Base Rate Advances, in each case
for such day.  Changes in the rate of
interest on that portion of any Advance maintained as an Alternate Base Rate
Advance will take effect simultaneously with each change in the Alternate Base
Rate.  Each Eurodollar Advance shall bear
interest on the outstanding principal amount thereof from and including the
first day of the Interest Period applicable thereto to (but

 

22

 

not including) the last day
of such Interest Period at the Eurodollar Rate determined by the Administrative
Agent as applicable to such Eurodollar Advance based upon the Borrower’s
selections under Section 2.08 and Section 2.09 and otherwise in
accordance with the terms hereof.  No
Interest Period may end after the Maturity Date.

 

Section 2.11.  Rates Applicable After
Default.  Notwithstanding
anything to the contrary contained in Section 2.08 or Section 2.09,
no Advance may be made as, converted into or continued as a Eurodollar Advance
(except with the consent of the Administrative Agent and the Required Lenders)
when any Default or Unmatured Default has occurred and is continuing.  During the continuance of a Default the
Required Lenders may, at their option, by notice to the Borrower (which notice
may be revoked at the option of the Required Lenders notwithstanding any
provision of Section 8.02 requiring unanimous consent of the Lenders to
changes in interest rates), declare that (a) each Eurodollar Advance shall
bear interest for the remainder of the applicable Interest Period at the
Eurodollar Rate otherwise applicable to such Interest Period plus 2% per annum
and (b) each Alternate Base Rate Advance shall bear interest at a rate per
annum equal to the Alternate Base Rate in effect from time to time plus the
Applicable Margin for Alternate Base Rate Advances plus 2%
per annum provided that, during the continuance of
a Default under Section 7.01(f) or Section 7.01(g), the interest
rates set forth in clauses (a) and (b) above shall be applicable to
all Advances without any election or action on the part of the Administrative
Agent or any Lender.

 

Section 2.12.  Method of Payment.  All payments of the Obligations
hereunder shall be made, without setoff, deduction or counterclaim, in
immediately available funds to the Administrative Agent at the Administrative
Agent’s address specified pursuant to Article 13, or at any other Lending
Installation of the Administrative Agent specified in writing by the
Administrative Agent to the Borrower, by noon (New York time) on the date when
due and shall be applied ratably by the Administrative Agent among the Lenders
entitled to such payments.  Each payment
delivered to the Administrative Agent for the account of any Lender shall be
delivered promptly by the Administrative Agent to such Lender in the same type
of funds that the Administrative Agent received at its address specified
pursuant to Article 13 or at any Lending Installation specified in a
notice received by the Administrative Agent from such Lender.

 

Section 2.13.  Noteless Agreement; Evidence
of Indebtedness.  Each Lender
shall maintain in accordance with its usual practice an account or accounts
evidencing the indebtedness of the Borrower to such Lender resulting from each
Loan made by such Lender from time to time, including the amounts of principal
and interest payable and paid to such Lender from time to time hereunder.

 

(a)        The
Administrative Agent shall also maintain accounts in which it will record (i) the
amount of each Loan made hereunder, the Type thereof and the Interest Period
with respect thereto, (ii) the amount of any principal or interest due and
payable or to become due and payable from the Borrower to each Lender hereunder
and (iii) the amount of any sum received by the Administrative Agent
hereunder from the Borrower and each Lender’s share thereof.

 

23

 

(b)        The
entries maintained in the accounts maintained pursuant to paragraphs (a) and
(b) above shall be prima facie evidence of the existence and amounts of
the Obligations therein recorded; provided, however, that the failure of the Administrative Agent or any
Lender to maintain such accounts or any error therein shall not in any manner
affect the obligation of the Borrower to repay the Obligations in accordance
with their terms.

 

(c)        Any
Lender may request that its Loans be evidenced by a promissory note in
substantially the form of Exhibit A (including any amendment,
modification, renewal or replacement thereof, a “Note”).  In such event, the Borrower shall prepare,
execute and deliver to such Lender such Note payable to the order of such
Lender.  Thereafter, the Loans evidenced
by such Note and interest thereon shall at all times (including after any
assignment pursuant to Section 12.03) be represented by one or more Notes
payable to the order of the payee named therein or any assignee pursuant to
Section 12.03, except to the extent that any such Lender or assignee
subsequently returns any such Note for cancellation and requests that such
Loans once again be evidenced as described in paragraphs (a) and (b) above.  Upon receipt of an affidavit of an officer of
any Lender as to the loss, theft, destruction or mutilation of such Lender’s
Note, and, in the case of any such loss, theft, destruction or mutilation, upon
cancellation of such Note, the Borrower will issue, in lieu thereof, a replacement
Note in the same principal amount thereof and otherwise of like tenor.

 

Section 2.14.  Telephonic Notices.  The Borrower hereby authorizes the
Lenders and the Administrative Agent to extend, convert or continue Advances,
effect selections of Types of Advances and to transfer funds based on
telephonic notices made by any person or persons the Administrative Agent or
any Lender in good faith believes to be acting on behalf of the Borrower, it
being understood that the foregoing authorization is specifically intended to
allow Borrowing Notices and Conversion/Continuation Notices to be given
telephonically; provided that the Borrower
delivers promptly to the Administrative Agent a written confirmation of each
telephonic notice signed by an Authorized Officer.  If the written confirmation differs in any
material respect from the action taken by the Administrative Agent and the
Lenders, the records of the Administrative Agent and the Lenders shall govern
absent manifest error.

 

Section 2.15.  Interest Payment Dates;
Interest and Fee Basis.  Interest
accrued on each Alternate Base Rate Advance shall be payable on each Payment
Date, commencing with the first such date to occur after the date hereof, on
any date on which an Alternate Base Rate Advance is prepaid (with respect to
the principal so prepaid), whether due to acceleration or otherwise, and at
maturity.  Interest accrued on that
portion of the outstanding principal amount of any Alternate Base Rate Advance
converted into a Eurodollar Advance on a day other than a Payment Date shall be
payable on the date of conversion. 
Interest accrued on each Eurodollar Advance shall be payable on the last
day of its applicable Interest Period, on any date on which the Eurodollar Advance
is prepaid (with respect to the principal so prepaid), whether by acceleration
or otherwise, and at maturity.  Interest
accrued on each Eurodollar Advance having an Interest Period longer than three
(3) months shall also be payable on the last day of each three-month
interval during such Interest Period. 
Interest with respect to Eurodollar Loans, Commitment Fees and Alternate
Base Rate Loans for which interest is not determined by reference to the

 

24

 

Prime Rate shall be
calculated for actual days elapsed on the basis of a 360 day year.  Interest with respect to Alternate Base Rate
Loans for which interest is determined by reference to the Prime Rate shall be
calculated for the actual days elapsed on the basis of a 365 or 366 day year,
as applicable.  Interest shall be payable
for the day an Advance is made but not for the day of any payment.  If any payment of principal of or interest on
an Advance shall become due on a day which is not a Business Day, such payment
shall be made on the next succeeding Business Day and, in the case of a
principal payment, such extension of time shall be included in computing
interest in connection with such payment.

 

Section 2.16.  Notification of Advances, Interest
Rates, Prepayments and Commitment Reductions. 
Promptly after receipt thereof, the Administrative Agent will
notify each Lender of the contents of each Aggregate Commitment reduction
notice, Borrowing Notice, Conversion/Continuation Notice, and repayment notice
received by it hereunder.  The Administrative
Agent will notify each Lender of the Eurodollar Rate applicable to each
Eurodollar Advance promptly upon determination of such interest rate and will
give each Lender prompt notice of each change in the Alternate Base Rate.

 

Section 2.17.  Lending Installations.  Each Lender may book its Loans at any Lending
Installation selected by such Lender and may change its Lending Installation
from time to time.  All terms of this
Agreement shall apply to any such Lending Installation and the Loans and any Notes
issued hereunder shall be deemed held by each Lender for the benefit of any
such Lending Installation.  Each Lender
may, by written notice to the Administrative Agent and the Borrower in
accordance with Article 13, designate replacement or additional Lending
Installations through which Loans will be made by it will be issued by it and
for whose account Loan payments are to be made.

 

Section 2.18.  Non-Receipt of Funds by the
Administrative Agent.  Unless
the Borrower or a Lender, as the case may be, notifies the Administrative Agent
prior to the time at which it is scheduled to make payment to the
Administrative Agent of (a) in the case of a Lender, the proceeds of a
Loan, or (b) in the case of the Borrower, a payment of principal, interest
or fees to the Administrative Agent for the account of the Lenders, that it
does not intend to make such payment, the Administrative Agent may assume that
such payment has been made.  The
Administrative Agent may, but shall not be obligated to, make the amount of
such payment available to the intended recipient in reliance upon such
assumption.  If such Lender or the
Borrower, as the case may be, has not in fact made such payment to the
Administrative Agent, the recipient of such payment shall, on demand by the
Administrative Agent, repay to the Administrative Agent the amount so made
available together with interest thereon in respect of each day during the
period commencing on the date such amount was so made available by the
Administrative Agent until the date the Administrative Agent recovers such
amount at a rate per annum equal to (i) in the case of payment by a
Lender, the Federal Funds Effective Rate for such day for the first three (3) days
and, thereafter, the interest rate applicable to the relevant Loan or (ii) in
the case of payment by the Borrower, the interest rate applicable to the
relevant Loan.

 

25

 

Section 2.19.  Replacement of Lender.  If (a) the Borrower is
required pursuant to Section 3.01, 3.02 or 3.05 to make any additional
payment to any Lender, (b) any Lender’s obligation to make or continue, or
to convert Alternate Base Rate Advances into, Eurodollar Advances shall be
suspended pursuant to Section 3.03, or (c) any Lender is a Defaulting
Lender (any Lender so affected an “Affected Lender”),
the Borrower may elect, if such amounts continue to be charged or such
suspension is still effective or such Lender continues to be a Defaulting
Lender, to replace such Affected Lender as a Lender party to this Agreement,
provided that no Default or Unmatured Default shall have occurred and be
continuing at the time of such replacement, and provided
further that, concurrently with such
replacement, (i) another bank or other entity which is reasonably
satisfactory to the Borrower and the Administrative Agent shall agree, as of
such date, to purchase for cash the Advances at par and other Obligations due
to the Affected Lender pursuant to an assignment substantially in the form of
Exhibit C and to become a Lender for all purposes under this Agreement and
to assume all obligations of the Affected Lender to be terminated as of such
date and to comply with the requirements of Section 12.03 applicable to
assignments, and (ii) the Borrower and/or the assignee shall pay to such
Affected Lender in same day funds on the day of such replacement (A) all
interest, fees and other amounts then accrued but unpaid to such Affected
Lender by the Borrower hereunder to and including the date of termination,
including without limitation payments due to such Affected Lender under Section 3.01,
3.02 and 3.05, and (B) an amount, if any, equal to the payment which would
have been due to such Lender on the day of such replacement under Section 3.04
had the Loans of such Affected Lender been prepaid on such date rather than
sold to the replacement Lender.  For
purposes hereof, “Defaulting Lender” means a
Lender that has (i) defaulted in its obligation to fund any Loan within
one Business Day after the date required to be funded by it or (ii) has (or
whose parent company has) become the subject of a bankruptcy or insolvency
proceeding or has had a receiver or conservator appointed with respect to such
Lender (or such Lender’s parent company) at the direction or request of any
regulatory agency or authority (or similar regulatory action has been taken
with respect to such Lender or parent company of such Lender, provided that a
Lender shall not become a Defaulting Lender solely as a result of either (1) the
acquisition or maintenance of an ownership interest in such Lender or a Person
controlling such Lender by a Governmental Authority or an instrumentality
thereof or (2) the exercise of control over such Lender or Person
controlling such Lender by a Governmental Authority or an instrumentality
thereof incident to such ownership interest.

 

ARTICLE 3

YIELD PROTECTION; TAXES

 

Section 3.01.  Yield Protection.  If, on or after the date of this
Agreement, the adoption of any law or any governmental or quasi governmental
rule, regulation, policy, guideline or directive (whether or not having the
force of law), or any change in the interpretation or administration thereof by
any governmental or quasi-governmental authority, central bank or comparable
agency charged with the interpretation or administration thereof, or compliance
by any Lender or applicable Lending Installation with any request or directive
(whether or not having the force of law) of any such authority, central bank or
comparable agency

 

26

 

(a)        subjects
any Lender or any applicable Lending Installation to any Taxes or Other Taxes,
or changes the basis of taxation of payments (other than with respect to
Excluded Taxes) to any Lender in respect of its Eurodollar Loans, or

 

(b)        imposes
or increases or deems applicable any reserve, assessment, insurance charge,
special deposit or similar requirement against assets of, deposits with or for
the account of, or credit extended by, any Lender or any applicable Lending
Installation (other than reserves and assessments taken into account in
determining the interest rate applicable to Eurodollar Advances), or

 

(c)        imposes
any other condition the result of which is to increase the cost to any Lender
or any applicable Lending Installation of making, funding or maintaining its
Eurodollar Loans, or reduces any amount receivable by any Lender or any
applicable Lending Installation in connection with its Eurodollar Loans, or
requires any Lender or any applicable Lending Installation to make any payment
calculated by reference to the amount of Eurodollar Loans, held or interest
received by it, by an amount deemed material by such Lender, and the result of
any of the foregoing is to increase the cost to such Lender or applicable
Lending Installation of making or maintaining its Eurodollar Loans or
Commitment or to reduce the return received by such Lender or applicable
Lending Installation in connection with such Eurodollar Loans or Commitment,
then, within fifteen (15) days of demand by such Lender as provided in Section 3.06,
the Borrower shall pay such Lender such additional amount or amounts as will
compensate such Lender for such increased cost or reduction in amount received.

 

Section 3.02.  Changes in Capital Adequacy
Regulations.  If a Lender
determines the amount of capital required or expected to be maintained by such
Lender, any Lending Installation of such Lender or any corporation controlling
such Lender is increased as a result of a Change, then, within fifteen (15)
days of demand by such Lender as provided in Section 3.06, the Borrower
shall pay such Lender the amount necessary to compensate for any shortfall in
the rate of return on the portion of such increased capital which such Lender
determines is attributable to this Agreement, its Outstanding Credit Exposure
or its Commitment to make Loans hereunder (after taking into account such
Lender’s policies as to capital adequacy). 
“Change” means (a) any
change after the date of this Agreement in the Risk-Based Capital Guidelines or
(b) any adoption of or change in any other law, governmental or quasi
governmental rule, regulation, policy, guideline, interpretation, or directive
(whether or not having the force of law) after the date of this Agreement which
affects the amount of capital required or expected to be maintained by any
Lender or any Lending Installation or any Person controlling any Lender.  “Risk-Based Capital
Guidelines” means (a) the risk-based capital guidelines in
effect in the United States on the date of this Agreement, including transition
rules, and (b) the corresponding capital regulations promulgated by
regulatory authorities outside the United States implementing the July 1988
report of the Basel Committee on Banking Regulation and Supervisory Practices
entitled “International Convergence of Capital Measurements and Capital
Standards,” including transition rules, and any amendments to such regulations
adopted prior to the date of this Agreement.

 

27

 

Section 3.03.  Availability of Types of
Advances.  If any Lender
determines that maintenance of its Eurodollar Loans at a suitable Lending
Installation would violate any applicable law, rule, regulation, interpretation
or directive, whether or not having the force of law, or if the Required
Lenders determine that (a) deposits of a type and maturity appropriate to
match fund Eurodollar Advances are not available or (b) the interest rate
applicable to Eurodollar Advances does not accurately or fairly reflect the
cost of making or maintaining Eurodollar Advances, then the Administrative
Agent shall suspend the availability of Eurodollar Advances and require any
affected Eurodollar Advances to be repaid or converted to Alternate Base Rate
Advances, subject to the payment of any funding indemnification amounts
required by Section 3.04.

 

Section 3.04.  Funding Indemnification.  If any payment of a Eurodollar
Advance occurs on a date prior to the last day of the applicable Interest
Period, whether because of acceleration, prepayment or otherwise, or a
Eurodollar Advance is not made on the date specified by the Borrower for any
reason other than default by the Lenders, the Borrower will indemnify each
Lender for any loss or cost incurred by it resulting therefrom, including,
without limitation, any loss or cost in liquidating or employing deposits
acquired to fund or maintain such Eurodollar Advance.

 

Section 3.05.  Taxes.  (a)  Subject to applicable
law, all payments by the Borrower to or for the account of any Lender or the
Administrative Agent hereunder or under any Note shall be made free and clear
of and without deduction for any and all Taxes. 
Subject to subsection (c) below and Section 3.06, if the
Borrower shall be required by law to deduct any Taxes from or in respect of any
sum payable hereunder to any Lender or the Administrative Agent, (i) the
sum payable shall be increased as necessary so that after making all required
deductions (including deductions applicable to additional sums payable under
this Section 3.05) such Lender or the Administrative Agent (as the case
may be) receives an amount equal to the sum it would have received had no such
deductions been made, (ii) the Borrower shall make such deductions, (iii) the
Borrower shall pay the full amount deducted to the relevant authority in accordance
with applicable law and (iv) the Borrower shall furnish to the
Administrative Agent the original copy of a receipt evidencing payment thereof,
or other evidence reasonably acceptable to the Administrative Agent, within
thirty (30) days after such payment is made.

 

(b)        In
addition, the Borrower hereby agrees to pay any present or future stamp or
documentary taxes and any other excise or property taxes, charges or similar
levies which arise from any payment made hereunder or under any Note or from the
execution or delivery of, or otherwise with respect to, this Agreement or any
Note (“Other Taxes”).

 

(c)        The
Borrower hereby agrees to indemnify the Administrative Agent and each Lender
for the full amount of Taxes or Other Taxes (including, without limitation, any
Taxes or Other Taxes imposed on amounts payable under this Section 3.05)
paid by the Administrative Agent or such Lender and any liability (including
penalties, interest and expenses) arising therefrom or with respect
thereto.  Payments due under this
indemnification shall be made within

 

28

 

thirty
(30) days of the date the Administrative Agent or such Lender makes demand
therefor pursuant to Section 3.06.

 

(d)        Each
Lender that is not incorporated or otherwise organized under the laws of the
United States of America or a state thereof (each a “Non-U.S.
Lender”) agrees that it will, not more than ten (10) Business
Days after the date of this Agreement (or, in the case of a Lender who becomes
a party hereto after the date of this Agreement, the date it becomes a party
hereto), deliver to each of the Borrower and the Administrative Agent two duly
completed copies of United States Internal Revenue Service Form W-8BEN or
W-8ECI or W-8IMY (and any required attachments), certifying in either case that
such Lender is entitled to receive payments under this Agreement without
deduction or withholding of any United States federal income taxes.  Each Non-U.S. Lender further undertakes, to
the extent lawful at such time, to deliver to each of the Borrower and the
Administrative Agent (i) renewals or additional copies of such form (or
any successor form) on or before the date that such form expires or becomes
obsolete, and (ii) after the occurrence of any event requiring a change in
the most recent forms so delivered by it, such additional forms or amendments
thereto as may be required by applicable law or otherwise reasonably requested
by the Borrower or the Administrative Agent. 
In addition, each Non-US Lender shall deliver to the Administrative
Agent and the Borrower any documents as shall be prescribed by applicable law
or otherwise reasonably requested to demonstrate that payments to such Lender
under this Agreement and the other Loan Documents are exempt from any United
States federal withholding tax imposed pursuant to FATCA.  All forms or amendments described in the
preceding sentence shall certify that such Lender is entitled to receive
payments of interest under this Agreement 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 after the date
it became a Lender hereunder and prior to the date on which any such delivery
would otherwise be required which renders all such forms inapplicable or which
would prevent such Lender from duly completing and delivering any such form or
amendment with respect to it and such Lender advises the Borrower and the
Administrative Agent that it is not capable of receiving payments of interest
without any deduction or withholding of United States federal income tax.  For purposes of this Section 3.05(d),
each change of a Lender’s Lending Installation in accordance with Section 2.17
shall be treated as though such Lending Installation became a party hereto on
the date of such change of Lending Installation.

 

(e)        For
any period during which a Non-U.S. Lender has failed to provide the Borrower
with an appropriate form or other document pursuant to clause (d) above
(unless such failure is due to a change in treaty, law or regulation, or any
change in the interpretation or administration thereof by any Governmental
Authority, occurring subsequent to the date on which a form or other document
originally was required to be provided), such Non-U.S. Lender shall not be
entitled to indemnification under this Section 3.05 with respect to Taxes
imposed by the United States; provided that,
should a Non-U.S. Lender which is otherwise exempt from or subject to a reduced
rate of withholding tax become subject to Taxes because of its failure to
deliver a form or other document required under clause (d), above, the Borrower
shall take such steps as such Non-U.S. Lender shall reasonably request to
assist such Non-U.S. Lender to recover such Taxes.

 

29

 

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

 

(g)        Each
Lender that is not a Non-U.S. Lender shall deliver to the Borrower and the
Administrative Agent on or prior to the date on which such Lender becomes a
Lender under this Agreement (and from time to time thereafter upon the request
of the Borrower or the Administrative Agent), executed originals of Internal
Revenue Service Form W-9 or such other documentation or information
prescribed by applicable laws or reasonably requested by the Borrower or the
Administrative Agent as will enable the Borrower or the Administrative Agent,
as the case may be, to determine whether or not such Lender is subject to
backup withholding or information reporting requirements.

 

(h)        If the
U.S. Internal Revenue Service or any other Governmental Authority of the United
States or any other country or any political subdivision thereof asserts a
claim that the Administrative Agent did not properly withhold tax from amounts
paid to or for the account of any Lender (because the appropriate form was not
delivered or properly completed, because such Lender failed to notify the
Administrative Agent of a change in circumstances which rendered its exemption
from withholding ineffective, or for any other reason not caused by or constituting
gross negligence or willful misconduct of the Administrative Agent), such
Lender shall indemnify the Administrative Agent fully for all amounts paid,
directly or indirectly, by the Administrative Agent as tax, withholding
therefor, or otherwise, including penalties and interest, and including taxes
imposed by any jurisdiction on amounts payable to the Administrative Agent
under this subsection, together with all reasonable costs and expenses related
thereto (including reasonable attorneys’ fees and reasonable time charges of
attorneys for the Administrative Agent, which attorneys may be employees of the
Administrative Agent).  The obligations
of the Lenders under this Section 3.05(h) shall survive the payment
of the Obligations and termination of this Agreement.

 

Section 3.06.  Lender Statements; Survival of
Indemnity.  To the extent
reasonably possible, each Lender shall designate an alternate Lending
Installation with respect to its Eurodollar Loans to reduce any liability of
the Borrower to such Lender under Sections 3.01, 3.02 and 3.05 or to avoid the
unavailability of Eurodollar Advances under Section 3.03, so long as such
designation is not, in the judgment of such Lender, disadvantageous to such
Lender.  Each Lender shall deliver a
written statement of such Lender to the Borrower (with a copy to the
Administrative Agent) as to the amount due, if any, under Section 3.01,
3.02, 3.04 or 3.05.  Such written
statement shall set forth in reasonable detail the calculations upon which such
Lender determined such amount and shall be final, conclusive and binding on the
Borrower in the absence of manifest error. 
If any Lender fails to deliver such written statement within 180 days
after the date on which the Lender becomes aware of the event or occurrence giving
rise to such claim, the Borrower shall have no obligation to reimburse,
compensate or indemnify such Lender

 

30

 

with respect to any such
claim under this Article 3 for any period more than 180 days before the
date on which such statement is delivered. 
Determination of amounts payable under such Sections in connection with
a Eurodollar Loan shall be calculated as though each Lender funded its
Eurodollar Loan through the purchase of a deposit of the type and maturity
corresponding to the deposit used as a reference in determining the Eurodollar
Rate applicable to such Loan, whether in fact that is the case or not.  Unless otherwise provided herein, the amount
specified in the written statement of any Lender shall be payable on demand
after receipt by the Borrower of such written statement.  The obligations of the Borrower under Section 3.01,
3.02, 3.04 and 3.05 shall survive payment of the Obligations and termination of
this Agreement.

 

ARTICLE 4

CONDITIONS PRECEDENT

 

Section 4.01.  Effectiveness.  This Agreement shall not become
effective unless and until the Borrower has furnished the following to the
Administrative Agent with sufficient copies for the Lenders and the other
conditions set forth below have been satisfied:

 

(a)        Charter Documents; Good Standing Certificates.  Copies of the certificate of incorporation of
the Borrower, together with all amendments thereto, both certified by the
appropriate governmental officer in its jurisdiction of incorporation, together
with a good standing certificate issued by the Secretary of State of the
jurisdiction of its incorporation and such other jurisdictions as shall be
requested by the Administrative Agent.

 

(b)        By-Laws and Resolutions. 
Copies, certified by the Secretary or Assistant Secretary of the
Borrower, of its by-laws and of its Board of Directors’ resolutions authorizing
the execution, delivery and performance of the Loan Documents.

 

(c)        Secretary’s Certificate. 
An incumbency certificate, executed by the Secretary or Assistant
Secretary of the Borrower, which shall identify by name and title and bear the
signature of the officers of the Borrower authorized to sign the Loan Documents
and to make borrowings hereunder, upon which certificate the Administrative
Agent and the Lenders shall be entitled to rely until informed of any change in
writing by the Borrower.

 

(d)        Legal Opinions of Counsel to Borrower.  Written opinions of (i) internal counsel
to the Borrower and (ii) Sidley Austin LLP, special counsel to the
Borrower, addressed to the Administrative Agent and the Lenders in customary
form.

 

(e)        Notes.  Any Notes
requested by a Lender pursuant to Section 2.13 not less than two (2) Business
Days prior to the Effective Date payable to the order of each such requesting
Lender.

 

(f)         Loan Documents. 
Executed originals of this Agreement and each of the other Loan
Documents, which shall be in full force and effect, together with all
schedules, exhibits,

 

31

 

certificates,
instruments, opinions, documents and financial statements required to be
delivered pursuant hereto and thereto.

 

(g)        Payment of Fees.  The
Lenders and the Agents shall have received all fees and expenses required to be
paid on or prior to the Effective Date (including pursuant to the Commitment
Letter, the Co-Arranger Commitment Letter and the Fee Letter) and, with regard
to expenses, for which invoices have been presented to the Borrower not less
than one Business Day prior to the Effective Date.

 

(h)        USA PATRIOT Act.  The
Lenders shall have received, to the extent requested by the Lenders at least 5
Business Days prior to the Effective Date, all documentation and other
information required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and
regulations, including the USA PATRIOT Act; provided that
if any such request was received by the Borrower at least 10 Business Days
prior to the Effective Date, the Borrower shall have provided such documents
and other information at least 5 Business Days prior to the Effective Date.

 

Section 4.02.  Conditions Precedent to the
Advances on the Closing Date.  The
Lenders shall not be required to make any Credit Extension unless the Effective
Date shall have occurred and the following additional conditions precedent have
been satisfied prior to the termination of the Commitments pursuant to Section 2.05:

 

(a)        Payment of Fees.  The
Lenders and the Agents shall have received all fees and expenses required to be
paid on or prior to the Closing Date (including pursuant to the Commitment
Letter, the Co-Arranger Commitment Letter or the Fee Letter) and, with regard
to expenses, for which invoices have been presented to the Borrower not less
than one Business Day prior to the Closing Date.

 

(b)        Defaults.  There
exists no Default or Unmatured Default and none would result from such Credit
Extension other than a Default or Unmatured Default arising as a result of (i) any
breach of Section 7.01(a) as a result of representations and warranties
(other than the Closing Date Specified Representations) made or deemed made by
the Borrower hereunder or under any other Loan Document or (ii) any breach
of Section 7.01(e) as a result of representations and warranties made
or deemed made by the Borrower under the Bridge Credit Agreement or the Bridge
Loan Documents.

 

(c)        Representations and Warranties.  (i) The Closing Date Specified
Representations shall be true and correct in all material respects on the
Closing Date giving effect to the Transactions; provided
that to the extent any of the Closing Date Specified Representations are
qualified by reference to the absence of a “Material Adverse Effect,” such
representation shall, solely for the purpose of determining satisfaction of
this condition precedent, be deemed to be qualified by reference to the absence
of a Borrower Material Adverse Effect and the absence of a Company Material
Adverse Effect and (ii) such of the representations and warranties made by
or on behalf of the Company and its Subsidiaries in the Merger Agreement as are
material to the interests of the Lenders, but only to the extent that the
Borrower has the right to terminate its

 

32

 

obligations
under the Merger Agreement as a result of a breach of such representations in
the Merger Agreement, shall be true and correct in all material respects.

 

(d)        Borrowing Notice.  A
Borrowing Notice shall have been properly submitted.  Such Borrowing Notice shall constitute a
representation and warranty by the Borrower that the conditions contained in
this Section 4.02 have been satisfied.

 

(e)        Consummation of Merger. 
The Merger and the other Transactions shall be consummated
simultaneously (or substantially simultaneously or concurrently) (other than
the Subsequent Merger which shall be consummated immediately following the
Merger) with the funding of the Loans in accordance with applicable law and on
the terms described herein and in the Merger Agreement.  The Merger Agreement shall not have been
amended or modified, and no condition shall have been waived or consent
granted, in any respect that is materially adverse to the Arrangers, the
Lenders or the Borrower without the Arrangers’ prior written consent, it being
understood and agreed that any change to the transaction structure or the
Merger Consideration shall be deemed materially adverse to the Lenders.

 

(f)         Senior Notes / Bridge Loans. 
The Borrower shall have received (or shall substantially simultaneously
or concurrently with the funding of the Loans hereunder receive) not less than
the sum of (i) $1,500,000,000 from (a) the issuance of the Senior
Notes and (b) the borrowings under the Bridge Credit Agreement minus (ii) cash
on hand as of the Closing Date.

 

(g)        Repayment of Indebtedness. 
After giving effect to the Transactions and the other transactions
contemplated hereby, the Borrower and its Subsidiaries shall have outstanding
no Indebtedness of the type referred to in clause (a) or (d) of the
definition thereof, credit facilities or preferred stock other than (i) the
Loans and other extensions of credit under this Agreement, (ii) the Senior
Notes and/or the loans under the Bridge Credit Agreement, (iii) the
Indebtedness incurred or outstanding under the Continuing Debt Instruments in
the amounts specified in Schedule 4.02(g), (iv) any Excluded Indebtedness
and (v) other Indebtedness as approved in writing by the Required Lenders.

 

(h)        Financial Statements. 
The Borrower shall have furnished to the Administrative Agent the
unaudited financial statements of the Borrower and its Subsidiaries and the
Company and its Subsidiaries for each fiscal quarter ended during the period
commencing January 1, 2010 (in the case of the Borrower and its
Subsidiaries) or October 1, 2009 (in the case of the Company and its
Subsidiaries) and ending at least 40 days prior to the Closing Date (or, in the
case of any fiscal quarter that is the last quarter of a fiscal year, at least
60 days prior to the Closing Date) (collectively the “Financial
Statements”).

 

(i)         Pro Forma Balance Sheet. 
The Borrower shall have furnished to the Administrative Agent a pro
forma consolidated balance sheet and related pro forma consolidated statement
of income prepared in connection with the stockholder meetings for the
Transactions, and which pro forma financial statements shall meet the
requirements of Regulation S-X under the Securities Act of 1933, as amended,
and all other applicable accounting rules and regulations of the SEC
promulgated thereunder, in each case applicable to a registration statement
under the

 

33

 

Securities
Act of 1933 on Form S-4 (the “Pro Forma Financials”);
provided that in the event that Financial Statements of the Borrower and the
Company shall have been delivered pursuant to Section 4.02(h) above
after the date such Pro Forma Financials shall have been mailed to the
stockholders of Borrower and the Company, the Pro Forma Financials shall be
updated to reflect such newer Financial Statements on a basis consistent with
the preparation of the Pro Forma Financials.

 

(j)         Consolidated Leverage Ratio. 
The Arrangers shall be satisfied that, on the Closing Date and giving pro forma effect to the Transactions (as described in clause
(i) above), the Consolidated Leverage Ratio shall not exceed 3.0 to 1.0.

 

(k)        Solvency Certificate. 
The Arrangers shall have received a certificate from the chief financial
officer of the Borrower in form and substance reasonably satisfactory to the
Arrangers (or, at the Borrower’s option, a solvency opinion from an independent
investment bank or valuation firm of nationally recognized standing, such
opinion to be in form and substance reasonably satisfactory to the Arrangers)
certifying that the Borrower and its Subsidiaries, on a consolidated basis
immediately after giving effect to the Transactions and the other transactions
contemplated hereby to occur on the Closing Date (including without limitation,
the funding of the Loans hereunder on the Closing Date and the application of
the proceeds thereof), are Solvent.

 

(l)         Government Approvals. 
All requisite Governmental Authorities and third parties shall have
approved or consented to the execution, delivery and performance of this
Agreement and the Loan Documents to the extent required, all applicable appeal
periods shall have expired and there shall be no litigation, governmental,
administrative or judicial action, actual or threatened, that could reasonably
be expected to restrain, prevent or impose burdensome conditions on this
Agreement or the Loan Documents.

 

(m)       Ratings Condition.  As
of the Closing Date, the Borrower Debt Rating shall be BBB- (with no negative
outlook) or higher from S&P and Baa3 (with no negative outlook) or higher
from Moody’s.

 

(n)        Borrower Material Adverse Change.  Except (i) as disclosed in the Parent
SEC Documents (as defined in the Merger Agreement as in effect on July 11,
2010) filed with the Securities and Exchange Commission prior to July 11,
2010 (excluding any risk factor disclosures contained under the heading “Risk
Factors,” any disclosure of risk included in any “forward-looking statements”
disclaimer or any other statements that are similarly predictive or
forward-looking in nature) and (ii) as disclosed in Section 4.07(a) of
the Parent Disclosure Letter (as defined in the Merger Agreement as in effect
on July 11, 2010), since December 31, 2009, there shall not have
occurred any event, change, effect, development, state of facts, condition,
circumstance or occurrence that has had or would reasonably be expected to
have, individually or in the aggregate, a Borrower Material Adverse Effect (a “Borrower Material Adverse Change”).

 

34

 

(o)        Company Material Adverse Change. 
Except (i) as disclosed in the Company SEC Documents (as
defined in the Merger Agreement as in effect on July 11, 2010) filed with
the Securities and Exchange Commission prior to July 11, 2010 (excluding
any risk factor disclosures contained under the heading “Risk Factors,” any
disclosure of risk included in any “forward-looking statements” disclaimer or
any other statements that are similarly predictive or forward-looking in
nature) and (ii) as disclosed in Section 3.07(a) of the Company
Disclosure Letter (as defined in the Merger Agreement as in effect on July 11,
2010), since September 30, 2009, there shall not have occurred any event,
change, effect, development, state of facts, condition, circumstance or
occurrence that has had or would reasonably be expected to have, individually
or in the aggregate, a Company Material Adverse Effect (a “Company
Material Adverse Change”).

 

(p)        Officer’s Certificate. Receipt by each Arranger of a
certificate of an Authorized Officer of the Borrower certifying as to the
matters set forth in paragraphs (b), (c)(i), (e), (f), (g), (j), (l), (m) and
(n) above, and to the best knowledge of the Borrower, as to the matters
set forth in paragraphs (c)(ii) and (o) above.

 

ARTICLE 5

REPRESENTATIONS AND WARRANTIES

 

The Borrower represents and
warrants to the Lenders on the Effective Date (solely with respect to the
Effective Date Specified Representations) and on the Closing Date that:

 

Section 5.01.  Corporate Existence and
Standing.  Each of the
Borrower and its Subsidiaries (other than Immaterial Subsidiaries) (a) is
duly organized and validly existing under the laws of its jurisdiction of
organization and (b) is in good standing (to the extent the concept
applies to such entity) under the laws of its jurisdiction of organization and
is duly qualified and in good standing (to the extent the concept applies to
such entity) and is duly authorized to conduct its business in each
jurisdiction in which its business is conducted or proposed to be conducted
except where failure to be in such good standing or so qualified or authorized
could not reasonably be expected to have a Material Adverse Effect.

 

Section 5.02.  Authorization and
Validity.  The Borrower has
all requisite power and authority (corporate and otherwise) and legal right to
execute and deliver each of the Loan Documents to which it is a party and to
perform its obligations thereunder.  The
execution and delivery by the Borrower of the Loan Documents to which it is a
party and the performance of its obligations thereunder have been duly
authorized by proper corporate proceedings and such Loan Documents constitute
legal, valid and binding obligations of the Borrower enforceable against the
Borrower in accordance with their terms, except as enforceability may be
limited by bankruptcy, insolvency or similar laws affecting the enforcement of
creditors’ rights generally.

 

Section 5.03.  Compliance with Laws and
Contracts.  The Borrower and
its Subsidiaries have complied in all material respects with all applicable
statutes, rules, regulations, orders and

 

35

 

restrictions of any
domestic or foreign government, or any instrumentality or agency thereof,
having jurisdiction over the conduct of their respective businesses or the
ownership of their respective properties, except where the failure to so comply
could not reasonably be expected to have a Material Adverse Effect.  Neither (i)(A) the execution, delivery
and performance by the Borrower of the Loan Documents to which it is a party or
(B) the application of the proceeds of the Loans, nor (ii) compliance
with the provisions of the Loan Documents will, or at the relevant time did,
(a) violate any law, rule, regulation (including Regulation U), order,
writ, judgment, injunction, decree or award binding on the Borrower or any Subsidiary
or the Borrower’s or any Subsidiary’s charter, articles or certificate of
incorporation or by-laws, (b) violate the provisions of or require the
approval or consent of any party to any indenture, instrument or agreement to
which the Borrower or any Subsidiary is a party or is subject, or by which it,
or its property, is bound, or conflict with or constitute a default thereunder,
or result in the creation or imposition of any Lien (other than Liens permitted
by the Loan Documents) in, of or on the property of the Borrower or any
Subsidiary pursuant to the terms of any such indenture, instrument or
agreement, or (c) require any consent of the stockholders of any Person,
except for any violation of, or failure to obtain an approval or consent
required under, any such indenture, instrument or agreement that could not
reasonably be expected to have a Material Adverse Effect.

 

Section 5.04.  Governmental Consents.  No order, consent, approval,
qualification, license, authorization, or validation of, or filing, recording
or registration with, or exemption by, or other action in respect of, any
court, governmental or public body or authority, or any subdivision thereof,
any securities exchange or other Person is or at the relevant time was required
to authorize, or is or at the relevant time was required in connection with the
execution, delivery, consummation or performance of, or the legality, validity,
binding effect or enforceability of, any of the Loan Documents or the
application of the proceeds of the Loans. 
Neither the Borrower nor any Subsidiary is in default under or in
violation of any foreign, federal, state or local law, rule, regulation, order,
writ, judgment, injunction, decree or award binding upon or applicable to the
Borrower or such Subsidiary, in each case the consequence of which default or
violation could reasonably be expected to have a Material Adverse Effect.

 

Section 5.05.  Financial Statements.  Each of the Financial Statements
was prepared in accordance with generally accepted accounting principles and
fairly presents the consolidated financial condition and operations of the
Borrower and its Subsidiaries or, to the best of the Borrower’s knowledge, the
Company and its Subsidiaries, as applicable, at such dates and the consolidated
results of their operations for the respective periods then ended (except, in
the case of such unaudited statements, for normal year-end audit adjustments).

 

Section 5.06.  Material Adverse Change.  No Material Adverse Change has
occurred.

 

Section 5.07.  Taxes.  The Borrower and its Subsidiaries
have filed or caused to be filed on a timely basis and in correct form all
United States federal, state and other material tax returns which are required
to be filed and have paid all taxes due pursuant to said returns or pursuant to
any assessment received by the Borrower or any Subsidiary, except such taxes,
if any, as are being contested in good faith and as to which adequate reserves
have been provided in

 

36

 

accordance with generally
accepted accounting principles and as to which no Lien exists.  As of the date hereof, the United States
income tax returns of the Borrower on a consolidated basis have been audited by
the Internal Revenue Service through its Fiscal Year ending December 31,
2006.  No tax liens have been filed and
no claims are being asserted with respect to any such taxes which could
reasonably be expected to have a Material Adverse Effect.  The charges, accruals and reserves on the
books of the Borrower and its Subsidiaries in respect of any taxes or other
governmental charges are in accordance with generally accepted accounting
principles.

 

Section 5.08.  Litigation and Contingent
Obligations.  There is no
litigation, arbitration, proceeding, inquiry or governmental investigation
(including, without limitation, by the Federal Trade Commission) pending or, to
the knowledge of any of their officers, threatened against or affecting the
Borrower or any Subsidiary or any of their respective Properties that could
reasonably be expected to have a Material Adverse Effect or to prevent, enjoin
or unduly delay the making of any Credit Extensions under this Agreement,
except for Disclosed Claims.

 

Section 5.09.  ERISA.  Neither the Borrower nor any other
member of the Controlled Group maintains, or is obligated to contribute to, any
Multiemployer Plan or has incurred, or is reasonably expected to incur, any
withdrawal liability to any Multiemployer Plan. 
Each Plan complies in all material respects with its terms and with all
applicable requirements of law and regulations. 
Neither the Borrower nor any member of the Controlled Group has, with
respect to any Plan, failed to make any contribution or pay any amount required
under Section 412 of the Code or Section 302 of ERISA or the terms of
such Plan which could reasonably be expected to have a Material Adverse
Effect.  There are no pending or, to the
knowledge of the Borrower, threatened claims, actions, investigations or
lawsuits against any Plan, any fiduciary thereof, or the Borrower or any member
of the Controlled Group with respect to a Plan which could reasonably be
expected to have a Material Adverse Effect. 
Neither the Borrower nor any member of the Controlled Group has engaged
in any prohibited transaction (as defined in Section 4975 of the Code or
Section 406 of ERISA) in connection with any Plan which would subject such
Person to any material liability.  No
Termination Event has occurred or is reasonably expected to occur with respect
to any Plan which could reasonably be expected to have a Material Adverse
Effect.

 

Section 5.10.  Defaults.  No Default or Unmatured Default
has occurred and is continuing.

 

Section 5.11.  Regulation U.  Margin Stock constitutes less than
25% of those assets of the Borrower and its Subsidiaries which are subject to
any limitation on sale, pledge or other restriction hereunder.  Neither the Borrower nor any Subsidiary is
engaged, directly or indirectly, principally, or as one of its important
activities, in the business of extending, or arranging for the extension of,
credit for the purpose of purchasing or carrying Margin Stock.  No part of the proceeds of any Loan will be
used in a manner which would violate, or result in a violation of, Regulation
U.  Neither the making of any Advance
hereunder nor the use of the proceeds thereof will violate or be inconsistent
with the provisions of Regulation U.

 

37

 

Section 5.12.  Investment Company.  Neither the Borrower nor any
Subsidiary is, or after giving effect to any Advance will be, an “investment
company” or a company “controlled” by an “investment company” within the
meaning of the Investment Company Act of 1940, as amended.

 

Section 5.13.  Ownership of Properties.  As of the date of this Agreement,
the Borrower and its Subsidiaries have a subsisting leasehold interest in, or
good and marketable title, free of all Liens, other than those permitted by
Section 6.12 or by any of the other Loan Documents, to all of the
properties and assets reflected in the Financial Statements delivered on or
prior to the date hereof as being owned by it, except for assets sold,
transferred or otherwise disposed of in the ordinary course of business since
the date thereof.  The Borrower and its
Subsidiaries own or possess rights to use all licenses, patents, patent
applications, copyrights, service marks, trademarks and trade names necessary
to continue to conduct their business as currently conducted, and no such
license, patent or trademark has been declared invalid, been limited by order
of any court or by agreement or is the subject of any infringement,
interference or similar proceeding or challenge, except for proceedings and
challenges which could not reasonably be expected to have a Material Adverse Effect.

 

Section 5.14.  Material Agreements.  Neither the Borrower nor any
Subsidiary is a party to any agreement or instrument or subject to any charter
or other corporate restriction which could reasonably be expected to have a
Material Adverse Effect or which restricts or imposes conditions upon the
ability of any Subsidiary to (a) pay dividends or make other distributions
on its capital stock, (b) make loans or advances to the Borrower or (c) repay
loans or advances from the Borrower. 
Neither the Borrower nor any Subsidiary is in default in the
performance, observance or fulfillment of any of the obligations, covenants or
conditions contained in any agreement to which it is a party, which default
could reasonably be expected to have a Material Adverse Effect.

 

Section 5.15.  Environmental Laws.  There are no claims,
investigations, litigation, administrative proceedings, notices, requests for
information, whether pending or threatened, or judgments or orders asserting
violations of applicable federal, state and local environmental, health and
safety statutes, regulations, ordinances, codes, rules, orders, decrees,
directives and standards (“Environmental Laws”)
or relating to any toxic or hazardous waste, substance or chemical or any
pollutant, contaminant, chemical or other substance defined or regulated
pursuant to any Environmental Law, including, without limitation, asbestos,
petroleum, crude oil or any fraction thereof (“Hazardous
Materials”) asserted against the Borrower or any of its
Subsidiaries which, in any case, could reasonably be expected to have a
Material Adverse Effect.  Neither the
Borrower nor any Subsidiary has caused or permitted any Hazardous Materials to
be Released, either on or under real property, currently or formerly, legally
or beneficially owned or operated by the Borrower or any Subsidiary or on or
under real property to which the Borrower or any of its Subsidiaries
transported, arranged for the transport or disposal of, or disposed of
Hazardous Materials, which Release could reasonably be expected to have a
Material Adverse Effect.

 

38

 

Section 5.16.  Insurance.  The Borrower and its Subsidiaries
maintain, with financially sound and reputable insurance companies, insurance
on their Property in such amounts and covering such risks as is consistent with
sound business practice.

 

Section 5.17.  Insurance Licenses.  No material license, permit or
authorization of the Borrower or any Subsidiary to engage in the business of
insurance or insurance-related activities is the subject of a proceeding for
suspension or revocation, except where such suspension or revocation would not
individually or in the aggregate have a Material Adverse Effect.

 

Section 5.18.  Disclosure.  None of the (a) information,
exhibits or reports furnished or to be furnished by the Borrower or any
Subsidiary to the Administrative Agent or to any Lender in connection with the
negotiation of the Loan Documents (including for the avoidance of doubt the
Confidential Information Memorandum but excluding any projections) or (b) representations
or warranties of the Borrower or any Subsidiary contained in this Agreement,
the other Loan Documents, or any other document, certificate or written
statement furnished to the Administrative Agent or the Lenders by or on behalf
of the Borrower or any Subsidiary for use in connection with the transactions
contemplated by this Agreement, as the case may be, when taken together, as of
the date of its delivery, contained, contains or will contain any untrue
statement of a material fact or omitted, omits or will omit to state a material
fact necessary in order to make the statements contained herein or therein not
materially misleading in light of the circumstances in which the same were
made.  The projections that have been or
will be made available to the Administrative Agent or to any Lender by or on
behalf of the Borrower or any Subsidiary have been or will be prepared in good
faith based upon accounting principles consistent with the historical audited
financial statements of the Borrower and the Company (except as otherwise
expressly disclosed in such projections) and upon assumptions that the Borrower
believes to have been reasonable at the time made and at the time the related
projections are made available to the Administrative Agent or to any Lender (it
being understood that any such projections are subject to significant
uncertainties and contingencies, many of which are beyond the Borrower’s
control, that no assurance can be given that such projections will be realized
and that actual results may differ from such projections and that such differences
may be material).  As of the date hereof,
there is no fact known to the Borrower (other than matters of a general
economic nature) that has had or could reasonably be expected to have a
Material Adverse Effect and that has not been disclosed herein or in such other
documents, certificates and statements furnished to the Lenders for use in
connection with the transactions contemplated by this Agreement.

 

Section 5.19.  Solvency.  The Borrower and its Subsidiaries, on a
consolidated basis immediately after giving effect to the Transactions and the
other transactions contemplated hereby to occur on the Closing Date (including
without limitation, the funding of the Loans hereunder on the Closing Date and
the application of the proceeds thereof), are Solvent.

 

Section 5.20.  Senior Debt.  The Obligations hereunder constitute “Senior
Debt” (or the equivalent thereof) and “Designated Senior Debt” (or the
equivalent thereof) under documentation governing subordinated Indebtedness
permitted hereunder.

 

39

 

Section 5.21.  Foreign Corrupt Practices Act.  To
the Knowledge of the Borrower, (i)(a) as of the date hereof and (b) except
to the extent as could not reasonably be expected to have a Material Adverse
Effect, as of the Closing Date, it is in compliance in all material respects
with the United States Foreign Corrupt Practices Act of 1977 (the “Foreign Corrupt Practices Act”) and
any other United States and foreign Laws concerning corrupting payments, (ii) except
to the extent as could not reasonably be expected to have a Material Adverse
Effect, between January 1, 2008 and the Closing Date and except as listed
on Schedule 5.21 hereto, the Borrower has not been investigated by any
Governmental Entity (as defined in the Merger Agreement) with respect to, or
been given notice by a Governmental Entity of, any violation by the Borrower of
the Foreign Corrupt Practices Act or any other United States or foreign Laws
concerning corrupting payments and (iii) the Borrower and its Subsidiaries
have an operational Foreign Corrupt Practices Act/anticorruption compliance
program that includes, at a minimum, policies, procedures and training intended
to enhance awareness of and compliance by the Borrower or such Subsidiary with
the Foreign Corrupt Practices Act and any other applicable United States or
foreign Laws concerning corrupting payments.

 

ARTICLE 6

COVENANTS

 

So long as any Loan shall
remain unpaid or any Lender shall have any Commitment hereunder, unless the
Required Lenders shall otherwise consent in writing:

 

Section 6.01.  Financial Reporting.  The Borrower will maintain, for
itself and its Subsidiaries, a system of accounting established and
administered in accordance with generally accepted accounting principles,
consistently applied, and will furnish to the Lenders:

 

(a)        (i) As
soon as practicable and in any event within ninety (90) days after the close of
each of its Fiscal Years, an unqualified audit report certified by independent
certified public accountants, acceptable to the Lenders, prepared in accordance
with generally accepted accounting principles on a consolidated basis for
itself and its Subsidiaries, including balance sheets as of the end of such
period and related statements of income, retained earnings and cash flows
accompanied by (A) any management letter prepared by said accountants and
(B) a certificate of said accountants that, in the course of their
examination necessary for their certification of the foregoing, they have
obtained no knowledge of any Default or Unmatured Default, or if, in the
opinion of such accountants, any Default or Unmatured Default shall exist,
stating the nature and status thereof.

 

(ii)  If the Closing
Date has not occurred, as soon as practicable upon the same being made
available by the Company to the Borrower, an unqualified audit report for the
fiscal year of the Company ending September 30, 2010 certified by
nationally recognized independent certified accountants, prepared in accordance
with generally accepted accounting principles on a consolidated basis for the
Company and its subsidiaries, including balance sheets as of the end of such
period and related statements of income, retained earnings and cash flows for
such period;

 

40

 

provided that the Borrower shall use commercially
reasonable efforts to obtain such audit report from the Company promptly
following the due date for delivery thereof in accordance with the Merger
Agreement.

 

(b)        (i) As
soon as practicable and in any event within 45 days after the close of the
first three Fiscal Quarters of each of its Fiscal Years, for itself and its
Subsidiaries, consolidated unaudited balance sheets as at the close of each
such period and consolidated statements of income, retained earnings and cash
flows for the period from the beginning of such Fiscal Year to the end of such
quarter, all certified by its president or chief financial officer.

 

(ii)  If the Closing
Date has not occurred, as soon as practicable upon the same being made
available by the Company to the Borrower, for the Company and its subsidiaries,
consolidated unaudited balance sheets as of the close of any fiscal quarter of
the Company ending during the period beginning on the Effective Date and ending
on the Closing Date, and consolidated statements of income, retained earnings
and cash flows for the period from the beginning of such fiscal year to the end
of such fiscal quarter, all certified by the Company’s president or chief
financial officer provided that the Borrower shall
use commercially reasonable efforts to obtain such unaudited balance sheets
from the Company promptly following the due date for delivery thereof in
accordance with the Merger Agreement.

 

(c)        Together
with the financial statements required by clauses (a)(i) and (b)(i) above,
a certificate in substantially the form of Exhibit B hereto signed by the
Borrower’s president or chief financial officer (i) showing the
calculations necessary to determine compliance with Section 6.12(k),
6.16(e), 6.17 and 6.19(h), provided that
in the event of any change in generally accepted accounting principles used in
the preparation of such financial statements, the Borrower shall also provide,
if necessary for the determination of compliance with Section 6.17, a
statement of reconciliation conforming such financial statements to Agreement
Accounting Principles, and (ii) stating that no Default or Unmatured
Default exists, or if any Default or Unmatured Default exists, stating the
nature and status thereof.

 

(d)        Promptly
upon learning thereof, notice that a Single Employer Plan of the Borrower or
any member of the Controlled Group is in “at risk” status within the meaning of
Section 303 of ERISA or Section 430(i)(4) of the Code, and
within 270 days after the close of each Fiscal Year, a statement of the Funded
Target Attainment Percentage of each Single Employer Plan, certified as correct
by an actuary enrolled under ERISA.

 

(e)        As
soon as possible and in any event within ten (10) days after the Borrower
knows that any Termination Event has occurred with respect to any Plan, a
statement, signed by the chief financial officer of the Borrower, describing
said Termination Event and the action which the Borrower proposes to take with
respect thereto; provided that no such notice
shall be required to be given unless either (i) such Termination Event
could reasonably be expected to result in liabilities of the Borrower in excess
of $25,000,000 or (ii) the occurrence of such Termination Event would
trigger a requirement to deliver notice under Section 6.1(e) of the
Existing Credit Facility or Section 20.7(b) of the Euro Facility.

 

41

 

(f)         As
soon as possible and in any event within ten (10) days after the Borrower
learns thereof, notice of the assertion or commencement of any claims, action,
suit or proceeding against or affecting the Borrower or any Subsidiary which
may reasonably be expected to have a Material Adverse Effect.

 

(g)        Promptly
upon learning thereof, notice of any change in the credit rating of the
Borrower’s senior unsecured long term debt by S&P or Moody’s.

 

(h)        Promptly
upon the furnishing thereof to the shareholders of the Borrower, copies of all
financial statements, reports and proxy statements so furnished (or links to
pages on the Borrower’s website where such information may be accessed).

 

(i)         Promptly
upon the filing thereof, copies of all registration statements and annual,
quarterly, monthly or other regular reports which the Borrower or any of its
Subsidiaries files with the Securities and Exchange Commission (or links to
pages on the Borrower’s website where such information may be accessed).

 

(j)         Such
other information (including, without limitation, non financial information and
information required under the USA PATRIOT Act) as the Administrative Agent or
any Lender may from time to time reasonably request.

 

Section 6.02.  Use of Proceeds.  The Borrower will, and will cause
each Subsidiary to, use the proceeds of the Credit Extensions, together with
the proceeds of the Senior Notes and Bridge Loans, as applicable, solely to (a) pay
a portion of the Merger Consideration, (b) refinance certain of the
existing Indebtedness of the Company and (c) pay the Transaction
Costs.  The Borrower will not, nor will
it permit any Subsidiary to, use any of the proceeds of the Advances (i) to
purchase or carry any “margin stock” (as defined in Regulation U) or to finance
the acquisition of any Person which has not been approved and recommended by
the board of directors (or functional equivalent thereof) of such Person or
(ii) in violation of the Foreign Corrupt Practices Act and any other
United States and foreign Laws concerning corrupting payments.

 

Section 6.03.  Notice of Default.  The Borrower will give prompt notice
in writing to the Lenders of the occurrence of (a) any Default or
Unmatured Default and (b) any other event or development, financial or
other, relating specifically to the Borrower or any of its Subsidiaries (and
not of a general economic or political nature) which could reasonably be
expected to have a Material Adverse Effect.

 

Section 6.04.  Conduct of Business.  The Borrower will, and will cause
each Subsidiary to, (a) carry on and conduct its business in substantially
the same manner and in substantially the same fields of enterprise as it is
presently conducted, and will not, and will not permit any of its Subsidiaries
to, engage in any business other than (i) businesses in the same fields of
enterprise as now conducted by the Borrower and its Subsidiaries or the Company
and its Subsidiaries or (ii) businesses that are reasonably related or
incidental thereto or that, in the judgment of the board of directors of the
Borrower, are reasonably expected to materially enhance the other businesses

 

42

 

in which the Borrower and
its Subsidiaries are engaged, and (b) do all things necessary to remain
duly organized, validly existing and in good standing in its jurisdiction of
organization and maintain all requisite authority to conduct its business in
each jurisdiction in which its business is conducted, except where failure to
be in such good standing or so qualified or authorized could not reasonably be
expected to have a Material Adverse Effect; provided, however, that nothing in this Section 6.04 shall
prohibit the dissolution or sale, transfer or other disposition of any
Subsidiary that is not otherwise prohibited by this Agreement.

 

Section 6.05.  Taxes.  The Borrower will, and will cause
each Subsidiary to, timely file complete and correct United States federal and
applicable foreign, state and local tax returns required by applicable law and
pay when due all taxes, assessments and governmental charges and levies upon it
or its income, profits or Property, except those which are being contested in
good faith by appropriate proceedings and with respect to which adequate
reserves have been set aside.

 

Section 6.06.  Insurance.  The Borrower will, and will cause
each Subsidiary to, maintain with financially sound and reputable insurance
companies insurance on all their Property in such amounts and covering such
risks as is consistent with sound business practice, and the Borrower will
furnish to the Administrative Agent and any Lender upon request full information
as to the insurance carried.

 

Section 6.07.  Compliance with Laws.  The Borrower will, and will cause
each Subsidiary to, comply with all laws, rules, regulations, orders, writs,
judgments, injunctions, decrees or awards to which it may be subject, the failure
to comply with which could reasonably be expected to have a Material Adverse
Effect.

 

Section 6.08.  Maintenance of
Properties.  The Borrower
will, and will cause each Subsidiary to, do all things necessary to maintain,
preserve, protect and keep its Property in good repair, working order and
condition, and make all necessary and proper repairs, renewals and replacements
so that its business carried on in connection therewith may be properly
conducted at all times.

 

Section 6.09.  Inspection.  The Borrower will, and will cause
each Subsidiary to, permit the Administrative Agent and the Lenders, by their
respective representatives and agents, to inspect any of the Property,
corporate books and financial records of the Borrower and each Subsidiary, to examine
and make copies of the books of accounts and other financial records of the
Borrower and each Subsidiary, and to discuss the affairs, finances and accounts
of the Borrower and each Subsidiary with, and to be advised as to the same by,
their respective officers at such reasonable times and intervals as the Lenders
may designate.  The Borrower will keep or
cause to be kept, and cause each Subsidiary to keep or cause to be kept,
appropriate records and books of account in which complete entries are to be
made reflecting its and their business and financial transactions, such entries
to be made in accordance with generally accepted accounting principles
consistently applied.

 

43

 

Section 6.10.  Capital Stock and
Dividends.  So long as any
Default or Unmatured Default has occurred and is continuing before or
immediately after giving effect thereto, the Borrower will not declare or pay
any dividends or make any distributions on its capital stock (other than dividends
payable in its own capital stock) or redeem, repurchase or otherwise acquire or
retire any of its capital stock or any options or other rights in respect
thereof at any time outstanding.

 

Section 6.11.  Merger.  The Borrower will not, nor will it
permit any Subsidiary to, merge or consolidate with or into any other Person,
except that (a) a wholly-owned Subsidiary may merge into the Borrower or
any wholly-owned Subsidiary of the Borrower, (b) the Borrower or any
Subsidiary may merge or consolidate with any other Person so long as, in the
case of a merger or consolidation to which the Borrower is a party, the
Borrower is the surviving corporation, and, in the case of a merger or
consolidation to which a Subsidiary is a party and to which the Borrower is not
a party, the surviving corporation is a Subsidiary, and in any such case, prior
to and after giving effect to such merger or consolidation, no Default or
Unmatured Default shall exist and (c) any Subsidiary may enter into a
merger or consolidation as a means of effecting a disposition or acquisition
which would not result in a Default or Unmatured Default.

 

Section 6.12.  Liens.  The Borrower will not, nor will it
permit any Subsidiary to, create, incur, or suffer to exist any Lien in, of or
on the Property of the Borrower or any of its Subsidiaries, except:

 

(a)        Liens
for taxes, assessments or governmental charges or levies on its Property if the
same shall not at the time be delinquent or thereafter can be paid without
penalty, or are being contested in good faith and by appropriate proceedings
and for which adequate reserves in accordance with generally accepted
principles of accounting shall have been set aside on its books;

 

(b)        Liens
imposed by law, such as carriers’, warehousemen’s and mechanics’ liens and
other similar liens arising in the ordinary course of business which secure the
payment of obligations not more than sixty (60) days past due or which are
being contested in good faith by appropriate proceedings and for which adequate
reserves shall have been set aside on its books;

 

(c)        Liens
arising out of pledges or deposits under worker’s compensation laws,
unemployment insurance, old age pensions, or other social security or
retirement benefits, or similar legislation;

 

(d)        Utility
easements, building restrictions and such other encumbrances or charges against
real property as are of a nature generally existing with respect to properties
of a similar character and which do not in any material way affect the
marketability of the same or interfere with the use thereof in the business of
the Borrower or the Subsidiaries;

 

(e)        Banker’s
liens, rights of set-off or similar rights in favor of a depository institution
with respect to deposit accounts maintained with a depository institution in
the ordinary course

 

44

 

of
business and securing obligations with respect to the maintenance of such
accounts (and in no event securing any Indebtedness or other obligations);

 

(f)         Any
Lien arising by operation of law in the ordinary course of business in respect
of any obligation which is less than sixty (60) days overdue or which is being
contested in good faith and by appropriate means and for which adequate
reserves have been made;

 

(g)        Liens
created by any of the Borrower or its Subsidiaries over deposits and
investments in the ordinary course of such Person’s insurance and reinsurance
business to comply with the requirements of any regulatory body of insurance or
insurance brokerage business;

 

(h)        Any
Liens arising for the benefit of a credit institution pursuant to Clause 24
General Banking Conditions of the Netherlands Bankers Association (Algemene Voorwaarden van de Nederlandse Vereniging van Banken)
in respect of any bank account held with a credit institution in the
Netherlands;

 

(i)         Liens
over and limited to the balance of credit balances on bank accounts of the
Borrower and its Subsidiaries created in order to facilitate the operation of
such bank accounts and other bank accounts of the Borrower and its Subsidiaries
on a net balance basis with credit balances and debit balances on the various
accounts being netted off for interest purposes;

 

(j)         Liens,
if any, arising in connection with a Cananwill Securitization; and

 

(k)       Other
Liens securing an aggregate principal amount of obligations at no time
exceeding an amount equal to ten percent (10%) of Consolidated Net Worth at
such time.

 

Section 6.13.  Affiliates.  The Borrower will not, and will
not permit any Subsidiary to, enter into any transaction (including, without
limitation, the purchase or sale of any Property or service) with, or make any
payment or transfer to, any Affiliate except (a) for transactions between
the Borrower and any Wholly Owned Subsidiary of the Borrower or between Wholly
Owned Subsidiaries of the Borrower or (b) in the ordinary course of
business and pursuant to the reasonable requirements of the Borrower’s or such
Subsidiary’s business and upon fair and reasonable terms no less favorable to
the Borrower or such Subsidiary than the Borrower or such Subsidiary would
obtain in a comparable arm’s length transaction.

 

Section 6.14.  Change in Fiscal Year.  The Borrower shall not change its
Fiscal Year to end on any date other than December 31 of each year.

 

Section 6.15.  Restrictive Agreements.  The Borrower (a) shall not,
nor shall it permit any Subsidiary to, enter into any indenture, agreement,
instrument or other arrangement which, directly or indirectly prohibits, or has
the effect of prohibiting, or imposes materially adverse conditions upon, the
ability of any Subsidiary to (i) pay dividends or make other distributions
on its capital stock to the Borrower or any other Subsidiary, (ii) make
loans or advances to the Borrower or any other Subsidiary or (iii) repay
loans or advances from the Borrower or any other

 

45

 

Subsidiary, except (A) restrictions
and limitations imposed by Law or by the Loan Documents, (B) customary
restrictions and limitations contained in agreements relating to the sale of a
Subsidiary or its assets that is permitted hereunder, (C) restrictions and
conditions imposed by agreements relating to Indebtedness of any Subsidiary in
existence at the time such Subsidiary becomes a Subsidiary not created in
contemplation of or in connection with such Subsidiary becoming a Subsidiary
(or any refinancing or amendment thereof that does not result in a materially
more restrictive restriction or condition); provided that
such restrictions and conditions apply only to such Subsidiary and its
respective Subsidiaries, (D) restrictions set forth in the Bridge Credit
Agreement, (E) in the case of any Subsidiary that is not a wholly-owned
Subsidiary, customary restrictions and conditions imposed by its organizational
documents or any joint venture or similar agreement, (F) solely for the
first 60 days following the Closing Date, restrictions set forth in any
indenture, agreement, instrument or other arrangement to which the Company or
any of its Subsidiaries is party as of the date hereof and (G) any other
restrictions that could not reasonably be expected to impair the Borrower’s
ability to repay the Obligations as and when due and (b) shall comply with
Section 6.15 of the Existing Credit Facility and Section 22.16 of the
Euro Facility, in each case as if references therein to the “Obligations”, were
references to the Obligations, references to the “Loan Documents” or the
“Finance Documents” were references to the Loan Documents and references to the
“Advances” or the “Loans” were references to the Advances.

 

Section 6.16.  Dispositions.  The Borrower will not make any
Disposition or permit any Subsidiary to make any Disposition, except:

 

(a)        Dispositions
of inventory in the ordinary course of business;

 

(b)        Dispositions
of Property to the Borrower or any Subsidiary of the Borrower;

 

(c)        Dispositions
by Subsidiaries primarily engaged in insurance underwriting or related
activities from their investment portfolios in the ordinary course of business;

 

(d)        Dispositions
of investments in cash equivalents in the usual course of treasury business;
and

 

(e)        Any
other Disposition of Property which represents no more than 25% of the
Consolidated assets of the Borrower and its Subsidiaries, as would be shown in
the Consolidated financial statements of the Borrower and its Subsidiaries as
at the end of the quarter immediately preceding the date on which such
determination is made, to any other Person(s) in any Fiscal Year.

 

Section 6.17.  Financial Covenants.

 

(a)        Consolidated Adjusted EBITDA to Consolidated Interest Expense.  The Borrower will maintain as of the last day
of each Measurement Period a ratio of Consolidated Adjusted EBITDA to
Consolidated Interest Expense of not less than 4.0 to 1.0.

 

46

 

(b)        Consolidated Leverage Ratio.  The
Borrower will maintain as of the last day of each Measurement Period a
Consolidated Leverage Ratio of not more than 3.0 to 1.0.

 

Section 6.18.  ERISA.  The Borrower will (a) fulfill,
and cause each member of the Controlled Group to fulfill, its obligations under
the minimum funding standards of ERISA and the Code with respect to each Plan,
(b) comply, and cause each member of the Controlled Group to comply, with
all applicable provisions of ERISA and the Code with respect to each Plan,
except where such failure or noncompliance individually or in the aggregate
would not have a Material Adverse Effect and (c) not, and not permit any
member of the Controlled Group to, (i) seek a waiver of the minimum
funding standards under ERISA, (ii) terminate or withdraw from any Plan or
(iii) take any other action with respect to any Plan which would
reasonably be expected to entitle the PBGC to terminate, impose liability in
respect of, or cause a trustee to be appointed to administer, any Plan, unless
the actions or events described in the foregoing clauses (i), (ii) or
(iii) individually or in the aggregate would not have a Material Adverse
Effect.

 

Section 6.19.  Indebtedness.  The Borrower will not permit any
Subsidiary to create, incur, assume or suffer to exist any Indebtedness,
except:

 

(a)        Indebtedness
under the Loan Documents;

 

(b)        Indebtedness
under the Euro Facility, and any renewal and refinancing thereof, provided (i) that
the committed amount thereof is not increased to an aggregate amount greater
than the lesser of (A) €850,000,000 and (B) the amount permitted
under Section 6.19(b) of the Existing Credit Agreement and (ii) no
other Subsidiary (other than a Subsidiary that becomes a borrower thereunder)
becomes obligated in respect thereof;

 

(c)        Indebtedness
owed to the Borrower or another Subsidiary of the Borrower;

 

(d)        Indebtedness
under performance bonds, surety bonds or letter of credit obligations to
provide security under worker’s compensation laws, unemployment insurance, old
age pensions, or other social security or retirement benefits, or similar
legislation, and bank overdrafts, in each case, incurred in the ordinary course
of business;

 

(e)        Indebtedness
of any Subsidiary existing as of the date hereof (other than Indebtedness
described in clause (a) or (b) above), and any renewal and
refinancing thereof (including any other Subsidiary becoming a primary obligor
in respect thereof); provided that
the principal amount thereof is not increased;

 

(f)         Indebtedness
under Hedging Agreements entered into in the ordinary course of business and
not for speculative purposes;

 

(g)        Indebtedness
(to the extent such Indebtedness either (i) arises under clause (i) of
the definition of “Indebtedness” or (ii) would not be reflected as indebtedness
on a balance sheet of the Borrower and its Subsidiaries, calculated on a
consolidated basis) under any Cananwill Securitization; and

 

47

 

(h)        Other
Indebtedness in an aggregate amount outstanding at any time not to exceed
€1,500,000,000 minus the amount of Indebtedness
then outstanding under the Euro Facility and any renewal or refinancing
thereof.

 

ARTICLE 7

DEFAULTS

 

Section 7.01.  Defaults.  The occurrence of any one or more
of the following events shall constitute a Default:

 

(a)        Any
representation or warranty made or deemed made by or on behalf of the Borrower
or any of its Subsidiaries to the Lenders or the Administrative Agent under or
in connection with this Agreement, any other Loan Document, any Credit
Extension, or any certificate or information delivered in connection with this
Agreement or any other Loan Document shall be false in any material respect on
the date as of which made or deemed made;

 

(b)        Nonpayment
of any principal of any Loan when due or nonpayment of any interest upon any
Loan or of any fee or obligation under any of the Loan Documents within three
(3) Business Days after the same becomes due;

 

(c)        The
breach by the Borrower of any of the terms or provisions of Section 6.02, 6.03(a) or
Section 6.10 through 6.19;

 

(d)        The
breach by the Borrower (other than a breach which constitutes a Default under
clauses (a), (b) or (c) of this Section 7.01) of any of the
terms or provisions of this Agreement which is not remedied within twenty (20)
days after written notice from the Administrative Agent or any Lender;

 

(e)        The
occurrence of a Default (as defined in the Bridge Credit Agreement); or the
failure of the Borrower or any of its Subsidiaries to pay any Indebtedness
aggregating in excess of $25,000,000 when due; or the default by the Borrower
or any of its Subsidiaries in the performance of any term, provision or
condition contained in any agreement or agreements under which any such
Indebtedness was created or is governed, or the occurrence of any other event
or existence of any other condition, the effect of any of which is to cause
such Indebtedness to become due prior to its stated maturity; or any such
Indebtedness of the Borrower or any of its Subsidiaries shall be declared to be
due and payable or required to be prepaid (other than by a regularly scheduled
payment) prior to the stated maturity thereof.

 

(f)         The
Borrower or any of its Subsidiaries (other than Immaterial Subsidiaries) shall
(i) have an order for relief entered with respect to it under the Federal
bankruptcy laws as now or hereafter in effect, (ii) make an assignment for
the benefit of creditors, (iii) apply for, seek, consent to, or acquiesce
in, the appointment of a receiver, custodian, trustee, examiner, liquidator or
similar official for it or any Substantial Portion of its Property, (iv) institute
any proceeding

 

48

 

seeking
an order for relief under the Federal bankruptcy laws as now or hereafter in
effect or seeking to adjudicate it a bankrupt or insolvent, or seeking
dissolution, winding-up, liquidation, reorganization, arrangement, adjustment
or composition of it or its debts under any law relating to bankruptcy,
insolvency or reorganization or relief of debtors or fail to file an answer or
other pleading denying the material allegations of any such proceeding filed
against it, (v) take any corporate action to authorize or effect any of
the foregoing actions set forth in this Section 7.01(f), (vi) fail to
contest in good faith any appointment or proceeding described in Section 7.01(g) or
(vii) become unable to pay, not pay, or admit in writing its inability to
pay, its debts generally as they become due.

 

(g)        Without
the application, approval or consent of the Borrower or any of its
Subsidiaries, a receiver, trustee, examiner, liquidator or similar official
shall be appointed for the Borrower or any of its Subsidiaries or any
Substantial Portion of its Property or a proceeding described in Section 7.01(f)(iv) shall
be instituted against the Borrower or any of its Subsidiaries and such
appointment continues undischarged or such proceeding continues undismissed or
unstayed for a period of sixty (60) consecutive days.

 

(h)        Any
court, government or governmental agency shall condemn, seize or otherwise
appropriate, or take custody or control of (each, a “Condemnation”),
all or any portion of the Property of the Borrower and its Subsidiaries which,
when taken together with all other Property of the Borrower and its Subsidiaries
so condemned, seized, appropriated, or taken custody or control of, during the
twelve month period ending with the month in which any such Condemnation
occurs, constitutes a Substantial Portion.

 

(i)         The
Borrower or any of its Subsidiaries shall fail within thirty (30) days to pay,
bond or otherwise discharge any judgment or order for the payment of money in
excess of $25,000,000 (or multiple judgments or orders for the payment of an
aggregate amount in excess of $50,000,000), which is not stayed on appeal or
otherwise being appropriately contested in good faith and as to which no
enforcement actions have been commenced.

 

(j)         Any
Change in Control shall occur.

 

(k)        Any
Termination Event shall occur in connection with any Plan which could
reasonably be expected to have a Material Adverse Effect.

 

ARTICLE 8

ACCELERATION, WAIVERS, AMENDMENTS AND REMEDIES

 

Section 8.01.  Acceleration.  (a)  If any Default described
in Section 7.01(f) or 7.01(g) occurs with respect to the
Borrower, the obligations of the Lenders to make Loans hereunder shall
automatically terminate and the Obligations shall immediately become due and
payable without any election or action on the part of the Administrative Agent
or any Lender.  If any other Default
occurs, the Required Lenders (or the Administrative Agent with the consent or

 

49

 

upon the instruction of the
Required Lenders) may terminate or suspend the obligations of the Lenders to
make Loans hereunder, or declare the Obligations to be due and payable, or
both, whereupon the Obligations shall become immediately due and payable,
without presentment, demand, protest or notice of any kind, all of which the
Borrower hereby expressly waives.

 

(b)        If,
within ten (10) Business Days after (i) acceleration of the maturity
of the Obligations or (ii) termination of the obligations of the Lenders
to make Loans hereunder as a result of any Default (other than any Default as
described in Section 7.01(f) or 7.01(g) with respect to the
Borrower) and before any judgment or decree for the payment of the Obligations
due shall have been obtained or entered, the Required Lenders, in their sole
discretion, shall so direct the Administrative Agent, then the Administrative
Agent shall, by notice to the Borrower, rescind and annul such acceleration
and/or termination.

 

Section 8.02.  Amendments.  Subject to the provisions of this
Article 8, the Required Lenders (or the Administrative Agent with the
consent in writing of the Required Lenders) and the Borrower may enter into
agreements supplemental hereto for the purpose of adding or modifying any
provisions to the Loan Documents or changing in any manner the rights of the
Lenders or the Borrower hereunder or thereunder or waiving any Default
hereunder or thereunder; provided, however, that no such supplemental agreement shall, without
the consent of each Lender directly affected thereby:

 

(a)        Extend
the Maturity Date, or the date for any scheduled payment of principal
hereunder, compromise or forgive the principal amount of any Loan, or reduce
the rate of interest or compromise or forgive payment of interest on any Loan,
or reduce the amount of, or compromise or forgive payment of, any fee payable
hereunder;

 

(b)        Reduce
the percentage specified in the definition of Required Lenders;

 

(c)        Increase
the amount of the Commitment of any Lender hereunder;

 

(d)        Amend
this Section 8.02;

 

(e)        Permit
any assignment by the Borrower of its Obligations or its rights hereunder;

 

(f)         Postpone
the date fixed for any payment of principal of or interest on any Loan or the
date fixed for any payment of fees or other amounts due hereunder; or

 

(g)        Change
any provision hereof in a manner that would alter the pro rata
funding of Loans required by Section 2.03 or the pro rata
sharing of payments required by Section 2.12 or Section 11.02.

 

Notwithstanding any
provision herein to the contrary, this Agreement may be amended with the
written consent of the Required Lenders, the Administrative Agent and the
Borrower (i) to add one or more additional term loan facilities to this
Agreement and to permit the extensions of credit and all related obligations
and liabilities arising in connection therewith from time to

 

50

 

time outstanding to share
ratably in the benefits of this Agreement and the other Loan Documents with the
obligations and liabilities from time to time outstanding in respect of the
existing facilities hereunder, and (ii) in connection with the foregoing,
to permit, as deemed appropriate by the Administrative Agent and approved by
the Required Lenders, the Lenders providing such additional credit facilities
to participate in any required vote or action required to be approved by the
Required Lenders or by any other number, percentage or class of Lenders
hereunder.

 

No amendment of any
provision of this Agreement relating to the Administrative Agent shall be
effective without the written consent of the Administrative Agent.  The Administrative Agent may waive payment of
the fee required under Section 12.03(b) without obtaining the consent
of any other party to this Agreement.

 

Section 8.03.  Preservation of Rights.  No delay or omission of the
Lenders or the Administrative Agent to exercise any right under the Loan
Documents shall impair such right or be construed to be a waiver of any Default
or Unmatured Default or an acquiescence therein, and the making of a Credit
Extension notwithstanding the existence of a Default or Unmatured Default or
the inability of the Borrower to satisfy the conditions precedent to such
Credit Extension shall not constitute any waiver or acquiescence.  Any single or partial exercise of any such
right shall not preclude other or further exercise thereof or the exercise of
any other right, and no waiver, amendment or other variation of the terms,
conditions or provisions of the Loan Documents whatsoever shall be valid unless
in writing signed by the Lenders required pursuant to Section 8.02, and
then only to the extent in such writing specifically set forth.  All remedies contained in the Loan Documents
or by law afforded shall be cumulative and all shall be available to the
Administrative Agent and the Lenders until the Obligations have been paid in
full.

 

ARTICLE 9

GENERAL PROVISIONS

 

Section 9.01.  Survival of
Representations.  All
representations and warranties of the Borrower contained in this Agreement or
of the Borrower or any Subsidiary contained in any Loan Document shall survive
the making of the Credit Extensions herein contemplated.

 

Section 9.02.  Governmental Regulation.  Anything contained in this
Agreement to the contrary notwithstanding, no Lender shall be obligated to
extend credit to the Borrower in violation of any limitation or prohibition
provided by any applicable statute or regulation.

 

Section 9.03.  Headings.  Section headings in the Loan Documents
are for convenience of reference only, and shall not govern the interpretation
of any of the provisions of the Loan Documents.

 

51

 

Section 9.04.  Entire Agreement.  The Loan Documents embody the
entire agreement and understanding among the Borrower, the Administrative Agent
and the Lenders and supersede all prior agreements and understandings among the
Borrower, the Administrative Agent and the Lenders relating to the subject
matter thereof other than the Fee Letter, the Commitment Letter and the
Co-Arranger Commitment Letter.

 

Section 9.05.  Several Obligations; Benefits
of this Agreement.  The
respective obligations of the Lenders hereunder are several and not joint and
no Lender shall be the partner or agent of any other (except to the extent to
which the Administrative Agent is authorized to act as such).  The failure of any Lender to perform any of
its obligations hereunder shall not relieve any other Lender from any of its
obligations hereunder.  This Agreement
shall not be construed so as to confer any right or benefit upon any Person
other than the parties to this Agreement, the Indemnified Persons and their
respective successors and assigns; provided, however, that the parties hereto expressly agree that each
of the Arrangers shall enjoy the benefits of the provisions of Section 9.06,
9.10 and 10.08 to the extent specifically set forth therein and shall have the right
to enforce such provisions on its own behalf and in its own name to the same
extent as if it were a party to this Agreement.

 

Section 9.06.  Expenses; Indemnification.  (a) The Borrower agrees to pay all (i) reasonable
out-of-pocket expenses incurred by the Administrative Agent and the Arrangers
in connection with the syndication of the Loans and the preparation and
administration of this Agreement and the other Loan Documents or in connection
with any amendments, modifications or waivers of the provisions hereof or
thereof (whether or not the transactions hereby or thereby contemplated shall
be consummated) or (ii) expenses incurred by the Administrative Agent, any
Arranger, any Co-Arranger or any Lender in connection with the enforcement or
protection of its rights in connection with this Agreement and the other Loan
Documents or in connection with the Loans made hereunder, including the fees,
charges and disbursements of counsel for the Administrative Agent, the
Arrangers, the Co-Arrangers and the Lenders; provided
that in the case of clause (i), Borrower shall only be required to pay the
fees, charges and disbursement for one counsel for all such Persons (and, if
reasonably necessary, of one regulatory counsel and one local counsel in any
relevant jurisdiction for all such Persons and additional counsel if, in the
opinion of any such Person, representation of all such Persons by one counsel
would be inappropriate due to the existence of an actual or potential conflict
of interest).

 

(b)        The
Borrower agrees to indemnify the Administrative Agent, each Agent, each
Arranger, each Co-Arranger, each Lender and each Related Party of any of the
foregoing Persons (each such Person being called an “Indemnified
Person”) against, and to hold each Indemnified Person harmless
from, any and all losses, claims, damages, liabilities and related expenses,
including charges, disbursements and fees of counsel, incurred by or asserted
against any Indemnified Person arising out of, in any way connected with, or as
a result of (i) the execution or delivery of this Agreement or any other
Loan Document or any agreement or instrument contemplated thereby, the
performance by the parties thereto of their respective obligations thereunder
or the consummation of the Transactions and the other transactions contemplated
thereby (including the syndication of the Loans), (ii) the use of the
proceeds of the Loans, (iii)

 

52

 

any
claim, litigation, investigation or proceeding relating to any of the
foregoing, whether or not any Indemnified Person is a party thereto (and
regardless of whether such matter is initiated by a third party or by the
Borrower or any Subsidiary or any of their respective Affiliates), or (iv) any
actual or alleged presence or Release of Hazardous Materials on any property
currently or formerly owned or operated by the Borrower or any of the
Subsidiaries, or any Environmental Liability related in any way to the Borrower
or the Subsidiaries; provided that
such indemnity shall not, as to any Indemnified Person, be available to the
extent that such losses, claims, damages, liabilities or related expenses (x) are
found in a final, non-appealable judgment of a court of competent jurisdiction
to have resulted from (A) the willful misconduct or gross negligence of
such Indemnified Person or (B) a material breach in bad faith by the
relevant Indemnified Person of the express contractual obligations of such
Indemnified Person under this Agreement or (y) except with respect to
clause (iv) of this Section 9.06(b), arise out of or in connection
with any claim, litigation, investigation or proceeding that does not involve
an act or omission of the Borrower or any of its Affiliates and that is brought
by an Indemnified Person against any other Indemnified Person (excluding any
claim brought against any Arranger, Co-Arranger or Agent in their capacity as
such).  For purposes hereof, “Environmental Liability” means all
liabilities, obligations, damages, losses, claims, actions, suits, judgments,
orders, fines, penalties, fees, expenses and costs (including administrative
oversight costs, natural resource damages and remediation costs), whether
contingent or otherwise, arising out of or relating to (a) compliance or
non-compliance with any Environmental Law, (b) the generation, use,
handling, transportation, storage, treatment or disposal of any Hazardous
Materials, (c) exposure to any Hazardous Materials, (d) the Release
of any Hazardous Materials or (e) any contract, agreement or other consensual
arrangement pursuant to which liability is assumed or imposed with respect to
any of the foregoing.

 

(c)        To the
extent that the Borrower fails to pay any amount required to be paid by it to
the Administrative Agent under paragraph Section 9.06 or (b) of this
Section, each Lender severally agrees to pay to the Administrative Agent such
Lender’s pro rata share (determined as of the
time that the applicable unreimbursed expense or indemnity payment is sought)
of such unpaid amount; provided that
the unreimbursed expense or indemnified loss, claim, damage, liability or
related expense, as the case may be, was incurred by or asserted against the
Administrative Agent in its capacity as such.

 

(d)        To the
extent permitted by applicable law, the Borrower shall not assert, and hereby
waives, any claim against any Indemnified Person, on any theory of liability,
for special, indirect, consequential or punitive damages (as opposed to direct
or actual damages) arising out of, in connection with, or as a result of, this
Agreement or any agreement or instrument contemplated hereby, the Transactions,
any Loan or the use of the proceeds thereof.

 

(e)        The
provisions of this Section 9.06 shall remain operative and in full force
and effect regardless of the expiration of the term of this Agreement, the
consummation of the transactions contemplated hereby, the repayment of any of
the Loans, the expiration of the Commitments, the invalidity or
unenforceability of any term or provision of this Agreement or any other Loan
Document, or any investigation made by or on behalf of the Administrative

 

53

 

Agent.  All amounts due under this Section 9.06
shall be payable within fifteen (15) Business Days of the Borrower’s receipt of
written demand therefor.

 

Section 9.07.  Numbers of Documents.  All statements, notices, closing
documents, and requests hereunder shall be furnished to the Administrative
Agent with sufficient counterparts so that the Administrative Agent may furnish
one to each of the Lenders.

 

Section 9.08.  Accounting.  Except as provided to the contrary
herein, all accounting terms used herein shall be interpreted and all
accounting determinations hereunder shall be made in accordance with Agreement
Accounting Principles.

 

Section 9.09.  Severability of
Provisions.  Any provision in
any Loan Document that is held to be inoperative, unenforceable, or invalid in
any jurisdiction shall, as to that jurisdiction, be inoperative, unenforceable,
or invalid without affecting the remaining provisions in that jurisdiction or
the operation, enforceability, or validity of that provision in any other
jurisdiction, and to this end the provisions of all Loan Documents are declared
to be severable.

 

Section 9.10.  Nonliability of Lenders.  The relationship between the
Borrower on the one hand and the Lenders and the Administrative Agent on the
other hand shall be solely that of borrower and lender.  Neither the Administrative Agent, the
Arrangers, the Co-Arrangers nor any Lender shall have any fiduciary
responsibilities to the Borrower. 
Neither the Administrative Agent, the Arrangers, the Co-Arrangers nor
any Lender undertakes any responsibility to the Borrower to review or inform
the Borrower of any matter in connection with any phase of the Borrower’s
business or operations.  Neither the
Administrative Agent, the Arrangers, the Co-Arrangers nor any Lender shall have
any liability with respect to, and the Borrower hereby waives, releases and
agrees not to sue for, any special, indirect, consequential or punitive damages
suffered by the Borrower in connection with, arising out of, or in any way
related to the Loan Documents or the transactions contemplated thereby.

 

Section 9.11.  Confidentiality.  Each of the Administrative Agent
and the Lenders agrees to maintain the confidentiality of the Information (as
defined below), except that Information may be disclosed (a) to its
Affiliates and to its and its Affiliates’ respective managers, administrators,
trustees, partners, directors, officers, employees, agents, advisors and other
representatives, and third party settlement providers (it being understood that
the Persons to whom such disclosure is made will be informed of the
confidential nature of such Information and instructed to keep such Information
confidential), (b) to the extent requested by any regulatory authority
purporting to have jurisdiction over it or its Affiliates (including any
self-regulatory authority, such as the National Association of Insurance
Commissioners), (c) to the extent required by applicable laws or
regulations or by any subpoena or similar legal process, (d) to any other
party hereto, (e) in connection with the exercise of any remedies
hereunder or under any Note or any action or proceeding relating to this
Agreement or any Note or the enforcement of rights hereunder or thereunder, (f) subject
to an agreement containing provisions no less restrictive than those of this
Section, to (i) any assignee of or participant in, or any prospective
assignee of or participant in, any of its rights or obligations under this
Agreement, (ii) any actual

 

54

 

or prospective party (or
its managers, administrators, trustees, partners, directors, officers,
employees, agents, advisors and other representatives) to any swap, derivative
or other transaction under which payments are to be made by reference to the
Borrower and its obligations, this Agreement or payments hereunder, (iii) any
rating agency, or (iv) the CUSIP Service Bureau or any similar organization,
(g) with the consent of the Borrower or (h) to the extent such
Information (x) becomes publicly available other than as a result of a
breach of this Section or (y) becomes available to the Administrative
Agent, any Lender or any of their respective Affiliates on a nonconfidential
basis from a source other than the Borrower.

 

For purposes of this
Section, “Information” means all
information received from the Borrower or any of its Subsidiaries relating to
the Borrower or any of its Subsidiaries or any of their respective businesses,
other than any such information that is available to the Administrative Agent
or any Lender on a non-confidential basis prior to disclosure by the Borrower
or any of its Subsidiaries.  Any Person
required to maintain the confidentiality of Information as provided in this
Section shall be considered to have complied with its obligation to do so
if such Person has exercised the same degree of care to maintain the
confidentiality of such Information as such Person would accord to its own
confidential information.

 

Without limiting Section 9.04,
the Borrower agrees that the terms of this Section 9.11 shall set forth
the entire agreement between the Borrower and each Lender (including the
Administrative Agent) with respect to any confidential information previously
or hereafter received by such Lender in connection with this Agreement, and
this Section 9.11 shall supersede any and all prior confidentiality
agreements entered into by such Lender with respect to such confidential
information.

 

Section 9.12.  Disclosure.  The Borrower and each Lender
hereby acknowledge and agree that the Administrative Agent, the Arrangers, the
Co-Arrangers and/or their Affiliates from time to time may hold investments in,
make other loans to or have other relationships with the Borrower and its
Affiliates.

 

Section 9.13.  USA PATRIOT ACT
NOTIFICATION.  Each Lender
hereby notifies the Borrower that pursuant to the requirements of the USA
PATRIOT ACT, it is required to obtain, verify and record information that
identifies the Borrower, which information includes the name and address of the
Borrower and other information that will allow such Lender to identify the
Borrower in accordance with the USA PATRIOT ACT.  The Borrower shall provide such information
promptly upon the request of a Lender.

 

ARTICLE 10

THE ADMINISTRATIVE AGENT

 

Section 10.01.  Authorization and
Authority.  Each Lender hereby
irrevocably appoints Credit Suisse AG to act on its behalf as the
Administrative Agent hereunder and under the other Loan Documents and
authorizes the Administrative Agent to take such actions on its behalf and

 

55

 

to exercise such powers as
are delegated to the Administrative Agent by the terms hereof or thereof,
together with such actions and powers as are reasonably incidental
thereto.  Other than Section 10.06,
the provisions of this Article are solely for the benefit of the
Administrative Agent and the Lenders, and the Borrower shall have no rights as
a third party beneficiary of any of such provisions.

 

Section 10.02.  Administrative Agent
Individually. (a) The Person serving as the Administrative
Agent hereunder shall have the same rights and powers in its capacity as a
Lender as any other Lender and may exercise the same as though it were not the
Administrative Agent and the term “Lender” or “Lenders” shall, unless otherwise
expressly indicated or unless the context otherwise requires, include the
Person serving as the Administrative Agent hereunder in its individual
capacity.  Such Person and its Affiliates
may accept deposits from, lend money to, act as the financial advisor or in any
other advisory capacity for and generally engage in any kind of business with
the Borrower or any Subsidiary or other Affiliate thereof as if such Person
were not the Administrative Agent hereunder and without any duty to account
therefor to the Lenders.

 

(b)           Each Lender understands that the Person serving as
Administrative Agent, acting in its individual capacity, and its Affiliates
(collectively, the “Agent’s Group”) are engaged
in a wide range of financial services and businesses (including investment
management, financing, securities trading, corporate and investment banking and
research) (such services and businesses are collectively referred to in this
Section 10.02 as “Activities”)
and may engage in the Activities with or on behalf of the Borrower or its
Affiliates.  Furthermore, the Agent’s
Group may, in undertaking the Activities, engage in trading in financial
products or undertake other investment businesses for its own account or on
behalf of others (including the Borrower and its Affiliates and including
holding, for its own account or on behalf of others, equity, debt and similar
positions in the Borrower or its Affiliates), including trading in or holding
long, short or derivative positions in securities, loans or other financial
products of one or more of the Borrower and its Affiliates.  Each Lender understands and agrees that in
engaging in the Activities, the Agent’s Group may receive or otherwise obtain
information concerning the Borrower and its Affiliates (including information
concerning the ability of the Borrower to perform its obligations hereunder and
under the other Loan Documents) which information may not be available to any
of the Lenders that are not members of the Agent’s Group.  None of the Administrative Agent nor any
member of the Agent’s Group shall have any duty to disclose to any Lender or
use on behalf of the Lenders, and shall not be liable for the failure to so
disclose or use, any information whatsoever about or derived from the
Activities or otherwise (including any information concerning the business,
prospects, operations, property, financial and other condition or
creditworthiness of the Borrower or any Affiliate thereof) or to account for
any revenue or profits obtained in connection with the Activities, except that
the Administrative Agent shall deliver or otherwise make available to each
Lender such documents as are expressly required by any Loan Document to be
transmitted by the Administrative Agent to the Lenders.

 

(c)           Each Lender further understands that there may be
situations where members of the Agent’s Group or their respective customers
(including the Borrower and its Affiliates) either

 

56

 

now have or may in the
future have interests or take actions that may conflict with the interests of
any one or more of the Lenders (including the interests of the Lenders
hereunder and under the other Loan Documents). 
Each Lender agrees that no member of the Agent’s Group is or shall be
required to restrict its activities as a result of the Person serving as
Administrative Agent being a member of the Agent’s Group, and that each member
of the Agent’s Group may undertake any Activities without further consultation
with or notification to any Lender.  None
of (i) this Agreement nor any other Loan Document, (ii) the receipt
by the Agent’s Group of information (including Information) concerning the Borrower
or its Affiliates (including information concerning the ability of the Borrower
to perform its obligations hereunder and under the other Loan Documents) nor
(iii) any other matter shall give rise to any fiduciary or equitable
duties (including without limitation any duty of trust or confidence) owing by
the Administrative Agent or any member of the Agent’s Group to any Lender
including any such duty that would prevent or restrict the Agent’s Group from
acting on behalf of customers (including the Borrower or its Affiliates) or for
its own account.

 

Section 10.03.  Duties of Administrative
Agent; Exculpatory Provisions. 
(a) The Administrative Agent’s duties hereunder and under the other
Loan Documents are solely ministerial and administrative in nature and the
Administrative Agent shall not have any duties or obligations except those
expressly set forth herein and in the other Loan Documents.  Without limiting the generality of the
foregoing, the Administrative Agent shall not have any duty to take any
discretionary action or exercise any discretionary powers, but shall be
required to act or refrain from acting (and shall be fully protected in so
acting or refraining from acting) upon the written direction of the Required
Lenders (or such other number or percentage of the Lenders as shall be
expressly provided for herein or in the other Loan Documents), provided that
the Administrative Agent shall not be required to take any action that, in its
opinion or the opinion of its counsel, may expose the Administrative Agent or
any of its Affiliates to liability or that is contrary to any Loan Document or
applicable law.

 

(b)        The
Administrative Agent shall not be liable for any action taken or not taken by
it (i) with the consent or at the request of the Required Lenders (or such
other number or percentage of the Lenders as shall be necessary, or as the
Administrative Agent shall believe in good faith shall be necessary, under the
circumstances as provided in Sections 8.01 or 8.02) or (ii) in the absence
of its own gross negligence or willful misconduct.  The Administrative Agent shall be deemed not
to have knowledge of any Default or Unmatured Default or the event or events
that give or may give rise to any Default or Unmatured Default unless and until
the Borrower or any Lender shall have given written notice to the
Administrative Agent describing such Default or Unmatured Default and such
event or events.

 

(c)        Neither
the Administrative Agent nor any member of the Agent’s Group shall be
responsible for or have any duty to ascertain or inquire into (i) any
statement, warranty, representation or other information made or supplied in or
in connection with this Agreement or any other Loan Document, (ii) the
contents of any certificate, report or other document delivered hereunder or
thereunder or in connection herewith or therewith or the adequacy, accuracy
and/or completeness of the information contained therein, (iii) the
performance or observance of any of

 

57

 

the
covenants, agreements or other terms or conditions set forth herein or therein
or the occurrence of any Default or Unmatured Default, (iv) the validity,
enforceability, effectiveness or genuineness of this Agreement, any other Loan
Document or any other agreement, instrument or document or the perfection or
priority of any Lien or security interest created or purported to be created
hereby or (v) the satisfaction of any condition set forth in Article 4
or elsewhere herein, other than (but subject to the foregoing clause (ii)) to
confirm receipt of items expressly required to be delivered to the
Administrative Agent.

 

(d)        Nothing
in this Agreement or any other Loan Document shall require the Administrative
Agent or any of its Related Parties to carry out any “know your customer” or
other checks in relation to any person on behalf of any Lender and each Lender
confirms to the Administrative Agent that it is solely responsible for any such
checks it is required to carry out and that it may not rely on any statement in
relation to such checks made by the Administrative Agent or any of its Related
Parties.

 

Section 10.04.  Reliance by Administrative
Agent.  The Administrative
Agent shall be entitled to rely upon, and shall not incur any liability for
relying upon, any notice, request, certificate, consent, statement, instrument,
document or other writing (including any electronic message, Internet or
intranet website posting or other distribution) believed by it to be genuine
and to have been signed, sent or otherwise authenticated by the proper
Person.  The Administrative Agent also
may rely upon any statement made to it orally or by telephone and believed by
it to have been made by the proper Person, and shall not incur any liability
for relying thereon.  In determining
compliance with any condition hereunder to the making of a Loan that by its
terms must be fulfilled to the satisfaction of a Lender, the Administrative
Agent may presume that such condition is satisfactory to such Lender unless an
officer of the Administrative Agent responsible for the transactions
contemplated hereby shall have received notice to the contrary from such Lender
prior to the making of such Loan, and such Lender shall not have made available
to the Administrative Agent such Lender’s ratable portion of such Advance.  The Administrative Agent may consult with
legal counsel (who may be counsel for the Borrower), independent accountants
and other experts selected by it, and shall not be liable for any action taken
or not taken by it in accordance with the advice of any such counsel,
accountants or experts.

 

Section 10.05.  Delegation of Duties.  The Administrative Agent may perform any and
all of its duties and exercise its rights and powers hereunder or under any
other Loan Document by or through any one or more sub agents appointed by the
Administrative Agent.  The Administrative
Agent and any such sub agent may perform any and all of its duties and exercise
its rights and powers by or through their respective Related Parties.  Each such sub agent and the Related Parties
of the Administrative Agent and each such sub agent shall be entitled to the
benefits of all provisions of this Article 10 and Section 9.06 (as
though such sub-agents were the “Administrative Agent” under the Loan
Documents) as if set forth in full herein with respect thereto.

 

58

 

Section 10.06.  Resignation of
Administrative Agent.  The
Administrative Agent may at any time give notice of its resignation to the
Lenders and the Borrower.  Upon receipt
of any such notice of resignation, the Required Lenders shall have the right,
with the consent of the Borrower unless a Default has occurred and is
continuing (and otherwise in consultation with the Borrower)(provided that such consent of the Borrower shall not be
unreasonably withheld or delayed and shall be deemed to have been given if the
Borrower has not responded within five Business Days of the Borrower’s receipt
of a written notice requesting such consent), to appoint a successor.  If no such successor shall have been so
appointed by the Required Lenders and shall have accepted such appointment
within 30 days after the retiring Administrative Agent gives notice of its
resignation (such 30-day period, the “Lender Appointment Period”),
then the retiring Administrative Agent may on behalf of the Lenders, appoint a
successor Administrative Agent meeting the qualifications set forth above.  In addition and without any obligation on the
part of the retiring Administrative Agent to appoint, on behalf of the Lenders,
a successor Administrative Agent, the retiring Administrative Agent may at any
time upon or after the end of the Lender Appointment Period notify the Borrower
and the Lenders that no qualifying Person has accepted appointment as successor
Administrative Agent and the effective date of such retiring Administrative
Agent’s resignation.  Upon the
resignation effective date established in such notice and regardless of whether
a successor Administrative Agent has been appointed and accepted such
appointment, the retiring Administrative Agent’s resignation shall nonetheless
become effective and (i) the retiring Administrative Agent shall be
discharged from its duties and obligations as Administrative Agent hereunder
and under the other Loan Documents, (ii) all payments and communications
provided to be made to or through the Administrative Agent shall instead be
made by or to each Lender directly and (iii) all determinations to be made
by the Administrative Agent shall instead be made by the Required Lenders, in
each case, until such time as the Required Lenders appoint a successor
Administrative Agent as provided for above in this paragraph.  Upon the acceptance of a successor’s
appointment as Administrative Agent hereunder, such successor shall succeed to
and become vested with all of the rights, powers, privileges and duties as
Administrative Agent of the retiring (or retired) Administrative Agent, and the
retiring Administrative Agent shall be discharged from all of its duties and obligations
as Administrative Agent hereunder or under the other Loan Documents (if not
already discharged therefrom as provided above in this paragraph).  The fees payable by the Borrower to a
successor Administrative Agent shall be the same as those payable to its
predecessor unless otherwise agreed between the Borrower and such
successor.  After the retiring
Administrative Agent’s resignation hereunder and under the other Loan
Documents, the provisions of this Article and Section 9.06 shall
continue in effect for the benefit of such retiring Administrative Agent, its
sub agents and their respective Related Parties in respect of any actions taken
or omitted to be taken by any of them while the retiring Administrative Agent
was acting as Administrative Agent.

 

Section 10.07.  Non-Reliance on
Administrative Agent and Other Lenders.

 

(a)        Each
Lender confirms to the Administrative Agent, each other Lender and each of
their respective Related Parties that it (i) possesses (individually or
through its Related Parties) such knowledge and experience in financial and
business matters that it is capable, without reliance on the Administrative
Agent, any other Lender or any of their respective Related Parties,

 

59

 

of
evaluating the merits and risks (including tax, legal, regulatory, credit,
accounting and other financial matters) (x) of entering into this
Agreement, (y) of making Loans and other extensions of credit hereunder
and under the other Loan Documents and (z) in taking or not taking actions
hereunder and thereunder, (ii) is financially able to bear such risks and
(iii) has determined that entering into this Agreement and making Loans
and other extensions of credit hereunder and under the other Loan Documents is
suitable and appropriate for it.

 

(b)        Each
Lender acknowledges that (i) it is solely responsible for making its own
independent appraisal and investigation of all risks arising under or in
connection with this Agreement and the other Loan Documents, (ii) it has,
independently and without reliance upon the Administrative Agent, any other
Lender or any of their respective Related Parties, made its own appraisal and
investigation of all risks associated with, and its own credit analysis and
decision to enter into, this Agreement based on such documents and information,
as it has deemed appropriate and (iii) it will, independently and without
reliance upon the Administrative Agent, any other Lender or any of their
respective Related Parties, continue to be solely responsible for making its
own appraisal and investigation of all risks arising under or in connection
with, and its own credit analysis and decision to take or not take action
under, this Agreement and the other Loan Documents based on such documents and information
as it shall from time to time deem appropriate, which may include, in each
case:

 

(i)        the
financial condition, status and capitalization of the Borrower;

 

(ii)       the
legality, validity, effectiveness, adequacy or enforceability of this Agreement
and each other Loan Document and any other agreement, arrangement or document
entered into, made or executed in anticipation of, under or in connection with
any Loan Document;

 

(iii)      determining
compliance or non-compliance with any condition hereunder to the making of a
Loan and the form and substance of all evidence delivered in connection with
establishing the satisfaction of each such condition; and

 

(iv)     the
adequacy, accuracy and/or completeness of the information delivered by the
Administrative Agent, any other Lender or by any of their respective Related
Parties under or in connection with this Agreement or any other Loan Document,
the transactions contemplated hereby and thereby or any other agreement,
arrangement or document entered into, made or executed in anticipation of,
under or in connection with any Loan Document.

 

Section 10.08.  No Other Duties, Etc.  None of the Lenders (or Affiliates of
Lenders) identified in this Agreement as the “Syndication Agent” or “Arrangers”
or “Co-Arrangers” or “Co-Documentation Agents” shall have any right, power,
obligation, liability, responsibility or duty under this Agreement in such
identified capacity other than those (in the case of those who are Lenders)
applicable to all Lenders as such. 
Without limiting the foregoing, none of such Lenders (or Affiliates of
Lenders) shall have or be deemed to have a fiduciary relationship with any
Lender.  Each Lender hereby makes the
same acknowledgments with respect to such

 

60

 

Lenders (and such
Affiliates) as it makes with respect to the Administrative Agent in Section 10.07.

 

ARTICLE 11

SETOFF; RATABLE PAYMENTS

 

Section 11.01.  Setoff.  In addition to, and without
limitation of, any rights of the Lenders under applicable law, if the Borrower
becomes insolvent, however evidenced, or any Default occurs, any and all
deposits (including all account balances, whether provisional or final and
whether or not collected or available) and any other Indebtedness at any time
held or owing by any Lender or any Affiliate of any Lender to or for the credit
or account of the Borrower may be offset and applied toward the payment of the
Obligations owing to such Lender, whether or not the Obligations, or any part
thereof, shall then be due.

 

Section 11.02.  Ratable Payments.  If any Lender, whether by setoff
or otherwise, has payment made to it upon its Outstanding Credit Exposure
(other than payments received pursuant to Sections 3.01, 3.02, 3.04, 3.05 or
9.06) in a greater proportion than that received by any other Lender, such
Lender agrees, promptly upon demand, to purchase a portion of the Aggregate
Outstanding Credit Exposure held by the other Lenders so that after such
purchase each Lender will hold its ratable proportion of the Aggregate
Outstanding Credit Exposure.  If any
Lender, whether in connection with setoff or amounts which might be subject to
setoff or otherwise, receives collateral or other protection for its
Obligations or such amounts which may be subject to setoff, such Lender agrees,
promptly upon demand, to take such action necessary such that all Lenders share
in the benefits of such collateral ratably in proportion to their respective
Outstanding Credit Exposure.  In case any
such payment is disturbed by legal process, or otherwise, appropriate further
adjustments shall be made.

 

ARTICLE 12

BENEFIT OF AGREEMENT; ASSIGNMENTS; PARTICIPATIONS

 

Section 12.01.  Successors and Assigns.  The terms and provisions of the
Loan Documents shall be binding upon and inure to the benefit of the Borrower
and the Lenders and their respective successors and assigns permitted hereby,
except that (i) the Borrower shall not have the right to assign its rights
or obligations under the Loan Documents, (ii) any assignment by any Lender
must be made in compliance with Section 12.03 and (iii) any
participation must be made in compliance with Section 12.02.  Any attempted assignment or transfer by any
party not made in compliance with this Section 12.01 shall be null and
void, unless such attempted assignment or transfer is treated as a
participation in accordance with Section 12.03(b).  The parties to this Agreement acknowledge
that clause (ii) of this Section 12.01 relates only to absolute
assignments and this Section 12.01 does not prohibit assignments creating
security interests, including, without limitation, (A) any pledge or
assignment by any Lender of all or any portion of its rights under this
Agreement and any Note to secure obligations of such Lender,

 

61

 

including to a Federal
Reserve Bank, the European Central Bank or any other central bank to which such
Lender reports (provided that, no such pledge or
assignment shall release a Lender from any of its obligations hereunder or
substitute any such pledgee or assignee for such Lender party hereto) or (B) in
the case of a Lender which is a Fund, any pledge or assignment of all or any
portion of its rights under this Agreement and any Note to its trustee in
support of its obligations to its trustee; provided, however, that no such pledge or assignment creating a
security interest shall release the transferor Lender from its obligations
hereunder unless and until the parties thereto have complied with the
provisions of Section 12.03.  The
Administrative Agent may treat the Person which made any Loan or which holds
any Note as the owner thereof for all purposes hereof unless and until such
Person complies with Section 12.03; provided, however, that the Administrative Agent may in its discretion
(but shall not be required to) follow instructions from the Person which made
any Loan or which holds any Note to direct payments relating to such Loan or
Note to another Person.  Any assignee of
the rights to any Loan or any Note agrees by acceptance of such assignment to
be bound by all the terms and provisions of the Loan Documents.  Any request, authority or consent of any
Person, who at the time of making such request or giving such authority or
consent is the owner of the rights to any Loan (whether or not a Note has been
issued in evidence thereof), shall be conclusive and binding on any subsequent
holder or assignee of the rights to such Loan.

 

Section 12.02.  Participations.  (a) Permitted
Participants; Effect.  Any
Lender may, in the ordinary course of its business and in accordance with
applicable law, at any time sell to one or more banks or other entities (“Participants”) participating
interests in any Outstanding Credit Exposure of such Lender, any Note held by
such Lender, any Commitment of such Lender or any other interest of such Lender
under the Loan Documents.  In the event
of any such sale by a Lender of participating interests to a Participant, such
Lender’s obligations under the Loan Documents shall remain unchanged, such
Lender shall remain solely responsible to the other parties hereto for the
performance of such obligations, such Lender shall remain the owner of its
Outstanding Credit Exposure and the holder of any Note issued to it in evidence
thereof for all purposes under the Loan Documents, all amounts payable by the
Borrower under this Agreement shall be determined as if such Lender had not
sold such participating interests, and the Borrower and the Administrative
Agent shall continue to deal solely and directly with such Lender in connection
with such Lender’s rights and obligations under the Loan Documents.

 

(b)        Voting Rights.  Each
Lender shall retain the sole right to approve, without the consent of any
Participant, any amendment, modification or waiver of any provision of the Loan
Documents other than any amendment, modification or waiver with respect to any
Credit Extension or Commitment in which such Participant has an interest which
would require consent of all of the affected Lenders pursuant to the terms of
Section 8.02 or of any other Loan Document.

 

(c)        Benefit of Certain Provisions.  The Borrower agrees that each Participant
which has been identified as such to the Borrower in writing shall be deemed to
have the right of setoff provided in Section 11.01 in respect of its
participating interest in amounts owing under the Loan Documents to the same
extent as if the amount of its participating interest were owing directly to

 

62

 

it
as a Lender under the Loan Documents; provided, that
each Lender shall retain the right of setoff provided in Section 11.01
with respect to the amount of participating interests sold to each
Participant.  The Lenders agree to share
with each Participant, and each Participant, by exercising the right of setoff provided
in Section 11.01, agrees to share with each Lender, any amount received
pursuant to the exercise of its right of setoff, such amounts to be shared in
accordance with Section 11.02 as if each Participant were a Lender.  The Borrower further agrees that each
Participant shall be entitled to the benefits of Section 3.01, 3.02 and
3.05 to the same extent as if it were a Lender and had acquired its interest by
assignment pursuant to Section 12.03, provided that
(i) a Participant shall not be entitled to receive any greater payment
under Section 3.01, 3.02 or 3.05 than the Lender who sold the
participating interest to such Participant would have received had it retained
such interest for its own account, unless the sale of such interest to such
Participant is made with the prior written consent of the Borrower, and (ii) any
Participant complies with the provisions of Section 3.05 to the same
extent as if it were a Lender.

 

Section 12.03.  Assignments.  (a) Permitted Assignments.  Any Lender may, in the ordinary course of its
business and in accordance with applicable law, at any time assign to one or
more banks or other entities other than the Borrower or any of its Affiliates
(“Purchasers”) all or any part of its
rights and obligations under the Loan Documents.  Such assignment shall be substantially in the
form of Exhibit C or in such other form as may be agreed to by the parties
thereto.  The consent of the Borrower and
the Administrative Agent shall be required prior to an assignment becoming
effective with respect to a Purchaser which is not a Lender, an Affiliate
thereof, an Approved Fund or a Permitted Assignee; provided,
however, that, with respect to
assignments after the Closing Date, (i) if a Default or an Unmatured
Default has occurred and is continuing, the consent of the Borrower shall not
be required and (ii) such consent shall be deemed to have been given if
the Borrower has not responded within five Business Days of the Borrower’s
receipt of a written notice requesting such consent.  Such consent shall not be unreasonably
withheld or delayed.  Each such
assignment with respect to a Purchaser which is not a Lender or an Affiliate
thereof shall (unless each of the Borrower and the Administrative Agent otherwise
consents) be in an amount not less than the lesser of (i) $1,000,000 and
in increments of $1,000,000 in excess thereof (with contemporaneous assignments
to two or more Approved Funds being combined for the purpose of determining
whether the minimum assignment requirement is met) or (ii) the remaining
amount of the assigning Lender’s Commitment or Outstanding Credit Exposure (if
the applicable Commitment has been terminated). 
The amount of the assignment shall be based on the Commitment or
Outstanding Credit Exposure (if the applicable Commitment has been terminated)
subject to the assignment, determined as of the date of such assignment or as
of the “Trade Date”, if the “Trade Date” is specified in the assignment.

 

(b)        Effect; Effective Date. 
Upon (i) delivery
(via an electronic settlement system acceptable to the Administrative Agent) to
and acceptance by the Administrative Agent of an assignment, together with any
consents required by
12.03, (ii) payment of a
$3,500 fee to the Administrative Agent for processing such assignment and (iii) if
the assignee is not a Lender, delivery to the Administrative Agent by the
assignee of an Administrative Questionnaire, such assignment shall become
effective on the effective date specified in such assignment.  On and

 

63

 

after
the effective date of such assignment, such Purchaser shall for all purposes be
a Lender party to this Agreement and any other Loan Document executed by or on
behalf of the Lenders and shall have all the rights and obligations of a Lender
under the Loan Documents, to the same extent as if it were an original party
hereto, and no further consent or action by the Borrower, the Lenders or the
Administrative Agent shall be required to release the transferor Lender with
respect to the percentage of the Aggregate Commitment and Outstanding Credit
Exposure assigned to such Purchaser.  In
the case of an assignment covering all of the assigning Lender’s rights and
obligations under this Agreement, such Lender shall cease to be a Lender
hereunder but shall continue to be entitled to the benefits of, and subject to,
those provisions of this Agreement and the other Loan Documents which survive
payment of the Obligations and termination of the applicable agreement.  Any assignment or transfer by a Lender of
rights or obligations under this Agreement that does not comply with this
Section 12.03 shall be treated for purposes of this Agreement as a sale by
such Lender of a participation in such rights and obligations in accordance
with Section 12.02.  Upon the
consummation of any assignment to a Purchaser pursuant to this Section 12.03(b),
the transferor Lender, the Administrative Agent and the Borrower shall, if the
transferor Lender or the Purchaser desires that its Loans be evidenced by
Notes, make appropriate arrangements so that new Notes or, as appropriate,
replacement Notes are issued to such transferor Lender and new Notes or, as
appropriate, replacement Notes, are issued to such Purchaser, in each case in
principal amounts reflecting their respective Commitments, as adjusted pursuant
to such assignment.

 

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

 

Section 12.04.  Dissemination of
Information.  The Borrower
authorizes each Lender to disclose to any Participant or Purchaser or any other
Person acquiring an interest in the Loan Documents by operation of law (each a
“Transferee”) and any prospective
Transferee any and all information in such Lender’s possession concerning the
creditworthiness of the Borrower and its Subsidiaries; provided
that each Transferee and prospective Transferee agrees to be bound by Section 9.11
of this Agreement.

 

Section 12.05.  Tax Treatment.  If any interest in any Loan
Document is transferred to any Transferee which is not organized under the laws
of the United States or any State thereof, the transferor Lender shall cause
such Transferee, concurrently with the effectiveness of such transfer, to
comply with the provisions of Section 3.05(d).

 

64

 

ARTICLE 13

NOTICES

 

Section 13.01.  Giving Notice.  Except as otherwise permitted by
Section 2.14 with respect to borrowing notices, all notices, requests and
other communications to any party hereunder shall be in writing (including
electronic transmission, facsimile transmission or similar writing) and shall
be given to such party: (a) in the case of the Borrower or the
Administrative Agent, at its address or facsimile number set forth on the
signature pages hereof, (b) in the case of any Lender, at its address
or facsimile number set forth below its signature hereto or (c) in the
case of any party, at such other address or facsimile number as such party may
hereafter specify for the purpose by notice to the Administrative Agent and the
Borrower in accordance with the provisions of this Section 13.01.  Each such notice, request or other
communication shall be effective (i) if given by facsimile transmission,
when transmitted to the facsimile number specified in this Section and
confirmation of receipt 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, or (iii) if given by any other means, when
delivered (or, in the case of electronic transmission, received or confirmed by
email) at the address specified in this Section; provided
that notices to the Administrative Agent under Article 2 shall not be
effective until received. Except as set forth below, notwithstanding anything
to the contrary in this Section, the Borrower shall furnish the materials
described in Sections 6.01(a), 6.01(b), 6.01(h) and 6.01(i) by email
or by posting such materials on an internet web site made available to the
Lenders or as otherwise specified to the Borrower by the Administrative Agent.

 

So long as Credit Suisse AG
or any of its Affiliates is the Administrative Agent, materials required to be
delivered pursuant to Sections 6.01(a), 6.01(b), 6.01(h) and 6.01(i) shall
be delivered by hand or overnight courier service, mailed by certified or
registered mail or sent by fax or email to the Administrative Agent as follows:
Credit Suisse, Attention of: Sean Portrait, Eleven Madison Avenue, New York, NY
10010, Fax No. 212-322-2291, Email: 
agency.loanops@credit-suisse.com. 
The Borrower agrees that the Administrative Agent may make such
materials, as well as any other written information, documents, instruments and
other materials relating to the Borrower, any of its Subsidiaries or any other
materials or matters relating to this Agreement, the Notes or any of the
transactions contemplated hereby (collectively, the “Communications”)
available to the Lenders by posting such materials on Intralinks or a
substantially similar electronic system (the “Platform”).  The Borrower acknowledges that (i) the
distribution of material through an electronic medium is not necessarily secure
and that there are confidentiality and other risks associated with such
distribution, (ii) the Platform is provided “as is” and “as available” and
(iii) neither the Administrative Agent nor any of its Affiliates warrants
the accuracy, adequacy or completeness of the Communications or the Platform
and each expressly disclaims liability for errors or omissions in the
Communications or the Platform.  No
warranty of any kind, express, implied or statutory, including, without
limitation, any warranty of merchantability, fitness for a particular purpose,
non-infringement of third party rights or freedom from viruses or other code
defects, is made by the Administrative Agent or any of its Affiliates in
connection with the Platform.

 

65

 

Each Lender agrees that
notice to it (as provided in the next sentence) (a “Notice”)
specifying that any Communications have been posted to the Platform shall
constitute effective delivery of such information, documents or other materials
to such Lender for purposes of this Agreement; provided
that if requested by any Lender, the Administrative Agent shall deliver a copy
of the Communications to such Lender by email or telecopier.  Each Lender agrees (i) to notify the
Administrative Agent in writing of such Lender’s e-mail address to which a
Notice may be sent by electronic transmission (including by electronic
communication) on or before the date such Lender becomes a party to this
Agreement (and from time to time thereafter to ensure that the Administrative
Agent has on record an effective e-mail address for such Lender) and (ii) that
any Notice may be sent to such e-mail address.

 

Section 13.02.  Change of Address.  The Borrower, the Administrative
Agent and any Lender may each change the address for service of notice upon it
by a notice in writing to the other parties hereto.

 

ARTICLE 14

COUNTERPARTS

 

This Agreement may be
executed in any number of counterparts, all of which taken together shall
constitute one agreement, and any of the parties hereto may execute this
Agreement by signing any such counterpart. 
This Agreement shall be effective when it has been executed by the
Borrower, the Administrative Agent and the Lenders and each party has notified
the Administrative Agent by facsimile transmission or telephone that it has
taken such action and the other conditions precedent in Section 4.01 have
been satisfied.

 

ARTICLE 15

CHOICE OF LAW; CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL

 

Section 15.01.  CHOICE OF LAW.  THE LOAN DOCUMENTS (OTHER THAN
THOSE CONTAINING A CONTRARY EXPRESS CHOICE OF LAW PROVISION) SHALL BE CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK; provided,
however, that the interpretation of the definitions of “Borrower Material
Adverse Change” and “Company Material Adverse Change” for purposes of the Loan
Documents shall be governed by, and construed in accordance with, the laws of
the State of Delaware, regardless of the laws that might otherwise govern under
applicable principles of conflicts of laws.

 

Section 15.02.  CONSENT TO JURISDICTION.  THE BORROWER HEREBY IRREVOCABLY
SUBMITS TO THE EXCLUSIVE JURISDICTION OF ANY UNITED STATES FEDERAL OR NEW YORK
STATE COURT SITTING IN NEW YORK, NEW YORK IN ANY ACTION OR PROCEEDING ARISING
OUT OF OR RELATING TO ANY LOAN DOCUMENTS AND THE BORROWER HEREBY (TO THE
FULLEST EXTENT PERMITTED BY LAW) IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT
OF

 

66

 

SUCH ACTION OR PROCEEDING
MAY BE HEARD AND DETERMINED IN ANY SUCH COURT AND IRREVOCABLY WAIVES ANY
OBJECTION IT MAY NOW OR HEREAFTER HAVE AS TO THE VENUE OF ANY SUCH SUIT,
ACTION OR PROCEEDING BROUGHT IN SUCH A COURT OR THAT SUCH COURT IS AN
INCONVENIENT FORUM.  NOTHING HEREIN SHALL
LIMIT THE RIGHT OF THE ADMINISTRATIVE AGENT OR ANY LENDER TO BRING PROCEEDINGS
AGAINST THE BORROWER IN THE COURTS OF ANY OTHER JURISDICTION.  ANY JUDICIAL PROCEEDING BY THE BORROWER
AGAINST THE ADMINISTRATIVE AGENT OR ANY LENDER OR ANY AFFILIATE OF THE
ADMINISTRATIVE AGENT OR ANY LENDER INVOLVING, DIRECTLY OR INDIRECTLY, ANY
MATTER IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH ANY LOAN
DOCUMENT SHALL BE BROUGHT ONLY IN A COURT IN NEW YORK, NEW YORK.

 

Section 15.03.  WAIVER OF JURY TRIAL.  THE BORROWER, THE ADMINISTRATIVE
AGENT AND EACH LENDER HEREBY WAIVE TRIAL BY JURY IN ANY JUDICIAL PROCEEDING
INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER (WHETHER SOUNDING IN TORT,
CONTRACT OR OTHERWISE) IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH
ANY LOAN DOCUMENT OR THE RELATIONSHIP ESTABLISHED THEREUNDER.

 

67

 

IN WITNESS WHEREOF, the
Borrower, the Lenders and the Administrative Agent have executed this Agreement
as of the date first above written.

 

	
   

  	
  AON CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Christa Davies

  
	
   

  	
   

  	
  Name:

  	
  Christa Davies

  
	
   

  	
   

  	
  Title:

  	
  CFO

  
	
   

  	
   

  
	
   

  	
  Aon Center

  
	
   

  	
  200 East Randolph Drive

  
	
   

  	
  Chicago, Il 60601

  
	
   

  	
  Attn:

  	
  Paul Hagy

  
	
   

  	
   

  	
   

  
	
   

  	
  Tel:

  	
  312-381-3230

  
	
   

  	
  Fax:

  	
  312-381-3230

  
					

 

 

	
   

  	
  CREDIT SUISSE AG, Cayman
  Islands Branch

  
	
   

  	
  as Lender and as
  Administrative Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Shaheen Malik

  
	
   

  	
   

  	
  Name:

  	
  Shaheen Malik

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kevin Buddhdew

  
	
   

  	
   

  	
  Name:

  	
  Kevin Buddhdew

  
	
   

  	
   

  	
  Title:

  	
  Associate

  
	
   

  	
   

  
	
   

  	
  Agency Manager

  
	
   

  	
  One Madison Avenue

  
	
   

  	
  New York, NY 10010

  
	
   

  	
  Attn.:

  	
  Sean Portrait

  
	
   

  	
   

  	
   

  
	
   

  	
  Fax:

  	
  212-322-2291

  
	
   

  	
  Email:

  	
  agency.loanops@credit-suisse.com

  
					

 

 

	
   

  	
  Morgan Stanley Bank, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Subhalakshmi
  Ghosh-Kohli

  
	
   

  	
   

  	
  Name:

  	
  Subhalakshmi Ghosh-Kohli

  
	
   

  	
   

  	
  Title:

  	
  Authorized Signatory

  

 

 

	
   

  	
  Bank of America, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Scott W. Reynolds

  
	
   

  	
   

  	
  Name:

  	
  Scott W. Reynolds

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  

 

 

	
   

  	
  Deutsche Bank AG New York
  Branch

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John S. McGill

  
	
   

  	
   

  	
  Name:

  	
  John S. McGill

  
	
   

  	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert Chesley

  
	
   

  	
   

  	
  Name:

  	
  Robert Chesley

  
	
   

  	
   

  	
  Title:

  	
  Director

  

 

 

	
   

  	
  THE ROYAL BANK OF
  SCOTLAND PLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Joseph Lux

  
	
   

  	
   

  	
  Name:

  	
  Joseph Lux

  
	
   

  	
   

  	
  Title:

  	
  Managing Director

  

 

 

	
   

  	
  METROPOLITAN LIFE
  INSURANCE COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  METLIFE INSURANCE COMPANY
  OF CONNECTICUT

  
	
   

  	
   

  
	
   

  	
  by Metropolitan Life
  Insurance Company, its Investment Manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Judith A. Gulotta

  
	
   

  	
   

  	
  Name:

  	
  Judith A. Gulotta

  
	
   

  	
   

  	
  Title:

  	
  Managing Director

  

 

 

	
   

  	
  Australia and New Zealand
  Banking Group Limited

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John W. Wade

  
	
   

  	
   

  	
  Name:

  	
  John W. Wade

  
	
   

  	
   

  	
  Title:

  	
  Deputy General Manager

  
	
   

  	
   

  	
   

  	
  Head of Operations and
  Infrastructure

  

 

 

	
   

  	
  The Northern Trust
  Company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Chris McKean

  
	
   

  	
   

  	
  Name:

  	
  Chris McKean

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  

 

 

	
   

  	
  UBS LOAN FINANCE LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mary E. Evans

  
	
   

  	
   

  	
  Name:

  	
  Mary E. Evans

  
	
   

  	
   

  	
  Title:

  	
  Associate Director

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  April Varner-Nanton

  
	
   

  	
   

  	
  Name:

  	
  April Varner-Nanton

  
	
   

  	
   

  	
  Title:

  	
  Director

  

 

 

	
   

  	
  Wells Fargo Bank,
  National Association

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Casey Connelly

  
	
   

  	
   

  	
  Name:

  	
  Casey Connelly

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  

 

 

	
   

  	
  BNP PARIBAS

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Joseph M. Malley

  
	
   

  	
   

  	
  Name:

  	
  Joseph M. Malley

  
	
   

  	
   

  	
  Title:

  	
  Managing Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BNP PARIBAS

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Scott Tricarico

  
	
   

  	
   

  	
  Name:

  	
  Scott Tricarico

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  

 

 

	
   

  	
  Bank of Montreal

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Scott Morris

  
	
   

  	
   

  	
  Name:

  	
  Scott Morris

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  

 

 

	
   

  	
  The Bank of
  Tokyo-Mitsubishi UFJ, Ltd.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Oscar D. Cortez

  
	
   

  	
   

  	
  Name:

  	
  Oscar D. Cortez

  
	
   

  	
   

  	
  Title:

  	
  Authorized Signatory

  

 

 

	
   

  	
  COMMERZBANK AG, New York
  and Grand Cayman Branches

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michele
  Woessner-Larkin

  
	
   

  	
   

  	
  Name:

  	
  Michele Woessner-Larkin

  
	
   

  	
   

  	
  Title:

  	
  Assistant Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael P. McCarthy

  
	
   

  	
   

  	
  Name:

  	
  Michael P. McCarthy

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  

 

 

	
   

  	
  Fifth Third Bank

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kim Puszczewicz

  
	
   

  	
   

  	
  Name:

  	
  Kim Puszczewicz

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  

 

 

	
   

  	
  ING Bank N.V.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Marc J.J. van der
  Hooft

  
	
   

  	
   

  	
  Name: 

  	
  Marc J.J. van der Hooft

  
	
   

  	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Marcin Lenart

  
	
   

  	
   

  	
  Name: 

  	
  Marcin Lenart

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  

 

 

	
   

  	
  KeyBank National
  Association

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mary K. Young

  
	
   

  	
   

  	
  Name: 

  	
  Mary K. Young

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  

 

 

	
   

  	
  LLOYDS TSB BANK PLC, as
  Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Rich Herder

  
	
   

  	
   

  	
  Name: 

  	
  Rich Herder

  
	
   

  	
   

  	
  Title:

  	
  Managing Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Candi Obrentz

  
	
   

  	
   

  	
  Name: 

  	
  Candi Obrentz

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  

 

 

	
   

  	
  Mizuho Corporate Bank
  (USA)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David Lim

  
	
   

  	
   

  	
  Name:

  	
  David Lim

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  

 

 

	
   

  	
  PNC BANK NATIONAL
  ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Daniel R. Raynor

  
	
   

  	
   

  	
  Name:

  	
  Daniel R. Raynor

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  

 

 

	
   

  	
  Sumitomo Mitsui Banking
  Corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William M. Ginn

  
	
   

  	
   

  	
  Name:

  	
  William M. Ginn

  
	
   

  	
   

  	
  Title:

  	
  Executive Officer

  

 

 

	
   

  	
  U.S. Bank National
  Association

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Evan Glass

  
	
   

  	
   

  	
  Name:

  	
  Evan Glass

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  

 

 

	
   

  	
  Scotiabanc Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ J.F. Todd

  
	
   

  	
   

  	
  Name:

  	
  J.F. Todd

  
	
   

  	
   

  	
  Title:

  	
  Managing Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ H. Thind

  
	
   

  	
   

  	
  Name:

  	
  J.F. Todd

  
	
   

  	
   

  	
  Title:

  	
  Director

  

 

 

	
   

  	
  State Street Bank and
  Trust Company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Deirdre M. Holland

  
	
   

  	
   

  	
  Name:

  	
  Deirdre M. Holland

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  

 

 

	
   

  	
  Royal Bank of Canada

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Tim Stephens

  
	
   

  	
   

  	
  Name:

  	
  Tim Stephens

  
	
   

  	
   

  	
  Title:

  	
  Authorized Signatory

  

 

 

	
   

  	
  RBC Bank (USA)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard Marshall

  
	
   

  	
   

  	
  Name:

  	
  Richard Marshall

  
	
   

  	
   

  	
  Title:

  	
  Market Executive –
  National Division

  

 

 

	
   

  	
  Associated Bank, National
  Association

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Peter J. Bulandr

  
	
   

  	
   

  	
  Name:

  	
  Peter J. Bulandr

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Liliana Huerta

  
	
   

  	
   

  	
  Name:

  	
  Liliana Huerta

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  

 

 

Pricing Schedule

 

	
   

  	
   

  	
  Level I

  	
   

  	
  Level
  II

  	
   

  	
  Level
  III

  	
   

  	
  Level
  IV

  	
   

  	
  Level V

  	
   

  
	
  Borrower Debt Rating(1)

  	
   

  	
  At least A- by S&P or
  A3 by Moody’s

  	
   

  	
  At least BBB+ by S&P
  or Baa1 by Moody’s

  	
   

  	
  At least BBB by S&P
  or Baa2 by Moody’s

  	
   

  	
  At least BBB- by S&P
  or Baa3 by Moody’s

  	
   

  	
  None of Levels
  I, II, III or IV is applicable

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Applicable Margin for
  Eurodollar Advances (bps)

  	
   

  	
  200.0

  	
   

  	
  250.0

  	
   

  	
  300.0

  	
   

  	
  350.0

  	
   

  	
  400.0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Applicable Margin for
  Alternate Base Rate Advances (bps)

  	
   

  	
  100.0

  	
   

  	
  150.0

  	
   

  	
  200.0

  	
   

  	
  250.0

  	
   

  	
  300.0

  	
   

  

 

The Applicable Margin shall
be determined in accordance with the foregoing table based on the Borrower Debt
Ratings from time to time.  The Borrower
Debt Rating in effect on any date for the purposes of this Schedule is that in
effect at the close of business on such date. 
If at any time there is no Borrower Debt Rating from Moody’s or S&P,
Level V shall apply.

 

(1)  In the event of a
split rating, the applicable rating shall be deemed to be higher of the two
ratings; provided, if the difference between the
two ratings is greater than one sub-grade, the applicable rating shall be
deemed to be one sub-grade below the higher of the two ratings.

 

 

SCHEDULE 1.01

 

Commitments

 

	
  Lender

  	
   

  	
  Commitment

  	
   

  
	
  1 Credit Suisse AG,
  Cayman Islands Branch

  	
   

  	
  65,000,000.00

  	
   

  
	
  2 Morgan Stanley Bank,
  N.A.

  	
   

  	
  65,000,000.00

  	
   

  
	
  3 Bank of America, N.A.

  	
   

  	
  55,000,000.00

  	
   

  
	
  4 Deutsche Bank AG New
  York Branch

  	
   

  	
  55,000,000.00

  	
   

  
	
  5 The Royal Bank of
  Scotland plc

  	
   

  	
  55,000,000.00

  	
   

  
	
  6 Metropolitan Life
  Insurance Company

  	
   

  	
  45,000,000.00

  	
   

  
	
  7 Australia and New
  Zealand Banking Group Limited

  	
   

  	
  40,000,000.00

  	
   

  
	
  8 The Northern Trust
  Company

  	
   

  	
  40,000,000.00

  	
   

  
	
  9 UBS Loan Finance LLC

  	
   

  	
  40,000,000.00

  	
   

  
	
  10 Wells Fargo Bank,
  National Association

  	
   

  	
  40,000,000.00

  	
   

  
	
  11 BNP Paribas

  	
   

  	
  40,000,000.00

  	
   

  
	
  12 Bank of Montreal

  	
   

  	
  32,500,000.00

  	
   

  
	
  13 The Bank of
  Tokyo-Mitsubishi UFJ, Ltd.

  	
   

  	
  32,500,000.00

  	
   

  
	
  14 Commerzbank AG, New
  York and Grand Cayman Branches

  	
   

  	
  32,500,000.00

  	
   

  
	
  15 Fifth Third Bank

  	
   

  	
  32,500,000.00

  	
   

  
	
  16 ING Bank N.V.

  	
   

  	
  32,500,000.00

  	
   

  
	
  17 KeyBank National
  Association

  	
   

  	
  32,500,000.00

  	
   

  
	
  18 Lloyds TSB Bank plc

  	
   

  	
  32,500,000.00

  	
   

  
	
  19 Mizuho Corporate Bank
  (USA)

  	
   

  	
  32,500,000.00

  	
   

  
	
  20 PNC Bank National
  Association

  	
   

  	
  32,500,000.00

  	
   

  
	
  21 Sumitomo Mitsui
  Banking Corporation

  	
   

  	
  32,500,000.00

  	
   

  
	
  22 U.S. Bank National
  Association

  	
   

  	
  32,500,000.00

  	
   

  
	
  23 Scotiabanc Inc.

  	
   

  	
  21,250,000.00

  	
   

  
	
  24 State Street Bank and
  Trust Company

  	
   

  	
  21,250,000.00

  	
   

  
	
  25 Royal Bank of Canada

  	
   

  	
  20,000,000.00

  	
   

  
	
  26 RBC Bank (USA)

  	
   

  	
  20,000,000.00

  	
   

  
	
  27 Associated Bank,
  National Association

  	
   

  	
  10,000,000.00

  	
   

  
	
  28
  MetLife Insurance Company of Connecticut

  	
   

  	
  10,000,000.00

  	
   

  
	
  TOTAL

  	
   

  	
  1,000,000,000.00

  	
   

  

 

 

SCHEDULE 4.02(g)

 

Continuing Debt
Instruments

 

1.     The Existing Credit Agreement in an aggregate
committed amount up to $400,000,000.

 

2.     The Euro Facility in an aggregate committed amount up
to €850,000,000.

 

3.     7.375% Senior Notes due 2012 issued by Aon
Corporation, in an aggregate principal amount of up to $225,000,000.

 

4.     5.05% Senior Unsecured Debentures due 2011 issued by
Aon Finance N.S. 1, ULC and guaranteed by Aon Corporation, in an aggregate
principal amount of up to $375,000,000.

 

5.     8.205% Junior Subordinated Deferrable Interest
Debentures Due January 2027 issued by Aon Corporation, in an aggregate
principal amount of up to $686,995,000.

 

6.     6.25% Guaranteed Notes due July 2014 issued by
Aon Financial Services Luxembourg S.A. and guaranteed by Aon Corporation, in an
aggregate principal amount of up to €500,000,000.

 

7.     Class A1 Senior Floating Rate Notes due 2011
issued by Private Equity Partnership Structures I LLC (PEPS), in an aggregate
principal amount of up to $47,000,000.

 

8.     Loan Agreement, dated as of June 2009, among
Accuracy SAS and BNP Paribas, as lender, in an aggregate principal amount of up
to €1,500,000.

 

9.     Credit Agreement, dated as of October 9, 2009,
among Hewitt Associates L.L.C., as borrower, Hewitt Associates, Inc., as a
guarantor, the lenders from time to time party thereto and JPMorgan Chase Bank,
N.A., as administrative agent, providing for a $250,000,000 revolving loan
facility.

 

10.   Loan Agreement, dated as of August 8, 2008, among
Hewitt Associates L.L.C., as borrower, Hewitt Associates, Inc., as a
guarantor, the lenders from time to time party thereto and JPMorgan Chase Bank,
N.A., as administrative agent, in an aggregate principal amount of up to
$270,000,000.

 

11.   Term Loan Credit Facility Agreement, dated as of
March 2008, among Hewitt Bacon & Woodrow Limited, as borrower, Hewitt
Associates, Inc., as guarantor, and Barclays Bank plc, as lender, in an
aggregate principal amount of up to £23,750,000.

 

12.   8.08% Senior Notes, Series A, Tranche 2 due
March 30, 2012 issued by Hewitt Associates L.L.C., in an aggregate
principal amount of up to $14,000,000.

 

1

 

13.   7.90% Senior Notes, Series E, due
October 15, 2010 issued by Hewitt Associates L.L.C., in an aggregate
principal amount of up to $15,000,000.

 

14.   6.57% Series F Senior Notes due August 21,
2015 issued by Hewitt Associates L.L.C. and guarantied by Hewitt
Associates, Inc., in an aggregate principal amount of up to $175,000,000.

 

15.   6.98% Series G Senior Notes due
August 21, 2018 issued by Hewitt Associates L.L.C. and guarantied by
Hewitt Associates, Inc., in an aggregate principal amount of up to
$55,000,000.

 

2

 

SCHEDULE 5.21

 

Foreign Corrupt
Practices Act Matters

 

As disclosed in the
Borrower’s periodic filings with the Securities and Exchange Commission (“SEC”),
following inquiries from regulators, Borrower commenced an internal review of
its compliance with certain U.S. and non-U.S. anti-corruption laws, including
the Foreign Corrupt Practices Act. In January 2009, Aon Limited, Borrower’s
principal U.K. brokerage subsidiary, entered into a settlement agreement with
the FSA to pay a £5.25 million fine arising from its failure to exercise
reasonable care to establish and maintain effective systems and controls to
counter the risks of bribery arising from the use of overseas firms and
individuals who helped it win business. The SEC and the Department of Justice (“DOJ”)
continue to investigate these matters. Borrower is fully cooperating with these
investigations and has agreed with the U.S. agencies to toll any applicable
statute of limitations pending completion of the investigations. Based on
current information, Borrower is unable to predict at this time when the SEC
and DOJ matters will be concluded, or what regulatory or other outcomes may
result.

 

 

EXHIBIT A

 

NOTE

 

	
  [$          ]

  	
   

  	
  [Date]

  

 

Aon Corporation, a Delaware corporation (the “Borrower”), promises to pay to the
order of
                            (the
“Lender”) the aggregate unpaid
principal amount of all Loans made by the Lender to the Borrower pursuant to
Article 2 of the Agreement (as hereinafter defined), in immediately
available funds at the main office of Credit Suisse AG in New York, New York,
as Administrative Agent, together with interest on the unpaid principal amount
hereof at the rates and on the dates set forth in the Agreement.  The Borrower shall pay the principal of and
accrued and unpaid interest on the Loans in full on the Maturity Date and shall
make such mandatory payments as are required to be made under the terms of
Article 2 of the Agreement.

 

The Lender shall, and is hereby authorized to, record
on the schedule attached hereto, or to otherwise record in accordance with its
usual practice, the date and amount of each Loan and the date and amount of each
principal payment hereunder.

 

This Note is one of the Notes issued pursuant to, and
is entitled to the benefits of, the Three-Year Term Credit Agreement dated as
of [        ], 2010 (which, as it may
be amended, amended and restated, supplemented or otherwise modified and in
effect from time to time, is herein called the “Agreement”),
among the Borrower, the lenders party thereto, including the Lender, and Credit
Suisse AG, as Administrative Agent, to which Agreement reference is hereby made
for a statement of the terms and conditions governing this Note, including the
terms and conditions under which this Note may be prepaid or its maturity date
accelerated.  Capitalized terms used
herein and not otherwise defined herein are used with the meanings attributed
to them in the Agreement.

 

	
   

  	
  AON CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Print Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
				

 

 

SCHEDULE
OF LOANS AND PAYMENTS OF PRINCIPAL

TO

NOTE OF AON CORPORATION,

 

DATED
                ,

 

	
  Date

  	
   

  	
  Amount of Advance

  	
   

  	
  Amount of Principal

  Paid or Prepaid

  	
   

  	
  Unpaid Principal

  Balance

  	
   

  	
  Notation Made By

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

2

 

EXHIBIT B

 

COMPLIANCE
CERTIFICATE

 

To: The
Lenders parties to the Credit Agreement Described Below

 

This
Compliance Certificate is furnished pursuant to that certain Three-Year Term
Credit Agreement dated as of [], 2010 (as amended, modified, renewed or extended
from time to time, the “Agreement”) among the Borrower, the lenders party
thereto and Credit Suisse AG, as Administrative Agent for the Lenders.  Unless otherwise defined herein, capitalized
terms used in this Compliance Certificate have the meanings ascribed thereto in
the Agreement.

 

THE
UNDERSIGNED HEREBY CERTIFIES THAT:

 

1.     I am the duly elected
[            ] of
the Borrower;

 

2.     I have reviewed the terms of the Agreement
and I have made, or have caused to be made under my supervision, a detailed
review of the transactions and conditions of the Borrower and its Subsidiaries
during the accounting period covered by the attached financial statements;

 

3.     The examinations described in paragraph 2
did not disclose, and I have no knowledge of, the existence of any condition or
event which constitutes a Default or Unmatured Default during or at the end of
the accounting period covered by the attached financial statements or as of the
date of this Compliance Certificate, except as set forth below; and

 

4.     Schedule I attached hereto sets forth
financial data and computations evidencing the Borrower’s compliance with
certain covenants of the Agreement, all of which data and computations are
true, complete and correct.

 

Described
below are the exceptions, if any, to paragraph 3 by listing, in detail, the
nature of the condition or event, the period during which it has existed and
the action which the Borrower has taken, is taking, or proposes to take with
respect to each such condition or event:

 

The foregoing
certifications, together with the computations set forth in Schedule I hereto
and the financial statements delivered with this Compliance Certificate in
support hereof, are made and delivered this day of
                              ,
20      .

 

 

SCHEDULE
I TO COMPLIANCE CERTIFICATE

 

Schedule of
Compliance as of
                                ,
20       with Provisions of Section 6.17 of
the Agreement

 

1.              Section 6.17(a) -
Consolidated Adjusted EBITDA to Consolidated Interest Expense

 

	
  A.

  	
  Consolidated
  Adjusted EBITDA (for four fiscal quarters ended
                            , 20    
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (i)

  	
  Consolidated
  Net Income

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (ii)

  	
  Consolidated
  Interest Expense

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (iii)

  	
  taxes

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (iv)

  	
  depreciation

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (v)

  	
  amortization

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (vi)

  	
  extraordinary
  losses

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (vii)

  	
  Transaction
  Costs

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (viii)

  	
  non-recurring
  Merger-related cash charges

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (ix)

  	
  extraordinary
  gains

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (x)

  	
  Sum of
  (i) through (viii) minus (ix)

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  B.

  	
  Consolidated
  Interest Expense (for four fiscal quarters ended
                            , 20    
  )   $                          

  
	
   

  	
   

  	
   

  
	
  C.

  	
  Ratio of A
  to B to 1.0

  	
   

  
	
   

  	
   

  	
   

  
	
  D.

  	
  Permitted
  Ratio Greater than 4.0 to 1.0 Complies / Does Not Comply

  	
   

  

 

2.              Section 6.17(b) -
Consolidated Leverage Ratio

 

	
  A.

  	
  Consolidated
  Funded Debt (as of
                            ,
  20     ) $

  
	
   

  	
   

  
	
  B.

  	
  Consolidated
  Adjusted EBITDA (for four fiscal quarters ended
                            , 20    
  )

  

 

	
   

  	
  (i)

  	
  Consolidated
  Net Income

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (ii)

  	
  Consolidated
  Interest Expense

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (iii)

  	
  taxes

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (iv)

  	
  depreciation

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (v)

  	
  amortization

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (vi)

  	
  extraordinary
  losses

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (vii)

  	
  Transaction
  Costs

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (viii)

  	
  non-recurring
  Merger-related cash charges

  	
   

  	
  $

  

 

2

 

	
   

  	
  (ix)

  	
  extraordinary
  gains

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (x)

  	
  Sum of
  (i) through (viii) minus (ix)

  	
   

  	
  $

  

 

C.    Ratio of A to B to 1.0

 

D.    Permitted Ratio Less than 3.0 to 1.0
Complies / Does Not Comply

 

3

 

EXHIBIT C

 

ASSIGNMENT AND ASSUMPTION AGREEMENT

 

This
Assignment and Assumption Agreement (the “Assignment”) is dated as of
the Effective Date set forth below and is entered into by and between [Insert name of Assignor] (the “Assignor”)
and [Insert name of Assignee] (the
“Assignee”).  Capitalized terms
used but not defined herein shall have the meanings given to them in the Credit
Agreement identified below (as amended, the “Credit Agreement”), receipt
of a copy of which is hereby acknowledged by the Assignee.  The Standard Terms and Conditions set forth
in Annex 1 attached hereto are hereby agreed to and incorporated herein by
reference and made a part of this Assignment as if set forth herein in full.

 

For an
agreed consideration, the Assignor hereby irrevocably sells and assigns to the
Assignee, and the Assignee hereby irrevocably purchases and assumes from the
Assignor, subject to and in accordance with the Standard Terms and Conditions
and the Credit Agreement, as of the Effective Date inserted by Administrative Agent
as contemplated below, the interest in and to all of the Assignor’s rights and
obligations under the Credit Agreement and any other documents or instruments
delivered pursuant thereto that represents the amount and percentage interest
identified below of all of the Assignor’s outstanding rights and obligations
under the respective facilities identified below (including, to the extent
included in any such facilities, letters of credit and swingline loans) (the “Assigned
Interest”).  Such sale and assignment
is without recourse to the Assignor and, except as expressly provided in this
Assignment, without representation or warranty by the Assignor.

 

	
  1.

  	
   

  	
  Assignor:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Assignee:

  	
   

  	
                                                            [and
  is an Affiliate/Approved Fund(2)]

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Borrower:

  	
   

  	
  Aon
  Corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Administrative
  Agent:

  	
   

  	
  Credit
  Suisse AG, acting through its Cayman Islands Branch, as Administrative Agent
  under the Credit Agreement

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Credit
  Agreement

  	
   

  	
  The
  $1,000,000,000 Three-Year Term Credit Agreement dated as of
                        ,
  2010 among Aon Corporation, the Lenders parties thereto, Credit Suisse AG, acting
  through its Cayman Islands Branch, as Administrative Agent, and the other
  agents parties thereto.

  

 

(2)           Select as applicable.

 

1

 

	
  6.

  	
   

  	
  Assigned
  Interest:

  	
   

  	
   

  

 

	
  Aggregate Amount of

  Commitment/Loans for all

  Lenders(3)

  	
   

  	
  Amount
  of

  Commitment/Loans

  Assigned

  	
   

  	
  Percentage
  Assigned of

  Commitment/Loans(14)

  	
   

  	
  CUSIP
  Number

  	
   

  
	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
   

  	
  %

  	
   

  	
   

  
	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
   

  	
  %

  	
   

  	
   

  
	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
   

  	
  %

  	
   

  	
   

  

 

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

 

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

 

	
   

  	
  ASSIGNOR

  
	
   

  	
  [NAME OF
  ASSIGNOR]

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  ASSIGNEE

  
	
   

  	
  [NAME OF
  ASSIGNEE]

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Title:

  

 

 

Consented to and Accepted:

 

CREDIT SUISSE AG,

acting through its Cayman
Islands Branch,

as Administrative Agent

 

	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  

 

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

 

2

 

[Consented to:]

AON CORPORATION

 

	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  

 

3

 

ANNEX 1

 

AON CORPORATION

 

$                                
CREDIT AGREEMENT

 

STANDARD TERMS AND
CONDITIONS FOR ASSIGNMENT

AND ASSUMPTION
AGREEMENT

 

1.             Representations and Warranties.

 

1.1           Assignor.  The Assignor (a) represents and warrants
that (i) it is the legal and beneficial owner of the Assigned Interest,
(ii) the Assigned Interest is free and clear of any lien, encumbrance or
other adverse claim and (iii) it has full power and authority, and has taken
all action necessary, to execute and deliver this Assignment and to consummate
the transactions contemplated hereby; and (b) assumes no responsibility
with respect to (i) any statements, warranties or representations made in
or in connection with any Loan Document, (ii) the execution, legality,
validity, enforceability, genuineness, sufficiency or value of the Credit
Agreement or any other instrument or document delivered pursuant thereto, other
than this Assignment (herein collectively the “Loan Documents”), or any
collateral thereunder, (iii) the financial condition of Company, any of
its Subsidiaries or Affiliates or any other Person obligated in respect of any
Loan Document or (iv) the performance or observance by Company, any of its
Subsidiaries or Affiliates or any other Person of any of their respective
obligations under any Loan Document.

 

1.2           Assignee.  The Assignee (a) represents and warrants
that (i) it has full power and authority, and has taken all action
necessary, to execute and deliver this Assignment and to consummate the
transactions contemplated hereby and to become a Lender under the Credit
Agreement, (ii) it meets all requirements if any, under the Credit
Agreement that are required to be satisfied by it in order to acquire the Assigned
Interest and become a Lender, (iii) from and after the Effective Date, it
shall be bound by the provisions of the Credit Agreement and, to the extent of
the Assigned Interest, shall have the obligations of a Lender thereunder,
(iv) it has received a copy of the Credit Agreement, together with copies
of the most recent financial statements delivered pursuant to Section 6.1
thereof, as applicable, and such other documents and information as it has
deemed appropriate to make its own credit analysis and decision to enter into
this Assignment and to purchase the Assigned Interest on the basis of which it
has made such analysis and decision, and (v) if it is a Non-US Lender,
attached to the Assignment is any documentation required to be delivered by it pursuant
to the terms of the Credit Agreement, duly completed and executed by the
Assignee; and (b) agrees that (i) it will, independently and without
reliance on Administrative Agent, the Assignor or any other Lender, and based
on such documents and information as it shall deem appropriate at the time,
continue to make its own credit decisions in taking or not taking action under
the Loan Documents, and (ii) it will perform in accordance with their
terms all of the obligations which by the terms of the Loan Documents are
required to be performed by it as a Lender.

 

4

 

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

 

3.             General Provisions.  This Assignment shall be binding upon, and
inure to the benefit of, the parties hereto and their respective successors and
assigns.  This Assignment may be executed
in any number of counterparts, which together shall constitute one
instrument.  Delivery of an executed counterpart
of a signature page of this Assignment by telecopy shall be effective as
delivery of a manually executed counterpart of this Assignment.  THIS AGREEMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH LAWS OF THE STATE OF NEW YORK.

 

5

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