Document:

Filed by Bowne Pure Compliance

 

Exhibit 4.15

FACILITY AGREEMENT

Dated:                 November 2007

BETWEEN:

	(1)	 	the various companies listed at Schedule 2 Part I (together the “A Borrowers”) and the
various companies listed at Schedule 2 Part II (together the “B Borrowers” and together with
the A Borrowers and any Additional Borrowers, the “Borrowers”);
	 
	(2)	 	the banks listed in Schedule 1, each acting through its office at the address indicated
against its name in Schedule 1 (together the “Lenders” and each a “Lender”);
	 
	(3)	 	NORDEA BANK FINLAND PLC, New York Branch, acting as agent (in that capacity the “Agent”);
	 
	(4)	 	NORDEA BANK NORGE ASA, Grand Cayman Branch, CITIGROUP GLOBAL MARKETS LIMITED, ING BANK N.V.,
London Branch, HSH NORDBANK AG, DANSKE BANK A/S and BNP PARIBAS, acting as mandated lead
arrangers (in that capacity each an “MLA” and together the “MLAs”);
	 
	(5)	 	NORDEA BANK NORGE ASA, Grand Cayman Branch, CITIGROUP GLOBAL MARKETS LIMITED and ING BANK
N.V., London Branch acting as bookrunners (in that capacity each a “Bookrunner” and together
the “Bookrunners”);
	 
	(6)	 	NORDEA BANK FINLAND PLC, New York Branch, acting as security trustee (in that capacity the
“Security Trustee”); and
	 
	(7)	 	HSH NORDBANK AG acting as swap provider (in that capacity the “Swap Provider”)

WHEREAS:

Each of the Lenders has agreed to advance to the A Borrowers (on a joint and several basis in
respect of Tranche A) and the B Borrowers (on a joint and several basis in respect of Tranche B)
its Commitment (aggregating, with all the other Commitments, a revolving credit facility of up to
eight hundred and forty five million Dollars ($845,000,000) as increased from time to time pursuant
to the provisions of Clause 2.1.2), Tranche A to be made available to the A Borrowers and Tranche B
to be made available to the B Borrowers for (i) refinancing certain existing indebtedness of the
Guarantor B Group, (ii) financing the purchase of vessels and (iii) the general

 

 

corporate purposes of the Borrowers (including but not limited to the making of intercompany loans
to other members of either Group).

IT IS AGREED as follows:

	1	 	Definitions and Interpretation

	 	1.1	 	In this Agreement:
	 
	 	 	 	“A Borrowers” means those companies listed in Schedule 2 Part I and, with effect
from a Collateral Transfer Date, any relevant Collateral Transfer Borrower(s).
	 
	 	 	 	“Administration” has the meaning given to it in paragraph 1.1.3 of the ISM Code.
	 
	 	 	 	“Additional A Borrower” means an Additional Borrower that owns a Tranche A Vessel.
	 
	 	 	 	“Additional B Borrower” means an Additional Borrower that owns a Tranche B Vessel.
	 
	 	 	 	“Additional Borrower” means any member of a Group that purchases an Additional
Vessel.
	 
	 	 	 	“Additional Vessels” means any delivered vessels of a type, value and age acceptable
to the Majority Lenders to be purchased by a member of the relevant Group (which
will become an Additional A Borrower or an Additional B Borrower, as the case may
be) in respect of which an Upsize Amount is requested by the Borrowers, each of
which shall be designated a Tranche A Vessel or a Tranche B Vessel with effect from
the relevant Upsize Trigger Date.
	 
	 	 	 	“Affiliate” means, in relation to any entity, a Subsidiary of that entity, a Holding
Company of that entity or any other Subsidiary of that Holding Company.
	 
	 	 	 	“Approved Brokers” means H. Clarkson & Co. Ltd, Simpson Spence & Young Shipbrokers
Ltd, Fearnley AS, R.S. Platou AS and P.F. Bassoe AS.

2

 

	 	 	 	“Assignments” means the deeds of assignment of Insurances, Earnings and Requisition
Compensation in respect of each of the Vessels referred to in Clause 10.1.2 (each an
“Assignment”).
	 
	 	 	 	“Authorisation” means an authorisation, consent, approval, resolution, licence,
exemption, filing, notarisation or registration.
	 
	 	 	 	“B Borrowers” means the companies listed in Schedule 2 Part II other than, with
effect from a Collateral Transfer Date, any relevant Collateral Transfer
Borrower(s).
	 
	 	 	 	“Break Costs” means all sums payable by the Borrowers from time to time under Clause
8.3.
	 
	 	 	 	“Business Day” means a day on which banks are open for business of a nature
contemplated by this Agreement (and not authorised by law to close) in New York,
London and any other financial centre which the Agent may reasonably consider
appropriate for the operation of the provisions of this Agreement.
	 
	 	 	 	“Collateral Transfer” means a transfer of that part of the Tranche B Indebtedness
relating to a specified B Borrower into Tranche A Indebtedness pursuant to Clause
2.1.1.
	 
	 	 	 	“Collateral Transfer Amount” means, in respect of any Tranche B Vessels proposed to
be redenominated as Tranche A Vessels, the Tranche B Indebtedness at the relevant
Collateral Transfer Date multiplied by the percentage shown in Schedule 2 against
such Tranche B Vessel under the heading “Relevant Share”.
	 
	 	 	 	“Collateral Transfer Borrower” means a B Borrower that has become an A Borrower
pursuant to Clause 2.1.1.
	 
	 	 	 	“Collateral Transfer Date” means in respect of each Collateral Transfer Borrower the
date on which the Agent confirms that all of the conditions set out in Part III of
Schedule 3 have been satisfied.
	 
	 	 	 	“Collateral Transfer Notice” means a notice substantially in the form of Schedule 9.

3

 

	 	 	 	“Collateral Vessels” means the Tranche A Vessels and the Tranche B Vessels (each a
“Collateral Vessel”).
	 
	 	 	 	“Commitment” means, in relation to a Lender, the aggregate amount of the Facility
which that Lender agrees to advance to the A Borrowers or the B Borrowers (as the
case may be) as its several liability as indicated against the name of that Lender
in Schedule 1 (as amended from time to time pursuant to Clause 2.1.2) and/or, where
the context permits, the amount of the Facility advanced by that Lender and
remaining outstanding and “Commitments” means more than one of them.
	 
	 	 	 	“Commitment Commission” means the commitment commission to be paid by the Borrowers
to the Agent on behalf of the Lenders pursuant to Clause 9.1.
	 
	 	 	 	“Commitment Termination Date” means the date being one (1) month before the Maturity
Date or such later date as the Lenders may in their discretion agree.
	 
	 	 	 	“Companies” means each ISM Company and each ISPS Company (each a “Company”).
	 
	 	 	 	“Credit Support Document” means any document described as such in the Master
Agreement and, where the context permits, any other document referred to in any
Credit Support Document which has the effect of creating an Encumbrance in favour of
any of the Finance Parties.
	 
	 	 	 	“Credit Support Provider” means any person (other than the A Borrowers) described as
such in the Master Agreement.
	 
	 	 	 	“Currency of Account” means, in relation to any payment to be made to a Finance
Party under a Finance Document, the currency in which that payment is required to be
made by the terms of that Finance Document.
	 
	 	 	 	“Deeds of Covenants” means the deeds of covenants referred to in Clause 10.1.1.
(each a “Deed of Covenant”).
	 
	 	 	 	“Default” means an Event of Default or any event or circumstance specified in Clause
13.1 which would (with the expiry of a grace period, the giving of notice, the
making of any determination under the Finance Documents or any combination of any of
the foregoing) be an Event of Default.

4

 

	 	 	 	“DOC” means, in relation to the ISM Company, a valid Document of Compliance issued
for the ISM Company by the Administration under paragraph 13.2 of the ISM Code.
	 
	 	 	 	“Dollars”, “US$” and “$” each means available and freely transferable and
convertible funds in lawful currency of the United States of America.
	 
	 	 	 	“Drawdown Date” means the date on which a Drawing is advanced under Clause 4.
	 
	 	 	 	“Drawdown Notice” means a notice substantially in the form set out in Schedule 5.
	 
	 	 	 	“Drawing” means any one amount advanced or to be advanced pursuant to a Drawdown
Notice or, where the context permits, the amount advanced and for the time being
outstanding and “Drawings” means more than one of them.
	 
	 	 	 	“Earnings” in relation to a Vessel means all hires, freights, pool income and other
sums payable to or for the account of its Owner in respect of that Vessel including
(without limitation) all remuneration for salvage and towage services, demurrage and
detention moneys, contributions in general average, compensation in respect of any
requisition for hire, and damages and other payments (whether awarded by any court
or arbitral tribunal or by agreement or otherwise) for breach, termination or
variation of any contract for the operation, employment or use of that Vessel.
	 
	 	 	 	“Encumbrance” means a mortgage, charge, assignment, pledge, lien, or other security
interest securing any obligation of any person or any other agreement or arrangement
having a similar effect.
	 
	 	 	 	“Environmental Affiliate” means an agent or employee of an Owner or a person in a
contractual relationship with that Owner in respect of the Vessel owned by it
(including without limitation, the operation of or the carriage of cargo of such
Vessel).
	 
	 	 	 	“Environmental Approvals” means any present or future permit, licence, approval,
ruling, variance, exemption or other authorisation required under the applicable
Environmental Laws.

5

 

	 	 	 	“Environmental Claim” means any and all enforcement, clean-up, removal,
administrative, governmental, regulatory or judicial actions, orders, demands or
investigations instituted or completed pursuant to any Environmental Laws or
Environmental Approvals together with any claims made by any third person relating
to damage, contribution, loss or injury resulting from any Environmental Incident.
	 
	 	 	 	“Environmental Incident” means:

	 	(a)	 	any release of Environmentally Sensitive Material from a
Vessel; or
	 
	 	(b)	 	any incident in which Environmentally Sensitive Material is
released from a vessel other than a Vessel and which involves a collision
between a Vessel and such other vessel or some other incident of navigation or
operation, in either case, in connection with which the relevant Vessel is
actually or potentially liable to be arrested, attached, detained or injuncted
and/or where any guarantor, any manager (or any sub-manager of such Vessel) or
any of its officers, employees or other persons retained or instructed by it
(or such sub-manager) are at fault or allegedly at fault or otherwise liable to
any legal or administrative action; or
	 
	 	(c)	 	any other incident in which Environmentally Sensitive Material
is released otherwise than from such Vessel and in connection with which that
Vessel is actually or potentially liable to be arrested and/or where any
guarantor, any manager (or any sub-manager of the relevant Vessel) or any of
its officers, employees or other persons retained or instructed by it (or such
sub-manager) are at fault or allegedly at fault or otherwise liable to any
legal or administrative action.

	 	 	 	“Environmental Laws” means all present and future laws, regulations, treaties and
conventions of any applicable jurisdiction which:

	 	(a)	 	have as a purpose or effect the protection of, and/or
prevention of harm or damage to, the environment;
	 
	 	(b)	 	relate to the carriage of Environmentally Sensitive Material or
to actual or threatened releases of Environmentally Sensitive Material;

6

 

	 	(c)	 	provide remedies or compensation for harm or damage to the
environment; or
	 
	 	(d)	 	relate to Environmentally Sensitive Materials or health or
safety matters.

	 	 	 	“Environmentally Sensitive Material” means (i) oil and oil products and (ii) any
other waste, pollutant, contaminant or other substance (including any liquid, solid,
gas, ion, living organism or noise) that may be harmful to human health or other
life or the environment or a nuisance to any person or that may make the enjoyment,
ownership or other territorial control of any affected land, property or waters more
costly for such person to a material degree.
	 
	 	 	 	“Event of Default” means any of the events or circumstances set out in Clause 13.1.
	 
	 	 	 	“Execution Date” means the date on which this Agreement is executed by each of the
parties hereto.
	 
	 	 	 	“Facility” means the reducing revolving credit facility made available by the
Lenders to the Borrowers pursuant to this Agreement.
	 
	 	 	 	“Facility Outstandings” means the total of all Drawings made at that time, to the
extent not reduced by repayments, prepayments and voluntary reductions.
	 
	 	 	 	“Facility Period” means the period beginning on the date of this Agreement and
ending on the date when the whole of the Indebtedness has been repaid in full and
the Security Parties have ceased to be under any further actual or contingent
liability to the Finance Parties under or in connection with the Finance Documents.
	 
	 	 	 	“Fee Letter” means (i) the letter dated 26 September 2007 between Guarantor B, the
Agent, the Bookrunners and the MLAs and (ii) the letter between Guarantor B and the
Agent dated 26 September 2007, setting out the fees referred to in Clause 9.
	 
	 	 	 	“Finance Documents” means this Agreement, the Master Agreement, the Security
Documents, any Fee Letter and any other document designated as such by the Agent and
the Borrowers and “Finance Document” means any one of them.

7

 

	 	 	 	“Finance Parties” means the Agent, the Security Trustee, the MLAs, the Swap
Provider, the Bookrunners and the Lenders and “Finance Party” means any one of them.
	 
	 	 	 	“First Drawdown Date” means the date on which the first Drawing is advanced under
Clause 4.
	 
	 	 	 	“GAAP” means generally accepted accounting principles in the United States of
America.
	 
	 	 	 	“Groups” means together the Guarantor A Group and the Guarantor B Group (each a
“Group”).
	 
	 	 	 	“Guarantees” means the guarantees and indemnities referred to in Clause 10.1.3.
	 
	 	 	 	“Guarantor A” means Teekay Tankers Ltd.
	 
	 	 	 	“Guarantor A Float Date” means the date on which Guarantor A is listed on a
recognised stock exchange.
	 
	 	 	 	“Guarantor A Group” means Guarantor A and each of its Subsidiaries.
	 
	 	 	 	“Guarantor B” means Teekay Corporation.
	 
	 	 	 	“Guarantor B Group” means Guarantor B and each of its Subsidiaries, other than OPCO,
TOO, TGP and (following the Guarantor A Float Date) Guarantor A, and their
respective Subsidiaries.
	 
	 	 	 	“Guarantors” means (a) Guarantor A in respect of the obligations of the A Borrowers
and, with effect from any relevant Collateral Transfer Date, any Collateral Transfer
Borrowers and (b) Guarantor B in respect of the obligations of (i) the A Borrowers
from the first Drawdown Date in respect of Tranche A until the Guarantor A Float
Date and (ii) the B Borrowers from the First Drawdown Date until the end of the
Facility Period.
	 
	 	 	 	“Guarantors’ Accounts” means the consolidated financial accounts of each of the
Guarantors to be provided to the Agent pursuant to clause 9 of the respective
Guarantees.

8

 

	 	 	 	“Holding Company” means, in relation to any entity, any other entity in respect of
which it is a Subsidiary.
	 
	 	 	 	“Hugli” means Hugli Spirit L.L.C.
	 
	 	 	 	“Indebtedness” means together the Tranche A Indebtedness and the Tranche B
Indebtedness.
	 
	 	 	 	“Initial Maximum Amount” means the aggregate of the Tranche A Maximum Amount and the
Tranche B Maximum Amount, in a maximum aggregate amount of eight hundred and twelve
million Dollars ($812,000,000) prior to the Tranche B Step Up Date and eight hundred
and forty five million Dollars ($845,000,000) following the Tranche B Step Up Date.
	 
	 	 	 	“Insurances” in relation to a Vessel means all policies and contracts of insurance
(including all entries in protection and indemnity or war risks associations) which
are from time to time taken out or entered into in respect of or in connection with
that Vessel or her increased value and (where the context permits) all benefits
under such contracts and policies, including all claims of any nature and returns of
premium.
	 
	 	 	 	“Interest Payment Date” means each date for the payment of interest in accordance
with Clause 7.7.
	 
	 	 	 	“Interest Period” means each period for the payment of interest selected by the
Borrowers or agreed by the Agent pursuant to Clause 7.
	 
	 	 	 	“ISM Code” means the International Management Code for the Safe Operation of Ships
and for Pollution Prevention.
	 
	 	 	 	“ISM Company” means, at any given time, the company responsible for a Vessel’s
compliance with the ISM Code under paragraph 1.1.2 of the ISM Code.
	 
	 	 	 	“ISPS Code” means the International Ship and Port Facility Security Code.
	 
	 	 	 	“ISPS Company” means, at any given time, the company responsible for a Vessel’s
compliance with the ISPS Code.

9

 

	 	 	 	“ISSC” means a valid international ship security certificate for a Vessel issued
under the ISPS Code.
	 
	 	 	 	“law” or “Law” means any law, statute, treaty, convention, regulation, instrument or
other subordinate legislation or other legislative or quasi-legislative rule or
measure, or any order or decree of any government, judicial or public or other body
or authority, or any directive, code of practice, circular, guidance note or other
direction issued by any competent authority or agency (whether or not having the
force of law).
	 
	 	 	 	“LIBOR” means:

	 	(a)	 	the applicable Screen Rate; or
	 
	 	(b)	 	(if no Screen Rate is available for any Interest Period) the
arithmetic mean of the rates (rounded upwards to four decimal places) as
supplied to the Agent at its request quoted by the Reference Banks (or by two
of them if one is unable to quote) to leading banks in the London interbank
market,

	 	 	 	at 11.00 a.m. London time two (2) Business Days before the first day of the relevant
Interest Period for the offering of deposits in Dollars in an amount comparable to
the Facility (or any relevant part of the Facility) and for a period comparable to
the relevant Interest Period.
	 
	 	 	 	“Majority Lenders” means a Lender or Lenders whose Commitments aggregate more than
sixty six and two thirds per cent (66 2/3%) of the aggregate of all the Commitments.
	 
	 	 	 	“Management Agreement” means any agreement(s) for the commercial and/or technical
management of the Vessels entered into between each Owner and a company which is not
controlled by Guarantor B other than A/S Dampskibsselskabet Torm or, in the case of
m.v. “NASSAU SPIRIT”, a company controlled by OAO Sovcomflot.
	 
	 	 	 	“Managers” in relation to m.v. “NASSAU SPIRIT” means a company controlled by OAO
Sovcomflot and in relation to each other Vessel means A/S Dampskibsselskabet Torm or
a management company which is controlled by Guarantor B or such other commercial
and/or technical managers of the Vessels

10

 

	 	 	 	nominated by the relevant Owner as the Agent acting on the instructions of the
Majority Lenders may approve such approval not to be unreasonably withheld or
delayed.
	 
	 	 	 	“Mandatory Cost” means the percentage rate per annum calculated by the Agent in
accordance with Schedule 4.
	 
	 	 	 	“Margin” means (a) in respect of Tranche A (i) nought point five five percent
(0.55%) per annum for any period when Guarantor B guarantees the Tranche A
Indebtedness and (ii) nought point six zero per cent (0.60%) per annum for any
period when Guarantor B does not guarantee the Tranche A Indebtedness, and (b) in
respect of Tranche B nought point five five per cent (0.55%) per annum.
	 
	 	 	 	“Master Agreement” means any ISDA master agreement (or any other form of master
agreement relating to interest exchange transactions) entered into between the Swap
Provider and the A Borrowers to hedge the Tranche A Indebtedness under this
Agreement during the Facility Period, including but not limited to the ISDA master
agreement dated on or about the date hereof entered into between the Swap Provider
and the A Borrowers and a Transaction dated 2 July 2007, as such Transaction has
been novated by Guarantor B to the A Borrowers pursuant to a novation agreement
dated on or about the date hereof entered into between the Swap Provider, Guarantor
B and the A Borrowers, and including each Schedule to any Master Agreement and each
confirmation exchanged pursuant to any Master Agreement.
	 
	 	 	 	“Master Agreement Liabilities” means at any relevant time all liabilities of the A
Borrowers to the Swap Provider under or pursuant to the Master Agreement or any
Transaction, whether actual or contingent, present or future.
	 
	 	 	 	“Material Adverse Effect” means a material adverse change in, or a material adverse
effect on:

	 	(a)	 	the financial condition, assets, prospects or business of any
Security Party or on the consolidated financial condition, assets, prospects or
business of either Group;

11

 

	 	(b)	 	the ability of any Security Party to perform and comply with
its obligations under any Security Document or to avoid any Event of Default;
	 
	 	(c)	 	the validity, legality or enforceability of any Security
Document; or
	 
	 	(d)	 	the validity, legality or enforceability of any security
expressed to be created pursuant to any Security Document or the priority and
ranking of any such security,

	 	 	 	provided that, in determining whether any of the forgoing circumstances shall
constitute such a material adverse change or material adverse effect for the
purposes of this definition, the Finance Parties shall consider such circumstance in
the context of (x) either Group taken as a whole and (y) the ability of the
Borrowers and the Guarantors to perform each of their obligations under the Security
Documents.
	 
	 	 	 	“Maturity Date” means the date falling ten (10) years after the Execution Date.
	 
	 	 	 	“Maximum Amount” means:

	 	(a)	 	the Initial Maximum Amount for the period from the Execution
Date until the first Upsize Trigger Date; and
	 
	 	(b)	 	the relevant Upsize Increased Maximum Amount from the first
Upsize Trigger Date until the Maturity Date,

	 	 	 	as reduced from time to time pursuant to the terms of this
Agreement.
	 
	 	 	 	“Mortgages” means the statutory mortgages referred to in Clause 10.1.1 together with
the Deeds of Covenants.
	 
	 	 	 	“Necessary Authorisations” means all Authorisations of any person including any
government or other regulatory authority required by applicable Law to enable it to:

	 	(a)	 	lawfully enter into and perform its obligations under the
Security Documents to which it is party;

12

 

	 	(b)	 	ensure the legality, validity, enforceability or admissibility
in evidence in England and, if different, its jurisdiction of incorporation, of
such Security Documents to which it is party; and
	 
	 	(c)	 	carry on its business from time to time.

	 	 	 	“OPCO” means Teekay Offshore Operating L.P. and its Subsidiaries.
	 
	 	 	 	“Owner” in respect of a Collateral Vessel means the Borrower listed as the Owner of
that Vessel in Schedule 2 and in respect of an Additional Vessel means the Borrower
registered as the owner of that Vessel following its purchase.
	 
	 	 	 	“Permitted Encumbrance” means (i) any Encumbrance which has the prior written
approval of the Agent acting on the instructions of all the Lenders or (ii) any
liens for current crews’ wages and salvage and liens incurred in the ordinary course
of trading a Vessel up to an aggregate amount at any time not exceeding ten million
Dollars ($10,000,000).
	 
	 	 	 	“Permitted Upsize Lending Ratio” means (i) fifty five per cent of the Valuations of
the relevant Additional Vessels as at the relevant Upsize Trigger Date (in respect
of Tranche A) and (ii) sixty per cent of the Valuations of the relevant Additional
Vessels as at the relevant Upsize Trigger Date (in respect of Tranche B).
	 
	 	 	 	“Pledgor” means each company listed in Schedule 2 Part I, in respect of the A
Borrower against whose name it is listed.
	 
	 	 	 	“Pre-Approved Classification Society” means any of Det norske Veritas, Lloyds
Register, American Bureau of Shipping (ABS), Germanischer Lloyd or Bureau Veritas or
such other classification society acceptable to the Majority Lenders.
	 
	 	 	 	“Pre-Approved Flag” means Marshall Islands, Norwegian International Ship Registry,
Liberia, Panama, Isle of Man, Cayman Islands, Bermuda, Bahamas or Singapore.
	 
	 	 	 	“Proportionate Share” means, at any time, the proportion which a Lender’s Commitment
(whether or not advanced) then bears to the aggregate Commitments of all the Lenders
(whether or not advanced).

13

 

	 	 	 	“Reduction Date” means the date falling five (5) years after the Execution Date and
each date falling at consecutive six monthly intervals thereafter.
	 
	 	 	 	“Reference Banks” means, in relation to LIBOR, the principal London offices (or
lending Affiliates) of each of the Bookrunners or such other banks as may be
appointed by the Agent in consultation with the Borrowers.
	 
	 	 	 	“Relevant Documents” means the Finance Documents and the Management Agreements.
	 
	 	 	 	“Relevant Reduction Amount” means, in respect of each Vessel, the percentage set out
in the column headed “Relevant Share” opposite that Vessel in Schedule 2, as amended
pursuant to Clause 2.1.1. from time to time at or around an Upsize Trigger Date.
	 
	 	 	 	“Replacement Vessel” means a vessel of substantially similar value (as evidenced by
the average of two Valuations), type and age to the Vessel it is offered as a
replacement of, acceptable to the Agent acting on the instructions of the Majority
Lenders.
	 
	 	 	 	“Requisition Compensation” in relation to a Vessel means all compensation or other
money which may from time to time be payable to an Owner as a result of that Vessel
being requisitioned for title or in any other way compulsorily acquired (other than
by way of requisition for hire).
	 
	 	 	 	“Same Day Drawing”, means, in respect of the first drawing only, a Drawing
requested by the Borrowers prior to 10.00 am hours (New York time) on the day before
the First Drawdown Date and made by the Lenders on the First Drawdown Date.
	 
	 	 	 	“Screen Rate” means in relation to LIBOR, the British Bankers’ Association Interest
Settlement Rate for the relevant currency and period  displayed on the
appropriate page of the Reuters page LIBOR 01 (or such other page or pages which
replace(s) such page) for the purposes of displaying offered rates of leading banks,
for deposits in Dollars of amounts equal to the amount of the relevant Drawing for a
period equal in length to the relevant Interest Period.

14

 

	 	 	 	“Security Documents” means the Mortgages, the Deeds of Covenants, the Assignments,
the Guarantees, the Share Pledges or (where the context permits) any one or more of
them and any other agreement or document which may at any time be executed by any
person as security for the payment of all or any part of the Indebtedness and
“Security Document” means any one of them.
	 
	 	 	 	“Security Parties” means the Tranche A Security Parties and the Tranche B Security
Parties, each a “Security Party”).
	 
	 	 	 	“Share Pledges” means the pledges of the shares of the Borrowers given by either of
the Guarantors or by a Pledgor as referred to in Clause 10.1.4.
	 
	 	 	 	“SMC” means a valid safety management certificate issued for a Vessel by or on
behalf of the Administration under paragraph 13.7 of the ISM Code.
	 
	 	 	 	“SMS” means a safety management system for a Vessel developed and implemented in
accordance with the ISM Code.
	 
	 	 	 	“Subsidiary” means a subsidiary undertaking, as defined in section 736 Companies Act
1985 or any analogous definition under any other relevant system of law.
	 
	 	 	 	“Tax” means any tax, levy, impost, duty or other charge or withholding of a similar
nature (including any penalty or interest payable in connection with any failure to
pay or any delay in paying any of the same) and “Taxation” shall be interpreted
accordingly.
	 
	 	 	 	“TGP” means Teekay LNG Partners L.P. and its Subsidiaries.
	 
	 	 	 	“TNK” means Teekay Tankers Ltd and its Subsidiaries.
	 
	 	 	 	“TOO” means Teekay Offshore Partners L.P. and its Subsidiaries.
	 
	 	 	 	“Total Loss” in relation to a Vessel means:

	 	(a)	 	an actual, constructive, arranged, agreed or compromised total
loss of that Vessel; or

15

 

	 	(b)	 	the requisition for title or compulsory acquisition,
nationalisation or expropriation of that Vessel by or on behalf of any
government or other authority (other than by way of requisition for hire); or
	 
	 	(c)	 	the capture, seizure, arrest, detention or confiscation of that
Vessel unless the Vessel is released and returned to the possession of its
Owner within ninety (90) days after the capture, seizure, arrest, detention or
confiscation in question.

	 	 	 	“Tranche A” means an amount not exceeding the Tranche A Maximum Amount to be made
available by the Lenders to the A Borrowers.
	 
	 	 	 	“Tranche A Indebtedness” means the aggregate from time to time of: the amount of
Tranche A outstanding; all accrued and unpaid interest on Tranche A; the Master
Agreement Liabilities; and all other sums of any nature (together with all accrued
and unpaid interest on any of those sums) which from time to time may be payable by
the A Borrowers to any of the Finance Parties under all or any of the Finance
Documents.
	 
	 	 	 	“Tranche A Maximum Amount” means two hundred and twenty nine million Dollars
($229,000,000), as reduced from time to time in accordance with Clause 2.1.1 and/or
Clause 3.4 and/or Clause 7.9.5. or increased pursuant to Clause 2.1.1 and/or Clause
2.1.2 and/or 3.4.5.
	 
	 	 	 	“Tranche A Security Party” means the A Borrowers from time to time, Guarantor A for
any period when Guarantor A is guaranteeing the Tranche A Indebtedness, each Pledgor
for any period when it is giving a Share Pledge, and Guarantor B for any period when
Guarantor B is guaranteeing the Tranche A Indebtedness, and any other person who may
at any time during the Facility Period be liable for, or provide security for, all
or any part of the Tranche A Indebtedness, and “Tranche A Security Party” means any
one of them.
	 
	 	 	 	“Tranche A Vessels” means:

	 	(i)	 	the Vessels listed in Schedule 2 Part I; and
	 
	 	(ii)	 	following any Collateral Transfer, any Tranche B Vessels
redenominated as Tranche A Vessels; and

16

 

	 	(iii)	 	following any Upsize Trigger Date, any Additional Vessel
designated as a Tranche A Vessel; and
	 
	 	(iv)	 	any Replacement Vessel accepted as a Tranche A Vessel,

	 	 	 	and everything now and in the future belonging to them on board and ashore
(each a “Tranche A Vessel”).
	 
	 	 	 	“Tranche B” means an amount not exceeding the Tranche B Maximum Amount to be made
available by the Lenders to the B Borrowers.
	 
	 	 	 	“Tranche B Indebtedness” means the aggregate from time to time of: the amount of
Tranche B outstanding; all accrued and unpaid interest on Tranche B; and all other
sums of any nature (together with all accrued and unpaid interest on any of those
sums) which from time to time may be payable by the B Borrowers to any of the
Finance Parties under all or any of the Finance Documents.
	 
	 	 	 	“Tranche B Maximum Amount” means:

	 	(a)	 	five hundred and eighty three million Dollars ($583,000,000)
from the Execution Date until the earlier of the Tranche B Step Up Date and the
end of the Facility Period; and
	 
	 	(b)	 	six hundred and sixteen million Dollars ($616,000,000) from the
Tranche B Step Up Date to the end of the Facility Period,

	 	 	 	in each case as reduced from time to time in accordance with Clause 2.1.1 and/or
Clause 3.4 and/or Clause 7.9.5. or increased pursuant to Clause 2.1.2.
	 
	 	 	 	“Tranche B Security Party” means the B Borrowers from time to time and Guarantor B,
and any other person who may at any time during the Facility Period be liable for,
or provide security for, all or any part of the Tranche B Indebtedness, and “Tranche
B Security Party” means any one of them.
	 
	 	 	 	“Tranche B Step Up Date” means the date on which the Borrowers have provided the
Agent with those conditions precedent set out in Schedule 3 Part VII and the Tranche
B Maximum Amount has been increased accordingly.
	 
	 	 	 	“Tranche B Vessels” means:

17

 

	 	(i)	 	the Vessels listed in Schedule 2 Part II (other than any
Vessels redenominated as Tranche A Vessels following a Collateral Transfer);
	 
	 	(ii)	 	following any Upsize Trigger Date, any Additional Vessel
designated as a Tranche B Vessel; and
	 
	 	(iii)	 	any Replacement Vessel accepted as a Tranche B Vessel,

	 	 	 	and everything now and in the future belonging to them on board and ashore (each a
“Tranche B Vessel”).
	 
	 	 	 	“Tranches” means together Tranche A and Tranche B (each a “Tranche”).
	 
	 	 	 	“Tranche Maximum Amounts” means together the Tranche A Maximum Amount and the
Tranche B Maximum Amount (each a “Tranche Maximum Amount”).
	 
	 	 	 	“Transaction” means a transaction entered into between the Swap Provider and a
counterparty under a Master Agreement.
	 
	 	 	 	“Transfer Certificate” means a certificate substantially in the form set out in
Schedule 6 or any other form agreed between the Agent and the Borrowers.
	 
	 	 	 	“Transfer Date” means, in relation to any Transfer Certificate, the date for the
making of the transfer specified in the schedule to such Transfer Certificate.
	 
	 	 	 	“Trust Property” means:

	 	(a)	 	all benefits derived by the Security Trustee from Clause 10;
and
	 
	 	(b)	 	all benefits arising under (including, without limitation, all
proceeds of the enforcement of) each of the Security Documents,

	 	 	 	with the exception of any benefits arising solely for the benefit of the Security
Trustee.
	 
	 	 	 	“Upsize Amount” means the amount set out in an Upsize Notice not to exceed the
lesser of (i) such amount as can be lent without breaching the Permitted Upsize
Lending Ratio and (ii) (when aggregated with all previous Upsize Amounts) four
hundred million Dollars ($400,000,000).

18

 

	 	 	 	“Upsize Increased Maximum Amount” means the Initial Maximum Amount as increased by
the relevant Upsize Amount with effect from each Upsize Trigger Date being a
total maximum amount of up to one billion two hundred and forty five million
Dollars ($1,245,000,000) to be allocated between Tranche A and/or Tranche B as
specified by the Borrowers in the relevant Upsize Notice.
	 
	 	 	 	“Upsize Notice” means a notice substantially in the form of Schedule 7.
	 
	 	 	 	“Upsize Trigger Date” means the date specified in an Upsize Notice (being not less
than thirty (30) days following the date of such Upsize Notice) on which the
Borrowers request an increase in the Maximum Amount pursuant to Clause 2.1.2.
	 
	 	 	 	“Valuation” means in relation to a Vessel or a Replacement Vessel, the written
valuation of that Vessel or Replacement Vessel expressed in Dollars prepared by one
of the Approved Brokers (or such other firm of reputable independent shipbrokers as
may be acceptable to the Agent) to be nominated by the Borrowers, such nomination to
be subject to the approval of the Agent. Such valuations shall be prepared at the
Borrowers’ expense, without a physical inspection, on the basis of a sale for prompt
delivery for cash at arm’s length between a willing buyer and a willing seller
without the benefit of any charterparty or other engagement.
	 
	 	 	 	“Vessels” means the Collateral Vessels and any Additional Vessels (each a “Vessel”).
	 
	 	 	 	“WSJ Prime Rate” means the “Prime Rate” as published in the printed copy of the Wall
Street Journal on any particular day as the same may be adjusted from time to time.

	 	1.2	 	In this Agreement:

	 	1.2.1	 	words denoting the plural number include the singular and vice versa;

	 
	 	1.2.2 	 	words denoting persons include corporations, partnerships,
associations of persons (whether incorporated or not) or governmental or
quasi-governmental bodies or authorities and vice versa;
	 
	 	1.2.3	 	references to Recitals, Clauses and Schedules are references
to recitals, clauses and schedules to or of this Agreement;

19

 

	 	1.2.4	 	references to this Agreement include the Recitals and the
Schedules;
	 
	 	1.2.5	 	the headings and contents page(s) are for the purpose of
reference only, have no legal or other significance, and shall be ignored in
the interpretation of this Agreement;
	 
	 	1.2.6	 	references to any document (including, without limitation, to
all or any of the Relevant Documents) are, unless the context otherwise
requires, references to that document as amended, supplemented, novated or
replaced from time to time;
	 
	 	1.2.7	 	references to statutes or provisions of statutes are
references to those statutes, or those provisions, as from time to time
amended, replaced or re-enacted;
	 
	 	1.2.8	 	references to any Finance Party include its successors,
transferees and assignees; and
	 
	 	1.2.9	 	a time of day (unless otherwise specified) is a reference to
New York time.

	 	1.3	 	Offer letter

	 	 	 	This Agreement supersedes the terms and conditions contained in any correspondence
relating to the subject matter of this Agreement exchanged between any Finance Party
and the Borrowers or their representatives prior to the date of this Agreement.

	2	 	The Facility and its Purposes

	 	2.1	 	Amount

	 	2.1.1	 	Subject to the terms of this Agreement, each of the Lenders
agrees to make available to the Borrowers its Commitment of a revolving credit
in an aggregate amount not exceeding the Initial Maximum Amount at any one
time, Tranche A to be made available to the A Borrowers and Tranche B to be
made available to the B Borrowers PROVIDED THAT the Borrowers may elect at any
time whilst no Event of Default has occurred and is continuing unremedied or
unwaived (by serving a

20

 

	 	 	 	Collateral Transfer Notice) for a B Borrower to become an A Borrower and for
the Vessel owned by it to become an A Vessel on a Collateral Transfer Date
by providing not less than five (5) days notice to the Agent and fulfilling
the conditions precedent set out in Schedule 3 Part III, at which Collateral
Transfer Date (subject to the Agent agreeing the calculation of the
Collateral Transfer Amount specified in the Collateral Transfer Notice such
consent not to be unreasonably withheld) the relevant Collateral Transfer
Amount shall be added to the Tranche A Indebtedness (and the Tranche A
Maximum Amount shall be increased by an amount equal to the Tranche B
Maximum Amount multiplied by the percentage shown as the “Relevant Share” of
the Vessel in question) and deducted from the amount of the Tranche B
Indebtedness (and the Tranche B Maximum Amount shall be reduced by an amount
equal to the Tranche B Maximum Amount multiplied by the percentage shown as
the “Relevant Share” of the Vessel in question). At or around each
Collateral Transfer Date, the Agent shall circulate to each of the parties
amended Schedules 1, 2 and 8 to reflect the Collateral Transfer. Save in
the case of manifest error, such amended schedules shall be binding on all
the parties with effect from the relevant Collateral Transfer Date.
	 
	 	2.1.2	 	The Borrowers shall have the right (provided that no Event of
Default has occurred and is continuing unremedied or unwaived) to issue one or
more Upsize Notices requesting an Upsize Amount and specifying the Upsize
Trigger Date, the proportions in which it is to be allocated to Tranche A
and/or Tranche B, the relevant Additional Borrowers and the Additional Vessels
to be charged as security, following receipt of which Upsize Notice the Lenders
shall have the right (but not the obligation) to subscribe in the Upsize Amount
pro rata to their Commitments in the Initial Maximum Amount. The availability
of the Upsize Amount shall be subject (inter alia) to the participating Lenders
agreeing to the proposed fee payable, each as specified in the relevant Upsize
Notice. If any Lender does not take up this option within twenty (20) days of
receipt of an Upsize Notice, its portion of the Upsize Amount shall be made
available to be taken up by the participating Lenders for a further ten (10)
days. If at the end of such ten (10) day period not all of the Upsize

21

 

	 	 	 	Amount has been subscribed, then the Upsize Amount shall be reduced to the
amount subscribed, and the reduced Upsize Amount shall take effect from the
Upsize Trigger Date. Following each Upsize Trigger Date, the participating
Lenders agree to make their Commitments in the Maximum Amount as increased
by the relevant Upsize Amount available to the Borrowers. The aggregate
amount of the Facility following each Upsize Trigger Date shall not exceed
the Maximum Amount. The Upsize Amount may be used for the same purposes as
the initial Facility. At or around each Upsize Trigger Date, the Agent
shall circulate to each of the parties an amended Schedule 8 to reflect the
increased Maximum Amount, which shall be calculated on the same basis as the
initial Schedule 8, with a balloon payment of forty five per cent (45%), and
amended Schedules 1 and 2 to reflect the amended Commitments and the
Additional Vessels and Additional Borrowers. Save in the case of manifest
error, such amended Schedules shall be binding on all the parties with
effect from the relevant Upsize Trigger Date.

	 	2.2	 	Finance Parties’ obligations The obligations of each Finance Party under the
Finance Documents are several. Failure by a Finance Party to perform its obligations
under the Finance Documents does not affect the obligations of any other party to the
Finance Documents. No Finance Party is responsible for the obligations of any other
Finance Party under the Finance Documents.
	 
	 	2.3	 	Purposes The Borrowers shall apply the Facility for the purposes referred to
in the Recital.
	 
	 	2.4	 	Monitoring No Finance Party is bound to monitor or verify the application of
any amount borrowed under this Agreement.

	3	 	Conditions of Utilisation

	 	3.1	 	Conditions precedent

	 	3.1.1	 	Before any Lender shall have any obligation to advance any
Drawing under Tranche A the A Borrowers shall deliver or cause to be delivered
to or to the order of the Agent all of the documents and other evidence listed
in Part I A of Schedule 3 and before any Lender shall have any obligation

22

 

	 	 	 	to advance any Drawing under Tranche B the B Borrowers shall deliver or
cause to be delivered to or to the order of the Agent all of the documents
and other evidence listed in Part I B of Schedule 3.
	 
	 	3.1.2	 	Before a Collateral Transfer can be effected, the Borrowers
shall deliver or cause to be delivered to or to the order of the Agent all of
the documents and other evidence listed in Part III of Schedule 3.
	 
	 	3.1.3	 	Before any Lender shall have any obligation to advance any
drawing in respect of the Upsize Amount the Borrowers shall deliver or cause to
be delivered to or to the order of the Agent all of the documents and other
evidence listed in Part V of Schedule 3.
	 
	 	3.1.4	 	Before the Tranche B Step Up Date, the Borrowers shall deliver
or cause to be delivered to or to the order of the Agent all of the documents
and other evidence listed in Part VII of Schedule 3.

	 	3.2	 	Further conditions precedent The Lenders will only be obliged to advance a
Drawing if on the date of the Drawdown Notice and on the proposed Drawdown Date:

	 	3.2.1	 	no Default is continuing or would result from the advance of
that Drawing; and
	 
	 	3.2.2	 	the representations made by the Borrowers under Clause 11 and
by the Guarantors under the Guarantees are true in all material respects.

	 	3.3	 	Drawing limit The Lenders will only be obliged to advance a Drawing if:

	 	3.3.1	 	no other Drawing under the same Tranche has been made on the
same Business Day;
	 
	 	3.3.2	 	that Drawing will not result in there being more than seven
Drawings outstanding in respect of that Tranche at any one time;
	 
	 	3.3.3	 	that Drawing is not less than five million Dollars
($5,000,000) and in an integral multiples of one million Dollars ($1,000,000);
and

23

 

	 	3.3.4	 	that Drawing will not increase the outstanding amount of the
relevant Tranche to a sum in excess of the relevant Tranche Maximum Amount or
the Facility to a sum in excess of the Maximum Amount.

	 	 	 	The First Drawdown Date must occur on or before 31 December 2007 or such later date
as the MLAs shall agree.

	 	3.4	 	Facility Reduction

	 	3.4.1	 	The amount of the Facility available (i) to the A Borrowers,
for drawing under this Agreement shall, subject to the provisions of Clauses
2.1.1, 2.1.2, 3.4.5, 3.4.6 and 7.9.5, be the Tranche A Maximum Amount, (ii) to
the B Borrowers for drawing under this Agreement shall, subject to the
provisions of Clauses 2.1.1, 2.1.2, 3.4.5, 3.4.6 and 7.9.5, be the Tranche B
Maximum Amount (the total being available to the Borrowers for drawing under
this Agreement (subject to the provisions of Clauses 2.1.1, 2.1.2, 3.4.6 and
7.9.5) being eight hundred and twelve million Dollars ($812,000,000) (if the
Tranche B Step Up Date has not occurred) or eight hundred and forty five
million Dollars ($845,000,000) (if the Tranche B Step Up Date has occurred)
until the first Reduction Date). On the Reduction Dates the amount of the
Facility available for drawing shall be reduced by the amounts set out in
Schedule 8 (the “Initial Reduction Amounts”). On the Maturity Date the
Facility available shall be reduced to zero. Subject to the proviso hereto,
the mandatory reductions in the amount of the Facility available for drawing
required pursuant to this Clause will be made in the amounts and at the times
specified whether or not the Maximum Amount is reduced pursuant to Clause
3.4.2, Clause 3.4.3, Clause 3.4.4, Clause 6.1 or Clause 7.9. PROVIDED ALWAYS
THAT any reductions pursuant to Clause 3.4.2 (voluntary reductions), Clause
3.4.3 (sale) or Clause 3.4.4 (Total Loss) shall be applied to the remaining
mandatory reductions hereunder on a pro rata basis.
	 
	 	3.4.2	 	The Borrowers may voluntarily cancel the Maximum Amount in
whole or in part (such cancellation to be against the Tranches in the
proportions specified by the Borrowers) in an amount of not less than five
million Dollars ($5,000,000) such amount to be in integral multiples of one
million Dollars ($1,000,000) (or as otherwise may be agreed by the

24

 

	 	 	 	Agent), provided that they have first given to the Agent not fewer than five
(5) Business Days’ prior written notice expiring on a Business Day (the
“Cancellation Date”) of their desire to reduce the Maximum Amount and
notification of which Tranche the cancellation is to be applied against;
such notice once received by the Agent shall be irrevocable and shall oblige
the Borrowers to make payment of all interest and Commitment Commission
accrued on the amount so cancelled up to and including the Cancellation Date
together with any Break Costs in respect of such cancelled amount if the
Cancellation Date is not the final day of an Interest Period. Any such
reduction in the Maximum Amount shall not be reversed. If, as a result of
any such cancellation, the Tranche A Indebtedness or the Tranche B
Indebtedness would exceed the relevant Tranche Maximum Amount, the Borrowers
shall, on the Cancellation Date, prepay such amount of Tranche A or Tranche
B as will ensure that the Tranche A Indebtedness and/or the Tranche B
Indebtedness are not greater than the respective Tranche Maximum Amounts.
	 
	 	3.4.3	 	In the event of a sale or disposal of a Vessel or the Agent
having received not less than 5 Business Days’ notice from the Borrowers
requesting that the security relating to a Vessel be released and discharged (a
“Released Vessel”), the Maximum Amount shall be reduced by the Relevant
Reduction Amount applicable to that Vessel, such reduction to be applied on a
pro rata basis against the Initial Reduction Amounts as reduced from time to
time in accordance with this clause 3.4. Such reduction shall be made thirty
(30) days after a sale or disposal of such Vessel and in the case of a Released
Vessel thirty (30) days after the date proposed by the Borrowers for release
and discharge of the security relating to that Vessel. If the Vessel or
Released Vessel in question is replaced within thirty (30) days of the sale,
disposal or release with a Replacement Vessel, and in such case of replacement
any security held by the Agent (whether directly or indirectly) from the
relevant Owner and over such Vessel or Released Vessel is reconstituted
immediately after the sale to the new owner or after the release and discharge
of security (as the case may be) or over the Replacement Vessel in
substantially identical form, and the Agent obtains favourable legal opinions
(on substantially the same basis as those

25

 

	 	 	 	obtained pursuant to paragraph 3 of Part 1 A and Part 1 B of Schedule 3) in
respect of such reconstituted security, the Maximum Amount shall be
maintained at the amount it was prior to the application of the Relevant
Reduction Amount (as reduced in the meantime by any reductions under Clause
3.4.1), and in any event the Relevant Reduction Amount shall not be
available for drawing during such thirty (30) day period unless and until
the Agent confirms that the Maximum Amount is to be so maintained. If, as a
result of any reduction in the Maximum Amount pursuant to this Clause, the
Facility outstanding would exceed the Maximum Amount or the relevant Tranche
outstanding would exceed the relevant Tranche Maximum Amount, the Borrowers
shall, on the date of the sale, disposal or replacement, prepay such amount
of the Facility as will ensure that the Facility and Tranche outstanding are
not greater than the Maximum Amount and relevant Tranche Maximum Amount
respectively. Any such prepayment shall oblige the Borrowers to make
payment of all interest and Commitment Commission accrued on the amount so
reduced up to and including the date of reduction together with any Break
Costs in respect of such reduced amount if the date of such reduction is not
the final day of an Interest Period. Any such reduction in the Maximum
Amount and Tranche Maximum Amounts shall not be reversed save in accordance
with the provisions of this Clause 3.4.3.
	 
	 	3.4.4	 	In the event that any Vessel becomes a Total Loss, on the
earlier to occur of (a) the date of receipt of the proceeds of the Total Loss
and (b) the date falling one hundred and eighty (180) days after the occurrence
of the Total Loss (the “Total Loss Reduction Date”), the Maximum Amount shall
(subject to the proviso hereto) be reduced by the Relevant Reduction Amount in
respect of such Vessel. Any such reductions in the Maximum Amount shall not be
reversed. If, as a result of any reduction in the Maximum Amount pursuant to
this Clause, the Facility outstanding would exceed the Maximum Amount or the
relevant Tranche outstanding would exceed the relevant Tranche Maximum Amount,
the Borrowers shall, on the earlier to occur of (i) the date on which the
relevant Owner receives the proceeds of such Total Loss and (ii) the one
hundred and eightieth day after the date of such Total Loss occurring, prepay
such amount of the

26

 

	 	 	 	Facility and Tranche as will ensure that the Facility and relevant Tranche
outstanding is equal to or less than the Maximum Amount and relevant Tranche
Maximum Amount respectively. Any such prepayment shall not be reborrowed
and Clause 8.3 shall apply to any such prepayment. PROVIDED ALWAYS that if
there is an investment in a Replacement Vessel on or prior to the Total Loss
Reduction Date, and a guarantee from the owner of the Replacement Vessel (in
such form as the Majority Lenders may require at that time) and security
over such Replacement Vessel acceptable to the Majority Lenders in their
absolute discretion is also executed and delivered either prior to or on the
Total Loss Reduction Date, then the reduction in the Maximum Amount and
Tranche Maximum Amounts shall not apply.
	 
	 	3.4.5	 	In the event of a Collateral Transfer of a Tranche B Vessel
into a Tranche A Vessel on a Collateral Transfer Date, the Tranche A Maximum
Amount shall be increased and the Tranche B Maximum Amount shall be decreased
in accordance with the terms of Clause 2.1.1.
	 
	 	3.4.6	 	To the extent that repayments or prepayments made by the
Borrowers to the Agent in accordance with this Agreement reduce the Facility
and Tranches outstanding to less than the Maximum Amount and the Tranche
Maximum Amounts respectively, the Borrowers shall again be entitled to make
Drawings up to the Commitment Termination Date in accordance with and subject
to the terms of this Agreement. Any part of the Facility which is undrawn on
the Commitment Termination Date shall be automatically cancelled.
	 
	 	3.4.7	 	Simultaneously with each reduction of the Maximum Amount in
accordance with Clause 3.4.1, Clause 3.4.2, Clause 3.4.3 or Clause 3.4.4 (as
the case may be), the Commitment of each Lender will reduce or increase (as the
case may be) so that the Commitments of the Lenders in respect of the amended
Maximum Amount and Tranche Maximum Amounts remain in accordance with their
respective Proportionate Shares. In the case of any increase in the Maximum
Amount in accordance with Clause 2.1.2, the Commitment of each Lender will be
in accordance with

27

 

	 	 	 	the revised Schedule 1 circulated by the Agent pursuant to Clause 2.1.2 at
or about the relevant Upsize Trigger Date.

	 	3.5	 	Termination Date No Lender shall be under any obligation to advance all or any
part of its Commitment after the Commitment Termination Date.
	 
	 	3.6	 	Conditions subsequent The Borrowers undertake to deliver or to cause to be
delivered to the Agent:

	 	3.6.1	 	on, or as soon as practicable after, the First Drawdown Date
the additional documents and other evidence listed in Part II A or Part II B
(as the case may be) of Schedule 3; and
	 
	 	3.6.2	 	on, or as soon as practicable after, the Collateral Transfer
Date the additional documents and other evidence listed in Part IV of Schedule
3;
	 
	 	3.6.3	 	on, or as soon as practicable after, an Upsize Trigger Date,
the additional documents and other evidence listed in Part VI of Schedule 3;
and
	 
	 	3.6.4	 	on, or as soon as practicable after, the Tranche B Step Up
Date, the additional documents and other evidence listed in Part VIII of
Schedule 3.

	 	3.7	 	No Waiver If the Lenders in their sole discretion agree to advance a Drawing
to the Borrowers before all of the documents and evidence required by Clause 3.1 have
been delivered to or to the order of the Agent, the Borrowers undertake to deliver all
outstanding documents and evidence to or to the order of the Agent no later than the
date specified by the Agent.
	 
	 	 	 	The advance of all or any part of the Facility under this Clause 3.7 shall not be
taken as a waiver of the Lenders’ right to require production of all the documents
and evidence required by Clause 3.1.
	 
	 	3.8	 	Form and content All documents and evidence delivered to the Agent under this
Clause 3 shall:

	 	3.8.1	 	be in form and substance reasonably acceptable to the Agent; and
	 
	 	3.8.2	 	if reasonably required by the Agent, be certified, notarised,
legalised or attested in a manner acceptable to the Agent.

28

 

	4	 	Advance

	 	4.1	 	Drawdown Request The A Borrowers may request a Drawing in respect of Tranche
A and the B Borrowers may request a Drawing in respect of Tranche B, in each case to be
advanced on any Business Day prior to the Commitment Termination Date, by delivering to
the Agent a duly completed Drawdown Notice not more than ten (10) and not fewer than
three (3) Business Days before the proposed Drawdown Date save in respect of a Same Day
Drawing.
	 
	 	4.2	 	Lenders’ participation Subject to Clauses 2 and 3, the Agent shall promptly
notify each Lender of the receipt of a Drawdown Notice, following which each Lender
shall advance its Proportionate Share of the relevant Drawing to the Borrowers through
the Agent on the relevant Drawdown Date.

	5	 	Repayment

	 	5.1	 	Repayment of each Drawing The Borrowers agree to repay each Drawing to the
Agent for the account of the Lenders on the last day of the Interest Period in respect
of that Drawing unless the Borrowers select a further Interest Period for that Drawing
in accordance with Clause 7, provided that the Borrowers shall not be permitted to
select such a further Interest Period if a Default has occurred and shall then be
obliged to repay such Drawing on the last day of its then current Interest Period. The
Borrowers shall on the Maturity Date repay to the Agent as agent for the Lenders all
Facility Outstandings.
	 
	 	5.2	 	Reborrowing Amounts of the Facility which are repaid or prepaid shall be
available for reborrowing in accordance with Clause 3 prior to the Commitment
Termination Date.

	6	 	Prepayment

	 	6.1	 	Illegality If it becomes unlawful in any jurisdiction for a Lender to fund or
maintain its Commitment as contemplated by this Agreement or to fund or maintain the
Facility:

	 	6.1.1	 	that Lender shall promptly notify the Agent of that event;
	 
	 	6.1.2	 	upon the Agent notifying the Borrowers, the Commitment of that
Lender (to the extent not already advanced) will be immediately cancelled; and

29

 

	 	6.1.3	 	the Borrowers shall repay that Lender’s Proportionate Share of
any Drawing on the last day of its current Interest Period or, if earlier, the
date specified by that Lender in the notice delivered to the Agent and notified
by the Agent to the Borrowers (being no earlier than the last day of any
applicable grace period permitted by law) and the Maximum Amount shall be
reduced by the amount of that Lender’s Commitment in the Facility. Prior to
the date on which repayment is required to be made under this Clause 6.1.3 the
affected Lender shall negotiate in good faith with the Borrowers to find an
alternative method or lending base in order to maintain the Facility.

	 	6.2	 	Voluntary prepayment of Facility The Borrowers may prepay the whole or any
part of a Drawing (but, if in part, being an amount that reduces that Drawing by a
minimum amount of five million Dollars ($5,000,000)) provided that they give the Agent
not less than three (3) Business Days’ prior notice.
	 
	 	6.3	 	Restrictions Any notice of prepayment given under this Clause 6 shall be
irrevocable and, unless a contrary indication appears in this Agreement, shall specify
the date or dates upon which the relevant prepayment is to be made and the amount of
that prepayment.
	 
	 	 	 	Any prepayment under this Agreement shall be made together with accrued interest on
the amount prepaid and, subject to any Break Costs, without premium or penalty.
	 
	 	 	 	If the Agent receives a notice under this Clause 6 it shall promptly forward a copy
of that notice to the Borrowers or the Lenders, as appropriate.
	 
	 	6.4	 	Mandatory Prepayment If at any time the Facility Outstandings shall exceed the
Maximum Amount or the amount outstanding under a Tranche shall exceed the relevant
Tranche Maximum Amount, the Borrowers shall immediately prepay to the Agent on behalf
of the Lenders such amounts as will ensure that the Facility Outstandings do not exceed
the Maximum Amount or the amount outstanding under a Tranche shall not exceed the
relevant Tranche Maximum Amount, and shall pay to the Lenders all interest accrued on
the amount prepaid up to and including the date on which such prepayment occurred.

30

 

	 	6.5	 	Master Agreement Simultaneously with any mandatory prepayment or cancellation
relating to Tranche A under this Clause 6 resulting from the sale or Total Loss of a
Tranche A Vessel (but not otherwise), any transaction carried out under the Master
Agreement relating to that part of Tranche A being prepaid or cancelled will be
terminated unless the A Borrowers and the Swap Provider otherwise agree, and the A
Borrowers will pay to the Swap Provider any sums payable under the Master Agreement
pursuant to that early termination.

	7	 	Interest

	 	7.1	 	Interest Periods The period during which each Drawing shall be outstanding
under this Agreement shall be an Interest Period of one, three or six months’ duration,
as selected by the Borrowers in the Drawdown Notice in respect of the Drawing in
question, or such other duration as may be agreed by the Agent (acting on the
instructions of all the Lenders). Not more than seven (7) one (1) month Interest
Periods in respect of a Tranche may be selected by the Borrowers in each twelve (12)
month period.
	 
	 	7.2	 	Beginning and end of Interest Periods The first Interest Period in respect of
each Drawing shall begin on the Drawdown Date of that Drawing and shall end on the last
day of the Interest Period selected in accordance with Clause 7.1. Any subsequent
Interest Period selected in respect of each Drawing shall commence on the day following
the last day of its previous Interest Period and shall end on the last day of its
current Interest Period selected in accordance with Clause 7.1.
	 
	 	7.3	 	Interest Periods to meet Maturity Date If an Interest Period for a Drawing
would otherwise expire after the Maturity Date, the Interest Period for that Drawing
shall expire on the Maturity Date.
	 
	 	7.4	 	Non-Business Days If an Interest Period would otherwise end on a day which is
not a Business Day, that Interest Period will instead end on the next Business Day in
that calendar month (if there is one) or the preceding Business Day (if there is not).
	 
	 	7.5	 	Interest rate During each Interest Period interest shall accrue on the
relevant Drawing at the rate determined by the Agent to be

31

 

	 	(i)	 	the WSJ Prime Rate in the case of the first Interest Period for
a Same Day Drawing; or
	 
	 	(ii)	 	in all other cases the aggregate of (a) the applicable Margin
for that Tranche, (b) LIBOR and (c) the Mandatory Cost, if applicable.

	 	7.6	 	Failure to select Interest Period If the Borrowers at any time fail to select
or agree an Interest Period in accordance with Clause 7.1, the Interest Period
applicable shall be of three (3) months duration.
	 
	 	7.7	 	Accrual and payment of interest Interest shall accrue from day to day, shall
be calculated on the basis of a 360 day year and the actual number of days elapsed (or,
in any circumstance where market practice differs, in accordance with the prevailing
market practice) and shall be paid by the Borrowers to the Agent for the account of the
Lenders on the last day of each Interest Period and, if the Interest Period is longer
than three months, on the dates falling at three monthly intervals after the first day
of that Interest Period.
	 
	 	7.8	 	Default interest If the Borrowers fail to pay any amount payable by them
under a Finance Document on its due date, interest shall accrue on the overdue amount
from the due date, subject to any applicable grace period, up to the date of actual
payment (both before and after judgment) at a rate which is one point five per cent
(1.5%) higher than the rate which would have been payable if the overdue amount had,
during the period of non-payment, constituted a Drawing for successive Interest
Periods, each selected by the Agent (acting reasonably). Any interest accruing under
this Clause 7.8 shall be immediately payable by the Borrowers on demand by the Agent.
If unpaid, any such interest will be compounded with the overdue amount at the end of
each Interest Period applicable to that overdue amount but will remain immediately due
and payable.
	 
	 	7.9	 	Changes in market circumstances If at any time the Agent determines (which
determination shall be final and conclusive and binding on the Borrowers) that, by
reason of changes affecting the London interbank market, adequate and fair means do not
exist for determining the rate of interest on a Drawing for any Interest Period:

32

 

	 	7.9.1	 	the Agent shall give notice to the Lenders and the Borrowers
of the occurrence of such event; and
	 
	 	7.9.2	 	the rate of interest on each Lender’s Commitment in the
relevant Drawing for that Interest Period shall be the rate per annum which is
the sum of:

	 	(a)	 	the relevant Margin; and
	 
	 	(b)	 	the rate notified to the Agent by that Lender
as soon as practicable, and in any event before interest is due to be
paid in respect of that Interest Period, to be that which expresses as
a percentage rate per annum the cost to that Lender of funding its
Commitment in the relevant Drawing from whatever source it may
reasonably select; and
	 
	 	(c)	 	the Mandatory Cost, if any, applicable to that
Lender’s Commitment,

	    PROVIDED THAT if the resulting rate of interest on any Commitment is not acceptable
to the Borrowers:

	 	7.9.3	 	the Agent on behalf of the Lenders will negotiate with the
Borrowers in good faith with a view to modifying this Agreement to provide a
substitute basis for determining the rate of interest which is financially a
substantial equivalent to the basis provided for in this Agreement;
	 
	 	7.9.4	 	any substitute basis agreed pursuant to Clause 7.9.3 shall be
binding on all the parties to this Agreement and shall apply to all Commitments
in the relevant Drawing; and
	 
	 	7.9.5	 	if, within thirty (30) days of the giving of the notice
referred to in Clause 7.9.1, the Borrowers and the Agent fail to agree in
writing on a substitute basis for determining the rate of interest in respect
of the relevant Drawing, the relevant Lender shall cease to be obliged to
advance its Proportionate Share of that Drawing, but, if it has already been
advanced, the Borrowers will immediately prepay that Proportionate Share of
that Drawing, together with any Break Costs, and the Maximum Amount shall

33

 

	 	 	 	be reduced by the amount of that Lender’s Proportionate Share of that
Drawing.
	 
	 	7.10	 	Determinations conclusive The Agent shall promptly notify the Borrowers of
the determination of a rate of interest under this Clause 7 and each such determination
shall (save in the case of manifest error) be final and conclusive.

	8	 	Indemnities

	 	8.1	 	Transaction expenses The Borrowers will, within fourteen (14) days of the
Agent’s written demand, pay the Agent (for the account of the Finance Parties) the
amount of all reasonable out of pocket costs and expenses (including legal fees and
Value Added Tax or any similar or replacement tax if applicable) reasonably incurred by
the Finance Parties or any of them in connection with:

	 	8.1.1	 	the negotiation, preparation, printing, execution and
registration of the Finance Documents (whether or not any Finance Document is
actually executed or registered and whether or not a Drawing is advanced);
	 
	 	8.1.2	 	any amendment, addendum or supplement to any Finance Document
(whether or not completed); and
	 
	 	8.1.3	 	any other document which may at any time be required by a
Finance Party to give effect to any Finance Document or which a Finance Party
is entitled to call for or obtain under any Finance Document.

	 	8.2	 	Funding costs The Borrowers shall indemnify each Finance Party, by payment to
the Agent (for the account of that Finance Party) on the Agent’s written demand,
against all losses and costs incurred or sustained by that Finance Party if, for any
reason due to a default or other action by the Borrowers, a Drawing is not advanced to
the Borrowers after the relevant Drawdown Notice has been given to the Agent, or is
advanced on a date other than that requested in the Drawdown Notice.
	 
	 	8.3	 	Break Costs The Borrowers shall indemnify each Finance Party, by payment to
the Agent (for the account of that Finance Party) on the Agent’s written demand,
against all documented costs, losses, premiums or penalties incurred by that Finance
Party as a result of its receiving any prepayment of all or any part of a

34

 

	 	 	 	Drawing (whether pursuant to Clause 6 or otherwise) on a day other than the last day
of an Interest Period for that Drawing, or any other payment under or in relation to
the Finance Documents on a day other than the due date for payment of the sum in
question, including (without limitation) any losses or costs incurred in liquidating
or re-employing deposits from third parties acquired to effect or maintain all or
any part of a Drawing, and any liabilities, expenses or losses incurred by that
Finance Party in terminating or reversing, or otherwise in connection with, any
interest rate and/or currency swap, transaction or arrangement entered into by that
Finance Party with any member of either Group to hedge any exposure arising under
this Agreement, or in terminating or reversing, or otherwise in connection with, any
open position arising under this Agreement.
	 
	 	8.4	 	Currency indemnity In the event of a Finance Party receiving or recovering
any amount payable under a Finance Document in a currency other than the Currency of
Account, and if the amount received or recovered is insufficient when converted into
the Currency of Account at the date of receipt to satisfy in full the amount due, the
Borrowers shall, on the Agent’s written demand, pay to the Agent for the account of the
relevant Finance Party such further amount in the Currency of Account as is sufficient
to satisfy in full the amount due and that further amount shall be due to the Agent on
behalf of the relevant Finance Party as a separate debt under this Agreement.
	 
	 	8.5	 	Increased costs (subject to Clause 8.6) If, by reason of the introduction of
any law, or any change in any law, or any change in the interpretation or
administration of any law, or compliance with any request or requirement from any
central bank or any fiscal, monetary or other authority occurring after the date of
this Agreement:

	 	8.5.1	 	a Finance Party (or the Holding Company of a Finance Party)
shall be subject to any Tax with respect to payment of all or any part of the
Indebtedness (other than Tax on overall net income); or
	 
	 	8.5.2	 	the basis of Taxation of payments to a Finance Party in
respect of all or any part of the Indebtedness shall be changed; or

35

 

	 	8.5.3	 	any reserve requirements shall be imposed, modified or deemed
applicable against assets held by or deposits in or for the account of or loans
by any branch of a Finance Party; or
	 
	 	8.5.4	 	the manner in which a Finance Party allocates capital
resources to its obligations under this Agreement or any ratio (whether cash,
capital adequacy, liquidity or otherwise) which a Finance Party is required or
requested to maintain shall be affected; or
	 
	 	8.5.5	 	there is imposed on a Finance Party (or on the Holding Company
of a Finance Party) any other condition in relation to the Indebtedness or the
Finance Documents;

	 	 	 	and the result of any of the above shall be to increase the cost to a Finance Party
(or to the Holding Company of a Finance Party) of that Finance Party making or
maintaining its Commitment, or to cause a Finance Party to suffer (in its opinion) a
material reduction in the rate of return on its overall capital below the level
which it reasonably anticipated at the date of this Agreement and which it would
have been able to achieve but for its entering into this Agreement and/or performing
its obligations under this Agreement, then, subject to Clause 8.6, the Finance Party
affected shall notify the Agent and the Borrowers shall from time to time pay to the
Agent on demand for the account of that Finance Party the amount which shall
compensate that Finance Party (or the relevant Holding Company) for such additional
cost or reduced return. A certificate signed by an authorised signatory of that
Finance Party setting out the amount of that payment and the basis of its
calculation shall be submitted to the Borrowers and shall be conclusive evidence of
such amount save for manifest error or on any question of law.
	 
	 	8.6	 	Exceptions to increased costs Clause 8.5 does not apply to the extent any
additional cost or reduced return referred to in that Clause is:

	 	8.6.1	 	compensated for by a payment made under Clause 8.10; or
	 
	 	8.6.2	 	compensated for by a payment made under Clause 17.3; or
	 
	 	8.6.3	 	compensated for by the payment of the Mandatory Cost; or

36

 

	 	8.6.4	 	attributable to the wilful breach by the relevant Finance
Party (or the Holding Company of that Finance Party) of any law or regulation.

	 	8.7	 	Events of Default The Borrowers shall indemnify each Finance Party from time
to time, by payment to the Agent (for the account of that Finance Party) on the Agent’s
written demand, against all losses and costs incurred or sustained by that Finance
Party as a consequence of any Event of Default.
	 
	 	8.8	 	Enforcement costs The Borrowers shall pay to the Agent (for the account of
each Finance Party) on the Agent’s written demand the amount of all costs and expenses
(including legal fees) incurred by a Finance Party in connection with the enforcement
of, or the preservation of any rights under, any Finance Document including (without
limitation) any losses, costs and expenses which that Finance Party may from time to
time sustain, incur or become liable for by reason of that Finance Party being
mortgagee of a Vessel and/or a lender to the Borrowers, or by reason of that Finance
Party being deemed by any court or authority to be an operator or controller, or in any
way concerned in the operation or control, of a Vessel. No such indemnity will be
given where any such loss or cost has occurred due to gross negligence or wilful
misconduct on the part of that Finance Party; however, this shall not affect the right
of any other Finance Party to receive such indemnity.
	 
	 	8.9	 	Other costs The Borrowers shall pay to the Agent (for the account of each
Finance Party) on the Agent’s written demand the amount of all sums which a Finance
Party may pay or become actually or contingently liable for on account of the Borrowers
in connection with a Vessel (whether alone or jointly or jointly and severally with any
other person) including (without limitation) all sums which that Finance Party may pay
or guarantees which it may give in respect of the Insurances, any expenses incurred by
that Finance Party in connection with the maintenance or repair of a Vessel or in
discharging any lien, bond or other claim relating in any way to a Vessel, and any sums
which that Finance Party may pay or guarantees which it may give to procure the release
of a Vessel from arrest or detention.
	 
	 	8.10	 	Taxes The Borrowers shall pay all Taxes to which all or any part of the
Indebtedness or any Finance Document may be at any time subject (other than Tax on a
Finance Party’s overall net income) and shall indemnify the Finance

37

 

	 	 	 	Parties, by payment to the Agent (for the account of the Finance Parties) on the
Agent’s written demand, against all liabilities, costs, claims and expenses
resulting from any omission to pay or delay in paying any such Taxes.

	9	 	Fees

	 	9.1	 	Commitment fee The Borrowers shall pay to the Agent (for the account of the
Lenders in proportion to their Commitments) a fee computed at the rate of thirty per
cent (30%) of the applicable Margin on the undrawn and uncancelled amount of the
Tranche Maximum Amounts from time to time from 26 September 2007 until the Commitment
Termination Date. The accrued commitment fee is payable on the last day of each fiscal
quarter following the 26 September 2007 and on the Commitment Termination Date.
	 
	 	9.2	 	Other fees The Borrowers shall pay to the Agent on behalf of the Lenders the
fees in the amount and at the times agreed in the Fee Letter.
	 
	 	9.3	 	Upsize Fees The Borrowers shall pay to the Agent on behalf of the Lenders the
fees in the amount and at the times agreed in each Upsize Notice.
	 
	 	9.4	 	Agency fee The Borrowers shall pay to the Agent for its own account an agency
fee in the amount and at the times agreed in the Fee Letter.

	10	 	Security and Application of Moneys

	 	10.1	 	Security Documents As security for the payment of the Indebtedness, the
Borrowers shall execute and deliver to the Security Trustee or cause to be executed and
delivered to the Security Trustee the following documents (other than those relating to
m.v. “Hugli Spirit” or to Hugli which are to be provided on or prior to the Tranche B
Step Up Date) in such forms and containing such terms and conditions as the Security
Trustee shall require:

	 	10.1.1	 	a first priority statutory mortgage over each of the Vessels together with a
collateral deed of covenants;
	 
	 	10.1.2	 	a first priority deed or deeds of assignment of the Insurances, Earnings, and
Requisition Compensation of each of the Vessels;

38

 

	 	10.1.3 (a)	 	an on demand guarantee and indemnity from Guarantor A in respect of the
obligations of the A Borrowers and any Collateral Transfer Borrowers, to be
delivered to the Security Trustee no later than thirty (30) days after the
Guarantor A Float Date; and
	 
	 	           (b)	 	an on demand guarantee and indemnity from
Guarantor B (i) in respect of the obligations of the A Borrowers of the
Tranche A Indebtedness from the Execution Date until the earlier of the
delivery of the guarantee and indemnity referred to in paragraph (a)
above and the end of the Facility Period and (ii) in respect of the
obligations of the B Borrowers of the Tranche B Indebtedness from the
Execution Date until the end of the Facility Period; and
	 
	 	10.1.4	 	a pledge of shares over each of the A Borrowers given by Guarantor A (or by a
Pledgor prior to the Guarantor A Float Date) and over each of the B Borrowers
given by Guarantor B (or Guarantor A following a Collateral Transfer in respect
of that B Borrower).

	 	 	 	In each case the Security Documents executed in respect of Tranche A Vessels or
A Borrowers will secure the Tranche A Indebtedness from time to time and the
Security Documents executed in respect of Tranche B Vessels or B Borrowers will
secure the Tranche B Indebtedness from time to time.

	 	10.2	 	Remittance of Earnings Immediately upon the occurrence of an Event of Default
the Borrowers shall procure that all Earnings are paid to such account(s) as the Agent
shall from time to time specify by notice in writing to the Borrowers.

	 	10.3	 	General application of moneys Whilst an Event of Default is continuing
unremedied and unwaived each of the Borrowers irrevocably authorises the Agent and the
Security Trustee to apply all sums which either of them may receive:

	 	10.3.1	 	pursuant to a sale or other disposition of a Vessel or any right, title or
interest in the Vessel; or
	 
	 	10.3.2	 	by way of payment of any sum in respect of the Insurances, Earnings or
Requisition Compensation; or
	 
	 	10.3.3	 	otherwise arising under or in connection with any Security Document,

39

 

	 	 	 	in accordance with Clause 3.4.3 or Clause 3.4.4 (if relevant) or otherwise in or
towards satisfaction, or by way of retention on account, of the Indebtedness as
follows:-

	 	(A)	 	in the case of any Security Document securing both Tranche A
and Tranche B:
	 
	 	(i)	 	first in payment of all outstanding fees and expenses of the
Agent and the Security Trustee;
	 
	 	(ii)	 	secondly in or towards payment of all outstanding interest hereunder;
	 
	 	(iii)	 	thirdly in or towards payment of all outstanding principal hereunder;
	 
	 	(iv)	 	fourthly in or towards payment of all other Indebtedness hereunder;
	 
	 	(v)	 	fifthly the balance, if any, shall be remitted to the Borrowers
or whoever may be entitled thereto,
	 
	 	(B)	 	in the case of any Security Document securing only Tranche A:
	 
	 	(i)	 	first in payment of all outstanding fees and expenses of the
Agent and the Security Trustee;
	 
	 	(ii)	 	secondly in or towards payment of all outstanding interest in
respect of Tranche A hereunder;
	 
	 	(iii)	 	thirdly in or towards payment of all outstanding principal of
Tranche A hereunder;
	 
	 	(iv)	 	fourthly in or towards payment to the Swap Provider of the
Master Agreement Liabilities;
	 
	 	(iv)	 	fifthly the balance, if any, shall be remitted to the A
Borrowers or whoever may be entitled thereto,
	 
	 	(C)	 	in the case of any Security Documents securing only Tranche B:
	 
	 	(i)	 	first in payment of all outstanding fees and expenses of the
Agent and the Security Trustee;

40

 

	 	(ii)	 	secondly in or towards payment of all outstanding interest in
respect of Tranche B hereunder;
	 
	 	(iii)	 	thirdly in or towards payment of all outstanding principal of
Tranche B hereunder;
	 
	 	(iv)	 	fourthly the balance, if any, shall be remitted to the B
Borrowers or whoever may be entitled thereto.

	11	 	Representations and Warranties
	 
	 	 	Each of the Borrowers represents and warrants to each of the Finance Parties at the
Execution Date and (by reference to the facts and circumstances then pertaining) at the date
of each Drawdown Notice, at each Drawdown Date and at each Interest Payment Date as follows
(except that the representation and warranty contained at Clause 11.6 shall only be made on
the First Drawdown Date and that the representations and warranties contained at Clause 11.2
and 11.21 shall only be made on the Execution Date).

	 	11.1	 	Status and Due Authorisation Each of the Security Parties is a corporation
duly incorporated under the laws of its jurisdiction of incorporation with power to
enter into the Finance Documents and to exercise its rights and perform its obligations
under the Finance Documents and all corporate and other action required to authorise
its execution of the Finance Documents and its performance of its obligations
thereunder has been duly taken.
	 
	 	11.2	 	No Deductions or Withholding Under the laws of the Security Parties’
respective jurisdictions of incorporation or formation in force at the date hereof,
none of the Security Parties will be required to make any deduction or withholding from
any payment it may make under any of the Finance Documents.
	 
	 	11.3	 	Claims Pari Passu Under the laws of the Security Parties’ respective
jurisdictions of incorporation in force at the date hereof, the Indebtedness will, to
the extent that it exceeds the realised value of any security granted in respect of the
Indebtedness, rank at least pari passu with all the Security Parties’ other unsecured
indebtedness save that which is preferred solely by any bankruptcy, insolvency or other
similar laws of general application.

41

 

	 	11.4	 	No Immunity In any proceedings taken in any of the Security Parties’
respective jurisdictions of incorporation or formation in relation to any of the
Finance Documents, none of the Security Parties will be entitled to claim for itself or
any of its assets immunity from suit, execution, attachment or other legal process.
	 
	 	11.5	 	Governing Law and Judgments In any proceedings taken in any of the Security
Parties’ jurisdiction of incorporation or formation in relation to any of the Finance
Documents in which there is an express choice of the law of a particular country as the
governing law thereof, that choice of law and any judgment or (if applicable) arbitral
award obtained in that country will be recognised and enforced.
	 
	 	11.6	 	Validity and Admissibility in Evidence As at the date hereof, all acts,
conditions and things required to be done, fulfilled and performed in order (a) to
enable each of the Security Parties lawfully to enter into, exercise its rights under
and perform and comply with the obligations expressed to be assumed by it in the
Finance Documents, (b) to ensure that the obligations expressed to be assumed by each
of the Security Parties in the Finance Documents are legal, valid and binding and (c)
to make the Finance Documents admissible in evidence in the jurisdictions of
incorporation of each of the Security Parties, have been done, fulfilled and performed.
	 
	 	11.7	 	No Filing or Stamp Taxes Under the laws of the Security Parties’ respective
jurisdictions of incorporation or formation in force at the date hereof, it is not
necessary that any of the Finance Documents be filed, recorded or enrolled with any
court or other authority in its jurisdiction of incorporation (other than the Registrar
of Companies for England and Wales or the relevant maritime registry, to the extent
applicable) or that any stamp, registration or similar tax be paid on or in relation to
any of the Finance Documents.
	 
	 	11.8	 	Binding Obligations The obligations expressed to be assumed by each of the
Security Parties in the Finance Documents are legal and valid obligations, binding on
each of them in accordance with the terms of the Finance Documents and no limit on any
of their powers will be exceeded as a result of the borrowings, granting of security or
giving of guarantees contemplated by the Finance Documents or the performance by any of
them of any of their obligations thereunder.

42

 

	 	11.9	 	No Winding-up Neither the Borrowers nor the Guarantors have taken any
corporate action nor have any other steps been taken or legal proceedings been started
or (to the best of the Borrowers’ knowledge and belief) threatened against the
Borrowers or the Guarantors for their winding-up, dissolution, administration or
reorganisation or for the appointment of a receiver, administrator, administrative
receiver, trustee or similar officer of it or of any or all of its assets or revenues
which might have a material adverse effect on the business or financial condition of
the relevant Group taken as a whole.
	 
	 	11.10	 	Solvency

	 	11.10.1	 	Neither the Borrowers, the Guarantors nor either Group taken as a whole is
unable, or admits or has admitted its inability, to pay its debts or has
suspended making payments in respect of any of its debts.
	 
	 	11.10.2	 	Neither the Borrowers nor the Guarantors by reason of actual or anticipated
financial difficulties, has commenced, or intends to commence, negotiations
with one or more of its creditors with a view to rescheduling any of its
indebtedness.
	 
	 	11.10.3	 	The value of the assets of each of the Borrowers, the Guarantors and each
Group taken as a whole is not less than the liabilities of such entity or such
Group taken as a whole (as the case may be) (taking into account contingent and
prospective liabilities).
	 
	 	11.10.4	 	No moratorium has been, or may, in the reasonably foreseeable future be,
declared in respect of any indebtedness of the Borrowers or the Guarantors.

	 	11.11	 	No Material Defaults

	 	11.11.1	 	Without prejudice to Clause 11.11.2, neither the Borrowers nor the
Guarantors is in breach of or in default under any agreement to which it is a
party or which is binding on it or any of its assets to an extent or in a
manner which might have a material adverse effect on the business or financial
condition of either of the Guarantors.

43

 

	 	11.11.2	 	No Event of Default is continuing or might reasonably be expected to result
from the advance of any Drawing.

	 	11.12	 	No Material Proceedings No action or administrative proceeding of or before
any court, arbitral body or agency which is not covered by adequate insurance or which
might have a material adverse effect on the business or financial condition of either
Group taken as a whole has been started or is reasonably likely to be started.
	 
	 	11.13	 	Guarantors’ Accounts All financial statements relating to the Guarantors
required to be delivered under Clause 9 of the respective Guarantees, were each
prepared in accordance with GAAP, give (in conjunction with the notes thereto) a true
and fair view of (in the case of annual financial statements) or fairly represent (in
the case of quarterly accounts) the financial condition of each of the Guarantors at
the date as of which they were prepared and the results of each of the Guarantors
operations during the financial period then ended.
	 
	 	11.14	 	No Material Adverse Change Since the publication of the last financial
statements relating to each of the Guarantors delivered pursuant to Clause 9 of the
respective Guarantees, there has been no change that has a Material Adverse Effect.
	 
	 	11.15	 	No Undisclosed Liabilities As at the date to which the Guarantor’s Accounts
were prepared neither the Borrowers nor the Guarantors had any material liabilities
(contingent or otherwise) which were not disclosed thereby (or by the notes thereto) or
reserved against therein nor any unrealised or anticipated losses arising from
commitments entered into by it which were not so disclosed or reserved against therein.
	 
	 	11.16	 	No Obligation to Create Security The execution of the Security Documents by
the Security Parties and their exercise of their rights and performance of their
obligations thereunder will not result in the existence of nor oblige the Borrowers or
the Guarantors to create any Encumbrance over all or any of their present or future
revenues or assets, other than pursuant to the Finance Documents.
	 
	 	11.17	 	No Breach The execution of the Finance Documents by each of the Security
Parties and their exercise of their rights and performance of their obligations

44

 

	 	 	 	under any of the Finance Documents do not constitute and will not result in any
breach of any agreement or treaty to which any of them is a party.
	 
	 	11.18	 	Security Each of the Security Parties is the legal and beneficial owner of
all assets and other property which it purports to charge, mortgage, pledge, assign or
otherwise secure pursuant to each Finance Document and those Finance Documents to which
it is a party create and give rise to valid and effective security having the ranking
expressed in those Finance Documents.
	 
	 	11.19	 	Necessary Authorisations The Necessary Authorisations required by each
Security Party are in full force and effect, and each Security Party is in compliance
with the material provisions of each such Necessary Authorisation relating to it and,
to the best of its knowledge, none of the Necessary Authorisations relating to it are
the subject of any pending or threatened proceedings or revocation.
	 
	 	11.20	 	Money Laundering Any amount borrowed hereunder, and the performance of the
obligations of the Security Parties under the Finance Documents, will be for the
account of members of the Groups and will not involve any breach by any of them of any
law or regulatory measure relating to “money laundering” as defined in Article 1 of the
Directive (91/308/EEC) of the Council of the European Communities.
	 
	 	11.21	 	Disclosure of material facts The Borrowers are not aware of any material
facts or circumstances which have not been disclosed to the Agent and which might, if
disclosed, have reasonably been expected to adversely affect the decision of a person
considering whether or not to make loan facilities of the nature contemplated by this
Agreement available to the Borrowers.
	 
	 	11.22	 	Use of Facility The Facility will be used for the purposes specified in the
Recital.
	 
	 	11.23	 	Representations Limited The representation and warranties of the Borrowers in
this Clause 11 are subject to:

	 	11.23.1	 	the principle that equitable remedies are remedies which may be granted or
refused at the discretion of the court;

45

 

	 	11.23.2	 	the limitation of enforcement by laws relating to bankruptcy, insolvency,
liquidation, reorganisation, court schemes, moratoria, administration and other
laws generally affecting or limiting the rights of creditors;
	 
	 	11.23.3	 	the time barring of claims under any applicable limitation acts;
	 
	 	11.23.4	 	the possibility that a court may strike out provisions for a contract as
being invalid for reasons of oppression, undue influence or similar; and
	 
	 	11.23.5	 	any other reservations or qualifications of law expressed in any legal
opinions obtained by the Agent in connection with the Facility.

	12	 	Undertakings and Covenants
	 
	 	 	The undertakings and covenants in this Clause 12 remain in force for the duration of the
Facility Period.

	 	12.1	 	General Undertakings

	 	12.1.1	 	Maintenance of Legal Validity The Borrowers shall obtain, comply with the
terms of and do all that is necessary to maintain in full force and effect all
authorisations, approvals, licences and consents required in or by the laws and
regulations of its jurisdiction of formation and all other applicable
jurisdictions, to enable them lawfully to enter into and perform their
obligations under the Finance Documents and to ensure the legality, validity,
enforceability or admissibility in evidence of the Finance Documents in their
jurisdiction of incorporation or organisation and all other applicable
jurisdictions.
	 
	 	12.1.2	 	Notification of Default The Borrowers shall promptly, upon becoming aware of
the same, inform the Agent in writing of the occurrence of any Event of Default
and, upon receipt of a written request to that effect from the Agent, confirm
to the Agent that, save as previously notified to the Agent or as notified in
such confirmation, no Event of Default has occurred.
	 
	 	12.1.3	 	Claims Pari Passu The Borrowers shall ensure that at all times the claims of
the Finance Parties against it under the Finance Documents rank at least pari
passu with the claims of all its other unsecured creditors save

46

 

	 	 	 	those whose claims are preferred by any bankruptcy, insolvency, liquidation,
winding-up or other similar laws of general application.
	 
	 	12.1.4	 	Management of Vessels The Borrowers shall ensure that m.v. “NASSAU SPIRIT”
is at all times technically and commercially managed either by a company
controlled by OAO Sovcomflot or by a management company controlled by Guarantor
B or by A/S Dampskibsselskabet Torm, or such other management company as may be
acceptable to the Agent acting on the instructions of the Majority Lenders.
The Borrowers shall ensure that each of the other Vessels is at all times
technically and commercially managed by a management company controlled by
Guarantor B or by A/S Dampskibsselskabet Torm or such other management company
as may be acceptable to the Agent acting on the instructions of the Majority
Lenders.
	 
	 	12.1.5	 	Classification The Borrowers shall ensure that each of the Vessels maintains
the highest classification required for the purpose of the relevant trade of
such Vessel which shall be with a Pre-Approved Classification Society, in each
case, free from any overdue recommendations and conditions affecting that
Vessel’s class.
	 
	 	12.1.6	 	Certificate of Financial Responsibility The Borrowers shall obtain and
maintain a certificate of financial responsibility in relation to any Vessel
which is to call at the United States of America.
	 
	 	12.1.7	 	Negative Pledge The Borrowers shall not create, or permit to subsist, any
Encumbrance (other than pursuant to the Security Documents) over all or any
part of the Vessels or the Insurances other than a Permitted Encumbrance.
	 
	 	12.1.8	 	Registration The Borrowers shall not change or permit a change to the flag
of the Vessels during the Facility Period other than to a Pre-Approved Flag or
under such other flag as may be approved by the Agent acting on the
instructions of the Majority Lenders, such approval not to be unreasonably
withheld or delayed.

47

 

	 	12.1.9	 	ISM and ISPS Compliance The Borrowers shall ensure that the relevant Company
complies in all material respects with the ISM Code and the ISPS Code or any
replacements thereof and in particular (without prejudice to the generality of
the foregoing) shall ensure that the Company holds (i) a valid and current
Document of Compliance issued pursuant to the ISM Code, (ii) a valid and
current SMC issued in respect of each Vessel pursuant to the ISM Code, and
(iii) an ISSC in respect of each Vessel, and the Borrowers shall promptly, upon
request, supply the Agent with copies of the same.
	 
	 	12.1.10	 	Necessary Authorisations Without prejudice to Clause 12.1.9 or any other
specific provision of the Security Documents relating to an Authorisation, the
Borrowers shall (i) obtain, comply with and do all that is necessary to
maintain in full force and effect all Necessary Authorisations if a failure to
do the same may cause a Material Adverse Effect; and (ii) promptly upon
request, supply certified copies to the Agent of all Necessary Authorisations.
	 
	 	12.1.11	 	Compliance with Applicable Laws The Borrowers shall comply with all
applicable laws to which they may be subject if a failure to do the same may
have a Material Adverse Effect.
	 
	 	12.1.12	 	Loans and Guarantees The Borrowers shall be permitted to make loans and
grant credit upon such terms as they may determine to any other member of
their Group and may otherwise give any guarantee or indemnity to procure
financing for other members of their Group, but shall not otherwise make any
loans or grant any credit (save in the ordinary course of business) or give
any guarantee or indemnity (except pursuant to the Security Documents);
Provided that the Borrowers shall not make any such loans or guarantees
following the occurrence of an Event of Default which is continuing unremedied
or unwaived.
	 
	 	12.1.13	 	Further Assurance The Borrowers shall at their own expense, promptly take
all such action as the Agent may reasonably require for the purpose of
perfecting or protecting any Finance Party’s rights with respect to the
security created or evidenced (or intended to be created or evidenced) by the
Security Documents.

48

 

	 	12.1.14	 	Other information The Borrowers will promptly supply to the Agent such
information and explanations as the Majority Lenders may from time to time
reasonably require in connection with the operation of the Vessels and any
reasonable financial information in connection with the Borrowers, and will
procure that the Agent be given the like information and explanations relating
to all other Security Parties.
	 
	 	12.1.15	 	Inspection of records Following the occurrence of an Event of Default which
is continuing unremedied and unwaived the Borrowers will permit the inspection
of their financial records and accounts on reasonable notice from time to time
during business hours by the Agent or its nominee.
	 
	 	12.1.16	 	Valuations The Borrowers will deliver to the Agent a Valuation of each of
the Vessels (i) on the due date for delivery of the annual Guarantors’ Accounts
pursuant to clause 9 of each Guarantee and (ii) following the occurrence of an
Event of Default which is continuing unremedied and unwaived on such other
occasions as the Agent may request.
	 
	 	12.1.17	 	Insurance The Borrowers shall ensure at their own expense throughout the
Facility Period that the Vessels are insured and operated in accordance with
the provisions set out in the relevant Security Documents.
	 
	 	12.1.18	 	Change of Control The Borrowers shall procure that throughout the Facility
Period:

	 	(a)	 	Ownership of Guarantor A Guarantor B shall
remain the one hundred per cent (100%) legal and beneficial owner of
Guarantor A (either directly or indirectly) until Guarantor A is listed
on a recognised stock exchange, and at all times Guarantor B shall
maintain a minimum of fifty one per cent (51%) voting and management
control in respect of Guarantor A;
	 
	 	(b)	 	Ownership of Guarantor B no person or no two
or more persons acting in concert (excluding Resolute Investments Inc.
or any successor thereto) acquire (a) legally or beneficially and
either directly or indirectly more than fifty per cent (50%) of the
entire issued share capital of Guarantor B; or (b) the right or ability
to

49

 

	 	 	 	control, either directly or indirectly, the affairs or the
composition of the majority of the board of directors (or equivalent
of it) of Guarantor B; and
	 
	 	(c)	 	Ownership of the Borrowers in respect of the
Borrowers (i) the relevant Pledgor or Guarantor A shall remain the
legal and beneficial owner of the A Borrowers and any Collateral
Transfer Borrowers following the relevant Collateral Transfer Date (ii)
Guarantor B shall remain the legal and beneficial owner of the B
Borrowers (other than, prior to the Tranche B Step Up Date, Hugli and
other than any Collateral Transfer Borrowers following the relevant
Collateral Transfer Date) and (iii) following the Tranche B Step Up
Date Guarantor B shall remain the legal and beneficial owner of Hugli
unless and until Hugli becomes a Collateral Transfer Borrower.

	 	12.1.19	 	“Know your customer” checks If:

	 	(a)	 	the introduction of or any change in (or in the
interpretation, administration or application of) any law or regulation
made after the date of this Agreement;
	 
	 	(b)	 	any change in the status of the Borrowers after
the Execution Date; or
	 
	 	(c)	 	a proposed assignment or transfer by a Lender
of any of its rights and obligations under this Agreement to a party
that is not a Lender prior to such assignment or transfer,

	 	 	 	obliges the Agent or any Lender (or, in the case of (c) above, any
prospective new Lender) to comply with “know your customer” or similar
identification procedures in circumstances where the necessary information
is not already available to it, the Borrowers shall promptly upon the
request of the Agent or any Lender supply, or procure the supply of, such
documentation and other evidence as is reasonably requested by the Agent
(for itself or on behalf of any Lender) or any Lender for itself (or, in the
case of (c) above, on behalf of any prospective new Lender) in

50

 

	 	 	 	Order for the Agent or that Lender (or, in the case of (c) above, any
prospective new Lender) to carry out and be satisfied it has complied with
all necessary “know your customer” or other similar checks under all
applicable laws and regulations pursuant to the transactions contemplated in
the Finance Documents.
	 
	 	12.1.20	 	Borrowings The Borrowers will (a) not (save hereunder) borrow from entities
other than members of either Group and (b) will only borrow from other members
of either Group on a subordinated and unsecured basis.
	 
	 	12.1.21	 	No Dividends The Borrowers shall not pay dividends whilst an Event of
Default has occurred and is continuing unremedied and unwaived.
	 
	 	12.1.22	 	No disposal of Assets The Borrowers shall not dispose of any material
assets other than as permitted in the Finance Documents.
	 
	 	12.1.23	 	Chartering The Borrowers shall not bareboat charter any of the Vessels
during the Facility Period.

	13	 	Events of Default

	 	13.1	 	Events of Default Each of the events or circumstances set out in this Clause
13.1 is an Event of Default.

	 	13.1.1	 	Borrowers’ Failure to Pay under this Agreement The Borrowers fail to pay any
amount of principal due from them under this Agreement at the time, in the
currency and otherwise in the manner specified herein provided that, if the
Borrowers can demonstrate to the reasonable satisfaction of the Agent that all
necessary instructions were given to effect such payment and the non-receipt
thereof is attributable solely to an error in the banking system, such payment
shall instead be deemed to be due, solely for the purposes of this paragraph,
within three (3) Business Days of the date on which it actually fell due under
this Agreement (if a payment of principal), five (5) Business Days (if a
payment of interest or fees) or ten (10) Business Days (if a sum payable on
demand); or

51

 

	 	13.1.2	 	Misrepresentation Any representation or statement made by any Security Party
in any Security Document to which it is a party or in any notice or other
document, certificate or statement delivered by it pursuant thereto or in
connection therewith is or proves to have been incorrect or misleading in any
material respect, where the circumstances causing the same give rise to a
Material Adverse Effect; or
	 
	 	13.1.3	 	Specific Covenants A Security Party fails duly to perform or comply with any
of the obligations expressed to be assumed by or procured by the Borrowers
under Clauses 12.1.7, 12.1.17 or 12.1.18 or undertaken by the Guarantors under
Clauses 8.1.1 or 8.1.2 of each of the Guarantees; or
	 
	 	13.1.4	 	Financial Covenants A Guarantor is in breach of that Guarantor’s financial
covenants set out in Clauses 8.1.1 or 8.1.2 of the applicable Guarantee at any
time; or
	 
	 	13.1.5	 	Other Obligations A Security Party fails duly to perform or comply with any
of the obligations expressed to be assumed by it in any Security Document
(other than those referred to in Clause 13.1.3 or Clause 13.1.4) and such
failure is not remedied within 30 days after the Agent has given notice thereof
to the Borrowers; or
	 
	 	13.1.6	 	Cross Default Any indebtedness of any Security Party is not paid when due
(or within any applicable grace period) or any indebtedness of any Security
Party is declared to be or otherwise becomes due and payable prior to its
specified maturity where (in either case) in the case of the Guarantors the
aggregate of all such unpaid or accelerated indebtedness (i) of Guarantor B is
equal to or greater than one hundred million Dollars ($100,000,000) or its
equivalent in any other currency; or (ii) of Guarantor A, is equal to or
greater than twenty five million Dollars ($25,000,000) or its equivalent in any
other currency; or
	 
	 	13.1.7	 	Insolvency and Rescheduling A Security Party is unable to pay its debts as
they fall due, commences negotiations with any one or more of its creditors
with a view to the general readjustment or rescheduling of

52

 

	 	 	 	its indebtedness or makes a general assignment for the benefit of its
creditors or a composition with its creditors; or

	 	13.1.8	 	Winding-up A Security Party takes any corporate action or other steps are
taken or legal proceedings are started for its winding-up, dissolution,
administration or re-organisation or for the appointment of a liquidator,
receiver, administrator, administrative receiver, conservator, custodian,
trustee or similar officer of it or of any or all of its revenues or assets or
any moratorium is declared or sought in respect of any of its indebtedness; or
	 
	 	13.1.9	 	Execution or Distress

	 	(a)	 	Any Security Party fails to comply with or
pay any sum due from it (within 30 days of such amount falling due)
under any final judgment or any final order made or given by any
court or other official body of a competent jurisdiction in an
aggregate (i) in respect of Guarantor B equal to or greater than one
hundred million Dollars ($100,000,000) or its equivalent in any other
currency; or (ii) in respect of Guarantor A equal to or greater than
twenty five million Dollars ($25,000,000) or its equivalent in any
other currency; or (iii) in respect of each Borrower equal to or
greater than five million Dollars ($5,000,000) or its equivalent in
any other currency being a judgment or order against which there is
no right of appeal or if a right of appeal exists, where the time
limit for making such appeal has expired.
	 
	 	(b)	 	Any execution or distress is levied
against, or an encumbrancer takes possession of, the whole or any
part of, the property, undertaking or assets of a Security Party in
an aggregate amount (i) in respect of Guarantor B equal to or greater
than one hundred million Dollars ($100,000,000) or its equivalent in
any other currency; or (ii) in respect of Guarantor A equal to or
greater than twenty five million Dollars ($25,000,000) or its
equivalent in any other currency; or (iii) in respect of each
Borrower equal to or greater than five million Dollars ($5,000,000)
or its equivalent in any other currency other than any execution or
distress which is

53

 

	 	 	 	being contested in good faith and which is either discharged within
30 days or in respect of which adequate security has been provided
within 30 days to the relevant court or other authority to enable
the relevant execution or distress to be lifted or released.
	 
	 	(c)	 	Notwithstanding the foregoing paragraphs
of this Clause 13.1.9, any levy of any distress on or any arrest,
condemnation, confiscation, requisition for title or use, compulsory
acquisition, seizure, detention or forfeiture of a Vessel (or any
part thereof) or any exercise or purported exercise of any lien or
claim on or against a Vessel where the release of or discharge the
lien or claim on or against such Vessel has not been procured within
30 days; or

	 	13.1.10	 	Similar Event Any event occurs which, under the laws of any jurisdiction,
has a similar or analogous effect to any of those events mentioned in Clauses
13.1.7, 13.1.8 and 13.1.9; or
	 
	 	13.1.11	 	Insurances Insurance is not maintained in respect of any Vessel in
accordance with the terms of the relevant Security Document in respect of that
Vessel; or
	 
	 	13.1.12	 	Class A Vessel has its classification withdrawn by the relevant
classification society PROVIDED THAT if such withdrawal is (in the opinion of
the Agent in its absolute discretion) capable of remedy such Event of Default
shall only occur if the Vessel’s classification is not reinstated to the
satisfaction of the Agent within twenty one (21) days; or

54

 

	 	13.1.13	 	Environmental Matters

	 	(a)	 	Any Environmental Claim is pending or
made against an Owner or any of an Owner’s Environmental Affiliates
or in connection with a Vessel, where such Environmental Claim has a
Material Adverse Effect.
	 
	 	(b)	 	Any actual Environmental Incident occurs
in connection with a Vessel, where such Environmental Incident has a
Material Adverse Effect; or

	 	13.1.14	 	Repudiation Any Security Party repudiates any Security Document to which it
is a party or does or causes to be done any act or thing evidencing an
intention to repudiate any such Security Document; or
	 
	 	13.1.15	 	Validity and Admissibility At any time any act, condition or thing required
to be done, fulfilled or performed in order:

	 	(a)	 	to enable any Security Party lawfully to
enter into, exercise its rights under and perform the respective
obligations expressed to be assumed by it in the Security Documents;
	 
	 	(b)	 	to ensure that the obligations expressed
to be assumed by each of the Security Parties in the Security
Documents are legal, valid and binding; or
	 
	 	(c)	 	to make the Security Documents admissible
in evidence in any applicable jurisdiction is not done, fulfilled or performed within 30 days after notification
from the Agent to the relevant Security Party requiring the same to be
done, fulfilled or performed; or

	 	13.1.16	 	Illegality At any time it is or becomes unlawful for any Security Party to
perform or comply with any or all of its obligations under the Security
Documents to which it is a party or any of the obligations of the Borrowers
hereunder are not or cease to be legal, valid and binding and such illegality
is not remedied or mitigated to the satisfaction of the

55

 

	 	 	 	Agent within thirty (30) days after it has given notice thereof to the
relevant Security Party; or
	 
	 	13.1.17	 	Material Adverse Change At any time there shall occur a change in the
business or operations of a Security Party or a change in the financial
condition of any Security Party which, in the reasonable opinion of the
Majority Lenders, materially impairs such Security Party’s ability to discharge
its obligations under the Security Documents in the manner provided therein and
such change, if capable of remedy, is not so remedied within thirty (30) days
of the delivery of a notice confirming such change by the Agent to the relevant
Security Party; or
	 
	 	13.1.18	 	Qualifications of Financial Statements The auditors of either Group qualify
their report on any audited consolidated financial statements of such Group in
any regard which, in the reasonable opinion of the Agent, has a Material
Adverse Effect; or
	 
	 	13.1.19	 	Conditions Subsequent if any of the conditions set out in Clause 3.6 is not
satisfied within thirty (30) days or such other time period specified by the
Agent in its discretion; or
	 
	 	13.1.20	 	Revocation or Modification of consents etc. if any Necessary Authorisation
which is now or which at any time during the Facility Period becomes necessary
to enable any of the Security Parties to comply with any of their obligations
in or pursuant to any of the Security Documents is revoked, withdrawn or
withheld, or modified in a manner which the Agent reasonably considers is, or
may be, prejudicial to the interests of a Finance Party in a material manner,
or if such Necessary Authorisation ceases to remain in full force and effect;
or
	 
	 	13.1.21	 	Curtailment of Business if the business of any of the Security Parties is
wholly or materially curtailed by any intervention by or under authority of any
government, or if all or a substantial part of the undertaking, property or
assets of any of the Security Parties is seized, nationalised, expropriated or
compulsorily acquired by or under authority of any government or any Security
Party disposes or threatens to dispose of a substantial part of its business or
assets; or

56

 

	 	13.1.22	 	Challenge to Registration if the registration of any Vessel or any Mortgage
becomes void or voidable or liable to cancellation or termination; or
	 
	 	13.1.23	 	War if the country of registration of any Vessel becomes involved in war
(whether or not declared) or civil war or is occupied by any other power and
the Agent reasonably considers that, as a result, the security conferred by the
Security Documents is materially prejudiced; or
	 
	 	13.1.24	 	Notice of Termination if a Guarantor gives notice to the Agent to determine
its obligations under a Guarantee.

	 	13.2	 	Acceleration If an Event of Default is continuing unremedied or unwaived the
Agent may (with the consent of the Majority Lenders) and shall (at the request of the
Majority Lenders) by notice to the Borrowers cancel any part of the Maximum Amount not
then advanced and:

	 	13.2.1	 	declare that the Facility, together with accrued interest, and all other
amounts accrued or outstanding under the Finance Documents are immediately due
and payable, whereupon they shall become immediately due and payable; and/or
	 
	 	13.2.2	 	declare that the Facility is payable on demand, whereupon it shall
immediately become payable on demand by the Agent; and/or
	 
	 	13.2.3	 	declare the Commitments terminated and the Maximum Amount reduced to zero.

	14	 	Assignment and Sub-Participation

	 	14.1	 	Lenders’ rights Subject to the Borrowers’ consent (not to be unreasonably
withheld or delayed) a Lender may assign any of its rights under this Agreement or sell
participations in its rights and obligations under this Agreement, or transfer by
novation any of its rights and obligations under this Agreement to any other branch or
Affiliate of that Lender or (subject to a minimum assignment amount of five million
Dollars ($5,000,000)) to any other bank or financial institution or special purpose
vehicles wholly owned by a bank or financial institution, and may grant
sub-participations in all or any part of its Commitment. Any such

57

 

	 	 	 	assignment or transfer must include a pro rata share of that Lender’s Commitment in
respect of Tranche A and Tranche B.

	 	14.2	 	Borrowers’ co-operation The Borrowers will co-operate fully with a Lender in
connection with any assignment, transfer or sub-participation by that Lender; will
execute and procure the execution of such documents as that Lender may require in that
connection; and irrevocably authorises any Finance Party to disclose to any proposed
assignee, transferee or sub-participant (whether before or after any assignment,
transfer or sub-participation and whether or not any assignment, transfer or
sub-participation shall take place) all information relating to the Security Parties,
the Facility, the Relevant Documents and the Vessels which any Finance Party may in its
discretion consider necessary or desirable (subject to any duties of confidentiality
applicable to the Lenders generally). Additionally, (but subject to the same duties of
confidentiality), any Lender may disclose the size and term of the Facility and the
names of each Security Party to any investor or potential investor in a securitisation
whether of a true sale, synthetic or other nature (or similar transaction of broadly
equivalent economic effect) of that Lender’s rights and obligations under the Finance
Documents or to any ratings agency, professional adviser, financial institution or
other person for the same purpose.
	 
	 	14.3	 	Rights of assignee Any assignee of a Lender shall (unless limited by the
express terms of the assignment) take the full benefit of every provision of the
Finance Documents benefiting that Lender PROVIDED THAT an assignment will only be
effective on notification by the Agent to that Lender and the assignee that the Agent
is satisfied it has complied with all necessary “Know your customer” or other similar
checks under all applicable laws and regulations in relation to the assignment to the
assignee.
	 
	 	14.4	 	Transfer Certificates If a Lender wishes to transfer any of its rights and
obligations under or pursuant to this Agreement, it may do so by delivering to the
Agent a duly completed Transfer Certificate, in which event on the Transfer Date:

	 	14.4.1	 	to the extent that that Lender seeks to transfer its rights and obligations,
the Borrowers (on the one hand) and that Lender (on the other) shall be
released from all further obligations towards the other;

58

 

	 	14.4.2	 	the Borrowers (on the one hand) and the transferee (on the other) shall
assume obligations towards the other identical to those released pursuant to
Clause 14.4.1; and
	 
	 	14.4.3	 	the Agent, each of the Lenders and the transferee shall have the same rights
and obligations between themselves as they would have had if the transferee had
been an original party to this Agreement as a Lender

PROVIDED THAT the Agent shall only be obliged to execute a Transfer Certificate
once:

	 	(a)	 	it is satisfied it has complied with all necessary “know your
customer” or other similar checks under all applicable laws and regulations in
relation to the transfer to the transferee; and
	 
	 	(b)	 	the transferee has paid to the Agent for its own account a
transfer fee of three thousand five hundred Dollars ($3,500).

The Agent shall, as soon as reasonably practicable after it has executed a Transfer
Certificate, send to the Borrowers a copy of that Transfer Certificate.

	 	14.5	 	Finance Documents Unless otherwise expressly provided in any Finance Document
or otherwise expressly agreed between a Lender and any proposed transferee and notified
by that Lender to the Agent on or before the relevant Transfer Date, there shall
automatically be assigned to the transferee with any transfer of a Lender’s rights and
obligations under or pursuant to this Agreement the rights of that Lender under or
pursuant to the Finance Documents (other than this Agreement) which relate to the
portion of that Lender’s rights and obligations transferred by the relevant Transfer
Certificate.
	 
	 	14.6	 	No assignment or transfer by the Borrowers or the Guarantors The Borrowers
and the Guarantors may not assign any of their rights or transfer any of its rights or
obligations under the Finance Documents without the prior written consent of the
Lenders.
	 
	 	14.7	 	Transfer of the Facility Agreement by KfW. Notwithstanding the provisions of
Clause 14.1 KfW may transfer all its rights and obligations under this Agreement to a
KfW Subsidiary with effect from 1 January 2008 or any later date. By

59

 

	 	 	 	signing this Agreement the Borrowers consents to such a transfer. KfW or the KfW
Subsidiary will inform the Borrowers of the date on which the transfer of KfW’s
rights and obligations to the KfW Subsidiary takes effect. In this connection the
following will apply:

	 	14.7.1	 	Deductions and Increased costs. If, by reason of circumstances already
existing at the transfer date, the Borrowers would be obliged to make a payment
to the KfW Subsidiary under Clauses 8.5, 17.2 or 17.3, it need pay the KfW
Subsidiary only such an amount as it would have been obliged to pay KfW if the
transfer had not occurred.
	 
	 	14.7.2	 	Costs. KfW will pay all costs incurred as a result of or in connection with
such transfer.

For the purposes of this Clause KfW Subsidiary means a company which within the
meaning of section 15 ff. German Stock Corporation Act (Aktiengesetz) is directly or
indirectly (i) majority owned (im Mehrheitsbesitz) by KfW or (ii) controlled
(abhängig) by KfW.

	 	14.8	 	Disclosure of information. In connection with any transfer under Clause 14.7
KfW may disclose confidential information to the KfW Subsidiary or its agents or its
legal advisors.
	 
	 	14.9	 	Mitigation If a transfer is to take place under Clause 14.7 then, without in
any way limiting the rights of KfW under Clauses 8.5, 17.2 or 17.3, KfW shall take
reasonable steps to mitigate any circumstances which arise and which would result in
any amount becoming payable under or pursuant to Clauses 8.5, 17.2 or 17.3 and it shall
co-operate in completing any procedural formalities necessary for the Borrowers to
obtain authorisation to make any payment under Clauses 8.5, 17.2 or 17.3 without a
deduction or withholding.

	15	 	The Agent, the Security Trustee and the Lenders

	 	15.1	 	Appointment

	 	15.1.1	 	Each Lender and the Swap Provider appoints the Agent to act as its agent
under and in connection with the Finance Documents and each Lender,

60

 

	 	 	 	the Agent and the Swap Provider appoints the Security Trustee to act as its
security agent for the purpose of the Security Documents.
	 
	 	15.1.2	 	Each Lender and the Swap Provider authorises the Agent, and each Lender, the
Agent and the Swap Provider authorises the Security Trustee, to exercise the
rights, powers, authorities and discretions specifically given to the Agent or
the Security Trustee (as the case may be) under or in connection with the
Finance Documents together with any other incidental rights, powers,
authorities and discretions.
	 
	 	15.1.3	 	Except where the context otherwise requires, references in this Clause 15 to
the “Agent” shall mean the Agent and the Security Trustee individually and
collectively.

	 	15.2	 	Authority Each Lender and the Swap Provider irrevocably authorises the
Security Trustee (in the case of Clause 15.2.1) and the Agent (in the case of Clauses
15.2.2, 15.2.3 and 15.2.4) (in each case subject to Clauses 15.4 and 15.18):

	 	15.2.1	 	to execute any Finance Document (other than this Agreement and other than the
Master Agreement) on its behalf;
	 
	 	15.2.2	 	to collect, receive, release or pay any money on its behalf;
	 
	 	15.2.3	 	acting on the instructions from time to time of the Majority Lenders (save
where the terms of any Security Document expressly provide otherwise) to give
or withhold any waivers, consents or approvals under or pursuant to any Finance
Document; and
	 
	 	15.2.4	 	acting on the instructions from time to time of the Majority Lenders (save
where the terms of any Security Document expressly provide otherwise) to
exercise, or refrain from exercising, any rights, powers, authorities or
discretions under or pursuant to any Finance Document.

The Agent shall have no duties or responsibilities as agent or as security agent
other than those expressly conferred on it by the Finance Documents and shall not be
obliged to act on any instructions from the Lenders or the Majority Lenders if to do
so would, in the opinion of the Agent, be contrary to any provision of the

61

 

Finance Documents or to any law, or would expose the Agent to any actual or
potential liability to any third party.

	 	15.3	 	Trust The Security Trustee agrees and declares, and each of the other Finance
Parties acknowledges, that, subject to the terms and conditions of this Clause 15.3,
the Security Trustee holds the Trust Property on trust for the Finance Parties
absolutely. Each of the other Finance Parties agrees that the obligations, rights and
benefits vested in the Security Trustee shall be performed and exercised in accordance
with this Clause 15.3. The Security Trustee shall have the benefit of all of the
provisions of this Agreement benefiting it in its capacity as security agent for the
Finance Parties, and all the powers and discretions conferred on trustees by the
Trustee Act 1925 (to the extent not inconsistent with this Agreement). In addition:

	 	15.3.1	 	the Security Trustee and any attorney, agent or delegate of the Security
Trustee may indemnify itself or himself out of the Trust Property against all
liabilities, costs, fees, damages, charges, losses and expenses sustained or
incurred by it or him in relation to the taking or holding of any of the Trust
Property or in connection with the exercise or purported exercise of the
rights, trusts, powers and discretions vested in the Security Trustee or any
other such person by or pursuant to the Security Documents or in respect of
anything else done or omitted to be done in any way relating to the Security
Documents other than as a result of its gross negligence or wilful misconduct;
	 
	 	15.3.2	 	the other Finance Parties acknowledge that the Security Trustee shall be
under no obligation to insure any property nor to require any other person to
insure any property and shall not be responsible for any loss which may be
suffered by any person as a result of the lack or insufficiency of any
insurance; and
	 
	 	15.3.3	 	the Finance Parties agree that the perpetuity period applicable to the trusts
declared by this Agreement shall be the period of eighty years from the date of
this Agreement.

	 	15.4	 	Limitations on authority Except with the prior written consent of all the
Lenders and the Swap Provider, the Agent shall not be entitled to:

62

 

	 	15.4.1	 	release or vary any security given for the Borrower’s obligations under this
Agreement; nor
	 
	 	15.4.2	 	waive, or agree to the reduction of, a payment of any sum of money payable by
any Security Party under the Finance Documents; nor
	 
	 	15.4.3	 	change the meaning of the expressions “Majority Lenders”, “Margin”,
“Commitment Commission” or “Default Rate”; nor
	 
	 	15.4.4	 	exercise, or refrain from exercising, any right, power, authority or
discretion, or give or withhold any consent, the exercise or giving of which
is, by the terms of this Agreement, expressly reserved to the Lenders; nor
	 
	 	15.4.5	 	extend the due date for the payment of any sum of money payable by any
Security Party under any Finance Document; nor
	 
	 	15.4.6	 	take or refrain from taking any step if the effect of such action or inaction
may lead to the increase of the obligations of a Lender under any Finance
Document; nor
	 
	 	15.4.7	 	agree to change the currency in which any sum is payable under any Finance
Document (other than in accordance with the terms of the relevant Finance
Document); nor
	 
	 	15.4.8	 	agree to amend this Clause 15.4.

	 	15.5	 	Liability Neither the Agent nor any of its directors, officers, employees or
agents shall be liable to the Lenders or the Swap Provider for anything done or omitted
to be done by the Agent under or in connection with any of the Relevant Documents
unless as a result of the Agent’s gross negligence or wilful misconduct.
	 
	 	15.6	 	Acknowledgement Each Lender and the Swap Provider acknowledges that:

	 	15.6.1	 	it has not relied on any representation made by the Agent or any of the
Agent’s directors, officers, employees or agents or by any other person acting
or purporting to act on behalf of the Agent to induce it to enter into any
Finance Document;

63

 

	 	15.6.2	 	it has made and will continue to make without reliance on the Agent, and
based on such documents and other evidence as it considers appropriate, its own
independent investigation of the financial condition and affairs of the
Security Parties in connection with the making and continuation of the
Facility;
	 
	 	15.6.3	 	it has made its own appraisal of the creditworthiness of the Security
Parties; and
	 
	 	15.6.4	 	the Agent shall not have any duty or responsibility at any time to provide it
with any credit or other information relating to any Security Party unless that
information is received by the Agent pursuant to the express terms of a Finance
Document.

Each Lender and the Swap Provider agrees that it will not assert nor seek to assert
against any director, officer, employee or agent of the Agent or against any other
person acting or purporting to act on behalf of the Agent any claim which it might
have against them in respect of any of the matters referred to in this Clause 15.6.

	 	15.7	 	Limitations on responsibility The Agent shall have no responsibility to any
Security Party or to any Lender on account of:

	 	15.7.1	 	the failure of a Lender or of any Security Party or to the Swap Provider to
perform any of its obligations under a Finance Document; nor
	 
	 	15.7.2	 	the financial condition of any Security Party; nor
	 
	 	15.7.3	 	the completeness or accuracy of any statements, representations or warranties
made in or pursuant to any Finance Document, or in or pursuant to any document
delivered pursuant to or in connection with any Finance Document; nor
	 
	 	15.7.4	 	the negotiation, execution, effectiveness, genuineness, validity,
enforceability, admissibility in evidence or sufficiency of any Finance
Document or of any document executed or delivered pursuant to or in connection
with any Finance Document.

	 	15.8	 	The Agent’s rights The Agent may:

64

 

	 	15.8.1	 	assume that all representations or warranties made or deemed repeated by any
Security Party in or pursuant to any Finance Document are true and complete,
unless, in its capacity as the Agent, it has acquired actual knowledge to the
contrary;
	 
	 	15.8.2	 	assume that no Default has occurred unless, in its capacity as the Agent, it
has acquired actual knowledge to the contrary;
	 
	 	15.8.3	 	rely on any document or notice believed by it to be genuine;
	 
	 	15.8.4	 	rely as to legal or other professional matters on opinions and statements of
any legal or other professional advisers selected or approved by it;
	 
	 	15.8.5	 	rely as to any factual matters which might reasonably be expected to be
within the knowledge of any Security Party on a certificate signed by or on
behalf of that Security Party; and
	 
	 	15.8.6	 	refrain from exercising any right, power, discretion or remedy unless and
until instructed to exercise that right, power, discretion or remedy and as to
the manner of its exercise by the Lenders (or, where applicable, by the
Majority Lenders) and unless and until the Agent has received from the Lenders
any payment which the Agent may require on account of, or any security which
the Agent may require for, any costs, claims, expenses (including legal and
other professional fees) and liabilities which it considers it may incur or
sustain in complying with those instructions.

	 	15.9	 	The Agent’s duties The Agent shall:

	 	15.9.1	 	if requested in writing to do so by a Lender, make enquiry and advise the
Lenders as to the performance or observance of any of the provisions of any
Finance Document by any Security Party or as to the existence of an Event of
Default; and
	 
	 	15.9.2	 	inform the Lenders promptly of any Event of Default of which the Agent has
actual knowledge.

	 	15.10	 	No deemed knowledge The Agent shall not be deemed to have actual knowledge
of the falsehood or incompleteness of any representation or warranty made or deemed
repeated by any Security Party or actual knowledge of the

65

 

occurrence of any Default unless a Lender or a Security Party shall have given
written notice thereof to the Agent in its capacity as the Agent. Any information
acquired by the Agent other than specifically in its capacity as the Agent shall not
be deemed to be information acquired by the Agent in its capacity as the Agent.

	 	15.11	 	Other business The Agent may, without any liability to account to the
Lenders or the Swap Provider, generally engage in any kind of banking or trust business
with a Security Party or with a Security Party’s subsidiaries or associated companies
or with a Lender as if it were not the Agent.
	 
	 	15.12	 	Indemnity The Lenders shall, promptly on the Agent’s request, reimburse the
Agent in their respective Proportionate Shares, for, and keep the Agent fully
indemnified in respect of all liabilities, damages, costs and claims sustained or
incurred by the Agent in connection with the Finance Documents, or the performance of
its duties and obligations, or the exercise of its rights, powers, discretions or
remedies under or pursuant to any Finance Document, to the extent not paid by the
Security Parties and not arising solely from the Agent’s gross negligence or wilful
misconduct.
	 
	 	15.13	 	Employment of agents In performing its duties and exercising its rights,
powers, discretions and remedies under or pursuant to the Finance Documents, the Agent
shall be entitled to employ and pay agents to do anything which the Agent is empowered
to do under or pursuant to the Finance Documents (including the receipt of money and
documents and the payment of money) and to act or refrain from taking action in
reliance on the opinion of, or advice or information obtained from, any lawyer, banker,
broker, accountant, valuer or any other person believed by the Agent in good faith to
be competent to give such opinion, advice or information.
	 
	 	15.14	 	Distribution of payments The Agent shall pay promptly to the order of the
Swap Provider any sums to which it is entitled under the Finance Documents and to the
order of each Lender that Lender’s Proportionate Share of every sum of money received
by the Agent pursuant to the Finance Documents (with the exception of any amounts
payable pursuant to Clause 9 and/or any Fee Letter and any amounts which, by the terms
of the Finance Documents, are paid to the Agent for the account of the Agent alone or
specifically for the account of the Swap Provider or of one or more Lenders) and until
so paid such amount shall be held

66

 

	 	 	 	by the Agent on trust absolutely for that Lender or the Swap Provider (as the case
may be).
	 
	 	15.15	 	Reimbursement The Agent shall have no liability to pay any sum to a Lender
or the Swap Provider (as the case may be) until it has itself received payment of that
sum. If, however, the Agent does pay any sum to a Lender or the Swap Provider (as the
case may be) on account of any amount prospectively due to that Lender or the Swap
Provider (as the case may be) pursuant to Clause 15.14 before it has itself received
payment of that amount, and the Agent does not in fact receive payment within five (5)
Business Days after the date on which that payment was required to be made by the terms
of the Finance Documents, that Lender or the Swap Provider (as the case may be) will,
on demand by the Agent, refund to the Agent an amount equal to the amount received by
it, together with an amount sufficient to reimburse the Agent for any amount which the
Agent may certify that it has been required to pay by way of interest on money borrowed
to fund the amount in question during the period beginning on the date on which that
amount was required to be paid by the terms of the Finance Documents and ending on the
date on which the Agent receives reimbursement.
	 
	 	15.16	 	Redistribution of payments Unless otherwise agreed between the Finance
Parties, if at any time a Finance Party receives or recovers by way of set-off, the
exercise of any lien or otherwise from any Security Party, an amount greater than that
Finance Party’s entitlement to any sum due from that Security Party under the Finance
Documents (the amount of the excess being referred to in this Clause 15.16 and in
Clause 15.17 as the “Excess Amount”) then:

	 	15.16.1	 	that Finance Party shall promptly notify the Agent (which shall promptly
notify each other Finance Party);

	 	15.16.2	 	that Finance Party shall pay to the Agent an amount equal to the Excess
Amount within ten (10) days of its receipt or recovery of the Excess Amount;
and
	 
	 	15.16.3	 	the Agent shall treat that payment as if it were a payment by the Security
Party in question on account of the sum due from that Security Party to the
Finance Party and shall account to the Finance Parties in respect of the Excess
Amount in accordance with the provisions of this Clause 15.16.

67

 

However, if a Finance Party has commenced any legal proceedings to recover sums
owing to it under the Finance Documents and, as a result of, or in connection with,
those proceedings has received an Excess Amount, the Agent shall not distribute any
of that Excess Amount to any other Finance Party which had been notified of the
proceedings and had the legal right to, but did not, join those proceedings or
commence and diligently prosecute separate proceedings to enforce its rights in the
same or another court.

	 	15.17	 	Rescission of Excess Amount If all or any part of any Excess Amount is
rescinded or must otherwise be restored to any Security Party or to any other third
party, the Finance Parties which have received any part of that Excess Amount by way of
distribution from the Agent pursuant to Clause 15.16 shall repay to the Agent for the
account of the Finance Party which originally received or recovered the Excess Amount,
the amount which shall be necessary to ensure that the Finance Parties share in the
amount of the receipt or payment retained in accordance with the provisions of the
Finance Documents, together with interest on that amount at a rate equivalent to that
(if any) paid by the Lender receiving or recovering the Excess Amount to the person to
whom that Lender is liable to make payment in respect of such amount, and Clause
15.16.3 shall apply only to the retained amount.
	 
	 	15.18	 	Instructions Where the Agent is authorised or directed to act or refrain
from acting in accordance with the instructions of the Lenders or of the Majority
Lenders each of the Lenders shall provide the Agent with instructions within three (3)
Business Days of the Agent’s request (which request may be made orally or in writing).
If a Lender does not provide the Agent with instructions within that period, that
Lender shall be bound by the decision of the Agent. Nothing in this Clause 15.18 shall
limit the right of the Agent to take, or refrain from taking, any action without
obtaining the instructions of the Lenders or the Majority Lenders if the Agent in its
discretion considers it necessary or appropriate to take, or refrain from taking, such
action in order to preserve the rights of the Lenders under or in connection with the
Finance Documents. In that event, the Agent will notify the Lenders of the action
taken by it as soon as reasonably practicable, and the Lenders agree to ratify any
action taken by the Agent pursuant to this Clause 15.18.

68

 

	 	15.19	 	Payments All amounts payable to a Lender or the Swap Provider (as the case
may be) under this Clause 15 shall be paid to such account at such bank as that Lender
or the Swap Provider (as the case may be) may from time to time direct in writing to
the Agent.
	 
	 	15.20	 	“Know your customer” checks Each Lender shall promptly upon the request of
the Agent supply, or procure the supply of, such documentation and other evidence as is
reasonably requested by the Agent (for itself) in order for the Agent to carry out and
be satisfied it has complied with all necessary “know your customer” or other similar
checks under all applicable laws and regulations pursuant to the transactions
contemplated in the Finance Documents.
	 
	 	15.21	 	Resignation Subject to a successor being appointed in accordance with this
Clause 15.21, the Agent may resign as agent and/or the Security Trustee may resign as
security agent at any time without assigning any reason by giving to the Borrowers and
the Finance Parties notice of its intention to do so, in which event the following
shall apply:

	 	15.21.1	 	with the consent of the Borrowers not to be unreasonably withheld (but such
consent not to be required at any time after an Event of Default which is
continuing unremedied and unwaived) the Finance Parties may within thirty (30)
days after the date of the notice from the Agent or the Security Trustee (as
the case may be) appoint a successor to act as agent and/or security agent or,
if they fail to do so with the consent of the Borrowers, not to be unreasonably
withheld (but such consent not to be required at any time after an Event of
Default which is continuing unremedied and unwaived), the Agent or the Security
Trustee (as the case may be) may appoint any other bank or financial
institution as its successor;
	 
	 	15.21.2	 	the resignation of the Agent or the Security Trustee (as the case may be)
shall take effect simultaneously with the appointment of its successor on
written notice of that appointment being given to the Borrowers and the Finance
Parties;

69

 

	 	15.21.3	 	the Agent or the Security Trustee (as the case may be) shall thereupon be
discharged from all further obligations as agent and/or security agent but
shall remain entitled to the benefit of the provisions of this Clause 15; and
	 
	 	15.21.4	 	the successor of the Agent or the Security Trustee (as the case may be) and
each of the other parties to this Agreement shall have the same rights and
obligations amongst themselves as they would have had if that successor had
been a party to this Agreement.

	 	15.22	 	No fiduciary relationship Except as provided in Clauses 15.3 and 15.14, the
Agent shall not have any fiduciary relationship with or be deemed to be a trustee of or
for any other person and nothing contained in any Finance Document shall constitute a
partnership between any two or more Finance Parties or between the Agent and any other
person.

16 Set-Off

	 	16.1	 	Set-off A Finance Party may set off any matured obligation due from the
Borrowers under any Finance Document (to the extent beneficially owned by that Finance
Party) against any matured obligation owed by that Finance Party to the Borrowers,
regardless of the place of payment, booking branch or currency of either obligation.
If the obligations are in different currencies, that Finance Party may convert either
obligation at a market rate of exchange in its usual course of business for the purpose
of the set-off.

	 	16.2	 	Master Agreement Rights The rights conferred on the Swap Provider by this
Clause 16 shall be in addition to and without prejudice or limitation to the rights of
netting and set off conferred on the Swap Provider by the Master Agreement.

17 Payments

	 	17.1	 	Payments Each amount payable by the Borrowers under a Finance Document shall
be paid to such account at such bank as the Agent may from time to time direct to the
Borrowers in the Currency of Account and in such funds as are customary at the time for
settlement of transactions in the relevant currency in the place of payment. Payment
shall be deemed to have been received by the Agent on the date on which the Agent
receives authenticated advice of receipt, unless that advice is received by the Agent
on a day other than a Business Day or at a

70

 

	 	 	 	time of day (whether on a Business Day or not) when the Agent in its reasonable
discretion considers that it is impossible or impracticable for the Agent to utilise
the amount received for value that same day, in which event the payment in question
shall be deemed to have been received by the Agent on the Business Day next
following the date of receipt of advice by the Agent.

	 	17.2	 	No deductions or withholdings Each payment (whether of principal or interest
or otherwise) to be made by the Borrowers under a Finance Document shall, subject only
to Clause 17.3, be made free and clear of and without deduction for or on account of
any Taxes or other deductions, withholdings, restrictions, conditions or counterclaims
of any nature.
	 
	 	17.3	 	Grossing-up If at any time any law requires (or is interpreted to require)
the Borrowers to make any deduction or withholding from any payment, or to change the
rate or manner in which any required deduction or withholding is made, the Borrowers
will promptly notify the Agent and, simultaneously with making that payment, will pay
to the Agent whatever additional amount (after taking into account any additional Taxes
on, or deductions or withholdings from, or restrictions or conditions on, that
additional amount) is necessary to ensure that, after making the deduction or
withholding, the relevant Finance Parties receive a net sum equal to the sum which they
would have received had no deduction or withholding been made.
	 
	 	17.4	 	Evidence of deductions If at any time the Borrowers are required by law to
make any deduction or withholding from any payment to be made by it under a Finance
Document, the Borrowers will pay the amount required to be deducted or withheld to the
relevant authority within the time allowed under the applicable law and will, no later
than thirty (30) days after making that payment, deliver to the Agent an original
receipt issued by the relevant authority, or other evidence reasonably acceptable to
the Agent, evidencing the payment to that authority of all amounts required to be
deducted or withheld.
	 
	 	17.5	 	Rebate If a Borrower pays any additional amount under Clause 17.3, and a
Finance Party subsequently receives a refund or allowance from any tax authority which
that Finance Party identifies as being referable to that increased amount so paid by
that Borrower, that Finance Party shall, as soon as reasonably practicable, pay to that
Borrower an amount equal to the amount of the refund or allowance

71

 

	 	 	 	received, if and to the extent that it may do so without prejudicing its right to
retain that refund or allowance and without putting itself in any worse financial
position than that in which it would have been had the relevant deduction or
withholding not been required to have been made. Nothing in this Clause 17.5 shall
be interpreted as imposing any obligation on any Finance Party to apply for any
refund or allowance nor as restricting in any way the manner in which any Finance
Party organises its tax affairs, nor as imposing on any Finance Party any obligation
to disclose to the Borrowers any information regarding its tax affairs or tax
computations.
	 
	 	17.6	 	Adjustment of due dates If any payment or transfer of funds to be made under
a Finance Document, other than a payment of interest on a Drawing, shall be due on a
day which is not a Business Day, that payment shall be made on the next succeeding
Business Day (unless the next succeeding Business Day falls in the next calendar month
in which event the payment shall be made on the next preceding Business Day). Any such
variation of time shall be taken into account in computing any interest in respect of
that payment.

	 	17.7	 	Control Account The Agent shall open and maintain on its books a control
account in the name of the Borrowers showing the advance of the Facility and the
computation and payment of interest and all other sums due under this Agreement. The
Borrowers’ obligations to repay the Facility and to pay interest and all other sums due
under this Agreement shall be evidenced by the entries from time to time made in the
control account opened and maintained under this Clause 17.7 and those entries will, in
the absence of manifest error, be conclusive and binding.

18 Notices

	 	18.1	 	Communications in writing Any communication to be made under or in connection
with this Agreement shall be made in writing and, unless otherwise stated, may be made
by fax or letter or (subject to Clause 18.6) electronic mail.

	 	18.2	 	Addresses The address and fax number (and the department or officer, if any,
for whose attention the communication is to be made) of each party to this Agreement
for any communication or document to be made or delivered under or in connection with
this Agreement are:

72

 

	 	18.2.1	 	in the case of the Borrowers, c/o Teekay Shipping (Canada) Ltd Suite 2000,
Bentall 5, 550 Burrard Street, Vancouver, B.C., Canada V6C 2K2 (fax no: +1 604
681 3011) marked for the attention of Vice President, Finance;
	 
	 	18.2.2	 	in the case of each Lender, those appearing opposite its name in Schedule 1;
	 
	 	18.2.3	 	in the case of the Agent, 437 Madison Avenue, New York, New York 10022,
United States of America (fax no: +1 212 421 4420) marked for the attention of
Shipping-Offshore and Oil Services Group; and
	 
	 	18.2.4	 	in the case of the Security Trustee, 437 Madison Avenue, New York, New York
10022, United States of America (fax no: + 1 212 421 4420) marked for the
attention of Shipping-Offshore and Oil Services Group;
	 
	 	18.2.5	 	in the case of the Swap Provider, Gerhart-Hauptmann-Platz 50, 20095 Hamburg,
(fax no: +49 40 3333 34307) marked for the attention of Hugh Baker/Frauke
Hay/Fiorina Riccobono and to Zinsderivateabwicklung OE 3652 (fax no: +49 40
3333 34086);

or any substitute address, fax number, department or officer as any party may notify
to the Agent (or the Agent may notify to the other parties, if a change is made by
the Agent) by not less than five (5) Business Days’ notice.

	 	18.3	 	Delivery Any communication or document made or delivered by one party to this
Agreement to another under or in connection this Agreement will only be effective:

	 	18.3.1	 	if by way of fax, when received in legible form; or
	 
	 	18.3.2	 	if by way of letter, when it has been left at the relevant address or five
(5) Business Days after being deposited in the post postage prepaid in an
envelope addressed to it at that address; or
	 
	 	18.3.3	 	if by way of electronic mail, in accordance with Clause 18.6;

and, if a particular department or officer is specified as part of its address
details provided under Clause 18.2, if addressed to that department or officer.

73

 

Any communication or document to be made or delivered to the Agent will be effective
only when actually received by the Agent.

All notices from or to the Borrowers shall be sent through the Agent.

	 	18.4	 	Notification of address and fax number Promptly upon receipt of notification
of an address, fax number or change of address, pursuant to Clause 18.2 or changing its
own address or fax number, the Agent shall notify the other parties to this Agreement.
	 
	 	18.5	 	English language Any notice given under or in connection with this Agreement
must be in English. All other documents provided under or in connection with this
Agreement must be:

     18.5.1 in English; or

	 	18.5.2	 	if not in English, and if so required by the Agent, accompanied by a
certified English translation and, in this case, the English translation will
prevail unless the document is a constitutional, statutory or other official
document.

	 	18.6	 	Electronic communication

	 	(a)	 	Any communication to be made in connection with this Agreement
may be made by electronic mail or other electronic means, if the Borrowers and
the relevant Finance Party:

	 	(i)	 	agree that, unless and until notified to the
contrary, this is to be an accepted form of communication;
	 
	 	(ii)	 	notify each other in writing of their
electronic mail address and/or any other information required to enable
the sending and receipt of information by that means; and
	 
	 	(iii)	 	notify each other of any change to their
address or any other such information supplied by them.

	 	(b)	 	Any electronic communication made between the Borrowers and the
relevant Finance Party will be effective only when actually received in

74

 

	 	 	 	readable form and acknowledged by the recipient (it being understood that
any system generated responses do not constitute an acknowledgement) and in
the case of any electronic communication made by the Borrowers to a Finance
Party only if it is addressed in such a manner as the Finance Party shall
specify for this purpose.

19 Partial Invalidity

If, at any time, any provision of a Finance Document is or becomes illegal, invalid or
unenforceable in any respect under any law of any jurisdiction, neither the legality,
validity or enforceability of the remaining provisions nor the legality, validity or
enforceability of such provision under the law of any other jurisdiction will in any way be
affected or impaired.

20 Remedies and Waivers

No failure to exercise, nor any delay in exercising, on the part of any Finance Party, any
right or remedy under a Finance Document shall operate as a waiver, nor shall any single or
partial exercise of any right or remedy prevent any further or other exercise or the
exercise of any other right or remedy. The rights and remedies provided in this Agreement
are cumulative and not exclusive of any rights or remedies provided by law.

21 Joint and several liability; liability of Hugli

	 	21.1	 	Nature of liability of the A Borrowers The representations, warranties,
covenants, obligations and undertakings of the A Borrowers contained in this Agreement
shall be joint and several so that each A Borrower shall be jointly and severally
liable with all the A Borrowers (including any Collateral Transfer Borrowers that
become A Borrowers) for all of the same and such liability shall not in any way be
discharged, impaired or otherwise affected by:

	 	21.1.1	 	any forbearance (whether as to payment or otherwise) or any time or other
indulgence granted to any other A Borrower or any other Security Party under or
in connection with any Finance Document;
	 
	 	21.1.2	 	any amendment, variation, novation or replacement of any other Finance
Document;

75

 

	 	21.1.3	 	any failure of any Finance Document to be legal valid binding and enforceable
in relation to any other A Borrower or any other Security Party for any reason;
	 
	 	21.1.4	 	the winding-up or dissolution of any other A Borrower or any other Security
Party;
	 
	 	21.1.5	 	the release (whether in whole or in part) of, or the entering into of any
compromise or composition with, any other A Borrower or any other Security
Party; or
	 
	 	21.1.6	 	any other act, omission, thing or circumstance which would or might, but for
this provision, operate to discharge, impair or otherwise affect such
liability.

	 	21.2	 	No rights as surety Until the Tranche A Indebtedness has been unconditionally
and irrevocably paid and discharged in full, each A Borrower agrees that it shall not,
by virtue of any payment made under this Agreement on account of the Indebtedness or by
virtue of any enforcement by a Finance Party of its rights under this Agreement or by
virtue of any relationship between, or transaction involving, the relevant A Borrower
and any other A Borrower or any other Security Party:

	 	21.2.1	 	exercise any rights of subrogation in relation to any rights, security or
moneys held or received or receivable by a Finance Party or any other person;
or
	 
	 	21.2.2	 	exercise any right of contribution from any other A Borrower or any other
Security Party under any Finance Document; or
	 
	 	21.2.3	 	exercise any right of set-off or counterclaim against any other A Borrower or
any other Security Party; or
	 
	 	21.2.4	 	receive, claim or have the benefit of any payment, distribution, security or
indemnity from any other A Borrower or any other Security Party; or
	 
	 	21.2.5	 	unless so directed by the Agent (when the relevant A Borrower will prove in
accordance with such directions), claim as a creditor of any other A

76

 

	 	 	 	Borrower or any other Security Party in competition with any Finance Party

and each A Borrower shall hold in trust for the Finance Parties and forthwith pay or
transfer (as appropriate) to the Agent any such payment (including an amount equal
to any such set-off), distribution or benefit of such security, indemnity or claim
in fact received by it.

	 	21.3	 	Nature of liability of the B Borrowers The representations, warranties,
covenants, obligations and undertakings of the B Borrowers contained in this Agreement
shall be joint and several so that each B Borrower shall be jointly and severally
liable with all the B Borrowers for all of the same and such liability shall not in any
way be discharged, impaired or otherwise affected by:

	 	21.3.1	 	any forbearance (whether as to payment or otherwise) or any time or other
indulgence granted to any other B Borrower or any other Security Party under or
in connection with any Finance Document;
	 
	 	21.3.2	 	any amendment, variation, novation or replacement of any other Finance
Document;
	 
	 	21.3.3	 	any failure of any Finance Document to be legal valid binding and enforceable
in relation to any other B Borrower or any other Security Party for any reason;
	 
	 	21.3.4	 	the winding-up or dissolution of any other B Borrower or any other Security
Party;
	 
	 	21.3.5	 	the release (whether in whole or in part) of, or the entering into of any
compromise or composition with, any other B Borrower or any other Security
Party; or
	 
	 	21.3.6	 	any other act, omission, thing or circumstance which would or might, but for
this provision, operate to discharge, impair or otherwise affect such
liability.

	 	21.4	 	No rights as surety Until the Tranche B Indebtedness has been unconditionally
and irrevocably paid and discharged in full, each B Borrower agrees that it shall not,
by virtue of any payment made under this Agreement on account of the

77

 

	 	 	 	Indebtedness or by virtue of any enforcement by a Finance Party of its rights under
this Agreement or by virtue of any relationship between, or transaction involving,
the relevant B Borrower and any other B Borrower or any other Security Party:

	 	21.4.1	 	exercise any rights of subrogation in relation to any rights, security or
moneys held or received or receivable by a Finance Party or any other person;
or
	 
	 	21.4.2	 	exercise any right of contribution from any other B Borrower or any other
Security Party under any Finance Document; or
	 
	 	21.4.3	 	exercise any right of set-off or counterclaim against any other B Borrower or
any other Security Party; or
	 
	 	21.4.4	 	receive, claim or have the benefit of any payment, distribution, security or
indemnity from any other B Borrower or any other Security Party; or
	 
	 	21.4.5	 	unless so directed by the Agent (when the relevant B Borrower will prove in
accordance with such directions), claim as a creditor of any other B Borrower
or any other Security Party in competition with any Finance Party

and each B Borrower shall hold in trust for the Finance Parties and forthwith pay or
transfer (as appropriate) to the Agent any such payment (including an amount equal
to any such set-off), distribution or benefit of such security, indemnity or claim
in fact received by it.

	 	21.5	 	Liability of Hugli It is acknowledged and agreed that Hugli shall only become
liable as a Borrower hereunder as and with effect from the Tranche B Step Up Date.
Prior to the Tranche B Step Up Date, notwithstanding anything to the contrary in the
Finance Documents, it shall have no liability thereunder, but shall assume all such
liabilities as and with effect from the Tranche B Step Up Date.

22 Miscellaneous

	 	22.1	 	No oral variations No variation or amendment of a Finance Document shall be
valid unless in writing and signed on behalf of all the Finance Parties.

78

 

	 	22.2	 	Further Assurance If any provision of a Finance Document shall be invalid or
unenforceable in whole or in part by reason of any present or future law or any
decision of any court, or if the documents at any time held by or on behalf of the
Finance Parties or any of them are considered by the Lenders for any reason
insufficient to carry out the terms of this Agreement, then from time to time the
Borrowers will promptly, on demand by the Agent, execute or procure the execution of
such further documents as in the opinion of the Lenders are necessary to provide
adequate security for the repayment of the Indebtedness.
	 
	 	22.3	 	Rescission of payments etc. Any discharge, release or reassignment by a
Finance Party of any of the security constituted by, or any of the obligations of a
Security Party contained in, a Finance Document shall be (and be deemed always to have
been) void if any act (including, without limitation, any payment) as a result of which
such discharge, release or reassignment was given or made is subsequently wholly or
partially rescinded or avoided by operation of any law.
	 
	 	22.4	 	Certificates Any certificate or statement signed by an authorised signatory
of the Agent purporting to show the amount of the Indebtedness (or any part of the
Indebtedness) or any other amount referred to in any Finance Document shall, save for
manifest error or on any question of law, be conclusive evidence as against the
Borrowers of that amount.
	 
	 	22.5	 	Counterparts This Agreement may be executed in any number of counterparts
each of which shall be original but which shall together constitute the same
instrument.
	 
	 	22.6	 	Contracts (Rights of Third Parties) Act 1999 A person who is not a party to
this Agreement has no right under the Contracts (Rights of Third Parties) Act 1999 to
enforce or to enjoy the benefit of any term of this Agreement.
	 
	 	22.7	 	Disclosure of Information In addition to the disclosure of information
permitted under Clause 14.2, each of the Borrowers authorises each Lender to disclose
any information and/or document(s) concerning its relationship with such Lender (i) to
authorities in any other countries where such Lender or any Affiliate is represented
and/or where any Lender or any Affiliate may be requested information by any regulatory
authority, when this shall be deemed necessary in order for such Lender or any
Affiliate to meet its requirements for the

79

 

	 	 	 	contribution to reduction or prevention of money laundering, terrorism and
corruption, and (ii) to any Affiliate of that Lender making it possible to
consolidate the client’s total commitments and offer the client any other products
offered by that Lender or any Affiliate, subject always to the duties of
confidentiality on the Lenders set out herein.

23 Law and Jurisdiction

	 	23.1	 	Governing law This Agreement shall in all respects be governed by and
interpreted in accordance with English law.
	 
	 	23.2	 	Jurisdiction For the exclusive benefit of the Finance Parties, the parties to
this Agreement irrevocably agree that the courts of England are to have jurisdiction to
settle any disputes which may arise out of or in connection with this Agreement and
that any proceedings may be brought in those courts.
	 
	 	23.3	 	Alternative jurisdictions Nothing contained in this Clause 23 shall limit the
right of the Finance Parties to commence any proceedings against the Borrowers in any
other court of competent jurisdiction nor shall the commencement of any proceedings
against the Borrowers in one or more jurisdictions preclude the commencement of any
proceedings in any other jurisdiction, whether concurrently or not.
	 
	 	23.4	 	Waiver of objections Each of the Borrowers irrevocably waives any objection
which it may now or in the future have to the laying of the venue of any proceedings in
any court referred to in this Clause 23, and any claim that those proceedings have been
brought in an inconvenient or inappropriate forum, and irrevocably agrees that a
judgment in any proceedings commenced in any such court shall be conclusive and binding
on it and may be enforced in the courts of any other jurisdiction.
	 
	 	23.5	 	Service of process Without prejudice to any other mode of service allowed
under any relevant law, each of the Borrowers:

	 	23.5.1	 	irrevocably appoints Teekay Shipping (UK) Ltd of 2nd Floor, 86
Jermyn Street, London SW1Y 6JD England as its agent for service of process in
relation to any proceedings before the English courts in connection with this
Agreement; and

80

 

	 	23.5.2	 	agrees that failure by a process agent to notify the Borrowers of the process
will not invalidate the proceedings concerned.

81

 

SCHEDULE 1: The Lenders and the Commitments

Tranche A

	 	 	 	 	 
	The Lenders	 	The
	 	 	Commitments
	 	 	(US$)
	 
	 	 	 	 
	Citibank N.A., London Branch
	 	 	18,970,414	 
	Citigroup Centre
	 	 	 	 
	33 Canada Square
	 	 	 	 
	Canary Wharf
	 	 	 	 
	London E14 5LB
	 	 	 	 
	 
	 	 	 	 
	For credit matters:
	 	 	 	 
	Attention: Simon Booth
	 	 	 	 
	Fax no: +44 20 7098 4327
	 	 	 	 
	Email: simon.booth@citi.com
	 	 	 	 
	 
	 	 	 	 
	For administration matters:
	 	 	 	 
	Attention: Lee Boden/Rob Brodie
	 	 	 	 
	Fax no: +44 20 7942 7512
	 	 	 	 
	Email: lee.boden@citi.com / rob.brodie@citi.com
	 	 	 	 
	 
	 	 	 	 
	ING Bank N.V., London branch
	 	 	18,970,414	 
	60 London Wall,
	 	 	 	 
	London EC2M 5TQ
	 	 	 	 
	 
	 	 	 	 
	For credit matters:
	 	 	 	 
	Attention: Adam Byrne / Robartus Krol
	 	 	 	 
	Fax no: +44 20 7767 7252
	 	 	 	 
	Email: adam.byrne@uk.ing.com
	 	 	 	 
	            robartus.krol@uk.ing.com
	 	 	 	 
	 
	 	 	 	 
	For administration matters:
	 	 	 	 
	Attention: Samantha Joyce / Ian Tofts
	 	 	 	 
	Fax no: +44 20 7767 7324
	 	 	 	 
	Email: samantha.joyce@uk.ing.com
	 	 	 	 
	            ian.tofts@uk.ing.com
	 	 	 	 
	 
	 	 	 	 
	Nordea Bank Norge ASA, Grand Cayman branch
	 	 	18,970,414	 
	437 Madison Avenue
	 	 	 	 
	New York
	 	 	 	 
	NY 10022
	 	 	 	 
	USA
	 	 	 	 
	 
	 	 	 	 
	For credit matters:
	 	 	 	 
	Attention: Hans Kjelsrud/Colleen Durkin
	 	 	 	 
	Fax no: +1 212 318 4420
	 	 	 	 
	Email: hans.kjelsrud@nordea.com
	 	 	 	 
	            colleen.durkin@nordea.com
	 	 	 	 

82

 

	 	 	 	 	 
	For administration matters:
	 	 	 	 
	Attention: Jacqueline Ng/Sonia Earle
	 	 	 	 
	Fax no: +1 212 318 9578/9596
	 	 	 	 
	Email: jackie.ng@nordea.com
	 	 	 	 
	 
	 	 	 	 
	BNP Paribas
	 	 	18,970,414	 
	Nordic Shipping Desk
	 	 	 	 
	Karl Johans Gate 7
	 	 	 	 
	P.O. Box 106 Sentrum
	 	 	 	 
	No-0102 Oslo
	 	 	 	 
	Norway
	 	 	 	 
	 
	 	 	 	 
	For credit matters:
	 	 	 	 
	Attention: Pierre de Fontenay/Patrik Hofseth
	 	 	 	 
	Fax no: +47 22 82 95 67
	 	 	 	 
	Email: pierre.defontenay@bnpparibas.com
	 	 	 	 
	            patrik.hofseth@bnpparibas.com
	 	 	 	 
	 
	 	 	 	 
	For administration matters:
	 	 	 	 
	Attention: Tove Brandt
	 	 	 	 
	Fax no: +47 22 82 95 11
	 	 	 	 
	Email: tove.brandt@bnpparibas.com
	 	 	 	 
	 
	 	 	 	 
	Fokus Bank (being the Norwegian branch of Danske Bank A/S)
	 	 	18,970,414	 
	PO Box 1170 Sentrum
	 	 	 	 
	N-0107 Oslo
	 	 	 	 
	Norway
	 	 	 	 
	 
	 	 	 	 
	Attention: Shipping Dept
	 	 	 	 
	Fax no: +47 85 40 7990
	 	 	 	 
	Email: shippingoffshore@fokus.no
	 	 	 	 
	 
	 	 	 	 
	HSH Nordbank AG
	 	 	18,970,414	 
	Shipping Department
	 	 	 	 
	West European & North American Clients
	 	 	 	 
	Gerhart-Hauptmann-Platz 50
	 	 	 	 
	20095 Hamburg
	 	 	 	 
	 
	 	 	 	 
	For credit matters:
	 	 	 	 
	Attention: Hugh Baker / Frauke Hay /
	 	 	 	 
	Fiorina Riccobono
	 	 	 	 
	Fax no: +49 40 3333 34307
	 	 	 	 
	Email: hugh.baker@hsh-nordbank.com
	 	 	 	 
	            frauke.hay@hsh-nordbank.com
	 	 	 	 
	            fiorina.riccobono@hsh-nordbank.com
	 	 	 	 
	 
	 	 	 	 
	For administration matters:
	 	 	 	 
	Attention: Martina Timm
	 	 	 	 
	Fax no: +49 40 3333-34307
	 	 	 	 
	Email: martina.timm@hsh-nordbank.com
	 	 	 	 

83

 

	 	 	 	 	 
	KfW
	 	 	17,615,385	 
	Palmengartenstrasse 5-9
	 	 	 	 
	60325 Frankfurt am Main
	 	 	 	 
	Germany
	 	 	 	 
	 
	 	 	 	 
	For credit matters.
	 	 	 	 
	Attention: Klaus Benkau
	 	 	 	 
	Fax no: +49 69 7431 9413
	 	 	 	 
	Email: klaus.benkau@kfw.de
	 	 	 	 
	 
	 	 	 	 
	For administration matters:
	 	 	 	 
	Attention: Jasmine Ross
	 	 	 	 
	Fax no: +49 69 7431 3768
	 	 	 	 
	Email: jasmine.ross@.kfw.de
	 	 	 	 
	 
	 	 	 	 
	Morgan Stanley Bank
	 	 	17,615,385	 
	2500 Lake Park Blvd., Suite 300 C
	 	 	 	 
	West Valley City
	 	 	 	 
	Utah 84120
	 	 	 	 
	USA
	 	 	 	 
	 
	 	 	 	 
	For credit matters:
	 	 	 	 
	Attention: Edward Henley/Alice Lee
	 	 	 	 
	Fax no: 001 718 754 7250
	 	 	 	 
	Email: edward.henley@morganstanley.com
	 	 	 	 
	            alice.lee@morganstanley.com
	 	 	 	 
	 
	 	 	 	 
	For administration matters:
	 	 	 	 
	Attention: Martin Telford/Ly Dinh
	 	 	 	 
	Fax no: 001 718 233 2140
	 	 	 	 
	Email: ldnnyservicing@morganstanley.com
	 	 	 	 
	 
	 	 	 	 
	Scotiabank Europe plc
	 	 	13,279,290	 
	 
	For credit matters:
	 	 	 	 
	33 Finsbury Square
	 	 	 	 
	London EC2A 1BB
	 	 	 	 
	United Kingdom
	 	 	 	 
	 
	 	 	 	 
	Attention: David Sparkes/Thomas Erichsen
	 	 	 	 
	Fax no: +44 207 454 9019
	 	 	 	 
	Email: david_sparkes@scotiacapital.com
	 	 	 	 
	            thomas_erichsen@scotiacapital.com
	 	 	 	 
	 
	 	 	 	 
	For administration matters
	 	 	 	 
	720 King Street
	 	 	 	 
	West Toronto
	 	 	 	 
	Canada
	 	 	 	 
	 
	 	 	 	 
	Attention: Savi Rampat/Tony Sposato
	 	 	 	 
	Fax no: +44 207 826 5666
	 	 	 	 
	Email: savi_rampat@scotiacapital.com
	 	 	 	 

84

 

	 	 	 	 	 
	tony_sposato@scotiacapital.com
	 	 	 	 
	 
	 	 	 	 
	Deutsche Bank AG, Filiale Deutschland
	 	 	13,279,290	 
	Geschäft
	 	 	 	 
	Ludwig Erhard Str.1
	 	 	 	 
	20459 Hamburg
	 	 	 	 
	Germany
	 	 	 	 
	 
	 	 	 	 
	For credit matters:
	 	 	 	 
	Attention: Jörg Zickermann/Kerstin Seefeld
	 	 	 	 
	Fax no: + 49 40 3701 46049
	 	 	 	 
	Email: joerg.zickermann@db.com
	 	 	 	 
	            kerstin.seefeld@db.com
	 	 	 	 
	 
	 	 	 	 
	For administration matters.
	 	 	 	 
	Attention: Anja Eggert
	 	 	 	 
	Fax no: +49 40 3701 4649
	 	 	 	 
	Email: anja.eggert@db.com
	 	 	 	 
	 
	 	 	 	 
	Lloyds TSB Bank plc
	 	 	13,279,290	 
	 
	For credit matters:
	 	 	 	 
	10 Gresham Street
	 	 	 	 
	London EC2V 7EA
	 	 	 	 
	United Kingdom
	 	 	 	 
	Attention: Shelley Morrison/Tony Stevens
	 	 	 	 
	Fax no: +44 207 158 3273/3271
	 	 	 	 
	Email: shelly.morrison@lloydstsb.co.uk
	 	 	 	 
	            tony.stevens@lloydstsb.co.uk
	 	 	 	 
	 
	 	 	 	 
	For administration matters:
	 	 	 	 
	Bank House
	 	 	 	 
	Wine Street
	 	 	 	 
	Bristol, BSI 2AN
	 	 	 	 
	Fax no: +44 207 158 3204
	 	 	 	 
	Email: LoansAdmin_s-z@lloydstsb.co.uk
	 	 	 	 
	 
	 	 	 	 
	Sumitomo Mitsui Banking
	 	 	13,279,290	 
	Corporation, Brussels Branch
	 	 	 	 
	 
	For credit matters:
	 	 	 	 
	99 Queen Victoria Street
	 	 	 	 
	London EC4V 4EH
	 	 	 	 
	United Kingdom
	 	 	 	 
	Attention: Simon Murrell/Robert Taylor
	 	 	 	 
	Fax No: +44 207 786 101
	 	 	 	 
	Email: simon_murrell@gb.smbcgroup.com
	 	 	 	 
	            robert_taylor@gb.smbcgroup.com
	 	 	 	 
	 
	 	 	 	 
	with copy to:
	 	 	 	 
	 
	 	 	 	 
	20, rue de la Ville l’Eveque
	 	 	 	 

85

 

	 	 	 	 	 
	75008 Paris
	 	 	 	 
	France
	 	 	 	 
	Attention: Guillaume Dufour/Gwenael Delattre
	 	 	 	 
	Fax No: +33 1 44 71 40 50
	 	 	 	 
	Email: guillaume_dufour@fr.smbcgroup.com
	 	 	 	 
	            gwenael_delattre@fr.smbcgroup.com
	 	 	 	 
	 
	 	 	 	 
	and
	 	 	 	 
	 
	 	 	 	 
	Avenue des Arts 58, Box 18
	 	 	 	 
	1000 Brussels
	 	 	 	 
	Belgium
	 	 	 	 
	Attention: Francoise Bouchat/Nadine Boudart
	 	 	 	 
	Fax No: +32 2 502.07.80
	 	 	 	 
	Email: francoise_bouchat@be.smbcgroup.com
	 	 	 	 
	            nadine_boudart@be.smbcgroup.com
	 	 	 	 
	 
	 	 	 	 
	For administration matters:
	 	 	 	 
	 
	 	 	 	 
	European Loan Operations
	 	 	 	 
	Attention: David Griffiths/Jo Dunnage
	 	 	 	 
	99 Queen Victoria Street
	 	 	 	 
	London EC4V 4EH
	 	 	 	 
	Fax: + 44 207 786 1569
	 	 	 	 
	(fax correspondence only)
	 	 	 	 
	 
	 	 	 	 
	Swedbank AB (publ)
	 	 	13,279,290	 
	Brukebergstorg 8
	 	 	 	 
	SE 105 34 Stockholm
	 	 	 	 
	Sweden
	 	 	 	 
	 
	Contact credit and legal matters:
	 	 	 	 
	Swedbank AB (publ)
	 	 	 	 
	Marine Finance, E421
	 	 	 	 
	Regeringsgatan 13
	 	 	 	 
	SE 105 34, Stockholm, Sweden
	 	 	 	 
	Attention: Dagobert Billsten/Karin Nilsson
	 	 	 	 
	Fax No: +46 8 723 7150
	 	 	 	 
	Emails: dagobert.billsten@swedbank.se
	 	 	 	 
	            karin.nilsson@swedbank.se
	 	 	 	 
	 
	 	 	 	 
	Contact, administrative matters:
	 	 	 	 
	Swedbank AB (publ)
	 	 	 	 
	Marine Finance Credit Administration, E768
	 	 	 	 
	Regeringsgatan 13
	 	 	 	 
	SE 105 34, Stockholm, Sweden
	 	 	 	 
	Attention: Nina Kyttä / Richard Lönnqvist
	 	 	 	 
	Fax No.: +46 8 700 8132
	 	 	 	 
	Email: creditadmin@swedbank.se
	 	 	 	 

86

 

	 	 	 	 	 
	Alliance & Leicester Commercial
	 	 	8,130,178	 
	Finance plc
	 	 	 	 
	Carlton Park, Narborough
	 	 	 	 
	Leicester
	 	 	 	 
	LE19 0AL
	 	 	 	 
	United Kingdom
	 	 	 	 
	 
	 	 	 	 
	For credit matters:
	 	 	 	 
	3rd Floor, 120 New Cavendish Street
	 	 	 	 
	London W1W 6XX
	 	 	 	 
	Attention: James MacDonald/
	 	 	 	 
	            Harminder Randhawa
	 	 	 	 
	Fax no: +44 207 907 3664
	 	 	 	 
	Email: james.macdonald@alliance-leicester.co.uk
	 	 	 	 
	            harminder.randhawa@alliance-leicester.co.uk
	 	 	 	 
	 
	 	 	 	 
	For administration matters:
	 	 	 	 
	298 Deansgate
	 	 	 	 
	Manchester M3 4HH
	 	 	 	 
	Attention: Keith Sullivan/Shane Shehade
	 	 	 	 
	Fax no: +44 161 953 3517
	 	 	 	 
	Email: keith.sullivan@alliance-leicester.co.uk
	 	 	 	 
	            shane.shehade@alliance-leicester.co.uk
	 	 	 	 
	 
	 	 	 	 
	Calyon
	 	 	5,420,118	 
	For administration matters:
	 	 	 	 
	9. Quai, du President Paul Doumer
	 	 	 	 
	92920 Paris La Defense
	 	 	 	 
	France
	 	 	 	 
	Fax no: +33 141 89 19 34
	 	 	 	 
	Attention: Middle Office/Shipping/
	 	 	 	 
	M. Godet-Couery/Ms Regine Maugin/Ms Marie-Claire Vanderperre
	 	 	 	 
	Email: sylvie.godetcouery@calyon.com
	 	 	 	 
	            regine.maugin@calyon.com
       marieclaire.vanderperre@calyon.com
	 	 	 	 
	 
	 	 	 	 
	For credit matters:
	 	 	 	 
	Broadwalk House
	 	 	 	 
	5 Appold Street
	 	 	 	 
	London EC2A 2DA
	 	 	 	 
	Fax no: +44 207 214 6689
	 	 	 	 
	Attention: Thiband Escoffier/Jerome Duval
	 	 	 	 
	Email: thibaud.escoffier@uk.calyon.com
	 	 	 	 
	            jerome.duval@uk.calyon.com
	 	 	 	 
	Total
	 	 	229,000,000	 

87

 

Tranche B

	 	 	 	 	 
	 	 	The
	The Lenders	 	Commitments
	 	 	(US$)
	 
	 	 	 	 
	Citibank N.A., London Branch
	 	 	51,029,586	 
	Citigroup Centre
	 	 	 	 
	33 Canada Square
	 	 	 	 
	Canary Wharf
	 	 	 	 
	London E14 5LB
	 	 	 	 
	 
	 	 	 	 
	For credit matters:
	 	 	 	 
	Attention: Simon Booth
	 	 	 	 
	Fax no: +44 20 7098 7327
	 	 	 	 
	Email: simon.booth@citi.com
	 	 	 	 
	 
	 	 	 	 
	For administration matters:
	 	 	 	 
	Attention: Lee Boden/Rob Brodie
	 	 	 	 
	Fax no: +44 20 7942 7512
	 	 	 	 
	Email: lee.boden@citi.com / rob.brodie@citi.com
	 	 	 	 
	 
	 	 	 	 
	ING Bank N.V., London branch
	 	 	51,029,586	 
	60 London Wall,
	 	 	 	 
	London EC2M 5TQ
	 	 	 	 
	 
	For credit matters:
	 	 	 	 
	Attention: Adam Byrne / Robartus Krol
	 	 	 	 
	Fax no: +44 20 7767 7252
	 	 	 	 
	Email: adam.byrne@uk.ing.com
	 	 	 	 
	            Robartus.krol@uk.ing.com
	 	 	 	 
	 
	For administration matters:
	 	 	 	 
	Attention: Samantha Joyce / Ian Tofts
	 	 	 	 
	Fax no: +44 20 7767 7324
	 	 	 	 
	Email: samantha.joyce@uk.ing.com
	 	 	 	 
	            ian.tofts@uk.ing.com
	 	 	 	 
	 
	 	 	 	 
	Nordea Bank Norge ASA, Grand Cayman branch
	 	 	51,029,586	 
	437 Madison Avenue
	 	 	 	 
	New York
	 	 	 	 
	NY 10022
	 	 	 	 
	USA
	 	 	 	 
	 
	 	 	 	 
	For credit matters:
	 	 	 	 
	Attention: Hans Kjelsrud/Colleen Durkin
	 	 	 	 
	Fax no: +1 212 318 4420
	 	 	 	 
	Email: hans.kjelsrud@nordea.com
	 	 	 	 
	            colleen.durkin@nordea.com
	 	 	 	 
	For administration matters:
	 	 	 	 
	 
	 	 	 	 
	Attention: Jacqueline Ng/Sonia Earle
	 	 	 	 

88

 

	 	 	 	 	 
	Fax no: +1 212 318 9578/9596
	 	 	 	 
	Email: jackie.ng@nordea.com
	 	 	 	 
	 
	 	 	 	 
	BNP Paribas
	 	 	51,029,586	 
	Nordic Shipping Desk
	 	 	 	 
	Karl Johans Gate 7
	 	 	 	 
	P.O. Box 106 Sentrum
	 	 	 	 
	No-0102 Oslo
	 	 	 	 
	Norway
	 	 	 	 
	 
	 	 	 	 
	For credit matters:
	 	 	 	 
	Attention: Pierre de Fontenay/Patrik Hofseth
	 	 	 	 
	Fax no: +47 22 82 95 67
	 	 	 	 
	Email: pierre.defontenay@bnpparibas.com
	 	 	 	 
	            patrik.hofseth@bnpparibas.com
	 	 	 	 
	 
	 	 	 	 
	For administration matters:
	 	 	 	 
	Attention: Tove Brandt
	 	 	 	 
	Fax no: +47 22 82 95 11
	 	 	 	 
	Email: tove.brandt@bnpparibas.com
	 	 	 	 
	 
	 	 	 	 
	Fokus Bank (being the Norwegian branch of Danske Bank A/S)
	 	 	51,029,586	 
	PO Box 1170 Sentrum
	 	 	 	 
	N-0107 Oslo
	 	 	 	 
	Norway
	 	 	 	 
	 
	 	 	 	 
	Attention: Shipping Dept
	 	 	 	 
	Fax no: +47 85 40 7990
	 	 	 	 
	Email: shippingoffshore@fokus.no
	 	 	 	 
	 
	 	 	 	 
	HSH Nordbank AG
	 	 	51,029,586	 
	Shipping Department
	 	 	 	 
	West European & North American Clients
	 	 	 	 
	Gerhart-Hauptmann-Platz 50
	 	 	 	 
	20095 Hamburg
	 	 	 	 
	 
	 	 	 	 
	For credit matters:
	 	 	 	 
	Attention: Hugh Baker / Frauke Hay /
	 	 	 	 
	Fiorina Riccobono
	 	 	 	 
	Fax no: +49 40 3333 34307
	 	 	 	 
	Email: hugh.baker@hsh-nordbank.com
	 	 	 	 
	            frauke.hay@hsh-nordbank.com
	 	 	 	 
	            fiorina.riccobono@hsh-nordbank.com
	 	 	 	 
	 
	 	 	 	 
	For administration matters:
	 	 	 	 
	Attention: Martina Timm
	 	 	 	 
	Fax no: +49 40 3333-34307
	 	 	 	 
	Email: martina.timm@hsh-nordbank.com
	 	 	 	 

89

 

	 	 	 	 	 
	KfW
	 	 	47,384,615	 
	Palmengartenstrasse 5-9
	 	 	 	 
	60325 Frankfurt am Main
	 	 	 	 
	Germany
	 	 	 	 
	 
	 	 	 	 
	For credit matters.
	 	 	 	 
	Attention: Klaus Benkau
	 	 	 	 
	Fax no: +49 69 7431 9413
	 	 	 	 
	Email: klaus.benkau@kfw.de
	 	 	 	 
	 
	 	 	 	 
	For administration matters:
	 	 	 	 
	Attention: Jasmine Ross
	 	 	 	 
	Fax no: +49 69 7431 3768
	 	 	 	 
	Email: jasmine.ross@.kfw.de
	 	 	 	 
	 
	 	 	 	 
	Morgan Stanley Bank
	 	 	47,384,615	 
	2500 Lake Park Blvd., Suite 300 C
	 	 	 	 
	West Valley City
	 	 	 	 
	Utah 84120
	 	 	 	 
	USA
	 	 	 	 
	 
	 	 	 	 
	For credit matters:
	 	 	 	 
	Attention: Edward Henley/Alice Lee
	 	 	 	 
	Fax no: 001 718 754 7250
	 	 	 	 
	Email: edward.henley@morganstanley.com
	 	 	 	 
	            alice.lee@morganstanley.com
	 	 	 	 
	 
	 	 	 	 
	For administration matters:
	 	 	 	 
	Attention: Martin Telford/Ly Dinh
	 	 	 	 
	Fax no: 001 718 233 2140
	 	 	 	 
	Email: ldnnyservicing@morganstanley.com
	 	 	 	 
	 
	 	 	 	 
	Scotiabank Europe plc
	 	 	35,720,710	 
	 
	For credit matters:
	 	 	 	 
	33 Finsbury Square
	 	 	 	 
	London EC2A 1BB
	 	 	 	 
	United Kingdom
	 	 	 	 
	 
	 	 	 	 
	Attention: David Sparkes/Thomas Erichsen
	 	 	 	 
	Fax no: +44 207 454 9019
	 	 	 	 
	Email: david_sparkes@scotiacapital.com
	 	 	 	 
	            thomas_erichsen@scotiacapital.com
	 	 	 	 
	 
	 	 	 	 
	For administration matters:
	 	 	 	 
	720 King Street
	 	 	 	 
	West Toronto
	 	 	 	 
	Canada
	 	 	 	 
	 
	 	 	 	 
	Attention: Savi Rampat/Tony Sposato
	 	 	 	 
	Fax no: +44 207 826 5666
	 	 	 	 
	Email: savi.rampat@scotiacapital.com
	 	 	 	 

90

 

	 	 	 	 	 
	tony.sposato@scotiacapital.com
	 	 	 	 
	 
	Deutsche Bank AG, Filiale Deutschland
	 	 	35,720,710	 
	Geschäft
	 	 	 	 
	Ludwig Erhard Str.1
	 	 	 	 
	20459 Hamburg
	 	 	 	 
	Germany
	 	 	 	 
	 
	 	 	 	 
	For credit matters:
	 	 	 	 
	Attention: Jörg Zickermann/Kerstin Seefeld
	 	 	 	 
	Fax no: + 49 40 3701 4649
	 	 	 	 
	Email: joerg.zickermann@db.com
	 	 	 	 
	            kerstin.seefeld@db.com
	 	 	 	 
	 
	 	 	 	 
	For administration matters.
	 	 	 	 
	Attention: Anja Eggert
	 	 	 	 
	Fax no: +49 40 3701 4649
	 	 	 	 
	Email: anja.eggert@db.com
	 	 	 	 
	 
	 	 	 	 
	Lloyds TSB Bank plc
	 	 	35,720,710	 
	 
	 	 	 	 
	For credit matters:
	 	 	 	 
	10 Gresham Street
	 	 	 	 
	London EC2V 7EA
	 	 	 	 
	United Kingdom
	 	 	 	 
	Attention: Shelley Morrison/Tony Stevens
	 	 	 	 
	Fax no: +44 207 158 3273/3271
	 	 	 	 
	Email: shelly.morrison@lloydstsb.co.uk
	 	 	 	 
	            tony.stevens@lloydstsb.co.uk
	 	 	 	 
	 
	 	 	 	 
	For administration matters:
	 	 	 	 
	Bank House
	 	 	 	 
	Wine Street
	 	 	 	 
	Bristol, BSI 2AN
	 	 	 	 
	Fax no: +44 207 158 3204
	 	 	 	 
	Email: LoansAdmin_s-z@lloydstsb.co.uk
	 	 	 	 
	 
	 	 	 	 
	Sumitomo Mitsui Banking
	 	 	35,720,710	 
	Corporation, Brussels Branch
	 	 	 	 
	 
	 	 	 	 
	For credit matters:
	 	 	 	 
	99 Queen Victoria Street
	 	 	 	 
	London EC4V 4EH
	 	 	 	 
	United Kingdom
	 	 	 	 
	Attention: Simon Murrell/Robert Taylor
	 	 	 	 
	Fax No: +44 207 786 101
	 	 	 	 
	Email: simon_murrell@gb.smbcgroup.com
	 	 	 	 
	            robert_taylor@gb.smbcgroup.com
	 	 	 	 
	 
	 	 	 	 
	with copy to:
	 	 	 	 
	 
	 	 	 	 
	20, rue de la Ville l’Eveque
	 	 	 	 

91

 

	 	 	 	 	 
	75008 Paris
	 	 	 	 
	France
	 	 	 	 
	Attention: Guillaume Dufour/Gwenael Delattre
	 	 	 	 
	Fax No: +33 1 44 71 40 50
	 	 	 	 
	Email: guillaume_dufour@fr.smbcgroup.com
	 	 	 	 
	            gwenael_delattre@fr.smbcgroup.com
	 	 	 	 
	 
	 	 	 	 
	and
	 	 	 	 
	 
	 	 	 	 
	Avenue des Arts 58, Box 18
	 	 	 	 
	1000 Brussels
	 	 	 	 
	Belgium
	 	 	 	 
	Attention: Francoise Bouchat/Nadine Boudart
	 	 	 	 
	Fax No: +32 2 502.07.80
	 	 	 	 
	Email: francoise_bouchat@be.smbcgroup.com
	 	 	 	 
	            nadine_boudart@be.smbcgroup.com
	 	 	 	 
	 
	 	 	 	 
	For administration matters:
	 	 	 	 
	 
	 	 	 	 
	European Loan Operations
	 	 	 	 
	Attention: David Griffiths/Jo Dunnage
	 	 	 	 
	99 Queen Victoria Street
	 	 	 	 
	London EC4V 4EH
	 	 	 	 
	Fax: + 44 207 786 1569
	 	 	 	 
	(fax correspondence only)
	 	 	 	 
	 
	 	 	 	 
	Swedbank AB (publ)
	 	 	35,720,710	 
	Brukebergstorg 8
	 	 	 	 
	SE 105 34 Stockholm
	 	 	 	 
	Sweden
	 	 	 	 
	 
	 	 	 	 
	Contact credit and legal matters:
	 	 	 	 
	Swedbank AB (publ)
	 	 	 	 
	Marine Finance, E421
	 	 	 	 
	Regeringsgatan 13
	 	 	 	 
	SE 105 34, Stockholm, Sweden
	 	 	 	 
	Dagobert Billsten/Karin Nilsson
	 	 	 	 
	Fax No: +46 8 723 7150
	 	 	 	 
	Emails: dagobert.billsten@swedbank.se
	 	 	 	 
	            karin.nilsson@swedbank.se
	 	 	 	 
	 
	 	 	 	 
	Contact, administrative matters:
	 	 	 	 
	Swedbank AB (publ)
	 	 	 	 
	Marine Finance Credit Administration, E768
	 	 	 	 
	Regeringsgatan 13
	 	 	 	 
	SE 105 34, Stockholm, Sweden
	 	 	 	 
	Nina Kyttä / Richard Lönnqvist
	 	 	 	 
	Fax No.: +46 8 700 8132
	 	 	 	 
	Email: creditadmin@swedbank.se
	 	 	 	 

92

 

	 	 	 	 	 
	Alliance & Leicester Commercial
	 	 	21,869,822	 
	Finance plc
	 	 	 	 
	Carlton Park, Narborough
	 	 	 	 
	Leicester, LE19 OAL
	 	 	 	 
	United Kingdom
	 	 	 	 
	 
	 	 	 	 
	For credit matters:
	 	 	 	 
	3rd Floor,
	 	 	 	 
	120 New Cavendish Street
	 	 	 	 
	London W1W 6XX
	 	 	 	 
	 
	 	 	 	 
	Attention: James MacDonald/Harminder Randhawa
	 	 	 	 
	Fax no: +44 207 907 3664
	 	 	 	 
	Email: james.macdonald@alliance-leicester.co.uk
	 	 	 	 
	            harminder.randhawa@alliance-leicester.co.uk
	 	 	 	 
	 
	 	 	 	 
	For administration matters:
	 	 	 	 
	298 Deansgate
	 	 	 	 
	Manchester M3 4HH
	 	 	 	 
	 
	Attention: Keith Sullivan/Shane Shehade
	 	 	 	 
	Fax no: +44 161 953 3517
	 	 	 	 
	Email: keith.sullivan@alliance-leicester.co.uk
	 	 	 	 
	            shane.shehade@alliance-leicester.co.uk
	 	 	 	 
	 
	 	 	 	 
	Calyon
	 	 	14,579,882	 
	For administration matters:
	 	 	 	 
	9. Quai, du President Paul Doumer
	 	 	 	 
	92920 Paris La Defense
	 	 	 	 
	France
	 	 	 	 
	Fax no: +33 141 89 19 34
	 	 	 	 
	Attention: Middle Office/Shipping/
	 	 	 	 
	M. Godet-Couery/Ms Regine Maugin/Ms Marie-Claire Vanderperre
	 	 	 	 
	Email: sylvie.godetcouery@calyon.com
	 	 	 	 
	regine.maugin@calyon.com
	 	 	 	 
	marieclaire.vanderperre@calyon.com
	 	 	 	 
	 
	 	 	 	 
	For credit matters:
	 	 	 	 
	Broadwalk House
	 	 	 	 
	5 Appold Street
	 	 	 	 
	London EC2A 2DA
	 	 	 	 
	Fax no: +44 207 214 6689
	 	 	 	 
	Attention: Thiband/Escoffier/Jerome Duval
	 	 	 	 
	Email: thiband.escoffier@uk.calyon.com
	 	 	 	 
	jerome.duval@uk.calyon.com
	 	 	 	 
	Total
	 	 	616,000,000	 

93

 

SCHEDULE 2: The Borrowers and the Vessels

PART I

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Market	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Value (in $	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	millions)	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	(as of	 	Relevant	 	 	 	 
	Tranche A	 	 	 	 	 	 	 	 	 	November	 	Share (as a	 	 	 	 
	Borrower	 	Vessel Name	 	Year Built	 	Ship Type	 	2007)	 	percentage)	 	Flag	 	Pledgor
	Everest Spirit
Holding L.L.C.

	 	Everest Spirit
	 	 	2004	 	 	Aframax
	 	 	71.00	 	 	 	17.03057	 	 	Bahamas
	 	Everest Spirit L.L.C.
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Kanata Spirit
Holding L.L.C.

	 	Kanata Spirit
	 	 	1999	 	 	Aframax
	 	 	63.00	 	 	 	15.28384	 	 	Bahamas
	 	Kanata Spirit L.L.C.
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Kareela Spirit
Holding L.L.C.

	 	Kareela Spirit
	 	 	1999	 	 	Aframax
	 	 	63.00	 	 	 	15.28384	 	 	Bahamas
	 	Kareela Spirit L.L.C.
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Kyeema Spirit
Holding L.L.C.

	 	Kyeema Spirit
	 	 	1999	 	 	Aframax
	 	 	63.00	 	 	 	15.28384	 	 	Bahamas
	 	Kyeema Spirit L.L.C.
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Nassau Spirit
Holding L.L.C.

	 	Nassau Spirit
	 	 	1998	 	 	Aframax
	 	 	60.75	 	 	 	14.41049	 	 	Bahamas
	 	Nassau Spirit L.L.C.
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Falster Spirit
Holding L.L.C.

	 	Falster Spirit
	 	 	1995	 	 	Aframax
	 	 	48.00	 	 	 	11.35371	 	 	Bahamas
	 	Falster Spirit L.L.C.
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Sotra Spirit
Holding L.L.C.

	 	Sotra Spirit
	 	 	1995	 	 	Aframax
	 	 	48.00	 	 	 	11.35371	 	 	Bahamas
	 	Sotra Spirit L.L.C.

94

 

PART II

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Market	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Value (in $	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	millions) (as	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	of	 	Relevant	 	 
	Tranche B	 	 	 	 	 	 	 	 	 	November	 	Share (as a	 	 
	Borrower	 	Vessel Name	 	Year Built	 	Ship Type	 	2007)	 	percentage)	 	Flag
	Godavari Spirit
L.L.C.

	 	Godavari Spirit ex Angelica
	 	 	2004	 	 	Suezmax
	 	 	98.00	 	 	 	9.57792	 	 	Bahamas
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Iskmati Spirit
L.L.C.

	 	Iskmati Spirit ex Arlene
	 	 	2003	 	 	Suezmax
	 	 	96.00	 	 	 	9.41558	 	 	Bahamas
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Ashkini Spirit
L.L.C.

	 	Ashkini Spirit ex Ingeborg
	 	 	2003	 	 	Suezmax
	 	 	96.00	 	 	 	9.41558	 	 	Bahamas
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Narmada Spirit
L.L.C.

	 	Narmada Spirit ex Adair
	 	 	2003	 	 	Suezmax
	 	 	96.00	 	 	 	9.41558	 	 	Bahamas
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Kaveri Spirit L.L.C.

	 	Kaveri Spirit ex Janet
	 	 	2004	 	 	Suezmax
	 	 	98.00	 	 	 	9.57792	 	 	Bahamas
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Ganges Spirit L.L.C.

	 	Ganges Spirit ex Delaware
	 	 	2002	 	 	Suezmax
	 	 	94.00	 	 	 	9.09091	 	 	Bahamas
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Yamuna Spirit L.L.C.

	 	Yamuna Spirit ex Dakota
	 	 	2002	 	 	Suezmax
	 	 	94.00	 	 	 	9.09091	 	 	Bahamas
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Luit Spirit L.L.C.

	 	Luit Spirit ex Lauren
	 	 	2005	 	 	MR Product Tanker
	 	 	55.25	 	 	 	5.35715	 	 	Bahamas
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Hugli Spirit L.L.C.

	 	Hugli Spirit ex Brazos
	 	 	2005	 	 	MR Product Tanker
	 	 	55.25	 	 	 	5.35715	 	 	Bahamas
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Teesta Spirit L.L.C.

	 	Teesta Spirit ex Jeanette
	 	 	2004	 	 	MR Product Tanker
	 	 	53.75	 	 	 	5.19481	 	 	Bahamas
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Mahanadi Spirit
L.L.C.

	 	Mahanadi Spirit ex Guadalupe
	 	 	2000	 	 	MR Product Tanker
	 	 	48.00	 	 	 	4.70779	 	 	Bahamas
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Esther Spirit L.L.C.

	 	Esther Spirit
	 	 	2004	 	 	Aframax
	 	 	71.00	 	 	 	6.89935	 	 	Bahamas
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Axel Spirit L.L.C.

	 	Axel Spirit
	 	 	2004	 	 	Aframax
	 	 	71.00	 	 	 	6.89935	 	 	Bahamas

95

 

SCHEDULE 3: Conditions Precedent and Subsequent

Part I A: Conditions precedent to the First Drawdown Date for Tranche A

	1	 	Security Parties

	 	(a)	 	Constitutional Documents Copies of the constitutional documents of each
Tranche A Security Party together with such other evidence as the Agent may reasonably
require that each Tranche A Security Party is duly formed or incorporated in its
country of incorporation and remains in existence with power to enter into, and perform
its obligations under, the Relevant Documents to which it is or is to become a party.
	 
	 	(b)	 	Certificates of good standing A certificate of good standing in respect of
each Tranche A Security Party (if such a certificate can be obtained).
	 
	 	(c)	 	Board resolutions A copy of a resolution of the board of directors of each
Tranche A Security Party (or its sole member):

	 	(i)	 	approving the terms of, and the transactions contemplated by,
the Relevant Documents to which it is a party and ratifying or resolving that
it execute those Relevant Documents; and
	 
	 	(ii)	 	if required authorising a specified person or persons to
execute those Relevant Documents (and all documents and notices to be signed
and/or despatched under those documents) on its behalf.

	 	(d)	 	Officer’s certificates A certificate of a duly authorised officer or
representative of each Tranche A Security Party certifying that each copy document
relating to it specified in this Part I A of Schedule 3 is correct, complete and in
full force and effect as at a date no earlier than the date of this Agreement and
setting out the names of the directors and officers of that Tranche A Security Party
(or its sole member) and the proportion of shares held by each shareholder.
	 
	 	(e)	 	Powers of attorney The notarially attested and legalised (where necessary for
registration purposes) power of attorney of each Tranche A Security Party under which
any documents are to be executed or transactions undertaken by that Tranche A Security
Party.

96

 

	2	 	Security and related documents

	 	(a)	 	Vessel documents In respect of each Tranche A Vessel photocopies, certified
as true, accurate and complete by a duly authorised representative of the relevant
Owner, of any relevant Management Agreement and any charter or other contract of
employment if for a period in excess of thirty six (36) months together in each case
with all addenda, amendments or supplements.
	 
	 	(b)	 	Evidence of Owner’s title Evidence that on the Drawdown Date (i) each of the
Tranche A Vessels is registered under the flag stated in Schedule 2 in the ownership of
the relevant Owner and (ii) each of the relevant Mortgages will be capable of being
registered against the relevant Tranche A Vessel with first priority.
	 
	 	(c)	 	Evidence of insurance Evidence that each of the Tranche A Vessels is insured
in the manner required by the Security Documents and that letters of undertaking will
be issued in the manner required by the Security Documents, together with the written
approval of the Insurances by an insurance adviser appointed by the Agent.
	 
	 	(d)	 	Confirmation of class Certificates of Confirmation of Class for hull and
machinery confirming that each of the Tranche A Vessels is classed with the highest
class applicable to vessels of her type with a Pre-Approved Classification Society.
	 
	 	(e)	 	Security Documents The Security Documents, together with all other documents
required by any of them, including, without limitation, all notices of assignment
and/or charge and evidence that those notices will be duly acknowledged by the
recipients.
	 
	 	(f)	 	Master Agreement The Master Agreement together with any Credit Support
Documents.
	 
	 	(g)	 	Other Relevant Documents Copies of each of the Relevant Documents not
otherwise comprised in the documents listed in this Part I A of Schedule 3.

97

 

	3	 	Legal opinions
	 
	 	 	If a Tranche A Security Party is incorporated in a jurisdiction other than England and Wales
or if any Finance Document is governed by the laws of a jurisdiction other than England and
Wales, a legal opinion of the legal advisers to the Lenders in each relevant jurisdiction,
substantially in the form provided to the Agent prior to the Drawdown Date or confirmation
satisfactory to the Agent that such an opinion will be given.
	 
	4	 	Other documents and evidence

	 	(a)	 	Drawdown Notice A duly completed Drawdown Notice.
	 
	 	(b)	 	Process agent Evidence that any process agent referred to in Clause 23.5 and
any process agent appointed under any other Finance Document has accepted its
appointment.
	 
	 	(c)	 	Other authorisations A copy of any other consent, licence, approval,
authorisation or other document, opinion or assurance which the Agent considers to be
necessary or desirable (if it has notified the A Borrowers accordingly) in connection
with the entry into and performance of the transactions contemplated by any of the
Relevant Documents or for the validity and enforceability of any of the Relevant
Documents.
	 
	 	(d)	 	Fees Evidence that the fees, costs and expenses then due from the Borrowers
under Clause 8 and Clause 9 (other than Clause 9.3) have been paid or will be paid by
the Drawdown Date.
	 
	 	(e)	 	“Know your customer” documents Such documentation and other evidence as is
reasonably requested by the Agent in order for the Lenders to comply with all necessary
“know your customer” or similar identification procedures in relation to the
transactions contemplated in the Finance Documents.

98

 

Part I B: Conditions precedent to the First Drawdown Date for Tranche B

	1	 	Security Parties

	 	(a)	 	Constitutional Documents Copies of the constitutional documents of each
Tranche B Security Party together with such other evidence as the Agent may reasonably
require that each Tranche B Security Party is duly formed or incorporated in its
country of incorporation and remains in existence with power to enter into, and perform
its obligations under, the Relevant Documents to which it is or is to become a party.
	 
	 	(b)	 	Certificates of good standing A certificate of good standing in respect of
each Tranche B Security Party (if such a certificate can be obtained).
	 
	 	(c)	 	Board resolutions A copy of a resolution of the board of directors of each
Tranche B Security Party (or its sole member):

	 	(i)	 	approving the terms of, and the transactions contemplated by,
the Relevant Documents to which it is a party and ratifying or resolving that
it execute those Relevant Documents; and
	 
	 	(ii)	 	if required authorising a specified person or persons to
execute those Relevant Documents (and all documents and notices to be signed
and/or despatched under those documents) on its behalf.

	 	(d)	 	Officer’s certificates A certificate of a duly authorised officer or
representative of each Tranche B Security Party certifying that each copy document
relating to it specified in this Part I B of Schedule 3 is correct, complete and in
full force and effect as at a date no earlier than the date of this Agreement and
setting out the names of the directors and officers of that Tranche B Security Party
(or its sole member) and the proportion of shares held by each shareholder.
	 
	 	(e)	 	Powers of attorney The notarially attested and legalised (where necessary for
registration purposes) power of attorney of each Tranche B Security Party under which
any documents are to be executed or transactions undertaken by that Tranche B Security
Party.

99

 

	2	 	Security and related documents

	 	(a)	 	Vessel documents In respect of each Tranche B Vessel photocopies, certified
as true, accurate and complete by a duly authorised representative of the relevant
Owner, of any relevant Management Agreement and any charter or other contract of
employment if for a period in excess of three (3) years together in each case with all
addenda, amendments or supplements.
	 
	 	(b)	 	Evidence of Owner’s title Evidence that on the Drawdown Date (i) each of the
Tranche B Vessels is registered under the flag stated in Schedule 2 in the ownership of
the relevant Owner and (ii) each of the relevant Mortgages will be capable of being
registered against the relevant Tranche B Vessel with first priority.
	 
	 	(c)	 	Evidence of insurance Evidence that each of the Tranche B Vessels is insured
in the manner required by the Security Documents and that letters of undertaking will
be issued in the manner required by the Security Documents, together with the written
approval of the Insurances by an insurance adviser appointed by the Agent.
	 
	 	(d)	 	Confirmation of class Certificates of Confirmation of Class for hull and
machinery confirming that each of the Tranche B Vessels is classed with the highest
class applicable to vessels of her type with a Pre-Approved Classification Society.
	 
	 	(e)	 	Security Documents The Security Documents, together with all other documents
required by any of them, including, without limitation, all notices of assignment
and/or charge and evidence that those notices will be duly acknowledged by the
recipients.
	 
	 	(f)	 	Other Relevant Documents Copies of each of the Relevant Documents not
otherwise comprised in the documents listed in this Part I B of Schedule 3.

	3	 	Legal opinions
	 
	 	 	If a Tranche B Security Party is incorporated in a jurisdiction other than England and Wales
or if any Finance Document is governed by the laws of a jurisdiction other than England and
Wales, a legal opinion of the legal advisers to the Lenders in each relevant

100

 

	 	 	jurisdiction, substantially in the form provided to the Agent prior to the Drawdown Date or
confirmation satisfactory to the Agent that such an opinion will be given.

	4	 	Other documents and evidence

	 	(a)	 	Drawdown Notice A duly completed Drawdown Notice.
	 
	 	(b)	 	Process agent Evidence that any process agent referred to in Clause 23.5 and
any process agent appointed under any other Finance Document has accepted its
appointment.
	 
	 	(c)	 	Other authorisations A copy of any other consent, licence, approval,
authorisation or other document, opinion or assurance which the Agent considers to be
necessary or desirable (if it has notified the B Borrowers accordingly) in connection
with the entry into and performance of the transactions contemplated by any of the
Relevant Documents or for the validity and enforceability of any of the Relevant
Documents.
	 
	 	(d)	 	Fees Evidence that the fees, costs and expenses then due from the Borrowers
under Clause 8 and Clause 9 (other than Clause 9.3) have been paid or will be paid by
the Drawdown Date.
	 
	 	(e)	 	“Know your customer” documents Such documentation and other evidence as is
reasonably requested by the Agent in order for the Lenders to comply with all necessary
“know your customer” or similar identification procedures in relation to the
transactions contemplated in the Finance Documents.
	 
	 	(f)	 	Structure Such documents and information as the Lenders may require to
satisfy themselves as to the corporate structure of the Borrowers and the Guarantors.

101

 

Part II: Conditions subsequent to the First Drawdown Date in respect of either Tranche A or Tranche B

	1	 	Evidence of Owner’s title Certificate of ownership and encumbrance (or equivalent) issued
by the Registrar of Ships (or equivalent official) of each relevant Collateral Vessel’s flag
state confirming that (a) each of the relevant Collateral Vessels is permanently registered
under that flag in the ownership of the relevant Owner, (b) each of the relevant Mortgages has
been registered with first priority against the relevant Collateral Vessel and (c) there are
no further Encumbrances registered against the Collateral Vessels.
	 
	2	 	Letters of undertaking Letters of undertaking in respect of the Insurances in respect of
the relevant Collateral Vessels as required by the Security Documents together with copies of
the relevant policies or cover notes or entry certificates duly endorsed with the interest of
the Finance Parties.
	 
	3	 	Acknowledgements of notices Acknowledgements of all notices of assignment and/or charge
given pursuant to the Security Documents.
	 
	4	 	Legal opinions Such of the legal opinions specified in Part I of this Schedule 3 as have
not already been provided to the Agent.
	 
	5	 	Companies Act registrations Evidence that the prescribed particulars of the Security
Documents have been delivered to the Registrar of Companies of England and Wales and (where
relevant) the appropriate registry in Singapore within the statutory time limit.

102

 

Part III: Conditions precedent to a Collateral Transfer Date

	1	 	Security Parties
	 
	 	 	A certificate from a duly authorised officer or representative of the
Borrowers confirming that none of the documents delivered to the Agent
pursuant to Schedule 3 Part I A or B (a), (b), (c), (d) and (e) have
been amended or modified in any way since the date of their delivery
to the Agent.
	 
	2	 	Security and related documents

	 	(a)	 	A confirmation from Guarantor A confirming that it guarantees the obligations
of the Collateral Transfer Borrower and the increased amount of Tranche A Indebtedness.
	 
	 	(b)	 	Execution, delivery and (if applicable) registration of replacement Security
Documents by the Collateral Transfer Borrower and, (with respect to the Share Pledge of
any Collateral Transfer Borrower) Guarantor A (or, if requested by Guarantor A and
accepted by the Agent, a sub holding company that owns the entire issued share capital
of the relevant Collateral Transfer Borrower and which is itself a one hundred per cent
Subsidiary (directly or indirectly) of Guarantor A) so that the Security Documents to
which it is a party or which relate to it secure the Tranche A Indebtedness.
	 
	 	(c)	 	Confirmation from the other Security Parties that (other than the release of
the Collateral Transfer Borrower’s obligations as secured obligations under Guarantee
B, the amendment to Guarantee A referred to above and the replacement of Security
Documents referred to above) all of the other Security Documents remain in full force
and effect.

	3	 	Legal opinions
	 
	 	 	If a Security Party is incorporated in a jurisdiction other than England and Wales or if any
Finance Document is governed by the laws of a jurisdiction other than England and Wales, a
legal opinion of the legal advisers to the Lenders in each relevant jurisdiction,
substantially in the form provided to the Agent prior to the Collateral Transfer Date or
confirmation satisfactory to the Agent that such an opinion will be given.
	 
	4	 	Other evidence

103

 

	 	 	Such evidence as the Agent may reasonably require of the transfer of the shares in the
Collateral Transfer Borrower from Guarantor B to Guarantor A (or to a sub holding company
which is itself a one hundred per cent Subsidiary (directly or indirectly) of Guarantor A).

104

 

Part IV: Conditions subsequent to a Collateral Transfer Date

	1	 	Legal opinions Such of the legal opinions specified in Part III of this Schedule 3 as have
not already been provided to the Agent.
	 
	2	 	Companies Act registrations Evidence that the prescribed particulars of the Security
Documents have been delivered to the Registrar of Companies of England and Wales and (where
relevant) the appropriate registry in Singapore within the statutory time limit.
	 
	3	 	Evidence of mortgage registration Certificate of ownership and encumbrance (or equivalent)
issued by the Registrar of Ships (or equivalent official) of the relevant Collateral Vessel’s
flag state confirming that the relevant Mortgage has been registered with first priority
against the relevant Collateral Vessel and that there are no further Encumbrances registered
against such Collateral Vessel.

105

 

Part V: Conditions precedent to an Upsize Amount Drawdown Date

	1	 	Security Parties

	 	(a)	 	A certificate from a duly authorised officer or representative of the Borrower
confirming that none of the documents delivered to the Agent pursuant to Schedule 3
Part I (a), (b), (c), (d) and (e) have been amended or modified in any way since the
date of their delivery to the Agent.
	 
	 	(b)	 	Constitutional Documents Copies of the constitutional documents of the
Additional Borrower together with such other evidence as the Agent may reasonably
require that the Additional Borrower is duly formed or incorporated in its country of
incorporation and remains in existence with power to enter into, and perform its
obligations under, the Relevant Documents to which it is or is to become a party.
	 
	 	(c)	 	Certificates of good standing A certificate of good standing in respect of
the Additional Borrower (if such a certificate can be obtained).
	 
	 	(d)	 	Board resolutions A copy of a resolution of the board of directors of the
Additional Borrower (or its sole member):

	 	(i)	 	approving the terms of, and the transactions contemplated by,
the Relevant Documents to which it is a party and ratifying or resolving that
it execute those Relevant Documents; and
	 
	 	(ii)	 	if required authorising a specified person or persons to
execute those Relevant Documents (and all documents and notices to be signed
and/or despatched under those documents) on its behalf.

	 	(e)	 	Officer’s certificates A certificate of a duly authorised officer or
representative of the Additional Borrower certifying that each copy document relating
to it specified in this Part V of Schedule 3 is correct, complete and in full force and
effect as at a date no earlier than the date of this Agreement and setting out the
names of the directors and officers of that the Additional Borrower (or its sole
member) and the proportion of shares held by each shareholder.
	 
	 	(f)	 	Powers of attorney The notarially attested and legalised (where necessary for
registration purposes) power of attorney of the Additional Borrower under which

106

 

	 	 	 	any documents are to be executed or transactions undertaken by that Security Party.

	2	 	Security and related documents

	 	(a)	 	Vessel documents In respect of the Additional Vessel photocopies, certified
as true, accurate and complete by a duly authorised representative of the relevant
Additional Borrower, of any relevant Management Agreement together with all addenda,
amendments or supplements.
	 
	 	(b)	 	Evidence of Owner’s title Evidence that on the Upsize Trigger Date (i) the
Additional Vessel will be registered under a Pre-Approved Flag in the ownership of the
Additional Borrower and (ii) a Mortgage will be capable of being registered against the
Additional Vessel with first priority.
	 
	 	(c)	 	Evidence of insurance Evidence that the Additional Vessel is insured in the
manner required by the Security Documents and that letters of undertaking will be
issued in the manner required by the Security Documents, together with the written
approval of the Insurances by an insurance adviser appointed by the Agent.
	 
	 	(d)	 	Confirmation of class Certificates of Confirmation of Class for hull and
machinery confirming that the Additional Vessel is classed with the highest class
applicable to vessels of her type with a Pre-Approved Classification Society.
	 
	 	(e)	 	Security Documents The Mortgage and Assignment to be executed in respect of
the Additional Vessel, a Share Pledge in respect of the Additional Borrower together
with all other documents required by any of them, including, without limitation, all
notices of assignment and/or charge and evidence that those notices will be duly
acknowledged by the recipients, and such confirmations relating to the existing
Security Documents to ensure they secure the Upsize Increased Maximum Amount as the
Agent and its counsel may require.
	 
	 	(f)	 	Other Relevant Documents Copies of each of the Relevant Documents in respect
of the Additional Vessel not otherwise comprised in the documents listed in this Part V
of Schedule 3.
	 
	 	(g)	 	Valuations Two Valuations of the Additional Vessel.

107

 

	3	 	Legal opinions
	 
	 	 	If a Security Party is incorporated in a jurisdiction other than England and Wales or if any
Finance Document is governed by the laws of a jurisdiction other than England and Wales, a
legal opinion of the legal advisers to the Lenders in each relevant jurisdiction,
substantially in the form provided to the Agent prior to the Upsize Amount Drawdown Date or
confirmation satisfactory to the Agent that such an opinion will be given.
	 
	4	 	Other documents and evidence

	 	(a)	 	Upsize Notice A duly completed Upsize Notice, accepted in writing by the
Agent.
	 
	 	(b)	 	Drawdown Notice A duly completed Drawdown Notice.
	 
	 	(c)	 	Process agent Evidence that any process agent appointed under any new Finance
Document has accepted its appointment.
	 
	 	(d)	 	Other authorisations A copy of any other consent, licence, approval,
authorisation or other document, opinion or assurance which the Agent considers to be
necessary or desirable (if it has notified the relevant Owner accordingly) in
connection with the entry into and performance of the transactions contemplated by any
of the Relevant Documents or for the validity and enforceability of any of the Relevant
Documents.
	 
	 	(e)	 	Fees Evidence that the fees, costs and expenses then due from the Borrowers
under Clause 9.3 have been paid or will be paid by the Drawdown Date.
	 
	 	(f)	 	“Know your customer” documents Such documentation and other evidence as is
reasonably requested by the Agent in order for the Lenders to comply with all necessary
“know your customer” or similar identification procedures in relation to the
transactions contemplated in the Finance Documents.

108

 

Part VI: Conditions subsequent to an Upsize Amount Drawdown Date

	1	 	Evidence of Owner’s title Certificate of ownership and encumbrance (or equivalent) issued
by the Registrar of Ships (or equivalent official) of the Additional Vessel’s flag state
confirming that (a) the Additional Vessel is permanently registered under that flag in the
ownership of the relevant Owner, (b) the relevant Mortgage has been registered with first
priority against the Additional Vessel and (c) there are no further Encumbrances registered
against the Additional Vessel.
	 
	2	 	Letters of undertaking Letters of undertaking in respect of the Insurances as required by
the Security Documents together with copies of the relevant policies or cover notes or entry
certificates duly endorsed with the interest of the Finance Parties.
	 
	3	 	Acknowledgements of notices Acknowledgements of all notices of assignment and/or charge
given pursuant to the Security Documents.
	 
	4	 	Legal opinions Such of the legal opinions specified in Part V of this Schedule 3 as have
not already been provided to the Agent.
	 
	5	 	Companies Act registrations Evidence that the prescribed particulars of the Security
Documents relating to the Additional Vessel have been delivered to the Registrar of Companies
of England and Wales and (where relevant) the appropriate registry in Singapore within the
statutory time limit.

109

 

Part VII: Conditions precedent to the Tranche B Step Up Date

	1	 	Hugli

	 	(a)	 	Constitutional Documents Copies of the constitutional documents of Hugli
together with such other evidence as the Agent may reasonably require that Hugli is
duly incorporated in its country of incorporation and remains in existence with power
to enter into, and perform its obligations under, the Relevant Documents to which it is
or is to become a party.
	 
	 	(b)	 	Certificates of good standing A certificate of good standing in respect of
Hugli (if such a certificate can be obtained).
	 
	 	(c)	 	Board resolutions A copy of a resolution of the board of directors of Hugli
(or its sole member):

	 	(i)	 	approving the terms of, and the transactions contemplated by,
the Relevant Documents to which it is a party and ratifying or resolving that
it execute those Relevant Documents; and
	 
	 	(ii)	 	if required authorising a specified person or persons to
execute those Relevant Documents (and all documents and notices to be signed
and/or despatched under those documents) on its behalf.

	 	(d)	 	Officer’s certificates A certificate of a duly authorised officer or
representative of Hugli certifying that each copy document relating to it specified in
this Part VII of Schedule 3 is correct, complete and in full force and effect as at the
Tranche B Step Up Date and setting out the names of the directors and officers of Hugli
(or its sole member) and the proportion of shares held by each shareholder.
	 
	 	(e)	 	Powers of attorney The notarially attested and legalised (where necessary for
registration purposes) power of attorney of Hugli under which any documents are to be
executed or transactions undertaken by that Security Party.

	2	 	Security and related documents

	 	(a)	 	Vessel documents In respect of the m.v. “Hugli Spirit” photocopies, certified
as true, accurate and complete by a duly authorised representative of Hugli, of any

110

 

	 	 	 	relevant Management Agreement together with all addenda, amendments or supplements.
	 
	 	(b)	 	Evidence of Owner’s title Evidence that on the Tranche B Step Up Date (i)
m.v. “Hugli Spirit” will be registered under a Pre-Approved Flag in the ownership of
Hugli and (ii) a Mortgage will be capable of being registered against m.v. “Hugli
Spirit” with first priority.
	 
	 	(c)	 	Evidence of insurance Evidence that m.v. “Hugli Spirit” is insured in the
manner required by the Security Documents and that letters of undertaking will be
issued in the manner required by the Security Documents, together with the written
approval of the Insurances by an insurance adviser appointed by the Agent.
	 
	 	(d)	 	Confirmation of class A certificate of Confirmation of Class for hull and
machinery confirming that m.v. “Hugli Spirit” is classed with the highest class
applicable to vessels of her type with a Pre-Approved Classification Society.
	 
	 	(e)	 	Security Documents The Mortgage and Assignment to be executed in respect of
m.v. “Hugli Spirit” and a Share Pledge in respect of Hugli, together with all other
documents required by any of them, including, without limitation, all notices of
assignment and/or charge and evidence that those notices will be duly acknowledged by
the recipients.
	 
	 	(f)	 	Other Relevant Documents Copies of each of the Relevant Documents in respect
of m.v. “Hugli Spirit” not otherwise comprised in the documents listed in this Part VII
of Schedule 3.
	 
	 	(g)	 	Valuation A Valuation of m.v. “Hugli Spirit”.

	3	 	Legal opinions
	 
	 	 	Legal opinions of the legal advisers to the Lenders in each relevant jurisdiction,
substantially in the form provided to the Agent prior to the Tranche B Step Up Date or
confirmation satisfactory to the Agent that such opinions will be given.

111

 

	4	 	Other documents and evidence

	 	(a)	 	Process agent Evidence that any process agent appointed under any new Finance
Document has accepted its appointment.
	 
	 	(b)	 	Other authorisations A copy of any other consent, licence, approval,
authorisation or other document, opinion or assurance which the Agent considers to be
necessary or desirable (if it has notified the relevant Owner accordingly) in
connection with the entry into and performance of the transactions contemplated by any
of the Relevant Documents or for the validity and enforceability of any of the Relevant
Documents.
	 
	 	(c)	 	“Know your customer” documents Such documentation and other evidence as is
reasonably requested by the Agent in order for the Lenders to comply with all necessary
“know your customer” or similar identification procedures in relation to the
transactions contemplated in the Finance Documents.

112

 

Part VIII: Conditions subsequent to the Tranche B Step Up Date

	1	 	Evidence of Owner’s title Certificate of ownership and encumbrance (or equivalent) issued
by the Registrar of Ships (or equivalent official) of m.v. “Hugli Spirit” flag state
confirming that (a) m.v. “Hugli Spirit” is permanently registered under that flag in the
ownership of the relevant Owner, (b) the relevant Mortgage has been registered with first
priority against m.v. “Hugli Spirit” and (c) there are no further Encumbrances registered
against m.v. “Hugli Spirit”.
	 
	2	 	Letters of undertaking Letters of undertaking in respect of the Insurances as required by
the Security Documents together with copies of the relevant policies or cover notes or entry
certificates duly endorsed with the interest of the Finance Parties.
	 
	3	 	Acknowledgements of notices Acknowledgements of all notices of assignment and/or charge
given pursuant to the Security Documents.
	 
	4	 	Legal opinions Such of the legal opinions specified in Part VII of this Schedule 3 as have
not already been provided to the Agent.
	 
	5	 	Companies Act registrations Evidence that the prescribed particulars of the Security
Documents relating to m.v. “Hugli” have been delivered to the Registrar of Companies of
England and Wales within the statutory time limit.

113

 

SCHEDULE 4: Calculation of Mandatory Cost

	1	 	The Mandatory Cost is an addition to the interest rate to compensate the Lenders for the cost
of compliance with (a) the requirements of the Bank of England and/or the Financial Services
Authority (or, in either case, any other authority which replaces all or any of its functions)
or (b) the requirements of the European Central Bank.
	 
	(a)	 	On the first day of each Interest Period (or as soon as possible thereafter) the Agent shall
calculate, as a percentage rate, a rate (the “Additional Cost Rate”) for each Lender in
accordance with the paragraphs set out below. The Mandatory Cost will be calculated by the
Agent as a weighted average of the Lenders’ Additional Cost Rates (weighted in proportion to
the percentage participation of each Lender in the Facility) and will be expressed as a
percentage rate per annum.
	 
	(b)	 	The Additional Cost Rate for any Lender lending from an office in the euro-zone will be the
percentage notified by that Lender to the Agent to be its reasonable determination of the cost
(expressed as a percentage of that Lender’s participation in the Facility) of complying with
the minimum reserve requirements of the European Central Bank as a result of participating in
the Facility from that office.
	 
	(c)	 	The Additional Cost Rate for any Lender lending from an office in the United Kingdom will be
calculated by the Agent as follows:
	 
	 	 	                    F x 0.01 per cent per annum

                    300
	 
	 	 	where F is the charge payable by that Lender to the Financial Services Authority under
paragraph 2.02 or 2.03 (as appropriate) of the Fees Regulations or the equivalent provisions
in any replacement regulations (with, for this purpose, the figure for the minimum amount in
paragraph 2.02b or such equivalent provision deemed to be zero), expressed in pounds per £1
million of the fee base of that Lender.
	 
	2	 	For the purpose of this Schedule:

	 	(a)	 	“eligible liabilities” and “special deposits” have the meanings given to them
at the time of application of the formula by the Bank of England;
	 
	 	(b)	 	“fee base” has the meaning given to it in the Fees Regulations;

114

 

	 	(c)	 	“Fees Regulations” means the regulations governing periodic fees contained in
the FSA Supervision Manual or such other law or regulation as may be in force from time
to time in respect of the payment of fees for the acceptance of deposits.

	3	 	If a Lender does not supply the information required by the Agent to determine its Additional
Cost Rate when requested to do so, the applicable Mandatory Cost shall be determined on the
basis of the information supplied by the remaining Lenders.
	 
	4	 	If a change in circumstances has rendered, or will render, the formula inappropriate, the
Agent shall notify the Borrowers of the manner in which the Mandatory Cost will subsequently
be calculated. The manner of calculation so notified by the Agent shall, in the absence of
manifest error, be binding on the Borrowers.

115

 

SCHEDULE 5: Form of Drawdown Notice

To: NORDEA BANK FINLAND PLC, New York Branch

From: [                                        ]

[Date]

Dear Sirs,

Drawdown Notice

     We refer to the Facility Agreement dated                     2007 made between, amongst
others, ourselves and yourselves (the “Agreement”).

     Words and phrases defined in the Agreement have the same meaning when used in this Drawdown
Notice.

     Pursuant to Clause 4.1 of the Agreement, we irrevocably request that you advance a Drawing in
respect of [Tranche A] [Tranche B] in the sum of [                                        ]
to us on                                        200 , which is a Business Day, by paying the
amount of the advance to [                                        ].

     We warrant that the representations and warranties contained in Clause 11.1 of the Agreement
are true and correct at the date of this Drawdown Notice and will be true and correct on                     200 , that no Default has occurred and is continuing, and that no Default will result from the
advance of the sum requested in this Drawdown Notice.

     We select the period of [     ] months as the Interest Period in respect of the said
Drawing.

Yours faithfully

                                        

For and on behalf of

[                                         ]

116

 

SCHEDULE 6: Form of Transfer Certificate

To: Nordea Bank Finland plc, New York Branch

TRANSFER CERTIFICATE

This transfer certificate relates to a secured loan facility agreement (as from time to time
amended, varied, supplemented or novated the “Facility Agreement”) dated [                    ]
2007, on the terms and subject to the conditions of which a secured revolving credit facility was
made available to [                                         ], by a syndicate of banks
on whose behalf you act as agent and security agent.

	1	 	Terms defined in the Facility Agreement shall, unless otherwise expressly indicated, have the
same meaning when used in this certificate. The terms “Transferor” and “Transferee” are
defined in the schedule to this certificate.
	 
	2	 	The Transferor:

	 	2.1	 	confirms that the details in the Schedule under the heading “Transferor’s
Commitment” accurately summarise its Commitment; and
	 
	 	2.2	 	requests the Transferee to accept by way of novation the transfer to the
Transferee of the amount of the Transferor’s Commitment specified in the Schedule by
counter-signing and delivering this certificate to the Agent at its address for
communications specified in the Facility Agreement.

	3	 	The Transferee requests the Agent to accept this certificate as being delivered to the Agent
pursuant to and for the purposes of clause 14.4 of the Facility Agreement so as to take effect
in accordance with the terms of that clause on the Transfer Date specified in the Schedule.
	 
	4	 	The Agent confirms its acceptance of this certificate for the purposes of clause 14.4 of the
Facility Agreement.
	 
	5	 	The Transferee confirms that:

	 	5.1	 	it has received a copy of the Facility Agreement together with all other
information which it has required in connection with this transaction;

117

 

	 	5.2	 	it has not relied and will not in the future rely on the Transferor or any
other party to the Facility Agreement to check or enquire on its behalf into the
legality, validity, effectiveness, adequacy, accuracy or completeness of any such
information; and
	 
	 	5.3	 	it has not relied and will not in the future rely on the Transferor or any
other party to the Facility Agreement to keep under review on its behalf the financial
condition, creditworthiness, condition, affairs, status or nature of any Security
Party.

	6	 	Execution of this certificate by the Transferee constitutes its representation and warranty
to the Transferor and to all other parties to the Facility Agreement that it has the power to
become a party to the Facility Agreement as a Lender on the terms of the Facility Agreement
and has taken all steps to authorise execution and delivery of this certificate.
	 
	7	 	The Transferee undertakes with the Transferor and each of the other parties to the Facility
Agreement that it will perform in accordance with their terms all those obligations which by
the terms of the Facility Agreement will be assumed by it after delivery of this certificate
to the Agent and the satisfaction of any conditions subject to which this certificate is
expressed to take effect.
	 
	8	 	The Transferor makes no representation or warranty and assumes no responsibility with respect
to the legality, validity, effectiveness, adequacy or enforceability of any Finance Document
or any document relating to any Finance Document, and assumes no responsibility for the
financial condition of any Finance Party or for the performance and observance by any Security
Party of any of its obligations under any Finance Document or any document relating to any
Finance Document and any conditions and warranties implied by law are expressly excluded.
	 
	9	 	The Transferee acknowledges that nothing in this certificate or in the Facility Agreement
shall oblige the Transferor to:

	 	9.1	 	accept a re-transfer from the Transferee of the whole or any part of the
rights, benefits and/or obligations transferred pursuant to this certificate; or
	 
	 	9.2	 	support any losses directly or indirectly sustained or incurred by the
Transferee for any reason including, without limitation, the non-performance by any
party to any Finance Document of any obligations under any Finance Document.

118

 

	10	 	The address and fax number of the Transferee for the purposes of clause 18 of the Facility
Agreement are set out in the Schedule.
	 
	11	 	This certificate may be executed in any number of counterparts each of which shall be
original but which shall together constitute the same instrument.
	 
	12	 	This certificate shall be governed by and interpreted in accordance with English law.

THE SCHEDULE

	1	 	Transferor:
	 
	2	 	Transferee:
	 
	3	 	Transfer Date (not earlier that the fifth Business Day after the date of delivery of the
Transfer Certificate to the Agent):
	 
	4	 	Transferor’s Commitment:
	 
	5	 	Amount transferred:
	 
	6	 	Transferee’s address and fax number for the purposes of clause 18 of the Facility Agreement:

	 	 	 	 	 
	[name of Transferor]	 	[name of Transferee]
	By:

	 	 	 	By:
	 
	 	 	 	 
	Date:

	 	Date:	 	 

Nordea Bank Finland plc, New York Branch as Agent

By:

Date:

119

 

SCHEDULE 7: Form of Upsize Notice

To: Nordea Bank Finland plc, New York Branch

From: [                                         ]

Facility Agreement dated                     2007 (the “Agreement”)

We refer to the Agreement. This is an Upsize Notice. Terms defined in the Agreement have the same
meaning when used in this Upsize Notice unless given a different meaning in this Upsize Notice.

We hereby request an increase in the
Maximum Amount by [            
                
            ] Dollars ($[
                
                
        ]) to up to [    
                
                
    ] Dollars ($[        
                
                
]) which increase to be effective from [insert date at least 30 days after date of
this Notice] (the “Upsize Trigger Date”), such increase to be allocated
as to [               
                
          ] Dollars ($[  
                
                
      ]) to Tranche [A] [and as to
[                
                
         ] Dollars ($[   
                
                
     ]) to Tranche B.]

We attach information relating to the proposed Additional Borrowers (which shall become [A] [B]
Borrowers) and the Additional Vessel[s] (which shall be allocated to Tranche A or Tranche B as
specified) including two Valuations thereof, giving an average Valuation of [     ].

We agree to pay you as Agent a fee of [                                        ] Dollars
($[                                        ]) for distribution to the Participating Lenders on the Upsize Trigger Date.

Signed                                         

     Duly authorised representative of

     [                                                            ]

120

 

SCHEDULE 8: Reductions

Tranche A Reductions

	 	 	 	 	 	 	 
	Reduction Dates	 	 	 	 	 	 
	(from the date of	 	 	 	 	 	Initial Reduction
	this Agreement)	 	Reductions	 	Committed amount	 	Amounts
	0
	 	 	 	$229,000,000	 	0
	5 years
	 	1st reduction	 	$216,405,000	 	$12,595,000
	5 years 6 months
	 	2nd reduction	 	$203,810,000	 	$12,595,000
	6 years
	 	3rd reduction	 	$191,215,000	 	$12,595,000
	6 years 6 months
	 	4th reduction	 	$178,620,000	 	$12,595,000
	7 years
	 	5th reduction	 	$166,025,000	 	$12,595,000
	7 years 6 months
	 	6th reduction	 	$153,430,000	 	$12,595,000
	8 years
	 	7th reduction	 	$140,835,000	 	$12,595,000
	8 years 6 months
	 	8th reduction	 	$128,240,000	 	$12,595,000
	9 years
	 	9th reduction	 	$115,645,000	 	$12,595,000
	9 years 6 months
	 	10th reduction	 	$103,050,000	 	$12,595,000
	10 years
	 	11th reduction	 	0	 	$103,050,000

121

 

Tranche B Reductions

	 	 	 	 	 	 	 
	Reduction Dates	 	 	 	 	 	 
	(from the date of	 	 	 	 	 	Initial Reduction
	this Agreement)	 	Reductions	 	Committed amount	 	Amounts
	0
	 	 	 	$616,000,000	 	 
	5 years
	 	1st reduction	 	$582,120,000	 	$33,880,000
	5 years 6 months
	 	2nd reduction	 	$548,240,000	 	$33,880,000
	6 years
	 	3rd reduction	 	$514,360,000	 	$33,880,000
	6 years 6 months
	 	4th reduction	 	$480,480,000	 	$33,880,000
	7 years
	 	5th reduction	 	$446,600,000	 	$33,880,000
	7 years 6 months
	 	6th reduction	 	$412,720,000	 	$33,880,000
	8 years
	 	7th reduction	 	$378,840,000	 	$33,880,000
	8 years 6 months
	 	8th reduction	 	$344,960,000	 	$33,880,000
	9 years
	 	9th reduction	 	$311,080,000	 	$33,880,000
	9 years 6 months
	 	10th reduction	 	$277,200,000	 	$33,880,000
	10 years
	 	11th reduction	 	$0	 	$277,200,000

N.B. This schedule assumes the Tranche B Step Up Date has occurred. If the Tranche B Step Up Date
has not occurred, then the following schedule will apply:-

	 	 	 	 	 	 	 
	Reduction Dates	 	 	 	 	 	 
	(from the date of	 	 	 	 	 	Initial Reduction
	this Agreement)	 	Reductions	 	Committed amount	 	Amounts
	0
	 	 	 	$583,000,000	 	 
	5 years
	 	1st reduction	 	$550,935,000	 	$32,065,000
	5 years 6 months
	 	2nd reduction	 	$518,870,000	 	$32,065,000
	6 years
	 	3rd reduction	 	$486,805,000	 	$32,065,000
	6 years 6 months
	 	4th reduction	 	$454,740,000	 	$32,065,000
	7 years
	 	5th reduction	 	$422,675,000	 	$32,065,000
	7 years 6 months
	 	6th reduction	 	$390,610,000	 	$32,065,000
	8 years
	 	7th reduction	 	$358,545,000	 	$32,065,000
	8 years 6 months
	 	8th reduction	 	$326,480,000	 	$32,065,000
	9 years
	 	9th reduction	 	$294,415,000	 	$32,065,000
	9 years 6 months
	 	10th reduction	 	$262,350,000	 	$32,065,000
	10 years
	 	11th reduction	 	$0	 	$262,350,000

122

 

 

 

123

 

SCHEDULE 9: Form of Collateral Transfer Notice

	 	 	 
	To:

	 	NORDEA BANK FINLAND PLC, New York Branch
	 
	 	 
	From:

	 	[                           ]

Facility Agreement dated                      2007 (the “Agreement”)

We refer to the Agreement. This is a Collateral Transfer Notice. Terms defined in the Agreement
have the same meaning when used in this Collateral Transfer Notice unless given a different meaning
in this Collateral Transfer Notice.

We hereby request that [specify B Borrower] becomes a Collateral Transfer Borrower (and thereby an
A Borrower) and [specify relevant B Vessel] becomes an A Vessel on [specify date] (the “Collateral
Transfer Date”). With effect from the Collateral Transfer Date the Tranche A Maximum Amount should
be increased by [                      ] and the Tranche B Maximum Amount should be
reduced by [                 ].

Signed                                         

            Duly authorised representative of

            [                                     ]

124

 

IN WITNESS of which the parties to this Agreement have executed this Agreement the day and year
first before written.

	 	 	 	 	 	 	 
	SIGNED by  Patrick Smith

	 	 	)	 	 	/s/ Patrick Smith
	duly authorised for and on behalf

	 	 	)	 	 	 
	of EVEREST SPIRIT HOLDING L.L.C.

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	SIGNED by Patrick Smith

	 	 	)	 	 	/s/ Patrick Smith
	duly authorised for and on behalf

	 	 	)	 	 	 
	of KANATA SPIRIT HOLDING L.L.C.

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	SIGNED by Patrick Smith

	 	 	)	 	 	/s/ Patrick Smith
	duly authorised for and on behalf

	 	 	)	 	 	 
	of KAREELA SPIRIT HOLDING L.L.C.

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	SIGNED by Patrick Smith

	 	 	)	 	 	/s/ Patrick Smith
	duly authorised for and on behalf

	 	 	)	 	 	 
	of KYEEMA SPIRIT HOLDING L.L.C.

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	SIGNED by Patrick Smith

	 	 	)	 	 	/s/ Patrick Smith
	duly authorised for and on behalf

	 	 	)	 	 	 
	of NASSAU SPIRIT HOLDING L.L.C.

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	SIGNED by Patrick Smith

	 	 	)	 	 	/s/ Patrick Smith
	duly authorised for and on behalf

	 	 	)	 	 	 
	of FALSTER SPIRIT HOLDING L.L.C.

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	SIGNED by Patrick Smith

	 	 	)	 	 	/s/ Patrick Smith
	duly authorised for and on behalf

	 	 	)	 	 	 
	of SOTRA SPIRIT HOLDING L.L.C.

	 	 	)	 	 	 

125

 

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	SIGNED by Patrick Smith

	 	 	)	 	 	/s/ Patrick Smith
	duly authorised for and on behalf

	 	 	)	 	 	 
	of GODAVARI SPIRIT L.L.C.

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	SIGNED by Patrick Smith

	 	 	)	 	 	/s/ Patrick Smith
	duly authorised for and on behalf

	 	 	)	 	 	 
	of ISKMATI SPIRIT L.L.C.

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	SIGNED by Patrick Smith

	 	 	)	 	 	/s/ Patrick Smith
	duly authorised for and on behalf

	 	 	)	 	 	 
	of ASHKINI SPIRIT L.L.C.

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	SIGNED by Patrick Smith

	 	 	)	 	 	/s/ Patrick Smith
	duly authorised for and on behalf

	 	 	)	 	 	 
	of NARMADA SPIRIT L.L.C.

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	SIGNED by Patrick Smith

	 	 	)	 	 	/s/ Patrick Smith
	duly authorised for and on behalf

	 	 	)	 	 	 
	of KAVERI SPIRIT L.L.C.

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	SIGNED by Patrick Smith

	 	 	)	 	 	/s/ Patrick Smith
	duly authorised for and on behalf

	 	 	)	 	 	 
	of GANGES SPIRIT L.L.C.

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	SIGNED by Patrick Smith

	 	 	)	 	 	/s/ Patrick Smith
	duly authorised for and on behalf

	 	 	)	 	 	 
	of YAMUNA SPIRIT L.L.C.

	 	 	)	 	 	 

126

 

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	SIGNED by Patrick Smith

	 	 	)	 	 	/s/ Patrick Smith
	duly authorised for and on behalf

	 	 	)	 	 	 
	of LUIT SPIRIT L.L.C.

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	SIGNED by Patrick Smith

	 	 	)	 	 	/s/ Patrick Smith
	duly authorised for and on behalf

	 	 	)	 	 	 
	of HUGLI SPIRIT L.L.C.

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	SIGNED by Patrick Smith

	 	 	)	 	 	/s/ Patrick Smith
	duly authorised for and on behalf

	 	 	)	 	 	 
	of TEESTA SPIRIT L.L.C.

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	SIGNED by Patrick Smith

	 	 	)	 	 	/s/ Patrick Smith
	duly authorised for and on behalf

	 	 	)	 	 	 
	of MAHANADI SPIRIT L.L.C.

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	SIGNED by Patrick Smith

	 	 	)	 	 	/s/ Patrick Smith
	duly authorised for and on behalf

	 	 	)	 	 	 
	of ESTHER SPIRIT L.L.C.

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	SIGNED by Patrick Smith

	 	 	)	 	 	/s/ Patrick Smith
	duly authorised for and on behalf

	 	 	)	 	 	 
	of AXEL SPIRIT L.L.C.

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	SIGNED by Milan Thakker

	 	 	)	 	 	/s/ Milan Thakker
	duly authorised for and on behalf

	 	 	)	 	 	 
	of NORDEA BANK NORGE ASA

	 	 	)	 	 	 
	(as a Lender)

	 	 	)	 	 	 

127

 

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	SIGNED by L. Vrettos

	 	 	)	 	 	/s/ L. Vrettos
	duly authorised for and on behalf

	 	 	)	 	 	 
	of CITIBANK, N.A. London Branch

	 	 	)	 	 	 
	(as a Lender)

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	SIGNED by Milan Thakker

	 	 	)	 	 	/s/ Milan Thakker
	duly authorised for and on behalf

	 	 	)	 	 	 
	of ING BANK N.V., London Branch

	 	 	)	 	 	 
	(as a Lender)

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	SIGNED by Milan Thakker

	 	 	)	 	 	/s/ Milan Thakker
	duly authorised for and on behalf

	 	 	)	 	 	 
	of HSH NORDBANK AG (as a Lender)

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	SIGNED by Milan Thakker

	 	 	)	 	 	/s/ Milan Thakker
	duly authorised for and on behalf

	 	 	)	 	 	 
	of FOKUS BANK (being the Norwegian

	 	 	)	 	 	 
	branch of DANSKE BANK A/S) (as a

	 	 	)	 	 	 
	Lender)

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	SIGNED by Milan Thakker

	 	 	)	 	 	/s/ Milan Thakker
	duly authorised for and on behalf

	 	 	)	 	 	 
	of BNP PARIBAS

	 	 	)	 	 	 
	(as a Lender)

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	SIGNED by Milan Thakker

	 	 	)	 	 	/s/ Milan Thakker
	duly authorised for and on behalf

	 	 	)	 	 	 
	of KfW

	 	 	)	 	 	 
	(as a Lender)

	 	 	)	 	 	 

128

 

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	SIGNED by Daniel Twenge

	 	 	)	 	 	/s/ Daniel Twenge
	duly authorised for and on behalf

	 	 	)	 	 	 
	of MORGAN STANLEY BANK

	 	 	)	 	 	 
	(as a Lender)

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	SIGNED by Milan Thakker

	 	 	)	 	 	/s/ Milan Thakker
	duly authorised for and on behalf

	 	 	)	 	 	 
	of SCOTIABANK EUROPE PLC

	 	 	)	 	 	 
	(as a Lender)

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	SIGNED by Milan Thakker

	 	 	)	 	 	/s/ Milan Thakker
	duly authorised for and on behalf

	 	 	)	 	 	 
	of DEUTSCHE BANK AG, FILIALE

	 	 	)	 	 	 
	DEUTSCHLAND GESCHÄFT

	 	 	)	 	 	 
	(as a Lender)

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	SIGNED by

	 	 	)	 	 	/s/ [ILLEGIBLE]
	duly authorised for and on behalf

	 	 	)	 	 	 
	of LLOYDS TSB BANK PLC

	 	 	)	 	 	 
	(as a Lender)

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	SIGNED by Milan Thakker

	 	 	)	 	 	/s/ Milan Thakker
	duly authorised for and on behalf

	 	 	)	 	 	 
	of SUMITOMO MITSUI BANKING

	 	 	)	 	 	 
	CORPORATION, BRUSSELS BRANCH

	 	 	)	 	 	 
	(as a Lender)

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	SIGNED by Milan Thakker

	 	 	)	 	 	/s/ Milan Thakker
	duly authorised for and on behalf

	 	 	)	 	 	 
	of SWEDBANK AB (PUBL)

	 	 	)	 	 	 
	(as a Lender)

	 	 	)	 	 	 

129

 

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	SIGNED by Milan Thakker

	 	 	)	 	 	/s/ Milan Thakker
	duly authorised for and on behalf

	 	 	)	 	 	 
	of ALLIANCE & LEICESTER

	 	 	)	 	 	 
	COMMERCIAL FINANCE PLC

	 	 	)	 	 	 
	(as a Lender)

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	SIGNED by Milan Thakker

	 	 	)	 	 	/s/ Milan Thakker
	duly authorised for and on behalf

	 	 	)	 	 	 
	of CALYON

	 	 	)	 	 	 
	(as a Lender)

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	SIGNED by Milan Thakker

	 	 	)	 	 	/s/ Milan Thakker
	duly authorised for and on behalf

	 	 	)	 	 	 
	of NORDEA BANK FINLAND PLC

	 	 	)	 	 	 
	(as the Agent)

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	SIGNED by Milan Thakker

	 	 	)	 	 	/s/ Milan Thakker
	duly authorised for and on behalf

	 	 	)	 	 	 
	of NORDEA BANK FINLAND PLC

	 	 	)	 	 	 
	(as the Security Trustee)

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	SIGNED by Milan Thakker

	 	 	)	 	 	/s/ Milan Thakker
	duly authorised for and on behalf

	 	 	)	 	 	 
	of NORDEA BANK NORGE ASA

	 	 	)	 	 	 
	(as an MLA)

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	SIGNED by L. Vrettos

	 	 	)	 	 	/s/ L. Vrettos
	duly authorised for and on behalf

	 	 	)	 	 	 
	of CITIGROUP GLOBAL MARKETS

	 	 	)	 	 	 
	LIMITED (as an MLA)

	 	 	)	 	 	 

130

 

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	SIGNED by Milan Thakker

	 	 	)	 	 	/s/ Milan Thakker
	duly authorised for and on behalf

	 	 	)	 	 	 
	of ING BANK N.V., London Branch

	 	 	)	 	 	 
	(as an MLA)

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	SIGNED by Milan Thakker

	 	 	)	 	 	/s/ Milan Thakker
	duly authorised for and on behalf

	 	 	)	 	 	 
	of HSH NORDBANK AS (as an MLA)

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	SIGNED by Milan Thakker

	 	 	)	 	 	/s/ Milan Thakker
	duly authorised for and on behalf

	 	 	)	 	 	 
	of DANSKE BANK A/S (as an

	 	 	)	 	 	 
	MLA)

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	SIGNED by Milan Thakker

	 	 	)	 	 	/s/ Milan Thakker
	duly authorised for and on behalf

	 	 	)	 	 	 
	of BNP PARIBAS (as an MLA)

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	SIGNED by Milan Thakker

	 	 	)	 	 	/s/ Milan Thakker
	duly authorised for and on behalf

	 	 	)	 	 	 
	of NORDEA BANK NORGE ASA

	 	 	)	 	 	 
	(as a bookrunner)

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	SIGNED by L. Vrettos

	 	 	)	 	 	/s/ L. Vrettos
	duly authorised for and on behalf

	 	 	)	 	 	 
	of
CITIGROUP GLOBAL MARKETS LIMITED

	 	 	)	 	 	 
	(as a bookrunner)

	 	 	)	 	 	 

131

 

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	SIGNED by Milan Thakker

	 	 	)	 	 	/s/ Milan Thakker
	duly authorised for and on behalf

	 	 	)	 	 	 
	of ING BANK N.V., London Branch

	 	 	)	 	 	 
	(as a bookrunner)

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	SIGNED by Milan Thakker

	 	 	)	 	 	/s/ Milan Thakker
	duly authorised for and on behalf

	 	 	)	 	 	 
	of HSH NORDBANK AG

	 	 	)	 	 	 
	(as Swap Provider)

	 	 	)	 	 	 

132

 

DATED       November 2007

THE BORROWERS

(as Borrowers)

- and -

THE SEVERAL LENDERS

(as Lenders)

- and -

NORDEA BANK FINLAND PLC

(as Agent)

- and -

NORDEA BANK FINLAND PLC

(as Security Trustee)

- and -

NORDEA BANK NORGE ASA

CITIGROUP GLOBAL MARKETS LIMITED

ING BANK N.V., London Branch

HSH NORDBANK AG

DANSKE BANK A/S

BNP PARIBAS

(as Mandated Lead Arrangers)

- and -

NORDEA BANK NORGE ASA

CITIGROUP GLOBAL MARKETS LIMITED

ING BANK N.V., London Branch

(as Bookrunners)

- and -

HSH NORDBANK AG

(as Swap Provider)

 

SECURED FACILITY AGREEMENT

 

STEPHENSON HARWOOD

One St. Paul’s Churchyard

London EC4M 8SH

Tel: 020 7329 4422

Fax: 020 7329 7100

Ref: 819/1138

 

 

CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 	 	 
	 	 	 	 
	1	 	Definitions and Interpretation
	 	 	2	 
	 	 	 
	 	 	 	 
	2	 	The Facility and its Purposes
	 	 	20	 
	 	 	 
	 	 	 	 
	3	 	Conditions of Utilisation
	 	 	22	 
	 	 	 
	 	 	 	 
	4	 	Advance
	 	 	29	 
	 	 	 
	 	 	 	 
	5	 	Repayment
	 	 	29	 
	 	 	 
	 	 	 	 
	6	 	Prepayment
	 	 	29	 
	 	 	 
	 	 	 	 
	7	 	Interest
	 	 	31	 
	 	 	 
	 	 	 	 
	8	 	Indemnities
	 	 	34	 
	 	 	 
	 	 	 	 
	9	 	Fees
	 	 	38	 
	 	 	 
	 	 	 	 
	10	 	Security and Application of Moneys
	 	 	38	 
	 	 	 
	 	 	 	 
	11	 	Representations and Warranties
	 	 	41	 
	 	 	 
	 	 	 	 
	12	 	Undertakings and Covenants
	 	 	46	 
	 	 	 
	 	 	 	 
	13	 	Events of Default
	 	 	51	 
	 	 	 
	 	 	 	 
	14	 	Assignment and Sub-Participation
	 	 	57	 
	 	 	 
	 	 	 	 
	15	 	The Agent, the Security Trustee and the Lenders
	 	 	60	 
	 	 	 
	 	 	 	 
	16	 	Set-Off
	 	 	70	 
	 	 	 
	 	 	 	 
	17	 	Payments
	 	 	70	 
	 	 	 
	 	 	 	 
	18	 	Notices
	 	 	72	 
	 	 	 
	 	 	 	 
	19	 	Partial Invalidity
	 	 	75	 
	 	 	 
	 	 	 	 
	20	 	Remedies and Waivers
	 	 	75	 

 

 

	 	 	 	 	 	 	 
	21	 	Joint and several liability; liability of Hugli
	 	 	75	 
	 	 	 
	 	 	 	 
	22	 	Miscellaneous
	 	 	78	 
	 	 	 
	 	 	 	 
	23	 	Law and Jurisdiction
	 	 	80	 

	 	 	 	 	 	 	 
	SCHEDULE 1: The Lenders and the Commitments
	 	 	 	 	82	 
	 
	 	 	 	 	 	 
	SCHEDULE 2: The Borrowers and the Vessels
	 	 	 	 	94	 
	 
	 	 	 	 	 	 
	SCHEDULE 3: Conditions Precedent and Subsequent
	 	 	 	 	96	 
	Part I A: Conditions precedent to the First Drawdown Date for Tranche A
	 	 	 	 	96	 
	Part I B: Conditions precedent to the First Drawdown Date for Tranche B
	 	 	 	 	99	 
	Part II: Conditions subsequent to the First Drawdown Date in respect
of either Tranche A or Tranche B
	 	 	 	 	102	 
	Part III: Conditions precedent to a Collateral Transfer Date
	 	 	 	 	103	 
	Part IV: Conditions subsequent to a Collateral Transfer Date
	 	 	 	 	105	 
	Part V: Conditions precedent to an Upsize Amount Drawdown Date
	 	 	 	 	106	 
	Part VI: Conditions subsequent to an Upsize Amount Drawdown Date
	 	 	 	 	109	 
	Part VII: Conditions precedent to the Tranche B Step Up Date
	 	 	 	 	110	 
	Part VIII: Conditions subsequent to the Tranche B Step Up Date
	 	 	 	 	113	 
	 
	 	 	 	 	 	 
	SCHEDULE 4: Calculation of Mandatory Cost
	 	 	 	 	114	 
	 
	 	 	 	 	 	 
	SCHEDULE 5: Form of Drawdown Notice
	 	 	 	 	116	 
	 
	 	 	 	 	 	 
	SCHEDULE 6: Form of Transfer Certificate
	 	 	 	 	117	 
	 
	 	 	 	 	 	 
	SCHEDULE 7: Form of Upsize Notice
	 	 	 	 	120	 
	 
	 	 	 	 	 	 
	SCHEDULE 8: Reductions
	 	 	 	 	121	 
	 
	 	 	 	 	 	 
	SCHEDULE 9: Form of Collateral Transfer Notice
	 	 	 	 	124exhibit4_5.htm

    
      Exhibit 4.5

      Execution
Draft

      

      REVOLVING
CREDIT AGREEMENT

      

      dated as
of

      

      March 14,
2008

      

      among

      

      NATIONAL
RURAL UTILITIES

      COOPERATIVE
FINANCE CORPORATION,

      

      THE BANKS
LISTED HEREIN,

      

      DEUTSCHE
BANK SECURITIES INC.,

      

      UBS LOAN
FINANCE LLC

      

      and

      

      THE BANK
OF TOKYO-MITSUBISHI UFJ, LTD., NEW YORK BRANCH

      as
Co-Documentation Agents,

      

      

      THE BANK
OF NOVA SCOTIA,

      as
Administrative Agent

      

      and

      

      THE ROYAL
BANK OF SCOTLAND PLC,

      as
Syndication Agent

      

      

      
        
          
            

          

      

      THE ROYAL
BANK OF SCOTLAND PLC

      

      and

      

      THE BANK
OF NOVA SCOTIA,

      as
Co-Lead Arrangers and Joint Bookrunners

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                TABLE
      OF CONTENTS

              	 
      
	 
      	 
      
	 
      	
                Page

              
	
                ARTICLE
      1

              	 
      
	
                Definitions

              	 
      
	
                Section
      1.01.  Definitions

              	
                1

              
	
                Section
      1.02.  Accounting Terms and Determinations

              	
                14

              
	
                Section
      1.03.  Types of Borrowings

              	
                14

              
	
                ARTICLE
      2

              	 
      
	
                The
      Credits

              	 
      
	
                Section
      2.01.  Commitments to Lend

              	
                14

              
	
                Section
      2.02.  Notice of Committed Borrowings

              	
                14

              
	
                Section
      2.03.  Money Market Borrowings

              	
                15

              
	
                Section
      2.04.  Notice to Banks; Funding of Loans

              	
                19

              
	
                Section
      2.05.  Notes

              	
                20

              
	
                Section
      2.06.  Maturity of Loans

              	
                20

              
	
                Section
      2.07.  Interest Rates

              	
                20

              
	
                Section
      2.08.  Method of Electing Interest Rates

              	
                22

              
	
                Section
      2.09.  Fees

              	
                24

              
	
                Section
      2.10.  Optional Termination or Reduction of
      Commitments

              	
                25

              
	
                Section
      2.11.  Mandatory Termination of Commitments

              	
                25

              
	
                Section
      2.12.  Optional Prepayments

              	
                25

              
	
                Section
      2.13.  General Provisions as to Payments

              	
                25

              
	
                Section
      2.14.  Funding Losses

              	
                26

              
	
                Section
      2.15.  Computation of Interest and Fees

              	
                26

              
	
                Section
      2.16.  Withholding Tax Exemption

              	
                27

              
	
                Section
      2.17.  Increase of Commitments

              	
                27

              
	
                ARTICLE
      3

              	 
      
	
                Conditions

              	 
      
	
                Section
      3.01.  Effectiveness

              	
                28

              
	
                Section
      3.02.  Prior Credit Agreement

              	
                29

              
	
                Section
      3.03.  Borrowings

              	
                30

              
	
                ARTICLE
      4

              	 
      
	
                Representations
      and Warranties

              	 
      
	
                Section
      4.01.  Corporate Existence, Power and Authority

              	
                31

              
	
                Section
      4.02.  Financial Statements

              	
                31

              
	
                Section
      4.03.  Litigation

              	
                32

              
	
                Section
      4.04.  Governmental Authorizations

              	
                33

              
	
                Section
      4.05.  Members’ Subordinated Certificates

              	
                33

              

      

       

      
         

        
          
            
            

          

          
            i

            
              

            

          

          
            
            

          

        

      

       

      
        	
                Section
      4.06.  No Violation of Agreements

              	
                33

              
	
                Section
      4.07.  No Event of Default under the Indentures

              	
                33

              
	
                Section
      4.08.  Compliance with ERISA

              	
                34

              
	
                Section
      4.09.  Compliance with Other Laws

              	
                34

              
	
                Section
      4.10.  Tax Status

              	
                34

              
	
                Section
      4.11.  Investment Company Act

              	
                34

              
	
                Section
      4.12.  Disclosure

              	
                34

              
	
                Section
      4.13.  Subsidiaries

              	
                35

              

      

      
        	
                Section
      4.14.  Environmental Matters

              	
                35

              
	
                ARTICLE
      5

              	 
      
	
                Covenants

              	 
      
	
                Section
      5.01.  Corporate Existence

              	
                35

              
	
                Section
      5.02.  Disposition of Assets, Merger, Character of Business,
      etc

              	
                36

              
	
                Section
      5.03.  Financial Information

              	
                36

              
	
                Section
      5.04.  Default Certificates

              	
                38

              
	
                Section
      5.05.  Notice of Litigation, Legislative Developments and
      Defaults

              	
                39

              
	
                Section
      5.06.  ERISA

              	
                39

              
	
                Section
      5.07.  Payment of Charges

              	
                39

              
	
                Section
      5.08.  Inspection of Books and Assets

              	
                40

              
	
                Section
      5.09.  Indebtedness

              	
                40

              
	
                Section
      5.10.  Liens

              	
                41

              
	
                Section
      5.11.  Maintenance of Insurance

              	
                42

              
	
                Section
      5.12.  Subsidiaries and Joint Ventures

              	
                42

              
	
                Section
      5.13.  Minimum TIER

              	
                43

              
	
                Section
      5.14.  Retirement of Patronage Capital

              	
                43

              
	
                Section
      5.15.  Use of Proceeds

              	
                43

              
	
                ARTICLE
      6

              	 
      
	
                Defaults

              	 
      
	
                Section
      6.01.  Events of Defaults

              	
                44

              
	
                Section
      6.02.  Notice of Default

              	
                46

              
	
                ARTICLE
      7

              	 
      
	
                The
      Administrative Agent

              	 
      
	
                Section
      7.01.  Appointment and Authorization

              	
                46

              
	
                Section
      7.02.  Administrative Agent and Affiliates

              	
                46

              
	
                Section
      7.03.  Action by Administrative Agent

              	
                46

              
	
                Section
      7.04.  Consultation with Experts

              	
                46

              
	
                Section
      7.05.  Liability of Administrative Agent

              	
                47

              
	
                Section
      7.06.  Indemnification

              	
                47

              
	
                Section
      7.07.  Credit Decision

              	
                47

              
	
                Section
      7.08.  Successor Administrative Agent

              	
                47

              
	
                Section
      7.09.  Co-Documentation Agents and Syndication Agent Not
      Liable

              	
                48

              

      

       

      
         

        
          
            
            

          

          
            ii

            
              

            

          

          
            
            

          

        

      

       

      
        	
                ARTICLE
      8

              	 
      
	
                Change
      in Circumstances

              	 
      
	
                Section
      8.01.  Basis for Determining Interest Rate Inadequate or
      Unfair

              	
                48

              
	
                Section
      8.02.  Illegality

              	
                49

              
	
                Section
      8.03.  Increased Cost and Reduced Return

              	
                49

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

              	
                51

              
	
                ARTICLE
      9

              	 
      
	
                Miscellaneous

              	 
      
	
                Section
      9.01.  Notices

              	
                51

              
	
                Section
      9.02.  No Waivers

              	
                52

              
	
                Section
      9.03.  Expenses; Documentary Taxes;
    Indemnification

              	
                52

              
	
                Section
      9.04.  Sharing of Set-offs

              	
                53

              
	
                Section
      9.05.  Amendments and Waivers

              	
                53

              
	
                Section
      9.06.  Successors and Assigns

              	
                54

              
	
                Section
      9.07.  Collateral

              	
                55

              
	
                Section
      9.08.  Governing Law

              	
                55

              
	
                Section
      9.09.  Counterparts; Integration

              	
                56

              
	
                Section
      9.10.  Several Obligations

              	
                56

              

      

      
        	
                Section
      9.11.  Severability

              	
                56

              
	
                Section
      9.12.  Confidentiality

              	
                56

              
	
                Section
      9.13.  WAIVER OF JURY TRIAL

              	
                57

              
	
                Section
      9.14. USA Patriot Act

              	
                57

              

      

      

       

      
        
          
          

        

        
          iii

          
            

          

        

        
          
          

        

      

      Schedules

      

      Agent
Schedule

      Commitment
Schedule

      Pricing
Schedule

      Schedule
5.03(a)                                                      Non-GAAP
Subsidiaries

      

      
        	
                 
      

              	
                Exhibits

              

      

      

      
        	
                Exhibit
      A

              	
                -

              	
                Form
      of Note

              

      

      
        	Exhibit B-1
      and B-2 	
                -

              	
                Forms
      of RUS Guarantee

              

      

      
        	
                Exhibit
      C

              	
                -

              	
                Money
      Market Quote Request

              

      

      
        	
                Exhibit
      D

              	
                -

              	
                Invitation
      for Money Market Quotes

              

      

      
        	
                Exhibit
      E

              	
                -

              	
                Money
      Market Quote

              

      

      
        	
                Exhibit
      F

              	
                -

              	
                Opinion
      of General Counsel for the Borrower

              

      

      Annex A to Exhibit
F  -  Subsidiaries and Joint Ventures

      
        	
                Exhibit
      G

              	
                -

              	
                Opinion
      of Special Counsel for the Administrative Agent

              	
                 

              

      

      
        	
                Exhibit
      H

              	
                -

              	
                Assignment
      and Assumption Agreement

              

      

       

       

      
        
          
          

        

        
          iv

          
            

          

        

        
          
          

        

      

       

      REVOLVING
CREDIT AGREEMENT

       

      REVOLVING
CREDIT AGREEMENT dated as of March 14, 2008, among NATIONAL RURAL UTILITIES
COOPERATIVE FINANCE CORPORATION, a not-for-profit cooperative association
incorporated under the laws of the District of Columbia, as Borrower, the BANKS
listed on the signature pages hereof, DEUTSCHE BANK SECURITIES INC., UBS LOAN
FINANCE LLC and THE BANK OF TOKYO-MITSUBISHI UFJ, LTD., New York Branch, as
Co-Documentation Agents, THE ROYAL BANK OF SCOTLAND PLC, as Syndication Agent,
and THE BANK OF NOVA SCOTIA, as Administrative Agent.

      The
parties hereto agree as follows:

       

      ARTICLE 1

       

      Definitions

      
         

      

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

       

      “2007 Indenture” means the
Indenture dated as of October 25, 2007 between the Borrower and U.S. Bank
National Association, as trustee, as amended and supplemented from time to time,
providing for the issuance in series of certain collateral trust bonds of the
Borrower.

       

      “1994 Indenture” means the
Indenture dated as of February 15, 1994 and as amended as of September 16, 1994
between the Borrower and U.S. Bank National Association, as trustee, as amended
and supplemented from time to time, providing for the issuance in series of
certain collateral trust bonds of the Borrower.

       

      “1972 Indenture” means the
Seventeenth Supplemental Indenture dated as of March 1, 1987, amending and
restating in full the Indenture dated as of December 1, 1972, by and between the
Borrower and U.S. Bank Trust National Association, as trustee, as amended and
supplemented from time to time, providing for the issuance in series of certain
collateral trust bonds of the Borrower.

       

      “Absolute Rate Auction” means a
solicitation of Money Market Quotes setting forth Money Market Absolute Rates
pursuant to Section 2.03.

       

      “Adjusted London Interbank Offered
Rate” has the meaning set forth in Section 2.07(b).

       

      “Administrative Agent” means
The Bank of Nova Scotia, in its capacity as administrative agent for the Banks
hereunder, and its successors in such capacity.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      “Administrative Questionnaire”
means, with respect to each Bank, the administrative questionnaire in the form
submitted to such Bank by the Administrative Agent and submitted to the
Administrative Agent (with a copy to the Borrower) duly completed by such
Bank.

       

      “Agreement” means this
Revolving Credit Agreement, as the same may be amended from time to
time.

       

      “Applicable Lending Office”
means, with respect to any Bank, (i) in the case of its Base Rate Loans, its
Domestic Lending Office, (ii) in the case of its Euro-Dollar Loans, its
Euro-Dollar Lending Office and (iii) in the case of its Money Market Loans, its
Money Market Lending Office.

       

      “Assignee” has the meaning set
forth in Section 9.06(c).

       

      “Bank” means each bank listed
on the signature pages hereof, each Assignee which becomes a Bank pursuant to
Section 9.06(c), and their respective successors.

       

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

       

      “Base Rate Loan” means a
Committed Loan that bears interest at the Base Rate pursuant to the applicable
Notice of Committed Borrowing or Notice of Interest Rate Election or the last
sentence of Section 2.08(a) or Article 8.

       

      “Bonds” means any bonds issued
pursuant to any of the Indentures, as the context may require.

       

      “Borrower” means the National
Rural Utilities Cooperative Finance Corporation, a not-for-profit cooperative
association incorporated under the laws of the District of Columbia, and its
successors.

       

      “Borrowing” has the meaning set
forth in Section 1.03.

       

      “Co-Documentation Agents” means
Deutsche Bank Securities Inc., UBS Loan Finance LLC and The Bank of
Tokyo-Mitsubishi UFJ, LTD., New York Branch, each in its capacity as
co-documentation agent hereunder, and their successors in such
capacity.

       

      “Commitment” means (i) with
respect to each Bank listed on the signature pages hereof, the amount set forth
opposite the name of such Bank on the Commitment Schedule hereto and (ii) with
respect to any Assignee that becomes a Bank pursuant to Section 9.06(c), the
amount of the transferor Bank’s Commitment assigned to it pursuant to Section
9.06(c), in each case as such amount may from time to time be reduced pursuant
to Sections 2.10 and 2.11; provided that, if the context
so requires, the term “Commitment” means the 

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      obligation
of a Bank to extend credit up to such amount to the Borrower
hereunder.

       

      “Committed Borrowing” means a
Borrowing under Section 2.01.

       

      “Committed Loan” means a
Revolving Loan or a Term Loan; provided that, if any such
loan or loans (or portions thereof) are combined or subdivided pursuant to a
Notice of Interest Rate Election, the term “Committed Loan” shall refer to the
combined principal amount resulting from such combination or to each of the
separate principal amounts resulting from such subdivision, as the case may
be.

       

      “Commitment Termination Date”
means March 13, 2009 or, if such day is not a Euro-Dollar Business Day, the next
preceding Euro-Dollar Business Day.

       

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

       

      “Consolidated Subsidiary Member” has the
meaning set forth in Section 5.03(b)(iii)(A).

       

      “Default” means any condition
or event which constitutes an Event of Default or which with the giving of
notice or lapse of time or both (as specified in Section 6.01) would, unless
cured or waived, become an Event of Default.

       

      “Derivative Cash Settlements” means, for
any period, the line item “derivative cash settlements” as it appears on the
statement of operations of the Borrower and its Consolidated Subsidiaries for
such period delivered to the Banks pursuant to Section 5.03(b), calculated in
accordance with generally accepted accounting principles as in effect from time
to time.

       

      “Derivatives Obligations” of
any Person means all obligations of such Person in respect of any rate swap
transaction, basis swap, forward rate transaction, commodity swap, commodity
option, equity or equity index swap, equity or equity index option, bond option,
interest rate option, foreign exchange transaction, cap transaction, floor
transaction, collar transaction, currency swap transaction, cross-currency rate
swap transaction, currency option or any other similar transaction (including
any option with respect to any of the foregoing transactions) or any combination
of the foregoing transactions.

       

      “Determination Date” has the
meaning set forth in Section 5.09.

       

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

       

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      “Domestic Lending Office”
means, as to each Bank, its office located at its address set forth in its
Administrative Questionnaire (or identified in its Administrative Questionnaire
as its Domestic Lending Office) or such other office as such Bank may hereafter
designate as its Domestic Lending Office by notice to the Borrower and the
Administrative Agent.

       

      “Effective Date” means the date
this Agreement becomes effective in accordance with Section 3.01.

       

      “Environmental Laws” means any
and all federal, state, local and foreign statutes, laws, judicial decisions,
regulations, ordinances, rules, judgments, orders, decrees, plans, injunctions,
permits, concessions, grants, franchises, licenses, agreements and governmental
restrictions relating to the environment, the effect of the environment on human
health or to emissions, discharges or releases of pollutants, contaminants,
Hazardous Substances or wastes into the environment including, without
limitation, ambient air, surface water, ground water, or land, or otherwise
relating to the manufacture, processing, distribution, use, treatment, storage,
disposal, transport or handling of pollutants, contaminants, Hazardous
Substances or wastes or the clean-up or other remediation thereof.

       

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

       

      “ERISA Group” means the
Borrower, any Subsidiary and all members of a controlled group of corporations
and all trades or businesses (whether or not incorporated) under common control
which, together with the Borrower or any Subsidiary, are treated as a single
employer under Section 414(b) or (c) of the Internal Revenue Code or, for
purposes of Section 412 of the Internal Revenue Code, under Section 414(b), (c),
(m) or (o) of the Internal Revenue Code.

       

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

       

      “Euro-Dollar Lending Office”
means, as to each Bank, its office, branch or affiliate located at its address
set forth in its Administrative Questionnaire (or identified in its
Administrative Questionnaire as its Euro-Dollar Lending Office) or such other
office, branch or affiliate of such Bank as it may hereafter designate as its
Euro-Dollar Lending Office by notice to the Borrower and the Administrative
Agent.

       

      “Euro-Dollar Loan” means a
Committed Loan that bears interest at a Euro-Dollar Rate pursuant to the
applicable Notice of Committed Borrowing or Notice of Interest Rate
Election.

       

      “Euro-Dollar Margin” means a
rate per annum determined in accordance with the Pricing Schedule.

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      “Euro-Dollar Rate” means, for
any day, a rate per annum determined in accordance with Section
2.07(b).

       

      “Euro-Dollar Reference Banks”
means the principal London offices of The Bank of Nova Scotia and The Royal Bank
of Scotland plc.

       

      “Euro-Dollar Reserve
Percentage” has the meaning set forth in Section 2.07(b).

       

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

       

      “Facility Fee Rate” means a
rate per annum determined in accordance with the Pricing Schedule.

       

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

       

      “Fixed Rate Borrowing” means
either a Euro-Dollar Borrowing or a  Money Market LIBOR
Borrowing.

       

      “Fixed Rate Loans” means
Euro-Dollar Loans or Money Market Loans (excluding Money Market LIBOR Loans
bearing interest at the Base Rate pursuant to Section 8.01) or any combination
of the foregoing.

       

      “Foreclosed Asset” has the
meaning set forth in Section 5.12.

       

      “Group of Loans” means, at any
time, a group of Loans consisting of (i) all Committed Loans which are Base Rate
Loans at such time or (ii) all Euro-Dollar Loans having the same Interest Period
at such time; provided
that if a Committed Loan of any particular Bank is converted to or made as a
Base Rate Loan pursuant to Article 8, such Loan shall be included in the same
Group or Groups of Loans from time to time as it would have been in if it had
not been so converted or made.

       

      “Guarantee” by any Person means
any obligation, contingent or otherwise, of such Person directly or indirectly
guaranteeing any Indebtedness or lease payments of any other Person or otherwise
in any manner assuring the holder of any Indebtedness of, or the obligee under
any lease of, any other Person through an agreement, contingent or otherwise, to
purchase Indebtedness or the 

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      property
subject to such lease, or to purchase goods, supplies or services primarily for
the purpose of enabling the debtor or obligor to make payment of the
Indebtedness or under such lease or of assuring such Person against loss, or to
supply funds to or in any other manner invest in the debtor or obligor, or
otherwise; provided
that the term “Guarantee” shall not include
endorsements for collection or deposit in the ordinary course of
business.  The term “Guarantee” when used as a verb
has a correlative meaning.

       

      “Guaranteed Portion” has the
meaning set forth in the definition of RUS Guaranteed Loan.

       

      “Hazardous Substances” means
any toxic, radioactive, caustic or otherwise hazardous substance, including
petroleum, its derivatives, by-products and other hydrocarbons, or any substance
having any constituent elements displaying any of the foregoing
characteristics.

       

      “Indebtedness” with respect to
any Person means:

       

      (1)           all
indebtedness which would appear as indebtedness on a balance sheet of such
Person prepared in accordance with generally accepted accounting principles (i)
for money borrowed, (ii) which is evidenced by securities sold for money or
(iii) which constitutes purchase money indebtedness;

       

      (2)           all
indebtedness of others Guaranteed by such Person;

       

      (3)           all
indebtedness secured by any Lien upon property owned by such Person, even though
such Person has not assumed or become liable for the payment of such
indebtedness; and

       

      (4)           all
indebtedness of such Person created or arising under any conditional sale or
other title retention agreement (including any lease in the nature of a 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 of such property), but only if
such property is included as an asset on the balance sheet of such
Person;

       

      provided that, in computing
the “Indebtedness” of
such Person, there shall be excluded any particular indebtedness if, upon or
prior to the maturity thereof, there shall have been deposited with the proper
depositary in trust money (or evidences of such indebtedness) in the amount
necessary to pay, redeem or satisfy such indebtedness, and thereafter such money
and evidences of indebtedness so deposited shall not be included in any
computation of the assets of such Person; and provided further that no provision of
this definition shall be construed to include as “Indebtedness” of the Borrower
or its Consolidated Subsidiaries any indebtedness by virtue of any agreement by
the Borrower or its Consolidated Subsidiaries to advance or supply funds to
Members or Consolidated Subsidiary Members.

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

            

      “Indenture” means either the
1972 Indenture, the 1994 Indenture, the 2007 Indenture or any other Indenture
that provides for borrowing on terms not materially more disadvantageous to the
Borrower’s unsecured creditors than the borrowings under the 1972 Indenture, the
1994 Indenture or the 2007 Indenture, and “Indentures” means all such
Indentures.

       

      “Interest Expense” means, for
any period, the line item “interest expense” as it appears on the statement of
operations of the Borrower and its Consolidated Subsidiaries for such period
delivered to the Banks pursuant to Section 5.03(b), calculated in accordance
with generally accepted accounting principles as in effect from time to
time.

       

      “Interest Period” means: (1)
with respect to each Euro-Dollar Borrowing, the period commencing on the date of
such Borrowing and ending one, two, three or six months thereafter, as the
Borrower may elect in the applicable Notice of Borrowing; provided that:

       

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

       

      (b)           any
Interest Period which begins on the last Euro-Dollar Business Day of a calendar
month (or on a day for which there is no numerically corresponding day in the
calendar month at the end of such Interest Period) shall, subject to clause (c)
below, end on the last Euro-Dollar Business Day of a calendar month;
and

       

      (c)           any
Interest Period of any Euro-Dollar Loan included in such Borrowing which would
otherwise end after the Maturity Date shall, with respect to such Euro-Dollar
Loan, end on such Maturity Date;

       

      (2)           with
respect to each Base Rate Borrowing, the period commencing on the date of such
Borrowing and ending 30 days thereafter; provided that:

       

      (a)           any
Interest Period which would otherwise end on a day which is not a Euro-Dollar
Business Day shall be extended to the next succeeding Euro-Dollar Business Day;
and

       

      (b)           any
Interest Period of any Base Rate Loan included in such Borrowing which would
otherwise end after the Maturity Date shall, with respect to such Base Rate
Loan, end on such Maturity Date;

       

      (3)           with
respect to each Money Market LIBOR Borrowing, the period commencing on the date
of such Borrowing and ending any whole number of months thereafter (but not less
than one month) as the Borrower may elect in the applicable Notice of Borrowing;
provided
that:

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

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

       

      (b)           any
Interest Period which begins on the last Euro-Dollar Business Day of a calendar
month (or on a day for which there is no numerically corresponding day in the
calendar month at the end of such Interest Period) shall, subject to clause (c)
below, end on the last Euro-Dollar Business Day of a calendar month;
and

       

      (c)           any
Interest Period which would otherwise end after the Commitment Termination Date
shall end on the Commitment Termination Date; and

       

      (4)           with
respect to each Money Market Absolute Rate Borrowing, the period commencing on
the date of such Borrowing and ending such number of days thereafter (but not
less than 30 days) as the Borrower may elect in the applicable Notice of
Borrowing; provided
that:

       

      (a)           any
Interest Period which would otherwise end on a day which is not a Euro-Dollar
Business Day shall be extended to the next succeeding Euro-Dollar Business Day;
and

       

      (b)           any
Interest Period which would otherwise end after the Commitment Termination Date
shall end on the Commitment Termination Date.

       

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

       

      “Investments” has the meaning
set forth in Section 5.12.

       

      “Joint Venture” means any
corporation, partnership, association, joint venture or other entity in which
the Borrower, directly or indirectly through Subsidiaries or Joint Ventures, has
an equity interest at the time of 10% or more but which is not a Subsidiary;
provided that no Person
whose only assets are RUS Guaranteed Loans and investments incidental thereto
shall be deemed a Joint Venture.

       

      “LIBOR Auction” means a
solicitation of Money Market Quotes setting forth Money Market Margins based on
the London Interbank Offered Rate pursuant to Section 2.03.

       

      “Lien” means, with respect to
any asset, any mortgage, lien, pledge, charge, security interest or encumbrance
of any kind in respect of such asset.  For the purposes of this
Agreement, the Borrower or any Subsidiary shall be deemed to own subject to a
Lien any asset which it has acquired or holds subject to the 

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

      interest
of a vendor or lessor under any conditional sale agreement, capital lease or
other title retention agreement relating to such asset.

       

      “Loan” means a Base Rate Loan
or a Euro-Dollar Loan or a Money Market Loan and “Loans” means Base Rate Loans
or Euro-Dollar Loans or Money Market Loans or any combination of the
foregoing.

       

      “London Interbank Offered Rate”
has the meaning set forth in Section 2.07(b).

       

      “Maturity Date” means (i) with
respect to any Revolving Loan, the Commitment Termination Date, (ii) with
respect to any Term Loan, the first anniversary of the Commitment Termination
Date, and (iii) with respect to any Money Market Loan, the last day of the
Interest Period applicable thereto.

       

      “Member” means any Person which
is a member or a patron of the Borrower.

       

      “Members’ Subordinated
Certificate” means a note of the Borrower or its Consolidated
Subsidiaries substantially in the form of the membership subordinated
subscription certificates and the loan and guarantee subordinated certificates
outstanding on the date of the execution and delivery of this Agreement and any
other Indebtedness of the Borrower or its Consolidated Subsidiaries having
substantially similar provisions as to subordination as those contained in said
outstanding membership subordinated subscription certificates and loan and
guarantee subordinated certificates.

       

      “Money Market Absolute Rate”
has the meaning set forth in Section 2.03(d).

       

      “Money Market Absolute Rate
Loan” means a loan to be made by a Bank pursuant to an Absolute Rate
Auction.

       

      “Money Market Lending Office”
means, as to each Bank, its Domestic Lending Office or such other office, branch
or affiliate of such Bank as it may hereafter designate as its Money Market
Lending Office by notice to the Borrower and the Administrative Agent; provided that any Bank may
from time to time by notice to the Borrower and the Administrative Agent
designate separate Money Market Lending Offices for its Money Market LIBOR
Loans, on the one hand, and its Money Market Absolute Rate Loans, on the other
hand, in which case all references herein to the Money Market Lending Office of
such Bank shall be deemed to refer to either or both of such offices, as the
context may require.

       

      “Money Market LIBOR Loan” means
a loan to be made by a Bank pursuant to a LIBOR Auction (including such a loan
bearing interest at the Prime Rate pursuant to Section 8.01(a)).

       

      “Money Market Loan” means a
Money Market LIBOR Loan or a Money Market Absolute Rate Loan.

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

      “Money Market Margin” has the
meaning set forth in Section 2.03(d).

       

      “Money Market Quote” means an
offer by a Bank to make a Money Market Loan in accordance with Section
2.03.

       

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

       

      “Multiple Employer Plan” means
a single employer plan, as defined in Section 4001 of ERISA and subject to Title
IV of ERISA, which has two or more contributing sponsors, one of whom is the
Borrower or a Subsidiary of the Borrower or any member of the ERISA Group, at
least two of whom are not under common control, within the meaning of Section
4063 of ERISA.

       

      “Net Income” means, for any
period, the sum of (i) the line item “net income” on the consolidated statement
of operations of the Borrower and its Consolidated Subsidiaries plus (ii) the line item
“minority interest” on the consolidated statement of operations of the Borrower
and its Consolidated Subsidiaries at the last day of such period, each as it
appears in the financial statements for such period delivered to the Banks
pursuant to Section 5.03(b), and each calculated in accordance with generally
accepted accounting principles as in effect from time to time; provided that non-cash
adjustments (whether positive or negative) required to be made pursuant to SFAS
133 and SFAS 52 on each such line item shall be excluded from the calculation
thereof to the extent otherwise included therein.

       

      “Notes” means promissory notes
of the Borrower, substantially in the form of Exhibit A hereto, evidencing the
obligation of the Borrower to repay the Loans, and “Note” means any one of such
promissory notes issued hereunder.

       

      “Notice of Borrowing” means a
Notice of Committed Borrowing or a Notice of Money Market
Borrowing.

       

      “Notice of Committed Borrowing”
has the meaning set forth in Section 2.02.

       

      “Notice of Interest Rate
Election” has the meaning set forth in Section 2.08.

       

      “Notice of Money Market
Borrowing” has the meaning set forth in Section 2.03(f).

       

      “Participant” has the meaning
set forth in Section 9.06(b).

       

      “Patronage Capital
Certificates” means those certificates that evidence the portion of Net
Income allocated by the Borrower among its Members in accordance with applicable
cooperative principles.

       

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

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

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

       

      “Plan” means any multiemployer
plan or single employer plan (including any Multiple Employer Plan), as defined
in Section 4001 and subject to Title IV of ERISA, which is maintained or
contributed to by, or at any time during the five calendar years preceding the
date of this Agreement was maintained or contributed to by, the Borrower or a
Subsidiary of the Borrower or any member of the ERISA Group.

       

      “Pricing Schedule” means the
Pricing Schedule attached hereto.

       

      “Prime Rate” means the rate of
interest published by the Wall
Street Journal from time to time as its prime rate.

       

      “Prior 364-Day Credit
Agreement” means the 364-Day Revolving Credit Agreement dated as of March
16, 2007, among the Borrower, the banks named therein, ABN Amro Bank, N.V., The
Bank of Tokyo-Mitsubishi UFJ, Ltd., New York Branch, and The Royal Bank of
Scotland plc, as Co-Documentation Agents, The Bank of Nova Scotia, as
Syndication Agent, and JP Morgan Chase Bank, N.A., as Administrative
Agent.

       

      “Qualified Subordinated
Indebtedness” means the Borrower’s (i) 6.75% Subordinated Deferrable
Interest Notes Due 2043, (ii) 6.10% Subordinated Deferrable Interest Notes Due
2044, (iii) 5.95% Subordinated Deferrable Interest Notes Due 2045, and (iv) any
other Indebtedness of the Borrower having substantially similar terms as to
subordination as those contained in the instruments and documents relating to
the foregoing Indebtedness or that would be junior to any of the foregoing;
provided that such
Indebtedness (a) will not mature prior to the Maturity Date and (b) does not
require payments of principal prior to the Maturity Date, except pursuant to
acceleration or at the option of the Borrower.

       

      “REDLG Program Liens” means
Liens on any asset of the Borrower required to be pledged as collateral to
support obligations of the Borrower with respect to any government Guarantee
provided pursuant to regulations issued under the Rural Electrification Act of
1936, 7 U.S.C. 901 et. seq., and the Farm Security and Rural Investment Act of
2002, Pub. L. 107-171, 116 Stat. 413 (“REDLG Obligations”) so long as
such Guarantee supports long-term Indebtedness issued by the Borrower and
permitted by Section 5.09.

       

      “REDLG Obligations” has the
meaning set forth in the definition of REDLG Program Liens.

       

      “Regulation U” means Regulation
U of the Board of Governors of the Federal Reserve System, as in effect from
time to time.

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

      “Regulation X” means Regulation
X of the Board of Governors of the Federal Reserve System, as in effect from
time to time.

       

      “Reportable Event” means an
event described in Section 4043(c) of ERISA or regulations promulgated by the
Department of Labor thereunder (with respect to which the 30 day notice
requirement has not been waived by the PBGC).

       

      “Required Banks” means at any
time Banks having at least 51% of the sum of the aggregate amount of the unused
Commitments and the aggregate principal outstanding amount of the
Loans.

       

      “Revolving Credit Period” means
the period from and including the Effective Date to but excluding the Commitment
Termination Date.

       

      “Revolving Loan” means a loan
made by a Bank pursuant to Section 2.01(a).

       

      “RUS” means the Rural Utilities
Service of the Department of Agriculture of the United States of America (as
successor to the Rural Electrification Administration of the Department of
Agriculture of the United States of America) or any other regulatory body which
succeeds to its functions.

       

      “RUS Guaranteed Loan” means any
loan made by any Person, which loan (x) bears interest at least equal to such
Person’s cost of funds and (y) is guaranteed, in whole or in part, as to
principal and interest by the United States of America through the RUS pursuant
to a guarantee, which guarantee contains provisions no less favorable to the
holder thereof than the provisions set forth in the form of Exhibit B-1 or
Exhibit B-2 hereto; and “Guaranteed Portion” of any RUS
Guaranteed Loan means that portion of principal of, and interest on, such RUS
Guaranteed Loan which is guaranteed by the United States of America through the
RUS as provided in clause (y).

       

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

       

      “Securities and Exchange
Commission” means the Securities and Exchange Commission or any other
governmental authority succeeding to any or all of the functions of the
Securities and Exchange Commission.

       

      “SFAS 52” means Statement of
Financial Accounting Standards No. 52 entitled “Foreign Currency Translations”,
issued December, 1981 by the Financial Accounting Standards Board, as amended
from time to time.

       

      “SFAS 133” means Statement of
Financial Accounting Standards No. 133 entitled “Accounting for Derivative
Instruments and Hedging Activities”, issued June, 1998 by the Financial
Accounting Standards Board as amended from time to time.

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

       

      “Special Purpose Subsidiary”
has the meaning set forth in Section 5.12.

       

      “Start-up Investments” has the
meaning set forth in Section 5.12.

       

      “Subsidiary” of any Person
means (i) any corporation more than 50% of whose stock of any class or classes
having by the terms thereof ordinary voting power to elect a majority of the
directors of such corporation (irrespective of whether or not at the time stock
of any class or classes of such corporation shall have or might have voting
power by reason of the happening of any contingency) is at the time owned by
such Person directly or indirectly through its Subsidiaries, and (ii) any other
Person in which such Person directly or indirectly through Subsidiaries has more
than a 50% voting and equity interest; provided that no Person whose
only assets are RUS Guaranteed Loans and investments incidental thereto shall be
deemed a Subsidiary.

       

      “Superior Indebtedness” means
all Indebtedness of the Borrower and its Consolidated Subsidiaries (other than
Members’ Subordinated Certificates and Qualified Subordinated Indebtedness), but
excluding (i) Indebtedness of the Borrower or any of its Consolidated
Subsidiaries to the extent that the proceeds of such Indebtedness are used to
fund Guaranteed Portions of RUS Guaranteed Loans and (ii) any indebtedness of
any Member Guaranteed by the Borrower or any of its Consolidated Subsidiaries
(“Guaranteed
Indebtedness”), to the extent that either (x) the long-term unsecured
debt of such Member is rated at least BBB+ by S&P or Baa1 by Moody’s or (y)
the payment of principal and interest by the Borrower or any of its Consolidated
Subsidiaries in respect of such Guaranteed Indebtedness is covered by insurance
or reinsurance provided by an insurer having an insurance financial strength
rating of AAA by S&P or a financial strength rating of Aaa by
Moody’s.

       

      “Syndication Agent” means The
Royal Bank of Scotland plc, in its capacity as Syndication Agent hereunder, and
its successors in such capacity.

       

      “Term Loan” means a loan made
pursuant to Section 2.01(b).

       

      “TIER” means, for any period,
the ratio of (x) Net Income plus Interest Expense plus Derivative Cash
Settlements to (y) Interest Expense plus Derivative Cash
Settlements, in each case for such period.

       

      “Type” refers to whether a Loan
is a Base Rate Loan, a Euro-Dollar Loan, a Money Market Absolute Rate Loan or a
Money Market LIBOR Loan.

       

      “Utilization” means, at any
date, the percentage equivalent of a fraction (i) the numerator of which is the
aggregate outstanding principal amount of Loans at such date and (ii) the
denominator of which is the aggregate amount of the Commitments at such date;
provided that if any
Loans remain outstanding following the termination of the Commitments,
Utilization will be deemed to be 100% of the principal amount then
outstanding.

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

       

      Section
1.02 .  Accounting Terms and
Determinations.   Unless
otherwise specified herein, all accounting terms used herein shall be
interpreted, all accounting determinations hereunder shall be made and all
financial statements required to be delivered hereunder shall be prepared in
accordance with generally accepted accounting principles as in effect from time
to time, applied on a basis consistent (except for changes concurred in by the
Borrower’s independent public accountants) with the most recent audited
financial statements of the Borrower and its Consolidated Subsidiaries delivered
to the Banks.

       

      Section
1.03 .  Types of
Borrowings.  The term “Borrowing” denotes the
aggregation of Loans of one or more Banks to be made to the Borrower pursuant to
Article 2 on a single date and for a single Interest
Period.  Borrowings are classified for purposes of this Agreement
either by reference to the pricing of Loans comprising such Borrowing (e.g., a “Euro-Dollar Borrowing” is a
Borrowing comprised of Euro-Dollar Loans) or by reference to the provisions of
Article 2 under which participation therein is determined (i.e., a “Revolving  Borrowing”
is a Borrowing under Section 2.01(a) in which all Banks participate in
proportion to their Commitments, while a “Money Market Borrowing” is a
Borrowing under Section 2.03 in which the Bank participants are determined on
the basis of their bids in accordance therewith).

                                    

       

      ARTICLE 2

       

      The
Credits

       

      Section
2.01 .  Commitments to
Lend.  (a) Revolving
Loans.  During the Revolving Credit Period each Bank severally
agrees, on the terms and conditions set forth in this Agreement, to make loans
to the Borrower pursuant to this Section from time to time in amounts such that
the aggregate principal amount of Revolving Loans by such Bank at any one time
outstanding shall not exceed the amount of its Commitment.  Each
Borrowing shall be in an aggregate principal amount of  $10,000,000 or
any larger multiple of $1,000,000 (except that any such Borrowing may be in the
maximum aggregate amount available in accordance with Section 3.03(d)) and shall
be made from the several Banks ratably in proportion to their respective
Commitments.  Within the foregoing limits, the Borrower may borrow
under this Section, repay or, to the extent permitted by Section 2.12, prepay
Loans and reborrow at any time during the Revolving Credit Period under this
Section.

       

      (b) Term Loans.  Each
Bank severally agrees, on the terms and conditions set forth in this Agreement,
to make a Term Loan to the Borrower on the Commitment Termination Date in an
amount up to but not exceeding the amount of its Commitment.

       

      Section
2.02 .  Notice of Committed
Borrowings.  The Borrower
shall give the Administrative Agent notice (a “Notice of Committed
Borrowing”) not later than 11:00 A.M. (New York City time) on (x) the
date of such Borrowing, in the 

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          
case of
each Base Rate Borrowing, and (y) the third Euro-Dollar Business Day before such
Borrowing, in the case of each Euro-Dollar Borrowing,
specifying:

      

       

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

       

      (b) the
aggregate amount of such Borrowing,

       

      (c) whether
the Loans comprising such Borrowing are to bear interest initially at the Base
Rate or a Euro-Dollar Rate, and

       

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

       

      Notwithstanding
the foregoing, no more than 15 Fixed Rate Borrowings  shall be
outstanding at any one time, and any Borrowing which would exceed such
limitation shall be made as a Base Rate Borrowing.

       

      Section
2.03 .  Money Market
Borrowings.  (a)
In addition to Committed Borrowings pursuant to Section 2.01, the
Borrower may, as set forth in this Section, request the Banks during the
Revolving Credit Period to make offers to make Money Market Loans to the
Borrower.  The Banks may, but shall have no obligation to, make such
offers and the Borrower may, but shall have no obligation to, accept any such
offers in the manner set forth in this Section.

       

      (b) Money Market Quote
Request.  When the Borrower wishes to request offers to make
Money Market Loans under this Section, it shall transmit to the Administrative
Agent by telex or facsimile transmission a Money Market Quote Request
substantially in the form of Exhibit C hereto so as to be received no later than
10:00 A.M. (New York City time) on (x) the fourth Euro-Dollar Business Day prior
to the date of Borrowing proposed therein, in the case of a LIBOR Auction or
(y) the Domestic Business Day next preceding the date of Borrowing proposed
therein, in the case of an Absolute Rate Auction (or, in either case, such other
time or date as the Borrower and the Administrative Agent shall have mutually
agreed and shall have notified to the Banks not later than the date of the Money
Market Quote Request for the first LIBOR Auction or Absolute Rate Auction for
which such change is to be effective) specifying:

       

      (i) the
proposed date of Borrowing, which shall be a Euro-Dollar Business Day in the
case of a LIBOR Auction or a Domestic Business Day in the case of an Absolute
Rate Auction,

       

      (ii) the
aggregate amount of such Borrowing, which shall be $10,000,000 or any larger
multiple of $1,000,000,

       

      (iii) the
duration of the Interest Period applicable thereto, subject to the provisions of
the definition of Interest Period, and

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

       

      (iv) whether
the Money Market Quotes requested are to set forth a Money Market Margin or a
Money Market Absolute Rate.

       

      The
Borrower may request offers to make Money Market Loans for more than one
Interest Period in a single Money Market Quote Request.  No Money
Market Quote Request shall be given within four Euro-Dollar Business Days (or
such other number of days as the Borrower and the Administrative Agent may
agree) of any other Money Market Quote Request.

       

      (c) Invitation for Money Market
Quotes.  Promptly upon receipt of a Money Market Quote Request,
the Administrative Agent shall send to the Banks by telex or facsimile
transmission an Invitation for Money Market Quotes substantially in the form of
Exhibit D hereto, which shall constitute an invitation by the Borrower to each
Bank to submit Money Market Quotes offering to make the Money Market Loans to
which such Money Market Quote Request relates in accordance with this
Section.

       

      (d) Submission and Contents of Money
Market Quotes.  (i) Each Bank may submit a Money Market Quote
containing an offer or offers to make Money Market Loans in response to any
Invitation for Money Market Quotes.  Each Money Market Quote must
comply with the requirements of this subsection (d) and must be submitted to the
Administrative Agent by telex or facsimile transmission at its offices specified
in or pursuant to Section 9.01 not later than (x) 9:30 A.M. (New York City time)
on the third Euro-Dollar Business Day prior to the proposed date of Borrowing,
in the case of a LIBOR Auction or (y) 9:30 A.M. (New York City time) on the
proposed date of Borrowing, in the case of an Absolute Rate Auction (or, in
either case, such other time or date as the Borrower and the Administrative
Agent shall have mutually agreed and shall have notified to the Banks not later
than the date of the Money Market Quote Request for the first LIBOR Auction or
Absolute Rate Auction for which such change is to be effective); provided that Money Market
Quotes submitted by the Administrative Agent (or any affiliate of the
Administrative Agent) in the capacity of a Bank may be submitted, and may only
be submitted, if the Administrative Agent or such affiliate notifies the
Borrower of the terms of the offer or offers contained therein not later than
(x) 8:30 A.M. (New York City time) on the third Euro-Dollar Business Day prior
to the proposed date of Borrowing, in the case of a LIBOR Auction or (y) 9:15
A.M. (New York City time) on the proposed date of Borrowing, in the case of an
Absolute Rate Auction.  Subject to Articles 3 and 6, any Money Market
Quote so made shall be irrevocable except with the written consent of the
Administrative Agent given on the instructions of the Borrower.

       

      (ii) Each
Money Market Quote shall be in substantially the form of Exhibit E hereto and
shall in any case specify:

       

      (A) the
proposed date of Borrowing,

       

      (B) the
principal amount of the Money Market Loan for which each such offer is being
made, which principal amount 

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

      (w) may
be greater than or less than the Commitment of the quoting Bank, (x) must be
$1,000,000 or any larger multiple thereof, (y) may not exceed the principal
amount of Money Market Loans for which offers were requested and (z) may be
subject to an aggregate limitation as to principal amount of Money Market Loans
for which offers being made by such quoting Bank may be accepted,

       

      (C) in the
case of a LIBOR Auction, the margin above or below the applicable London
Interbank Offered Rate (the “Money Market Margin”) offered
for each such Money Market Loan, expressed as a percentage (rounded to the
nearest 1/10,000th of 1%) to be added to or subtracted from such base
rate,

       

      (D) in the
case of an Absolute Rate Auction, the rate of interest per annum (rounded to the
nearest 1/10,000th of 1%)
(the “Money Market Absolute
Rate”) offered for each such Money Market Loan, and

       

      (E) the
identity of the quoting Bank.

       

      A Money
Market Quote may set forth up to five separate offers by the quoting Bank with
respect to each Interest Period specified in the related Invitation for Money
Market Quotes.

       

      (iii) Any Money
Market Quote shall be disregarded if it:

       

      (A) is not
substantially in conformity with Exhibit E hereto or does not specify all of the
information required by subsection (d)(ii),

       

      (B) contains
qualifying, conditional or similar language,

       

      (C) proposes
terms other than or in addition to those set forth in the applicable Invitation
for Money Market Quotes, or

       

      (D) arrives
after the time set forth in subsection (d)(i).

       

      (e) Notice to
Borrower.  The Administrative Agent shall promptly notify the
Borrower of the terms (x) of any Money Market Quote submitted by a Bank that is
in accordance with subsection (d) and (y) of any Money Market Quote that amends,
modifies or is otherwise inconsistent with a previous Money Market Quote
submitted by such Bank with respect to the same Money Market Quote
Request.  Any such subsequent Money Market Quote shall be disregarded
by the Administrative Agent unless such subsequent Money Market Quote is
submitted solely to correct a manifest error in such former Money Market
Quote.  The Administrative Agent’s notice to the Borrower shall
specify (A) the 

       

      
        
          
          

        

        
          17

          
            

          

        

        
          
          
aggregate
principal amount of Money Market Loans for which offers have been received for
each Interest Period specified in the related Money Market Quote Request, (B)
the respective principal amounts and Money Market Margins or Money Market
Absolute Rates, as the case may be, so offered and (C) if applicable,
limitations on the aggregate principal amount of Money Market Loans for which
offers in any single Money Market Quote may be accepted.

      

       

      (f) Acceptance and Notice by
Borrower.  Not later than 10:30 A.M. (New York City time) on
(x) the third Euro-Dollar Business Day prior to the proposed date of Borrowing,
in the case of a LIBOR Auction or (y) the proposed date of Borrowing, in the
case of an Absolute Rate Auction (or, in either case, such other time or date as
the Borrower and the Administrative Agent shall have mutually agreed and shall
have notified to the Banks not later than the date of the Money Market Quote
Request for the first LIBOR Auction or Absolute Rate Auction for which such
change is to be effective), the Borrower shall notify the Administrative Agent
of its acceptance or non-acceptance of the offers so notified to it pursuant to
subsection (e).  In the case of acceptance, such notice (a “Notice of Money Market
Borrowing”) shall specify the aggregate principal amount of offers for
each Interest Period that are accepted.  The Borrower may accept any
Money Market Quote in whole or in part; provided that:

       

      (i) the
aggregate principal amount of each Money Market Borrowing may not exceed the
applicable amount set forth in the related Money Market Quote
Request,

       

      (ii) the
aggregate principal amount of each Money Market Borrowing must be $10,000,000 or
any larger multiple of $1,000,000,

       

      (iii) acceptance
of offers may only be made on the basis of ascending Money Market Margins or
Money Market Absolute Rates, as the case may be, and

       

      (iv) the
Borrower may not accept any offer that is described in subsection (d)(iii) or
that otherwise fails to comply with the requirements of this
Agreement.

       

      (g) Allocation by
Agent.  If offers are made by two or more Banks with the same
Money Market Margins or Money Market Absolute Rates, as the case may be, for a
greater aggregate principal amount than the amount in respect of which such
offers are accepted for the related Interest Period, the principal amount of
Money Market Loans in respect of which such offers are accepted shall be
allocated by the Administrative Agent among such Banks as nearly as possible (in
such multiples, not greater than $100,000, as the Administrative Agent may deem
appropriate) in proportion to the aggregate principal amounts of such
offers.  Determinations by the Administrative Agent of the amounts of
Money Market Loans shall be conclusive in the absence of manifest
error.

       

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

      Section
2.04 . Notice to Banks; Funding of
Loans.  (a) Upon receipt of a Notice of Borrowing, the
Administrative Agent shall promptly notify each Bank of the contents thereof and
of such Bank’s share (if any) of such Borrowing and such Notice of Borrowing
shall not thereafter be revocable by the Borrower.

       

      (b) Not later
than 1:00 P.M. (New York City time) on the date of each Borrowing, each Bank
participating therein shall (except as provided in subsection (c) of this
Section) make available its share of such Borrowing, in Federal or other funds
immediately available in New York City, to the Administrative Agent at its
address specified in or pursuant to Section 9.01.  Unless the
Administrative Agent determines that any applicable condition specified in
Article 3 has not been satisfied, the Administrative Agent will make the funds
so received from the Banks available to the Borrower at the Administrative
Agent’s aforesaid address.

       

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

       

      (d) Unless
the Administrative Agent shall have been notified by any Bank prior to the date
of Borrowing (or prior to 1:00 P.M. (New York City time) on the date of
Borrowing in the case of a Base Rate Borrowing) that such Bank does not intend
to make available to the Administrative Agent such Bank’s portion of the
Borrowing to be made on such date, the Administrative Agent may assume that such
Bank has made such amount available to the Administrative Agent on such date and
the Administrative Agent may, in reliance upon such assumption, make available
to the Borrower a corresponding amount, subject to the provisions of subsection
(c).  If such corresponding amount is not in fact made available to
the Administrative Agent by such Bank, the Administrative Agent shall be
entitled to recover such corresponding amount on demand from such
Bank.  If such Bank does not pay such corresponding amount forthwith
upon the Administrative Agent’s demand therefor, the Administrative Agent shall
promptly notify the Borrower and the Borrower shall promptly pay such
corresponding amount to the Administrative Agent.  The Administrative
Agent shall also be entitled to recover from such Bank or the Borrower interest
on such corresponding amount in respect of each day from the date such
corresponding amount was made available by the Administrative Agent to the
Borrower to the date such corresponding amount is recovered by the
Administrative Agent, at a rate per annum equal to (x) in the case of a Bank,
the Federal Funds Rate for each such day and (y) in the case of the Borrower,
the then applicable rate for Base Rate Loans, Euro-Dollar Loans or Money Market
Loans, as appropriate.  Nothing herein shall be deemed to relieve any
Bank from its obligation to fulfill its Commitment hereunder or to prejudice any
rights which the Borrower may have against any Bank as a result of any default
by such Bank hereunder.  For purposes 

       

      
        
          
          

        

        
          19

          
            

          

        

        
          
          
of this
subsection (d), no amount paid to the Administrative Agent hereunder shall be
considered to have been recovered by the Administrative Agent on the date of
payment unless such amount shall have been received by the Administrative Agent
by 2:30 P.M. (New York City time) on such date.

      

       

      Section
2.05 .  Notes.  (a) Any Bank may
request that the Loans of such Bank be evidenced by a single Note payable to the
order of such Bank for the account of its Applicable Lending Office in an amount
equal to the aggregate unpaid principal amount of such Bank’s
Loans.

       

      (b) Each Bank
that has requested that its Loans be evidenced by a Note may, by notice to the
Borrower and the Administrative Agent, request that its Loans of a particular
Type be evidenced by a separate Note in an amount equal to the aggregate unpaid
principal amount of such Loans.  Each such Note shall be in
substantially the form of Exhibit A hereto with appropriate modifications to
reflect the fact that it evidences solely Loans of the relevant
Type.  Each reference in this Agreement to the “Note” of such Bank shall be
deemed to refer to and include any or all of such Notes, as the context may
require.

       

      (c) Upon
receipt of each Bank’s Note pursuant to Section 3.01(b), the Administrative
Agent shall forward such Note to such Bank.  Each Bank shall record
the date, amount, type and maturity of each Loan made by it and the date and
amount of each payment of principal made by the Borrower with respect thereto,
and may, if such Bank so elects in connection with any transfer or enforcement
of its Note, endorse on the schedule forming a part thereof appropriate
notations to evidence the foregoing information with respect to each such Loan
then outstanding; provided that the failure of
any Bank to make any such recordation or endorsement shall not affect the
obligations of the Borrower hereunder or under the Notes.  Each Bank
is hereby irrevocably authorized by the Borrower so to endorse its Note and to
attach to and make a part of its Note a continuation of any such schedule as and
when required.

       

      Section
2.06 .  Maturity of
Loans.  Each Loan hereunder shall mature, and the principal
amount thereof shall be due and payable on the Maturity Date with respect to
such Loan.

       

      Section
2.07 .  Interest
Rates.  (a) Each Base Rate Loan shall
bear interest on the outstanding principal amount thereof, for each day from the
date such Loan is made until it becomes due, at a rate per annum equal to the
Base Rate for such day.  Such interest shall be payable for each
Interest Period on the last day thereof and, with respect to the principal
amount of any Base Rate Loan that is prepaid or converted to a Euro-Dollar Loan,
on the date of such prepayment or conversion.  Any overdue principal
of or interest on any Base Rate Loan shall bear interest, payable on demand, for
each day until paid at a rate per annum equal to the sum of 2% plus the rate
otherwise applicable to Base Rate Loans for such day.

       

      (b) Each
Euro-Dollar Loan shall bear interest on the outstanding principal amount
thereof, for the Interest Period applicable thereto, at a rate per 

       

      
        
          
          

        

        
          20

          
            

          

        

        
          
          
annum
equal to the sum of the Euro-Dollar Margin plus the applicable Adjusted London
Interbank Offered Rate.  Such interest shall be payable for each
Interest Period on the last day thereof and, if such Interest Period is longer
than three months, three months after the first day thereof and, with respect to
the principal amount of any Euro-Dollar Loan that is prepaid or converted to a
Base Rate Loan, on the date of such prepayment or conversion.

      

       

      The
“Adjusted London Interbank
Offered Rate” applicable to any Interest Period means a rate per annum
equal to the quotient obtained (rounded upward, if necessary, to the next higher
1/100 of 1%) by dividing (i) the applicable London Interbank Offered Rate by
(ii) 1.00 minus the Euro-Dollar Reserve Percentage.

       

      The
“London Interbank Offered
Rate” applicable to any Interest Period means the average (rounded
upward, if necessary, to the next higher 1/16 of 1%) of the respective rates per
annum at which deposits in dollars are offered to each of the Euro-Dollar
Reference Banks in the London interbank market at approximately 11:00 A.M.
(London time) two Euro-Dollar Business Days before the first day of such
Interest Period in an amount approximately equal to the principal amount of the
Euro-Dollar Loan of such Euro-Dollar Reference Bank to which such Interest
Period is to apply and for a period of time comparable to such Interest
Period.

       

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

       

      (c) Any
overdue principal of or interest on any Euro-Dollar Loan shall bear interest,
payable on demand, for each day from and including the date payment thereof was
due to but excluding the date of actual payment, at a rate per annum equal to
the sum of 2% plus the higher of (i) the sum of the Euro-Dollar Margin plus the
Adjusted London Interbank Offered Rate applicable to such Loan and (ii) the
Euro-Dollar Margin plus the quotient obtained (rounded upwards, if necessary, to
the next higher 1/100 of 1%) by dividing (x) the average (rounded upward, if
necessary, to the next higher 1/16 of 1%) of the respective rates per annum at
which one day (or, if such amount due remains unpaid more than three Euro-Dollar
Business Days, then for such other period of time not longer than six months as
the Administrative Agent may select) deposits in dollars in an amount
approximately equal to such overdue payment due to each of the Euro-Dollar

       

      
        
          
          

        

        
          21

          
            

          

        

        
          
          
Reference
Banks are offered to such Euro-Dollar Reference Bank in the London interbank
market for the applicable period determined as provided above by (y) 1.00 minus
the Euro-Dollar Reserve Percentage (or, if the circumstances described in clause
(a) or (b) of Section 8.01 shall exist, at a rate per annum equal to the sum of
2% plus the rate applicable to Base Rate Loans for such day).

      

       

      (d) Subject
to Section 8.01(a), each Money Market LIBOR Loan shall bear interest on the
outstanding principal amount thereof, for the Interest Period applicable
thereto, at a rate per annum equal to the sum of the London Interbank Offered
Rate for such Interest Period (determined in accordance with Section 2.07(b) as
if each Euro-Dollar Reference Bank were to participate in the related Money
Market LIBOR Borrowing ratably in proportion to its Commitment) plus (or minus)
the Money Market Margin quoted by the Bank making such Loan in accordance with
Section 2.03.  Each Money Market Absolute Rate Loan shall bear
interest on the outstanding principal amount thereof, for the Interest Period
applicable thereto, at a rate per annum equal to the Money Market Absolute Rate
quoted by the Bank making such Loan in accordance with Section
2.03.  Such interest shall be payable for each Interest Period on the
last day thereof and, if such Interest Period is longer than three months, at
intervals of three months after the first day thereof.  Any overdue
principal of or interest on any Money Market Loan shall bear interest, payable
on demand, for each day until paid at a rate per annum equal to the sum of 2%
plus the Prime Rate for such day.

       

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

       

      (f) Each
Euro-Dollar Reference Bank agrees to use its best efforts to furnish quotations
to the Administrative Agent as contemplated by this Section.  If
either Euro-Dollar Reference Bank does not furnish a timely quotation, the
Administrative Agent shall determine the relevant interest rate on the basis of
the quotation or quotations furnished by the remaining Euro-Dollar Reference
Bank or, if none of such quotations is available on a timely basis, the
provisions of Section 8.01 shall apply.

       

      Section
2.08 .  Method of Electing Interest
Rates.  (a) The Loans included in each
Committed Borrowing shall bear interest initially at the type of rate specified
by the Borrower in the applicable Notice of Committed
Borrowing.  Thereafter, the Borrower may from time to time elect to
change or continue the type of interest rate borne by each Group of Loans
(subject to Section 2.08(d) and the provisions of Article 8), as
follows:

       

      (i) if such
Loans are Base Rate Loans, the Borrower may elect to convert such Loans to
Euro-Dollar Loans as of any Euro-Dollar Business Day;

       

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

       

      (ii) if such
Loans are Euro-Dollar Loans, the Borrower may elect to convert such Loans to
Base Rate Loans as of any Domestic Business Day, subject to Section 2.14 if any
such conversion is effective on any day other than the last day of an Interest
Period applicable to such Loans, or may elect to continue such Loans as
Euro-Dollar Loans, as of the end of any Interest Period applicable thereto, for
an additional Interest Period.

       

      Each such
election shall be made by delivering a notice (a “Notice of Interest Rate
Election”) to the Administrative Agent not later than 10:30 A.M. (New
York City time) on the third Euro-Dollar Business Day before the conversion or
continuation selected in such notice is to be effective.  A Notice of
Interest Rate Election may, if it so specifies, apply to only a portion of the
aggregate principal amount of the relevant Group of Loans; provided that (i) such
portion is allocated ratably among the Loans comprising such Group and (ii) such
portion, and the remaining portion to which such Notice does not apply, are each
at least $10,000,000 (unless such portion is comprised of Base Rate
Loans).  If no such notice is timely received before the end of an
Interest Period for any Group of Euro-Dollar Loans, the Borrower shall be deemed
to have elected that such Group of Loans be converted to Base Rate Loans at the
end of such Interest Period.

       

      (b) Each
Notice of Interest Rate Election shall specify:

       

      (i) the Group
of Loans (or portion thereof) to which such notice applies;

       

      (ii) the date
on which the conversion or continuation selected in such notice is to be
effective, which shall comply with the applicable clause of Section
2.08(a);

       

      (iii) if the
Loans comprising such Group are to be converted to Euro-Dollar Loans, the
duration of the next succeeding Interest Period applicable thereto;
and

       

      (iv) if such
Loans are to be continued as Euro-Dollar Loans for an additional Interest
Period, the duration of such additional Interest Period.

       

      Each
Interest Period specified in a Notice of Interest Rate Election shall comply
with the provisions of the definition of Interest Period.

       

      (c) Promptly
after receiving a Notice of Interest Rate Election from the Borrower pursuant to
Section 2.08(a), the Administrative Agent shall notify each Bank of the contents
thereof and such notice shall not thereafter be revocable by the
Borrower.

       

      (d) The
Borrower shall not be entitled to elect to convert any Committed Loans to, or
continue any Committed Loans for an additional Interest 

       

      
        
          
          

        

        
          23

          
            

          

        

        
          
          
Period
as, Euro-Dollar Loans if (i) the aggregate principal amount of any Group of
Euro-Dollar Loans created or continued as a result of such election would be
less than $10,000,000 or (ii) a Default shall have occurred and be continuing
when the Borrower delivers notice of such election to the Administrative
Agent.

      

       

      (e) If any
Committed Loan is converted to a different Type of Loan, the Borrower shall pay,
on the date of such conversion, the interest accrued to such date on the
principal amount being converted.

       

      Section
2.09 .  Fees.  (a) Facility Fee.  The
Borrower shall pay to the Administrative Agent for the account of each Bank
facility fees accruing at the Facility Fee Rate on the daily average amount of
such Bank’s Commitment (whether used or unused), for the period from and
including the Effective Date to but excluding the date such Bank’s Commitment is
terminated; provided
that, if such Bank continues to have any Committed Loans outstanding after its
Commitment terminates, then such facility fee shall continue to accrue on the
daily outstanding principal amount of such Bank’s Committed Loans from and
including the date on which its Commitment terminates to but excluding the date
on which such Bank ceases to have any Committed Loans
outstanding.  Accrued facility fees shall be payable on each January
1, April 1, July 1, and October 1 and on the date the Commitment of such Bank is
terminated (and, if later, on the date the Loans of such Bank shall be repaid in
their entirety);
provided that any facility fees accruing after the first anniversary of
the Commitment Termination Date shall be payable on demand.

       

      (b) Utilization
Fee.  During any period when Utilization exceeds 50%, the
Borrower shall pay to the Administrative Agent for the account of each Bank
utilization fees at a rate of 0.050% per annum accruing on the average daily
aggregate outstanding principal amount of the Loans of such Bank. Such
utilization fees for each Loan shall be payable on each date on which interest
is payable with respect to such Loan pursuant to Section 2.07, and on the date
the Commitment of such Bank is terminated (and, if later, on the date the Loans
of such Bank shall be repaid in their entirety); provided that any utilization
fees accruing after the first anniversary of the Commitment Termination Date
shall be payable on demand.

       

      (c) Term-Out Fee.  The
Borrower shall pay to the Administrative Agent for the account of each Bank
ratably term-out fees at a rate of 0.100% per annum accruing on the daily
aggregate outstanding principal amount of the Term Loan of such Bank, for the
period from and including the Commitment Termination Date to but excluding the
date the Term Loan of such Bank is repaid in full. Such term-out fees for each
Loan shall be payable on each date on which interest is payable with respect to
such Loan pursuant to Section 2.07 occurring after the Commitment Termination
Date, and on the date the Term Loan of such Bank shall be repaid in its
entirety; provided that
any term-out fees accruing after the first anniversary of the Commitment
Termination Date shall be payable on demand.

       

      
        
          
          

        

        
          24

          
            

          

        

        
          
          

        

      

      (d) Agents’ Fees.  The
Borrower shall pay to the Administrative Agent and the Syndication Agent, each
for its own account, one or more fees in such amounts and at such times as has
been previously agreed between the Borrower and each of them.

       

      Section
2.10 .  Optional Termination or Reduction of
Commitments.  During the Revolving Credit Period, the Borrower
may, upon at least three Domestic Business Days’ notice to the Administrative
Agent (which notice the Administrative Agent will promptly deliver to the
Banks), (i) terminate the Commitments at any time, if no Loans are
outstanding at such time or (ii) ratably reduce from time to time by an
aggregate amount of $10,000,000 or any larger multiple of $1,000,000, the
aggregate amount of the Commitments in excess of the aggregate outstanding
principal amount of the Loans.

       

      Section
2.11 .  Mandatory Termination of
Commitments.  The Commitments shall terminate on the Commitment
Termination Date.

       

      Section
2.12 .  Optional
Prepayments.  (a) Subject in the case
of Euro-Dollar Loans to Section 2.14, the Borrower may (i) upon at least
one Domestic Business Day’s notice to the Administrative Agent, prepay any Group
of Base Rate Loans (or any Money Market Borrowing bearing interest at the Base
Rate pursuant to Section 8.01(a)) or (ii) upon at least three Euro-Dollar
Business Days’ notice to the Administrative Agent, prepay any Group of
Euro-Dollar Loans, in each case in whole at any time, or from time to time in
part in amounts aggregating $10,000,000 or any larger multiple of $1,000,000, by
paying the principal amount to be prepaid together with accrued interest thereon
to the date of prepayment.  Each such optional prepayment shall be
applied to prepay ratably the Loans of the several Banks included in such Group
of Loans (or such Money Market Borrowing).

       

      (b) Except as
provided in Section 2.12(a), the Borrower may not prepay all or any portion of
the principal amount of any Money Market Loan prior to the maturity
thereof.

       

      (c) Upon
receipt of a notice of prepayment pursuant to this Section, the Administrative
Agent shall promptly notify each Bank of the contents thereof and of such Bank’s
ratable share (if any) of such prepayment and such notice shall not thereafter
be revocable by the Borrower.

       

      Section
2.13 .  General Provisions as to
Payments.  (a) The Borrower shall make each payment of
principal of, and interest on, the Loans and of fees hereunder, not later than
1:00 P.M. (New York City time) on the date when due, in Federal or other funds
immediately available in New York City, to the Administrative Agent at its
address referred to in Section 9.01.  The Administrative Agent will
promptly distribute to each Bank its ratable share of each such payment received
by the Administrative Agent for the account of the Banks.  Whenever
any payment of principal of, or interest on, the Base Rate Loans or of fees
shall be due on a day which is not a Domestic Business Day, the 

       

      
        
          
          

        

        
          25

          
            

          

        

        
          
          
date for
payment thereof shall be extended to the next succeeding Domestic Business
Day.  Whenever any payment of principal of, or interest on, the
Euro-Dollar Loans shall be due on a day which is not a Euro-Dollar Business Day,
the date for payment thereof shall be extended to the next succeeding
Euro-Dollar Business Day unless such Euro-Dollar Business Day falls in another
calendar month, in which case the date for payment thereof shall be the next
preceding Euro-Dollar Business Day.  Whenever any payment of principal
of, or interest on, the Money Market Loans shall be due on a day which is not a
Euro-Dollar Business Day, the date for payment thereof shall be extended to the
next succeeding Euro-Dollar Business Day.  If the date for any payment
of principal is extended by operation of law or otherwise, interest thereon
shall be payable for such extended time.

      

       

      (b) Unless
the Administrative Agent shall have received notice from the Borrower prior to
the date on which any payment is due to the Banks hereunder that the Borrower
will not make such payment in full, the Administrative Agent may assume that the
Borrower has made such payment in full to the Administrative Agent on such date
and the Administrative Agent may, in reliance upon such assumption, cause to be
distributed to each Bank on such due date an amount equal to the amount then due
such Bank.  If and to the extent that the Borrower shall not have so
made such payment, each Bank shall repay to the Administrative Agent forthwith
on demand such amount distributed to such Bank together with interest thereon,
for each day from the date such amount is distributed to such Bank until the
date such Bank repays such amount to the Administrative Agent, at the Federal
Funds Rate.

       

      Section
2.14 .  Funding
Losses.  If the Borrower
makes any payment of principal with respect to any Fixed Rate Loan or any Fixed
Rate Loan is converted to a different type of Loan (whether such payment or
conversion is pursuant to Article 2, 6 or 8 or otherwise) on any day other than
the last day of the Interest Period applicable thereto, or the end of an
applicable period fixed pursuant to Section 2.07(c), or if the Borrower fails to
borrow, prepay, convert or continue any Fixed Rate Loans after notice has been
given to any Bank in accordance with Section 2.04(a), 2.08(c) or 2.12(c) the
Borrower shall reimburse each Bank within 15 days after demand for any resulting
loss or expense incurred by it (or by an existing or prospective Participant in
the related Loan), including (without limitation) any loss incurred in
obtaining, liquidating or employing deposits from third parties, but excluding
loss of margin for the period after any such payment or conversion or failure to
borrow, prepay, convert or continue; provided that such Bank shall
have delivered to the Borrower a certificate as to the amount of such loss or
expense, which certificate shall be conclusive in the absence of manifest
error.

       

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

       

      
        
          
          

        

        
          26

          
            

          

        

        
          
          
computed
on the basis of a year of 360 days and paid for the actual number of days
elapsed (including the first day but excluding the last day).

      

       

      Section
2.16 .  Withholding Tax
Exemption.  At least five Domestic Business Days prior to the
first date on which interest or fees are payable hereunder for the account of
any Bank, each Bank that is not incorporated under the laws of the United States
of America or a state thereof agrees that it will deliver to each of the
Borrower and the Administrative Agent two duly completed copies of (i) United
States Internal Revenue Service Form W-8BEN (or any successor form), certifying
that such Bank is entitled to benefits under an income tax treaty to which the
United States is a party which exempts such Bank from United States withholding
tax or reduces the rate of withholding tax on payments received for the account
of such Bank under this Agreement and the Notes, or (ii) United States Internal
Revenue Service Form W-8ECI (or any successor form), certifying that the income
receivable by such Bank under this Agreement and the Notes is effectively
connected with the conduct of a trade or business in the United
States.  Each Bank which so delivers a Form W-8BEN or W-8ECI further
undertakes to deliver to each of the Borrower and the Administrative Agent two
additional copies of such form (or a successor form) on or before the date that
such form expires or becomes obsolete or after the occurrence of any event
requiring a change in the most recent form so delivered by it, and such
amendments thereto or extensions or renewals thereof as may be reasonably
requested by the Borrower or the Administrative Agent, in each case certifying
to the effect set forth in clause (i) or (ii) above, as applicable, unless an
event (including without limitation any change in treaty, law or regulation) has
occurred prior to the date on which any such delivery would otherwise be
required which renders all such forms inapplicable or which would prevent such
Bank from duly completing and delivering any such form with respect to it and
such Bank advises the Borrower and the Administrative Agent that it is not
capable of making the certifications set forth in clause (i) or (ii) above, as
applicable.

       

      Section
2.17 .  Increase of
Commitments.  (a) Upon at least 15 days’
prior notice to the Administrative Agent (which notice the Administrative Agent
shall promptly transmit to each of the Banks), the Borrower shall have the
right, subject to the terms and conditions set forth below, to increase the
aggregate amount of the Commitments in multiples of $5,000,000; provided that the amount of
such increase when added to the aggregate amount of all such prior increases in
the Commitments hereunder (including by way of creating new Commitments), on or
after the Effective Date, does not exceed $250,000,000.

       

      (b) Any such
increase in the Commitments hereunder shall apply, at the option of the
Borrower, (x) to the Commitment of one or more Banks; provided that (i) the
Administrative Agent and each Bank whose Commitment is to be increased shall
consent to such increase, (ii) the amount set forth on the Commitment Schedule
opposite the name of each Bank the Commitment of which is being so increased
shall be amended to reflect the increased Commitment of such Bank and (iii) if
any Committed Loans are outstanding at the time of such an increase, the
Borrower will, notwithstanding anything to the contrary contained in this
Agreement, on the date of such increase, incur and repay or prepay one or more
Committed Loans from the Banks in such amounts so that after giving effect
thereto the Committed Loans shall be outstanding on a pro rata basis (based on the
Commitments of the Banks after giving effect to the changes made pursuant to
this Section 2.17 on such date) from all the Banks or (y) to the creation of a
new Commitment of one or more institutions not then a Bank hereunder; provided that (i) such
institution becomes a party to this Agreement as a Bank by execution and
delivery to the Borrower and the Administrative Agent of counterparts of this
Agreement, (ii) the Commitment Schedule shall be amended to reflect the
Commitment of such new Bank, (iii) if requested by such new Bank, the Borrower
shall issue a Note to such new Bank in conformity with the provisions of Section
2.05, (iv) if any Committed Loans are outstanding at the time of the creation of
such Commitment of such Bank, the Borrower will, notwithstanding anything to the

       

      
        
          
          

        

        
          27

          
            

          

        

        
          
          
contrary
contained in this Agreement, on the date of the creation of such Commitment,
incur and repay or prepay one or more Committed Loans from the Banks in such
amounts so that after giving effect thereto the Committed Loans shall be
outstanding on a pro
rata basis (based on the Commitments of the Banks after giving effect to
the changes made pursuant to this Section 2.17 on such date) from all the Banks
and (v) if such institution is neither a banking institution nor an affiliate of
a Bank, such institution must be consented to by the Administrative
Agent.

      

       

      (c) It is
understood that any increase in the amount of the Commitments pursuant to this
Section 2.17 shall not constitute an amendment of this Agreement or the
Notes.

                                   

       

       ARTICLE 3

       

      Conditions

       

      Section
3.01 .  Effectiveness.  This
Agreement shall become effective on the date (the “Effective Date”) on which the
Administrative Agent shall have received the following documents or other items,
each dated the Effective Date unless otherwise indicated:

       

      (a) receipt
by the Administrative Agent of counterparts hereof signed by each of the parties
hereto (or, in the case of any party as to which an executed counterpart shall
not have been received, receipt by the Administrative Agent in form satisfactory
to it of telegraphic, telex or other written confirmation from such party of
execution of a counterpart hereof by such party);

       

      (b) receipt
by the Administrative Agent for the account of each Bank that has requested a
Note of a duly executed Note dated on or before the Effective Date complying
with the provisions of Section 2.05;

       

      (c) receipt
by the Administrative Agent of an opinion of the General Counsel of the
Borrower, substantially in the form of Exhibit F hereto and covering such
additional matters relating to the transactions contemplated hereby

       

      
        
          
          

        

        
          28

          
            

          

        

        
          
          
as the
Required Banks may reasonably request, such opinion to be in form and substance
satisfactory to the Administrative Agent;

      

       

      (d) receipt
by the Administrative Agent of an opinion of Davis Polk & Wardwell, special
counsel for the Administrative Agent, substantially in the form of Exhibit G
hereto and covering such additional matters relating to the transactions
contemplated hereby as the Required Banks may reasonably request, such opinion
to be in form and substance satisfactory to the Administrative
Agent;

       

      (e) receipt
by the Administrative Agent of a certificate signed by the Chief Financial
Officer or the Chief Executive Officer and an Assistant Secretary-Treasurer or
the Controller of the Borrower to the effect that the conditions set forth in
clauses (c) through (g), inclusive, of Section 3.03 have been satisfied as of
the Effective Date and, in the case of clauses (c), (e) and (g), setting forth
in reasonable detail the calculations required to establish such
compliance;

       

      (f) receipt
by the Administrative Agent, with a copy for each Bank, of a certificate of an
officer of the Borrower acceptable to the Administrative Agent stating that all
consents, authorizations, notices and filings required or advisable in
connection with this Agreement are in full force and effect, and the
Administrative Agent shall have received evidence thereof reasonably
satisfactory to it;

       

      (g) evidence
satisfactory to the Administrative Agent that arrangements have been made for
payment in full of all amounts owed under the Prior 364-Day Credit
Agreement;

       

      (h) receipt
by the Administrative Agent and the Syndication Agent (or their respective
assigns) and by each Bank of all fees required to be paid in the respective
amounts heretofore mutually agreed, and all expenses for which invoices have
been presented, on or before the Effective Date; and

       

      (i) receipt
by the Administrative Agent of all documents the Required Banks may reasonably
request relating to the existence of the Borrower, the corporate authority for
and the validity of this Agreement and the Notes, and any other matters relevant
hereto, all in form and substance satisfactory to the Administrative
Agent.

       

      The
Administrative Agent shall promptly notify the Borrower and the  Banks
of the Effective Date, and such notice shall be conclusive and binding on all
parties hereto.

       

      Section
3.02 .  Prior Credit
Agreement.  (a)
On the Effective Date, the “Commitments” as defined in the Prior 364-Day Credit
Agreement shall terminate, without further action by any party thereto, except that Sections 2.14,
7.05, 7.06, 8.03 and 9.03 of the Prior 364-Day Credit Agreement (and Section
2.13 and Article 9 of the Prior 364-Day Credit Agreement insofar as they relate
to such foregoing Sections) shall survive such termination and any related
payment of amounts owed under the Prior 364-Day Credit Agreement.

       

      
        
          
          

        

        
          29

          
            

          

        

        
          
          

        

      

       

      (b) The Banks
which are parties to the Prior 364-Day Credit Agreement, comprising the
“Required Banks” as defined therein, hereby waive any requirement of notice of
termination of the “Commitments” (as defined in the Prior 364-Day Credit
Agreement) pursuant to Section 2.10 thereof and of prepayment of loans
thereunder to the extent necessary to give effect to Section 3.01(g) and Section
3.02(a) hereof; provided that any such
prepayment of Loans shall be subject to Section 2.14 of the Prior 364-Day Credit
Agreement.

       

      Section
3.03 .  Borrowings.  The
obligation of any Bank to make a Loan on the occasion of any Borrowing is
subject to the satisfaction of the following conditions, in each case at the
time of such Borrowing and immediately thereafter:

       

      (a) the fact
that the Effective Date shall have occurred on or prior to March 31,
2008;

       

      (b) receipt
by the Administrative Agent of a Notice of Borrowing as required by Section 2.02
or 2.03, as the case may be;

       

      (c) the fact
that the Borrower is in compliance with Section 7.12(a) of the 1972 Indenture
and Section 7.11 of the 1994 Indenture, as each Indenture is in effect as of the
date hereof;

       

      (d) the fact
that the aggregate outstanding principal amount of the Loans will not exceed the
aggregate amount of the Commitments;

       

      (e) the fact
that no Default shall have occurred and be continuing;

       

      (f) the fact
that the representations and warranties of the Borrower (in the case of a
Borrowing, other than the representation set forth in Section 4.02(c)) contained
in this Agreement shall be true (it being understood and agreed that the
representation and warranty set forth in Section 4.12 shall be true and correct
as to all information furnished prior to the making of the respective Loan);
and

       

      (g) the fact
that (i) there shall be no collateral securing Bonds issued pursuant to any
Indenture of a type other than the types of collateral permitted to secure Bonds
issued pursuant to such Indenture as of the date hereof, (ii) the allowable
amount of eligible collateral then pledged under any Indenture shall not exceed
150% of the aggregate principal amount of Bonds then outstanding under such
Indenture and (iii) no collateral shall secure Bonds other than (A) eligible
collateral under such Indenture, the allowable amount of which is included
within the computation under subsection (ii) above or (B) collateral previously
so pledged which ceases to be such eligible collateral not as a result of any
acts or omissions to act of the Borrower (other than the declaration of an
“event of default” as
defined in a mortgage which results in the exercise of any right or remedy
described in such mortgage).

       

      
        
          
          

        

        
          30

          
            

          

        

        
          
          

        

      

      Each
Borrowing hereunder shall be deemed to be a representation and warranty by the
Borrower on the date of such Borrowing as to the facts specified in clauses (c),
(d), (e), (f) and (g) of this Section 3.03.

       

                                      

      ARTICLE 4

       

      Representations
and Warranties

       

      The
Borrower makes the following representations, warranties and agreements, which
shall survive the execution and delivery of this Agreement and the Notes and the
making of the Loans:

       

      Section
4.01 .  Corporate Existence, Power and
Authority.  The Borrower is a cooperative association duly
incorporated, validly existing and in good standing under the laws of the
District of Columbia and has the corporate power and authority and all material
governmental licenses, authorizations, consents and approvals required to own
its property and assets and to transact the business in which it is
engaged.  The Borrower is duly qualified or licensed as a foreign
corporation in good standing in every jurisdiction in which the nature of the
business in which it is engaged makes such qualification or licensing necessary,
except in those jurisdictions in which the failure to be so qualified or
licensed would not (after qualification, assuming that the Borrower could so
qualify without the payment of any fee or penalty and retain the rights as they
existed prior to such qualification all to an extent so that any fees or
penalties required to be so paid or any rights not so retained would not,
individually or in the aggregate, have a material adverse effect on the business
or financial condition of the Borrower), individually or in the aggregate, have
a material adverse effect upon the business or financial condition of the
Borrower.  The Borrower has the corporate power and authority to
execute, deliver and carry out the terms and provisions of this Agreement and
the Notes.  This Agreement has been, and the Notes when executed and
delivered will have been, duly and validly authorized, executed and delivered by
the Borrower, and this Agreement constitutes a legal, valid and binding
agreement of the Borrower, and the Notes, when executed and delivered by the
Borrower in accordance with this Agreement, will constitute legal, valid and
binding obligations of the Borrower, in each case enforceable in accordance with
its terms, except as the same may be limited by bankruptcy, insolvency or
similar laws affecting creditors’ rights generally and by general principles of
equity.

       

      Section
4.02 .  Financial
Statements.  (a) The consolidated balance
sheets of the Borrower and its Consolidated Subsidiaries as at May 31, 2007 and
the related consolidated statements of operations, changes in equity and cash
flows for the fiscal year ended May 31, 2007, including the related notes,
accompanied by the opinion and report thereon of Deloitte & Touche LLP,
independent public accountants, heretofore delivered to the Banks, present
fairly in all material respects in accordance with generally accepted accounting
principles (i) the consolidated financial position of the Borrower and its
Consolidated Subsidiaries as at the date of said balance sheets and (ii)
the consolidated results of the 

       

      
        
          
          

        

        
          31

          
            

          

        

        
          
          
operations
of the Borrower and its Consolidated Subsidiaries for said fiscal
year.  The Borrower has no material liabilities (contingent or
otherwise) of the type required to be disclosed in financial statements or
footnotes which are not disclosed by or reserved against in the most recent
audited financial statements or in the notes thereto other than (i) Indebtedness
incurred and (ii) loan and guarantee commitments issued in each case by the
Borrower in the ordinary course of business since the date of such financial
statements.  All such financial statements have been prepared in
accordance with generally accepted accounting principles applied on a basis
consistent with prior periods, except as disclosed therein.  The same
representations as are set forth in this Section 4.02 shall be deemed to have
been made by the Borrower in respect of the most recent annual and quarterly
financial statements of the Borrower and its Consolidated Subsidiaries (except
that the annual opinion and report of Deloitte & Touche LLP may be replaced
by an opinion and report of another nationally recognized firm of independent
public accountants) furnished or required to be furnished to the Banks prior to
or at the time of the making of each Loan hereunder, at the time the same are
furnished or required to be furnished.

      

       

      (b) The
unaudited consolidated balance sheets of the Borrower and its Consolidated
Subsidiaries as of November 30, 2007 and the related unaudited consolidated
statements of operations, changes in equity and cash flows for the six months
then ended, heretofore delivered to the Banks, present fairly in conformity with
generally accepted accounting principles applied on a basis consistent with the
financial statements referred to in subsection (a) of this Section 4.02, the
consolidated financial position of the Borrower and its Consolidated
Subsidiaries as of such date and their consolidated results of operations and
changes in financial position for such six-month period (subject to normal
year-end adjustments).  The Borrower and its Consolidated Subsidiaries
have no material liabilities (contingent or otherwise) of the type required to
be disclosed in financial statements or footnotes which are not disclosed by or
reserved against in such financial statements for such six-month period other
than (i) Indebtedness incurred and (ii) loan and guarantee commitments issued in
each case by the Borrower or its Consolidated Subsidiaries in the ordinary
course of business since the date of such financial statements.

       

      (c) Since
November 30, 2007 there has been no material adverse change in the business,
financial position, results of operations or prospects of the Borrower and its
Consolidated Subsidiaries, considered as a whole.

       

      Section
4.03 .  Litigation.  There
are no actions, suits, proceedings or investigations pending or, to the
Borrower’s knowledge, threatened by or before any court or any governmental
authority, body or agency or any arbitration board which are reasonably likely
to materially adversely affect the business, property, assets, financial
position or results of operations of the Borrower or the authority or ability of
the Borrower to perform its obligations under this Agreement or the
Notes.

       

      
        
          
          

        

        
          32

          
            

          

        

        
          
          

        

      

      Section
4.04 .  Governmental
Authorizations.  No material authorization, consent, approval
or license of, or declaration, filing or registration with or exemption by, any
governmental authority, body or agency is required in connection with the
execution, delivery or performance by the Borrower of this Agreement or the
Notes.  The Banks
acknowledge that the Borrower will file this Agreement with the Securities and
Exchange Commission after the Effective Date.

       

      Section
4.05 .  Members’ Subordinated
Certificates.  The holders of the Borrower’s Members’
Subordinated Certificates are not and will not be entitled to receive any
payments with respect to the principal thereof or interest thereon solely
because of withdrawing or being expelled from membership in the
Borrower.

       

      Section
4.06 .  No Violation of
Agreements.  Neither the Borrower nor any Subsidiary is in
default in any material respect under any material agreement or other material
instrument to which it is a party or by which it is bound or its property or
assets may be affected.  No event or condition exists which
constitutes, or with the giving of notice or lapse of time or both would
constitute, such a default under any such agreement or other
instrument.  Neither the execution and delivery of this Agreement or
the Notes, nor the consummation of any of the transactions herein or therein
contemplated, nor compliance with the terms and provisions hereof or thereof,
will contravene any material provision of law, statute, rule or regulation to
which the Borrower is subject or any material judgment, decree, award,
franchise, order or permit applicable to the Borrower, or will conflict or be
inconsistent with, or will result in any breach of, any of the material terms,
covenants, conditions or provisions of, or constitute (or with the giving of
notice or lapse of time, or both, would constitute) a material default under (or
condition or event entitling any Person to require, whether by purchase,
redemption, acceleration or otherwise, the Borrower to perform any obligations
prior to the scheduled maturity thereof), or result in the creation or
imposition of any Lien upon any of the property or assets of the Borrower
pursuant to the terms of, any indenture, mortgage, deed of trust, agreement or
other instrument to which it may be subject, or violate any provision of the
certificate of incorporation or by-laws of the Borrower.  Without
limiting the generality of the foregoing, the Borrower is not a party to, or
otherwise subject to any provision contained in, any instrument evidencing
Indebtedness of the Borrower, any agreement or indenture relating thereto or any
other material contract or agreement (including its certificate of incorporation
and by-laws), which would be violated by the incurring of the Indebtedness to be
evidenced by the Notes.

       

      Section
4.07 .  No Event of Default under the
Indentures.  The Borrower has complied fully with all of the
material provisions of each Indenture.  No Event of Default (within
the meaning of such term as defined in each Indenture) and no event, act or
condition (except for possible non-compliance by the Borrower with any
immaterial provision of such Indenture which in itself is not such an Event of
Default under such Indenture) which with notice or lapse of time, or both, would
constitute such an Event of Default has occurred and is 

       

      
        
          
          

        

        
          33

          
            

          

        

        
          
          
continuing
under such Indenture.  The Borrowings by the Borrower contemplated by
this Agreement will not cause such an Event of Default under, or the violation
of any covenant contained in, any Indenture.

      

       

      Section
4.08 .  Compliance with
ERISA.  The Plans (other than Plans consisting of multiemployer
plans (as defined in Section 4001 of ERISA)) are in substantial compliance with
ERISA other than any failure to comply that is not reasonably likely to have a
material adverse effect on the business, operations, prospects, property, assets
or financial position of the Borrower, no such Plan is insolvent or in
reorganization other than an insolvency or reorganization that is not reasonably
likely to have a material adverse effect on the business, operations, prospects,
property, assets or financial position of the Borrower, and no such Plan has an
accumulated or waived funding deficiency within the meaning of Section 412 of
the Internal Revenue Code other than any accumulated or waived funding
deficiency that is not reasonably likely to have a material adverse effect on
the business, operations, prospects, property, assets or financial position of
the Borrower.  No Plan consisting of a multiemployer plan (as defined
in Section 4001 of ERISA) is in reorganization.  Neither the Borrower
nor a Subsidiary of the Borrower nor any member of the ERISA Group has incurred
any material liability (including any material contingent liability) to or on
account of a Plan pursuant to Section 4062, 4063, 4064, 4201 or 4204 of ERISA,
no proceedings have been instituted to terminate any Plan, and no condition
exists which presents a material risk to the Borrower of incurring a material
liability to or on account of a Plan pursuant to any of the foregoing Sections
of ERISA.

       

      Section
4.09 .  Compliance with Other
Laws.  The Borrower and each Subsidiary is in compliance, in
all material respects, with all applicable requirements of law and all
applicable rules and regulations of each Federal, State, municipal or other
governmental department, agency or authority, domestic or foreign.

       

      Section
4.10 .  Tax Status.  The
Borrower is exempt from payment of Federal income tax under Section 501(c)(4) of
the Internal Revenue Code.

       

      Section
4.11 .  Investment Company
Act.  The Borrower is not an “investment company” or a company
“controlled” by an “investment company”, within the meaning of the Investment
Company Act of 1940, as amended.

       

      Section
4.12 .  Disclosure.  To the
best of the Borrower’s knowledge, information and belief, neither this Agreement
nor any document, certificate or financial statement furnished to any Bank by or
on behalf of the Borrower in connection herewith (all such documents,
certificates and financial statements, taken as a whole) contains any untrue
statement of a material fact or omits to state any material fact necessary in
order to make the statements contained herein and therein not
misleading.  There is no fact (other than facts of a general economic
or political nature) known to the Borrower which in its judgment materially
adversely affects or in the future is likely to (so far as is now known to the
Borrower) have a material adverse effect upon the business, operations,
prospects, 

       

      
        
          
          

        

        
          34

          
            

          

        

        
          
          
property,
assets or financial condition of the Borrower which has not been set forth in
this Agreement or in other documents, certificates or financial statements
furnished to the Banks by or on behalf of the Borrower in connection with the
transactions contemplated hereby.

      

       

      Section
4.13 .  Subsidiaries.  Each
of the Borrower’s corporate Subsidiaries is a corporation duly incorporated,
validly existing and in good standing under the laws of its jurisdiction of
incorporation, and has all corporate powers and all material governmental
licenses, authorizations, consents and approvals required to carry on its
business as now conducted.

       

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

       

                               

      ARTICLE 5

       

      Covenants

       

      The
Borrower agrees that, so long as any Bank has any Commitment hereunder or any
amount payable under any Note or any fee payable pursuant to Section 2.09 or any
other amount then due and payable hereunder remains unpaid:

       

      Section
5.01 .  Corporate
Existence.  The Borrower, at its own cost and expense, will,
and will cause each Subsidiary to, do or cause to be done all things necessary
to preserve and keep in full force and effect its corporate existence, material
rights and franchises; provided, however, that
neither the Borrower nor any Subsidiary shall be required to preserve any right
or franchise or, in the case of a Subsidiary, its corporate existence, if its
Board of Directors shall determine that the preservation thereof is no longer
desirable in the conduct of the business of the Borrower or such Subsidiary
(provided that the
termination of the corporate existence of a Subsidiary shall be permitted if the
Board of Directors of the 

       

      
        
          
          

        

        
          35

          
            

          

        

        
          
          
Borrower
shall determine that its existence is not desirable in the conduct of the
business of the Borrower) and that the loss thereof is not disadvantageous in
any material respect to the Banks.

      

       

      Section
5.02 .  Disposition of Assets, Merger,
Character of Business, etc.  The Borrower will not wind up or
liquidate its business or sell, lease, transfer or otherwise dispose of all or
substantially all of its assets as an entirety or in a series of related
transactions and will not consolidate with or merge with or into any other
Person other than a merger with a Subsidiary in which the Borrower is the
surviving Person.  The Borrower will not engage in any business other
than the business contemplated by its certificate of incorporation and by-laws,
each as in effect on the Effective Date.

       

      Section
5.03 .  Financial
Information.  (a) The Borrower will, and will cause each
Subsidiary other than the Subsidiaries listed on Schedule 5.03(a) to, keep its
books of account in accordance with generally accepted accounting
principles.

       

      (b) The
Borrower will furnish to the Banks:

       

      (i) as soon
as available and in any event within 60 days after the close of each of the
first three quarters of each fiscal year of the Borrower, as at the end of, and
for the period commencing at the end of the previous fiscal year and ending
with, such quarter, unaudited consolidated balance sheets of the Borrower and
its Consolidated Subsidiaries and the related unaudited consolidated statements
of operations, changes in equity and cash flow of the Borrower and its
Consolidated Subsidiaries for such quarter and for the portion of the Borrower’s
fiscal year ended at the end of such quarter, setting forth in each case in
comparative form the figures for the corresponding quarter and the corresponding
portion of the Borrower’s previous fiscal year, all in reasonable detail and
certified (subject to normal year-end adjustments) as to fairness of
presentation in accordance with generally accepted accounting principles in all
material respects and consistency (except for changes concurred in by the
Borrower’s independent public accountants) by the Chief Executive Officer, the
Chief Financial Officer, an Assistant Secretary-Treasurer or the Controller of
the Borrower;

       

      (ii) as soon
as practicable and in any event within the earlier of (i) two Domestic Business
Days after filing with the Securities and Exchange Commission and (ii) 120 days
after the close of each fiscal year of the Borrower, as at the end of and for
the fiscal year just closed, consolidated balance sheets of the Borrower and its
Consolidated Subsidiaries and the related consolidated statements of operations,
changes in equity and cash flow for such fiscal year for the Borrower and its
Consolidated Subsidiaries, all in reasonable detail and fully certified (without
any qualification as to the scope of the audit) by Deloitte & Touche LLP or
other independent public accountants of nationally 

       

      
        
          
          

        

        
          36

          
            

          

        

        
          
          
    recognized
standing selected by the Borrower, who shall have audited the books and accounts
of the Borrower for such fiscal year;

      

       

      (iii) together
with the financial statements referred to in clauses (i) and (ii) above, a
certificate signed by the Chief Executive Officer, the Chief Financial Officer,
an Assistant Secretary-Treasurer or the Controller of the Borrower, in such
detail as shall be reasonably satisfactory to the Required Banks,

       

      (A) identifying
(x) all Indebtedness outstanding as at the end of the fiscal period covered by
such financial statements extended by the Borrower or its Consolidated
Subsidiaries or by any other Person and Guaranteed by the Borrower or its
Consolidated Subsidiaries to the ten Members or borrowers of any Consolidated
Subsidiary (“Consolidated
Subsidiary Members”), taken as a whole, with the largest amount of
Indebtedness to (or Guaranteed by) the Borrower or its Consolidated Subsidiaries
outstanding as at the end of the fiscal period covered by such financial
statements (the “Largest
Members”) as to which, to the knowledge and information of the Borrower
or such Consolidated Subsidiary, the Member or Consolidated Subsidiary Member is
in default (whether in the payment of the principal thereof or interest thereon
or with respect to any material covenant or agreement contained in any
instrument, mortgage or agreement evidencing or relating to such Indebtedness)
and specifying whether such default has been waived by the Borrower or such
Consolidated Subsidiary or such other Person and the nature and status of each
such default not so waived and (y) the aggregate amount of all Indebtedness
outstanding as of the end of the fiscal period covered by such financial
statements as to which, to the knowledge and information of the Borrower or such
Consolidated Subsidiary, Members or Consolidated Subsidiary Members other than
the Largest Members are in default in the payment of the principal thereof or
interest thereon or are in default with respect to any material covenant or
agreement contained in any instrument, mortgage or agreement evidencing or
relating to such Indebtedness and as to which the Borrower or such Consolidated
Subsidiary has commenced the exercise of remedies in respect
thereof,

       

      (B) identifying
the ten Members or Consolidated Subsidiary Members, taken as a whole, with the
largest amount of Indebtedness to (or Guaranteed by) the Borrower or its
Consolidated Subsidiaries outstanding as of the end of the fiscal period covered
by such financial statements, together with the principal amount of such
Indebtedness outstanding with respect to each such Member or Consolidated
Subsidiary Member as of the end of such fiscal period, and

       

      
        
          
          

        

        
          37

          
            

          

        

        
          
          

        

      

      (C) providing
the aggregate principal amount of all loans which are RUS Guaranteed Loans and
are outstanding as of the end of the fiscal period covered by such financial
statements, provided
that if such amount has previously been disclosed by the Borrower in its regular
or periodical reports filed with, or furnished to, the Securities and Exchange
Commission, then the certificate need only reference such report and the section
of such report in which such information may be found;

       

      (iv) with
reasonable promptness, copies of all regular and periodical reports (including
Current Reports on Form 8-K) filed with, or furnished to, the Securities and
Exchange Commission;

       

      (v) promptly
after obtaining knowledge or receiving notice of a change (whether an increase
or decrease) in any rating issued by S&P or Moody’s pertaining to any
securities of, or guaranteed by, the Borrower or any of its Subsidiaries or
affiliates, a notice setting forth such change; and

       

      (vi) with
reasonable promptness, such other information respecting the business,
operations, prospects and financial condition of the Borrower or any of its
Subsidiaries or any Joint Venture as any Bank may, from time to time, reasonably
request, including, without limitation, with respect to the performance and
observance by the Borrower of the covenants and conditions contained in this
Agreement.

       

      Section
5.04 .  Default
Certificates.  Concurrently with each financial statement
delivered to the Banks pursuant to clauses (i) and (ii) of Section 5.03, the
Borrower will furnish to the Banks a certificate signed by the Chief Executive
Officer, the Chief Financial Officer, an Assistant Secretary-Treasurer or the
Controller of the Borrower to the effect that the review of the activities of
the Borrower during such year or the portion thereof covered by such financial
statement and of the performance of the Borrower under this Agreement has been
made under his supervision and that to the best of his knowledge, based on such
review, there exists no event which constitutes a Default or an Event of Default
under this Agreement or, if any such event exists, specifying the nature
thereof, the period of its existence and what action the Borrower has taken and
proposes to take with respect thereto, which certificate shall set forth the
calculations or other data required to establish compliance with the provisions
of Section 5.09 and Sections 5.12 through 5.14, inclusive, at the end of such
fiscal quarter or fiscal year, as the case may be.  The Borrower
further covenants that upon any such officer of the Borrower obtaining knowledge
of any Default or Event of Default under this Agreement, it will forthwith, and
in no event later than the close of business on the Domestic Business Day
immediately after the day such knowledge is obtained, deliver to the Banks a
statement of any officer referred to above specifying the nature and the period
of existence thereof and what action the Borrower has taken and proposes to take
with respect thereto.

       

      
        
          
          

        

        
          38

          
            

          

        

        
          
          

        

      

      Section
5.05 .  Notice of Litigation, Legislative
Developments and Defaults.  The Borrower will promptly give
written notice to each of the Banks of (i) any action, proceeding or claim of
which the Borrower may have notice, which may be commenced against the Borrower
or any Subsidiary in which the amount involved is $50,000,000 or more and is not
covered in full by insurance or as to which any insurer has disclaimed
liability; (ii) any dispute which may exist between the Borrower or any
Subsidiary and any governmental body, which is likely to materially and
adversely affect the normal business operation of the Borrower or the Borrower
and its Subsidiaries taken as a whole or any of the material properties and
assets of the Borrower or the Borrower and its Subsidiaries taken as a whole;
(iii) any legislation enacted by any governmental body and any rulings and
regulations promulgated by any governmental or regulatory bodies, known to the
Borrower, affecting the Borrower or any Subsidiary or, if known to the Borrower,
generally affecting the Borrower’s Members which is likely to materially and
adversely affect the present or future operations of the Borrower, the Borrower
and its Subsidiaries taken as a whole or the Borrower’s Members; and (iv) any
default by the Borrower or any Subsidiary or event or condition known to the
Borrower which with the giving of notice or lapse of time, or both, would
constitute a default, with respect to any payment or payments in respect of
Indebtedness of the Borrower or such Subsidiary aggregating in excess of
$25,000,000 (whether in payment of principal thereof or interest thereon or with
respect to any material covenant or agreement contained in any instrument,
mortgage, deed of trust or agreement evidencing or relating to such Indebtedness
or otherwise), provided
that if any matter described in clauses (i) through (iv) of this Section has
previously been disclosed by the Borrower in its regular or periodical reports
filed with, or furnished to, the Securities and Exchange Commission, then no
additional written notice shall be required under this Section.

       

      Section
5.06 .  ERISA.  As soon as
possible and, in any event, within 10 days after the Borrower or a Subsidiary of
the Borrower knows or has reason to know that a Reportable Event has occurred,
that an accumulated funding deficiency has been incurred or an application may
be or has been made to the Secretary of the Treasury for a waiver of the minimum
funding standard under Section 412 of the Internal Revenue Code with respect to
a Plan, that a Plan has been or may be terminated, that proceedings may be or
have been instituted to terminate a Plan, or that the Borrower, a Subsidiary of
the Borrower or any member of the ERISA Group will or may incur any liability in
excess of $5,000,000 to or on account of a Plan under Section 4062, 4063, 4064,
4201 or 4204 of ERISA, the Borrower will deliver to each of the Banks a
certificate of the Chief Financial Officer of the Borrower setting forth details
as to such occurrence and action, if any, which the Borrower or such Subsidiary
is required or proposes to take, together with any notices required to be filed
by the Borrower, such Subsidiary, such member of the ERISA Group or the plan
administrator with the PBGC with respect thereto.

       

      Section
5.07 .  Payment of
Charges.  The Borrower will, and will cause each Subsidiary to,
duly pay and discharge (i) all taxes, assessments and 

       

      
        
          
          

        

        
          39

          
            

          

        

        
          
          
governmental
charges or levies imposed upon or against it or its property or assets, prior to
the date on which material penalties attach thereto, unless and to the extent
only that such taxes, assessments and governmental charges or levies are being
contested in good faith by appropriate proceedings; and (ii) all material lawful
claims, including, without limitation, claims for labor, materials, supplies or
services, which might or could, if unpaid, become a Lien upon such property or
assets, unless and to the extent only that the validity or the amount thereof is
being contested in good faith by appropriate proceedings.

      

       

      Section
5.08 .  Inspection of Books and
Assets.  The Borrower will, and will cause each Subsidiary to,
permit any representative of any Bank (or any agent or nominee of such Bank) to
visit and inspect any of the property of the Borrower or such Subsidiary, to
examine the books of record and account of the Borrower or such Subsidiary and
to discuss the affairs, finances and accounts of the Borrower or such Subsidiary
with the officers and independent public accountants of the Borrower or such
Subsidiary, all at such reasonable times and as often as such Bank may
reasonably request.

       

      Section
5.09 .  Indebtedness.  (a) The Borrower
will not, and will not permit any of its Consolidated Subsidiaries (other than
Rural Telephone Finance Cooperative and National Cooperative Services
Corporation) to, incur, assume or Guarantee any Superior Indebtedness, or make
any optional prepayment on any Members’ Subordinated Certificate; provided that (i)
subject to the provisions of Section 5.12, any such Subsidiary may incur
Superior Indebtedness owing to the Borrower or assume or Guarantee Indebtedness
of any Person (other than the Borrower or any of its Subsidiaries) owing to the
Borrower and (ii) the Borrower may incur, assume or Guarantee Superior
Indebtedness or make optional prepayments on Members’ Subordinated Certificates
if, after giving effect to any such action specified above in this clause (ii),
(x) on the date of such incurrence, assumption or Guarantee or making of such
optional prepayment (the “Determination Date”) the
aggregate principal amount of Superior Indebtedness then outstanding would not
exceed ten times the sum of (a) the aggregate principal amount of Members’
Subordinated Certificates outstanding on the Determination Date, (b) the
aggregate amount of the line item “total equity” shown on the consolidated
balance sheet of the Borrower and its Consolidated Subsidiaries on the
Determination Date, (c) the aggregate amount of the line item “minority
interest” 

       

      
        
          
          

        

        
          40

          
            

          

        

        
          
          
shown on
the consolidated balance sheet of the Borrower and its Consolidated Subsidiaries
on the Determination Date and (d) the aggregate principal amount of Qualified
Subordinated Indebtedness outstanding on the Determination Date and (y) on
no given future date ending on the last day of each fiscal quarter would the
aggregate principal amount of Superior Indebtedness outstanding on the
Determination Date which will remain outstanding on such given future date
exceed ten times the sum of (a) the aggregate principal amount of Members’
Subordinated Certificates outstanding on the Determination Date which will
remain outstanding on such given future fiscal quarter-end date, (b) the
aggregate amount of the line item “total equity” shown on the
consolidated  balance sheet of the Borrower and its Consolidated
Subsidiaries on the Determination Date, (c) the aggregate amount of the line
item “minority interest” shown on the consolidated balance sheet of the Borrower
and its Consolidated Subsidiaries on the Determination Date and (d) the
aggregate principal amount of Qualified Subordinated Indebtedness outstanding on
the Determination Date which will remain outstanding on such given future date;
provided that the
non-cash adjustments (whether positive or negative) required to be made pursuant
to SFAS 133 and SFAS 52 shall be excluded from calculations under clause (ii)
above to the extent otherwise included therein.  The respective
principal amounts of Superior Indebtedness, Members’ Subordinated Certificates
and Qualified Subordinated Indebtedness to be outstanding on such given future
date shall be determined after giving effect to mandatory sinking fund payments,
other mandatory prepayments and serial and other maturity payments required to
be made on or prior to said given future date by the terms of such Superior
Indebtedness, Members’ Subordinated Certificates, Qualified Subordinated
Indebtedness or any indenture or other instrument pursuant to which they are
respectively issued.

      

       

      (b) If any
Loan is outstanding hereunder, the Borrower will not take any action which would
prevent it from then complying, or fail to take any action which would enable it
then to comply, with the provisions of Section 3.03(g), assuming for this
purpose only that the Borrower then intended to borrow from one or more of the
Banks hereunder.

       

      Section
5.10 .  Liens.  The
Borrower will not create or permit to exist any Lien on or with respect to any
Indebtedness of any Member which is an asset of the Borrower, now existing or
hereafter created, or on any notes, mortgages or other documents or instruments
evidencing any such Indebtedness, and the Borrower will not permit any
Consolidated Subsidiary to create or permit to exist any Lien on or with respect
to any of such Subsidiary’s assets, except Liens (i) granted by the Borrower to
the trustee pursuant to any Indenture, (ii) on any such Indebtedness granted by
the Borrower or its Consolidated Subsidiary to secure any borrowing for the
purpose of making loans to Member power supply systems or loans to Members for
bulk power supply projects or loans to Members for the purpose of providing
financing to telephone and related systems eligible to borrow from the RUS or
loans to borrowers borrowing from National Cooperative Services Corporation or
Rural Telephone Finance Cooperative, which borrowing or borrowings are on terms
(except as to terms of interest, premium, if any, and amortization) not
materially more disadvantageous to the Borrower’s unsecured creditors than the
borrowings under any Indenture (it being understood that the Borrower can not
pledge such assets to an extent greater than 150% of the aggregate principal
amount of such Indebtedness); provided that Liens incurred
in reliance on this subsection (ii) shall not secure amounts exceeding
$500,000,000 in the aggregate at any one time outstanding, (iii) of current
taxes not delinquent or a security for taxes being contested in good faith, (iv)
other than in favor of the PBGC, created by or resulting from any legal
proceedings (including legal proceedings instituted by the Borrower or any
Subsidiary) which are being contested in good faith by appropriate proceedings,
including appeals of judgments as to which a stay of execution shall have been
issued, and adequate reserves shall have been established, (v) created by the
Borrower to secure 

       

      
        
          
          

        

        
          41

          
            

          

        

        
          
          
Guarantees
by the Borrower of Indebtedness, the interest on which is excludable from the
gross income of the recipient thereof for Federal income tax purposes as
provided in Section 103(a) of the Internal Revenue Code or Section 103(a) of the
Internal Revenue Code of 1954, as amended, (x) of a Member which is a state or
political subdivision thereof or (y) of a state or political subdivision thereof
incurred to benefit a Member for one of the purposes provided in Section
142(a)(2), (4), (5), (6), (8), (9), (10) or (12) of the Internal Revenue Code or
Section 103(b)(4)(D), (E), (F), (G), (H) or (J) of the Internal Revenue Code of
1954, as amended, (vi) granted by any Subsidiary to the Borrower, (vii) REDLG
Program Liens securing REDLG Obligations with respect to government Guarantees
of Indebtedness of the Borrower in an aggregate principal or face amount not to
exceed $3,000,000,000 at any one time outstanding, and (viii) on any such
Indebtedness granted by the Borrower to secure any borrowings, which borrowings
are on terms (except as to terms of interest, premium, if any, and amortization)
not materially more disadvantageous to the Borrower’s unsecured creditors than
the borrowings under any Indenture (it being understood that the Borrower can
not pledge such assets to an extent greater than 150% of the aggregate principal
amount of such Indebtedness); provided that Liens incurred
in reliance on this subsection (viii) shall not secure amounts exceeding
$1,000,000,000 in the aggregate at any one time outstanding.

      

       

      Section
5.11 .  Maintenance of
Insurance.  The Borrower will maintain, and will cause each
Subsidiary to maintain, insurance in such amounts, on such forms and with such
companies as is necessary or appropriate for its business.

       

      Section
5.12 .  Subsidiaries and Joint
Ventures.  The Borrower will not permit (a) the sum of (i) the amount of
Indebtedness owing to the Borrower by all of its Subsidiaries and Joint Ventures
plus (ii) the
amount paid by the Borrower in respect of the stock, obligations or securities
of or any other interest in such Subsidiaries and Joint Ventures plus (iii) any capital
contributions by the Borrower to such Subsidiaries and Joint Ventures (the
amounts referred to in paragraphs (i) through (iii), the “Investments”) plus (iv) the amount of assets (excluding
Foreclosed Assets) otherwise sold or transferred by the Borrower to such
Subsidiaries and Joint Ventures (other than sales at fair market value) minus (v) any Start-up
Investments minus (vi)
any Investment made in cash by the Borrower in any Special Purpose Subsidiary
(up to a maximum amount not to exceed the lesser of (x) the amount
necessary to provide such Special Purpose Subsidiary with sufficient working
capital to conduct its business as contemplated hereby and
(y) $150,000,000) to exceed at any time (b) 10% of the sum of (i) all
accounts which, in accordance with generally accepted accounting principles,
constitute equity in the Borrower and its Consolidated Subsidiaries at such time
plus (ii) all
Indebtedness of the Borrower shown on its balance sheet dated as of May 31, 2007
as Members’ Subordinated Certificates as such Indebtedness shall be reduced from
time to time and any other Indebtedness of the Borrower incurred after May 31,
2007 having substantially similar provisions as to subordination as those
contained in said outstanding certificates as such other Indebtedness shall be
reduced from time to time, in each case at such time plus (iii) all “minority
interest” shown on the consolidated statement of operations of 

       

      
        
          
          

        

        
          42

          
            

          

        

        
          
          
the
Borrower and its Consolidated Subsidiaries most recently delivered by the
Borrower to the Banks pursuant to Section 4.02 or Section 5.03 plus (iv) all Qualified
Subordinated Indebtedness outstanding at such time; provided that non-cash
adjustments (whether positive or negative) required to be made pursuant to SFAS
133 and SFAS 52 shall be excluded from the calculation of the amounts specified
in clauses (b)(i), (b)(ii), (b)(iii) and (b)(iv) to the extent otherwise
included therein; provided
further that, in addition to the foregoing, the Borrower may transfer
assets with an aggregate fair market value of not more than $150,000,000 to a
bankruptcy remote trust required to be established to support REDLG Obligations
of the Borrower, and any such transfer shall be excluded from any calculation
under clauses (a) and (b) above to the extent otherwise included
therein.  For the purpose of this Section 5.12, “Foreclosed Asset” means (x)
any property distributed or to be distributed to the Borrower with the authority
of any Bankruptcy Court in connection with the bankruptcy of any of the
Borrower’s debtors and (y) property received by the Borrower upon enforcement by
the Borrower of its security interest (if any) in such property or in settlement
of delinquent accounts or other overdue amounts owed to it by any of the
Borrower’s debtors; “Special
Purpose Subsidiary” means any domestic Subsidiary all of the shares of
capital stock or other ownership interest of which are directly or indirectly
owned by the Borrower, which Subsidiary is established for the sole purpose of,
and whose sole business shall at all times be, holding Foreclosed Assets; and
“Start-up Investments”
means Investments made in a Special Purpose Subsidiary solely to finance such
Special Purpose Subsidiary’s initial acquisition of Foreclosed
Assets.

      

       

      Section
5.13 .  Minimum TIER.  The
Borrower shall not permit, as of the last day of each fiscal quarter, the
average of the TIERs for the six (6) immediately preceding fiscal quarters
(including the fiscal quarter ending on such date) of the Borrower to be less
than 1.025:1.00.

       

      Section
5.14 .  Retirement of Patronage
Capital.  The Borrower shall not make, or permit any
Subsidiaries of the Borrower to make, any payments to Members in respect of
Patronage Capital Certificates unless (i) the TIER for the immediately preceding
fiscal year for which financial statements have been delivered to the Banks
pursuant to Section 5.03(b) equals or exceeds 1.05:1.00 and (ii) there exists
(and would exist after giving effect to any such payment) no Default or Event of
Default under this Agreement.

       

      Section
5.15 .  Use of
Proceeds.  The proceeds of the Loans made hereunder may be used
by the Borrower for general corporate purposes.  None of such proceeds
will be used, directly or indirectly, for the purpose, whether immediate,
incidental or ultimate, of buying or carrying any “margin stock”, within the
meaning of Regulation U.  Neither the Borrower nor any agent acting on
its behalf has taken or will take any action which might cause this Agreement or
the Notes to violate Regulation U or Regulation X.

       

      
        
          
          

        

        
          43

          
            

          

        

        
          
          

        

      

       

                                      

      ARTICLE 6

       

      Defaults

       

      Section
6.01 .  Events of
Defaults.  If one or more of the following events (“Events of Default”) shall have
occurred and be continuing:

       

      (a) Principal and
Interest.  The Borrower shall (i) fail to pay when due
(whether upon stated maturity, by acceleration or otherwise) any principal of
any Loan or (ii) fail, and such failure shall continue uncured for one or
more Domestic Business Days, to pay when due (whether upon stated maturity, by
acceleration or otherwise) any interest on any Loan;

       

      (b) Other
Amounts.  The  Borrower shall fail to pay when due
any fee or other amount payable under this Agreement and such failure remains
uncured for five (5) days after the due date thereof;

       

      (c) Covenants Without
Notice.  The Borrower shall fail to observe or perform any
covenant or agreement on its part to be observed or performed which is set forth
in Section 5.01, 5.02, 5.09, 5.10, 5.12, 5.13, 5.14 or 5.15;

       

      (d) Covenants With 10 Days
Grace.  The Borrower shall fail to observe or perform any
covenant or agreement on its part to be observed or performed, which is set
forth in the last sentence of Section 5.04, or in Section 5.05, 5.06, 5.07,
5.08, and such non-observance or non-performance shall continue unremedied for a
period of more than 10 days;

       

      (e) Other
Covenants.  The Borrower shall fail to observe or perform any
covenant, condition or agreement on its part to be observed or performed, other
than as referred to in subsections (a), (b), (c) and (d) above, for a period of
30 days after written notice specifying such failure and requesting that it be
remedied is given by any Bank to the Borrower and the other Banks; provided that, if the failure
be such that it cannot be corrected within the applicable period, but can be
corrected within a reasonable period of time thereafter, it shall not constitute
a Default if corrective action is instituted by the Borrower within the
applicable period and diligently pursued until the failure is corrected, but any
such failure that is not so corrected within 45 days after such applicable
period shall constitute a Default;

       

      (f) Representations.  Any
representation, warranty, certification or statement made or deemed to be made
by the Borrower in this Agreement or in any certificate, financial statement or
other document delivered pursuant to this Agreement shall prove to have been
incorrect in any material respect when made or deemed to be made;

       

      (g) Non-Payments of Indebtedness and/or
Derivatives Obligations.  The Borrower or any Subsidiary of the
Borrower shall fail to make any payment or payments aggregating for the Borrower
and its Subsidiaries in excess of $50,000,000 in respect of Indebtedness and/or
Derivatives Obligations of the Borrower or any Subsidiary (other than the Loans
or any Indebtedness under this 

       

      
        
          
          

        

        
          44

          
            

          

        

        
          
          
Agreement)
when due (whether upon stated maturity, by acceleration or otherwise) or within
any applicable grace period;

      

       

      (h) Defaults Under Other
Agreements.  The Borrower or any Subsidiary shall fail to
observe or perform within any applicable grace period any covenant or agreement
contained in any agreement or instrument relating to any Indebtedness of the
Borrower or any Subsidiary, aggregating for the Borrower and its Subsidiaries in
excess of $50,000,000 if the effect of such failure is to accelerate, or to
permit the holder of such Indebtedness or any other Person to accelerate, the
maturity of such Indebtedness;

       

      (i) Bankruptcy.  The
Borrower or any Subsidiary shall generally not pay its debts as they become due,
or shall admit in writing its inability to pay its debts generally or shall make
a general assignment for the benefit of creditors; or any proceeding shall be
instituted by or against the Borrower or any Subsidiary seeking to adjudicate it
bankrupt or insolvent, or seeking liquidation, winding up, reorganization,
arrangement, adjustment, protection, conservation or proceeding in the nature
thereof, relief or composition of it or its debts under any law relating to
bankruptcy, insolvency or reorganization or relief or protection of debtors, or
seeking the entry of an order for relief or the appointment of a receiver
(including state regulatory authorities acting in a similar capacity), trustee,
custodian or other similar official for it or for any substantial part of its
property, and, in the case of any such proceeding instituted against it (but not
instituted by it) shall remain undismissed or unstayed for a period of 60 days;
or the Borrower or any Subsidiary shall take any action to authorize any of the
actions set forth above in this subsection (i);

       

      (j) ERISA.  A Plan
shall fail to maintain the minimum funding standard required by Section 412 of
the Internal Revenue Code for any plan year or a waiver of such standard is
sought or granted under Section 412(d), or a Plan is, shall have been or is
likely to be terminated or the subject of termination proceedings under Section
4042 of ERISA, or the Borrower or a Subsidiary of the Borrower or any member of
the ERISA Group has incurred or is likely to incur a liability to or on account
of a Plan under Section 4062, 4063, 4064, 4201 or 4204 of ERISA, and there shall
result from any such event or events either a liability or a material risk of
incurring a liability to the PBGC or a Plan, which in the opinion of the
Required Banks, will have a material adverse effect upon the business,
operations or the financial condition of the Borrower; or

       

      (k) Money Judgment.  A
final judgment or order for the payment of money in excess of $50,000,000 shall
be rendered against the Borrower or any Subsidiary and such judgment or order
shall continue unsatisfied and in effect for a period of 45 days during which
execution shall not be effectively stayed or deferred (whether by action of a
court, by agreement or otherwise);

       

      then, and
in any such event, and at any time thereafter, if any Event of Default shall
then be continuing, the Administrative Agent, upon the request of the Required
Banks, shall by notice to the Borrower, take any or all of the following

       

      
        
          
          

        

        
          45

          
            

          

        

        
          
          

        

      

      actions,
without prejudice to the rights of the Administrative Agent, any Bank or the
holder of any Note to enforce its claims against the Borrower:  (a)
declare the Commitments terminated, whereupon the Commitment of each Bank shall
forthwith terminate immediately and any fee payable pursuant to Section 2.09
shall forthwith become due and payable without any other notice of any kind; or
(b) declare the principal of and accrued interest on the Loans, and all other
obligations owing hereunder, to be, whereupon the same shall become, forthwith
due and payable without presentment, demand, protest or other notice of any
kind, all of which are hereby waived by the Borrower; provided that, if an Event of
Default specified in subsection (i) shall occur, the result which would occur
upon the giving of written notice by the Administrative Agent to the Borrower,
as specified in clauses (a) and (b) above, shall occur automatically without the
giving of any such notice.

       

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

       

       

                     ARTICLE
7                 

       

      The
Administrative Agent

       

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

       

      Section
7.02 .  Administrative Agent and
Affiliates.  The Bank of Nova Scotia shall have the same rights
and powers under this Agreement as any other Bank and may exercise or refrain
from exercising the same as though it were not the Administrative Agent, and The
Bank of Nova Scotia and its affiliates may accept deposits from, lend money to,
and generally engage in any kind of business with the Borrower or any Subsidiary
or affiliate of the Borrower as if it were not the Administrative Agent
hereunder.

       

      Section
7.03 .  Action by Administrative
Agent.  The obligations of the Administrative Agent hereunder
are only those expressly set forth herein.  Without limiting the
generality of the foregoing, the Administrative Agent shall not be required to
take any action with respect to any Default, except as expressly provided in
Article 6.

       

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

       

      
        
          
          

        

        
          46

          
            

          

        

        
          
          

        

      

      Section
7.05 .  Liability of Administrative
Agent.  Neither the Administrative Agent nor any of its
affiliates nor any of their respective directors, officers, agents, or employees
shall be liable for any action taken or not taken by it in connection herewith
(i) with the consent or at the request of the Required Banks or (ii) in the
absence of its own gross negligence or willful misconduct.  Neither
the Administrative Agent nor any of its affiliates nor any of their respective
directors, officers, agents or employees shall be responsible for or have any
duty to ascertain, inquire into or verify (i) any statement, warranty or
representation made in connection with this Agreement or any borrowing
hereunder; (ii) the performance or observance of any of the covenants or
agreements of the Borrower; (iii) the satisfaction of any condition specified in
Article 3, except receipt of items required to be delivered to the
Administrative Agent; or (iv) the validity, effectiveness or genuineness of this
Agreement, the Notes or any other instrument or writing furnished in connection
herewith.  The Administrative Agent shall not incur any liability by
acting in reliance upon any notice, consent, certificate, statement, or other
writing (which may be a bank wire, telex or similar writing) reasonably believed
by it to be genuine or to be signed by the proper party or parties.

       

      Section
7.06 .  Indemnification.  Each
Bank shall, ratably in accordance with its Commitment, indemnify the
Administrative Agent, its affiliates and their respective directors, officers,
agents and employees (to the extent not reimbursed by the Borrower) against any
cost, expense (including counsel fees and disbursements), claim, demand, loss,
damages or liability (except such as result from such indemnitee’s gross
negligence or willful misconduct) that such indemnitees may suffer or incur in
connection with this Agreement or any action taken or omitted by such
indemnitees hereunder.

       

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

       

      Section
7.08 .  Successor Administrative
Agent.  The Administrative Agent may, and for so long as long
as no Event of Default has occurred and is continuing, at the request of the
Borrower, shall, resign at any time by giving written notice thereof to the
Banks and the Borrower.  Upon any such resignation, the Borrower shall
have the right, with the consent of the Required Banks, such consent not to be
unreasonably withheld, to appoint a successor Administrative
Agent.  If no successor Administrative Agent shall have been so
appointed by the Borrower, and shall have accepted such appointment, within 15
days after the retiring Administrative Agent gives notice of resignation, then
the retiring Administrative Agent may, on behalf of the Banks, appoint a
successor 

       

      
        
          
          

        

        
          47

          
            

          

        

        
          
          

        

      

      Administrative
Agent, which shall be a commercial bank organized or licensed under the laws of
the United States of America or of any State thereof and having a combined
capital and surplus of at least $1,000,000,000.  Upon the acceptance
of its appointment as Administrative Agent hereunder by a successor
Administrative Agent, such successor Administrative Agent shall thereupon
succeed to and become vested with all the rights and duties of the retiring
Administrative Agent, and the retiring Administrative Agent shall be discharged
from its duties and obligations hereunder.  After any retiring
Administrative Agent’s resignation hereunder as Administrative Agent, the
provisions of this Article shall inure to its benefit as to any actions taken or
omitted to be taken by it while it was Administrative Agent.

       

      Section
7.09 .  Co-Documentation Agents and
Syndication Agent Not Liable.  Nothing in this Agreement shall
impose upon any Co-Documentation Agent or the Syndication Agent, each in such
capacity, any duties or responsibilities whatsoever.

       

       

                       ARTICLE
8               

       

      Change
in Circumstances

       

      Section
8.01 .  Basis for Determining Interest Rate
Inadequate or Unfair.  If on or prior to the first day of any
Interest Period for any Fixed Rate Borrowing:

       

      (a) the
Administrative Agent is advised by the Euro-Dollar Reference Banks that deposits
in dollars (in the applicable amounts) are not being offered to the Euro-Dollar
Reference Banks in the relevant market for such Interest Period, or

       

      (b) in the
case of a Committed Borrowing, Banks having 50% or more of the aggregate amount
of the Commitments advise the Administrative Agent that the Adjusted London
Interbank Offered Rate, as determined by the Administrative Agent will not
adequately and fairly reflect the cost to such Banks of funding their
Euro-Dollar Loans for such Interest Period,

       

      the
Administrative Agent shall forthwith give notice thereof to
the  Borrower and the Banks, whereupon until the Administrative Agent
notifies the Borrower that the circumstances giving rise to such suspension no
longer exist, (i) the obligations of the Banks to make Euro-Dollar Loans or to
continue or convert outstanding Loans as or into Euro-Dollar Loans shall be
suspended and (ii) each outstanding Euro-Dollar Loan shall be converted into a
Base Rate Loan on the last day of the then current Interest Period applicable
thereto.  Unless the Borrower notifies the Administrative Agent at
least two Domestic Business Days before the date of any Fixed Rate Borrowing for
which a Notice of Borrowing has previously been given that it elects not to
borrow on such date, (i) if such Fixed Rate Borrowing is a Euro-Dollar
Borrowing, such Borrowing shall instead be made as a Base Rate Borrowing and
(ii) if such Fixed Rate Borrowing is a Money Market LIBOR Borrowing, the Money
Market LIBOR Loans comprising such 

       

      
        
          
          

        

        
          48

          
            

          

        

        
          
          

        

      

      Borrowing
shall bear interest for each day from and including the first day to but
excluding the last day of the Interest Period applicable thereto at the Base
Rate for such day.

       

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

       

      Section
8.03 .  Increased Cost and Reduced
Return.  (a) If on or after
(x) the date hereof, in the case of any Committed Loan or any obligation to
make Committed Loans or (y) the date of the related Money Market Quote, in the
case of any Money Market Loan, the adoption of any applicable law, rule or
regulation, or any change therein, or any change in the interpretation or
administration thereof by any governmental authority, central bank or comparable
agency charged with the interpretation or administration thereof, or compliance
by any Bank (or its Applicable Lending Office) with any request or directive
(whether or not having the force of law) of any such authority, central bank or
comparable agency:

       

      (i) shall
subject any Bank (or its Applicable Lending Office) to any tax, duty or other
charge with respect to its Fixed Rate Loans, its Notes or its obligation to make
Fixed Rate Loans, or shall change the basis of taxation of payments to any Bank
(or its Applicable Lending Office) of the principal of or interest on its Fixed
Rate Loans or any other amounts 

       

      
        
          
          

        

        
          49

          
            

          

        

        
          
          

        

         

        due under
this Agreement in respect of its Fixed Rate Loans or its obligation to make
Fixed Rate Loans (except for changes in the rate of tax on the overall net
income of such Bank or its Applicable Lending Office imposed by the jurisdiction
in which such Bank’s principal executive office or Applicable Lending Office is
located); or

         

      

       

      (ii) shall
impose, modify or deem applicable any reserve (including, without limitation,
any such requirement imposed by the Board of Governors of the Federal Reserve
System, but excluding with respect to any Euro-Dollar Loan any such requirement
included in an applicable Euro-Dollar Reserve Percentage), special deposit,
insurance assessment or similar requirement against assets of, deposits with or
for the account of, or credit extended by, any Bank (or its Applicable Lending
Office) or shall impose on any Bank (or its Applicable Lending Office) or the
London interbank market any other condition affecting its Fixed Rate Loans, its
Notes or its obligation to make Fixed Rate Loans; and the result of any of the
foregoing is to increase the cost to such Bank (or its Applicable Lending
Office) of making or maintaining any Fixed Rate Loan, or to reduce the amount of
any sum received or receivable by such Bank (or its Applicable Lending Office)
under this Agreement or under its Note with respect thereto, by an amount deemed
by such Bank to be material, then, within 15 days after demand by such Bank
(with a copy to the Administrative Agent), the Borrower shall pay to such Bank
such additional amount or amounts as will compensate such Bank for such
increased cost or reduction (including any amount or amounts equal to any taxes
on the overall net income of such Bank payable by such Bank with respect to the
amount of payments required to be made pursuant to this Section
8.03(a)).

       

      (b) If any
Bank determines that the adoption of any applicable law, rule, regulation,
guideline or request concerning capital adequacy, or any change therein, or any
change in interpretation or administration thereof by any governmental
authority, central bank or comparable agency (including, without limitation, any
such adoption or change the effect of which would be, for purposes of capital
adequacy requirements, to treat the Commitments hereunder as not constituting
commitments with an original maturity of one year or less), occurring after the
date hereof, will have the effect of increasing the amount of capital required
or expected to be maintained by such Bank based on the existence of such Bank’s
Commitment hereunder or its obligations hereunder, it will notify the
Borrower.  This determination will be made on a Bank by Bank
basis.  The Borrower will pay to each Bank on demand such additional
amounts as are necessary to compensate for the increased cost to such Bank as a
result of the event described in the first sentence of this Section
8.03(b).  In determining such amount, such Bank will act reasonably
and in good faith and will use averaging and attribution methods which are
reasonable, and such Bank will pass such costs on to the Borrower only if such
costs are passed on in a similar manner by such Bank to similarly situated
borrowers (which are parties to credit or loan documentation containing a
provision similar to this Section 8.03(b)), as 

       

      
        
          
          

        

        
          50

          
            

          

        

        
          
          
determined
by such Bank in its reasonable discretion.  Each Bank’s determination
of compensation shall be conclusive if made in accordance with this
provision.  Each Bank, upon determining that any increased costs will
be payable pursuant to this Section 8.03(b), will give prompt written notice
thereof to the Borrower, which notice shall show the basis for calculation of
such increased costs, although the failure to give any such notice shall not
release or diminish any of the Borrower’s obligations to pay increased costs
pursuant to this Section 8.03(b).

      

       

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

       

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

       

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

       

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

       

                                     

       ARTICLE 9

       

      Miscellaneous

       

      Section
9.01 .  Notices.  (a)
All notices, requests, directions, consents, approvals and other communications
to any party hereunder shall be in writing (including bank wire, telex,
facsimile transmission or similar writing) and shall be given to such party
(subject to subparagraph (b) below):  (x) in the case of the Borrower
or the Administrative Agent, at its address or telex or telecopier number

       

      
        
          
          

        

        
          51

          
            

          

        

        
          
          
set forth
on the signature pages hereof, (y) in the case of any Bank, at its address or
telex or telecopier number set forth in its Administrative Questionnaire or (z)
in the case of any other party, such other address or telex or telecopier number
as such party may hereafter specify for the purpose by notice to the
Administrative Agent and the Borrower.  Each such notice, request,
direction, consent, approval or other communication shall be effective (i) if
given by telex, when such telex is transmitted to the telex number specified in
this Section and the appropriate answerback is received or (ii) if given by any
other means, when delivered or received at the address specified in this
Section; provided that
notices to the Administrative Agent under Article 2 or Article 8 shall not be
effective until received.

      

       

      (b) Notices
and other communications to the Banks hereunder may be delivered or furnished by
electronic communications pursuant to procedures approved by the Administrative
Agent; provided that
the foregoing shall not apply to notices pursuant to Article 2 or Article 8
unless otherwise agreed by the Administrative Agent and the applicable
Bank.  The Administrative Agent or the Borrower may, in its
discretion, agree to accept notices and other communications to it hereunder by
electronic communications pursuant to procedures approved by it; provided that approval of
such procedures may be limited to particular notices or
communications.

       

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

       

      Section
9.03 .  Expenses; Documentary Taxes;
Indemnification.  (a)
The Borrower shall pay (i) all documented reasonable out-of-pocket expenses
of the Administrative Agent, including reasonable fees and disbursements of
special counsel for the Administrative Agent, in connection with the preparation
of this Agreement, any waiver or consent hereunder or any amendment hereof or
any Default or alleged Default hereunder and (ii) if an Event of Default
occurs, all documented reasonable out-of-pocket expenses incurred by the
Administrative Agent or any Bank, including reasonable fees and disbursements
incurred by counsel or in-house counsel, in connection with such Event of
Default and collection, bankruptcy, insolvency and other enforcement proceedings
resulting therefrom.  The Borrower shall indemnify each Bank against
any transfer taxes, documentary taxes, assessments or charges made by any
governmental authority by reason of the execution and delivery of this Agreement
or the Notes and any and all liabilities with respect to or resulting from any
delay or omission (unless solely attributable to such Bank) to pay such
taxes.

       

      (b) The
Borrower agrees to indemnify each Bank, their respective affiliates and the
respective directors, officers, agents, advisors and employees of the foregoing
(each an “Indemnitee”)
and hold each Indemnitee harmless from 

       

      
        
          
          

        

        
          52

          
            

          

        

        
          
          
and
against any and all liabilities, losses, damages, costs, claims, demands and
expenses of any kind, including, without limitation, the reasonable fees and
disbursements of counsel, which may be incurred by any Indemnitee (or by the
Administrative Agent in connection with its actions as Agent hereunder) in
connection with any investigative, administrative or judicial proceeding
(whether or not such Indemnitee shall be designated a party thereto) relating to
or arising out of this Agreement or any actual or proposed use of proceeds of
Loans hereunder; provided that no Indemnitee
shall have the right to be indemnified hereunder for its own gross negligence,
willful misconduct or unlawful conduct as determined by a court of competent
jurisdiction.

      

       

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

       

      Section
9.05 .  Amendments and
Waivers.  Except as provided by Section 2.17, any provision of
this Agreement or the Notes may be amended or waived if, but only if, such
amendment or waiver is in writing and is signed by the Borrower and the Required
Banks (and, if the rights or duties of the Administrative Agent are affected
thereby, by the Administrative Agent); provided that, no such
amendment or waiver shall (i) increase or decrease the Commitment of any Bank
(except for a ratable decrease in the Commitments of all Banks) or subject any
Bank to any additional obligation without the written consent of such Bank, (ii)
reduce the principal of or rate of interest on any Loan or any fees hereunder
without the written consent of each Bank directly affected thereby, (iii)
postpone the date fixed for any payment of principal of or interest on any Loan
or any fees hereunder or for any reduction or termination of any Commitment
without the written consent of each Bank directly affected thereby, (iv) change
the percentage of the Commitments (other than in connection with any increase in
Commitments pursuant to Section 2.17) or of the aggregate unpaid principal
amount of the Notes without the written consent of each Bank directly affected
thereby or (v) change any of the provisions of this Section 9.05 or the
definition of “Required Banks” or 

       

      
        
          
          

        

        
          53

          
            

          

        

        
          
          
any other
provision hereof specifying the number or percentage of Banks required to waive,
amend or modify any rights hereunder, make any determination or grant any
consent hereunder or take any other action under any provision of this Agreement
without the written consent of each Bank.

      

       

      Section
9.06 .  Successors and
Assigns.  (a)
The provisions of this Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns,
except that the Borrower may not assign or otherwise transfer any of its rights
under this Agreement without the prior written consent of all
Banks.

       

      (b) Any Bank
may at any time grant to one or more affiliates of such Bank, banks or other
institutions (each a “Participant”) participating
interests in its Commitment or any or all of its Loans.  In the event
of any such grant by a Bank of a participating interest to a Participant,
whether or not upon notice to the Borrower and the Administrative Agent, such
Bank shall remain responsible for the performance of its obligations hereunder,
and the Borrower and the Administrative Agent shall continue to deal solely and
directly with such Bank in connection with such Bank’s rights and obligations
under this Agreement.  Any agreement pursuant to which any Bank may
grant such a participating interest shall provide that such Bank shall retain
the sole right and responsibility to enforce the obligations of the Borrower
hereunder including, without limitation, the right to approve any amendment,
modification or waiver of any provision of this Agreement; provided that such
participation agreement may provide that such Bank will not agree to any
modification, amendment or waiver of this Agreement described in clause (i),
(ii) or (iii) of Section 9.05 without the consent of the
Participant.  Subject to the provisions of subsection (e), the
Borrower agrees that each Participant shall, to the extent provided in its
participation agreement, be entitled to the benefits, and be bound by the
obligations, of Article 8 with respect to its participating
interest.  An assignment or other transfer which is not permitted by
subsection (c) or (d) below shall be given effect for purposes of this Agreement
only to the extent of a participating interest granted in accordance with this
subsection (b).

       

      (c) Any Bank
may at any time assign to one or more banks or other institutions (each an
“Assignee”) all, or a
proportionate part (but not in any case in an amount less than $10,000,000,
unless (x) such Assignee is another Bank or an affiliate of such transferor Bank
or (y) such assignment is for all of such transferor Bank’s rights and
obligations under this Agreement and the Notes) of all of its rights and
obligations under this Agreement and the Notes, and such Assignee shall assume
such rights and obligations, pursuant to an Assignment and Assumption Agreement
in substantially the form of Exhibit H hereto executed by such Assignee and such
transferor Bank, with (and subject to) the subscribed consent of the Borrower
and the Administrative Agent, such consents not to be unreasonably withheld;
provided that (i) if an
Assignee is another Bank or an affiliate of such transferor Bank, or (ii) in the
case of an assignment by any Bank to one or more Assignees after the occurrence
and during the continuance of an Event of Default, no such consent of the
Borrower shall be required; and provided 

       

      
        
          
          

        

        
          54

          
            

          

        

        
          
          
further that such assignment
may, but need not, include the rights of the transferor Bank in respect of
outstanding Money Market Loans.  Upon execution and delivery of such
an instrument and payment by such Assignee to such transferor Bank of an amount
equal to the purchase price agreed between such transferor Bank and such
Assignee, such Assignee shall be a Bank party to this Agreement and shall have
all the rights and obligations of a Bank with a Commitment as set forth in such
instrument of assumption, and the transferor Bank shall be released from its
obligations hereunder to a corresponding extent, and no further consent or
action by any party shall be required.  Upon the consummation of any
assignment pursuant to this subsection (c), the transferor Bank, the
Administrative Agent and the Borrower shall make appropriate arrangements so
that, if required, a new Note is issued to the Assignee.  In
connection with any such assignment, the transferor Bank shall pay to the
Administrative Agent an administrative fee for processing such assignment in the
amount of $3,500.  If the Assignee is not incorporated under the laws
of the United States of America or a state thereof, it shall, prior to the first
date on which interest or fees are payable hereunder for its account, deliver to
the Borrower and the Administrative Agent certification as to exemption from
deduction or withholding of any United States federal income taxes in accordance
with Section 2.16.

      

       

      (d) Any Bank
may at any time assign all or any portion of its rights under this Agreement and
its Note to a Federal Reserve Bank.  No such assignment shall release
the transferor Bank from its obligations hereunder.

       

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

       

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

       

      Section
9.08 .  Governing Law.  (a)
This Agreement and each Note shall be governed by and construed in accordance
with the laws of the State of New York.

       

      (b) The
Borrower hereby irrevocably and unconditionally submits, for itself and its
property, to the nonexclusive jurisdiction of the Supreme Court of the State of
New York sitting in New York County and of the United States District Court of
the Southern District of New York, and any appellate court from any thereof, in
any action or proceeding arising out of or relating to this Agreement, or for
recognition or enforcement of any judgment, and each of the parties hereto
hereby irrevocably and unconditionally agrees that all claims in respect of any
such action or proceeding may be heard and determined in such 

       

      
        
          
          

        

        
          55

          
            

          

        

        
          
          
New York
State or, to the extent permitted by law, in such Federal court.  Each
of the parties hereto agrees, to the fullest extent permitted by law, that a
final judgment in any such action or proceeding shall be conclusive and may be
enforced in other jurisdictions by suit on the judgment or in any other manner
provided by law.  Nothing in this Agreement shall affect any right
that the Administrative Agent or any Bank may otherwise have to bring any action
or proceeding relating to this Agreement against the Borrower or its properties
in the courts of any jurisdiction.

      

       

      (c) The
Borrower hereby irrevocably and unconditionally waives, to the fullest extent it
may legally and effectively do so, any objection which it may now or hereafter
have to the laying of venue of any suit, action or proceeding arising out of or
relating to this Agreement in any court referred to in paragraph (b) of this
Section.  Each of the parties hereto hereby irrevocably waives, to the
fullest extent permitted by law, the defense of an inconvenient forum to the
maintenance of such action or proceeding in any such court.

       

      (d) Each
party to this Agreement irrevocably consents to service of process in the manner
provided for notices in Section 9.01.  Nothing in this Agreement will
affect the right of any party to this Agreement to serve process in any other
manner permitted by law.

       

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

       

      Section
9.10 .  Several
Obligations.  The obligations of the Banks hereunder are
several.  Neither the failure of any Bank to carry out its obligations
hereunder nor of this Agreement to be duly authorized, executed and delivery by
any Bank shall relieve any other Bank of its obligations hereunder (or affect
the rights hereunder of such other Bank).  No Bank shall be
responsible for the obligations of, or any action taken or omitted by, any other
Bank hereunder.

       

      Section
9.11 .  Severability.  In
case any provision in or obligation under this Agreement shall be invalid,
illegal or unenforceable in any jurisdiction, the validity, legality and
enforceability of the remaining provisions or obligations, or of such provision
or obligation in any other jurisdiction, shall not in any way be affected or
impaired thereby.

       

      Section
9.12 .  Confidentiality.  The
Administrative Agent and each Bank represent that they will maintain the
confidentiality of any written or oral information provided by or on behalf of
the Borrower (hereinafter collectively called “Confidential Information”),
subject to the Administrative Agent’s and each Bank’s (a) obligation to disclose any such
Confidential Information pursuant to a request or order under applicable laws or
regulations or from a regulatory 

       

      
        
          
          

        

        
          56

          
            

          

        

        
          
          
authority
or pursuant to a subpoena or other legal process, (b) right to disclose any
such Confidential Information to its bank examiners, auditors, counsel and other
professional advisors, and its employees, officers and directors, and to other
Banks (it being understood that such Persons shall be informed of the
confidential nature of such information and instructed to keep it
confidential), (c) right to disclose any such Confidential Information in
connection with any litigation or dispute involving the Banks and the Borrower
or any of its Subsidiaries and affiliates, (d) right to provide such
information to Participants, prospective Participants to which sales of
participating interests are permitted pursuant to Section 9.06(b) and
prospective Assignees to which assignments of interests are permitted pursuant
to Section 9.06(c) if such Participant, prospective Participant or prospective
Assignee agrees in writing to maintain the confidentiality of such information
on terms substantially similar to those of this Section as if it were a “Bank”
party hereto, and (e) right to disclose Confidential Information to its
affiliates if such affiliate agrees in writing to maintain the confidentiality
of such information on terms substantially similar to those of this
Section.  Notwithstanding the foregoing, any such information supplied
to a Bank, Participant, prospective Participant or prospective Assignee under
this Agreement shall cease to be Confidential Information if it is or becomes
known to such Person by other than unauthorized disclosure, or if it becomes a
matter of public knowledge other than as a result of a breach of this Section by
such Person.

      

       

      Section
9.13 .  WAIVER OF JURY
TRIAL.  EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL
RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO
THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

       

      Section
9.14 . USA Patriot Act.  Each Bank hereby
notifies the Borrower that pursuant to the requirements of the USA PATRIOT Act
(Title III of Pub. L 107-56 (signed into law October 26, 2001)) (the “Act”), it is required to
obtain, verify and record information that identifies the Borrower, which
information includes the name and address of the Borrower and other information
that will allow such Bank to identify the Borrower in accordance with the
Act.     

       

      

       

      [remainder
of page intentionally left blank]

       

      

      
        
          
          

        

        
          57

          
            

          

        

        
          
          

        

      

       

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

       

      
        
          	
                  NATIONAL
      RURAL UTILITIES COOPERATIVE FINANCE CORPORATION,

                
	
                  By

                	
                  /s/
      STEVEN L. LILLY

                
	 
      	
                  Name:
      Steven L. Lilly

                
	 
      	
                  Title: Senior
      Vice President, Chief Financial Officer and Assistant
      Secretary-Treasurer

                
	 
      	
                  Address:
      2201 Cooperative Way Herndon, Virginia 20171

                
	 
      	
                  Attention:
      Steven L. Lilly

                
	 
      	
                  Title:
      Senior Vice President, Chief Financial Officer and Assistant
      Secretary-Treasurer

                
	 
      	
                  Telephone
      No.: (703) 709-6718

                
	 
      	
                  Telephone
      No.: (703) 709-6718

                

        

      

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                THE
      BANK OF NOVA SCOTIA

              
	
                By:

              	
                /s/
      THANE RATTEW

              
	
                Name:Thane
      Rattew

              
	
                Title:Managing
      Director

                 

              

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	 
      	
                THE
      ROYAL BANK OF SCOTLAND PLC, as Syndication Agent and as a
    Bank

              
	 
      	
                By:

              	
                /s/
      EMILY FREEDMAN

              
	 
      	
                Name:Emily
      Freedman

              
	 
      	
                Title:Vice
      President

              

      

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
 

      
        	 
      	
                LBS LOAN FINANCE, LLC. as a
      Bank

              
	 
      	
                By:

              	
                /s/
      IRJA R. OTSA

              
	 
      	
                Name:
      Irja R
      Otsa

              
	 
      	
                Title:Associate
      Director

              

      

      
 

      

      
        	 
      	 
      
	 
      	
                By:

              	
                /s/
      MARY E. EVANS

              
	 
      	
                Name:Mary
      E. Evans

              
	 
      	
                Title:Associate
      Director

              

      

      

       

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	 
      	
                DEUTSCHE
      BANK SECURJTIES INC, as Co-Documentation Agent

              
	 
      	
                By:

              	
                /s/
      MARCUS TARKINGTON

              
	 
      	
                Name:Marcus
      Tarkington

              
	 
      	
                Title:Director

              

      

      

       

      

      

      
        	 
      	 
      
	 
      	
                By:

              	
                /s/
      RAINER MEIER

              
	 
      	
                Name:Rainer
    Meier

              
	 
      	
                Title:Vice
    President

              

      

       

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	 
      	
                DEUTSCHE
      BANK AG NEW YORK

                BRANCH

              
	 
      	
                By:

              	
                /s/
      MARCUS TARKINGTON

              
	 
      	
                Name:Marcus
      Tarkington

              
	 
      	
                Title:Director

              

      

      

       

      

      

      
        	 
      	 
      
	 
      	
                By:

              	
                /s/
      RAINER MEIER

              
	 
      	
                Name:Rainer
    Meier

              
	 
      	
                Title:Vice
    President

              

      

       

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	 
      	
                THE
      BANK OF TOKYO-MITSUBISHI UFJ, LTD., NEW YORK BRANCH

              
	 
      	
                By:

              	
                /s/
      NICHOLAS R. BATTISTA

              
	 
      	
                Name:Nicholas
      R. Battista

              
	 
      	
                Title:Authorized
      Signatory

              

      

       

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	 
      	
                KEYBANK
      NATIONAL

                ASSOCIATION

              
	 
      	
                By:

              	
                /s/
      SHERRIE I. MANSON

              
	 
      	
                Name:Sherrie
      I. Manson

              
	 
      	
                Title:Senior
      Vice President

              

      

       

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	 
      	 
      
	 
      	
                By:

              	
                /s/
      JANINE SHUGAN

              
	 
      	
                Name:Janine
      Shugan

              
	 
      	
                Title:Authorized
      Signatory

              

      

       

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	 
      	
                JPMorgan
      Chase Bank, N.A.

              
	 
      	
                By:

              	
                /s/
      MICHEAL DEFORGE

              
	 
      	
                Name:Micheal
      DeForge

              
	 
      	
                Title:Executive
      Director

              

      

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
 

      
        	 
      	
                MERRILL
      LYNCH BANK USA

              
	 
      	
                By:

              	
                /s/
      DEREK BEFUS

              
	 
      	
                Name:
      Derek Befus

              
	 
      	
                Title:Vice
      President

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	 
      	
                HSBC
      BANK (USA). N.A.

              
	 
      	
                By:

              	
                /s/
      VINCE CLARK

              
	 
      	
                Name:
      Vince Clark

              
	 
      	
                Title:Senior
      Vice President

              

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	 
      	 
      
	 
      	
                By:

              	
                /s/
      RAYMOND VENTURA

              
	 
      	
                Name:
      Raymond
      Ventura

              
	 
      	
                Title:Deputy
      General Manager

              

      

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        

        
          	 
      	 
      
	 
      	
                  By:

                	
                  /s/
      ERIC COSGROVE

                
	 
      	
                  Name:
      Eric Cosgrove

                
	 
      	
                  Title:Assistant
      Vice President U.S. Bank,
N.A.

                

        

      

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	 
      	
                SUNTRUST
      BANK

              
	 
      	
                By:

              	
                /s/
      YANN PIRIO

              
	 
      	
                Name:
      Yann Pirio

              
	 
      	
                Title:Director

              

      

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
 

      
        	 
      	
                PNC
      BANK N.A.

              
	 
      	
                By:

              	
                /s/
      JOHN BERRY

              
	 
      	
                Name:
      John Berry

              
	 
      	
                Title:Vice
      President

              

      

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
 

      
        	 
      	
                COMERICA
      BANK

              
	 
      	
                By:

              	
                /s/
      RICK HAMPSON

              
	 
      	
                Name:
      Rick Hampson

              
	 
      	
                Title:Group
      Manager, SVP

              

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      

      

      AGENT
SCHEDULE

      

      
        	
                Institution

              	
                Title

              
	
                The
      Bank of Nova Scotia

              	
                Administrative
      Agent

              
	
                The
      Royal Bank of Scotland plc

              	
                Syndication
      Agent

              
	
                The
      Bank of Tokyo-Mitsubishi UFJ, LTD., New York Branch

              	
                Co-Documentation
      Agent

              
	
                Deutsche
      Bank Securities Inc.

              	
                Co-Documentation
      Agent

              
	
                UBS
      Loan Finance LLC

              	
                Co-Documentation
      Agent

              

      

       

      
 

      
        
          
          

        

        
          Ex.A-1

          
            

          

        

        
          
          

        

      

      COMMITMENT
SCHEDULE

       

      

      
        	
                Institution

              	
                Commitment

              
	
                The
      Bank of Nova Scotia

              	
                $200,000,000

              
	
                The
      Royal Bank of Scotland

              	
                $183,630,000

              
	
                Deutsche
      Bank Securities Inc.

              	
                $125,000,000

              
	
                UBS
      Loan Finance LLC

              	
                $125,000,000

              
	
                The
      Bank of Tokyo-Mitsubishi UFJ, LTD.

              	
                $110,000,000

              
	
                KeyBank
      National Association

              	
                $110,000,000

              
	
                Lehman
      Brothers Bank, FSB

              	
                $105,000,000

              
	
                JPMorgan
      Chase Bank, N.A.

              	
                $100,000,000

              
	
                Merrill
      Lynch Bank USA

              	
                $90,500,000

              
	
                HSBC
      Bank USA, National Association

              	
                $77,500,000

              
	
                Mizuho
      Corporate Bank, Ltd.

              	
                $75,000,000

              
	
                U.S.
      Bank National Association

              	
                $75,000,000

              
	
                SunTrust
      Bank

              	
                $50,000,000

              
	
                PNC
      Bank, National Association

              	
                $42,750,000

              
	
                Comerica
      Bank

              	
                $30,620,000

              
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	
                $1,500,000,000

              
	 
      	 
      

      

      

      

      
        
          
          

        

        
          Ex.A-2

          
            

          

        

        
          
          

        

      

      

      PRICING
SCHEDULE

       

      The
“LIBOR Margin” and the
“Facility Fee Rate” for
the Borrower at any date are the respective percentages set forth below in the
applicable row and column based upon the Status of the Borrower that exists on
such date.

       

      
        
          	
                  Status

                	
                  Level
      I

                	
                  Level
      II

                	
                  Level
      III

                	
                  Level
      IV

                	
                  Level
      V

                	
                  Level
      VI

                	
                  Level
      VII

                
	
                  LIBOR
      Margin:

                	
                  0.145%

                	
                  0.160%

                	
                  0.200%

                	
                  0.240%

                	
                  0.330%

                	
                  0.410%

                	
                  0.625%

                
	
                  Facility
      Fee Rate:

                	
                  0.030%

                	
                  0.040%

                	
                  0.050%

                	
                  0.060%

                	
                  0.070%

                	
                  0.090%

                	
                  0.125%

                

        

      

       

       

      For
purposes of this Pricing Schedule, the following terms have the following
meanings, subject to the concluding paragraph of this Pricing
Schedule:

       

      “Fitch” means Fitch Ratings
Ltd.

       

      “Level I Status” exists at any
date if, at such date, the Borrower’s senior unsecured long-term debt is rated
AA- or higher by S&P or Aa3 or higher by Moody’s or AA- or higher by
Fitch.

       

      “Level II Status” exists at any
date if, at such date, (i) the Borrower’s senior unsecured long-term debt is
rated A+ or higher by S&P or A1 or higher by Moody’s or A+ or higher by
Fitch, and (ii) Level I Status does not exist.

       

      “Level III Status” exists at
any date if, at such date, (i) the Borrower’s senior unsecured long-term debt is
rated A or higher by S&P or A2 or higher by Moody’s or A or higher by Fitch,
and (ii) Level II Status does not exist.

       

      “Level IV Status” exists at any
date if, at such date, (i) the Borrower’s senior unsecured long-term debt is
rated A- or higher by S&P or A3 or higher by Moody’s or A- or higher by
Fitch, and (ii) Level III Status does not exist.

       

      “Level V Status” exists at any
date if, at such date, (i) the Borrower’s senior unsecured long-term debt is
rated BBB+ or higher by S&P or Baa1 or higher by Moody’s or BBB+ or higher
by Fitch, and (ii) Level IV Status does not exist.

       

      “Level VI Status” exists at any
date if, at such date, (i) the Borrower’s senior unsecured long-term debt is
rated BBB or higher by S&P or Baa2 or higher by Moody’s or BBB or higher by
Fitch, and (ii) Level V Status does not exist.

       

      “Level VII Status” exists at
any date if, at such date, no other Status applies.

       

      
        
          
          

        

        
          Ex.A-3

          
            

          

        

        
          
          

        

      

       

      “Moody’s” means Moody’s
Investors Services, Inc.

       

      “Rating Agencies” means each of
S&P, Moody’s and Fitch.

       

      “S&P” means Standard &
Poor’s Rating Services.

       

      “Status” refers to the
determination of which of Level I Status, Level II Status, Level III Status,
Level IV Status, Level V Status, Level VI or Level VII Status exists at any
date.

       

      The
credit ratings to be utilized for purposes of this Pricing Schedule are those
assigned to the senior unsecured long-term debt securities of the
Borrower  without third-party credit enhancement (the “Borrower’s Unsecured Long-Term
Debt”), and any ratings assigned to any other debt security of the
Borrower shall be disregarded; provided that if at any date
there is no such rating assigned by a particular Rating Agency, such Rating
Agency’s rating of the Borrower’s Unsecured Long-Term Debt shall be deemed to be
one notch below such Rating Agency’s rating of the senior secured debt of the
Borrower at such date.  If two of the three Rating Agencies have
assigned the same rating to the Borrower’s Unsecured Long-Term Debt (after
giving effect to the proviso in the first sentence of this paragraph) and the
third rating agency has assigned a different rating, the rating of the third
Rating Agency shall be disregarded (e.g., A/A2/A+ results in
Level III Status).  If each Rating Agency has assigned to the
Borrower’s Unsecured Long-Term Debt a different rating, the intermediate rating
shall be used (e.g.,
A/Baa1/BBB results in Level V Status).

       

      
        
          
          

        

        
          Ex.A-4

          
            

          

        

        
          
          

        

      

      SCHEDULE
5.03(a)

       

      NON-GAAP
SUBSIDIARIES

       

      

      
        	
                a.  

              	
                Denton
      Realty Holdings, LLC, organized in the State of Delaware. Borrower owns
      100% of the membership interests.

              

      

      

      
        	
                b.  

              	
                Denton
      Realty Investors, LLC, organized in the State of Delaware. Borrower owns
      100% of the membership interests.

              

      

      

      
        	
                c.  

              	
                Denton
      Realty Partners, LP, organized in the State of Delaware. Denton Realty
      Holdings, LLC is the general partner and owns 0.5% of the partnership
      interests, and Denton Realty Investors, LLC is the limited partner and
      owns 99.5% of the partnership
interests.

              

      

      

      
        	
                d.  

              	
                CFC
      Advantage, LLC, organized in the State of Delaware. Borrower owns 100% of
      the membership interests.

              

      

       

      
        
          
          

        

        
          Ex.A-5

          
            

          

        

        
          
          

        

      

      EXHIBIT
A

       

      FORM OF
NOTE

       

      New York,
New York                                                                                         [DATE]

       

      For value
received, National Rural Utilities Cooperative Finance Corporation, a
not-for-profit cooperative association incorporated under the laws of the
District of Columbia (the “Borrower”), promises to pay to
the order of (the “Bank”), for the account of its
Applicable Lending Office, the unpaid principal amount of each Loan made by the
Bank to the Borrower pursuant to the Revolving Credit Agreement referred to
below on the Maturity Date with respect to such Loan.  The Borrower
promises to pay interest on the unpaid principal amount of each such Loan on the
dates and at the rate or rates provided for in the Revolving Credit
Agreement.  All such payments of principal and interest shall be made
in lawful money of the United States in Federal or other immediately available
funds at the office of The Bank of Nova Scotia, c/o GWS Loan Operations, 720
King Street West, 2nd Floor,
Toronto, Ontario, M5V 2T3, Attn: NYA Loan Operations.

       

      All Loans
made by the Bank, the respective types and maturities thereof and all repayments
of the principal thereof shall be recorded by the Bank and, prior to any
transfer hereof, appropriate notations to evidence the foregoing information
with respect to each such Loan then outstanding may be endorsed by the Bank on
the schedule attached hereto, or on a continuation of such schedule attached to
and made a part hereof; provided that the failure of
the Bank to make any such recordation or endorsement shall not affect the
obligations of the Borrower hereunder or under the Revolving Credit
Agreement.

       

      This note
is one of the Notes referred to in the 364-Day Revolving Credit Agreement dated
as of March 14, 2008, among the Borrower, the Banks listed on the signature
pages thereof, Deutsche Bank Securities Inc., UBS Loan Finance LLC and The Bank
of Tokyo-Mitsubishi UFJ, LTD., New York Branch, as Co-Documentation Agents, The
Royal Bank of Scotland plc, as Syndication Agent, and The Bank of Nova Scotia,
as Administrative Agent (as the same may be amended from time to time, the
“Revolving Credit
Agreement”).  Terms defined in the Revolving Credit Agreement
are used herein with the same meanings.  Reference is made to the
Revolving Credit Agreement for provisions for the prepayment hereof and the
acceleration of the maturity hereof.

       

      
        	
                NATIONAL
      RURAL UTILITIES COOPERATIVE FINANCE CORPORATION

              
	
                By:

              	 
      
	
                Name:

              
	
                Title:

              

      

       

      
        
          
          

        

        
          Ex.A-1

          
            

          

        

        
          
          

        

      

      Note
(cont’d)

      

      

      LOANS AND
PAYMENTS OF PRINCIPAL

      

      
        
          	
                  Date

                	
                  Amount
      of Loan

                	
                  Type
      of Loan

                	
                  Amount
      of Principal Repaid

                	
                  Maturity
      Date

                	
                  Notation
      Made By

                
	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      

        

      

       

       

      
        
          
          

        

        
          Ex.A-2

          
            

          

        

        
          
          

        

      

      EXHIBIT
B-1

       

      FORM OF RUS
GUARANTEE

      

      The
United States of America acting through the Administrator of the Rural Utilities
Service (“RUS”) hereby
unconditionally guarantees to [name of Payee] the making of [__%] of the
payments of principal and interest when and as due on this Note of _________
(the “Cooperative”) in
accordance with the terms hereof and of the Loan Agreement referred to in this
Note, until such principal and interest shall be indefeasibly paid in full
(which includes interest accruing on such principal between the date of default
under this Note and the payment in full of this Guarantee), irrespective of
receipt by RUS of any sums or property from its enforcement of its remedies for
the Cooperative default.  This Guarantee shall be incontestable except
for fraud or misrepresentation of which the holder had actual knowledge at the
time it became a holder.  RUS hereby waives diligence, presentment,
demand, protest and notice of any kind, as well as any requirement that [name of
Payee] exhaust any right or take any action against the
Cooperative.

       

      This
Guarantee is issued pursuant to Title III of the Rural Electrification Act of
1936, as amended (7 U.S.C. '' 901,
et seq.), and the Loan Guarantee
and Servicing Agreement among RUS, the Cooperative, Bank One, NA and National
Rural Utilities Cooperative Finance Corporation dated ___________,
____.

       

      
        	 
      	
                UNITED
      STATES OF AMERICA

              
	
                Date________________,
      ___

              	
                By:

              	 
      
	 
      	
                Name:

              
	 
      	
                Title:Administrator
      of Rural

                Electrification
      Administration

              

      

      

      
        
          
          

        

        
          Ex.B-1

          
            

          

        

        
          
          

        

      

      EXHIBIT
B-2

       

      FORM OF RUS
GUARANTEE

      

      The
United States of America acting through the Administrator of the Rural Utilities
Service (“RUS”) hereby
unconditionally guarantees to the Payee the making of the payments of principal
and Guaranteed Interest when and as due on the Note of _______________ (the
“Cooperative”) dated
_____ in the original principal amount of $ _____ (the “Note”), in accordance with the
terms thereof and of the Loan Agreement and the Master Loan Guarantee and
Servicing Agreement referred to in the Note, until such principal and Guaranteed
Interest shall be indefeasibly paid in full (which includes interest accruing at
the Guaranteed Interest Rate between the date of default under the Note and the
payment in full of this Guarantee), irrespective of receipt by RUS of any sums
or property from its enforcement of its remedies for the Cooperative’s
default.  This Guarantee shall be incontestable except for fraud or
misrepresentation of which the holder had actual knowledge at the time it became
a holder.  RUS hereby waives diligence, presentment, demand, protest
and notice of any kind (except the “Default Notice” required pursuant to Section
5.3(a) of the Master Loan Guarantee and Servicing Agreement), and acknowledges
that the Payee does not have any right or obligation to exercise any right or
take any action against the Cooperative.

       

      This
Guarantee is issued pursuant to the Rural Electrification Act of 1936, as
amended (7 U.S.C. ''
901, et seq.) (the “Act”), and the Master Loan
Guarantee and Servicing Agreement between RUS and National Rural Utilities
Cooperative Finance Corporation dated as of February 16, 1999.

       

      THIS
GUARANTEE SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH,
THE LAWS OF THE UNITED STATES OF AMERICA, TO THE EXTENT APPLICABLE, AND
OTHERWISE THE LAWS OF THE COMMONWEALTH OF VIRGINIA.

       

      THE
UNDERSIGNED, AS [ADMINISTRATOR] OF RUS, DOES HEREBY CERTIFY THAT I AM AUTHORIZED
UNDER THE ACT AND 7 CFR PART 1700 TO DELIVER THIS GUARANTEE.

       

      
        	
                UNITED
      STATES OF AMERICA

              
	
                By:

              	 
      
	
                Name:

              
	
                Title:[Administrator]
      of the Rural Utilities Service

              

      

      
        	
                Dated:__________________

              	
                RUS
      Loan No_______________________

              	 

      

      

      
        
          
          

        

        
          Ex.B-2

          
            

          

        

        
          
          

        

      

      EXHIBIT
C

       

      FORM OF MONEY MARKET QUOTE
REQUEST

      

      [Date]

      
        	
                To:

              	
                The
      Bank of Nova Scotia (the “Administrative
      Agent”)

              

      

       

      
        	
                From:

              	
                National
      Rural Utilities Cooperative Finance Corporation (the “Borrower”)

              

      

       

      
        	
                Re:

              	
                364-Day
      Revolving Credit Agreement dated as of March 14, 2008, among the Borrower,
      the Banks listed on the signature pages thereof, Deutsche Bank Securities
      Inc., UBS Loan Finance LLC and The Bank of Tokyo-Mitsubishi UFJ, LTD., New
      York Branch, as Co-Documentation Agents, The Royal Bank of Scotland plc,
      as Syndication Agent, and The Bank of Nova Scotia, as Administrative Agent
      (the “Revolving Credit
      Agreement”)

              

      

       

      We hereby
give notice pursuant to Section 2.03 of the Revolving Credit Agreement that we
request Money Market Quotes for the following proposed Money Market
Borrowing(s):

       

      Date of
Borrowing:  __________________

       

      Principal Amount1                                                                Interest Period2

      $

       

      Such
Money Market Quotes should offer a Money Market [Margin] [Absolute
Rate].  [The applicable base rate is the London Interbank Offered
Rate.]

       

      Terms
used herein have the meanings assigned to them in the Revolving Credit
Agreement.

       

      
        
          	
                  NATIONAL
      RURAL UTILITIES 

                     COOPERATIVE
      FINANCE 

                     CORPORATION

                
	
                  By:

                	 
      
	
                  Name:

                
	
                  Title:

                

        

      

          

        

      

      
        1   Amount
must be $10,000,000 or a larger multiple of $1,000,000.  

      

      
        2   Any
number of whole months (but not less than one month) (LIBOR Auction) or not less
than 30 days (Absolute Rate Auction), subject to the provisions of the
definition of Interest Period.

         

        
          
            
            

          

          
            Ex.C-1

            
              

            

          

          
            
            

          

        

      

      EXHIBIT
D

       

      FORM OF INVITATION FOR MONEY
MARKET QUOTES

      

      [Date]

      
        	
                To:

              	
                [Name
      of Bank]

              

      

       

      
        	
                Re:

              	
                Invitation
      for Money Market Quotes to the National Rural Utilities Cooperative
      Finance Corporation (the “Borrower”)

              

      

       

      Pursuant to Section 2.03 of the 364-Day
Revolving Credit Agreement dated as of March 14, 2008, among the Borrower, the
Banks listed on the signature pages thereof, Deutsche Bank Securities Inc., UBS
Loan Finance LLC and The Bank of Tokyo-Mitsubishi UFJ, LTD., New York Branch, as
Co-Documentation Agents, The Royal Bank of Scotland plc, as Syndication Agent,
and The Bank of Nova Scotia, as Administrative Agent (the “Revolving Credit
Agreement”):

       

      
        	
                 
      

              	
                Date
      of
Borrowing:  __________________

              

      

       

      
        	
                 
      

              	
                Principal
      Amount

              	
                Interest
      Period

              

      

      $

      

      Such
Money Market Quotes should offer a Money Market [Margin] [Absolute Rate]. [The
applicable base rate is the London Interbank Offered Rate.]

       

      Please
respond to this invitation by no later than 9:30 A.M. (New York City time) on
[date].

       

      
        	
                The
      Bank of Nova Scotia

              
	
                By:

              	 
      
	
                Name:

              
	
                Title:Authorized
      Officer

              

      

      

      
        
          
          

        

        
          Ex.D-1

          
            

          

        

        
          
          

        

      

      EXHIBIT
E

       

      FORM OF MONEY MARKET
QUOTE

      

      [Date]

      
        	
                 
      

                  The
      Bank of Nova Scotia,

                

              	
              

      

      
        	
                 
      

              	
                as
      Administrative Agent

              

      

      c/o GWS
Loan Operations

      720 King
Street West, 2nd
Floor

      Toronto,
Ontario  M5V 2T3

      Attn: NYA
Loan Operations

      

      Attention:

      

      
        	
                Re:

              	
                Money
      Market Quote to National Rural Utilities Cooperative Finance
      Corporation (the “Borrower”)

              

      

       

      
      

       

      In
response to your invitation on behalf of the Borrower dated _____________, 200_,
we hereby make the following Money Market Quote on the following
terms:

       

      
        	
                1.

              	
                Quoting
      Bank:  ________________________________

              

      

       

      
        	
                2.

              	
                Person
      to contact at Quoting
      Bank:  _____________________________

              

      

       

      
        	
                3.

              	
                Date
      of Borrowing: ____________________*

              

      

       

      
        	
                4.

              	
                We
      hereby offer to make Money Market Loan(s) in the following principal
      amounts, for the following Interest Periods and at the following
      rates:

              

      

      

        

      

      
        
          * As
specified in the related Invitation.

        

      

       

      
        
          
          

        

        
          Ex.E-1

          
            

          

        

        
          
          

        

      

       

      
        	
                Principal
      Amount*

              	
                Interest
      Period**

              	
                Money
      Market [Margin***]

              	
                [Absolute
      Rate****]

              
	
                $

              	 
      	 
      	 
      
	
                $

              	 
      	 
      	 
      
	 
      	 
      	 
      	 
      

      

      [provided, that the aggregate
principal amount of Money Market Loans for which the above offers may be
accepted shall not exceed $____________.]**

       

      We
understand and agree that the offer[s] set forth above [is][are] subject to the
satisfaction of the applicable conditions set forth in the 364-Day Revolving
Credit Agreement dated as of March 14, 2008, among the Borrower, the Banks
listed on the signature pages thereof, Deutsche Bank Securities Inc., UBS Loan
Finance LLC and The Bank of Tokyo-Mitsubishi UFJ, LTD., New York Branch, as
Co-Documentation Agents, The Royal Bank of Scotland plc, as Syndication Agent,
and The Bank of Nova Scotia, as Administrative Agent.

       

      
        	 	
                Very
      truly yours,

                [NAME
      OF BANK]

              
	 	
                By:
      __________________________________

              
	 	
                Name:

              
	 	
                Title:Authorized
      Officer

              

      

      

      Dated:
_______________

       

       

      _____________________________  

      
        **
Principal amount bid for each Interest Period may not exceed principal amount
requested. Specify aggregate limitation if the sum of the individual offers
exceeds the amount the Bank is willing to lend.  Bids must be made for
$1,000,000 or a larger multiple thereof.

      

        
        *** Any
number of whole months (but not less than one month) or not less than 30 days,
as specified in the related Invitation.  No more than five bids are
permitted for each Interest Period.

      

        
        ****
Margin over or under the London Interbank Offered Rate determined for the
applicable Interest Period.  Specify percentage (rounded to the
nearest 1/10,000 of 1%) and specify whether “PLUS” or “MINUS”.

      

        
        *****
Specify rate of interest per annum (rounded to the nearest 1/10,000th of
1%).

      

       

      
        
          
          

        

        
          Ex.E-2

          
            

          

        

        
          
          

        

      

      EXHIBIT
F

       

      OPINION OF GENERAL COUNSEL
OF THE BORROWER

      

      March 14,
2008

      

      To the
Administrative Agent and each of the Bank parties

       to
the Revolving Credit Agreement referred to below

      c/o The
Bank of Nova Scotia

      One
Liberty Plaza

      New York,
New York 10006

      

      Ladies
and Gentlemen:

      

      I,
Roberta B. Aronson, Acting General Counsel of the National Rural Utilities
Cooperative Finance Corporation (the “Borrower”), am delivering this
opinion pursuant to the Revolving Credit Agreement (the “Agreement”) dated as of March
14, 2008 among the Borrower, the Banks listed on the signature pages thereof,
Deutsche Bank Securities Inc., UBS Loan Finance LLC, and The Bank of
Tokyo-Mitsubishi UFJ, Ltd., New York Branch, as Co-Documentation Agents, The
Royal Bank of Scotland plc, as Syndication Agent, and The Bank of Nova Scotia,
as Administrative Agent.  Terms defined in the Agreement are used
herein as therein defined.  This opinion is being rendered to you at
the request of the Borrower, pursuant to 3.01(c) of the Agreement.

      

      I have
examined originals or copies, certified or otherwise identified to my
satisfaction, of such documents, corporate records, certificates of public
officials and other instruments and have conducted such other investigations of
fact and law as I have deemed necessary or advisable for purposes of this
opinion. This opinion is limited to the laws of the District of
Columbia.

      

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

      

      1.           The
Borrower is a cooperative association duly incorporated, validly existing and in
good standing under the laws of the District of Columbia and has the corporate
power and authority and all material governmental licenses, authorizations,
consents and approvals required to own its property and assets and to transact
the business in which it is engaged.  The Borrower is duly qualified
or licensed as a foreign corporation in good standing in every jurisdiction in
which the nature of the business in which it is engaged makes such qualification
or licensing necessary, except in those jurisdictions in which the failure to be
so qualified or licensed would not (after qualification, assuming that the
Borrower could so qualify without the payment of any fee or penalty and retain
its rights as they existed prior to such qualification all to an extent so that
any fees or penalties required to be so paid or any rights not so retained would
not, individually or in the aggregate, have a material adverse effect on the
business or financial condition of the Borrower), individually or in the
aggregate, have a material adverse effect upon the business or financial
condition of the Borrower.

      

      
        
          
          

        

        
          Ex.H-1

          
            

          

        

        
          
          

        

      

      

      2.           The
Borrower has the corporate power and authority to execute, deliver and carry out
the terms and provisions of the Agreement and the Notes.  The
Agreement and the Notes have been duly and validly authorized, executed and
delivered by the Borrower, and the Agreement constitutes a legal, valid and
binding agreement of the Borrower, and the Notes constitute legal, valid and
binding obligations of the Borrower, in each case enforceable in accordance with
its terms, except as the same may be limited by: (a) bankruptcy, insolvency,
reorganization, receivership, moratorium and other laws affecting creditors’
rights (including without limitation, the effect of statutory and other law
regarding fraudulent conveyances, fraudulent transfers and preferential
transfers); and (b) the exercise of judicial discretion and the application of
principles of equity, good faith, fair dealing, reasonableness, conscionability
and materiality (regardless of whether the applicable agreements are considered
in a proceeding in equity or at law). The opinions expressed in this paragraph
shall be understood to mean that if there is a default in performance of an
obligation, (i) if a failure to pay or other damage can be shown and (ii) if the
defaulting party can be brought into a court which will hear the case and apply
the governing law, then, subject to the availability of defenses, and to the
exceptions set forth in sections (a) and (b) of this paragraph, the court will
provide a money damage (or perhaps injunctive or specific performance)
remedy.

      

      3.           There
are no actions, suits, proceedings or investigations pending or, to my
knowledge, threatened against or affecting the Borrower by or before any court
or any governmental authority, body or agency or any arbitration board which are
reasonably likely to materially adversely affect the business, property, assets,
financial position or results of operations of the Borrower or the authority or
ability of the Borrower to perform its obligations under the Agreement or the
Notes.  Without limiting the foregoing opinion, I would like to draw
your attention to the legal actions described on Annex A.

      

      4.           No
authorization, consent, approval or license of, or declaration, filing or
registration with or exemption by, any governmental authority, body or agency is
required in connection with the execution, delivery or performance by the
Borrower of the Agreement or the Notes.

      

      5.           The
holders of the Borrower’s Members’ Subordinated Certificates are not and will
not be entitled to receive any payments with respect to the principal thereof or
interest thereon solely because of withdrawing or being expelled from membership
in the Borrower.

      

      
        
          
          

        

        
          Ex.H-2

          
            

          

        

        
          
          

        

      

      

      6.           Neither
the Borrower nor any Consolidated Subsidiary is in default in any material
respect under any material agreement or other instrument to which it is a party
or by which it or its property or assets is bound. No event or condition exists
which constitutes, or with the giving of notice or lapse of time or both would
constitute, such a default under any such agreement or other
instrument.  Neither the execution and delivery of the Agreement or
the Notes, nor the consummation of any of the transactions therein contemplated,
nor compliance with the terms and provisions thereof, will contravene any
provision of law, statute, rule or regulation to which the Borrower is subject
or any judgment, decree, award, franchise, order or permit applicable to the
Borrower, or will conflict or be inconsistent with, or will result in any
material breach of, any of the material terms, covenants, conditions or
provisions of, or constitute (or with the giving of notice or lapse of time, or
both, would constitute) a default under (or condition or event entitling any
Person to require, whether by purchase, redemption, acceleration or otherwise,
the Borrower to perform any obligations prior to the scheduled maturity
thereof), or result in the creation or imposition of any Lien upon any of the
property or assets of the Borrower pursuant to the terms of, any indenture,
mortgage, deed of trust, agreement or other instrument to which it may be
subject, or violate any provision of the certificate of incorporation or by-laws
of the Borrower.  Without limiting the generality of the foregoing,
the Borrower is not a party to, or otherwise subject to any provision contained
in, any instrument evidencing Indebtedness of the Borrower, any agreement or
indenture relating thereto or any other contract or agreement (including its
certificate of incorporation and by-laws), which would be violated by the
incurring of the Indebtedness to be evidenced by the Notes.

      

      7.           The
Borrower has complied fully with all of the material provisions of each
Indenture.  No Event of Default (within the meaning of such term as
defined in any Indenture) and no event, act or condition (except for possible
non-compliance by the Borrower with any immaterial provisions of such Indenture
which in itself is not such an Event of Default under such Indenture) which with
notice or lapse of time, or both, would constitute such an Event of Default has
occurred and is continuing under such Indenture.  The borrowings by
the Borrower contemplated by the Agreement will not cause such an Event of
Default under, or the violation of any covenant contained in, any
Indenture.

      

      8.           Set
forth on Annex B attached hereto is a true, correct and complete list of all of
the Borrower’s Subsidiaries and Joint Ventures, the jurisdiction of
incorporation or organization of each such Subsidiary and Joint Venture and the
nature and percentage of the Borrower’s ownership of each such Subsidiary and
Joint Venture.

      

      9.           The
Borrower has received a ruling from the Internal Revenue Service to the effect
that it is exempt from payment of Federal income tax under 

      
         

        
          
            
              
              
Ex.H-3

            
              

            

          

          
            
            

          

           

        

      

      Section
501 (c)(4) of the Internal Revenue Code of 1986, and nothing has come to our
attention that leads us to believe that the Borrower is not so
exempt.

       

      Although
the parties have agreed that the Agreement and Notes shall be governed by and
construed in accordance with the laws of the State of New York, if a court were
to hold that the Agreement and Notes are to be governed and construed in
accordance with the laws of the District of Columbia, the Agreement and Notes
would, under the laws of the District of Columbia, be legal, valid and binding
obligations of the Borrower enforceable against the Borrower in accordance with
their respective terms, subject as to enforceability only to those
qualifications referenced in Paragraph 1 above.

      

      

      Sincerely,

       

      

      Roberta
B. Aronson

      Acting
General Counsel

      

      
        
          
          

        

        
          Ex.H-4

          
            

          

        

        
          
          

        

      

      

      Annex
A

      

      VarTec
Telecom, Inc. ("VarTec") was a telecommunications company and Rural Telephone
Finance Cooperative (“RTFC”) borrower located in Dallas, Texas.  RTFC
was VarTec's principal senior secured creditor.

      

      VarTec
and 16 of its U.S.-based affiliates, which were guarantors of VarTec's debt to
RTFC, filed voluntary petitions under Chapter 11 of the United States Bankruptcy
Code on November 1, 2004 in Dallas, Texas.  The cases were converted
in 2006 to Chapter 7 proceedings, administered by a Chapter 7
trustee.

      

      On June
4, 2007, the Bankruptcy Court approval of a settlement of litigation against
RTFC became final, pursuant to which (a) all claims against RTFC were dismissed
with prejudice and fully released, (b) a portion of the proceeds from the
collateral that had been provisionally applied to RTFC’s secured debt was
reallocated to VarTec creditors, including RTFC, and (c) an administrative
debtor-in-possession (“DIP”) financing facility owed by VarTec bankruptcy
estates to RTFC was reduced to $6 million.  RTFC’s remaining claims
will share in further recoveries by the bankruptcy estates.

      

      As a
result of the settlement of the litigation, National Rural Utilities Cooperative
Finance Corporation (“CFC”) wrote off $44 million of pre-petition debt during
the fourth quarter of fiscal year 2007. CFC also wrote off $17 million in the
first quarter of fiscal year 2008.

      

      At
November 30, 2007, CFC had a receivable for $6 million, which has a payment
priority from the bankruptcy estates; in addition, CFC will share in recoveries
that are in excess of the amount required to repay the DIP financing and cover
expenses of the estates. On December 26, 2007, CFC received $3 million from the
Chapter 7 trustee, thereby reducing the receivable to $3 million.

      

      Innovative
Communication Corporation ("ICC") is a diversified telecommunications company
and RTFC borrower headquartered in St. Croix, United States Virgin Islands
("USVI").  In the USVI, through its subsidiary Virgin Islands
Telephone Corporation d/b/a Innovative Telephone ("Vitelco"), ICC provides wire
line local and long-distance telephone services and well as other communications
and media services in the eastern and southern Caribbean and mainland
France.

      

      As of
November 30, 2007 and May 31, 2007, RTFC had $496 million and $493 million,
respectively, in loans outstanding to ICC.  Loans outstanding to ICC
continue to increase due to accrued legal costs associated with ongoing
litigation to recover the outstanding loan balance.  All loans to ICC
have been on non-accrual status since February 1, 2005.  ICC has not
made debt service payments to RTFC since June 2005.

      

      
        
          
          

        

        
          Ex.H-5

          
            

          

        

        
          
          

        

      

      

      RTFC is
the primary secured lender to ICC.  RTFC's collateral for the loans
includes (i) a series of mortgages, security agreements, financing statements,
pledges and guaranties creating liens in favor of RTFC on substantially all of
the assets and voting stock of ICC,  (ii) a direct pledge of 100% of
the voting stock of ICC's USVI local exchange carrier subsidiary, Vitelco, (iii)
secured guaranties, mortgages and direct and indirect stock pledges encumbering
the assets and ownership interests in substantially all of ICC's other operating
subsidiaries and certain of its parent entities, including ICC's immediate
parent, Emerging Communication, Inc., a Delaware corporation ("Emcom") and
Emcom's parent, Innovative Communication Company LLC, a Delaware limited
liability company ("ICC-LLC"), and (iv) a personal guaranty of the loans from
ICC's indirect majority shareholder and chairman, Jeffrey Prosser
("Prosser").

      

      Beginning
on June 1, 2004, RTFC filed a series of lawsuits against ICC, Prosser and others
for failure to comply with the terms of ICC's loan agreement with RTFC dated
August 27, 2001 as amended on April 4, 2003 (hereinafter, the "RTFC
Lawsuits").  In response to the RTFC Lawsuits, ICC, Vitelco and
Prosser denied liability and asserted claims, by way of counterclaim and by
filing its own lawsuits against RTFC, CFC and certain of RTFC's officers,
seeking various remedies, including reformation of the loan agreement,
injunctive relief, and damages.  The remedies were based on various
theories including a claim that RTFC breached an alleged funding obligation for
the settlement of litigation brought by Emcom shareholders (the "Greenlight
Entities") against ICC-LLC, ICC and some of ICC's directors, and a claim that
Emcom and ICC-LLC were entitled to contribution from RTFC and CFC in connection
with judgments that the Greenlight Entities had been awarded (the "ICC Claims,"
together with the RTFC Lawsuits, the "Loan Litigation").  Venue of the
Loan Litigation ultimately was fixed in the United States District Court for the
District of the Virgin Islands.

      

      On
February 10, 2006, Greenlight filed petitions for involuntary bankruptcy against
Prosser, Emcom and ICC-LLC in the United States Bankruptcy Court for the
District of Delaware, later transferred to the United States District Court for
the Virgin Islands, Bankruptcy Division.  RTFC appeared in the
proceedings as a party-in-interest in accordance with the provisions of the
United States Bankruptcy Code.

      

      On April
26, 2006, RTFC reached a settlement of the Loan Litigation with ICC, Vitelco,
ICC-LLC, Emcom, their directors and Prosser, individually.  Under the
settlement, RTFC obtained entry of judgments in the District Court for the
District of the Virgin Islands against ICC for approximately $525 million and
Prosser for approximately $100 million.  RTFC also obtained dismissals
with prejudice of all counterclaims, affirmative defenses and other lawsuits
alleging wrongful acts by RTFC, certain of its officers, and CFC. Various
parties also reached agreement for ICC to satisfy the RTFC judgments in the
third quarter of 

       

      
        
          
          

        

        
          Ex.H-6

          
            

          

        

        
          
          

        

      

      calendar
year 2006, subject to certain terms and conditions, however, on July 31, 2006,
certain of the parties obligated to satisfy the RTFC judgments under the
agreement filed voluntary bankruptcy proceedings, as described below, in order
to obtain additional time to satisfy the judgments.

      

      On July
31, 2006, ICC-LLC, Emcom and Prosser, individually, each filed a voluntary
petition under Chapter 11 of the United States Bankruptcy Code, now pending in
the United States District Court for the Virgin Islands, Division of St. Thomas
and St. John, Bankruptcy Division. Each of the debtors is obligated to RTFC for
certain obligations of ICC, including court judgments.  On February
13, 2007, the Bankruptcy Court ordered the appointment of a Chapter 11 trustee
for the ICC-LLC and Emcom bankruptcy estates and an examiner for Prosser’s
bankruptcy estate.

      

      On August
2, 2007, the Bankruptcy Court entered an order declaring that the debtors could
not satisfy the RTFC judgments at a discount.  Prosser, individually,
has filed a notice of appeal of the order; none of the other debtors has sought
review of the order.

      

      On
September 7, 2007, the Bankruptcy Court entered an order authorizing the Chapter
11 trustee for the Emcom bankruptcy estate to exercise control over the common
stock of ICC, including authority to vote the stock to, among other things,
facilitate a refinancing or sale of ICC and its assets.

      

      On
September 21, 2007, the United States District Court for the Virgin Islands,
Bankruptcy Division, in response to an involuntary petition filed by the
Greenlight Entities, entered an order for relief under Chapter 11 of the United
States Bankruptcy Code thereby placing ICC in its own bankruptcy
proceeding.  In response to a motion by RTFC, the Bankruptcy Court
ordered appointment of a Chapter 11 trustee on October 3, 2007. Certain parties
have moved for reconsideration of and/or appealed one or more orders of the
Bankruptcy Court and have requested a stay pending ruling by the District Court.
RTFC believes both that the moving parties have no standing and that the motion
to reconsider and appeal have no merit. Pending the appeal, the Chapter 11
trustee of ICC has assumed ownership and control of ICC, including its
subsidiaries, and has begun to marshal RTFC collateral and other assets for
disposition and eventual payment in respect of RTFC’s claims and the claims of
other parties-in-interest. On January 2, 2008, the Chapter 11 trustee of ICC
filed a motion seeking authority to sell substantially all of ICC’s assets,
including stock in ICC’s operating subsidiaries. The Court has entered an order
approving certain sale motions presented on February 1, 2008.

      

      In
response to a motion by the Greenlight Entities, joined by RTFC, the Bankruptcy
Court converted Prosser’s individual Chapter 11 bankruptcy to a Chapter 7
liquidation on October 3, 2007. Prosser has filed a notice of appeal of the
conversion order. RTFC believes that the appeal has no merit. Pending the
appeal, the Chapter 7 trustee has advised that he intends to marshal Prosser’s
non-

       

      
        
          
          

        

        
          Ex.H-7

          
            

          

        

        
          
          

        

      

      exempt
assets for disposition and eventual payment in respect of creditor claims. On
December 3, 2007, the Chapter 7 trustee of Prosser’s estate filed a motion to
approve sale procedures and for authority to sell Prosser’s controlling shares
in the Virgin Islands Community Bank Corp. The sale closed on January 27,
2008.

      

      In most
cases, the sale (as part of the reorganization process) of ICC or any of its
subsidiaries engaged in a regulated telecommunications or cable television
business, or of the regulated assets of ICC or its subsidiaries, will require
the prior consent of the respective regulators in the United States (including
the Federal Communications Commission and the U.S. Virgin Islands Public
Services Commission), the British Virgin Islands, France and its Caribbean
territories, and the Netherlands Antilles. In certain limited cases, only a
post-transaction notification will be required.

      

      Each of
the above cases, including related proceedings and counterclaims, has been
previously disclosed in greater detail in CFCs public filings with the
Securities and Exchange Commission. Nothing herein constitutes an admission that
the foregoing are reasonably likely to materially adversely affect the business,
property, assets, financial position or results of CFC or the authority or
ability of CFC to perform its obligations under the Agreement or the
Notes.

      

      
        
          
          

        

        
          Ex.H-8

          
            

          

        

        
          
          

        

      

      

      Annex
B

       

      

      

      Subsidiaries, Special Purpose
Subsidiaries and Joint Ventures:

      

      
        	
                 
      

              	
                a.

              	
                CFC
      Advantage, LLC, organized in the State of Delaware. Borrower owns 100% of
      the membership interests.

              

      

      

      
        	
                 
      

              	
                b.

              	
                Denton
      Realty Holdings, LLC, organized in the State of Delaware. Borrower owns
      100% of the membership interests.

              

      

      

      
        	
                 
      

              	
                c.

              	
                Denton
      Realty Investors, LLC, organized in the State of Delaware. Borrower owns
      100% of the membership interests.

              

      

      

      
        	
                 
      

              	
                d.

              	
                Denton
      Realty Partners, LP, organized in the State of Delaware. Denton Realty
      Holdings, LLC is the general partner and owns 0.5% of the partnership
      interests, and Denton Realty Investors, LLC is the limited partner and
      owns 99.5% of the partnership
interests.

              

      

      

      Denton Realty Partners, LP ownership
interest:

      

        
          	
                  Rayzor Ranch,
L.P.

                	
                  25%

                
	
                  Laurel Development I,
      L.P.

                	
                  25%

                
	
                  Crescent/Lantana I,
      L.P.

                	
                  10%

                
	
                  Meridian/Lantana I,
      L.P.

                	
                  10%

                
	
                  Laurel Development II,
      L.P.

                	
                  10%

                
	
                  Crescent/Lantana II,
      L.P.

                	
                  10%

                
	
                  Brenham Development,
      L.P.

                	
                  10%

                
	
                  W/J Lakes Development
      LP

                	
                  50%

                
	
                  W/J Lakes LP

                	
                  50%

                

        

      
        
          
          

        

        
          Ex.H-9

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
G

       

      OPINION
OF

      DAVIS POLK &
WARDWELL,

      SPECIAL COUNSEL FOR THE
ADMINISTRATIVE AGENT

       

      March 14,
2008

       

      
        	
                 
      

              	
                To
      the Banks and the Administrative
Agent

              

      

      
        	
                 
      

              	
                Referred
      to Below

              

      

      
        	
                 
      

              	
                c/o
      The Bank of Nova Scotia, as Administrative
Agent

              

      

      
        	
                 
      

              	
                c/o
      GWS Loan Operations

              

      

      720 King Street West, 2nd
Floor

      Toronto, Ontario  M5V
2T3

      Attn: NYA Loan Operations

      

      Dear
Sirs:

      

      We have
participated in the preparation of the 364-Day Revolving Credit Agreement dated
as of March 14, 2008 (the “Credit Agreement”) among the
National Rural Utilities Cooperative Finance Corporation, a not-for-profit
cooperative association incorporated under the laws of the District of Columbia
(the “Borrower”), the
Banks listed on the signature pages thereof, Deutsche Bank Securities Inc., UBS
Loan Finance LLC and The Bank of Tokyo-Mitsubishi UFJ, LTD., New York Branch, as
Co-Documentation Agents, The Royal Bank of Scotland plc, as Syndication Agent,
and The Bank of Nova Scotia, as Administrative Agent (the “Administrative Agent”), and have acted as
special counsel for the Administrative Agent for the purpose of rendering this
opinion pursuant to Section 3.01(d) of the Credit Agreement.  Terms
defined in the Credit Agreement are used herein as therein defined.

       

      We have
examined originals or copies, certified or otherwise identified to our
satisfaction, of such documents, corporate records, certificates of public
officials and other instruments and have conducted such other investigations of
fact and law as we have deemed necessary or advisable for purposes of this
opinion.

       

      Upon the
basis of the foregoing, we are of the opinion that the Credit Agreement
constitutes a valid and binding agreement of the Borrower and the Notes issued
today constitute valid and binding obligations of the Borrower, in each case
enforceable in accordance with its terms, except as the same may be limited by
bankruptcy, insolvency or similar laws affecting creditors’ rights generally and
by general principles of equity.

       

      In
rendering the foregoing opinion, we have assumed that (i) the Borrower is duly
incorporated, validly existing and in good standing under the laws of the
jurisdiction of its incorporation and (ii) the execution, delivery and
performance 

       

      
        
          
          

        

        
          Ex.H-10

          
            

          

        

        
          
          
by the
Borrower of the Credit Agreement and the Notes issued by the Borrower are within
the Borrower’s corporate powers, have been duly authorized by all necessary
corporate action, require no action by or in respect of, or filing with, any
governmental body, agency or official and do not contravene or constitute a
default under, any provision of applicable law or regulation or of the
Borrower’s certificate of incorporation or by-laws or of any agreement,
judgment, injunction, order, decree or other instrument binding upon the
Borrower or result in the creation or imposition of any lien on the assets of
the Borrower or any Subsidiary of the Borrower.

      

       

      We are
members of the Bar of the State of New York and the foregoing opinion is limited
to the laws of the State of New York and the federal laws of the United States
of America.  In giving the foregoing opinion, we express no opinion as
to the effect (if any) of any law of any jurisdiction (except the State of New
York) in which any Bank is located which limits the rate of interest that such
Bank may charge or collect.

       

      This
opinion is rendered solely to you in connection with the above
matter.  This opinion may not be relied upon by you for any other
purpose or relied upon by any other Person without our prior written
consent.

       

      
        	
                Very
      truly yours,

              
	 
      

      
        
          
          

        

        
          Ex.H-11

          
            

          

        

        
          
          

        

      

      EXHIBIT
H

       

      ASSIGNMENT AND ASSUMPTION
AGREEMENT

      

      AGREEMENT
dated as of ___________, 200__ among [ASSIGNOR] (the “Assignor”), [ASSIGNEE] (the
“Assignee”), NATIONAL
RURAL UTILITIES COOPERATIVE FINANCE CORPORATION (the “Borrower”) and THE BANK OF
NOVA SCOTIA, as Administrative Agent (the “Agent”).

       

      W I T N E
S S E T H

      

      WHEREAS,
this Assignment and Assumption Agreement (the “Agreement”) relates to the
364-Day Revolving Credit Agreement dated as of March 14, 2008 (the “Credit Agreement”), among the
Borrower, the Banks listed on the signature pages thereof, Deutsche Bank
Securities Inc., UBS Loan Finance LLC and The Bank of Tokyo-Mitsubishi UFJ,
LTD., New York Branch, as Co-Documentation Agents, The Royal Bank of Scotland
plc, as Syndication Agent, and The Bank of Nova Scotia, as Administrative Agent
(the “Agent”);

       

      WHEREAS,
as provided under the Credit Agreement, the Assignor has a Commitment to make
Loans to the Borrower in an aggregate principal amount at any time outstanding
not to exceed $__________;

       

      WHEREAS,
Committed Loans made to the Borrower by the Assignor under the Credit Agreement
in the aggregate principal amount of $__________ are outstanding at the date
hereof; and

       

      WHEREAS,
the Assignor proposes to assign to the Assignee all of the rights of the
Assignor under the Credit Agreement in respect of a portion of its Commitment
thereunder in an amount equal to $__________ (the “Assigned Amount”), together
with a corresponding portion of its outstanding Committed Loans, and the
Assignee proposes to accept assignment of such rights and assume the
corresponding obligations from the Assignor on such terms;

       

      NOW,
THEREFORE, in consideration of the foregoing and the mutual agreements contained
herein, the parties hereto agree as follows:

       

      SECTION
1.                                Definitions.  All
capitalized terms not otherwise defined herein shall have the respective
meanings set forth in the Credit Agreement.

       

      SECTION
2.                                Assignment.  The
Assignor hereby assigns and sells to the Assignee all of the rights of the
Assignor under the Credit Agreement to the extent of the Assigned Amount, and
the Assignee hereby accepts such assignment from the Assignor and assumes all of
the obligations of the Assignor under the Credit Agreement to the extent of the
Assigned Amount, including the purchase from the Assignor of the corresponding
portion of the principal amount of the Committed Loans made by the Assignor
outstanding at the date hereof.  Upon the execution and delivery
hereof by the Assignor, the Assignee, the Borrower and

       

      
        
          
          

        

        
          4.    Ex.E-1

          
            

          

        

        
          
          
the
Administrative Agent and the payment of the amounts specified in Section 3
required to be paid on the date hereof (i) the Assignee shall, as of the date
hereof, succeed to the rights and be obligated to perform the obligations of a
Bank under the Credit Agreement with a Commitment in an amount equal to the
Assigned Amount, and (ii) the Commitment of the Assignor shall, as of the date
hereof, be reduced by a like amount and the Assignor released from its
obligations under the Credit Agreement to the extent such obligations have been
assumed by the Assignee.  The assignment provided for herein shall be
without recourse to the Assignor.

      

       

      SECTION
3.  Payments.  As
consideration for the assignment and sale contemplated in Section 2 hereof, the
Assignee shall pay to the Assignor on the date hereof in Federal funds the
amount heretofore agreed between them. It is understood that commitment and/or
facility fees accrued to the date hereof are for the account of the Assignor and
such fees accruing from and including the date hereof are for the account of the
Assignee.  Each of the Assignor and the Assignee hereby agrees that if
it receives any amount under the Credit Agreement which is for the account of
the other party hereto, it shall receive the same for the account of such other
party to the extent of such other party’s interest therein and shall promptly
pay the same to such other party.

       

      SECTION
4.                                Consent of the Borrower and the
Administrative Agent.  This Agreement is conditioned upon the
consent of the Borrower and the Administrative Agent pursuant to Section 9.06(c)
of the Credit Agreement.  The execution of this Agreement by the
Borrower and the Administrative Agent is evidence of this
consent.  Pursuant to Section 9.06(c) of the Credit Agreement, if
requested by the Assignee, the Borrower agrees to execute and deliver a Note
payable to the order of the Assignee to evidence the assignment and assumption
provided for herein.

       

      SECTION
5.                                Non-Reliance on
Assignor.  The Assignor makes no representation or warranty in
connection with, and shall have no responsibility with respect to, the solvency,
financial condition, or statements of the Borrower, or the validity and
enforceability of the obligations of the Borrower in respect of the Credit
Agreement or any Note.  The Assignee acknowledges that it has,
independently and without reliance on the Assignor, and based on such documents
and information as it has deemed appropriate, made its own credit analysis and
decision to enter into this Agreement and will continue to be responsible for
making its own independent appraisal of the business, affairs and financial
condition of the Borrower.

       

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

       

      
        
          
          

        

        
          Ex.H-2

          
            

          

        

        
          
          

        

      

      SECTION
7.                                Counterparts.  This
Agreement may be signed in any number of counterparts, each of which shall be an
original, with the same effect as if the signatures thereto and hereto were upon
the same instrument.

       

      
        
          
          

        

        
          Ex.H-3

          
            

          

        

        
          
          

        

      

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

       

      
        	
                [ASSIGNOR]

              
	
                By:

              	 
      
	
                Name:

              
	
                Title:

              

      

      

      
        	
                [ASSIGNEE]

              
	
                By:

              	 
      
	
                Name:

              
	
                Title:

              

      

      

      
        	
                NATIONAL
      RURAL UTILITIES COOPERATIVE FINANCE CORPORATION

              
	
                By:

              	 
      
	
                Name:

              
	
                Title:

              

      

      

      
        	
                THE
      BANK OF NOVA SCOTIA, as Administrative Agent

              
	
                By:

              	 
      
	
                Name:

              
	
                Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}]]