Document:

exv10w8

 

Exhibit 10.8

CUSTODIAL AGREEMENT

     This Custodial Agreement (this “Agreement”) dated as of May 2, 2003
by and among Oxford Finance Corporation, a Maryland corporation
(“Oxford”), National City Bank (the “Bank”), and Riggs Bank,
N.A., as custodian of the various loan documents and pledged securities under
this Agreement (the “Custodian”).

RECITALS

     WHEREAS, Oxford and Bank are parties to a Master Loan and Security
Agreement of even date herewith (as amended, restated, supplemented or
otherwise modified and in effect from time to time, the “Loan
Agreement”).

     WHEREAS, pursuant to the Loan Agreement, Oxford is obligated to deliver
and assign to the Bank certain original loan documents generated by Oxford in
the ordinary course of its business (such loan documents, including without
limitation promissory notes, security agreements, and certain pledged
securities, together with any other document or instrument delivered by Oxford
in connection therewith as required by the Loan Agreement, collectively
referred to as the “Loan Contracts”).

     WHEREAS, the Bank desires the Custodian to take and maintain possession
of, and the Custodian is willing to hold on behalf of the Bank, the Loan
Contracts.

     NOW, THEREFORE, in consideration of the mutual promises and covenants
hereinafter set forth, the parties hereto agree as follows

ARTICLE I.

CUSTODY OF LOAN CONTRACTS

     Section 1.1   Appointment of Custodian.  With respect to each Loan
Contract delivered to the Custodian pursuant to the terms hereof, the Bank
hereby appoints the Custodian as its agent to take possession of each Loan
Contract so delivered. The Custodian agrees to act as agent for the Bank with
respect to any such Loan Contracts and agrees that it shall segregate from its
other assets and hold all such Loan Contracts for the exclusive use and benefit
of the Bank for purposes of perfection, continuity and maintenance of
perfection of the Bank’s security interest in the Loan Contracts, and shall
make disposition thereof only in accordance with written express instructions
of the Bank to the Custodian as provided herein.

     Section 1.2   Delivery of Loan Contracts.  The Bank and Oxford will
deliver and release to the Custodian any original Loan Contracts which may come
into possession of the Bank and Oxford. Each delivery of Loan Contracts to the
Custodian shall comply with the requirements as set forth on Exhibit A hereto.
Any such party delivering Loan Contracts to the Custodian shall also deliver
with such Loan Contracts a schedule (in paper and electronic format) of such
Loan Contracts being delivered to the Custodian (a “Loan Contract
Schedule”) (with a copy to the Bank in the case of delivery of Loan
Contracts by Oxford. Each Loan Schedule shall set forth the information
required by Section (i) of Exhibit A hereto. Each Loan Contract delivered
shall include the documentation required by Sections (ii) through (iii) of
Exhibit A hereto (the “Required Documentation”).

     Section 1.3   Acceptance of Loan Contracts.  Upon the delivery of
Loan Contracts by the Bank or Oxford, the Custodian shall issue to the Bank in
exchange therefor, a receipt (the “Receipt”) in the form attached hereto
as Exhibit B. By the issuance of the Receipt, the Custodian, as the duly
appointed

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agent of the Bank shall be deemed to have acknowledged receipt of
such Loan Contracts delivered to the Custodian pursuant to Section 1.2 above,
subject to the verification provisions set forth herein and in the Receipt for
each individual contract, and to have declared that it holds and will hold such
Loan Contracts as agent for the Bank from the date of such receipt to the
return of such Loan Contracts pursuant to the terms hereof (the “Release
Date”). During the period prior to the Release Date (the “Custodial
Period”), the Custodian shall not release or deliver any Loan Contracts or
any portion thereof to any person other than to the Bank or a person designated
by the Bank to the Custodian in writing or his designee and the Custodian shall
allow the Bank and its agents access to the Loan Contracts during such period
for purpose of its review thereof. The Custodian shall use due care in the
custody of the Loan Contracts as is customary in the banking industry and in
the Custodian’s care of chattel paper pledged for its own individual benefit.

     Section 1.4   Custodian’s Review of Loan Contracts.  Not later than
three (3) business days following its receipt of the delivery of Loan
Contracts, the Custodian shall, with respect to each Loan Contract: (i) verify
all Loan Contracts listed on the Loan Contract Schedule are in its possession,
(ii) verify such Loan Contracts have been reviewed by it and have not been
mutilated, damaged, torn or otherwise physically altered (i.e. handwritten,
typewritten or stamped additions, changes or corrections which are obvious on
the face of such documents) and relate to each such Loan Contract, (iii)
verify, based on its examination and only as to the foregoing documents, the
information set forth on the Loan Contract Schedule with respect to the account
number, obligor name, commencement date, original term and contract payment
accurately reflects the information set forth in the Loan Contract, (iv) verify
each document in the Loan Contracts appears on its face to be an executed
original counterpart, and in the case of promissory notes, have attached an
original allonge endorsing payment to Bank and (v) notify the Bank of any
deficiency with respect to the Required Documentation. The Bank shall be
entitled to have one or more of its representatives present during the time the
Custodian is performing such verification or otherwise handling the Loan
Contracts. The Custodian shall be under no duty or obligation to inspect or
review or examine said document, instrument, certificate or other papers to
determine that the same are genuine, enforceable or appropriate for the
represented purpose or that they have actually been recorded or that they
purport to be on their face.

     Section 1.5   Release of Loan Contracts.  The Bank may, at any time
during the Custodial Period, upon delivery of an executed release in the form
attached hereto as Exhibit C, require that the Custodian deliver any or all of
the Loan Contracts to the Bank or its designee. Such request by the Bank for
the release of Loan Contracts may be done by the Bank, at the Bank’s sole
discretion, or upon the written request of the Bank for such release.

     Section 1.6   Transmission of Custodian Loan Contracts.  Prior to any
shipment of any Loan Contracts hereunder (at the written direction of the
Bank), the Bank shall deliver written instructions to the Custodian as to the
method of shipment and the shipper(s) the Custodian is directed to utilize in
connection with transmission of the Loan Contracts in the performance of the
Custodian’s duties hereunder.

     Section 1.7   Custodian’s Fees.  The fees and charges of the
Custodian in connection with this Agreement shall be borne by Oxford.

ARTICLE II.

CONCERNING THE CUSTODIAN

     Section 2.1   Merger or Consolidation of Custodian.  Any Person into
which the Custodian may be merged or converted or with which it may be
consolidated, or any Person resulting from any merger,

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conversion or consolidation to which the Custodian shall be a party, or any Person succeeding
to the business of the Custodian, shall, upon (i) the execution of an
agreement to such effect and (ii) prior written notice to the Bank, become the
successor of the Custodian hereunder without any further act by the Custodian.

     Section 2.2   Representations and Covenant to the Custodian.  The
Custodian hereby represents and covenants that it is a depository institution
organized and existing under the laws of the United States or a state hereof
subject to supervision or examination by a federal or state authority, has a
combined capital and surplus of at least $100,000,000 and it is qualified to do
business in the jurisdiction in which it will hold any Loan Contract.

     Section 2.3   Rights of Custodian.

     (a)  The Custodian may rely on and shall be protected in acting upon any
certificate, instrument, opinion, notice, letter, telegram or other document
delivered to it and which in good faith it reasonably believes to be genuine
and which has been signed by the proper party or parties. The Custodian may
rely conclusively on and shall be protected by acting upon the written
instruction of any designated officer of the Bank.

     (b)   The Custodian may consult outside counsel reasonably satisfactory to
it, and the opinion of such counsel shall be full and complete authorization
and protection in respect of any action taken, suffered or omitted by it
hereunder in good faith and in accordance with the opinion of such counsel,
except in the case of its willful misconduct or negligent performance or
omission.

     (c)   The Custodian shall not be liable for any error of judgment, or for
any act done or step taken or omitted by it, in good faith, or for any mistakes
of fact or law, or for anything which it may do or refrain from doing in
connection herewith, except in the case of its willful misconduct or negligent
performance or omission.

     (d)   Except as expressly act forth herein, the Custodian makes no warranty
or representation and shall have no responsibility (except as expressly set
forth in this Agreement) as to the completeness, validity, sufficiency, value,
genuineness, ownership or transferability of the Loan Contracts, and will not
be required to and will not make any representations as to the validity or
value (except as expressly set forth in this Agreement) of any of the Loan
Contracts. The Custodian shall not be obligated to take any legal action
hereunder which might in its reasonable judgement involve any expense or
liability unless it has been furnished with reasonable indemnity therefor.

     (e)   Oxford shall indemnify and hold the Custodian and the Bank harmless
from and against all liabilities, damages, losses, fees (including reasonable
attorney’s fees) and costs and expenses incurred by the Custodian or the Bank
as a result of any legal proceedings or in defending against any action or
claim relating to the performance of its duties hereunder, unless such
liabilities, damages, losses, fees, costs and expenses shall arise from the
Custodian or the Bank’s negligence or willful misconduct or omission. The
Custodian’s and the Bank’s rights to indemnification shall survive the
termination of this Agreement.

     Section 2.4   Examination of Custodial Files.  Upon reasonable prior
notice to the Custodian, the Bank and its agents, accountants, attorneys,
internal and external auditors, employees and other authorized representatives
will be permitted during normal business hours to examine the Loan Contracts.

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     Section 2.5   Insurance of Custodian.  At its own expense, the
Custodian shall maintain at all times during the existence of this Agreement
and keep in full force and effect fidelity insurance, theft of documents
insurance, forgery insurance and errors and omissions insurance. All such
insurance shall be in amounts, with standard coverage and subject to standard
deductibles, all as is customary for insurance typically maintained by banks,
which act as Custodian.

     Section 2.6   Copies of Loan Contracts.  Upon the request of the
Bank and at the cost and expense of the Bank, the Custodian shall promptly
provide the Bank with (a) copies of the Loan Contracts or (b) the original Loan
Contracts as designated by the Bank.

     Section 2.7   No Adverse Interest of Custodian.  By execution of
this Agreement, the Custodian represents and warrants that it currently holds,
and during the existence of this Agreement shall hold, no adverse interest, by
way of security or otherwise, in any Loan Contract, and hereby waives and
releases any such interest which it may have in any Loan Contract as of the
date hereof.

     Section 2.8   Indemnification of the Bank.  In the event that the
Custodian fails to comply with a request to deliver a Loan Contract or any
other document related to a Loan Contract that was in its possession within
five (5) business days after requested by the Bank as provided in Sections 1.5
and 1.6 (a “Custodial Delivery Failure”), then the Custodian shall with
respect to any missing document related to such Loan Contract indemnify,
defend, and hold the Bank and its designee harmless against any and all
liabilities, obligations, losses, claims, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements, including reasonable
attorney’s fees, that may be imposed on, incurred by, or asserted against it or
them in any way relating to or arising out of such Custodial Delivery Failure,
except as provided for in Section 2.3(e). The foregoing indemnification shall
survive any termination or assignment of this Agreement. Upon shipment of any
Loan Contract or any other document relating to a Loan Contract as instructed
by Bank as provided in Sections 1.5 and 1.6, Custodian shall be released from
any further liability with respect to such Loan Contract.

ARTICLE III.

MISCELLANEOUS PROVISIONS

     Section 3.1   Notice.  Unless otherwise specifically provided, all
notices, requests, consents and demands and other communications required under
this Agreement or pursuant to any other instrument or document delivered
hereunder shall be in writing and may be delivered personally, by telegram or
telex, air courier or by facsimile transmission (with an original forwarded
thereafter by first-class mail) or by registered or certified mail, postage
prepaid, return receipt requested, at the addresses specified below (unless
changed by the particular party whose address is stated herein by similar
notice in writing to all other parties hereto), in which case the notice will
be deemed delivered when received:

     (a)   To Oxford Leasing Corporation, 133 N. Fairfax Street, Alexandria,
Virginia 22314, Attention: Michael Altenberger.

     (b)   To National City Bank, One South Broad Street, 13th Floor, 1345
Chestnut Street, Philadelphia, Pennsylvania 19107, Attention: Michael J.
Labrum

     (c)   To Riggs Bank, N.A., 808 17th Street N.W., Washington, DC 20006,
Attention: Ayanna Fowlkes Brown.

     Section 3.2   Amendments.  No modification of or supplement to this
Agreement shall be valid or effective unless the same is in writing and signed
by all parties hereto.

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     Section 3.3   Governing Law.  This Agreement shall be deemed a
contract made under the laws of, and to be performed in, the Commonwealth of
Pennsylvania and shall be construed and enforced in accordance with and
governed by the laws of the Commonwealth of Pennsylvania.

     Section 3.4   Counterparts.  This Agreement may be executed in any
number of counterparts, and by the different parties hereto on the same or
separate counterparts, each of which counterparts, when so executed and
delivered shall be deemed to be an original instrument and all of the
counterparts, taken together, shall constitute one and the same Agreement.

     Section 3.5   Severability of Provisions.  If any one or more of the
covenants, agreements, provisions or terms of this Agreement shall be, for any
reason whatsoever, held invalid, then such covenants, agreements, provisions or
terms shall be deemed severable from the remaining covenants, agreements,
provisions or terms of this Agreement and shall in no way affect the validity
or enforceability of the other provisions of this Agreement.

     Section 3.6   Termination.  The Custodian or the Bank may terminate
its obligations under this Agreement upon at least 60 days notice to the
non-terminating party. The costs associated with the termination of this
Agreement, including the costs associated with the transfer of the Loan
Contracts, shall be borne by Oxford. The payment of such successor
custodian’s fees and expenses shall be borne by Oxford. Upon such
termination, the Custodian shall promptly deliver to the Bank or its written
designee all Loan Contracts being administered under this Agreement.

     Section 3.7   Successors and Assigns.  This Agreement shall inure to
the benefit of, and be binding upon, the successors and assigns of each of
Oxford, the Custodian and the Bank.

     Section 3.8   Removal of Custodian.  The Bank, with or without
cause, may upon at least thirty (30) days’ notice remove and discharge the
Custodian from the performance of its duties under this Agreement by written
notice from the Bank to the Custodian, with a copy to Oxford. Having given
notice of such removal, the Bank promptly shall appoint a successor Custodian
to act on behalf of the Bank by written instrument. In the event of any such
removal, the Custodian shall promptly transfer to the successor Custodian, as
directed by and at the sole expense of the Oxford, all of the Loan Contracts
being administered under this Agreement.

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     IN WITNESS WHEREOF, the parties thereto have executed this Agreement as of
the date first set forth above.

	 	OXFORD FINANCE CORPORATION

	 	By: /s/ Michael J. Altenburger

Name: Michael J. Altenburger

Title: Chief Financial Officer

	 	NATIONAL CITY BANK

	 	By: /s/ Michael Labrum

Name: Michael Labrum

Title: Senior Vice President

	 	RIGGS BANK, N.A., As Custodian

	 	By: /s/ John A. Murphy

Name: John A. Murphy

Title: Managing Director

6exv10w2

 

EXHIBIT 10.2

THIRD AMENDED AND RESTATED

CREDIT AGREEMENT

among

ALLIED CAPITAL CORPORATION,

Borrower

BANK OF AMERICA, N.A.,

Administrative Agent

BANC OF AMERICA SECURITIES LLC,

Sole Lead Arranger and Sole Book Manager

RIGGS BANK N.A.,

Syndication Agent

FLEET NATIONAL BANK,

Documentation Agent

BRANCH BANKING AND TRUST COMPANY,

CREDIT LYONNAIS NEW YORK BRANCH,
 DEUTSCHE BANK AG, NEW
YORK BRANCH
 MERRILL LYNCH BANK USA,

and

WACHOVIA BANK, NATIONAL ASSOCIATION,

Co-Agents

and

THE LENDERS NAMED HEREIN,

Lenders 

Up to $600,000,000

 Dated as of April 18, 2003

 

 

TABLE OF CONTENTS

									
	SECTION 1. DEFINITIONS AND TERMS
		1.1 Definitions
		1.2 General; References to Times
		1.3 Accounting Principles
	SECTION 2. CREDIT FACILITY
		2.1 Loans
		2.2 Swing Line Subfacility
		2.3 LC Subfacility
		2.4 Borrowing Procedures
		2.5 Rates and Payment of Interest on Loans
		2.6 Number of Interest Periods
		2.7 Repayment of Loans
		2.8 Prepayments
		2.9 Continuation
		2.10 Conversion
		2.11 Loan Accounts, Notes
		2.12 Reductions of the Commitments; Option to Extend the Commitments
		2.13 Increases of Commitments
	SECTION 3. PAYMENTS, FEES AND OTHER GENERAL PROVISIONS
		3.1 Payments
		3.2 Pro Rata Treatment
		3.3 Sharing of Payments, Etc
		3.4 Offset
		3.5 Booking Borrowings
		3.6 Several Obligations
		3.7 Minimum Amounts
		3.8 Fees
		3.9 Computations
		3.10 Maximum Rate
		3.11 Interest Recapture
		3.12 Agreement Regarding Interest and Charges
		3.13 Defaulting Lenders
	SECTION 4. YIELD PROTECTION, ETC
		4.1 Increased Cost and Reduced Return
		4.2 Limitation on Types of Loans
		4.3 Illegality
		4.4 Treatment of Affected Loans
		4.5 Compensation
		4.6 Taxes
		4.7 Removal of Lenders
	SECTION 5. CONDITIONS PRECEDENT
		5.1 Initial Conditions Precedent
		5.2 Conditions Precedent to All Loans or LC Issuances
	SECTION 6. REPRESENTATIONS AND WARRANTIES
		6.1 Representations and Warranties
		6.2 Survival of Representations and Warranties, Etc
	SECTION 7. AFFIRMATIVE COVENANTS
		7.1 Preservation of Existence and Similar Matters
		7.2 Compliance with Applicable Law and Material Contracts
		7.3 Maintenance of Property
		7.4 Conduct of Business
		7.5 Insurance
		7.6 Payment of Taxes and Claims
		7.7 Visits and Inspections
		7.8 Use of Proceeds
		7.9 Environmental Matters
		7.10 Books and Records
		7.11 Status of RIC and BDC
		7.12 ERISA Exemptions
		7.13 Further Assurances
	SECTION 8. INFORMATION
		8.1 Quarterly Financial Statements
		8.2 Year-End Statements
		8.3 Compliance Certificate; Asset Reports
		8.4 Other Information
	SECTION 9. NEGATIVE COVENANTS
		9.1 Financial Covenants. Permit
		9.2 Interest Rate Agreements
		9.3 Liens; Agreements Regarding Liens; Other Matters
		9.4 Distributions to Shareholders
		9.5 Merger, Consolidation and Sales of Assets
		9.6 Fiscal Year
		9.7 Modifications to Material Contracts
		9.8 Transactions with Affiliates
		9.9 Subsidiary Senior Note Guaranty
		9.10 Employee Benefit Plans
		9.11 Payment of Obligation
	SECTION 10. DEFAULT
		10.1 Events of Default
		10.2 Remedies Upon Event of Default
		10.3 Remedies Upon Certain Defaults
		10.4 Allocation of Proceeds
		10.5 Performance by Administrative Agent
		10.6 Rights Cumulative
		10.7 Company Waivers
		10.8 Delegation of Duties and Rights
		10.9 Not in Control
		10.10 Course of Dealing
		10.11 Cumulative Rights
	SECTION 11. AGREEMENT AMONG LENDERS
		11.1 Appointment, Powers, and Immunities
		11.2 Delegation of Duties
		11.3 Reliance by Administrative Agent
		11.4 Defaults
		11.5. Rights as Lender
		11.6 LC Issuer
		11.7 Indemnification
		11.8 Non-Reliance on Administrative Agent and Other Lenders
		11.9 Resignation of Administrative Agent
		11.10 Administrative Agent May File Proofs of Claim
		11.11 Relationship of Lenders
		11.12 Benefits of Agreement
		11.13 Agents
	SECTION 12. MISCELLANEOUS
		12.1 Notices
		12.2 Expenses
		12.3 Jurisdiction; Consent to Service of Process; Waiver of Jury Trial
		12.4 Successors and Assigns
		12.5 Amendments
		12.6 Nonliability of Agent and Lenders
		12.7 Confidentiality
		12.8 INDEMNIFICATION
		12.9 Severability of Provisions
		12.10 Governing Law
		12.11 Counterparts
		12.12 Entirety
		12.13 Construction
		12.14 Discharge Only Upon Payment in Full; Reinstatement in Certain Circumstances
		12.15 Payments Set Aside
		12.16 Restatement of Existing Agreement

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	Page
	SECTION 1.	 	DEFINITIONS AND TERMS
	 	 	1	 
	 	1.1	 	 	Definitions
	 	 	1	 
	 	1.2	 	 	General; References to Times
	 	 	17	 
	 	1.3	 	 	Accounting Principles
	 	 	17	 
	SECTION 2.	 	CREDIT FACILITY
	 	 	17	 
	 	2.1	 	 	Loans
	 	 	17	 
	 	2.2	 	 	Swing Line Subfacility
	 	 	17	 
	 	2.3	 	 	LC Subfacility
	 	 	19	 
	 	2.4	 	 	Borrowing Procedures
	 	 	23	 
	 	2.5	 	 	Rates and Payment of Interest on Loans
	 	 	24	 
	 	2.6	 	 	Number of Interest Periods
	 	 	25	 
	 	2.7	 	 	Repayment of Loans
	 	 	25	 
	 	2.8	 	 	Prepayments
	 	 	25	 
	 	2.9	 	 	Continuation
	 	 	26	 
	 	2.10	 	 	Conversion
	 	 	26	 
	 	2.11	 	 	Loan Accounts, Notes
	 	 	27	 
	 	2.12	 	 	Reductions of the Commitments; Option to Extend the Commitments
	 	 	27	 
	 	2.13	 	 	Increases of Commitments
	 	 	28	 
	SECTION 3.	 	PAYMENTS, FEES AND OTHER GENERAL PROVISIONS
	 	 	28	 
	 	3.1	 	 	Payments
	 	 	28	 
	 	3.2	 	 	Pro Rata Treatment
	 	 	29	 
	 	3.3	 	 	Sharing of Payments, Etc
	 	 	29	 
	 	3.4	 	 	Offset
	 	 	29	 
	 	3.5	 	 	Booking Borrowings
	 	 	30	 
	 	3.6	 	 	Several Obligations
	 	 	30	 
	 	3.7	 	 	Minimum Amounts
	 	 	30	 
	 	3.8	 	 	Fees
	 	 	30	 
	 	3.9	 	 	Computations
	 	 	31	 
	 	3.10	 	 	Maximum Rate
	 	 	31	 
	 	3.11	 	 	Interest Recapture
	 	 	31	 
	 	3.12	 	 	Agreement Regarding Interest and Charges
	 	 	31	 
	 	3.13	 	 	Defaulting Lenders
	 	 	32	 
	SECTION 4.	 	YIELD PROTECTION, ETC.
	 	 	33	 
	 	4.1	 	 	Increased Cost and Reduced Return
	 	 	33	 
	 	4.2	 	 	Limitation on Types of Loans
	 	 	34	 
	 	4.3	 	 	Illegality
	 	 	35	 
	 	4.4	 	 	Treatment of Affected Loans
	 	 	35	 
	 	4.5	 	 	Compensation
	 	 	35	 
	 	4.6	 	 	Taxes
	 	 	36	 
	 	4.7	 	 	Removal of Lenders
	 	 	37	 
	SECTION 5.	 	CONDITIONS PRECEDENT
	 	 	38	 
	 	5.1	 	 	Initial Conditions Precedent
	 	 	38	 
	 	5.2	 	 	Conditions Precedent to All Loans or LC Issuances
	 	 	40	 
	SECTION 6.	 	REPRESENTATIONS AND WARRANTIES
	 	 	40	 
	 	6.1	 	 	Representations and Warranties
	 	 	40	 
	 	6.2	 	 	Survival of Representations and Warranties, Etc.
	 	 	45	 
	SECTION 7.	 	AFFIRMATIVE COVENANTS
	 	 	45	 
	 	7.1	 	 	Preservation of Existence and Similar Matters
	 	 	46	 

	 	 	 
	(i)	 	
Third Amended and Restated Credit Agreement

 

 

	 	 	 	 	 	 	 	 	 	 
	 	7.2	 	 	 	Compliance with Applicable Law and Material Contracts
	 	 	46	 
	 	7.3	 	 	 	Maintenance of Property
	 	 	46	 
	 	7.4	 	 	 	Conduct of Business
	 	 	46	 
	 	7.5	 	 	 	Insurance
	 	 	46	 
	 	7.6	 	 	 	Payment of Taxes and Claims
	 	 	46	 
	 	7.7	 	 	 	Visits and Inspections
	 	 	46	 
	 	7.8	 	 	 	Use of Proceeds
	 	 	47	 
	 	7.9	 	 	 	Environmental Matters
	 	 	47	 
	 	7.10	 	 	 	Books and Records
	 	 	47	 
	 	7.11	 	 	 	Status of RIC and BDC
	 	 	47	 
	 	7.12	 	 	 	ERISA Exemptions
	 	 	47	 
	 	7.13	 	 	 	Further Assurances
	 	 	47	 
	SECTION 8.	 	 	INFORMATION
	 	 	47	 
	 	8.1	 	 	 	Quarterly Financial Statements
	 	 	48	 
	 	8.2	 	 	 	Year-End Statements
	 	 	48	 
	 	8.3	 	 	 	Compliance Certificate; Asset Reports
	 	 	48	 
	 	8.4	 	 	 	Other Information
	 	 	49	 
	SECTION 9.	 	 	NEGATIVE COVENANTS
	 	 	51	 
	 	9.1	 	 	 	Financial Covenants. Permit:
	 	 	51	 
	 	9.2	 	 	 	Interest Rate Agreements
	 	 	51	 
	 	9.3	 	 	 	Liens; Agreements Regarding Liens; Other Matters
	 	 	51	 
	 	9.4	 	 	 	Distributions to Shareholders
	 	 	52	 
	 	9.5	 	 	 	Merger, Consolidation and Sales of Assets
	 	 	52	 
	 	9.6	 	 	 	Fiscal Year
	 	 	54	 
	 	9.7	 	 	 	Modifications to Material Contracts
	 	 	54	 
	 	9.8	 	 	 	Transactions with Affiliates
	 	 	54	 
	 	9.9	 	 	 	Subsidiary Senior Note Guaranty
	 	 	54	 
	 	9.10	 	 	 	Employee Benefit Plans
	 	 	54	 
	 	9.11	 	 	 	Payment of Obligation
	 	 	54	 
	SECTION 10.	 	 	DEFAULT
	 	 	54	 
	 	10.1	 	 	 	Events of Default
	 	 	54	 
	 	10.2	 	 	 	Remedies Upon Event of Default
	 	 	58	 
	 	10.3	 	 	 	Remedies Upon Certain Defaults
	 	 	59	 
	 	10.4	 	 	 	Allocation of Proceeds
	 	 	59	 
	 	10.5	 	 	 	Performance by Administrative Agent
	 	 	59	 
	 	10.6	 	 	 	Rights Cumulative
	 	 	60	 
	 	10.7	 	 	 	Company Waivers
	 	 	60	 
	 	10.8	 	 	 	Delegation of Duties and Rights
	 	 	60	 
	 	10.9	 	 	 	Not in Control
	 	 	60	 
	 	10.10	 	 	 	Course of Dealing
	 	 	60	 
	 	10.11	 	 	 	Cumulative Rights
	 	 	61	 
	SECTION 11.	 	 	AGREEMENT AMONG LENDERS
	 	 	61	 
	 	11.1	 	 	 	Appointment, Powers, and Immunities
	 	 	61	 
	 	11.2	 	 	 	Delegation of Duties
	 	 	61	 
	 	11.3	 	 	 	Reliance by Administrative Agent
	 	 	61	 
	 	11.4	 	 	 	Defaults
	 	 	62	 
	 	11.5.	 	 	 	Rights as Lender
	 	 	62	 
	 	11.6	 	 	 	LC Issuer
	 	 	62	 
	 	11.7	 	 	 	Indemnification
	 	 	63	 
	 	11.8	 	 	 	Non-Reliance on Administrative Agent and Other Lenders
	 	 	63	 
	 	11.9	 	 	 	Resignation of Administrative Agent
	 	 	63	 

	 	 	 
	(ii)	 	
Third Amended and Restated Credit Agreement

 

 

	 	 	 	 	 	 	 	 	 	 
	 	11.10	 	 	 	Administrative Agent May File Proofs of Claim
	 	 	64	 
	 	11.11	 	 	 	Relationship of Lenders
	 	 	65	 
	 	11.12	 	 	 	Benefits of Agreement
	 	 	65	 
	 	11.13	 	 	 	Agents
	 	 	65	 
	SECTION 12.	 	 	MISCELLANEOUS
	 	 	65	 
	 	12.1	 	 	 	Notices
	 	 	65	 
	 	12.2	 	 	 	Expenses
	 	 	67	 
	 	12.3	 	 	 	Jurisdiction; Consent to Service of Process; Waiver of Jury Trial
	 	 	67	 
	 	12.4	 	 	 	Successors and Assigns
	 	 	68	 
	 	12.5	 	 	 	Amendments
	 	 	70	 
	 	12.6	 	 	 	Nonliability of Agent and Lenders
	 	 	71	 
	 	12.7	 	 	 	Confidentiality
	 	 	71	 
	 	12.8	 	 	 	INDEMNIFICATION
	 	 	72	 
	 	12.9	 	 	 	Severability of Provisions
	 	 	73	 
	 	12.10	 	 	 	Governing Law
	 	 	73	 
	 	12.11	 	 	 	Counterparts
	 	 	73	 
	 	12.12	 	 	 	Entirety
	 	 	73	 
	 	12.13	 	 	 	Construction
	 	 	73	 
	 	12.14	 	 	 	Discharge Only Upon Payment in Full; Reinstatement in Certain Circumstances
	 	 	73	 
	 	12.15	 	 	 	Payments Set Aside
	 	 	74	 
	 	12.16	 	 	 	Restatement of Existing Agreement
	 	 	74	 

	 	 	 
	(iii)	 	
Third Amended and Restated Credit Agreement

 

 

SCHEDULES AND EXHIBITS

	 	 	 	 	 
	Schedule 2	 	
-
	 	Lenders and Commitments
	Schedule 6.1(a)	 	
-
	 	Qualification
	Schedule 6.1(b)	 	
-
	 	Ownership Structure
	Schedule 6.1(g)	 	
-
	 	Debt
	Schedule 6.1(h)	 	
-
	 	Material Contracts
	 	 	 	 	 
	Exhibit A	 	
-
	 	Form of Assignment and Acceptance Agreement
	Exhibit B-1	 	
-
	 	Form of Notice of Borrowing
	Exhibit B-2	 	
-
	 	Form of LC Request
	Exhibit C	 	
-
	 	Form of Notice of Continuation
	Exhibit D	 	
-
	 	Form of Notice of Conversion
	Exhibit E-1	 	
-
	 	Form of Third Amended and Restated Revolving Note
	Exhibit E-2	 	
-
	 	Form of Third Amended and Restated Swing Line Note
	Exhibit F	 	
-
	 	Form of Opinion of Counsel
	Exhibit G	 	
-
	 	Form of Compliance Certificate

	 	 	 
	(iv)	 	
Third Amended and Restated Credit Agreement

 

 

THIRD AMENDED AND RESTATED
CREDIT AGREEMENT

     THIS THIRD AMENDED AND RESTATED CREDIT AGREEMENT is entered into as of
April 18, 2003, by and among ALLIED CAPITAL CORPORATION, a corporation
organized under the laws of the State of Maryland (“Borrower”), certain Lenders
(hereinafter defined), certain Agents (hereinafter defined), and BANK OF
AMERICA, N.A., as a Lender and as Administrative Agent (hereinafter defined)
for itself and the other Lenders (hereinafter defined).

RECITALS

     A.     Borrower has entered into the Second Amended and Restated Credit
Agreement dated as of August 3, 2001, as amended by that certain First
Amendment to Credit Agreement dated as of December 20, 2001, and as further
amended by that certain Second Amendment to Credit Agreement dated as of
February 28, 2002 (the “Existing Agreement”) with Bank of America, N.A. (in its
capacity as “Administrative Agent” thereunder and as Lender) and certain other
Lenders party thereto (together with Bank of America, N.A., the “Existing
Lenders”), providing for, among other things, a revolving credit facility of up
to $600,000,000.

     B.     Subject to the terms and conditions set forth below, Borrower and
Lenders desire to entirely amend, modify, and restate the Existing Agreement.

     C.          The amendment and restatement of the Existing Agreement hereunder is
not intended by the parties to constitute either a novation or a discharge or
satisfaction of the indebtedness and obligations under the Existing Agreement,
which indebtedness and obligations under the Existing Agreement shall remain
outstanding hereunder on the terms and conditions hereinafter provided.

     In consideration of the foregoing and the mutual covenants contained
herein, Borrower, Bank of America, N.A. (in its capacity as Administrative
Agent under this Agreement and the Existing Agreement), and Lenders agree that,
effective upon the Effective Date, the Existing Agreement is amended and
restated in its entirety as follows:

SECTION
1.    DEFINITIONS AND TERMS.

     1.1
     Definitions. As used herein:

     “Adjusted EBIT” means, for any period with respect to Borrower and its
Consolidated Subsidiaries, income after deduction of all expenses and other
proper charges other than taxes and Interest Expense, all as determined in
accordance with GAAP.

     “Adjusted Eurodollar Rate” means, for any Eurodollar Loan for any Interest
Period therefor, the rate per annum (rounded upwards, if necessary, to the
nearest 1/100 of 1%) determined by Administrative Agent to be equal to the
quotient obtained by dividing (a) the Eurodollar Rate for such Eurodollar Loan
for such Interest Period by (b) one minus the Reserve Requirement for such
Eurodollar Loan for such Interest Period.

     “Administrative Agent” means Bank of America, N.A., and its permitted
successors or assigns as “Administrative Agent” for the Lenders under this
Agreement.

     “Affected Lender” has the meaning given that term in Section 4.7.

	 	 	 
	1	 	
Third Amended and Restated Credit Agreement

 

     “Affiliate” means, as to any Person, any other Person: (a) directly or
indirectly controlling, controlled by, or under common control with such
Person; (b) directly or indirectly owning or holding 5.0% or more of any equity
interest in such Person; or (c) 5.0% or more of whose voting stock or other
equity interest is directly or indirectly owned or held by such Person. For
purposes of this definition, (x) “control” (including with correlative
meanings, the terms “controlling,” “controlled by,” and “under common control
with”) means the possession directly or indirectly of the power to direct or
cause the direction of the management and policies of a Person, whether through
the ownership of voting securities or by contract or otherwise, other than by
investment advisory contracts entered into in the ordinary course of business
of Borrower or a Subsidiary of Borrower, and (y) neither Administrative Agent
nor any Lender shall be deemed to be an “Affiliate” of Borrower.

     “Agent-Related Persons” means Administrative Agent, together with its
Affiliates (including, in the case of Bank of America in its capacity as
Administrative Agent, the Arranger), and the officers, directors, employees,
agents, and attorneys-in-fact of such Persons and Affiliates.

     “Agents” means, collectively, Syndication Agent, Documentation Agent, and
Co-Agents.

     “Agreement” means this Third Amended and Restated Credit Agreement (as the
same may hereafter be amended, modified, supplemented, or restated from time to
time).

     “Agreement Date” means the date as of which this Agreement is dated.

     “Applicable Law” means all applicable provisions of constitutions,
statutes, rules, regulations, and orders of all governmental bodies and all
orders and decrees of all courts, tribunals, and arbitrators.

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

     “Arranger” means Banc of America Securities LLC and its successors and
assignees in its capacity as “Lead Arranger.”

     “Asset Coverage Ratio” shall mean, on a consolidated basis for Borrower
and its Consolidated Subsidiaries, the ratio which the value of total assets,
less all liabilities and indebtedness not represented by senior securities (all
as determined pursuant to the Investment Company Act and any orders of the
Securities and Exchange Commission issued to Borrower thereunder), bears to the
aggregate amount of senior securities representing indebtedness of Borrower and
its Consolidated Subsidiaries.

     “Assignment and Acceptance Agreement” means an Assignment and Acceptance
Agreement among a Lender, an Eligible Assignee, and Administrative Agent,
substantially in the form of Exhibit A or such other form as may be agreed to
by such Lender, such Eligible Assignee, and Administrative Agent.

     “Attorney Costs” means and includes all reasonable fees, expenses, and
disbursements of any law firm or other external counsel and, without
duplication, the reasonable allocated cost of internal legal services and all
reasonable expenses and disbursements of internal counsel.

     “Bank of America” means Bank of America, N.A. and its permitted successors
and assigns.

     “Base Rate” means, for any day, a fluctuating rate per annum equal to the
higher of (a) the Federal Funds Rate for such day plus one-half of one percent
(0.5%) and (b) the rate of interest in effect

	 	 	 
	2	 	
Third Amended and Restated Credit Agreement

 

 

for such day as publicly announced from time to time by Bank of America as its
“prime rate.” The “prime rate” is a rate set by Bank of America based upon
various factors including Bank of America’s costs and desired return, general
economic conditions, and other factors, and is used as a reference point for
pricing some loans, which may be priced at, above, or below such announced
rate. Any change in such rate announced by Bank of America shall take effect
at the opening of business on the day specified in the public announcement of
such change.

     “Base Rate Loan” means a Loan bearing interest at a rate based on the Base
Rate.

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

     “Book Value” means, at any date of determination with respect to any
asset, the value thereof as the same would be reflected on a consolidated
balance sheet of Borrower and its Consolidated Subsidiaries as at such time in
accordance with GAAP.

     “Borrower” is defined in the preamble to this Agreement and includes any
permitted successors of Borrower.

     “Business Day” means (a) any day other than a Saturday, Sunday, or other
day on which banks in New York City, New York are authorized or required to
close and (b) in addition to the foregoing, with reference to a Eurodollar
Loan, any such day that is also a day on which dealings in Dollar deposits are
carried out in the London interbank market and commercial banks are open for
international business in London.

     “Capitalized
Lease Obligation” means Debt represented by obligations under
a lease that is required to be capitalized for financial reporting purposes in
accordance with GAAP, and the amount of such Debt shall be the capitalized
amount of such obligations determined in accordance with such principles.

     “Co-Agents” means, collectively, Branch Banking and Trust Company, Credit
Lyonnais New York Branch, Deutsche Bank AG, New York Branch, Merrill Lynch Bank
USA, and Wachovia Bank, National Association and their respective permitted
successors or assigns as “Co-Agents” under this Agreement.

     “Commercial Mortgage Loan” means a loan secured by a Lien on improved real
estate used for commercial purposes.

     “Commitment” means, as to each Lender (other than LC Issuer or Swing Line
Lender), such Lender’s obligation to make Loans pursuant to Section 2.1 (or
purchase participations in Swing Line Loans pursuant to Section 2.2(c) or in
LCs pursuant to Section 2.3(c)) in an amount up to, but not exceeding, the
amount set forth for such Lender on Schedule 2 as such Lender’s “Commitment
Amount” or as set forth in the applicable Assignment and Acceptance Agreement,
as the same may be reduced or increased from time to time pursuant to Sections
2.12 and 2.13 or as appropriate to reflect any assignments to or by such Lender
effected in accordance with Section 12.4.

     “Commitment Percentage” means, as to each Lender (other than LC Issuer or
Swing Line Lender), the ratio, expressed as a percentage, of (a) the amount of
such Lender’s Commitment to (b) the sum of the aggregate amount of the
Commitments of all Lenders (other than LC Issuer and Swing Line Lender)
hereunder; provided, however, that if at the time of determination, the
Commitments have

	 	 	 
	3	 	
Third Amended and Restated Credit Agreement

 

 

terminated or been reduced to zero, the “Commitment Percentage” of each such
Lender shall be the Commitment Percentage of such Lender in effect immediately
prior to such termination or reduction.

     “Commitment Usage” means, at the time of any determination thereof, the
sum of (a) the Principal Debt plus, without duplication, (b) the LC Exposure.

     “Compliance Certificate” means a certificate signed by the chief financial
officer of Borrower, substantially in the form of Exhibit G.

     “Consolidated Debt” shall mean as of the date of any determination
thereof, the aggregate unpaid amount of all Debt of Borrower and its
Consolidated Subsidiaries determined on a consolidated basis in accordance with
GAAP.

     “Consolidated Shareholders’ Equity,” as of the date of determination
thereof, shall mean the total shareholders’ equity of Borrower and its
Consolidated Subsidiaries as the same would appear on a consolidated balance
sheet of Borrower and its Consolidated Subsidiaries prepared as of such date in
accordance with GAAP, including, in any case, common stock of Borrower (valued
at cost) held in the Allied Capital Corporation Deferred Compensation Trust and
Permitted Preferred Stock of Borrower and its Consolidated Subsidiaries, but
excluding any stock, common or preferred, not both issued and outstanding.

     “Consolidated Subsidiaries” shall mean any Subsidiary which is required to
be consolidated on financial statements of Borrower prepared in accordance with
GAAP.

     “Contingent Obligation” as applied to any Person, means any direct or
indirect liability, contingent or otherwise, of that Person: (a) with respect
to any indebtedness, lease, dividend, or other obligation of another Person if
the primary purpose or intent of the Person incurring such liability, or the
primary effect thereof, is to provide assurance to the obligee of such
liability that such liability will be paid or discharged, or that any
agreements relating thereto will be complied with, or that the holders of such
liability will be protected (in whole or in part) against loss with respect
thereto; (b) with respect to any letter of credit issued for the account of
that Person or as to which that Person is otherwise liable for reimbursement of
drawings; or (c) under Interest Rate Agreements. “Contingent Obligations”
shall include (i) the direct or indirect guaranty, endorsement (other than for
collection or deposit in the ordinary course of business), comaking,
discounting with recourse, or sale with recourse by such Person of the
obligation of another, (ii) the obligation to make take or pay or similar
payments if required regardless of nonperformance by any other party or parties
to an agreement, and (iii) any liability of such Person for the obligations of
another through any agreement to purchase, repurchase, or otherwise acquire
such obligation or any property constituting security therefor, to provide
funds for the payment or discharge of such obligation, or to maintain the
solvency, financial condition, or any balance sheet item or level of income of
another. The amount of any Contingent Obligation shall be equal to the amount
of the obligation so guaranteed or otherwise supported or, if not a fixed and
determined amount, the maximum amount so guaranteed. The amount of any
Contingent Obligation outstanding under clause (c) shall be determined in
accordance with the definition of Interest Rate Agreement.

     “Continue,” “Continuation,” and “Continued” each refers to the
continuation of a Eurodollar Loan from one Interest Period to another Interest
Period pursuant to Section 2.9.

     “Continuing Lenders” has the meaning given that term in Section 12.16.

     “Convert,” “Conversion,” and “Converted” each refers to the conversion of
a Loan of one Type into a Loan of another Type pursuant to Section 2.10.

	 	 	 
	4	 	
Third Amended and Restated Credit Agreement

 

 

     “Credit Event” means any of the following: (a) the making (or deemed
making) of any Loan (except the payment by LC Issuer of drafts under LCs), (b)
the Conversion of a Loan, or (c) the issuance of any LC.

     “Credit Rating” means, at any time as to any Person, the lowest rating
assigned by a Rating Agency to each series of rated senior unsecured long term
indebtedness of such Person.

     “Debt” means, with respect to any Person, at the time of computation
thereof, all of the following (without duplication):

		
	 	     (a)     its liabilities for borrowed money and under repurchase
agreements (whether on a recourse or non-recourse basis), excluding any
Interest Rate Agreement structured as a repurchase agreement entered into
for the purpose of protecting against fluctuations in interest rates with
respect to assets;
	 
	 	     (b)     its liabilities, whether or not for money borrowed (i)
represented by notes payable or drafts accepted, in each case representing
extensions of credit or (ii) evidenced by bonds, debentures, notes, or
similar instruments;
	 
	 	     (c)     its liabilities for the deferred purchase price of property
acquired by such Person (excluding accounts payable arising in the
ordinary course of business, but including, without limitation, all
liabilities created or arising under any conditional sales contracts,
title retention debt instruments, or other similar instruments, upon which
interest charges are customarily paid or that are issued or assumed as
full or partial payment for such property);
	 
	 	     (d)     its Capitalized Lease Obligations;
	 
	 	     (e)     all liabilities for borrowed money secured by any Lien with
respect to any property owned by such Person (whether or not it has
assumed or otherwise become liable for such liabilities);
	 
	 	     (f)     all reimbursement obligations of such Person under any letters of
credit or acceptances (whether or not the same have been presented for
payment), and all obligations of such Person as the issuer of any letters
of credit or acceptances (whether or not the same have been presented for
payment);
	 
	 	     (g)     its liabilities under Interest Rate Agreements entered into for
the purpose of hedging currency risks with respect to Debt; and
	 
	 	     (h)     any Contingent Obligation of such Person with respect to liabilities
of a type described in any of clauses (a) through (g) hereof;

provided that any amount receivable by Borrower or any of its Consolidated
Subsidiaries under an Interest Rate Agreement referred to in the preceding
clause (g), as determined in accordance with the definition of Interest Rate
Agreement, shall apply as an offset in the calculation of the total amount of
Debt.

“Debt” of any Person shall include all obligations of such Person of the
character described in clauses (a) through (g) to the extent such Person
remains legally liable in respect thereof notwithstanding that any such
obligation is deemed to be extinguished under GAAP.

	 	 	 
	5	 	
Third Amended and Restated Credit Agreement

 

 

     “Default”
means any of the events specified in Section 10.1, whether or
not there has been satisfied any requirement for the giving of notice, the
lapse of time, or both.

     “Defaulting Lender” has the meaning given that term in Section 3.13.

     “Documentation Agent” means Fleet National Bank and its permitted
successors or assigns as “Documentation Agent” under this Agreement.

     “Dollars” or “$” means the lawful currency of the United States of
America.

     “Effective Date” means the later of: (a) the Agreement Date; and (b) the
date on which all of the conditions precedent set forth in Section 5.1 shall
have been satisfied or waived, but (c) must be, if at all, a Business Day
occurring no later than April 18, 2003.

     “Eligible Assignee” means (i) a Lender; (ii) an Affiliate of any Lender;
(iii) an Approved Fund; and (iv) any other Person approved by Administrative
Agent and (unless an Event of Default has occurred and is continuing at the
time any assignment is effected in accordance with Section 12.4) Borrower, such
approval not to be unreasonably withheld or delayed by Borrower or
Administrative Agent and such approval to be deemed given by Borrower if no
objection is received by the assigning Lender and Administrative Agent from
Borrower within five Business Days after notice of such proposed assignment has
been provided by the assigning Lender to Borrower; provided, however, that
neither Borrower nor an Affiliate of Borrower shall qualify as an Eligible
Assignee.

     “Environmental Laws” means any Applicable Law relating to environmental
protection or the manufacture, storage, disposal, or clean-up of Hazardous
Materials, including, without limitation, the following: Clean Air Act, 42
U.S.C. 7401 et seq.; Federal Water Pollution Control Act, 33 U.S.C. 1251 et
seq.; Solid Waste Disposal Act, 42 U.S.C. 6901 et seq.; Comprehensive
Environmental Response, Compensation and Liability Act, 42 U.S.C. 9601 et seq.;
National Environmental Policy Act, 42 U.S.C. 4321 et seq.; regulations of the
Environmental Protection Agency, and any applicable rule of common law and any
judicial interpretation thereof relating primarily to the environment or
Hazardous Materials.

     “Equity Issuance” means any issuance or sale by a Person of its capital
stock or other similar equity security, or any warrants, options, or similar
rights to acquire, or securities convertible into or exchangeable for, such
capital stock or other similar equity security.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as in
effect from time to time.

     “ERISA Group” means 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 Borrower or any
Subsidiary, are treated as a single employer under Section 414 of the Internal
Revenue Code.

     “Eurodollar Loan” means a Loan bearing interest at a rate based on the
Eurodollar Rate.

     “Eurodollar Rate” means, for any Eurodollar Loan for any Interest Period
therefor:

		
	 	     (a)     the rate per annum (rounded upwards, if necessary, to the nearest
1/100 of 1%) equal to the rate determined by Administrative Agent to be
the offered rate that appears on the page of the Telerate screen (and any
successor thereto) that displays an average British Bankers

	 	 	 
	6	 	
Third Amended and Restated Credit Agreement

 

 

		
	 	Association Interest Settlement Rate for deposits in Dollars (for delivery
on the first day of such Interest Period) with a term equivalent to such
Interest Period, determined as of approximately 11:00 a.m. (London time)
two Business Days prior to the first day of such Interest Period; or
	 
	 	     (b)     if for any reason the rate in the preceding clause (a) does not
appear on such page or service or such page or service shall cease to be
available, the rate per annum (rounded upwards, if necessary, to the
nearest 1/100 of 1%) equal to the rate determined by Administrative Agent
to be the offered rate that appears on such other page or other service
that displays an average British Bankers Association Interest Settlement
Rate for deposits in Dollars (for delivery on the first day of such
Interest Period) with a term equivalent to such Interest Period,
determined as of approximately 11:00 a.m. (London time) two Business Days
prior to the first day of such Interest Period; or
	 
	 	     (c)     if the rates referenced in the preceding clauses (a) and (b) are
not available, the rate per annum (rounded upwards, if necessary, to the
nearest 1/100 of 1%) equal to the rate determined by Administrative Agent
to be the rate of interest at which deposits in Dollars for delivery on
the first day of such Interest Period in same day funds in the approximate
amount of the Eurodollar Loan being made, continued, or converted and with
a term equivalent to such Interest Period would be offered by Bank of
America’s London Branch to major banks in the London interbank eurodollar
market at their request at approximately 4:00 p.m. (London time) two
Business Days prior to the first day of such Interest Period.

     “Event of Default” means any of the events specified in Section 10.1,
provided that, any requirement for notice or lapse of time or any other
condition has been satisfied.

     “Exchange
Act” has the meaning given that term in
Section 10.1(m).

     “Existing Agreement” is defined in the Recitals to this Agreement.

     “Existing Lenders” is defined in the Recitals to this Agreement.

     “Existing Letters of Credit” means (i) all LCs issued and outstanding
under the Existing Agreement, (ii) that certain LC #3049517 issued by Bank of
America in favor of BNY Midwest Trust Co. for the account of Borrower in the
amount of $6,000,000, and (iii) that certain LC #3054024 issued by Bank of
America in favor of GMAC Commercial Financial for the account of Borrower in
the amount of $7,005,625.

     “Federal Funds Rate” means, for any day, the rate per annum (rounded
upwards, if necessary, to the nearest 1/100 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 Business Day next
succeeding such day; provided that (a) if such day is not a Business Day, the
Federal Funds Rate for such day shall be such rate on such transactions on the
next preceding Business Day as so published on the next succeeding Business
Day, and (b) if no such rate is so published on such next succeeding Business
Day, the Federal Funds Rate for such day shall be the average rate (rounded
upwards, if necessary, to the nearest 1/100 of 1%) charged to Bank of America
on such day on such transactions as determined by Administrative Agent.

     “Fees” means the fees and commissions provided for or referred to in
Section 3.8 and any other fees payable by Borrower to Administrative Agent, any
other Agent, LC Issuer, Swing Line Lender, or any Lender hereunder or under any
other Loan Document.

	 	 	 
	7	 	
Third Amended and Restated Credit Agreement

 

 

     “Foreclosure Property” means assets acquired by foreclosure (or sale in
lieu of foreclosure) of any Investment (other than Investments in a
Consolidated Subsidiary) of Borrower or any of its Subsidiaries.

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

     “GAAP” means, subject to Section 1.3, accounting principles as promulgated
from time to time in statements, opinions and pronouncements by the American
Institute of Certified Public Accountants and the Financial Accounting
Standards Board and in such statements, opinions, and pronouncements of such
other entities with respect to financial accounting of for-profit entities as
shall be accepted by a substantial segment of the accounting profession in the
United States.

     “Governmental Approvals” means all authorizations, consents, approvals,
licenses, and exemptions of, registrations and filings with, and reports to,
all Governmental Authorities.

     “Governmental Authority” means any national, state, or local government
(whether domestic or foreign), any political subdivision thereof or any other
governmental, quasi-governmental, judicial, public, or statutory
instrumentality, authority, body, agency, bureau, or entity (including, without
limitation, the Federal Deposit Insurance Corporation, the Comptroller of the
Currency, or the Federal Reserve Board, any central bank, or any comparable
authority) or any arbitrator with authority to bind a party at law.

     “Hazardous Materials” means all or any of the following: (a) substances
that are defined or listed in, or otherwise classified pursuant to, any
applicable Environmental Laws as “hazardous substances,” “hazardous materials,”
“hazardous wastes,” “toxic substances,” or any other formulation intended to
define, list or classify substances by reason of deleterious properties such as
ignitability, corrosivity, reactivity, carcinogenicity, reproductive toxicity,
“TLCP” toxicity, or “EP toxicity”; (b) oil, petroleum, or petroleum derived
substances, natural gas, natural gas liquids, or synthetic gas and drilling
fluids, produced waters, and other wastes associated with the exploration,
development, or production of crude oil, natural gas, or geothermal resources;
(c) any flammable substances or explosives or any radioactive materials; (d)
asbestos in any form; or (e) electrical equipment which contains any oil or
dielectric fluid containing levels of polychlorinated biphenyls in excess of
fifty parts per million.

     “Indemnified Liabilities” has the meaning given that term in Section 12.8.

     “Intellectual Property” has the meaning given that term in Section 6.1(r).

     “Intercreditor Agreement” means an intercreditor agreement pursuant to
which the Lenders and the holders of any other Debt of Borrower have agreed to
share payments made by any Consolidated Subsidiary under a Subsidiary Bank
Guaranty, a Subsidiary Senior Note Guaranty, or any other guaranty of any Debt
of Borrower on an equal and ratable basis.

     “Interest Expense” means, with respect to a Person and for any period, the
total consolidated interest expense (including, without limitation, capitalized
interest expense and interest expense attributable to Capitalized Lease
Obligations) of such Person and in any event shall include all interest expense
with respect to any Debt in respect of which such Person is wholly or partially
liable.

     “Interest Period” means, with respect to any Eurodollar Loan, each period
commencing on the date such Eurodollar Loan is made or the last day of the next
preceding Interest Period for such Loan and

	 	 	 
	8	 	
Third Amended and Restated Credit Agreement

 

 

ending on the date 7 or 14 days thereafter (solely with respect to Eurodollar
Loans made during the thirty (30) calendar day period immediately following the
Effective Date) or on the numerically corresponding day in the first, second,
third, or sixth calendar month thereafter, as Borrower may select in a Notice
of Borrowing, Notice of Continuation, or Notice of Conversion, as the case may
be, except that each Interest Period for a Eurodollar Loan (other than a 7 or
14 day Interest Period) that commences on the last Business Day of a calendar
month (or on any day for which there is no numerically corresponding day in the
appropriate subsequent calendar month) shall end on the last Business Day of
the appropriate subsequent calendar month. Notwithstanding the foregoing: (i)
if any Interest Period would otherwise end after the Termination Date, such
Interest Period shall end on the Termination Date, (ii) each Interest Period
that would otherwise end on a day which is not a Business Day shall end on the
next succeeding Business Day (or, except in the case of a 7 or 14 day Interest
Period, if such next succeeding Business Day falls in the next succeeding
calendar month, on the next preceding Business Day), and (iii) notwithstanding
the immediately preceding clause (i), no Interest Period for any Eurodollar
Loan shall have a duration of less than one month (other than a 7 or 14 day
Interest Period), and, if the Interest Period for any Eurodollar Loan would
otherwise be a shorter period, such Loan shall not be available hereunder for
such period.

     “Interest Rate Agreement” means any interest rate swap agreement, interest
rate cap agreement, interest rate collar agreement, foreign exchange contract,
currency swap agreement, repurchase agreement, or other similar contractual
agreement or arrangement entered into for the purpose of protecting against
fluctuations in interest rates or in currency values. For the purposes of this
Agreement, the amount of any obligation (whether positive or negative) under
any Interest Rate Agreement shall be the amount payable or receivable by
Borrower or any of its Consolidated Subsidiaries determined in respect thereof
as of the end of the most recently ended fiscal quarter of such Person, based
on the assumption that such Interest Rate Agreement had terminated at the end
of such fiscal quarter, and in making such determination, if such Interest Rate
Agreement provides for the netting of amounts payable by and to such Person
thereunder or if such Interest Rate Agreement provides for the simultaneous
payment of amounts by and to such Person, then in each such case, the amount of
such obligation shall be the net amount so determined; provided that, with
respect to Borrower’s existing Interest Rate Agreement which is structured as a
U.S. Treasury securities repurchase program and which protects against
fluctuations in interest rates with respect to certain commercial
mortgage-backed securities owned by Borrower (and with respect to other
Interest Rate Agreements of the Borrower or any Consolidated Subsidiary hedging
interest rates with respect to assets, which Interest Rate Agreements are
structured substantially similar to the existing repurchase program), the
aggregate amount of all obligations under such Interest Rate Agreements at any
time shall be deemed to be equal to the excess of (i) the aggregate balances at
such time of the repurchase accounts maintained under such U.S. Treasury
securities repurchase programs over (ii) the sum of (x) the aggregate portion
of such balances constituting net sale proceeds of U.S. Treasury securities
plus (y) $7,000,000.

     “Internal Revenue Code” means the Internal Revenue Code of 1986, as
amended, together with the rules and regulations promulgated thereunder.

     “Investment” means, with respect to any Person and whether or not such
investment constitutes a controlling interest in such Person (a) the purchase
or other acquisition of any share of capital stock, evidence of Debt, or other
security issued by any other Person; (b) any loan, advance, or extension of
credit to, or contribution (in the form of money or goods) to the capital of,
or the acquisition of a sale leaseback asset from and the lease thereof to, any
other Person; (c) any guaranty of the Debt of any other Person; (d) any other
investment in any other Person; and (e) any commitment or option to make an
Investment in any other Person.

	 	 	 
	9	 	
Third Amended and Restated Credit Agreement

 

 

     “Investment Company Act” means the Investment Company Act of 1940, as
amended, and the rules and regulations promulgated thereunder.

     “Investment Grade Rating” means a Credit Rating of BBB- or higher by S&P,
Baa3 or higher by Moody’s, or the equivalent or higher of either such rating by
another Rating Agency.

     “LC” means the letter(s) of credit issued hereunder in the form agreed
upon among Borrower, LC Issuer, and the beneficiary thereof at the time of
issuance thereof pursuant to the terms and conditions of Section 2.3 hereof.

     “LC Agreement” means a letter of credit application and agreement (in form
and substance satisfactory to Administrative Agent) submitted by Borrower to LC
Issuer for an LC for its own account.

     “LC Commitment” means an amount (subject to availability, reduction, or
cancellation as herein provided) equal to $40,000,000.

     “LC Exposure” means, at any time and without duplication, the sum of (a)
the aggregate undrawn portion of all uncancelled and unexpired LCs plus (b) the
aggregate unpaid reimbursement obligations of Borrower in respect of drawings
of drafts under any LC.

     “LC Issuer” means Bank of America and its permitted successors as “LC
Issuer” under this Agreement.

     “LC Request” means a request pursuant to Section 2.3(a), substantially in
the form of
Exhibit B-2.

     “LC Subfacility” means a subfacility for the issuance of LCs (the LC
Exposure in connection with which may never exceed the LC Commitment), as
described in and subject to the limitations of
Section 2.3.

     “Lenders” means, on any date of determination, the financial institutions
named on Schedule 2, and subject to the terms and conditions of this Agreement,
their respective successors and assigns, but not any Participant who is not
otherwise a party to this Agreement, and including, as the context requires, LC
Issuer and Swing Line Lender.

     “Lending Office” means, for each Lender and for each Type of Loan, the
“Lending Office” of such Lender (or of an Affiliate of such Lender) designated
for such Type of Loan on Schedule 2 or in the applicable Assignment and
Acceptance Agreement or such other office of such Lender (or an Affiliate of
such Lender) as such Lender may from time to time specify to Administrative
Agent and Borrower by written notice in accordance with the terms hereof as the
office by which its Loans of such Type are to be made and maintained.

     “Lien” as applied to the property of any Person means: (a) any security
interest, encumbrance, mortgage, deed to secure debt, deed of trust, pledge,
lien, charge, ground lease, or lease constituting a Capitalized Lease
Obligation, conditional sale, or other title retention agreement, or other
security title or encumbrance of any kind in respect of any property of such
Person, or upon the income or profits therefrom; (b) any arrangement, express
or implied, under which any property of such Person is transferred,
sequestered, or otherwise identified for the purpose of subjecting the same to
the payment of Debt or performance of any other obligation in priority to the
payment of the general, unsecured creditors of such Person; (c) the filing of
any financing statement under the Uniform Commercial Code or its

	 	 	 
	10	 	
Third Amended and Restated Credit Agreement

 

 

equivalent in any jurisdiction; and (d) any agreement by such Person to grant,
give, or otherwise convey any of the foregoing.

     “Loan Documents” means (a) this Agreement, the Notes, any Subsidiary Bank
Guaranty, LCs, and LC Agreements, (b) all agreements, documents, or instruments
in favor of Administrative Agent, LC Issuer, or the Lenders ever delivered
pursuant to this Agreement or otherwise delivered in connection with all or any
part of the Obligations on and after the Effective Date, and (c) any and all
future renewals, extensions, restatements, reaffirmations, amendments of, or
supplements to, all or any part of the foregoing.

     “Loans” means any amount disbursed (a) by one or more Lenders to or for
the account of Borrower under the Loan Documents (whether under the Revolving
Facility, the LC Subfacility, or the Swing Line Subfacility), whether such
amount constitutes an original disbursement of funds or the continuation of any
amount outstanding, or payment of a draft under an LC, or (b) by any Lender in
accordance with, and to satisfy the obligations of any Borrower or any
Subsidiary of Borrower under, any Loan Document.

     “Material Adverse Effect” means a materially adverse effect on (a) the
business, assets, liabilities, financial condition, results of operations, or
business prospects of Borrower and its Consolidated Subsidiaries taken as a
whole, (b) the ability of Borrower to perform its obligations under any Loan
Document to which it is a party which does not result from a material adverse
effect on the items described in the immediate preceding clause (a), (c) the
validity or enforceability of any of the Loan Documents, (d) the rights and
remedies of the Lenders and Administrative Agent under any of such Loan
Documents, or (e) the timely payment of the principal of or interest on the
Loans or other amounts payable in connection therewith. Except with respect to
representations made or deemed made by Borrower or any Subsidiary in any of the
other Loan Documents to which it is a party, all determinations of materiality
shall be made by the Requisite Lenders in their reasonable judgment unless
expressly provided otherwise.

     “Material Contract” means any contract or other arrangement (other than
Loan Documents), whether written or oral, to which Borrower or any Subsidiary
is a party as to which the breach, nonperformance, cancellation, or failure to
renew by any party thereto could have a Material Adverse Effect.

     “Material Plan” means at any time a Plan or Plans having aggregate
Unfunded Liabilities in excess of $10,000,000.

     “Material Subsidiary” means, as of the date of any determination thereof,
any Subsidiary which has total assets having a value (determined in accordance
with the market valuation method pursuant to GAAP) greater than or equal to
$60,000,000.

     “Maximum Amount” and “Maximum Rate” respectively mean, for each Lender,
the maximum non-usurious amount and the maximum non-usurious rate of interest
which, under Applicable Law, such Lender is permitted to contract for, charge,
take, reserve, or receive on the Obligations.

     “Money Market Rate” means as to any Swing Line Loan made pursuant to
Section 2.2, a rate per annum equal to (a) prior to the second anniversary of
the Effective Date, the sum of (i) 1.50% and (ii) the rate per annum equal to
Bank of America’s cost of funds, and (b) on or after the second anniversary of
the Effective Date, the sum of (i) 2.00% and (ii) the rate per annum equal to
Bank of America’s cost of funds.

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

	 	 	 
	11	 	
Third Amended and Restated Credit Agreement

 

 

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

     “Net Proceeds” means, with respect to an Equity Issuance by a Person, the
aggregate amount of all cash (including any cash received by way of deferred
payment pursuant to a promissory note, or otherwise, but only as and when
received) received by such Person in respect of such Equity Issuance net of
investment banking fees, legal fees, accountants fees, underwriting discounts
and commissions, and other customary fees and expenses actually incurred by
such Person in connection with such Equity Issuance.

     “Non-Continuing Lender” has the meaning given that term in Section 12.16.

     “Notes” means, at the time of any determination thereof, all outstanding
and unpaid Revolving Notes and Swing Line Notes.

     “Notice of Borrowing” means a notice in the form of Exhibit B-1 to be
delivered to Administrative Agent pursuant to Section 2.4(a), evidencing
Borrower’s request for a borrowing of Loans.

     “Notice of Continuation” means a notice in the form of Exhibit C to be
delivered to Administrative Agent pursuant to Section 2.9, evidencing
Borrower’s request for the Continuation of a Eurodollar Loan.

     “Notice of Conversion” means a notice in the form of Exhibit D to be
delivered to Administrative Agent pursuant to Section 2.10, evidencing
Borrower’s request for the Conversion of a Loan from one Type to another Type.

     “Notice of Default” has the meaning given that term in Section 11.4.

     “Obligations” means, individually and collectively: (a) the aggregate
principal balance of and all accrued and unpaid interest on, all Loans, and (b)
all other indebtedness, liabilities, obligations, covenants and duties of
Borrower owing to Administrative Agent, LC Issuer, Swing Line Lender, or any
Lender of every kind, nature and description, under or in respect of this
Agreement or any of the other Loan Documents, including, without limitation,
all Fees and indemnification obligations, whether direct or indirect, absolute
or contingent, due or not due, contractual or tortious, liquidated or
unliquidated, and whether or not evidenced by any promissory note.

     “Option to Extend” has the meaning given that term in Section 2.12.

     “Other Relevant Subsidiary” means any Subsidiary, individually or together
with other Subsidiaries, the occurrence of any of the events described in
Sections 10.1(f) or 10.1(g) with respect to which could reasonably be expected
to have a Material Adverse Effect.

     “Other Taxes” has the meaning given that term in Section 4.6(b).

     “Participant” has the meaning given that term in Section 12.4(d).

	 	 	 
	12	 	
Third Amended and Restated Credit Agreement

 

 

     “PBGC” means the Pension Benefit Guaranty Corporation and any successor
agency.

     “Permitted Liens” means, as to any Person: (a) Liens securing taxes,
assessments, and other charges or levies imposed by any Governmental Authority
(excluding any Lien imposed pursuant to any of the provisions of ERISA) or the
claims of materialmen, mechanics, carriers, warehousemen, or landlords for
labor, materials, supplies, or rentals incurred in the ordinary course of
business, which are not at the time required to be paid or discharged under
Section 7.6; (b) Liens consisting of deposits or pledges made, in the ordinary
course of business, in connection with, or to secure payment of, obligations
under workmen’s compensation, unemployment insurance, or similar Applicable
Laws; (c) Liens in favor of Administrative Agent for the benefit of the
Lenders; and (d) covenants, restrictions, rights of way, easements, and other
matters of public record, and other matters to which like properties are
commonly subject, that singly or in the aggregate do not materially and
adversely affect the value or marketability of, or materially interfere with
the use or enjoyment of any asset of such Person.

     “Permitted Preferred Stock” means (i) preferred stock that is issued from
time to time by a Subsidiary to the SBA having an aggregate stated value not
exceeding $7,000,000 at any one time outstanding, or (ii) preferred stock that
is issued from time to time by a Subsidiary for the purpose of qualifying such
Subsidiary as a real estate investment trust under Sections 856 through 860 of
the Internal Revenue Code and having an aggregate stated value not exceeding
$500,000 at any one time outstanding; provided that, in any event Permitted
Preferred Stock shall not include any voting stock.

     “Person” means an individual, corporation, partnership, limited liability
company, association, trust or unincorporated organization, or a government or
any agency or political subdivision thereof.

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

     “Post-Default Rate” means (a) prior to the second anniversary of the
Effective Date, a rate per annum equal to the lesser of (i) the Maximum Rate
and (ii) the sum of 2.0% plus the Base Rate as in effect from time to time and
(b) on or after the second anniversary of the Effective Date, a rate per annum
equal to the lesser of (i) the Maximum Rate and (ii) the sum of 2.50% plus the
Base Rate as in effect from time to time.

     “Principal Debt” means, at any time of determination thereof, the
aggregate unpaid principal balance of all Loans.

     “Principal Office” means the principal office of Bank of America,
presently located at 901 Main Street, 66th Floor, Dallas, Texas 75202.

     “Priority Debt” means, without duplication, the sum of (i) all Secured
Debt of Borrower and its Consolidated Subsidiaries, (ii) all unsecured Debt of
Consolidated Subsidiaries which are not Subsidiary Bank Guarantors, (iii) all
secured liabilities under Interest Rate Agreements of Borrower and its
Consolidated Subsidiaries (other than liabilities under Interest Rate
Agreements entered into for the purpose of hedging currency risks with respect
to Debt which are otherwise covered by the preceding clause (i)), determined in
accordance with the definition of Interest Rate Agreement, (iv) all unsecured
liabilities of Consolidated Subsidiaries which are not Subsidiary Bank
Guarantors under Interest Rate Agreements (other than liabilities under
Interest Rate Agreements entered into for the purpose of hedging

	 	 	 
	13	 	
Third Amended and Restated Credit Agreement

 

 

currency risks with respect to Debt which are otherwise covered by the
preceding clause (ii)), determined in accordance with the definition of
Interest Rate Agreement (excluding in the case of the preceding clauses (i),
(ii), (iii), and (iv), any Debt or liability owing to Borrower or another
Consolidated Subsidiary), and (v) all Unfunded Liabilities.

     “Quarterly Date” means the last Business Day of March, June, September,
and December in each year, the first of which shall be June 30, 2003.

     “Rating Agency” means S&P, Moody’s, or any other nationally recognized
securities rating agency selected by Borrower and acceptable to the Requisite
Lenders.

     “Reference 10-K” means the Form 10-K filed by Borrower with the Securities
and Exchange Commission for the fiscal year ending December 31, 2002.

     “Register” has the meaning given that term in Section
12.4(b).

     “REIT” means Allied Capital REIT, Inc., a Maryland
corporation.

     “Requisite Lenders” means (a) on any date of determination prior to the
Termination Date, those Lenders holding 66 2/3% or more of the aggregate
Commitments of all Lenders; and (b) on any date of determination on or after
the Termination Date, those Lenders holding 66 2/3% of the aggregate Principal
Debt.

     “Reserve Requirement” means, at any time, the maximum rate at which
reserves (including, without limitation, any marginal, special, supplemental,
or emergency reserves) are required to be maintained under regulations issued
from time to time by the Board of Governors of the Federal Reserve System (or
any successor) by member banks of the Federal Reserve System against, in the
case of Eurodollar Loans, “Eurocurrency liabilities” (as such term is used in
Regulation D of the Board of Governors of the Federal Reserve System, as
amended). Without limiting the effect of the foregoing, the Reserve
Requirement shall reflect any other reserves required to be maintained by such
member banks with respect to any category of liabilities which includes
deposits by reference to which the Adjusted Eurodollar Rate is to be
determined, or (ii) any category of extensions of credit or other assets which
include Eurodollar Loans. The Adjusted Eurodollar Rate shall be adjusted
automatically on and as of the effective date of any change in the Reserve
Requirement.

     “Revolving Facility” means the credit facility as described in and subject
to the limitations of Section 2, including the Swing Line Subfacility and the
LC Subfacility.

     “Revolving Loan” means any Loan under the Revolving Facility other than a
Swing Line Loan or the issuance of an LC.

     “Revolving Note” means a promissory note substantially in the form of
Exhibit E-1, and all renewals and extensions of all or any part thereof.

     “RIC” means a Person qualifying for treatment as a “regulated investment
company” under the Internal Revenue Code.

     “SBA”
means the United States Small Business Administration.

     “SBIC” means Allied Investment Corporation, a Maryland corporation.

	 	 	 
	14	 	
Third Amended and Restated Credit Agreement

 

 

     “Secured Debt” means, with respect to any Person, any Debt of such Person
that is secured in any manner by any Lien.

     “Senior Debt” means Debt under the Senior Note Agreements or any similar
facility entered into by Borrower or its Consolidated Subsidiaries.

     “Senior Note Agreements” mean (a) the Note Agreement, dated as of April
30, 1998, among Borrower and the purchasers parties thereto, pursuant to which
Borrower has issued its $140,000,000 7.055% Senior Notes, Series A, due May 30,
2003, its $30,000,000 7.168% Senior Notes, Series B, due May 30, 2005, and its
$10,000,000 9.530% Senior Notes, Series C, due May 30, 2005, and any
replacement thereof; (b) the Note Agreement, dated as of May 1, 1999, among
Borrower and the purchasers parties thereto, pursuant to which Borrower has
issued its $112,000,000 7.39% Senior Notes, Series A, due May 1, 2004, and its
$25,000,000 7.49% Senior Notes, Series B, due May 1, 2006, and any replacement
thereof; (c) the Note Agreement, dated as of November 15, 1999, among Borrower
and the purchasers parties thereto, pursuant to which Borrower has issued its
$102,000,000 8.51% Senior Notes, due November 15, 2004, and any replacement
thereof; (d) the Note Agreement, dated as of October 15, 2000, among Borrower
and the purchasers parties thereto, pursuant to which Borrower has issued its
$115,000,000 8.54% Senior Notes, Series A, due October 15, 2005 and its
$10,000,000 Floating Rate Senior Notes, Series B, due October 15, 2005, and any
replacement thereof; and (e) the Note Agreement, dated as of October 15, 2001,
among Borrower and the purchasers parties thereto, pursuant to which Borrower
has issued its $150,000,000 7.16% Senior Notes due October 15, 2006, and any
replacement thereof.

     “Senior Notes” means the notes issued by Borrower pursuant to the Senior
Note Agreements.

     “Solvent” means, when used with respect to any Person, that (a) the fair
value and the fair salable value of its assets (excluding any Debt due from any
affiliate of such Person) are each in excess of the fair valuation of its total
liabilities (including all contingent liabilities); (b) such Person is able to
pay its debts or other obligations in the ordinary course as they mature; and
(c) such Person has capital not unreasonably small to carry on its business and
all business in which it proposes to be engaged.

     “S&P” means Standard & Poor’s Rating Group, a division of McGraw-Hill
Companies, Inc.

     “Special Purpose Subsidiary” means a Subsidiary (other than a Consolidated
Subsidiary) of Borrower the sole purpose of which is to purchase assets from
Borrower or a Subsidiary of Borrower and to effect a sale to a third party
(directly or through one or more Subsidiaries of such purchasing Subsidiary) of
the assets so purchased or of securities or Debt secured by or evidencing an
interest in such assets or in the holder thereof, and matters incidental to the
foregoing.

     “Subfacility” means, any of the LC Subfacility or the Swing Line
Subfacility.

     “Subsidiary” means, for any Person, any corporation, partnership, limited
liability company, or other entity of which at least a majority of the
securities or other ownership interests having by the terms thereof ordinary
voting power to elect a majority of the board of directors or other Persons
performing similar functions of such corporation, partnership, or other entity
(without regard to the occurrence of any contingency) is at the time directly
or indirectly owned or controlled by such Person or one or more Subsidiaries of
such Person or by such Person and one or more Subsidiaries of such Person.
Notwithstanding the foregoing, any Person that is accounted for under GAAP as a
portfolio Investment of Borrower or a Subsidiary shall not be a Subsidiary of
Borrower or such Subsidiary.

	 	 	 
	15	 	
Third Amended and Restated Credit Agreement

 

 

     “Subsidiary Bank Guarantor” means any Consolidated Subsidiary which
undertakes to be liable for the Obligations of Borrower under the Loan
Documents by execution of a Subsidiary Bank Guaranty.

     “Subsidiary Bank Guaranty” means (a) any agreement pursuant to which a
Consolidated Subsidiary has guaranteed the Obligations of Borrower under the
Loan Documents and (b) any amendments, modifications, supplements,
restatements, ratifications, or reaffirmations of any Subsidiary Bank Guaranty
made in accordance with the Loan Documents.

     “Subsidiary Senior Note Guaranty” means any agreement pursuant to which a
Consolidated Subsidiary has guaranteed the Debt of Borrower under the Senior
Notes.

     “Swing Line Commitment” means an amount (subject to reduction or
cancellation as herein provided) equal to $50,000,000.

     “Swing Line Lender” means Bank of America and its permitted successors as
“Swing Line Lender” under this Agreement.

     “Swing Line Loan” means any Loan made under the Swing Line Subfacility.

     “Swing Line Note” means a promissory note substantially in the form of
Exhibit E-2, and all renewals and extensions of all or any part thereof.

     “Swing Line Subfacility” means the subfacility under the Revolving
Facility (the portion of the Loans attributable to which may never exceed in
the aggregate $50,000,000), as described in, and subject to the limitations of,
Section 2.2.

     “Swing Principal Debt” means, on any date of determination, the aggregate
unpaid principal amount of all Loans outstanding under the Swing Line
Subfacility.

     “Syndication Agent” means Riggs Bank N.A. and its permitted successors or
assigns as “Syndication Agent” under this Agreement.

     “Taxes” means, for any Person, taxes, assessments, duties, imposts or
other governmental charges, deductions, withholdings, or levies imposed upon
such Person, its income, or any of its properties, franchises, or assets, and
all liabilities with respect thereto.

     “Termination Date” means the earlier of either (a) April 18, 2005, or, if
the Option to Extend has been exercised by Borrower pursuant to Section 2.12,
April 18, 2006, or (b) such earlier date upon which the whole of the
Commitments are terminated pursuant to Sections 2.12, 10.2(a), or otherwise.

     “Type” with respect to any Loan, refers to whether such Loan is a
Eurodollar Loan or Base Rate Loan.

     “Unfunded Liabilities” means, with respect to any Plan at any time, the
amount (if any) by which (a) the value of all benefit liabilities under such
Plan, determined on a plan termination basis using the assumptions prescribed
by the PBGC for purposes of Section 4044 of ERISA, exceeds (b) the fair market
value of all Plan assets allocable to such liabilities under Title IV of ERISA
(excluding any accrued but unpaid contributions), all determined as of the then
most recent valuation date for such Plan.

	 	 	 
	16	 	
Third Amended and Restated Credit Agreement

 

 

     “Unrestricted Subsidiary” means a Subsidiary of Borrower (a) that is not a
Consolidated Subsidiary or (b) is a Consolidated Subsidiary the sole purpose of
which is to acquire, hold, manage, and dispose of Foreclosure Property, and
matters incidental to such purposes.

     “Wholly Owned” when used in connection with any Subsidiary means any
corporation, partnership, limited liability company, or other entity of which
all of the equity securities or other ownership interests (other than Permitted
Preferred Stock and, in the case of a corporation, directors’ qualifying
shares) are so owned or controlled.

     1.2      General; References to Times. References in this Agreement to
“Sections,” “Exhibits,” and “Schedules” are to sections, exhibits, and
schedules herein and hereto unless otherwise indicated. References in this
Agreement to any document, instrument, or agreement (a) shall include all
exhibits, schedules, and other attachments thereto, (b) shall include all
documents, instruments, or agreements issued or executed in replacement
thereof, to the extent permitted hereby and (c) shall mean such document,
instrument, or agreement, or replacement or predecessor thereto, as amended,
supplemented, restated, or otherwise modified from time to time to the extent
permitted hereby and in effect at any given time. Wherever from the context it
appears appropriate, each term stated in either the singular or plural shall
include the singular and plural, and pronouns stated in the masculine,
feminine, or neuter gender shall include the masculine, the feminine and the
neuter. Unless explicitly set forth to the contrary, a reference to
“Subsidiary” means a Subsidiary of Borrower or a Subsidiary of such Subsidiary,
and a reference to an “Affiliate” means a reference to an Affiliate of
Borrower. Titles and captions of Sections, subsections, and clauses in this
Agreement are for convenience only, and neither limit nor amplify the
provisions of this Agreement. Unless otherwise indicated, all references to
time are references to Dallas, Texas, time.

     1.3     Accounting Principles. All accounting and financial terms used in the
Loan Documents and the compliance with each financial covenant therein shall be
determined in accordance with GAAP, and, all accounting principles shall be
applied on a consistent basis so that the accounting principles in a current
period are comparable in all material respects to those applied during the
preceding comparable period. If Borrower or any Lender determines that a
change in GAAP from that in effect on the date hereof has altered the treatment
of certain financial data to its detriment under this Agreement, such party
may, by written notice to the others and Administrative Agent not later than 30
days after Borrower’s delivery of any financial statements pursuant to Section
8.1 or 8.2 reflecting such change in GAAP, request renegotiation of the
financial covenants affected by such change. If Borrower and Requisite Lenders
have not agreed on revised covenants within 30 days after delivery of such
notice, then, for purposes of this Agreement, GAAP will mean generally accepted
accounting principles on the date just prior to the date on which the change
that gave rise to the renegotiation occurred.

SECTION 2.      CREDIT FACILITY.

     2.1      Loans. Subject to the terms and conditions hereof, during the period
from the Effective Date to but excluding the Termination Date, each Lender
severally and not jointly agrees to make Revolving Loans to Borrower in an
aggregate principal amount at any one time outstanding up to, but not
exceeding, the amount of such Lender’s Commitment; provided, however, that on
any date of determination, the Commitment Usage shall never exceed the
aggregate amount of the Commitments as in effect from time to time. Subject to
the terms and conditions of this Agreement, during the period from the
Effective Date to but excluding the Termination Date, Borrower may borrow,
repay, and reborrow Revolving Loans hereunder.

     2.2      Swing Line Subfacility.

	 	 	 
	17	 	
Third Amended and Restated Credit Agreement

 

 

		
	 	     (a)     Swing Line Loans. For the convenience of the parties and as an
integral part of the transactions contemplated by the Loan Documents,
Swing Line Lender may make any requested Loan of $250,000 or a greater
integral multiple thereof, subject to those terms and conditions
applicable to Loans set forth in clauses (a), (b), and (c) of the first
sentence of Section 5.2, directly to Borrower as a Swing Line Loan without
requiring any other Lender to fund its ratable portion thereof unless and
until Section 2.2(c) is applicable; provided that: (i) each such Swing
Line Loan must occur on a Business Day prior to, and not on or after, the
Termination Date; (ii) the aggregate Swing Principal Debt outstanding on
any date of determination shall not exceed the Swing Line Commitment;
(iii) on any date of determination, the Commitment Usage shall never
exceed the aggregate amount of the Commitments of the Lenders; (iv) such
Swing Line Loan shall not be used to refinance any outstanding Swing Line
Loan; (v) each Swing Line Loan shall be at a rate per annum equal to the
lesser of (x) the Money Market Rate, and (y) the Maximum Rate; provided
further that at any time after Revolving Lenders are required to fund
their participations in any Swing Line Loan pursuant to Section 2.2(c),
such Loan shall bear interest at the Post-Default Rate; and (vi) no
additional Swing Line Loan shall be made at any time after any Lender has
refused, notwithstanding the requirements of Section 2.2(c), to fund its
participation in any Swing Line Loan as provided in such Section, and
until such funding shall occur or until the Swing Line Loan has been
repaid.
	 
	 	     (b)     Borrowing Procedure and Repayment. Each Swing Line Loan under
the Swing Line Subfacility shall be available and may be prepaid on same
day telephonic notice from Borrower to Swing Line Lender and
Administrative Agent, so long as such notice is received by Swing Line
Lender and Administrative Agent prior to 1:00 p.m. Dallas, Texas time.
Promptly after receipt by Swing Line Lender of any telephonic notice,
Swing Line Lender will confirm with Administrative Agent (by telephone or
in writing) that Administrative Agent has also received such notice and,
if not, Swing Line Lender will notify Administrative Agent (by telephone
or in writing) of the contents thereof. Unless Swing Line Lender has
received notice (by telephone or in writing) from Administrative Agent
prior to 2:00 p.m. Dallas, Texas time, on the date of the proposed Swing
Line Loan (i) directing Swing Line Lender not to make such Swing Line Loan
as a result of the limitations set forth in the first proviso to the first
sentence of Section 2.2(a), or (ii) that one or more of the applicable
conditions specified in Section 5.2 is not then satisfied, then, subject
to the terms and conditions hereof, Swing Line Lender will, not later than
3:00 p.m. Dallas, Texas time, on the borrowing date specified in such
notice, make the amount of its Swing Line Loan available to Borrower. The
principal amount of each Swing Line Loan shall be repaid in full not later
than the eighth Business Day after the date on which such Swing Line Loan
was funded. All accrued and unpaid interest on any Swing Line Loan shall
be repaid monthly, in arrears, on the first Business Day of each calendar
month.
	 
	 	     (c)     Participations. Immediately upon the making of a Swing Line
Loan, each Lender shall be deemed to, and hereby irrevocably and
unconditionally agrees to, purchase from Swing Line Lender a risk
participation in such Swing Line Loan in an amount equal to its Commitment
Percentage of such Swing Line Loan. If Borrower fails to repay any Swing
Line Loan as provided herein, and funds cannot be or are not advanced
under the Revolving Facility to satisfy the obligations under the Swing
Line Subfacility (and in any event upon the earlier to occur of a Default
or the Termination Date), Administrative Agent shall timely notify each
Lender of such failure and of the date and amount not paid. No later than
the close of business on the date such notice is given (if such notice was
given prior to 12:00 noon on any Business Day, or, if made at any other
time, on the next Business Day following the date of such notice), each
Lender shall fund its participation in the relevant Swing Line Loan, and
each Lender shall make available to Administrative Agent for the account
of Swing Line Lender in immediately available funds such

	 	 	 
	18	 	
Third Amended and Restated Credit Agreement

 

 

		
	 	Lender’s ratable part of such unpaid principal amount. All such amounts
payable by any Lender shall include interest thereon from the date on
which such payment is payable by such Lender to, but not including, the
date such amount is paid by such Lender to Administrative Agent, at the
Federal Funds Rate. Each payment by Borrower of all or any part of any
Swing Line Loan shall be paid to Administrative Agent for the ratable
benefit of Swing Line Lender and those Lenders who have funded their
participations in such Swing Line Loan under this Section 2.2(c); provided
that, with respect to any such participation, all interest accruing on the
Swing Principal Debt to which such participation relates prior to the date
of funding such participation shall be payable solely to Swing Line Lender
for its own account.

          2.3      LC Subfacility.

		
	 	     (a)     LC Commitment. Subject to the terms and conditions of this
Agreement and Applicable Law, LC Issuer agrees, in reliance upon the
agreement of the other Lenders in this Section 2.3, to issue LCs and to
amend or renew LCs previously issued by it, upon Borrower’s application
therefor (denominated in Dollars) by delivering to LC Issuer (with a copy
to Administrative Agent) a properly completed LC Request and an LC
Agreement with respect thereto no later than 10:00 a.m. Dallas, Texas time
three Business Days before such LC is to be issued or amended; provided
that, (i) on any date of determination and after giving effect to any LC
to be issued or amended on such date, the Commitment Usage shall never
exceed the aggregate amount of the Commitments then in effect, (ii) on any
date of determination and after giving effect to any LC to be issued or
amended on such date, the LC Exposure shall never exceed the LC
Commitment, (iii) at the time of issuance or amendment of such LC, no
Default or Event of Default shall have occurred and be continuing, and
(iv) each LC must expire no later than the earlier of the 30th day prior
to the Termination Date, or one year from its issuance; provided further
that, (x) any LC may provide for automatic renewal for periods of up to
one year (but no renewal period may extend beyond the 30th day prior to
the Termination Date) unless LC Issuer has given prior notice to the
applicable beneficiary of its election not to extend such LC; (y) LC
Issuer shall be under no obligation to issue any LC if (A) any order,
judgment, or decree of any Governmental Authority or arbitrator shall by
its terms purport to enjoin or restrain LC Issuer from issuing such LC, or
any law applicable to LC Issuer or any request or directive (whether or
not having the force of law) from any Governmental Authority with
jurisdiction over LC Issuer shall prohibit, or request that LC Issuer
refrain from, the issuance of letters of credit generally or such LC in
particular or shall impose upon LC Issuer with respect to such LC any
restriction, reserve, or capital requirement (for which LC Issuer is not
otherwise compensated hereunder) not in effect on the Effective Date, or
shall impose upon LC Issuer any unreimbursed loss, cost, or expense which
was not applicable on the Effective Date and which LC Issuer in good faith
deems material to it, or (B) the issuance of such LC would violate one or
more policies of LC Issuer; and (z) LC Issuer shall be under no obligation
to amend any LC if (A) LC Issuer would have no obligation at such time to
issue such LC in its amended form under the terms hereof, or (B) the
beneficiary of such LC does not accept the proposed amendment to such LC.
Promptly after receipt of any LC Request and LC Agreement, LC Issuer will
confirm with Administrative Agent (by telephone or in writing) that
Administrative Agent has received a copy of such LC Request and LC
Agreement from Borrower and, if not, LC Issuer will provide Administrative
Agent with a copy thereof. Upon receipt by LC Issuer of confirmation from
Administrative Agent that the requested issuance or amendment is permitted
in accordance with the terms hereof, LC Issuer shall, on the requested
date, issue a LC for the account of Borrower or enter into the applicable
amendment, as the case may be, in each case in accordance with LC Issuer’s
usual and customary business practices. Within the foregoing limits, and
subject to the terms and conditions hereof, Borrower’s ability to obtain
LCs shall be fully revolving; accordingly, Borrower may, prior to the
Termination Date, obtain LCs to replace LCs that have

	 	 	 
	19	 	
Third Amended and Restated Credit Agreement

 

 

		
	 	expired or that have been drawn upon and reimbursed. All Existing Letters
of Credit shall be deemed to have been issued pursuant hereto, and from
and after the Effective Date shall be subject to and governed by the terms
and conditions hereof.

		
	 	     (b)     Auto-Renewal. If Borrower so requests in any applicable LC
Agreement, LC Issuer may, in its sole and absolute discretion, agree to
issue an LC that has automatic renewal provisions (each, an “Auto-Renewal
LC”); provided that any such Auto-Renewal LC must permit LC Issuer to
prevent any such renewal at least once in each twelve-month period
(commencing with the date of issuance of such LC) by giving prior notice
to the beneficiary thereof not later than a day (the “Nonrenewal Notice
Date”) in each such twelve-month period to be agreed upon at the time such
LC is issued. Unless otherwise directed by LC Issuer, Borrower shall not
be required to make a specific request to LC Issuer for any such renewal.
Once an Auto-Renewal LC has been issued, Lenders shall be deemed to have
authorized (but may not require) LC Issuer to permit the renewal of such
LC at any time to an expiry date not later than the 30th day prior to the
Termination Date; provided, however, that LC Issuer shall not permit any
such renewal if (i) LC Issuer has determined that it would have no
obligation at such time to issue such LC in its renewed form under the
terms hereof (by reason of the provisions of Section 2.3(a) or otherwise),
or (ii) it has received notice (which may be by telephone or in writing)
on or before the day that is two Business Days before the Nonrenewal
Notice Date (A) from Administrative Agent that the Requisite Lenders have
elected not to permit such renewal or (B) from Administrative Agent, any
Lender, or Borrower that one or more of the applicable conditions
specified in Section 5.2 is not then satisfied.

		
	 	     (c)     Participations. Immediately upon the issuance by LC Issuer of
any LC, LC Issuer shall be deemed to have sold and transferred to each
other Lender, and each other such Lender shall be deemed irrevocably and
unconditionally to have purchased and received from LC Issuer, without
recourse or warranty, an undivided interest and participation, equal to
such Lender’s Commitment Percentage of such LC, the LC Agreement, and all
rights of LC Issuer in respect thereof (other than rights to receive
certain fees provided for in Section 3.8(d)).

		
	 	     (d)     Reimbursement Obligations. To induce LC Issuer to issue and
maintain LCs and to induce Lenders to participate in issued LCs, Borrower
agrees to pay or reimburse LC Issuer (i) on the date on which any draft is
presented under any LC, the amount of any draft paid or to be paid by LC
Issuer, and (ii) promptly, upon demand, the amount of any applicable fees
(in addition to the Fees described in Section 3.8) which LC Issuer
customarily charges to a Person similarly situated in the ordinary course
of its business for amending LC Agreements, for honoring drafts under
letters of credit, and taking similar action in connection with letters of
credit; provided that, (x) if Borrower has not reimbursed LC Issuer for
any drafts paid or to be paid within 24 hours of demand therefor by LC
Issuer, Administrative Agent is hereby irrevocably authorized to fund such
reimbursement obligation as a Loan to the extent of availability, and if
the conditions precedent in this Agreement for such a Loan (other than any
notice requirements or minimum funding amounts) have, to Administrative
Agent’s knowledge, been satisfied. The proceeds of such Loan shall be
remitted by Administrative Agent directly to LC Issuer in payment of
Borrower’s reimbursement obligation with respect to the draft under the
LC; and (y) if for any reason, funds are not advanced pursuant to this
Agreement, then Borrower’s reimbursement obligation shall continue to be
due and payable. Borrower’s obligations under this Section 2.3(d) shall
be absolute and unconditional under any and all circumstances and
irrespective of any setoff, counterclaim, or defense to payment which
Borrower may have at any time against LC Issuer or any other Person, and
shall be made in accordance with the terms and conditions of this
Agreement under all circumstances, including, without limitation, any of
the following circumstances: (A) any lack of validity or enforceability of
this Agreement or any of the Loan

	 	 	 
	20	 	
Third Amended and Restated Credit Agreement

 

 

		
	 	Documents; (B) the existence of any claim, setoff, defense, or other right
which Borrower may have at any time against a beneficiary named in a LC,
any transferee of any LC (or any Person for whom any such transferee may
be acting), LC Issuer, any Lender, or any other Person, whether in
connection with this Agreement, any LC, the transactions contemplated
herein, or any unrelated transactions (including any underlying
transaction between Borrower and the beneficiary named in any such LC);
(C) any draft, certificate, or any other document presented under the LC
proving to be forged, fraudulent, invalid, or insufficient in any respect
or any statement therein being untrue or inaccurate in any respect; and
(D) the occurrence of any Default or Event of Default. To the extent any
funding of a draft has been made by Lenders pursuant to Section 2.3(f) or
under this Agreement, LC Issuer shall promptly distribute any such
payments received from Borrower with respect to such draft to all Lenders
funding such draft according to their ratable share. Interest on any
amounts remaining unpaid by Borrower (and unfunded by the proceeds of a
Loan under this Agreement) under this clause at any time from and after
the date such amounts become payable until paid in full shall be payable
by Borrower to LC Issuer at the Post-Default Rate. In the event any
payment by Borrower received by LC Issuer with respect to an LC and
distributed to Lenders on account of their participations therein is
required to be returned under any of the circumstances described in
Section 12.15 (including pursuant to any settlement entered into by LC
Issuer in its discretion), each Lender which received such distribution
shall, upon demand by LC Issuer, contribute such Lender’s ratable portion
of the amount set aside, avoided, or recovered, together with interest at
the rate required to be paid by LC Issuer upon the amount required to be
repaid by it.

		
	 	     (e)     General. LC Issuer shall promptly notify Borrower of the date
and amount of any draft presented for honor under any LC; provided that,
failure to give any such notice shall not affect the obligations of
Borrower hereunder. LC Issuer shall make payment upon presentment of a
draft for honor unless it appears that presentment on its face does not
comply with the terms of such LC, regardless of whether (i) any default or
potential default under any other agreement has occurred and (ii) the
obligations under any other agreement have been performed by the
beneficiary or any other Person (and LC Issuer shall not be liable for any
obligation of any Person thereunder). LC Issuer and Lenders shall not be
responsible for, and Borrower’s reimbursement obligations for honored
drafts shall not be affected by, (i) any matter or event whatsoever
(including, without limitation, the validity, enforceability, sufficiency,
accuracy, or genuineness of documents or of any endorsements thereof, even
if such document should in fact prove to be in any respect invalid,
unenforceable, insufficient, inaccurate, fraudulent, or forged), (ii) any
dispute by Borrower or any Subsidiary with or any Borrower or any
Subsidiary’s claims, setoffs, defenses, counterclaims, or other rights
against LC Issuer, any Lender, or any other Person, or (iii) the
occurrence of any Default or Event of Default. However, nothing in this
Section 2.3 constitutes a waiver of the rights of Borrower to assert any
claim or defense based upon the gross negligence or willful misconduct of
LC Issuer or any Lender.

		
	 	     (f)     Obligation of Lenders. If Borrower fails to reimburse LC Issuer
as provided in Section 2.3(d) within 24 hours of the demand therefor and
funds cannot be advanced under the Revolving Facility or Swing Line
Subfacility to satisfy such reimbursement obligation, then LC Issuer shall
so notify Administrative Agent, which, in turn, shall promptly notify each
Lender of Borrower’s failure, of the date and amount of the draft paid,
and of such Lender’s Commitment Percentage thereof. Each Lender shall
promptly and unconditionally make available to Administrative Agent (for
the account of LC Issuer) in immediately available funds such Lender’s
Commitment Percentage of such unpaid reimbursement obligation, which funds
shall be paid to Administrative Agent on or before the close of business
on the Business Day on which such notice was given by Administrative Agent
to Lenders (if given prior to 1:00 p.m., Dallas, Texas time) or on the
next succeeding Business Day (if notice was given after 1:00 p.m., Dallas,

	 	 	 
	21	 	
Third Amended and Restated Credit Agreement

 

 

		
	 	Texas time). All such amounts payable by any such Lender shall include
interest thereon accruing at the Federal Funds Rate from the day the
applicable draft is paid by LC Issuer to (but not including) the date such
amount is paid by such Lender to Administrative Agent. Until each Lender
funds its participation pursuant to this Section 2.3(f) to reimburse LC
Issuer for any amount drawn under any LC, interest in respect of such
Lender’s Commitment Percentage of such amount shall be solely for the
account of LC Issuer. The obligations of Lenders to make payments to
Administrative Agent (for the account of LC Issuer) with respect to LCs
shall be irrevocable and not subject to any qualification or exception
whatsoever (other than the gross negligence or willful misconduct of LC
Issuer) and shall be made in accordance with the terms and conditions of
this Agreement under all circumstances, including, without limitation, any
of the following circumstances: (i) any lack of validity or enforceability
of this Agreement or any of the Loan Documents; (ii) the existence of any
claim, setoff, defense, or other right which Borrower may have at any time
against a beneficiary named in a LC, any transferee of any LC (or any
Person for whom any such transferee may be acting), LC Issuer, any Lender,
or any other Person, whether in connection with this Agreement, any LC,
the transactions contemplated herein, or any unrelated transactions
(including any underlying transaction between Borrower and the beneficiary
named in any such LC); (iii) any draft, certificate, or any other document
presented under the LC proving to be forged, fraudulent, invalid, or
insufficient in any respect or any statement therein being untrue or
inaccurate in any respect; and (iv) the occurrence of any Default or Event
of Default.

		
	 	     (g)     Duties of LC Issuer. LC Issuer agrees with each Lender that it
will exercise and give the same care and attention to each LC as it gives
to its other letters of credit, and LC Issuer’s sole liability to each
Lender with respect to such LCs (other than liability arising from the
gross negligence or willful misconduct of LC Issuer) shall be to
distribute promptly to each Lender who has acquired a participating
interest therein such Lender’s ratable portion of any payments made to LC
Issuer by Borrower pursuant to Section 2.3(d). Each Lender and Borrower
agree that, in paying any draft under any LC, LC Issuer shall not have any
responsibility to obtain any document (other than any documents required
by the respective LC) or to ascertain or inquire as to the validity or
accuracy of any such document or the authority of the Person delivering
any such document. LC Issuer, Lenders, and their respective
representatives shall not be liable to any other Lender or Borrower or any
of its Subsidiaries for the use which may be made of any LC or for any
acts or omissions of any beneficiary thereof in connection therewith. Any
action, inaction, error, delay, or omission taken or suffered by LC Issuer
or any of its representatives under or in connection with any LC, the
draws, drafts, or documents relating thereto, or the transmission,
dispatch, or delivery of any message or advice related thereto, if in good
faith and in conformity with such laws as LC Issuer or any of its
representatives may deem applicable and (unless otherwise expressly agreed
by LC Issuer and Borrower when an LC is issued) the rules of the
International Standby Practices 1998 published by the Institute of
International Banking Law & Practice (or such later version thereof as may
be in effect at the time of issuance) shall be binding upon the Borrower
and its Subsidiaries and Lenders and shall not place LC Issuer or any of
its representatives under any resulting liability to Borrower or any of
its Subsidiaries or any Lender. Any action taken or omitted to be taken
by LC Issuer under or in connection with any LC, if taken or omitted in
the absence of gross negligence or willful misconduct of LC Issuer, shall
not create for LC Issuer any resulting liability to Borrower or any of its
Subsidiaries or any Lender.

		
	 	     (h)     Cash Collateral. On the Termination Date, or on any date that
the LC Exposure exceeds the LC Commitment, or upon any demand by
Administrative Agent upon the occurrence and during the continuance of an
Event of Default, Borrower shall provide to Administrative Agent, for the
benefit of Lenders, (i) cash collateral in an amount equal to 100% of the
LC

	 	 	 
	22	 	
Third Amended and Restated Credit Agreement

 

 

		
	 	Exposure existing on such date, such cash and all interest thereon shall
constitute cash collateral for all LCs, and (ii) such additional cash
collateral as Administrative Agent may from time to time require, so that
the cash collateral amount shall at all times equal or exceed 100% the LC
Exposure. Any cash collateral deposited under this clause (h), and all
interest earned thereon, shall be held by Administrative Agent and
invested and reinvested at the expense and the written direction of
Borrower, in U.S. Treasury Bills with maturities of no more than 90 days
from the date of investment. Borrower hereby grants to Administrative
Agent, for the benefit of LC Issuer and the Lenders, a security interest
in all such cash and deposit accounts and all balances therein, and all
proceeds of the foregoing.

		
	 	     (i)     Indemnification. In addition to amounts payable as elsewhere
provided in this Agreement, Borrower hereby agrees to protect, indemnify,
pay, and save Administrative Agent, LC Issuer, and each Lender harmless
from and against any and all claims, demands, liabilities, damages, or
losses of, or owed to third parties (including any of the foregoing
arising from the negligence of Administrative Agent, LC Issuer, Lenders,
or their respective representatives), and any and all related costs,
charges, and expenses (including Attorney Costs), which Administrative
Agent, LC Issuer, or any Lender may incur or be subject to as a
consequence, direct or indirect, of (A) the issuance of any LC, or (B) the
failure of LC Issuer to honor a draft under such LC as a result of any act
or omission, whether rightful or wrongful, of any present or future
Governmental Authority; provided that, Borrower shall have no liability to
indemnify Administrative Agent, LC Issuer, or any Lender in respect of any
liability arising out of the gross negligence or willful misconduct of
such party or any representatives of such party. The provisions of and
undertakings and indemnifications set forth in this Section 2.3(i) shall
survive the satisfaction and payment of the Obligation and termination of
this Agreement.

		
	 	     (j)     LC Agreements. Although referenced in any LC, terms of any
particular agreement or other obligation to the beneficiary are not in any
manner incorporated herein. The fees and other amounts payable with
respect to each LC shall be as provided in this Agreement, drafts under
any LC shall be deemed part of the Obligations, and in the event of any
conflict between the terms of this Agreement and any LC Agreement, the
terms of this Agreement shall be controlling.

       2.4     Borrowing Procedures. The following procedures apply to all Loans
(except Swing Line Loans or the payment by LC Issuer of drafts under LCs):

		
	 	     (a)     Requesting Loans. Borrower shall give Administrative Agent
notice pursuant to a Notice of Borrowing or telephonic notice of each
borrowing of Revolving Loans. Each Notice of Borrowing shall be delivered
to Administrative Agent before 12:00 noon (i) in the case of Eurodollar
Loans, on the date two Business Days prior to the proposed date of such
borrowing and (ii) in the case of Base Rate Loans, on the proposed date of
such borrowing. Any such telephonic notice shall include all information
to be specified in a written Notice of Borrowing and shall be promptly
confirmed in writing by Borrower pursuant to a Notice of Borrowing sent to
Administrative Agent by telecopy on the same day of the giving of such
telephonic notice. Administrative Agent will transmit by telecopy the
Notice of Borrowing (or the information contained in such Notice of
Borrowing) to each Lender promptly upon receipt by Administrative Agent
(but in any event not later than 1:00 p.m. on the date of receipt
thereof). Each Notice of Borrowing or telephonic notice of each borrowing
shall be irrevocable once given and binding on Borrower.

		
	 	     (b)     Disbursements of Loan Proceeds. No later than 3:00 p.m. on the
date specified in the Notice of Borrowing, each Lender will make available
for the account of its applicable

	 	 	 
	23	 	
Third Amended and Restated Credit Agreement

 

 

		
	 	Lending Office to Administrative Agent at the Principal Office, in
immediately available funds, the proceeds of the Revolving Loan to be made
by such Lender. Subject to satisfaction of the applicable conditions set
forth in Section 5 for such borrowing, Administrative Agent will make the
proceeds of such borrowing available to Borrower no later than 4:00 p.m.
on the date and at the account specified by Borrower in such Notice of
Borrowing.

		
	 	     (c)     Lender Disbursements/Payments Generally. Unless any Lender has
notified Administrative Agent, prior to the date any disbursement or
payment is required to be made by it to Administrative Agent hereunder,
that such Lender will not make such disbursement or payment,
Administrative Agent may assume that such Lender has timely made such
disbursement or payment and may (but shall not be so required to), in
reliance thereon, make available a corresponding amount to the Person
entitled thereto. If and to the extent that such disbursement or payment
was not in fact made to Administrative Agent in immediately available
funds, then such Lender shall forthwith on demand pay to Administrative
Agent the amount thereof in immediately available funds, together with
interest thereon for the period from the date such amount was made
available by Administrative Agent to Borrower to the date such amount is
recovered by Administrative Agent (the “Compensation
Period”) at a rate
per annum equal to the Federal Funds Rate from time to time in effect. If
such Lender pays such amount to Administrative Agent, then such amount
shall constitute such Lender’s Revolving Loan included in the applicable
borrowing. If such Lender does not pay such amount forthwith upon
Administrative Agent’s demand therefor, Administrative Agent may make a
demand therefor upon Borrower, and Borrower shall pay such amount to
Administrative Agent, together with interest thereon for the Compensation
Period at a rate per annum equal to the rate of interest applicable to the
applicable borrowing. Nothing herein shall be deemed to relieve any
Lender from its obligation to fulfill its Commitment or to prejudice any
rights which Administrative Agent or Borrower may have against any Lender
as a result of any default by such Lender hereunder. A notice of
Administrative Agent to Borrower or any Lender with respect to any amount
owing under this clause (c) shall be conclusive, absent manifest error.

     2.5     Rates and Payment of Interest on Loans.

		
	 	     (a)     Rates. Borrower promises to pay to Administrative Agent for the
account of each Lender, interest on the unpaid principal amount of each
Revolving Loan for the period from and including the date of the making of
such Revolving Loan to but excluding the date such Revolving Loan shall be
paid in full, at the following per annum rates:

		
	 	     (i)     during such periods as such Revolving Loan is a Base Rate
Loan, the lesser of (A) the Base Rate (as in effect from time to
time) and (B) the Maximum Rate; and

		
	 	     (ii)     during such periods as such Revolving Loan is a Eurodollar
Loan, the lesser of (A) the sum of the Adjusted Eurodollar Rate for
such Revolving Loan for the Interest Period therefor, plus 1.25% and
(B) the Maximum Rate.

Notwithstanding the foregoing, (i) on and after the second anniversary of the
Effective Date, Borrower hereby promises to pay to Administrative Agent (for
the account of each Lender) interest at 0.50% per annum in excess of the rates
otherwise payable under the preceding clause (i) or (ii), whichever is
applicable, on the aggregate outstanding principal balance under all Revolving
Loans made by such Lender and on any other amount payable by Borrower to such
Lender hereunder or under any other Loan Document, (ii) during the continuance
of an Event of Default, and prior to maturity or acceleration of the
Obligations, Borrower hereby promises to pay to Administrative Agent (for the
account of each Lender)

	 	 	 
	24	 	
Third Amended and Restated Credit Agreement

 

 

interest at 2% per annum in excess of the rates otherwise payable hereunder on
the aggregate outstanding principal balance under all Revolving Loans made by
such Lender and on any other amount payable by Borrower to such Lender
hereunder or under any other Loan Document, including without limitation, any
overdue accrued but unpaid interest to the extent permitted under Applicable
Law, and (iii) upon the maturity or acceleration of the Obligations in
accordance with the terms hereof, Borrower promises to pay to Administrative
Agent (for the account of each Lender) interest at the Post-Default Rate on
such amounts.

		
	 	     (b)     Payment of Interest. Accrued interest on each Revolving Loan
shall be payable as provided in each of the following clauses which apply
to such Revolving Loan: (i) in the case of a Base Rate Loan, monthly on
the last Business Day of each calendar month, (ii) in the case of a
Eurodollar Loan, on the last day of each Interest Period therefor;
provided that, with respect to Eurodollar Loans having an Interest Period
in excess of three months, then accrued interest shall also be due and
payable at the end of each three-month period occurring after the
commencement of such Interest Period until such Eurodollar Rate borrowing
is paid or converted, (iii) in the case of a Eurodollar Loan, upon the
payment, prepayment or Continuation thereof or the Conversion of such Loan
to a Loan of another Type (but only on the principal amount so paid,
prepaid, Continued, or Converted), and (iv) in the case of any Base Rate
Loan, upon the payment or prepayment thereof in full. Interest payable
during the continuance of an Event of Default but prior to maturity or
acceleration of the Obligations shall be payable in accordance with the
immediately preceding sentence. Interest payable at the Post-Default Rate
shall be payable from time to time on demand. Promptly after the
determination of any interest rate provided for herein or any change
therein, Administrative Agent shall give notice thereof to the Lenders to
which such interest is payable and to Borrower. All determinations by
Administrative Agent of an interest rate hereunder shall be conclusive and
binding on the Lenders and Borrower for all purposes, absent manifest
error.

		
	 	     (c)     Payments Generally. Unless Borrower has notified Administrative
Agent, prior to the date any payment is required to be made by it to
Administrative Agent hereunder, that Borrower will not make such payment,
Administrative Agent may assume that Borrower has timely made such payment
and may (but shall not be so required to), in reliance thereon, make
available a corresponding amount to the Person entitled thereto. If and
to the extent that such payment was not in fact made to Administrative
Agent in immediately available funds, then each Lender shall forthwith on
demand repay to Administrative Agent the portion of such assumed payment
that was made available to such Lender in immediately available funds,
together with interest thereon in respect of each day from and including
the date such amount was made available by Administrative Agent to such
Lender to the date such amount is repaid to Administrative Agent in
immediately available funds at the Federal Funds Rate from time to time in
effect. A notice of Administrative Agent to Borrower with respect to any
amount owing under this clause (c) shall be conclusive, absent manifest
error.

     2.6      Number of Interest Periods. There may be no more than ten different
Interest Periods for Eurodollar Loans outstanding at the same time.

     2.7      Repayment of Loans. Borrower shall repay the entire outstanding
Principal Debt and all accrued but unpaid interest thereon on the Termination
Date.

     2.8      Prepayments.

		
	 	     (a)     Optional. Subject to Section 4.5, Borrower may prepay any Loan
made to it at any time without premium or penalty.

	 	 	 
	25	 	
Third Amended and Restated Credit Agreement

 

 

		
	 	     (b)     Mandatory.

		
	 	     (iii)     If at any time the Commitment Usage exceeds the aggregate
amount of the Commitments of the Lenders in effect at such time, or
the Swing Principal Debt exceeds the Swing Line Commitment, then
Borrower shall immediately pay to Administrative Agent for the
respective accounts of the appropriate Lenders the amount of such
excess; provided that, on any such date that a mandatory prepayment
is due under this Section 2.8(b)(i), if no Principal Debt is then
outstanding, but the LC Exposure exceeds the aggregate Commitments of
the Lenders then in effect, then Borrower shall provide to
Administrative Agent (for itself and for the benefit of Lenders
holding participations in the LC Subfacility) cash collateral in an
amount at least equal to 100% of such excess.

		
	 	     (iv)     If (A) as a result of any asset disposition by Borrower or
any of its Subsidiaries, Borrower or any such Subsidiary is required
to redeem or prepay (or to offer to redeem or prepay) any Debt (other
than the Obligations) by a particular date (the
“Subject Date”) in an
amount equal to all or a portion of the net cash proceeds received by
such entity from such asset disposition (the “Asset Disposition
Proceeds”), and (B) such obligations to redeem or prepay (or to offer
to redeem or prepay) such other Debt may be avoided by prepayment of
the Obligations in an amount equal to such Asset Disposition Proceeds
on or prior to the Subject Date, then not less than 30 days prior to
the Subject Date, Borrower shall pay to Administrative Agent (for the
ratable benefit of Lenders) a mandatory prepayment of the Obligations
(and the Commitments shall be concurrently reduced) in an amount
equal to such Asset Disposition Proceeds.

		
	 	If Borrower is required to pay any outstanding Eurodollar Loans by reason
of this Section prior to the end of the applicable Interest Period
therefor, then Borrower shall pay all amounts due under
Section 4.5.

     2.9      Continuation. So long as no Default or Event of Default shall have
occurred and be continuing, Borrower may on any Business Day, with respect to
any Eurodollar Loan, elect to maintain such Eurodollar Loan or any portion
thereof as a Eurodollar Loan, as applicable, by selecting a new Interest Period
for such Loan. Each new Interest Period selected under this Section shall
commence on the last day of the immediately preceding Interest Period. Each
selection of a new Interest Period shall be made by Borrower giving to
Administrative Agent a Notice of Continuation not later than 12:00 noon on the
second Business Day prior to the date of any such Continuation. Such notice by
Borrower of a Continuation shall be by telephone or telecopy, confirmed
immediately in writing if by telephone, in the form of a Notice of
Continuation, specifying (a) the proposed date of such Continuation, (b) the
Eurodollar Loan, or portion thereof, subject to such Continuation and (c) the
duration of the selected Interest Period, all of which shall be specified in
such manner as is necessary to comply with all limitations on Loans outstanding
hereunder. Each Notice of Continuation shall be irrevocable by and binding on
Borrower once given. Promptly after receipt of a Notice of Continuation (and
in any event not later than 1:00 p.m. on the date of receipt thereof),
Administrative Agent shall notify each Lender by telex or telecopy, or other
similar form of transmission of the proposed Continuation. If Borrower shall
fail to select in a timely manner a new Interest Period for any Eurodollar Loan
in accordance with this Section, such Loan will automatically, on the last day
of the current Interest Period therefor, Convert into a Base Rate Loan.

     2.10      Conversion. Borrower may on any Business Day, upon Borrower’s giving
of a Notice of Conversion to Administrative Agent, Convert all or a portion of
a Revolving Loan of one Type into a

	 	 	 
	26	 	
Third Amended and Restated Credit Agreement

 

 

Revolving Loan of another Type. Any Conversion of a Eurodollar Loan into a
Base Rate Loan shall be made on, and only on, the last day of an Interest
Period for such Eurodollar Loan. Each such Notice of Conversion shall be given
by Borrower not later than 12:00 noon (a) on the Business Day prior to the date
of any proposed Conversion into Base Rate Loans or (b) on the second Business
Day prior to the date of any proposed Conversion into Eurodollar Loans.
Promptly upon receipt of a Notice of Conversion (and in any event not later
than 1:00 p.m. on the date of receipt thereof), Administrative Agent shall
notify each Lender by telecopy or other similar form of transmission of the
proposed Conversion. Subject to the restrictions specified above, each Notice
of Conversion shall be by telephone or telecopy confirmed immediately in
writing if by telephone, in the form of a Notice of Conversion, specifying (i)
the requested date of such Conversion, (ii) the Type of Revolving Loan to be
Converted, (iii) the portion of such Type of Revolving Loan to be Converted,
(iv) the Type of Revolving Loan into which such Revolving Loan is to be
Converted, and (v) if such Conversion is into a Eurodollar Loan, the requested
duration of the Interest Period of such Revolving Loan. Each Notice of
Conversion shall be irrevocable by and binding on Borrower once given.
Notwithstanding the foregoing, the right to convert from a Base Rate Loan to a
Eurodollar Loan, or to continue a Eurodollar Loan, shall not be available
during the occurrence of a Default or an Event of Default.

       2.11
     Loan Accounts, Notes.

		
	 	     (a)     Loan
Accounts; Noteless Transaction. The Principal Debt owed to
each Lender shall be evidenced by one or more loan accounts or records
maintained by such Lender and by Administrative Agent in the ordinary
course of business. The loan accounts or records maintained by
Administrative Agent (including, without limitation, the Register) and
each Lender shall be conclusive evidence absent manifest error of the
amount of the Loans made to Borrower from each Lender under this Agreement
(and subfacilities thereunder) and the interest and principal payments
thereon. Any failure to so record or any error in doing so shall not,
however, limit or otherwise affect the obligation of Borrower under the
Loan Documents to pay any amount owing with respect to the Obligations.
In the event of any conflict between the accounts and records maintained
by any Lender and the accounts and records of Administrative Agent in
respect of such matters, the accounts and records of such Lender shall
control absent manifest error.

		
	 	     (b)     Notes. Upon the request of any Lender made through
Administrative Agent, the Principal Debt owed to such Lender may be
evidenced by one or more of the following Notes (as the case may be): (i)
a Revolving Note (with respect to Principal Debt other than under the
Swing Line Subfacility) and (ii) a Swing Line Note (with respect to
Principal Debt arising under the Swing Line Subfacility).

       2.12     Reductions of the Commitments; Option to Extend the Commitments.
Borrower shall have the right to terminate or reduce the aggregate unused
amount of the Commitments of the Lenders (other than the portion of the
Commitments applicable to Swing Line Loans or issued and outstanding LCs) at
any time and from time to time without penalty or premium upon not less than
fifteen Business Days prior written notice to Administrative Agent of each such
termination or reduction, which notice shall specify the effective date thereof
and the amount of any such reduction and shall be irrevocable once given and
effective only upon receipt by Administrative Agent. Administrative Agent will
promptly transmit such notice to each Lender. The Swing Line Commitment and
the LC Commitment (as the case may be) shall be automatically and permanently
reduced from time to time, on the date of each reduction in the Commitments of
the Lenders, by the amount, if any, by which the applicable Subfacility exceeds
the aggregate Commitments of the Lenders then in effect, after giving effect to
such reduction of the Commitments. The Commitments, once terminated or
reduced, may not be increased or reinstated. If, fifteen Business Days prior
to the second anniversary of the Effective Date,

	 	 	 
	27	 	
Third Amended and Restated Credit Agreement

 

 

Borrower has not delivered written notice to Administrative Agent of its
election to terminate the Commitments in whole, then Borrower shall be deemed
to have exercised its option to extend the Commitments for an additional one
year (the “Option to Extend”) without any further action or approval by
Administrative Agent or Lenders.

     2.13     Increases of Commitments. Borrower may from time to time request any
one or more Lenders to increase their respective Commitments or request other
financial institutions first approved by Administrative Agent to agree to a
Commitment, so that the total Commitments may be increased to no more than
$600,000,000. Any such Commitment increase must be effected by an amendment
that is executed in accordance with Section 12.5 by Borrower, Administrative
Agent, and the one or more Lenders who have agreed to increase their
Commitments or by new Lenders who have agreed to new Commitments in accordance
with Section 12.5. No Lender is obligated to increase its Commitment under
any circumstances, and no Lender’s Commitment may be increased except by its
execution of an amendment to this Agreement in accordance with Section 12.5.
Each new Lender providing such additional Commitment shall be a “Lender”
hereunder, entitled to the rights and benefits, and subject to the duties, of a
Lender under the Loan Documents. In such case, each Lender’s Commitment
Percentage shall be recalculated to reflect the new proportionate share of the
revised total Commitments and the Lender responsible for the additional
Commitments (the “purchasing Lender”) shall, immediately upon receiving notice
from Administrative Agent, pay to each Lender an amount equal to its pro rata
share of the Revolving Loans (and any funded participations by Lenders under
the Swing Line Subfacility and the LC Subfacility) outstanding as of such date.
All such payments with respect to the Revolving Loans shall reduce the
outstanding principal balance owed to each Lender receiving such payments and
shall represent Revolving Loans to Borrower by the purchasing Lender; all such
payments with respect to funded participations under the Swing Line Subfacility
or LC Subfacility (as the case may be) shall reduce the applicable
participation of each Lender receiving such payment and shall represent the
purchase by the purchasing Lender of a participation under the Swing Line
Subfacility or the LC Subfacility (as the case may be). The purchasing Lender
shall be entitled to share ratably in interest accruing on the balances
purchased, at the rates provided herein for such balances, from and after the
date of purchase. All new Revolving Loans occurring after an increase of the
total Commitments shall be funded in accordance with the Lender’s revised
Commitment Percentages.

SECTION 3.      PAYMENTS, FEES AND OTHER GENERAL PROVISIONS.

     3.1     Payments. Each payment or prepayment on the Obligations shall be made
in Dollars, without condition or deduction for setoff, counterclaim, defense,
or recoupment, and is due and must be paid at Administrative Agent’s Principal
Office in Dallas, Texas in funds which are or will be available for immediate
use by Administrative Agent by 12:00 noon on the day due. Payments made after
12:00 noon shall be deemed made on the Business Day next following. If no
Default or Event of Default exists and if no order of application is otherwise
specified in the Loan Documents, payments and prepayments of the Obligations
shall be applied first to Fees, second to accrued interest then due and payable
on the Principal Debt, and then to the remaining Obligations in the order and
manner as Borrower may direct. If a Default or Event of Default exists (or if
Borrower fails to give direction as permitted in the preceding sentence), any
payment or prepayment shall be applied to the Obligations in accordance with
Section 10.4. Administrative Agent shall pay to each Lender any payment or
prepayment to which such Lender is entitled hereunder on the same day
Administrative Agent shall have received the same from Borrower; provided such
payment or prepayment is received by Administrative Agent prior to 12:00 noon,
and otherwise before 12:00 noon on the Business Day next following. If and to
the extent Administrative Agent shall not make such payments to the Lenders
when due as set forth in the preceding sentence, such unpaid amounts shall
accrue interest, payable by Administrative Agent, at the Federal

	 	 	 
	28	 	
Third Amended and Restated Credit Agreement

 

 

Funds Rate from the due date until (but not including) the date on which
Administrative Agent makes such payments to the Lenders.

     3.2      Pro Rata Treatment. Except to the extent otherwise provided herein:
(a) each borrowing of a Revolving Loan from the Lenders under Section 2.1 shall
be made from the Lenders, each payment of the Fees under Section 3.8(a) and
3.8(e) shall be made for account of the Lenders, and each termination or
reduction of the amount of the Commitments under Section 2.12 shall be applied
to the respective Commitments of the Lenders, pro rata according to the amounts
of their respective Commitment Percentages; (b) each payment or prepayment of
principal of Revolving Loans shall be made for account of the Lenders pro rata
in accordance with the respective unpaid principal amounts of the Revolving
Loans held by them; provided that, if immediately prior to giving effect to any
such payment in respect of any Revolving Loans the outstanding principal amount
of the Revolving Loans shall not be held by the Lenders pro rata in accordance
with their respective Commitment Percentages in effect at the time such
Revolving Loans were made, then such payment shall be applied to the Revolving
Loans in such manner as shall result, as nearly as is practicable, in the
outstanding principal amount of the Revolving Loans being held by the Lenders
pro rata in accordance with their respective Commitment Percentages; (c) each
payment of interest on Revolving Loans shall be made for account of the Lenders
pro rata in accordance with the amounts of interest on such Revolving Loans
then due and payable to the respective Lenders; (d) each payment of principal
or interest under the Swing Line Subfacility shall be made for the account of
Swing Line Lender and each other Lender purchasing a participation in the Swing
Line Subfacility and shall be shared pro rata among such Lenders, as determined
on any date of determination for any such Lender as the proportion which the
Swing Principal Debt (or participations therein) owed to such Lender bears to
the Swing Principal Debt owed to all Lenders; (e) each payment with respect to
the LC Subfacility shall be made for the account of LC Issuer and each other
Lender purchasing a participation in any LC and related reimbursement
obligations and shall be shared pro rata among such Lenders, as determined on
any date of determination for any such Lender as the proportion which the
Principal Debt arising under the LC Subfacility (or participations therein)
owed to such Lender bears to the Principal Debt under the LC Subfacility owed
to all Lenders; and (f) the making, Conversion, and Continuation of Revolving
Loans of a particular Type (other than Conversions provided for by Section 4.4)
shall be made pro rata among the Lenders according to the amounts of their
respective Commitment Percentages, and the then current Interest Period for
each Lender’s portion of each Revolving Loan of such Type shall be coterminous.

     3.3
     Sharing of Payments, Etc. Except as contemplated in Section 4.7, if
any Lender shall obtain any payment (whether voluntary, involuntary, or
otherwise, including, without limitation, as a result of exercising its rights
under Section 3.4) which is in excess of its ratable share of any such payment,
such Lender shall purchase from the other Lenders such participations as shall
be necessary to cause such purchasing Lender to share the excess payment
ratably with each of them; provided, however, that if all or any portion of
such excess payment is thereafter recovered from such purchasing Lender under
any of the circumstances described in Section 12.15 (including pursuant to any
settlement entered into by the purchasing Lender in its discretion), the
purchase shall be rescinded and the purchase price restored to the extent of
such recovery. Borrower agrees that any Lender so purchasing a participation
from another Lender pursuant to this Section may, to the fullest extent
permitted by Applicable Law, exercise all of its rights of payment (including
the right of offset) with respect to such participation as fully as if such
Lender were the direct creditor of Borrower in the amount of such
participation.

     3.4     Offset. Upon the occurrence and during the continuance of an Event of
Default, each Lender shall be entitled to exercise (for the benefit of the
Lenders in accordance with Section 3.3) the rights of offset and/or banker’s
lien against each and every account and other property, or any interest
therein, which Borrower may now or hereafter have with, or which is now or
hereafter in the possession of, such Lender to the extent of the full amount of
the Obligations (other than special accounts, trust

	 	 	 
	29	 	
Third Amended and Restated Credit Agreement

 

 

accounts, or escrow accounts maintained by Borrower in a fiduciary capacity or
as an agent for unrelated third parties).

     3.5     Booking Borrowings. To the extent permitted by Applicable Law, any
Lender may make, carry, or transfer its Loans at, to, or for the account of any
of its branch offices or the office of any of its Affiliates; provided that, no
Affiliate shall be entitled to receive any greater payment under Section 4 than
the transferor Lender would have been entitled to receive with respect to such
Loans.

     3.6
     Several Obligations. The obligations of the Lenders hereunder are
several and not joint. No Lender shall be responsible for the failure of any
other Lender to make a Loan, to fund participations in LCs and Swing Line
Loans, or to perform any other obligation to be made or performed by such other
Lender hereunder, and the failure of any Lender to make a Loan, to fund any
such participation, or to perform any other obligation to be made or performed
by it hereunder shall not relieve the obligation of any other Lender to make
any Loan, to fund any such participation, or to perform any other obligation to
be made or performed by such other Lender.

     3.7
     Minimum Amounts.

		
	 	     (a)     Borrowings and Conversions. Each borrowing of Base Rate Loans
shall be in an aggregate minimum amount of $1,000,000 and integral
multiples of $1,000,000 in excess thereof. Each borrowing of Eurodollar
Loans, and each Conversion of Loans to Eurodollar Loans shall be in an
aggregate minimum amount of $1,000,000 and integral multiples of
$1,000,000 in excess of that amount.

		
	 	     (b)     Prepayments. Each voluntary prepayment of Loans shall be in an
aggregate minimum amount of $1,000,000.

		
	 	     (c)     Reductions of Commitments. Each reduction of the Commitments
under Section 2.12 shall be in an aggregate minimum amount of $5,000,000
and integral multiples of $1,000,000 in excess thereof.

     3.8      Fees.

		
	 	     (a)     Facility Fee. Borrower agrees to pay to Administrative Agent for
the account of the Lenders a facility fee in an amount equal to 0.25%
multiplied by the amount of the average daily Commitment (whether used or
unused), in each case during the period from and including the last
payment date (or in respect of the initial payment, the Effective Date) to
and excluding the payment date for such installment. Such facility fee
shall be payable quarterly in arrears on each Quarterly Date and on the
Termination Date, beginning with June 30, 2003.

		
	 	     (b)     Upfront Fee. On the Effective Date, Borrower agrees to pay an
upfront fee to Administrative Agent for the account of the Lenders in the
amount stated next to such Lender’s name on the attached Schedule 2.

		
	 	     (c)     Extension Premium. On the second anniversary of the Effective
Date, Borrower agrees to pay an additional fee to Administrative Agent for
the account of the Lenders in an amount equal to 0.30% multiplied by the
aggregate outstanding Commitments of the Lenders after giving effect to
any reductions of the Commitments on such date.

		
	 	     (d)     Administrative, Letter of Credit, and Other Fees. Borrower
agrees to pay the administrative, letter of credit, and other fees of
Administrative Agent and LC Issuer set forth in

	 	 	 
	30	 	
Third Amended and Restated Credit Agreement

 

 

		
	 	that certain separate letter agreement dated March 26, 2003, among
Borrower, Administrative Agent, LC Issuer, and Arranger.

		
	 	     (e)     LC Fees. As an inducement for the issuance (including, without
limitation, any extension) of each LC, Borrower agrees to pay to LC Issuer
(for the account of each Lender) according to each Lender’s Commitment
Percentage under the Revolving Facility on the day the fee is payable, an
issuance fee payable quarterly in arrears for so long as each such LC is
outstanding, on the last Business Day of each March, June, September, and
December and on the expiry date of the LC. The issuance fee for each LC
or any extension thereof shall be in an amount equal to the product of (i)
(A) 1.25% (calculated on a per annum basis) until, but not including, the
second anniversary of the Effective Date or (B) 1.75% (calculated on a per
annum basis) on and after the second anniversary of the Effective Date
multiplied by (ii) the average daily undrawn amount of such LC.

     3.9
     Computations. Unless otherwise expressly set forth herein, any
accrued interest on any Base Rate Loan due hereunder shall be computed on the
basis of a 365/366 day year, and in all other instances, any accrued interest
on any Eurodollar Loan, any Fees or other Obligations due hereunder shall be
computed on the basis of a year of 360 days and the actual number of days
elapsed.

     3.10
   Maximum Rate. Regardless of any provision contained in any Loan
Document, neither Administrative Agent nor any Lender shall ever be entitled to
contract for, charge, take, reserve, receive, or apply, as interest on the
Obligations, or any part thereof, any amount in excess of the Maximum Rate,
and, if the Lenders ever do so, then such excess shall be deemed a partial
prepayment of principal and treated hereunder as such and any remaining excess
shall be refunded to Borrower. In determining if the interest paid or payable
exceeds the Maximum Rate, Borrower and the Lenders shall, to the maximum extent
permitted under Applicable Law, (a) treat all Loans as but a single extension
of credit (and Lenders and Borrower agree that such is the case and that
provision herein for multiple Loans is for convenience only), (b) characterize
any nonprincipal payment as an expense, fee, or premium rather than as
interest, (c) exclude voluntary prepayments and the effects thereof, and (d)
amortize, prorate, allocate, and spread the total amount of interest throughout
the entire contemplated term of the Obligations; provided that, if the
Obligations are paid and performed in full prior to the end of the full
contemplated term thereof, and if the interest received for the actual period
of existence thereof exceeds the Maximum Amount, the Lenders shall refund such
excess, and, in such event, the Lenders shall not, to the extent permitted by
Applicable Law, be subject to any penalties provided by any Applicable Laws for
contracting for, charging, taking, reserving, or receiving interest in excess
of the Maximum Amount.

     3.11
   Interest Recapture. If the designated rate applicable to any Loan
exceeds the Maximum Rate, the rate of interest on such Loan shall be limited to
the Maximum Rate, but any subsequent reductions in such designated rate shall
not reduce the rate of interest thereon below the Maximum Rate until the total
amount of interest accrued thereon equals the amount of interest which would
have accrued thereon if such designated rate had at all times been in effect.
In the event that at maturity (stated or by acceleration), or at final payment
of the Principal Debt, the total amount of interest paid or accrued is less
than the amount of interest which would have accrued if such designated rates
had at all times been in effect, then, at such time and to the extent permitted
by law, Borrower shall pay an amount equal to the difference between (a) the
lesser of the amount of interest which would have accrued if such designated
rates had at all times been in effect and the amount of interest which would
have accrued if the Maximum Rate had at all times been in effect, and (b) the
amount of interest actually paid or accrued on the Principal Debt.

     3.12
   Agreement Regarding Interest and Charges. The parties hereto hereby
agree and stipulate that the only charge imposed upon Borrower for the use of
money in connection with this

	 	 	 
	31	 	
Third Amended and Restated Credit Agreement

 

 

Agreement is and shall be the interest specifically described in Section
2.5(a). Notwithstanding the foregoing, the parties hereto further agree and
stipulate that all agency fees, syndication fees, facility fees, underwriting
fees, default charges, late charges, funding or “breakage” charges, increased
cost charges, attorneys’ fees and reimbursement for costs and expenses paid by
Administrative Agent, LC Issuer, Swing Line Lender, or any Lender to third
parties or for damages incurred by Administrative Agent, LC Issuer, Swing Line
Lender, or any Lender, are charges made to compensate Administrative Agent, LC
Issuer, Swing Line Lender, or any such Lender for underwriting or
administrative services and costs or losses performed or incurred, and to be
performed or incurred, by Administrative Agent, LC Issuer, Swing Line Lender,
and the Lenders in connection with this Agreement and shall under no
circumstances be deemed to be charges for the use of money.

		
	 	3.13      Defaulting Lenders.

		
	 	     (a)     Generally. If for any reason any Lender (a “Defaulting Lender”)
shall fail or refuse to perform any of its obligations under this
Agreement or any other Loan Document to which it is a party within the
time period specified for performance of such obligation or, if no time
period is specified, if such failure or refusal continues for a period of
two Business Days after notice from Administrative Agent, then, in
addition to the rights and remedies that may be available to
Administrative Agent or Borrower under this Agreement or Applicable Law,
such Defaulting Lender’s right to participate in the administration of the
Loans, this Agreement, and the other Loan Documents, including without
limitation, any right to vote in respect of, to consent to, or to direct
any action or inaction of Administrative Agent or to be taken into account
in the calculation of the Requisite Lenders, shall be suspended during the
pendency of such failure or refusal. If a Lender is a Defaulting Lender
because it has failed to make timely payment to Administrative Agent of
any amount required to be paid to Administrative Agent hereunder (without
giving effect to any notice or cure periods), in addition to other rights
and remedies which Administrative Agent or Borrower may have under the
immediately preceding provisions or otherwise, Administrative Agent shall
be entitled (i) to collect interest from such Defaulting Lender on such
delinquent payment for the period from the date on which the payment was
due until the date on which the payment is made at the Federal Funds Rate,
and (ii) to withhold or setoff and to apply in satisfaction of the
defaulted payment and any related interest, any amounts otherwise payable
to such Defaulting Lender under this Agreement or any other Loan Document.
Any amounts received by Administrative Agent in respect of a Defaulting
Lender’s Loans shall not be paid to such Defaulting Lender and shall be
held uninvested by Administrative Agent and either applied against the
purchase price of such Loans under the following subsection (b) or paid to
such Defaulting Lender upon the Defaulting Lender’s curing of its default.
Borrower shall not have any liability in respect of such action by
Administrative Agent.

		
	 	     (b)     Purchase of Defaulting Lender’s Commitment. Any Lender who is
not a Defaulting Lender shall have the right, but not the obligation, in
its sole discretion, to acquire all of a Defaulting Lender’s Commitment.
Any Lender desiring to exercise such right shall give written notice
thereof to Administrative Agent no sooner than two Business Days and not
later than ten Business Days after such Defaulting Lender became a
Defaulting Lender. If more than one Lender exercises such right, each
such Lender shall have the right to acquire an amount of such Defaulting
Lender’s Commitment in proportion to the Commitments of the other Lenders
exercising such right. Upon any such purchase, the Defaulting Lender’s
interest in the Revolving Loans and any funded participations under the
Swing Line Subfacility and the LC Subfacility and its rights hereunder
(but not its liability in respect thereof or under the Loan Documents or
this Agreement to the extent the same relate to the period prior to the
effective date of the purchase) shall terminate on the date of purchase,
and the Defaulting Lender shall promptly execute all documents reasonably
requested to surrender and transfer such interest to the purchaser thereof

	 	 	 
	32	 	
Third Amended and Restated Credit Agreement

 

 

		
	 	including an appropriate Assignment and Acceptance Agreement and,
notwithstanding Section 12.4(a), shall pay to Administrative Agent an
assignment fee in the amount of $3,500. The purchase price for the
Commitment of a Defaulting Lender shall be equal to the amount of the
principal balance of the Revolving Loans (together with the principal
amount of any funded participations in any Swing Line Loans held by the
Defaulting Lender pursuant to Section 2.2(c) and any funded participations
under the LC Subfacility held by the Defaulting Lender pursuant to Section
2.3(c)) outstanding and owed by Borrower to the Defaulting Lender. Prior
to payment of such purchase price to a Defaulting Lender, Administrative
Agent shall apply against such purchase price any amounts retained by
Administrative Agent pursuant to the second to last sentence of the
immediately preceding subsection (a). The Defaulting Lender shall be
entitled to receive amounts owed to it by Borrower under the Loan
Documents which accrued prior to the date of the default by the Defaulting
Lender, to the extent the same are received by Administrative Agent from
or on behalf of Borrower. There shall be no recourse against any Lender
or Administrative Agent for the payment of such sums except to the extent
of the receipt of payments from any other party or in respect of the
Revolving Loans or the principal amount of any funded participations in
any Swing Line Loan or in any LC and related reimbursement obligations
under the LC Subfacility. If, prior to a Lender’s acquisition of a
Defaulting Lender’s Commitment pursuant to this subsection, such
Defaulting Lender shall cure the event or condition which caused it to
become a Defaulting Lender and shall have paid all amounts owing by it
hereunder as a result thereof, then such Lender shall no longer have the
right to acquire such Defaulting Lender’s Commitment.

SECTION 4.       YIELD PROTECTION, ETC.

       4.1     Increased
Cost and Reduced Return.

		
	 	     (a)     If, after the date hereof, the adoption of any Applicable Law,
rule, or regulation, or any change in any Applicable Law, or any change in
the interpretation or administration thereof by any Governmental
Authority, or compliance by any Lender (or its applicable Lending Office)
with any request or directive (whether or not having the force of law) of
any such Governmental Authority:

		
	 	     (i)     shall subject such Lender (or its applicable Lending Office)
to any Tax, duty, or other charge with respect to any Eurodollar
Loans, its Note (if any), or its obligation to make Eurodollar
Loans, or change the basis of taxation of any amounts payable to such
Lender (or its applicable Lending Office) under the Loan Documents in
respect of any Eurodollar Loans (other than Taxes imposed on the
overall net income of such Lender by the jurisdiction in which such
Lender has its principal office or such applicable Lending Office);

		
	 	     (ii)     shall impose, modify, or deem applicable any reserve,
special deposit, assessment, or similar requirement (other than the
Reserve Requirement utilized in the determination of the Adjusted
Eurodollar Rate) relating to any extensions of credit or other assets
of, or any deposits with or other liabilities or commitments of, such
Lender (or its applicable Lending Office), including the Commitment
of such Lender hereunder; or

		
	 	     (iii)     shall impose on such Lender (or its applicable Lending
Office) or on the London interbank market any other condition
affecting the Loan Documents or any of such extensions of credit or
liabilities or commitments;

	 	 	 
	33	 	
Third Amended and Restated Credit Agreement

 

 

		
	 	and the result of any of the foregoing is to increase the cost to such
Lender (or its applicable Lending Office) of making, Converting into,
Continuing, or maintaining any Eurodollar Loans or to reduce any sum
received or receivable by such Lender (or its applicable Lending Office)
under the Loan Documents with respect to any Eurodollar Loans, then
Borrower shall pay to such Lender on demand such amount or amounts as will
compensate such Lender for such increased cost or reduction. If any
Lender requests compensation by Borrower under this Section 4.1(a),
Borrower may, by notice to such Lender (with a copy to Administrative
Agent), suspend the obligation of such Lender to make or Continue
Revolving Loans of the Type with respect to which such compensation is
requested, or to Convert Revolving Loans of any other Type into Revolving
Loans of such Type, until the event or condition giving rise to such
request ceases to be in effect (in which case the provisions of Section
4.4 shall be applicable); provided that, such suspension shall not affect
the right of such Lender to receive the compensation so requested.

		
	 	     (b)     If, after the date hereof, any Lender shall have determined that
the adoption of any Applicable Law regarding capital adequacy or any
change therein or in the interpretation or administration thereof by any
Governmental Authority charged with the interpretation or administration
thereof, or any request or directive regarding capital adequacy (whether
or not having the force of law) of any such Governmental Authority
(excluding those of the foregoing applying to a Lender solely by reason of
a formal determination by the applicable regulator that such Lender is in
a financially troubled condition) has or would have the effect of reducing
the rate of return on the capital of such Lender or any corporation
controlling such Lender as a consequence of such Lender’s obligations
hereunder to a level below that which such Lender or such corporation
could have achieved but for such adoption, change, request, or directive
(taking into consideration its policies with respect to capital adequacy),
then from time to time upon demand Borrower shall pay to such Lender such
additional amount or amounts as will compensate such Lender for such
reduction.

		
	 	     (c)     Each Lender shall promptly notify Borrower and Administrative
Agent of any event of which it has knowledge, occurring after the date
hereof, which will entitle such Lender 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 Lender, be otherwise
disadvantageous to it. Any Lender claiming compensation under this
Section shall furnish to Borrower and Administrative Agent a statement
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 Lender may use any reasonable averaging and
attribution methods.

     4.2
     Limitation on Types of Loans. If on or prior to the first day of any
Interest Period for any Eurodollar Loan:

		
	 	     (a)     Administrative Agent determines (which determination shall be
conclusive) that by reason of circumstances affecting the relevant market,
adequate and reasonable means do not exist for ascertaining the Eurodollar
Rate for such Interest Period; or

		
	 	     (b)     the Requisite Lenders determine (which determination shall be
conclusive) and notify Administrative Agent that the Adjusted Eurodollar
Rate will not adequately and fairly reflect the cost to the Lenders of
funding Eurodollar Loans for such Interest Period; then Administrative
Agent shall give Borrower prompt notice thereof specifying the relevant
Revolving Loans and the relevant amounts or periods, and so long as such
condition remains in effect, the Lenders shall be under no obligation to
make additional Eurodollar Loans, Continue

	 	 	 
	34	 	
Third Amended and Restated Credit Agreement

 

 

		
	 	Eurodollar Loans, or to Convert Base Rate Loans into Eurodollar Loans, and
Borrower shall, on the last day(s) of the then current Interest Period(s)
for the outstanding Eurodollar Loans, either prepay such Loans or Convert
such Loans into Base Rate Loans in accordance with the terms of this
Agreement.

     4.3
     Illegality. Notwithstanding any other provision of this Agreement, in
the event that it becomes unlawful for any Lender or its applicable Lending
Office to make, maintain, or fund Eurodollar Loans hereunder, then such Lender
shall promptly notify Borrower thereof and such Lender’s obligation to make or
Continue Eurodollar Loans and to Convert other Base Rate Loans into Eurodollar
Loans shall be suspended until such time as such Lender may again make,
maintain, and fund Eurodollar Loans (in which case the provisions of Section
4.4 shall be applicable).

     4.4     Treatment
of Affected Loans. If the obligation of any Lender to make
a Eurodollar Loan or to Continue, or to Convert Base Rate Loans into,
Eurodollar Loans shall be suspended pursuant to Section 4.1, 4.2, or 4.3
hereof, such Lender’s Eurodollar Loans shall be automatically Converted into
Base Rate Loans on the last day(s) of the then current Interest Period(s) for
Eurodollar Loans (or, in the case of a Conversion required by Section 4.3
hereof, on such earlier date as such Lender may specify to Borrower with a copy
to Administrative Agent) and, unless and until such Lender gives notice as
provided below that the circumstances specified in Section 4.1, 4.2, or 4.3
hereof that gave rise to such Conversion no longer exist:

		
	 	     (a)     to the extent that such Lender’s Eurodollar Loans have been so
Converted, all payments and prepayments of principal that would otherwise
be applied to such Lender’s Eurodollar Loans shall be applied instead to
its Base Rate Loans; and

		
	 	     (b)     all Loans that would otherwise be made or Continued by such
Lender as Eurodollar Loans shall be made or Continued instead as Base Rate
Loans, and all Loans of such Lender that would otherwise be Converted into
Eurodollar Loans shall be Converted instead into (or shall remain as) Base
Rate Loans.

If such Lender gives notice to Borrower (with a copy to Administrative Agent)
that the circumstances specified in Section 4.1, 4.2, or 4.3 hereof that gave
rise to the Conversion of such Lender’s Eurodollar Loans pursuant to this
Section 4.4 no longer exist (which such Lender agrees to do promptly upon such
circumstances ceasing to exist) at a time when Eurodollar Loans made by other
Lenders are outstanding, such Lender’s Base Rate Loans shall be automatically
Converted, on the first day(s) of the next succeeding Interest Period(s) for
such outstanding Eurodollar Loans, to the extent necessary so that, after
giving effect thereto, all Revolving Loans held by the Lenders holding
Eurodollar Loans and by such Lender are held pro rata (as to principal amounts,
Types, and Interest Periods) in accordance with their respective Commitments.

     4.5
     Compensation. Upon the request of any Lender, Borrower shall pay to
such Lender such amount or amounts as shall be sufficient (in the reasonable
opinion of such Lender) to compensate it for any loss, cost, or expense
(including loss of anticipated profits) incurred by it as a result of:

		
	 	     (a)     any payment, prepayment (including, without limitation, any
principal reduction effected pursuant to Section 2.13 as a result of an
increase in the Commitment), or Conversion of a Eurodollar Loan for any
reason (including, without limitation, the acceleration of the Revolving
Loans pursuant to Section 10.2) on a date other than the last day of the
Interest Period for such Loan; or

	 	 	 
	35	 	
Third Amended and Restated Credit Agreement

 

 

		
	 	     (b)     any failure by Borrower for any reason (including, without
limitation, the failure of any condition precedent specified in Section 5
to be satisfied) to borrow, Convert, Continue, or prepay a Eurodollar Loan
on the date for such borrowing, Conversion, Continuation, or prepayment
specified in the relevant notice of borrowing, prepayment, Continuation,
or Conversion under this Agreement.

     4.6      Taxes.

		
	 	     (a)     General. Any and all payments by Borrower to or for the account
of any Lender or Administrative Agent hereunder or under any other Loan
Document shall be made free and clear of and without deduction for any and
all present or future Taxes with respect thereto, excluding, in the case
of each Lender and Administrative Agent, Taxes imposed on its income and
franchise Taxes imposed on it by any jurisdiction under the laws of which
such Lender (or its applicable Lending Office) or Administrative Agent (as
the case may be) is organized or any political subdivision thereof (all
such non-excluded Taxes referred to as “Non-Excluded Taxes”). If Borrower
shall be required by law to deduct any Non-Excluded Taxes from or in
respect of any sum payable under this Agreement or any other Loan Document
to any Lender or Administrative Agent, (i) the sum payable shall be
increased as necessary so that after making all required deductions
(including deductions applicable to additional sums payable under this
Section 4.6) such Lender or Administrative Agent receives an amount equal
to the sum it would have received had no such deductions been made, (ii)
Borrower shall make such deductions, (iii) Borrower shall pay the full
amount deducted to the relevant taxation authority or other authority in
accordance with Applicable Law, and (iv) Borrower shall furnish to
Administrative Agent, at its address referred to in Section 12.1(a), the
original or a certified copy of a receipt evidencing payment thereof
within 30 days of such payment.

		
	 	     (b)     Stamp and Documentary Tax. In addition, Borrower agrees to pay
any and all present or future stamp or documentary taxes and any other
excise or property Taxes which arise from any payment made under this
Agreement or any other Loan Document or from the execution or delivery of,
or otherwise with respect to, this Agreement or any other Loan Document
(hereinafter referred to as “Other Taxes”).

		
	 	     (c)     INDEMNIFICATION FOR TAXES. BORROWER AGREES TO INDEMNIFY EACH
LENDER AND ADMINISTRATIVE AGENT FOR THE FULL AMOUNT OF NON-EXCLUDED TAXES
AND OTHER TAXES (INCLUDING, WITHOUT LIMITATION, ANY NON-EXCLUDED TAXES OR
OTHER TAXES IMPOSED OR ASSERTED BY ANY JURISDICTION ON AMOUNTS PAYABLE
UNDER THIS SECTION 4.6) PAID BY SUCH LENDER OR ADMINISTRATIVE AGENT (AS
THE CASE MAY BE) AND ANY LIABILITY (INCLUDING PENALTIES, INTEREST, AND
EXPENSES) ARISING THEREFROM OR WITH RESPECT THERETO. THIS INDEMNIFICATION
SHALL BE MADE WITHIN
10 DAYS FROM THE DATE SUCH LENDER OR ADMINISTRATIVE AGENT (AS THE
CASE MAY BE)
MAKES WRITTEN DEMAND THEREFOR.

		
	 	     (d)     Withholding Tax Forms. Each Lender organized under the laws of a
jurisdiction outside the United States, on or prior to the date of its
execution and delivery of this Agreement in the case of each Lender listed
on the signature pages hereof and on or prior to the date on which it
becomes a Lender in the case of each other Lender, and from time to time
thereafter, including, without limitation, upon the expiration or
obsolescence of any previously delivered form or upon the written request
of Borrower or Administrative Agent (but only so long as such Lender
remains eligible to do so) shall provide Borrower and Administrative Agent
with (i) two duly completed copies of Internal Revenue Service Form
W-8BEN, W-8ECI, W-8IMY, W-9, or other applicable or successor form, as the
case may be and (ii) any other governmental forms or

	 	 	 
	36	 	
Third Amended and Restated Credit Agreement

 

 

		
	 	certificates which are necessary or required under an applicable tax
treaty or otherwise by law to reduce or eliminate withholding tax, which
has been reasonably requested by Borrower or Administrative Agent. If an
event (including without limitation any change in treaty, law, or
regulation) has occurred prior to the date on which any delivery required
by the preceding sentence would otherwise be required which renders all
such forms inapplicable or which would prevent any Lender from duly
completing and delivering any such form with respect to it and such Lender
advises Borrower and Administrative Agent that it is not capable of
receiving payments without any deduction or withholding of United States
federal income tax, such Lender shall not be required to deliver such
forms.

		
	 	     (e)     Failure
to Provide Withholding Forms; Change in Tax Law. For any
period with respect to which a Lender has failed to provide Borrower and
Administrative Agent with the appropriate form required to be provided
pursuant to Section 4.6(d), such Lender shall not be entitled to
indemnification under this Section 4.6 with respect to Non-Excluded Taxes
imposed by the United States; provided, however, that should a Lender,
which is otherwise exempt from or subject to a reduced rate of withholding
tax, become subject to Non-Excluded Taxes because of its failure to
deliver a form required hereunder, Borrower shall take such steps as such
Lender shall reasonably request to assist such Lender to recover such
Non-Excluded Taxes. Each Lender which fails to provide to Borrower in a
timely manner such forms shall reimburse Borrower or Administrative Agent
upon demand for any penalties paid by Borrower or Administrative Agent as
a result of any failure of Borrower to withhold the required amounts that
are caused by such Lender’s failure to provide the required forms in a
timely manner.

		
	 	     (f)     Changes in Applicable Lending Office. If Borrower is required to
pay additional amounts to or for the account of any Lender pursuant to
this Section 4.6, then such Lender will use best efforts (consistent with
legal and regulatory restrictions) to change the jurisdiction of its
applicable Lending Office so as to eliminate or reduce any such additional
payments or amounts which may thereafter accrue if such change, in the
judgment of such Lender, is not otherwise disadvantageous to such Lender.

		
	 	     (g)     Refund or Credit of Tax. If any Lender or Administrative Agent,
as the case may be, obtains a refund of any Non-Excluded Tax or Other Tax
for which payment has been made by Borrower pursuant to this Section 4.6,
or receives a full or partial credit in computing its tax liability in any
jurisdiction, which credit in the good faith judgment of such Lender or
Administrative Agent, as the case may be (and without any obligation to
disclose its tax records to Borrower), is attributable to any such
Non-Excluded Tax or Other Tax, the amount of such refund or the
appropriate portion of such credit (together with any interest received
thereon) promptly shall be paid to Borrower.

		
	 	     (h)     Survival. Without prejudice to the survival of any other
agreement of Borrower hereunder, the agreements and obligations of
Borrower contained in this Section 4.6 shall survive the termination of
the Commitments and the payment in full of the Obligations.

     4.7      Removal of Lenders. If (a) a Lender or a Participant requests
compensation pursuant to Sections 4.1 or 4.6 and the Requisite Lenders are not
also doing the same, or (b) the obligation of a Lender to make Eurodollar Loans
or to Continue, or to Convert Loans into Eurodollar Loans shall be suspended
pursuant to Section 4.1 or Section 4.3, but the obligation of the Requisite
Lenders shall not have been suspended under such Sections, Borrower may either
(i) demand that such Lender or Participant (the “Affected Lender”), and upon
such demand the Affected Lender shall promptly, assign its Commitment and all
of its Loans to an Eligible Assignee subject to and in accordance with the
provisions of Section 12.4 for a purchase price equal to the aggregate
principal balance of Loans then

	 	 	 
	37	 	
Third Amended and Restated Credit Agreement

 

 

owing to the Affected Lender (together with any participation held by the
affected Lender in any Swing Line Loan pursuant to Section 2.2(c) or in any LC
and related reimbursement obligations under the LC Subfacility pursuant to
Section 2.3(c)) plus any accrued but unpaid interest thereon, accrued but
unpaid Fees owing to the Affected Lender, and any amounts owing to the Affected
Lender under Section 4, or (ii) pay to the Affected Lender the aggregate
principal balance of Loans (together with any participation held by the
Affected Lender in any Swing Line Loan pursuant to Section 2.2(c) or in any LC
and related reimbursement obligations under the LC Subfacility pursuant to
Section 2.3(c)) then owing to the Affected Lender plus any accrued but unpaid
interest thereon, accrued but unpaid Fees owing to the Affected Lender, and any
amounts owing to the Affected Lender under Section 4, whereupon the Affected
Lender shall no longer be a party hereto or have any rights or obligations
hereunder or under any of the other Loan Documents, subject to the survival of
certain provisions as set forth in Section 12.14. Each of Administrative Agent
and the Affected Lender shall reasonably cooperate in effectuating the
replacement of an Affected Lender under this Section, but at no time shall
Administrative Agent, the Affected Lender, or any other Lender be obligated in
any way whatsoever to initiate any such replacement or to assist in finding an
Eligible Assignee. The exercise by Borrower of its rights under this Section
shall be at Borrower’s sole cost and expenses and at no cost or expense to
Administrative Agent, the Affected Lender, or any of the other Lenders. The
terms of this Section shall not in any way limit Borrower’s obligation to pay
to any Affected Lender compensation owing to such Affected Lender pursuant to
Section 4.

SECTION 5.      CONDITIONS PRECEDENT.

     5.1      Initial Conditions Precedent. The effectiveness of this Agreement is
subject to the following conditions precedent:

		
	 	     (a)     Administrative Agent shall have received each of the following,
in form and substance satisfactory to the Lenders:

		
	 	     (i)     Counterparts of this Agreement executed by each of the
parties hereto;
	 
	 	     (ii)    With respect to any Lender requesting Notes pursuant to
Section 2.11(b), a Revolving Note, in the form of Exhibit E-1, one
payable to each such requesting Lender (as the case may be);
	 
	 	     (iii)   If requested by Swing Line Lender pursuant to Section
2.11(b), a Swing Line Note in the form of Exhibit E-2, payable to
Swing Line Lender;
	 
	 	     (iv)    Copies (certified by the Secretary or Assistant Secretary
of Borrower) of the Articles of Incorporation and Bylaws of Borrower;
	 
	 	     (v)     An opinion of Sutherland Asbill & Brennan LLP, counsel to
Borrower, addressed to Administrative Agent and the Lenders, in
substantially the form of
Exhibit F;
	 
	 	     (vi)    A certificate of incumbency signed by the Secretary or
Assistant Secretary of Borrower with respect to each of the officers
of Borrower authorized to execute and deliver the Loan Documents and
the officers of Borrower then authorized to deliver Notices of
Borrowing, LC Requests, Notices of Continuation, and Notices of
Conversion;

	 	 	 
	38	 	
Third Amended and Restated Credit Agreement

 

 

		
	 	     (vii)   Copies (certified by the Secretary or Assistant Secretary
of Borrower) of all corporate action taken by Borrower to authorize
the execution, delivery, and performance of the Loan Documents;
	 
	 	     (viii)  A copy of each of the documents, instruments, and
agreements evidencing any of the Debt described on Schedule 6.1(g)
and a copy of each Material Contract described on Schedule 6.1(h),
certified as true, correct, and complete by the chief financial
officer of Borrower;
	 
	 	     (ix)    The Fees then due under Section 3.8;
	 
	 	     (x)     A Compliance Certificate calculated as of December 31,
2002;
	 
	 	     (xi)    Evidence that all outstanding Debt owed to any
Non-Continuing Lender, if any, under the Existing Agreement has been
or concurrently with the Effective Date is being repaid by Borrower,
together with a payoff letter in form and substance reasonably
acceptable to Administrative Agent.
	 
	 	     (xii)   Evidence that all accrued and unpaid interest under the
Existing Agreement and all unpaid fees and other amounts payable
under the Existing Agreement has been or concurrently with the
Effective Date is being repaid by Borrower.
	 
	 	     (xiii)  A certificate from Borrower (in form and substance
satisfactory to Administrative Agent), certifying that as of the
Effective Date:

		
	 	     (A)     there shall not have occurred any event, condition,
situation, or status since the date of the information
contained in (i) the financial and business projections,
budgets, pro forma data, and forecasts concerning Borrower and
its Subsidiaries delivered to Administrative Agent and the
Lenders prior to the Effective Date or (ii) the facts or
information represented or provided to Lenders prior to the
Effective Date as set forth in the Reference 10-K or in
Borrower’s most recent 10-Q or represented or provided by
Borrower in the meeting with the Lenders conducted on February
21, 2003, which event, condition, situation, or status has had
or could reasonably be expected to result in a material adverse
change in the business, assets, liabilities (actual or
contingent), operations, condition (financial or otherwise), or
prospects of Borrower and its Subsidiaries, taken as a whole;
	 
	 	     (B)     there is no litigation, action, suit, investigation,
or other arbitral, administrative, or judicial proceeding
pending or threatened which could reasonably be expected to (x)
result in a Material Adverse Effect or (y) restrain or enjoin,
impose materially burdensome conditions on, or otherwise
materially and adversely affect the ability of Borrower to
fulfill its obligations under the Loan Documents; and
	 
	 	     (C)     Borrower and its Subsidiaries shall have received all
approvals, consents, and waivers, and shall have made or given
all necessary filings and notices as shall be required to
consummate the transactions contemplated hereby without the
occurrence of any default under, conflict with, or violation of
(x) any Applicable Law or (y) any agreement, document, or
instrument to which Borrower or any Subsidiary is a party or by
which any of them or their respective

	 	 	 
	39	 	
Third Amended and Restated Credit Agreement

 

 

		
	 	properties is bound (including without limitation, the Senior
Note Agreements), except for such approvals, consents, waivers,
filings, and notices the receipt, making, or giving of which
would not reasonably be likely to (1) have a Material Adverse
Effect, or (2) restrain or enjoin, impose materially burdensome
conditions on, or otherwise materially and adversely affect the
ability of Borrower to fulfill its obligations under the Loan
Documents; and

		
	 	     (xiv)     Such other documents, agreements and instruments as
Administrative Agent on behalf of the Lenders may reasonably request.

		
	 	     (b)     In the good faith judgment of Administrative Agent and the
Lenders, there shall not have occurred or exist any material disruption of
financial or capital markets that could reasonably be expected to
materially and adversely affect the transactions contemplated by the Loan
Documents.

     5.2      Conditions Precedent to All Loans or LC Issuances. The obligation of
the Lenders to make any Loans (other than Loans constituting the payment by LC
Issuer of drafts under LCs) or the obligation of LC Issuer to issue any LC is
subject to the further conditions precedent that: (a) Borrower is in
compliance with the Asset Coverage Ratio requirements as set forth in Section
9.1(e) immediately prior to the making of such Loan and immediately after
giving effect thereto; (b) no Default or Event of Default shall have occurred
and be continuing as of the date of the making of such Loan or would exist
immediately after giving effect thereto; (c) the representations and warranties
made or deemed made by Borrower and its Subsidiaries in the Loan Documents to
which any of them is a party, shall be true and correct on and as of the date
of the making of such Loan with the same force and effect as if made on and as
of such date except to the extent that such representations and warranties
expressly relate solely to an earlier date (in which case such representations
and warranties shall have been true and accurate on and as of such earlier
date) and except for changes in factual circumstances specifically and
expressly permitted hereunder; (d) in the case of the borrowing of Loans (other
than Swing Line Loans), Administrative Agent shall have received a timely
Notice of Borrowing; and (e) in the case of the issuance of an LC,
Administrative Agent shall have timely received an LC Request (together with
the applicable LC Agreement) and the Fees provided for in Section 3.8 for the
account of LC Issuer and the Lenders entitled thereto. Each Credit Event shall
constitute a certification by Borrower to the effect set forth in the preceding
sentence (both as of the date of the giving of notice relating to such Credit
Event and, unless Borrower otherwise notifies Administrative Agent prior to the
date of such Credit Event, as of the date of the occurrence of such Credit
Event). In addition, if such Credit Event is the making of a Loan or the
issuance of an LC, Borrower shall be deemed to have represented to
Administrative Agent and the Lenders at the time such Loan is made or LC is
issued that all conditions to the making of such Loan or the issuance of such
LC contained in Section 5 have been satisfied. Each condition precedent in
this Agreement is material to the transactions contemplated in this Agreement,
and time is of the essence in respect of each thereof. Subject to the prior
approval of Requisite Lenders, the Lenders may fund any Loan or LC Issuer may
issue any LC without all conditions being satisfied, but, to the extent
permitted by Applicable Law, the same shall not be deemed to be a waiver of the
requirement that each such condition precedent be satisfied as a prerequisite
for any subsequent funding or issuance, unless Requisite Lenders specifically
waive each such item in writing.

SECTION 6.      REPRESENTATIONS AND WARRANTIES.

     6.1      Representations and Warranties. In order to induce Administrative
Agent and each Lender to enter into this Agreement and to make Loans and to
induce LC Issuer to issue LCs, Borrower represents and warrants to
Administrative Agent, LC Issuer, and each Lender as follows:

	 	 	 
	40	 	
Third Amended and Restated Credit Agreement

 

 

		
	 	     (a)     Organization; Power; Qualification. Except as disclosed on
Schedule 6.1(a), each of Borrower and its Subsidiaries is a corporation,
partnership, or other legal entity, duly organized or formed, validly
existing and in good standing under the jurisdiction of its incorporation
or formation, has the power and authority to own or lease its respective
properties and to carry on its respective business as now being and
hereafter proposed to be conducted, and is duly qualified and is in good
standing as a foreign corporation, partnership, or other legal entity, and
authorized to do business, in each jurisdiction in which the character of
its properties or the nature of its business requires such qualification
or authorization and where the failure to be so qualified or authorized
would have, in each instance, a Material Adverse Effect.

		
	 	     (b)     Ownership Structure. As of the Agreement Date, Schedule 6.1(b)
correctly sets forth the corporate structure and ownership interests of
the Subsidiaries including the correct legal name of each Subsidiary, its
jurisdiction of formation, the Persons holding equity interests in such
Subsidiary, and their percentage equity or voting interest in such
Subsidiary. As of the Agreement Date, SBIC, REIT, and Allied Capital CMT,
Inc. are the only Material Subsidiaries. Except as set forth in such
Schedule, and except for Permitted Preferred Stock:

		
	 	     (i)     No Consolidated Subsidiary has issued to any third party any
securities convertible into such Consolidated Subsidiary’s capital
stock or other equity interests or any options, warrants, or other
rights to acquire any securities convertible into such capital stock
or other equity interests, and

		
	 	     (ii)     The outstanding capital stock of, or other equity interests
in, each Consolidated Subsidiary are owned by Borrower and its
Consolidated Subsidiaries indicated on such Schedule free and clear
of all Liens, warrants, options and rights of others of any kind
whatsoever. All such outstanding capital stock and other equity
interests have been validly issued and, in the case of capital stock,
are fully paid and nonassessable.

		
	 	     (c)     Authorization of Agreement, Notes, Loan Documents, and
Borrowings. Borrower has the right and power, and has taken all necessary
action to authorize it, to borrow hereunder or to request the issuance of
an LC and to incur reimbursement obligations with respect thereto.
Borrower has the right and power, and has taken all necessary action to
authorize it to execute, deliver, and perform each of the Loan Documents
to which it is a party in accordance with their respective terms and to
consummate the transactions contemplated hereby and thereby. The Loan
Documents have been duly executed and delivered by the duly authorized
officers of Borrower, and each is a legal, valid, and binding obligation
of Borrower, enforceable against it in accordance with its respective
terms.

		
	 	     (d)     Compliance of Agreement, Notes, Loan Documents, and Borrowing
with Laws, etc. The execution, delivery and performance of this
Agreement, the Notes, if any, and the other Loan Documents in accordance
with their respective terms, and the borrowings hereunder do not and will
not, by the passage of time, the giving of notice, or otherwise: (i)
require any Governmental Approval, other than such as have been obtained
and are in full force and effect, or violate any Applicable Law (including
all Environmental Laws) relating to Borrower or any Subsidiary; (ii)
conflict with, result in a breach of, or constitute a default under the
articles of incorporation or the bylaws of Borrower or the organizational
documents of any Subsidiary, or any indenture, agreement, or other
instrument to which Borrower or any Subsidiary is a party or by which it
or any of its respective properties may be bound; or (iii) result in or
require the

	 	 	 
	41	 	
Third Amended and Restated Credit Agreement

 

 

		
	 	creation or imposition of any Lien upon or with respect to any property
now owned or hereafter acquired by Borrower or any Subsidiary.

		
	 	     (e)     Compliance with Law; Governmental Approvals. Borrower and each
Subsidiary is in compliance with each Governmental Approval applicable to
it and in compliance with all other Applicable Laws relating to it, except
for noncompliances which, and Governmental Approvals the failure to
possess which, would not, individually or in the aggregate, cause a
Default or Event of Default or have a Material Adverse Effect.

		
	 	     (f)     Ownership of Assets; Liens. Each of Borrower and its
Consolidated Subsidiaries has good title to all of its assets. There are
no Liens against any of such assets except for Liens permitted by Section
9.3.

		
	 	     (g)     Debt. Schedule 6.1(g) is, as of the Effective Date, a complete
and correct listing of all Debt of Borrower and its Subsidiaries,
including all guaranties of Borrower and its Subsidiaries and all letters
of credit and acceptance facilities extended to Borrower or any
Subsidiary.

		
	 	     (h)     Material Contracts. Schedule 6.1(h) is a true, correct, and
complete listing of all Material Contracts as of the Effective Date.

		
	 	     (i)     Litigation. There are no actions, suits, or proceedings pending
(nor, to the knowledge of Borrower or any Subsidiary, are there any
actions, suits, or proceedings threatened, nor is there any basis
therefor) against or in any other way relating adversely to or affecting
Borrower or any Subsidiary or any of its respective property in any court
or before any arbitrator of any kind or before or by any other
Governmental Authority which is reasonably likely to be adversely
determined and result in a Material Adverse Effect, and there are no
strikes, slow downs, work stoppages or walkouts, or other labor disputes
in progress or threatened relating to Borrower or any Subsidiary.

		
	 	     (j)     Taxes. All federal, state, and other tax returns of Borrower and
its Consolidated Subsidiaries required by Applicable Law to be filed have
been duly filed, and all federal, state, and other Taxes upon Borrower and
any of its Consolidated Subsidiaries and their respective properties,
income, profits, and assets which are due and payable have been paid,
except any such nonpayment which is at the time permitted under Section
7.6. None of the United States income tax returns of Borrower and its
Consolidated Subsidiaries are under audit as of the Agreement Date. All
charges, accruals, and reserves on the books of Borrower and each of its
Consolidated Subsidiaries in respect of any Taxes are in accordance with
GAAP.

		
	 	     (k)     Financial Statements: No Material Adverse Change. Borrower has
furnished to each Lender copies of the audited consolidated balance sheet
of Borrower and its Consolidated Subsidiaries for the fiscal year ending
December 31, 2002, and the related consolidated statements of operations,
changes in net assets, and cash flows for the fiscal year ending on such
date, with the opinion thereon of KPMG LLP. Such balance sheet and
statements (including in each case related schedules and notes) present
fairly, in accordance with GAAP consistently applied throughout the
periods involved, the consolidated financial position of Borrower as at
their respective dates and the results of operations, changes in net
assets, and cash flows for such periods (subject, as to interim
statements, to changes resulting from normal year-end audit adjustments).
Neither Borrower nor any of its Consolidated Subsidiaries has on the
Agreement Date any material contingent liabilities, other liabilities,
liabilities for Taxes, unusual or long-term commitments or unrealized or
forward anticipated losses from any unfavorable commitments,

	 	 	 
	42	 	
Third Amended and Restated Credit Agreement

 

 

		
	 	except as referred to or reflected or provided for in said financial
statements. Since December 31, 2002, there has been no material adverse
change in the business, assets, liabilities (actual or contingent),
operations, condition (financial or otherwise), or prospects of Borrower
and its Consolidated Subsidiaries taken as a whole. Each of Borrower and
its Consolidated Subsidiaries is Solvent.

		
	 	     (l)     ERISA. Each member of the ERISA Group has fulfilled its
obligations under the minimum funding standards of ERISA and the Internal
Revenue Code with respect to each Plan and is in compliance with the
presently applicable provisions of ERISA and the Internal Revenue Code
with respect to each Plan except for noncompliances which would not,
individually or in the aggregate, cause a Default or an Event of Default
or have a Material Adverse Effect. No member of the ERISA Group has (i)
sought a waiver of the minimum funding standard under Section 412 of the
Internal Revenue Code in respect of any Plan, (ii) failed to make any
contribution or payment to any Plan or Multiemployer Plan or in respect of
any Benefit Arrangement, or made any amendment to any Plan or Benefit
Arrangement, which has resulted or could result in the imposition of a
Lien or the posting of a bond or other security under ERISA or the
Internal Revenue Code, or (iii) incurred any liability under Title IV of
ERISA, other than a liability to the PBGC for premiums under Section 4007
of ERISA.

		
	 	     (m)     Absence of Defaults. Neither Borrower nor any Material
Subsidiary is in default under its articles of incorporation, bylaws,
partnership agreement, or other similar organizational documents, and no
event has occurred, which has not been remedied, cured or waived: (i)
which constitutes a Default or an Event of Default; or (ii) which
constitutes, or which with the passage of time, the giving of notice, a
determination of materiality, the satisfaction of any condition, or any
combination of the foregoing, would constitute, a default or event of
default by Borrower or any Subsidiary under any Debt, Material Contract,
any other agreement (other than this Agreement) or judgment, decree, or
order to which Borrower or any Subsidiary is a party or by which Borrower
or any Subsidiary or any of their respective properties may be bound where
such default or event of default could, individually or in the aggregate,
have a Material Adverse Effect.

		
	 	     (n)     Environmental Laws. Borrower and its Subsidiaries have obtained
all Governmental Approvals which are required under Environmental Laws,
and are in compliance with all terms and conditions of such Governmental
Approvals, which the failure to obtain or to comply with could reasonably
be expected to have a Material Adverse Effect. Each of Borrower and its
Subsidiaries is also in compliance with all other limitations,
restrictions, conditions, standards, prohibitions, requirements,
obligations, schedules, and timetables contained in the Environmental Laws
the failure with which to comply could have a Material Adverse Effect.
Neither Borrower nor any Subsidiary is aware of, or has received notice
of, any past, present, or future events, conditions, circumstances,
activities, practices, incidents, actions, or plans which, with respect to
Borrower or any of its Subsidiaries may interfere with or prevent
compliance or continued compliance with Environmental Laws, or may give
rise to any common-law or legal liability, or otherwise form the basis of
any claim, action, demand, suit, proceeding, hearing, study, or
investigation, based on or related to the manufacture, processing,
distribution, use, treatment, storage, disposal, transport, or handling or
the emission, discharge, release, or threatened release into the
environment, of any pollutant, contaminant, chemical, or industrial,
toxic, or other Hazardous Materials that could be reasonably expected to
have a Material Adverse Effect; and there is no civil, criminal, or
administrative action, suit, demand, claim, hearing, notice, or demand
letter, notice of violation, investigation, or proceeding pending or, to
the knowledge of Borrower or any Subsidiary, after due inquiry,
threatened, against Borrower or any of its Subsidiaries relating in any
way to Environmental Laws that could be reasonably expected to have a
Material Adverse Effect.

	 	 	 
	43	 	
Third Amended and Restated Credit Agreement

 

 

		
	 	     (o)     Investment Company; Public Utility Holding Company. Borrower is
a “business development company” within the meaning of the Investment
Company Act. Neither Borrower nor any Subsidiary is (i) a “holding
company” or a “subsidiary company” of a “holding company,” or an
“affiliate” of a “holding company” or of a “subsidiary company” of a
“holding company,” within the meaning of the Public Utility Holding
Company Act of 1935, as amended, or (ii) except for other Subsidiaries
that are business development companies, subject to any other Applicable
Law which purports to regulate or restrict its ability to borrow money or
to consummate the transactions contemplated by this Agreement or to
perform its obligations under any Loan Document to which it is a party.

		
	 	     (p)     Margin Stock. Neither Borrower nor any Subsidiary is engaged
principally, or as one of its important activities, in the business of
purchasing or carrying margin stock or extending credit for the purpose,
whether immediate, incidental, or ultimate, of buying or carrying “margin
stock” within the meaning of Regulation U (as enacted by the Board of
Governors of the Federal Reserve System, as amended). Following the
application of the proceeds of each Loan, not more than 25% of the value
of the assets (either of Borrower only or of Borrower and its Consolidated
Subsidiaries) subject to the provisions of Section 9.3 or Section 9.5 or
subject to any similar restriction contained in any agreement or
instrument between Borrower and any Lender or any Affiliate of any Lender
related to Debt and within the scope of Section 10.1(e) will be margin
stock.

		
	 	     (q)     Affiliate Transactions. Except as permitted by Section 9.8,
neither Borrower nor any Subsidiary is a party to or bound by any
agreement or arrangement (whether oral or written) to which any Affiliate
of Borrower or any Subsidiary is a party. Neither Borrower nor any
Subsidiary is a party to any agreement or arrangement which restricts or
prohibits the payment of dividends or the repayment of inter-company loans
by a Subsidiary to Borrower, except for SBA approval of dividends paid by
SBIC, which Borrower has no reason to believe will not be granted by the
SBA.

		
	 	     (r)     Intellectual Property. Borrower and each Subsidiary owns or has
the right to use, under valid license agreements or otherwise, all
patents, licenses, franchises, trademarks, trademark rights, trade names,
trade name rights, trade secrets, and copyrights (collectively,
“Intellectual Property”) used in the conduct of its businesses as now
conducted and as contemplated by the Loan Documents, which the failure to
own or have the right to use could reasonably be expected to have a
Material Adverse Effect, without known conflict with any patent, license,
franchise, trademark, trade secret, trade name, copyright, or other
proprietary right of any other Person.

		
	 	     (s)     Accuracy and Completeness of Information. All written
information, reports, and other papers and data furnished to
Administrative Agent or any Lender by, on behalf of, or at the direction
of, Borrower or any Subsidiary were, at the time the same were so
furnished, complete and correct in all material respects, to the extent
necessary to give the recipient a true and accurate knowledge of the
subject matter, or, in the case of financial statements, present fairly,
in accordance with GAAP consistently applied throughout the periods
involved, the financial position of the Persons involved as at the date
thereof and the results of operations for such periods. As of the
Agreement Date, no fact is known to Borrower or any Subsidiary which has
had, or may in the future have (so far as Borrower or any Subsidiary can
reasonably foresee), a Material Adverse Effect which has not been set
forth in the financial statements referred to in Section 6.1(k) or in such
information, reports or other papers or data or otherwise disclosed in
writing to Administrative Agent and the Lenders prior to the Effective
Date. No document

	 	 	 
	44	 	
Third Amended and Restated Credit Agreement

 

 

		
	 	furnished or written statement made to Administrative Agent or any Lender
in connection with the negotiation, preparation, or execution of this
Agreement or any of the other Loan Documents contains or will contain any
untrue statement of a fact material to the creditworthiness of Borrower or
any Subsidiary or omits or will omit to state a material fact necessary in
order to make the statements contained therein not misleading.
Notwithstanding the first and third sentences of this Section 6.1(s), as
to projected financial information, Borrower represents and warrants only
that such information, at the time furnished to Administrative Agent or
any Lender, was prepared in good faith based on reasonable assumptions
under the circumstances.
	 
	 	     (t)     RIC
Status. Each of Borrower and SBIC qualifies as a RIC.
	 
	 	     (u)     Not Plan Assets. The assets of Borrower or any Subsidiary do not
and will not constitute “plan assets,” within the meaning of ERISA, the
Internal Revenue Code and the respective regulations promulgated
thereunder. The execution, delivery and performance of this Agreement,
and the borrowing and repayment of amounts hereunder, do not and will not
constitute “prohibited transactions” under ERISA or the Internal Revenue
Code.

		
	 	     (v)     Business. As of the Agreement Date, Borrower and its
Subsidiaries are substantially engaged in the businesses described in the
Reference 10-K.

		
	 	     (w)     Tax Shelter Regulations. Borrower does not intend to treat the
Loans and/or LCs and related transactions as being a “reportable
transaction” (within the meaning of Treasury Regulation Section 1.6011-4).
In the event Borrower determines to take any action inconsistent with
such intention, it will promptly notify Administrative Agent thereof. If
Borrower so notifies Administrative Agent, Borrower acknowledges that one
or more of the Lenders may treat its Revolving Loan and/or its interest in
Swing Line Loans and/or LCs as part of a transaction that is subject to
Treasury Regulation 301.6112-1, and that such Lender or Lenders, as
applicable, will maintain the lists and other records required by such
Treasury Regulation.

       6.2      Survival of Representations and Warranties, Etc. All statements
contained in any certificate, financial statement, or other instrument
delivered by or on behalf of Borrower or any Subsidiary to Administrative Agent
or any Lender pursuant to or in connection with this Agreement or any of the
other Loan Documents (including, but not limited to, any such statement made in
or in connection with any amendment thereto or any statement contained in any
certificate, financial statement, or other instrument delivered by or on behalf
of Borrower prior to the Agreement Date and delivered to Administrative Agent
or any Lender in connection with closing the transactions contemplated hereby)
shall constitute representations and warranties made by Borrower under this
Agreement, and shall survive the effectiveness of this Agreement, the execution
and delivery of the Loan Documents, and the making of the Loans. All
representations and warranties made under this Agreement and the other Loan
Documents shall be deemed to be made at and as of the Agreement Date, the
Effective Date, and at and as of the date of the occurrence of any Credit
Event, except to the extent that such representations and warranties expressly
relate solely to an earlier date (in which case such representations and
warranties shall have been true and accurate on and as of such earlier date)
and except for changes in factual circumstances specifically permitted
hereunder. All such representations and warranties have been or will be relied
upon by Administrative Agent and each Lender, regardless of any investigation
made by Administrative Agent or any Lender or on their behalf and
notwithstanding that Administrative Agent or any Lender may have had notice or
knowledge of any Default at the time of the making of any Loan, and shall
continue in full force and effect as long as any Loan or any other Obligation
hereunder shall remain unpaid or unsatisfied or any LC shall remain
outstanding.

SECTION 7.      AFFIRMATIVE COVENANTS.

	 	 	 
	45	 	
Third Amended and Restated Credit Agreement

 

 

     For so long as this Agreement is in effect and thereafter until the
payment in full of the Obligations and the termination or expiration of all
LCs, unless the Requisite Lenders (or, if required pursuant to Section 12.5,
all of the Lenders) shall otherwise consent in the manner provided for in
Section 12.5, Borrower shall:

     7.1      
Preservation of Existence and Similar Matters. Except as otherwise
permitted under Section 9.5, preserve and maintain, and Borrower shall cause each Material
Subsidiary to preserve and maintain, its respective existence, rights,
franchises, licenses, and privileges in the jurisdiction of its incorporation
or formation and qualify and remain qualified and authorized to do business in
each jurisdiction in which the character of its properties or the nature of its
business requires such qualification and authorization and where the failure to
be so authorized and qualified could have a Material Adverse Effect.

     7.2      Compliance with Applicable Law and Material Contracts. Comply, and
Borrower shall cause each Material Subsidiary to comply, with (a) all
Applicable Laws (including, without limitation, ERISA, Environmental Laws, and
the Investment Company Act), including the obtaining of all Governmental
Approvals, the failure with which to comply could have a Material Adverse
Effect, and (b) all material terms and conditions of all Material Contracts to
which it is a party.

     7.3      Maintenance of Property. In addition to the requirements of any of
the other Loan Documents, (a) protect and preserve, and Borrower shall cause
each Material Subsidiary to protect and preserve, all of its material
properties, including, but not limited to, all Intellectual Property, and
maintain in good repair, working order, and condition all tangible properties,
ordinary wear and tear excepted, and (b) from time to time make or cause to be
made, and Borrower shall cause each Material Subsidiary to make, all needed and
appropriate repairs, renewals, replacements, and additions to such properties,
so that the business carried on in connection therewith may be properly and
effectively conducted at all times.

     7.4      Conduct of Business. Together with its Subsidiaries, at all times
carry on their business described in the Reference 10-K.

     7.5      Insurance. In addition to the requirements of any of the other Loan
Documents, maintain, and Borrower shall cause each Material Subsidiary to
maintain, insurance with financially sound and reputable insurance companies
against such risks and in such amounts as is customarily maintained by Persons
engaged in similar businesses or as may be required by Applicable Law.

     7.6      Payment of Taxes and Claims. Pay or discharge, and Borrower shall
cause each Material Subsidiary to pay and discharge, when due (a) all Taxes
imposed upon it or upon its income or profits or upon any properties belonging
to it, and (b) all lawful claims of materialmen, mechanics, carriers,
warehousemen, and landlords for labor, materials, supplies, and rentals which,
if unpaid, might become a Lien on any properties of such Person; provided,
however, that this Section shall not require the payment or discharge of any
such Tax or claim which is being contested in good faith by appropriate
proceedings which operate to suspend the collection thereof and for which
adequate reserves have been established on the books of Borrower or such
Subsidiary, as applicable, in accordance with GAAP.

     7.7      Visits and Inspections. Permit, and Borrower shall cause each
Material Subsidiary to permit, representatives or agents of Administrative
Agent or any Lender, from time to time, as often as may be reasonably requested
and at the expense of Administrative Agent (unless an Event of Default shall be
continuing in which case the exercise by Administrative Agent of its rights
under this Section shall be at the expense of Borrower), but only during normal
business hours, to: (a) visit and inspect all properties of Borrower and each
Material Subsidiary; (b) inspect and make extracts from their respective books
and

	 	 	 
	46	 	
Third Amended and Restated Credit Agreement

 

 

records, including, but not limited to, management letters prepared by
independent accountants; and (c) discuss with its principal officers and its
independent accountants, its business, assets, liabilities, financial
conditions, results of operations, and business prospects. If requested by
Administrative Agent, Borrower shall execute an authorization letter addressed
to its accountants authorizing Administrative Agent or any Lender to discuss
the financial affairs of Borrower and any Material Subsidiary with its
accountants.

     7.8
     Use of Proceeds. Use the proceeds of Loans to repay existing Debt
owed to any Non-Continuing Lender under the Existing Agreement, to repay all
accrued and unpaid interest and fees under the Existing Agreement, to pay the
fees and expenses related to the amendment and restatement of the Existing
Agreement, and for working capital and general corporate purposes of Borrower
and its Subsidiaries. Borrower shall not, and Borrower shall not permit any
Subsidiary to, use any part of the proceeds of any Loan, directly or
indirectly, for a purpose which violates any Applicable Law, including, without
limitation, the provisions of Regulations T, U, and X (as enacted by the Board
of Governors of the Federal Reserve System, as amended).

     7.9
     Environmental Matters. Comply, and Borrower shall cause all of its
Subsidiaries to comply, with all Environmental Laws, the failure with which to
comply could have a Material Adverse Effect. If Borrower or any Subsidiary
shall (a) receive notice that any violation of any Environmental Law may have
been committed or is about to be committed by such Person, (b) receive notice
that any administrative or judicial complaint or order has been filed or is
about to be filed against Borrower or any Subsidiary alleging violations of any
Environmental Law or requiring Borrower or any Subsidiary to take any action in
connection with the release of Hazardous Materials, or (c) receive any notice
from a Governmental Authority or private party alleging that Borrower or any
Subsidiary may be liable or responsible for costs associated with a response to
or cleanup of a release of a Hazardous Materials or any damages caused thereby,
and such notices, individually or in the aggregate, could have a Material
Adverse Effect, Borrower shall provide Administrative Agent with a copy of such
notice within ten days after the receipt thereof by Borrower or any of the
Subsidiaries. Borrower and the Subsidiaries shall promptly take all actions
necessary to prevent the imposition of any Liens on any of their respective
properties arising out of or related to any Environmental Laws.

     7.10
     Books and Records. Maintain, and Borrower shall cause each of the
Subsidiaries to maintain, books and records pertaining to its business
operations in such detail, form and scope as is consistent with good business
practice in accordance with GAAP.

     7.11
     Status of RIC and BDC. At all times maintain, and cause SBIC to
maintain, its status as a RIC under the Internal Revenue Code, and as a
“business development company” under the Investment Company Act.

     7.12
     ERISA Exemptions. Not, and Borrower shall not permit any Subsidiary
to, permit any of its respective assets to become or be deemed to be “plan
assets” within the meaning of ERISA, the Internal Revenue Code and the
respective regulations promulgated thereunder.

     7.13
     Further Assurances. At Borrower’s cost and expense, upon the request
of Administrative Agent, duly execute and deliver or cause to be duly executed
and delivered, to Administrative Agent and the Lenders such further
instruments, documents, and certificates, and do and cause to be done such
further acts that may be necessary or advisable in the opinion of
Administrative Agent to carry out more effectively the provisions and purposes
of this Agreement and the other Loan Documents.

SECTION 8.
     INFORMATION.

	 	 	 
	47	 	
Third Amended and Restated Credit Agreement

 

 

     For so long as this Agreement is in effect and thereafter until payment in
full of the Obligations and the termination or expiration of all LCs, unless
the Requisite Lenders (or, if required pursuant to Section 12.5, all of the
Lenders) shall otherwise consent in the manner set forth in Section 12.5,
Borrower shall furnish to each Lender (or to Administrative Agent if so
provided below) at its Lending Office:

     8.1
     Quarterly Financial
Statements. As soon as available or within 5 days
after the date required to be filed with the Securities and Exchange Commission
as part of Borrower’s periodic reporting and in any event within 50 days after
the close of each of the first, second, and third fiscal quarters of Borrower,
the consolidated balance sheets of Borrower and its Consolidated Subsidiaries
as at the end of each such period and the related consolidated statements of
operations, changes in net assets, and cash flows of Borrower and its
Consolidated Subsidiaries for each such period, setting forth in each case in
comparative form the figures for the corresponding periods of the previous
fiscal year, all of which shall be certified by the chief financial officer of
Borrower, in his or her opinion, to present fairly, in accordance with GAAP,
the consolidated financial position of Borrower and its Consolidated
Subsidiaries as at the date thereof and the results of operations for such
period (subject to normal year-end audit adjustments).

     8.2
     Year-End Statements. As soon as available or within 5 days after the
date required to be filed with the Securities and Exchange Commission as part
of Borrower’s periodic reporting and in any event within 95 days after the end
of each fiscal year of Borrower, the consolidated and consolidating balance
sheets of Borrower and its Consolidated Subsidiaries as at the end of such
fiscal year and the related consolidated and (except in the case of the
statement of changes in net assets) consolidating statements of operations,
changes in net assets, and cash flows of Borrower and its Consolidated
Subsidiaries for such fiscal year, setting forth in comparative form the
figures as at the end of and for the previous fiscal year, all of which shall
be certified by (a) the chief financial officer of Borrower, in his or her
opinion, to present fairly, in accordance with GAAP, the financial position of
Borrower and its Consolidated Subsidiaries as at the date thereof and the
result of operations for such period and (b) independent certified public
accountants of recognized national standing acceptable to the Requisite
Lenders, whose opinion shall be unqualified and in scope and substance
satisfactory to the Requisite Lenders and who shall have authorized Borrower to
deliver such financial statements and opinion thereon to Administrative Agent
and the Lenders pursuant to this Agreement.

     8.3     Compliance
Certificate; Asset Reports.

		
	 	     (a)     At the time the financial statements are furnished pursuant to
Sections 8.1 and 8.2, a Compliance Certificate: (i) setting forth in
reasonable detail as at the end of such quarterly accounting period or
fiscal year, as the case may be, the calculations required to establish
whether or not Borrower and its Consolidated Subsidiaries were in
compliance with the covenants contained in Section 9.1, (ii) stating that,
to the best of his or her knowledge, information, and belief, no Default
or Event of Default exists, or, if such is not the case, specifying such
Default or Event of Default and its nature, when it occurred, and whether
it is continuing and the steps being taken by Borrower with respect to
such event, condition, or failure. At the time the financial statements
are furnished pursuant to Section 8.2, Borrower will deliver to the
Lenders a certificate of the independent accountants performing the audit
of such financial statements acknowledging that Borrower was in compliance
with the financial covenants of Section 9.1, and setting forth the
procedures used to make such determination.

		
	 	     (b)     At the time the financial statements are furnished pursuant to
Sections 8.1 and 8.2, the following reports with respect to Investments of
Borrower and its Consolidated

	 	 	 
	48	 	
Third Amended and Restated Credit Agreement

 

 

		
	 	     Subsidiaries, as of the end of such fiscal quarter, in form and scope
acceptable to Administrative Agent:

		
	 	     (i)     A consolidated statement of Investments as presented in
Borrower’s consolidated financial statements;

		
	 	     (ii)     A report of unrealized and realized gains (losses) (with
detail as to unrealized gains and losses by portfolio company for
private finance Investments and in the aggregate for Commercial
Mortgage Loans, and other Investments); and
	 
	 	     (iii)     A delinquency report of loans over 120 days past-due.

		
	 	8.4     Other
Information.

		
	 	     (a)     Not later than 90 days prior to the last day of each fiscal year
of Borrower, pro forma projected consolidated financial statements for
Borrower and its Consolidated Subsidiaries reflecting the forecasted
financial condition and results of operations of Borrower and its
Consolidated Subsidiaries on a quarterly basis for the next succeeding
year, accompanied by calculations establishing whether or not Borrower
would be in compliance on a pro forma basis with the covenants contained
in Section 9.1, in each case in form and detail reasonably acceptable to
the Administrative Agent;

		
	 	     (b)     Promptly upon receipt thereof, copies of all reports, if any,
submitted to Borrower or its Board of Directors by its independent public
accountants, including, without limitation, any management report;

		
	 	     (c)     Within five Business Days of the filing thereof (or of the
effectiveness thereof, in the case of registration statements), copies of
all registration statements (other than the exhibits thereto and any
effective registration statements on Form S-8 or its equivalent), and
reports on Forms 10-K, 10-Q, and 8-K (or their equivalents) which Borrower
shall file with the Securities and Exchange Commission (or any
Governmental Authority substituted therefor) or any national securities
exchange;

		
	 	     (d)     Promptly upon the mailing thereof to the shareholders of Borrower
generally, copies of all financial statements, reports, and proxy
statements so mailed and promptly upon the issuance thereof copies of all
press releases issued by Borrower;

		
	 	     (e)     If and when any member of the ERISA Group (i) gives or is
required to give notice to the PBGC of any “reportable event” (as defined
in Section 4043 of ERISA) with respect to any Plan which might constitute
grounds for a termination of such Plan under Title IV of ERISA, or knows
that the plan administrator of any Plan has given or is required to give
notice of any such reportable event, a copy of the notice of such
reportable event given or required to be given to the PBGC; (ii) receives
notice of complete or partial withdrawal liability under Title IV of ERISA
or notice that any Multiemployer Plan is in reorganization, is insolvent,
or has been terminated, a copy of such notice; (iii) receives notice from
the PBGC under Title IV of ERISA of an intent to terminate, impose
liability (other than for premiums under Section 4007 of ERISA) in respect
of, or appoint a trustee to administer, any Plan, a copy of such notice;
(iv) applies for a waiver of the minimum funding standard under Section
412 of the Internal Revenue Code, a copy of such application; (v) gives
notice of intent to terminate any Plan under Section 4041(c) of ERISA, a
copy of such notice and other information filed with the PBGC; (vi) gives
notice of withdrawal from any Plan pursuant to Section 4063 of ERISA, a
copy of such notice; or (vii) fails

	 	 	 
	49	 	
Third Amended and Restated Credit Agreement

 

 

		
	 	to make any payment or contribution to any Plan or Multiemployer Plan or
in respect of any Benefit Arrangement or makes any amendment to any Plan
or Benefit Arrangement which has resulted or could result in the
imposition of a Lien or the posting of a bond or other security, a
certificate of the chief financial officer of Borrower setting forth
details as to such occurrence and action, if any, which Borrower or
applicable member of the ERISA Group is required or proposes to take;

		
	 	     (f)     To the extent Borrower or any Subsidiary is aware of the same,
prompt notice of the commencement of any proceeding or investigation by or
before any Governmental Authority and any action or proceeding in any
court or other tribunal or before any arbitrator against or in any other
way relating adversely to, or adversely affecting, Borrower or any
Subsidiary or any of their respective properties, assets, or businesses
which, if determined or resolved adversely to such Person, could have a
Material Adverse Effect; and prompt notice of the receipt of notice that
any United States income Tax returns of Borrower or any of its
Subsidiaries are being audited;

		
	 	     (g)     To the extent not previously delivered to the Lenders, a copy of
the articles of incorporation, bylaws, partnership agreement, or other
similar organizational documents of Borrower, any Material Subsidiary, and
any amendment thereto, in each case within five Business Days of the
effectiveness thereof;

		
	 	     (h)     Prompt notice of any change in the business, assets, liabilities,
financial condition, results of operations, or business prospects of
Borrower or any Subsidiary which has had or may have a Material Adverse
Effect,

		
	 	     (i)     Prompt notice of the occurrence of any Default or Event of
Default or any event which constitutes or which with the passage of time,
the giving of notice, or otherwise, would constitute a default or event of
default by Borrower or any Subsidiary under any Material Contract to which
any such Person is a party or by which any such Person or any of its
respective properties may be bound;

		
	 	     (j)     Prompt notice of any order, judgment, or decree in excess of
$5,000,000 having been entered against Borrower or any Subsidiary or any
of their respective properties or assets;

		
	 	     (k)     Prompt notice, which notice shall, in the case of a Material
Subsidiary, be delivered no later than five days following the occurrence,
of the acquisition, incorporation, or other creation of any Subsidiary,
the purpose for such Subsidiary, the nature of the assets and liabilities
thereof, and whether such Subsidiary is a Material Subsidiary;

		
	 	     (l)      At the time the quarterly financial statements are furnished in
accordance with Section 8.1, a list of the Persons who are Material
Subsidiaries as of the date of the balance sheet included in such
quarterly financial statements;

		
	 	     (m)     Promptly upon entering into any Material Contract after the
Agreement Date, a copy to Administrative Agent of such Material Contract;

		
	 	     (n)     Promptly after Borrower has notified Administrative Agent of any
intention by Borrower to treat the Loans and/or LCs and related
transactions as being a “reportable transaction” (within the meaning of
Treasury Regulation Section 1.6011-4), a duly completed copy of IRS Form
8886 or any successor form; and

	 	 	 
	50	 	
Third Amended and Restated Credit Agreement

 

 

		
	 	     (o)     From time to time and promptly upon each request, such data,
certificates, reports, statements, opinions of counsel, documents, or
further information regarding the business, assets, liabilities, financial
condition, results of operations, or business prospects of Borrower or any
of its Material Subsidiaries as Administrative Agent or any Lender may
reasonably request.

SECTION 9.
     NEGATIVE COVENANTS.

     For so long as this Agreement is in effect and thereafter until the
payment in full of the Obligations and the termination or expiration of all
LCs, unless the Requisite Lenders (or, if required pursuant to Section 12.5,
all of the Lenders) shall otherwise consent in the manner set forth in Section
12.5, Borrower shall not, directly or indirectly:

       9.1
     Financial Covenants.
Permit:

		
	 	     (a)     Ratio
of Consolidated Debt to Consolidated Shareholders’ Equity.
The ratio of Consolidated Debt to Consolidated Shareholders’ Equity to
exceed 1.50 to 1.00 at the end of any fiscal quarter.

		
	 	     (b)     Minimum
Tangible Net Worth. Consolidated Shareholders’ Equity to
be less than (i) $1,200,000,000 plus (ii) 75% of the Net Proceeds of all
Equity Issuances effected by Borrower or any of its Consolidated
Subsidiaries at any time after December 31, 2002 (excluding the Net
Proceeds of any Equity Issuance by a Consolidated Subsidiary to a
Consolidated Subsidiary or to Borrower).

		
	 	     (c)     Ratio
of Adjusted EBIT to Interest Expense. The ratio of the
Adjusted EBIT to Interest Expense of Borrower and its Consolidated
Subsidiaries, determined on a consolidated basis as of the last day of
each fiscal quarter for the period of four successive fiscal quarters
ended on such day, to be less than 1.80 to 1.00 at the end of such fiscal
quarter.

		
	 	     (d)     Priority
Debt. The aggregate principal amount of Priority Debt
to exceed 25% of Consolidated Shareholders’ Equity.

		
	 	     (e)     Asset Coverage Ratio. The Asset Coverage Ratio to be less than 2
to 1.

       9.2      Interest Rate Agreements. Enter into, or permit any Consolidated
Subsidiary to enter into, any Interest Rate Agreement except in the ordinary
course of business with a nationally recognized financial institution then
having an Investment Grade Rating pursuant to bona fide hedging transactions
and not for speculation.

       9.3      Liens; Agreements Regarding Liens; Other Matters.

		
	 	     (a)     Create, assume, or incur, or permit or suffer to exist (or permit
any Consolidated Subsidiary to create, incur, assume, or permit or suffer
to exist) any Lien upon any of its assets, including, without limitation,
the equity interests of Borrower or any Subsidiary in their respective
Subsidiaries, other than:
	 
	 	               (i)     the Permitted Liens;
	 
	 	               (ii)    Liens securing the Obligations, if any; and

	 	 	 
	51	 	
Third Amended and Restated Credit Agreement

 

 

		
	 	     (iii)     Liens securing Debt or Interest Rate Agreements (including
Liens in existence on the Effective Date and securing the Debt
described on Schedule 6.1(g)), so long as, at the time of the
incurrence of such Debt and liabilities under Interest Rate
Agreements, the Debt and Priority Debt secured by all such Liens is
permitted within the limitations of Section 9.1.

		
	 	     (b)     Except for SBA consents that may be required for SBIC, create or
otherwise cause or suffer to exist or become effective, or permit any
Subsidiary to create or otherwise cause or suffer to exist or become
effective, any consensual encumbrance or restriction of any kind on the
ability of any Subsidiary to: (i) pay dividends or make any other
distribution on any of such Subsidiary’s capital stock or other equity
interests owned by Borrower or any other Subsidiary of Borrower; (ii) pay
any Debt owed to Borrower or any other Subsidiary; (iii) make loans or
advances to Borrower or any other Subsidiary; or (iv) transfer any of its
property or assets to Borrower or any other Subsidiary.

		
	 	     (c)     Create, incur, assume, or permit to exist, directly or
indirectly, or permit any Consolidated Subsidiary, directly or indirectly,
to create, incur, assume, or permit to exist (upon the happening of a
contingency or otherwise) any Lien (except Liens permitted by Section
9.3(a)) on or with respect to any property that secures Debt of Borrower
or its Consolidated Subsidiaries, including, without limitation, Debt
outstanding under the Senior Notes or the Senior Note Agreements, unless
Borrower makes, or causes to be made, effective provision whereby the
Obligations will be equally and ratably secured with any and all other
Debt of Borrower or its Consolidated Subsidiaries thereby secured;
provided that, such security is granted pursuant to an agreement
reasonably satisfactory to the Requisite Lenders.

       9.4      Distributions to Shareholders. If an Event of Default specified in
Section 10.1(a) or Section 10.1(b) occurs and is not cured within ten Business
Days thereafter, if a Default or an Event of Default specified in Section
10.1(f) or Section 10.1(g) shall have occurred and be continuing, or if as a
result of the occurrence of any other Event of Default the Obligations have
been accelerated pursuant to Section 10.2(a), make (a) any dividend or other
distribution on account of any of its capital stock; (b) any acquisition for
value of any capital stock of Borrower; or (c) any payment made to retire, or
to obtain the surrender of, any outstanding warrants, options, or other rights
to acquire any capital stock of Borrower.

       9.5      Merger, Consolidation and Sales of Assets.

		
	 	     (a)     (i) Enter into, or permit any Consolidated Subsidiary to enter
into, any transaction of merger or consolidation; (ii) liquidate, wind-up,
or dissolve itself (or suffer any liquidation or dissolution) or permit
any Consolidated Subsidiary to do any of the foregoing; (iii) convey,
sell, lease, sublease, transfer, or otherwise dispose of, in one
transaction or a series of transactions, all or any substantial part of
its business or assets, or the capital stock of or other equity interests
in any of its Consolidated Subsidiaries, in each case whether now owned or
hereafter acquired (a “Sale”) or permit any Consolidated Subsidiary to do
any of the foregoing; provided, however, that, so long as no Default or
Event of Default is or would be in existence at the time of such event or
immediately after giving effect thereto:

		
	 	     (A)     Any Consolidated Subsidiary may merge or consolidate
with or into, or effect a Sale to, Borrower or any Wholly Owned
Subsidiary, so long as (1) in any merger or consolidation
involving Borrower, Borrower shall be the surviving or
continuing corporation and (2) in any merger or consolidation

	 	 	 
	52	 	
Third Amended and Restated Credit Agreement

 

 

		
	 	involving a Wholly Owned Subsidiary (and not Borrower), a
Wholly Owned Subsidiary shall be the surviving or continuing
corporation;

		
	 	     (B)     In addition to the transactions permitted under clause
(E) below, Borrower may convey, sell, lease, sublease,
transfer, or otherwise dispose of, in one transaction or a
series of transactions, its business or assets, or the capital
stock of or other equity interests in any of its Consolidated
Subsidiaries, in each case whether now owned or hereafter
acquired, to any of its Consolidated Subsidiaries, so long as
(1) the Book Value of such assets sold (in one or a series of
transactions) in a given fiscal year does not exceed 15% of the
total assets of Borrower determined at the close of the
immediately preceding fiscal year, or (2) the operations of
such assets sold generated does not exceed 15% of the
consolidated operating profit of Borrower during the
immediately preceding fiscal year;
	 
	 	     (C)     A Consolidated Subsidiary may liquidate;
	 
	 	     (D)     Borrower or any Consolidated Subsidiary may merge or
consolidate with any other corporation; provided that, Borrower
or a Wholly Owned Subsidiary shall be the continuing or
surviving corporation and;
	 
	 	     (E)     Borrower or any Consolidated Subsidiary may effect a
Sale of Investments (other than Investments in a Consolidated
Subsidiary) or Foreclosure Property to third parties, to any
Special Purpose Subsidiary, or (solely with respect to
Foreclosure Property) to any Unrestricted Subsidiary in arm’s
length transactions on a non-recourse basis, so long as the
purchaser of such Investment or Foreclosure Property does not
and will not have a claim against or interest in any other
assets of Borrower or any Consolidated Subsidiary to support
the value of the assets so sold or to enhance the
creditworthiness of securities or Debt secured by or
evidencing an interest in such assets or in the holder thereof;
and
	 
	 	     (F)     Borrower or any Consolidated Subsidiary may effect a
Sale of capital stock or other equity interests in an
Unrestricted Subsidiary to third parties in arm’s length
transactions; or

		
	 	     (b)      Permit any Consolidated Subsidiary to issue any voting stock of
such Consolidated Subsidiary except to satisfy the rights of minority
shareholders to receive issuances of stock, which are non-dilutive to
Borrower and/or any Consolidated Subsidiary; provided that, the foregoing
restrictions do not apply to issuances of voting stock to Borrower or to a
Wholly Owned Subsidiary or the issuance of directors’ qualifying shares.

      As used in this Section, a sale of assets will be deemed a “substantial
part” of the assets of Borrower and its Consolidated Subsidiaries if (y) the
Book Value of such assets sold (in one or a series of transactions) in a given
fiscal year (except those assets transferred pursuant to clause (B), (E), or
(F) above sold in the ordinary course of business) exceeds 15% of the total
assets of Borrower and its Consolidated Subsidiaries determined at the close of
the immediately preceding fiscal year, or (z) the operations of such assets
sold (except those assets transferred pursuant to clause (B), (E), or (F) above
sold in the ordinary course of business) generated 15% or more of the
consolidated operating profit of Borrower and its Consolidated Subsidiaries
during the immediately preceding fiscal year.

	 	 	 
	53	 	
Third Amended and Restated Credit Agreement

 

 

     9.6      Fiscal Year. Change its fiscal year from that in effect as of the
Agreement Date.

     9.7      Modifications to Material Contracts. Enter into, or permit any
Subsidiary to enter into, any amendment or modification to any Material
Contract which could have a Material Adverse Effect or default in the
performance of any obligations of Borrower or any Subsidiary under any Material
Contract or permit any Material Contract to be canceled or terminated prior to
its stated maturity.

     9.8      Transactions with Affiliates. Permit to exist or enter into, and will
not permit any of its Subsidiaries to permit to exist or enter into, any
transaction (including the purchase, sale, lease, or exchange of any property
or the rendering of any service) with any Affiliate of Borrower or with any
director, officer, or employee of Borrower, any Subsidiary, or any other
Affiliate, except transactions involving consideration in an aggregate amount
for all such transactions not in excess of $5,000,000 per fiscal year, and
transactions in the ordinary course of, and pursuant to the reasonable
requirements of the, business of Borrower or any of its Subsidiaries and upon
fair and reasonable terms which are no less favorable to Borrower or such
Subsidiary than would be obtained in a comparable arm’s length transaction with
a Person that is not an Affiliate.

     9.9      Subsidiary Senior Note Guaranty. Permit any Consolidated Subsidiary
to guarantee (including, without limitation, any Subsidiary Senior Note
Guaranty) or assume or agree to become liable in any way, either directly or
indirectly, for any Debt of Borrower or any Consolidated Subsidiary (other than
(i) guaranties or assumptions of Debt of a Consolidated Subsidiary so long as
such Debt does not constitute Senior Debt and (ii) guaranties of the
Obligations), unless and until Borrower shall first furnish to Administrative
Agent (a) an unconditional Subsidiary Bank Guaranty, (b) an Intercreditor
Agreement, and (c) an opinion of counsel to the effect that such Subsidiary
Bank Guaranty has been duly authorized, executed, and delivered by such
Consolidated Subsidiary and constitutes the legal, valid, and binding
obligation of such Consolidated Subsidiary, enforceable against such
Consolidated Subsidiary in accordance with the terms thereof, and covering such
other matters as the Requisite Lenders may reasonably request.

     9.10      Employee Benefit Plans. Engage in any “prohibited transaction” (as
defined in Section 406 of ERISA or Section 4975 of the Internal Revenue Code).

     9.11      Payment of Obligation. Borrower shall pay the Obligations in
accordance with the terms and provisions of the Loan Documents. Borrower and
its Consolidated Subsidiaries shall not (a) if an Event of Default shall have
occurred and be continuing, make any voluntary prepayment of principal of, or
interest on, any other Debt (other than the Obligations), whether subordinate
to the Obligations or not or (b) use proceeds from the Loans to make any
payment or prepayment of principal of, or interest on, or sinking fund payment
in respect of any other Debt of Borrower or any of its Subsidiaries.

SECTION 10.      DEFAULT.

     10.1      Events of Default. Each of the following shall constitute an Event
of Default, whatever the reason for such event and whether it shall be
voluntary or involuntary or be effected by operation of Applicable Law or
pursuant to any judgment or order of any Governmental Authority:

		
	 	     (a)     Default in Payment of Principal. Borrower shall fail to pay when
due (whether upon demand, at maturity, by reason of acceleration, or
otherwise) the principal of any of the Loans.

	 	 	 
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Third Amended and Restated Credit Agreement

 

 

		
	 	     (b)     Default in Payment of Other Amounts. Borrower shall fail to pay
when due any interest on any of the Loans or any of the other payment
Obligations (other than the principal of any Loan) owing by Borrower under
this Agreement or any other Loan Document and such failure shall continue
for a period of three Business Days after the earlier of (i) the date upon
which Borrower obtains knowledge of such failure or (ii) the date upon
which Borrower has received written notice of such failure from
Administrative Agent.

		
	 	     (c)     Default in Performance. (i) Borrower shall fail (or, where
applicable, shall fail to cause any Subsidiary) to perform or observe any
term, covenant, condition or agreement on its part to be performed or
observed contained in Sections 7.11, 7.12, 8.4(i), or in Section 9 or (ii)
Borrower shall fail (or, where applicable, shall fail to cause any
Subsidiary) to perform or observe any term, covenant, condition, or
agreement contained in this Agreement or any other Loan Document to which
it is a party and not otherwise mentioned in this Section and in the case
of this clause (ii) such failure shall continue for a period of 30 days
after the earlier of (x) the date upon which Borrower obtains knowledge of
such failure or (y) the date upon which Borrower has received written
notice of such failure from Administrative Agent.

		
	 	     (d)     Misrepresentations. Any written statement, representation, or
warranty made or deemed made by or on behalf of Borrower or any Subsidiary
under this Agreement or under any other Loan Document, or any amendment
hereto or thereto, or in any other writing or statement at any time
furnished or made or deemed made by or on behalf of Borrower or any
Subsidiary to Administrative Agent or any Lender in connection with this
Agreement or the other Loan Documents, shall at any time prove to have
been incorrect or misleading in any material respect when furnished or
made.
	 
	 	     (e)     Cross-Default.

		
	 	     (i)     Borrower or any Consolidated Subsidiary shall fail to pay
when due and payable the principal of, or interest on, any Debt
(other than the Loans) or any Contingent Obligations having an
aggregate outstanding principal amount of $5,000,000 or more; or

		
	 	     (ii)     the maturity of any Debt (other than the Loans) of Borrower
or any Consolidated Subsidiary having an aggregate outstanding
principal amount of $5,000,000 or more shall have (x) been
accelerated in accordance with the provisions of any indenture,
contract, or instrument evidencing, providing for the creation of, or
otherwise concerning such Debt or (y) been required to be prepaid
prior to the stated maturity thereof; or

		
	 	     (iii)     any other event shall have occurred and be continuing with
respect to any Debt (other than the Loans) of Borrower or any
Consolidated Subsidiary having an aggregate outstanding principal
amount of $5,000,000 or more which, with or without the passage of
time, the giving of notice, or otherwise, would permit any holder or
holders of such Debt, any trustee or agent acting on behalf of such
holder or holders, or any other Person to accelerate the maturity of
any such Debt or require any such Debt to be prepaid prior to its
stated maturity; or

		
	 	     (iv)     the occurrence under any Interest Rate Agreement of a
termination date prior to the stated or contracted termination date
as a result of defaults by Borrower or any Consolidated Subsidiary
and the liability of Borrower or any Consolidated

	 	 	 
	55	 	
Third Amended and Restated Credit Agreement

 

 

		
	 	Subsidiary as a result thereof (determined consistently with the
definition of Interest Rate Agreement), individually or in the
aggregate, is greater than $5,000,000.

		
	 	     (f)     Voluntary Bankruptcy Proceeding. Borrower, any Consolidated
Subsidiary, or any Other Relevant Subsidiary shall: (i) commence a
voluntary case under the Bankruptcy Code of 1978, as amended or other
federal bankruptcy laws (as now or hereafter in effect); (ii) file a
petition seeking to take advantage of any other Applicable Laws, domestic
or foreign, relating to bankruptcy, insolvency, reorganization,
winding-up, or composition or adjustment of debts; (iii) consent to, or
fail to contest in a timely and appropriate manner, any petition filed
against it in an involuntary case under such bankruptcy laws or other
Applicable Laws or consent to any proceeding or action described in the
immediately following subsection; (iv) apply for or consent to, or fail to
contest in a timely and appropriate manner, the appointment of, or the
taking of possession by, a receiver, custodian, trustee, or liquidator of
itself or of a substantial part of its property, domestic or foreign; (v)
admit in writing its inability to pay its debts as they become due; (vi)
make a general assignment for the benefit of creditors; (vii) make a
conveyance fraudulent as to creditors under any Applicable Law; or (viii)
take any corporate or similar action for the purpose of effecting any of
the foregoing.

		
	 	     (g)     Involuntary Bankruptcy Proceeding. A case or other proceeding
shall be commenced against Borrower, any Consolidated Subsidiary, or any
Other Relevant Subsidiary, in any court of competent jurisdiction seeking:
(i) relief under the Bankruptcy Code of 1978, as amended or other federal
bankruptcy laws (as now or hereafter in effect) or under any other
Applicable Laws, domestic or foreign, relating to bankruptcy, insolvency,
reorganization, winding-up, or composition or adjustment of debts; or (ii)
the appointment of a trustee, receiver custodian, liquidator or the like
of such Person, or of all or any substantial part of the assets domestic
or foreign, of such Person, and such case or proceeding is not dismissed
within 60 days after it is commenced.

		
	 	     (h)     Contest of Loan Documents. Borrower or any Subsidiary shall
disavow, revoke, or terminate any Loan Document to which it is a party or
shall otherwise challenge or contest in any action, suit, or proceeding in
any court or before any Governmental Authority the validity or
enforceability of this Agreement, any Note, or any other Loan Document.

		
	 	     (i)     Judgment. A judgment or order for the payment of money shall be
entered against Borrower or any Consolidated Subsidiary by any court or
other tribunal which exceeds, individually or together with all other such
judgments or orders entered against Borrower and its Consolidated
Subsidiaries, $5,000,000 in amount (or which shall otherwise have a
Material Adverse Effect) and such judgment or order shall continue unpaid
for a period of 30 days without being stayed or dismissed through
appropriate appellate proceedings.

		
	 	     (j)     Attachment. A warrant, writ of attachment, execution, or similar
process shall be issued against any property of Borrower or any
Consolidated Subsidiary which exceeds, individually or together with all
other such warrants, writs, executions, and processes, $5,000,000 in
amount and such warrant, writ, execution, or process shall not be
discharged, vacated, stayed, or bonded for a period of 30 days; provided,
however, that if a bond has been issued in favor of the claimant or other
Person obtaining such warrant, writ, execution, or process, the issuer of
such bond shall execute a waiver or subordination agreement in form and
substance satisfactory to Administrative Agent pursuant to which the
issuer of such bond subordinates its right of reimbursement, contribution,
or subrogation to the Obligations and waives or subordinates any Lien it
may have on the assets of Borrower or any of its Consolidated
Subsidiaries.

	 	 	 
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Third Amended and Restated Credit Agreement

 

 

		
	 	      (k)     ERISA. Any member of the ERISA Group shall fail to pay when due
an amount or amounts aggregating in excess of $10,000,000 which it shall
have become liable to pay under Title IV of ERISA; or notice of intent to
terminate a Material Plan shall be filed under Title IV of ERISA by any
member of the ERISA Group, any plan administrator or any combination of
the foregoing; or the PBGC shall institute proceedings under Title IV of
ERISA to terminate, to impose liability (other than for premiums under
Section 4007 of ERISA) in respect of, or to cause a trustee to be
appointed to administer any Material Plan; or a condition shall exist by
reason of which the PBGC would be entitled to obtain a decree adjudicating
that any Material Plan must be terminated; or there shall occur a complete
or partial withdrawal from, or a default, within the meaning of Section
4219(c)(5) of ERISA, with respect to, one or more Multiemployer Plans
which could cause one or more members of the ERISA Group to incur a
current payment obligation in excess of $10,000,000.

		
	 	      (l)     Loan Documents. An Event of Default (as defined therein) shall
occur under any of the other Loan Documents.
	 
	 	      (m)   Change of Control.

		
	 	     (i)     Any “person” or “group” (as such terms are used in Sections
13(d) and 14(d) of the Securities Exchange Act of 1934, as amended
(the “Exchange Act”)) is or becomes the “beneficial owner” (as
defined in Rules 13d-3 and 13d-5 under the Exchange Act, except that
a Person will be deemed to have “beneficial ownership” of all
securities that such Person has the right to acquire, whether such
right is exercisable immediately or only after the passage of time),
directly or indirectly, of more than 25% of the total voting power of
the then outstanding voting stock of Borrower; or

		
	 	     (ii)     During any twelve-month period (commencing on or after the
Agreement Date), a majority of the Board of Directors of Borrower
shall no longer be composed of individuals (A) who were members of
such Board of Directors on the first date of such period, (B) whose
election or nomination to such Board of Directors was approved by
individuals referred to in clause (A) above constituting at the time
of such election or nomination at least a majority of such Board of
Directors, or (C) whose election or nomination to such Board of
Directors was approved by individuals referred to in clauses (A) and
(B) above constituting at the time of such election or nomination at
least a majority of such Board of Directors.

		
	 	      (n)     Dissolution. Any order, judgment, or decree is entered against
Borrower, any Material Subsidiary, or any Other Relevant Subsidiary
decreeing the dissolution or split up of such Person, and such order
remains undischarged or unstayed for a period in excess of 30 days.

		
	 	      (o)     Payment of Certain Other Agreements. The payment directly or
indirectly (including, without limitation, any payment in respect of any
sinking fund, defeasance, or redemption) by Borrower or any of its
Consolidated Subsidiaries of any Debt, including without limitation, the
Senior Notes, in a manner or at a time during which such payment is not
permitted under the terms of the Loan Documents, or under any instrument
or document evidencing or creating such Debt.

		
	 	      (p)     LCs. LC Issuer shall have been served with, or becomes otherwise
subject to, a court order, injunction, or other process or decree
restraining or seeking to restrain it from paying any drafts under any LC
and either (i) there has been a draft under such LC which LC Issuer would
otherwise be obligated to pay and Borrower has refused to reimburse LC
Issuer for such

	 	 	 
	57	 	
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	 	payment or (ii) the expiration date of such LC has occurred but the right
of any beneficiary thereunder to draw under such LC has been extended past
the expiration date in connection with the pendency of the related court
action or proceeding and Borrower has failed to deposit with
Administrative Agent cash collateral in an amount equal to the maximum
drawing which could be made under such LC.

       10.2 Remedies Upon Event of Default. Upon the occurrence of an Event of
Default the following provisions shall apply:

		
	 	     (a)     Acceleration;
Termination of Facilities.

		
	 	     (i)     Automatic. Upon the occurrence of an Event of Default
specified in Sections 10.1(f) or 10.1(g), (A) the entire unpaid
balance of the Obligations of Borrower under the Loan Documents shall
become immediately and automatically due and payable by Borrower
without presentment, demand, protest, or other notice of any kind,
all of which are expressly waived by Borrower and Borrower shall be
required to provide cash collateral in an amount equal to 100% of the
LC Exposure then existing in accordance with Section 2.3(h) and (B)
each of the Commitments (including the Swing Line Commitment and LC
Commitment) and the obligation of Lenders to make Loans and the
obligation of LC Issuer to issue LCs shall immediately and
automatically terminate;

		
	 	     (ii)     Optional. If any other Event of Default shall have
occurred and be continuing, Administrative Agent may, and at the
direction of the Requisite Lenders shall (subject to the terms of
Section 11): (A) declare the entire unpaid balance of the
Obligations under the Loan Documents, or any part thereof,
immediately due and payable; whereupon the same shall immediately
become due and payable without presentment, demand, protest, or other
notice of any kind, all of which are expressly waived by Borrower,
(B) demand Borrower to provide cash collateral in an amount equal to
100% of the LC Exposure then existing in accordance with Section
2.3(h), and (C) terminate the Commitments (including the Swing Line
Commitment and the LC Commitment) and the obligation of Lenders to
make Loans hereunder and the obligation of LC Issuer to issue LCs
hereunder.

		
	 	     (b)     Loan Documents. The Requisite Lenders may direct Administrative
Agent to, and Administrative Agent if so directed shall (subject to the
terms of Section 11), exercise any and all of its rights under any and all
of the other Loan Documents.

		
	 	     (c)     Applicable Law. The Requisite Lenders may direct Administrative
Agent to, and Administrative Agent if so directed shall, exercise all
other rights and remedies it may have under any Applicable Law, including
without limitation, (i) reduce any claim to judgment; (ii) to the extent
permitted by Applicable Law, exercise (or request each Lender to, and each
Lender shall be entitled to, exercise) the rights of offset or banker’s
Lien against the interest of Borrower and each Consolidated Subsidiary in
and to every account (other than special accounts, trust accounts, or
escrow accounts maintained by Borrower in a fiduciary capacity or as an
agent for unrelated third parties) and other property of Borrower and each
Consolidated Subsidiary which are in the possession of Administrative
Agent or any Lender to the extent of the full amount of the Obligations
(to the extent permitted by Applicable Law, Borrower and each Consolidated
Subsidiary being deemed directly obligated to each Lender in the full
amount of the Obligations for such purposes); and (iii) exercise any and
all other legal or equitable rights afforded by the Loan Documents, the
Applicable Laws of the State of Texas, or any other applicable
jurisdiction as Administrative Agent shall deem appropriate, or otherwise,
including, but not limited to, the

	 	 	 
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	 	right to bring suit or other proceedings before any Governmental Authority
either for specific performance of any covenant or condition contained in
any of the Loan Documents or in aid of the exercise of any right granted
to Administrative Agent or any Lender in any of the Loan Documents.

     10.3
     Remedies Upon Certain Defaults. Upon the occurrence of a Default
specified in Sections 10.1(f) or 10.1(g), the Commitments (including the Swing
Line Commitment and the LC Commitment) shall immediately and automatically
terminate.

     10.4
     Allocation of Proceeds. If a Default or Event of Default shall have
occurred and be continuing, all payments received by Administrative Agent, LC
Issuer, Swing Line Lender, or any Lender under any of the Loan Documents, in
respect of any principal of or interest on the Obligations or any other amounts
payable by Borrower hereunder or thereunder (including proceeds from the
exercise of any rights), shall be applied by Administrative Agent in the
following order and priority:

		
	 	     (a)     Amounts due to Administrative Agent, LC Issuer, and the Lenders
in respect of Fees and expenses due under Section 12.2;

		
	 	     (b)     Payments of interest on the Revolving Loans and the Swing Line
Loans to be applied for the ratable benefit of Lenders, Swing Line Lender,
and any participating Lenders under the Swing Line Subfacility pursuant to
Section 2.2(c);

		
	 	     (c)     Payment of all unpaid reimbursement obligations with respect to
any LCs issued pursuant to the Agreement which are due and payable and
which remain unfunded by any Loan, provided that, such payments shall be
allocated ratably among LC Issuer and the Lenders which have funded their
participations in such LC;

		
	 	     (d)     Payments of outstanding Swing Principal Debt; provided that, such
payments shall be made solely to Swing Line Lender, unless the Lenders
have funded participations in the Swing Principal Debt in accordance with
Section 2.2(c), in which case such payment shall be allocated pro rata
among Swing Line Lender and the participating Lenders;

		
	 	     (e)     Payments of principal outstanding under the Revolving Loans, to
be applied for the ratable benefit of the Lenders;

		
	 	     (f)     As a deposit with Administrative Agent (for the benefit of LC
Issuer and the Lenders which have purchased participations in any
outstanding LC), as security for, and to provide for the payment of, any
reimbursement obligations, if any, thereafter arising with respect to any
issued and outstanding LCs issued pursuant to the Agreement;

		
	 	     (g)     Amounts due to Administrative Agent and the Lenders pursuant to
Section 12.8;

		
	 	     (h)     Payments of all other amounts due under any of the Loan
Documents, if any, to be applied for the ratable benefit of the Lenders;
and

		
	 	     (i)     Any amount remaining after application as provided above, shall
be paid to Borrower or whomever else may be legally entitled thereto.

     10.5     Performance
by Administrative Agent. If Borrower shall fail to
perform any covenant, duty, or agreement contained in any of the Loan
Documents, Administrative Agent may perform or attempt to perform such
covenant, duty, or agreement on behalf of Borrower after the expiration of any

	 	 	 
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cure or grace periods set forth herein. In such event, Borrower shall, at the
request of Administrative Agent, promptly pay any amount reasonably expended by
Administrative Agent in such performance or attempted performance to
Administrative Agent, together with interest thereon at the applicable
Post-Default Rate from the date of such expenditure until paid.
Notwithstanding the foregoing, neither Administrative Agent nor any Lender
shall have any liability or responsibility whatsoever for the performance of
any obligation of Borrower under this Agreement or any other Loan Document.

     10.6      Rights Cumulative. The rights and remedies of Administrative Agent
and the Lenders under this Agreement and each of the other Loan Documents shall
be cumulative and not exclusive of any rights or remedies which any of them may
otherwise have under Applicable Law.

     10.7      Company Waivers. To the extent permitted by Applicable Law, Borrower
and each Subsidiary Bank Guarantor, if any, hereby waive presentment and demand
for payment, protest, notice of intention to accelerate, notice of
acceleration, and notice of protest and nonpayment, and agree that their
respective liability with respect to the Obligations (or any part thereof)
shall not be affected by any renewal or extension in the time of payment of the
Obligations (or any part thereof), by any indulgence, or by any release or
change in any security for the payment of the Obligations (or any part
thereof).

     10.8      Delegation of Duties and Rights. The Lenders and Administrative
Agent may perform any of their duties or exercise any of their rights under the
Loan Documents by or through their respective representatives.

     10.9     Not in Control. Nothing in any Loan Document shall, or shall be
deemed to (a) give Administrative Agent or any Lender the right to exercise
control over the assets (including real property), affairs, or management of
Borrower or any Subsidiary, (b) preclude or interfere with compliance by
Borrower or any Subsidiary with any Applicable Law, or (c) require any act or
omission by Borrower or any Subsidiary that may be harmful to Persons or
property. Any “Material Adverse Effect” or other materiality qualifier in any
representation, warranty, covenant, or other provision of any Loan Document is
included for credit documentation purposes only and shall not, and shall not be
deemed to, mean that Administrative Agent or any Lender acquiesces in any
non-compliance by Borrower or any Subsidiary with any Applicable Law or
document, or that Administrative Agent or any Lender does not expect Borrower
or any Subsidiary to promptly, diligently, and continuously carry out all
appropriate removal, remediation, and termination activities required or
appropriate in accordance with all Environmental Laws. Administrative Agent
and the Lenders have no fiduciary relationship with or fiduciary duty to
Borrower or any Subsidiary arising out of or in connection with the Loan
Documents, and the relationship between Administrative Agent and the Lenders,
on the one hand, and Borrower and its Subsidiaries, on the other hand, in
connection with the Loan Documents is solely that of debtor and creditor. The
power of Administrative Agent and the Lenders under the Loan Documents is
limited to the rights provided in the Loan Documents, which rights exist solely
to assure payment and performance of the Obligations and may be exercised in a
manner calculated by Administrative Agent and Lenders in their respective good
faith business judgment.

     10.10    Course of Dealing. The acceptance by Administrative Agent or the
Lenders at any time and from time to time of partial payment on the Obligations
shall not be deemed to be a waiver of any Default then existing. No waiver by
Administrative Agent, Requisite Lenders, or the Lenders of any Default shall be
deemed to be a waiver of any other then-existing or subsequent Default. No
delay or omission by Administrative Agent, Requisite Lenders, or the Lenders in
exercising any right under the Loan Documents shall impair such right or be
construed as a waiver thereof or any acquiescence therein, nor shall any single
or partial exercise of any such right preclude other or further exercise
thereof, or the exercise of any other right under the Loan Documents or
otherwise.

	 	 	 
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     10.11      Cumulative Rights. All rights available to Administrative Agent and
the Lenders under the Loan Documents are cumulative of and in addition to all
other rights granted to Administrative Agent and the Lenders at law or in
equity, whether or not the Obligations are due and payable and whether or not
Administrative Agent or the Lenders have instituted any suit for collection,
foreclosure, or other action in connection with the Loan Documents.

SECTION
11.     AGREEMENT AMONG LENDERS.

     11.1      Appointment, Powers, and Immunities. Each Lender (including any
Lender in its capacity as LC Issuer or Swing Line Lender) hereby irrevocably
appoints, designates, and authorizes Administrative Agent to take such action
on its behalf under the provisions of this Agreement and the other Loan
Documents and to exercise such powers and perform such duties as are expressly
delegated to it by the terms of this Agreement and the other Loan Documents,
together with such other powers as are reasonably incidental thereto. No
Agent-Related Person shall (a) have any duties or responsibilities except those
expressly set forth in this Agreement nor be a trustee or fiduciary for any
Lender; (b) be responsible to the Lenders for any recital, statement,
representation, or warranty (whether written or oral) made in or in connection
with any Loan Document or any certificate or other document referred to or
provided for in, or received by any of them under, any Loan Document, or for
the value, validity, effectiveness, genuineness, enforceability, or sufficiency
of any Loan Document, or any other document referred to or provided for therein
or for any failure by any party hereto or any other Person to perform any of
its obligations thereunder; (c) be responsible for or have any duty to
ascertain, inquire into, or verify the performance or observance of any
covenants or agreements by the parties hereto or the satisfaction of any
condition or to inspect the property (including the books and records) of
Borrower or its Subsidiaries or Affiliates; (d) be required to initiate or
conduct any litigation or collection proceedings under any Loan Document; and
(e) be responsible for any action taken or omitted to be taken by it under or
in connection with any Loan Document, except for its own gross negligence or
willful misconduct. Without limiting the generality of the foregoing sentence,
the use of the term “agent” herein and in the other Loan Documents with
reference to Administrative Agent is not intended to connote any fiduciary or
other implied (or express) obligations arising under agency doctrine of any
Applicable Law. Instead, such term is used merely as a matter of market
custom, and is intended to create or reflect only an administrative
relationship between independent contracting parties.

     11.2      Delegation of Duties. Administrative Agent may execute any of its
duties under this Agreement or any other Loan Document by or through agents,
employees or attorneys-in-fact and shall be entitled to advice of counsel and
other consultants or experts concerning all matters pertaining to such duties.
Administrative Agent shall not be responsible for the negligence or misconduct
of any agent or attorney-in-fact that it selects in the absence of gross
negligence or willful misconduct.

     11.3      Reliance by Administrative Agent. Administrative Agent and LC Issuer
shall be entitled to rely, and shall be fully protected in relying, upon any
writing, communication, signature, resolution, representation, notice, consent,
certificate, affidavit, letter, telegram, facsimile, telex or telephone
message, electronic mail message, statement, or other document or conversation
believed by it to be genuine and correct and to have been signed, sent, or made
by or on behalf of the proper Person or Persons, and upon advice and statements
of legal counsel (including counsel for the parties hereto), independent
accountants, and other experts selected by Administrative Agent and LC Issuer.
Administrative Agent may deem and treat each Lender as the owner and holder of
the Principal Debt owed to such Lender for all purposes hereof unless and until
Administrative Agent receives and accepts an Assignment and Acceptance
Agreement executed in accordance with Section 12.4. As to any matters not
expressly provided for by this Agreement, Administrative Agent shall not be
required to exercise any discretion or take any action, but shall be required
to act or to refrain from acting (and shall be fully

	 	 	 
	61	 	
Third Amended and Restated Credit Agreement

 

 

protected in so acting or refraining from acting) upon the instructions of the
Requisite Lenders, and such instructions shall be binding on all of the
Lenders; provided, however, that Administrative Agent shall not be required to
take any action that exposes Administrative Agent to personal liability or that
is contrary to any Loan Document or Applicable Law or unless it shall first be
indemnified to its satisfaction by the Lenders against any and all liability
and expense which may be incurred by it by reason of taking any such action.
For purposes of determining compliance with Section 5.1, each Lender that has
signed this Agreement shall be deemed to have consented to, approved or
accepted, or to be satisfied with, each document or other matter required
thereunder to be consented to or approved by or acceptable or satisfactory to a
Lender unless Administrative Agent shall have received notice from such Lender
prior to the proposed Effective Date specifying its objection thereto.

     11.4      Defaults. Administrative Agent shall not be deemed to have knowledge
or notice of the occurrence of a Default or Event of Default unless
Administrative Agent has received written notice from a Lender or Borrower
specifying such Default or Event of Default and stating that such notice is a
“Notice of Default”. In the event that Administrative Agent receives such a
notice of the occurrence of a Default or Event of Default, Administrative Agent
shall give prompt notice thereof to the Lenders. Administrative Agent shall
(subject to Section 11.3 hereof) take such action with respect to such Default
or Event of Default as shall reasonably be directed by the Requisite Lenders;
provided that, unless and until Administrative Agent shall have received such
directions, Administrative Agent may (but shall not be obligated to) take such
action, or refrain from taking such action, with respect to such Default or
Event of Default as it shall deem advisable in the best interest of the
Lenders.

     11.5.      Rights as Lender. With respect to its Commitment and the Loans made
by it, Bank of America (and any successor acting as Administrative Agent), in
its capacity as a Lender hereunder shall have the same rights and powers
hereunder as any other Lender and may exercise the same as though it were not
acting as Administrative Agent, and the term “Lender” or “Lenders” shall,
unless the context otherwise indicates, include Administrative Agent in its
individual capacity. Bank of America (and any successor acting as
Administrative Agent) and its Affiliates may (without having to account
therefor to any Lender) accept deposits from, lend money to, make investments
in, provide services to, and generally engage in any kind of lending, trust,
financial advisory, underwriting, or other business with any party hereto or
any of its Subsidiaries or Affiliates as if it were not acting as
Administrative Agent (collectively, “other activities”), and Bank of America
(and any successor acting as Administrative Agent) and its Affiliates may
accept fees and other consideration from any party hereto or any of its
Subsidiaries or Affiliates for services in connection with this Agreement or
otherwise without having to account for the same to the Lenders. Without
limiting the rights of the Lenders specifically set forth in the Loan
Documents, Administrative Agent and its Affiliates shall not be responsible to
account to Lenders for such other activities, and no Lender shall have any
interest in any other activities, any present or future guaranties by or for
the account of Borrower which are not contemplated or included in the Loan
Documents, any present or future offset exercised by Administrative Agent and
its Affiliates in respect of such other activities, any present or future
property taken as security for any such other activities, or any property now
or hereafter in the possession or control of Administrative Agent or its
Affiliates which may be or become security for the obligations of Borrower
arising under the Loan Documents by reason of the general description of
indebtedness secured or of property contained in any other agreements,
documents or instruments related to any such other activities; provided that,
if any payments in respect of such guaranties or such property or the proceeds
thereof shall be applied to reduction of the obligations of Borrower arising
under the Loan Documents, then each Lender shall be entitled to share in such
application ratably.

     11.6      LC Issuer. LC Issuer shall act on behalf of Lenders with respect to
any LC issued by it and the documents associated therewith until such time (and
except for so long) as Administrative Agent may agree at the request of
Required Lenders to act for LC Issuer with respect thereto; provided,

	 	 	 
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however, that LC Issuer shall have all of the benefits and immunities (a)
provided to Administrative Agent in this Section 11 with respect to any acts
taken or omissions suffered by LC Issuer in connection with LCs issued by it or
proposed to be issued by it and LC Agreements as fully as if the term
“Administrative Agent” as used in this Section 11 and in the definition of
“Agent-Related Person” included LC Issuer with respect to such acts or
omissions, and (b) as additionally provided herein with respect to LC Issuer.

     11.7      Indemnification. Whether or not the transactions contemplated hereby
are consummated, the Lenders shall indemnify upon demand each Agent-Related
Person (to the extent not reimbursed by or on behalf of Borrower and without
limiting the obligation of Borrower to do so), pro rata in accordance with
their respective Commitments on any date of determination, or if the
Commitments have been terminated, pro rata in accordance with the Principal
Debt owed to such Lender on any date of determination, and hold harmless each
Agent-Related Person from and against any and all Indemnified Liabilities
incurred by it; provided, however, that no Lender shall be liable for the
payment to any Agent-Related Person of any portion of such Indemnified
Liabilities to the extent determined in a final, nonappealable judgment by a
court of competent jurisdiction to have resulted from such Agent-Related
Person’s own gross negligence or willful misconduct; provided, however, that no
action taken in accordance with the directions of the Requisite Lenders shall
be deemed to constitute gross negligence or willful misconduct for purposes of
this Section. Without limitation of the foregoing, each Lender agrees to
reimburse Administrative Agent promptly upon demand for its ratable share of
any costs or expenses payable by Borrower under Section 12.2 to the extent that
Administrative Agent is not promptly reimbursed for such costs and expenses by
or on behalf of Borrower. The agreements contained in this Section shall
survive payment in full of the Obligations, termination or expiration of all
LCs, and the resignation of Administrative Agent.

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

	 	11.9      Resignation of Administrative Agent. Administrative Agent may resign
at any time by giving 30 days’ notice thereof to the Lenders and Borrower;
provided that any such resignation

	 	 	 
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Third Amended and Restated Credit Agreement

 

 

	 	by Bank of America shall also constitute its resignation as LC Issuer and
Swing Line Lender. Upon any such resignation, the Requisite Lenders shall
appoint from among the Lenders a successor administrative agent for the
Lenders, subject, so long as no Default or Event of Default has occurred
and is continuing, to the approval by Borrower of the successor
administrative agent, which approval shall not be unreasonably withheld,
conditioned, or delayed, and any request for approval shall be deemed
granted on the fifth Business Day after Borrower’s receipt of such request
for approval if Borrower has not responded. If no successor
administrative agent is appointed prior to the effective date of the
resignation of the Administrative Agent, the retiring Administrative Agent
may, after consulting with the Lenders and Borrower, appoint a successor
administrative agent from among the Lenders. Upon the acceptance of its
appointment as successor administrative agent hereunder, the Person acting
as such successor administrative agent shall succeed to and become vested
with all the rights, powers, discretion, privileges, and duties of the
retiring Administrative Agent, LC Issuer, and Swing Line Lender and the
respective terms “Administrative Agent,” “LC Issuer,” and “Swing Line
Lender” shall mean such successor administrative agent, letter of credit
issuer, and swing line lender, and the retiring Administrative Agent’s
appointment, powers, and duties as Administrative Agent shall be
terminated and the retiring LC Issuer’s and Swing Line Lender’s rights,
powers, and duties as such shall be terminated, without any other further
act or deed on the part of such retiring LC Issuer or Swing Line Lender or
any other Lender, other than the obligation of the successor LC Issuer to
issue letters of credit in substitution for the LCs, if any, outstanding
at the time of such succession or to make other arrangements satisfactory
to the retiring LC Issuer to effectively assume the obligations of the
retiring LC Issuer with respect to such LCs. If no successor
administrative agent has accepted appointment as Administrative Agent by
the date which is 30 days following a retiring Administrative Agent’s
notice of resignation, the retiring Administrative Agent’s resignation
shall nevertheless thereupon become effective and the retiring
Administrative Agent’s appointment, powers, and duties as Administrative
Agent shall be terminated and the retiring LC Issuer’s and Swing Line
Lender’s rights, powers, and duties as such shall be terminated, without
any other further act or deed on the part of such retiring LC Issuer or
Swing Line Lender or any other Lender and the Lenders shall perform all of
the duties of Administrative Agent hereunder until such time, if any, as
the Requisite Lenders appoint a successor administrative agent as provided
for above. After any retiring Administrative Agent’s resignation
hereunder as Administrative Agent, the provisions of this Section 11 and
Sections 12.2 and 12.8 shall continue in effect for its benefit in respect
of any actions taken or omitted to be taken by it while it was
Administrative Agent under this Agreement. Notwithstanding the foregoing,
unless and until substitute LCs, if any, have been issued or satisfactory
arrangements for assumption have been entered into, the retiring LC Issuer
shall retain all the rights and obligations of LC Issuer hereunder with
respect to all LCs outstanding as of the effective date of its resignation
as LC Issuer and all LC Exposure with respect thereto, including the right
to require Lenders to fund participations pursuant to Section 2.3.
Notwithstanding the foregoing, the retiring Swing Line Lender shall retain
all the rights of Swing Line Lender provided for hereunder with respect to
Swing Line Loans made by it and outstanding as of the effective date of
its resignation as Swing Line Lender, including the right to require
Lenders to fund participations in outstanding Swing Line Loans pursuant to
Section 2.2(c).

     11.10     Administrative Agent May File Proofs of Claim. In case of the
pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition, or other judicial
proceeding relative to Borrower, Administrative Agent (irrespective of whether
the principal of any Loan or any unpaid reimbursement obligations with respect
to LCs shall then be due and payable as herein expressed or by declaration or
otherwise and irrespective of whether Administrative Agent shall have made any
demand on Borrower) shall be entitled and empowered, by intervention in such
proceeding or otherwise

	 	 	 
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	 	     (a) to file and prove a claim for the whole amount of the principal
and interest owing and unpaid in respect of Loans, unpaid reimbursement
obligations with respect to LCs, and all other Obligations that are owing
and unpaid and to file such other documents as may be necessary or
advisable in order to have the claims of the Lenders and Administrative
Agent (including any claim for the reasonable compensation, expenses,
disbursements, and advances of the Lenders and Administrative Agent and
their respective agents and counsel and all other amounts owing to the
Lenders and Administrative Agent under Sections 3.8 and 12.2) allowed in
such judicial proceeding; and
	 
	 	     (b) to collect and receive any monies or other property payable or
deliverable on any such claims and to distribute the same;

and any custodian, receiver, assignee, trustee, liquidator, sequestrator, or
other similar official in any such judicial proceeding is hereby authorized by
each Lender to make such payments to Administrative Agent and, in the event
that Administrative Agent shall consent to the making of such payments directly
to the Lenders, to pay to Administrative Agent any amount due for the
reasonable compensation, expenses, disbursements, and advances of
Administrative Agent and its agents and counsel, and any other amounts owing to
Administrative Agent under Sections 3.8 and 12.2. Nothing contained herein
shall be deemed to authorize Administrative Agent to authorize or consent to or
accept or adopt on behalf of any Lender any plan of reorganization,
arrangement, adjustment, or composition affecting the Obligations or the rights
of any Lender or to authorize Administrative Agent to vote in respect of the
claim of any Lender in any such proceeding.

       11.11      Relationship of Lenders. Nothing herein shall be construed as
creating a partnership or joint venture among Administrative Agent and the
Lenders.

       11.12      Benefits of Agreement. None of the provisions of this Section 11
shall inure to the benefit of Borrower or any Subsidiary of Borrower or any
other Person other than the Lenders; consequently, neither Borrower nor any
Subsidiary of Borrower or any other Person shall be entitled to rely upon, or
to raise as a defense, in any manner whatsoever, the failure of Administrative
Agent or any Lender to comply with such provisions.

       11.13     Agents. None of the Lenders identified in this Agreement as “
Syndication Agent,” “Documentation Agent,” or “Co-Agents” shall have any
rights, powers, obligations, liabilities, responsibilities, or duties under
this Agreement other than those applicable to all Lenders as such. Without
limiting the foregoing, none of the Lenders so identified as a “Syndication
Agent,” “Documentation Agent,” or “Co-Agent” shall have or be deemed to have
any fiduciary relationship with any Lender.

SECTION
12.     MISCELLANEOUS.

       12.1     Notices.

		
	 	     (a)     General. Unless otherwise expressly provided herein, all notices
and other communications provided for hereunder shall be in writing
(including by facsimile transmission). All such written notices shall be
mailed, faxed, or delivered to the applicable address, facsimile number,
or (subject to clause (c) below) electronic mail address, and all notices
and other communications expressly permitted hereunder to be given by
telephone shall be made to the applicable telephone number, as follows
(or, as to each party at such other address as shall be

	 	 	 
	65	 	
Third Amended and Restated Credit Agreement

 

 

designated by such party in a written notice to the other parties delivered in compliance with this
Section 12.1):

If to Borrower:

	 	 	 	 
	 	Allied Capital Corporation
	 	1919 Pennsylvania Avenue, N.W
	 	Washington, DC 20006-3434
	 	Attention:	 	
Kelly A. Anderson, Treasurer
	 	Telecopy:	 	
(202)973-6328
	 	Telephone:	 	
(202)973-6328

If to Administrative Agent, LC Issuer, and Swing Line Lender:

	 	 	 	 
	 	Bank of America, N.A
	 	901 Main Street, 66th Floor
	 	Dallas, Texas 75202
	 	Attention:	 	
Shelly K. Harper
	 	Telecopy:	 	
(214) 209-0604
	 	Telephone:	 	
(214) 209-0567

If to a Lender:

	 	To such Lender’s address or telecopy number, as applicable, set forth
on Schedule 2 hereto or in the applicable Assignment and Acceptance
Agreement.

All such notices and other communications shall be deemed to be given or
made upon the earlier to occur of (i) actual receipt by the relevant party
hereto and (ii) (A) if delivered by hand or by courier, when signed for by
or on behalf of the relevant party hereto; (B) if delivered by mail, four
Business Days after deposit in the mails, postage prepaid; (C) if
delivered by facsimile, when sent and receipt has been confirmed by
telephone; and (D) if delivered by electronic mail (which form of delivery
is subject to the provisions of clause (c) below), when delivered;
provided, however, that notices and other communications to Administrative
Agent, LC Issuer, Swing Line Lender, or any other Lender pursuant to
Section 2 shall not be effective until actually received by such Person.
In no event shall a voicemail message be effective as a notice,
communication, or confirmation hereunder.

          
   (b)     Effectiveness of Facsimile Documents and Signatures. The Loan
Documents may be transmitted and/or signed by facsimile. The
effectiveness of any such documents and signatures shall, subject to
Applicable Law, have the same force and effect as manually-signed
originals and shall be binding on all of the parties hereto.
Administrative Agent may also require that any such documents and
signatures be confirmed by a manually-signed original thereof; provided,
however, that the failure to request or deliver the same shall not limit
the effectiveness of any facsimile document or signature.

          
   (c)     Limited Use of Electronic Mail. Electronic mail and Internet and
intranet websites may be used only to distribute routine communications,
such as financial statements and other information as provided in Sections
8.3 and 8.4, and to distribute Loan Documents for execution by the parties
thereto, and may not be used for any other purpose.

	 	 	 
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	 	     (d)     Reliance by Administrative Agent and Lenders. Administrative
Agent and the Lenders shall be entitled to rely and act upon any notices
(including telephonic Notices of Borrowing) purportedly given by or on
behalf of the Borrower even if (i) such notices were not made in a manner
specified herein, were incomplete or were not preceded or followed by any
other form of notice specified herein, or (ii) the terms thereof, as
understood by the recipient, varied from any confirmation thereof.
Borrower shall indemnify each Agent-Related Person and each Lender from
all losses, costs, expenses, and liabilities resulting from the reliance
by such Person on each notice purportedly given by or on behalf of
Borrower. Notwithstanding the foregoing, nothing contained in this
Section 12.1(d) shall exculpate Administrative Agent or any Lender from
its gross negligence or willful misconduct or require Borrower to
indemnify Administrative Agent or any Lender to the extent that the
losses, costs, expenses, and liabilities referred to in the preceding
sentence are determined by a court of competent jurisdiction to have
resulted from such Person’s own gross negligence or willful misconduct.
All telephonic notices to and other communications with Administrative
Agent may be recorded by Administrative Agent, and each of the parties
hereto hereby consents to such recording.

       12.2      Expenses. Borrower agrees (a) to pay or reimburse Administrative
Agent for all costs and expenses of Administrative Agent, Arranger, LC Issuer,
and Swing Line Lender incurred in connection with the syndication, development,
preparation, negotiation, execution, delivery, and administration of this
Agreement and the other Loan Documents and any amendment, waiver, consent or
other modification of the provisions hereof and thereof (whether or not the
transactions contemplated hereby or thereby are consummated), and the
consummation and administration of the transactions contemplated hereby and
thereby, including, without limitation, all Attorney Costs, and (b) to pay or
reimburse Administrative Agent, LC Issuer, Swing Line Lender, and each other
Lender for all costs and expenses incurred in connection with the enforcement,
attempted enforcement, or preservation of any rights or remedies under this
Agreement or the other Loan Documents (including all such costs and expenses
incurred during any “workout” or restructuring in respect of the Obligations
and during any legal proceeding, including any proceeding under any debtor
relief law), including, without limitation, all Attorney Costs. The foregoing
costs and expenses shall include all search, filing, recording, title insurance
and appraisal charges and fees and taxes related thereto, and other
out-of-pocket expenses incurred by Administrative Agent and the cost of
independent public accountants and other outside experts retained by
Administrative Agent or any Lender. All costs and expenses of Administrative
Agent, LC Issuer, Swing Line Lender, and the Lenders described in this Section
12.2 are part of the Obligations and, if Borrower shall not have paid such
costs and expenses on or before the 10th Business Day after demand therefor,
Administrative Agent is hereby irrevocably authorized to fund such obligation
as a Swing Line Loan to the extent of availability under the Swing Line
Subfacility.

       12.3      Jurisdiction; Consent to Service of Process; Waiver of Jury Trial.

		
	 	               (a)     BORROWER HEREBY IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR
ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF ANY NEW YORK
STATE COURT OR FEDERAL COURT OF THE UNITED STATES OF AMERICA SITTING IN
NEW YORK CITY, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR
PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE OTHER LOAN
DOCUMENTS, 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 NEW YORK STATE COURT OR, TO THE EXTENT PERMITTED BY
LAW, IN SUCH FEDERAL COURT. EACH OF THE PARTIES HERETO AGREES 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.

	 	 	 
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Third Amended and Restated Credit Agreement

 

 

		
	 	NOTHING IN THIS AGREEMENT SHALL AFFECT ANY RIGHT THAT ANY AGENT OR ANY
LENDER MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO
THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS AGAINST BORROWER OR ITS
PROPERTIES IN THE COURTS OF ANY JURISDICTION.

		
	 	     (b)     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 OR THE OTHER LOAN
DOCUMENTS IN ANY NEW YORK STATE OR FEDERAL COURT. 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.

		
	 	     (c)     BORROWER AND EACH OTHER PARTY HERETO CONSENTS TO SERVICE OF
PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 12.1(a). NOTHING IN
THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY TO THIS AGREEMENT TO
SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW.

		
	 	     (d)     EACH PARTY TO THIS AGREEMENT HEREBY EXPRESSLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT TO A TRIAL BY JURY
OF ANY CLAIM, DEMAND, ACTION, OR CAUSE OF ACTION ARISING UNDER ANY LOAN
DOCUMENT OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE
DEALINGS OF THE PARTIES HERETO OR ANY OF THEM WITH RESPECT TO ANY LOAN
DOCUMENT, OR THE TRANSACTIONS RELATED THERETO, IN EACH CASE WHETHER NOW
EXISTING OR HEREAFTER ARISING, AND WHETHER FOUNDED IN CONTRACT OR TORT OR
OTHERWISE; AND EACH PARTY HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM,
DEMAND, ACTION, OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT
A JURY, AND THAT ANY PARTY TO THIS AGREEMENT MAY FILE AN ORIGINAL
COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE
OF THE CONSENT OF THE SIGNATORIES HERETO TO THE WAIVER OF THEIR RIGHT TO
TRIAL BY JURY. EACH PARTY HERETO (1) CERTIFIES THAT NO REPRESENTATIVE,
AGENT, OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR
OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION,
SEEK TO ENFORCE THE FOREGOING WAIVER AND (2) ACKNOWLEDGES THAT IT AND THE
OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND
THE OTHER LOAN DOCUMENTS, AS APPLICABLE, BY, AMONG OTHER THINGS, THE
MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

     12.4      Successors and Assigns.

		
	 	     (a)     Each Lender may assign to one or more Eligible Assignees all or a
portion of its rights, obligations, or rights and obligations under this
Agreement (including, without limitation, all or a portion of its
Commitment or its Revolving Loans, together with any funded participations
under the Swing Line Subfacility and the LC Subfacility); provided,
however, that:

		
	 	        (i)     Each such assignment shall be to an Eligible Assignee;

		
	 	        (ii)     Except in the case of an assignment to another Lender or an
assignment of all of a Lender’s rights and obligations under this
Agreement, any such partial assignment shall be in an amount at least
equal to $10,000,000 or an integral multiple of $1,000,000 in excess
thereof;

	 	 	 
	68	 	
Third Amended and Restated Credit Agreement

 

 

		
	 	        (iii)     Each such assignment by a Lender shall be of a constant,
and not varying, percentage of all of its rights and obligations
under this Agreement and each Note (to the extent the Principal Debt
owed to the assigning Lender is evidenced by any Notes); and
	 
	 	        (iv)     The parties to such assignment shall execute and deliver to
Administrative Agent for its acceptance an Assignment and Acceptance
Agreement in the form of Exhibit A hereto, together with any Notes
subject to such assignment (to the extent the Principal Debt owed to
the assigning Lender is evidenced by any Notes) and a processing fee
of $3,500.

		
	 	Upon execution, delivery, and acceptance of such Assignment and Acceptance
Agreement, the assignee thereunder shall be a party hereto and, to the
extent of such assignment, have the obligations, rights, and benefits of a
Lender hereunder and the assigning Lender shall, to the extent of such
assignment, relinquish its rights and be released from its obligations
under this Agreement. Upon the consummation of any assignment pursuant to
this Section, the assignor, Administrative Agent and Borrower shall make
appropriate arrangements so that, if required, new Notes are issued to the
assignor and the assignee. If the assignee is not incorporated under the
laws of the United States of America or a state thereof, it shall deliver
to Borrower and Administrative Agent certification as to exemption from
deduction or withholding of Taxes in accordance with Section 4.6.

		
	 	     (b)     Administrative Agent shall maintain at its address referred to in
Section 12.1(a) a copy of each Assignment and Acceptance Agreement
delivered to and accepted by it and a register for the recordation of the
names and addresses of the Lenders and the Commitment of, and principal
amount of the Revolving Loans owing to, each Lender from time to time (the
“Register”). The entries in the Register shall be conclusive and binding
for all purposes, absent manifest error, and Borrower, Administrative
Agent and the Lenders may treat each Person whose name is recorded in the
Register as a Lender hereunder for all purposes of this Agreement. The
Register shall be available for inspection by Borrower or any Lender at
any reasonable time and from time to time upon reasonable prior notice.

		
	 	     (c)     Upon its receipt of an Assignment and Acceptance Agreement
executed by the parties thereto, together with any Notes subject to such
assignment (to the extent the Principal Debt owed to the assigning Lender
is evidenced by any Notes) and payment of the processing fee,
Administrative Agent shall, if such Assignment and Acceptance Agreement
has been completed and is in substantially the form of Exhibit A hereto,
(i) accept such Assignment and Acceptance Agreement, (ii) record the
information contained therein in the Register, and (iii) give prompt
notice thereof to the parties thereto and Borrower.

		
	 	     (d)     Each Lender may sell participations to one or more Persons (each
a “Participant”) in all or a portion of its rights, obligations or rights
and obligations under this Agreement (including all or a portion of its
Commitment or its Loans); provided, however, that (i) such Lender’s
obligations under this Agreement shall remain unchanged, (ii) such Lender
shall remain solely responsible to the other parties hereto for the
performance of such obligations, (iii) the Participant shall be entitled
to the benefit of the yield protection provisions contained in Section 4
and the right of set-off contained in Section 3.4 (provided that Borrower
shall not be obligated to pay any amount in excess of the amount that
would be due to such Lender from whom such participation was purchased
under such Sections as though no participation had been sold), and (iv)
Borrower shall continue to deal solely and directly with such Lender in
connection

	 	 	 
	69	 	
Third Amended and Restated Credit Agreement

 

 

		
	 	with such Lender’s rights and obligations under this Agreement, and such
Lender shall retain the sole right to enforce the obligations of Borrower
relating to its Loans and its Notes (to the extent the Principal Debt owed
to such Lender is evidenced by any Notes) and to approve any amendment,
modification, or waiver of any provision of this Agreement (other than
amendments, modifications, or waivers decreasing the amount of principal
of or the rate at which interest is payable on such Loans or Note,
extending any scheduled principal payment date or date fixed for the
payment of interest on such Loans or Note, or extending its Commitment).

		
	 	     (e)     Notwithstanding any other provision set forth in this Agreement,
any Lender may at any time assign and pledge all or any portion of its
Loans and its Notes (to the extent the Principal Debt owed to such Lender
is evidenced by any Notes) to any Federal Reserve Bank as collateral
security pursuant to Regulation A of the Board of Governors of the Federal
Reserve System and any “operating circular” issued by such Federal Reserve
Bank. No such assignment shall release the assigning Lender from its
obligations hereunder.

		
	 	     (f)     Any Lender may furnish any information concerning Borrower or any
of its Subsidiaries in the possession of such Lender from time to time to
Eligible Assignees and Participants (including prospective assignees and
participants), subject, however, to the provisions of Section 12.7.

		
	 	     (g)     Notwithstanding anything to the contrary contained herein, if at
any time Bank of America assigns all of its Commitment and Loans pursuant
to clause (a) above, Bank of America may, (i) upon 30 days’ notice to
Borrower and the Lenders, resign as LC Issuer and/or (ii) upon 30 days’
notice to Borrower, resign as Swing Line Lender. In the event of any such
resignation as LC Issuer or Swing Line Lender, Borrower shall be entitled
to appoint from among the Lenders a successor LC Issuer or Swing Line
Lender hereunder, with the consent of such successor LC Issuer or
successor Swing Line Lender, as the case may be; provided, however, that
no failure by Borrower to appoint any such successor shall affect the
resignation of Bank of America as LC Issuer or Swing Line Lender, as the
case may be. If Bank of America resigns as LC Issuer hereunder, it shall
retain all the rights and obligations of LC Issuer hereunder with respect
to all LCs outstanding as of the effective date of its resignation as LC
Issuer and all LC Exposure with respect thereto, including the right to
require Lenders to fund participations pursuant to Section 2.3. If Bank
of America resigns as Swing Line Lender, it shall retain all the rights of
Swing Line Lender provided for hereunder with respect to Swing Line Loans
made by it and outstanding as of the effective date of such resignation,
including the right to require Lenders to fund participations in
outstanding Swing Line Loans pursuant to Section 2.2(c).

     12.5     Amendments. Any provision of this Agreement or any other Loan
Document may be amended or waived if, but only if, such amendment or waiver is
in writing and is:

		
	 	     (a)     Executed by Borrower, Administrative Agent, and the particular
existing or new Lender if it purports (subject to Section 2.13) to
increase that Lender’s Commitment or add such new Lender as a new Lender
pursuant to Section 2.13.

		
	 	     (b)     Executed by Borrower, Administrative Agent, Swing Line Lender or
LC Issuer (as the case may be), and executed or approved in writing by all
Lenders if action of all Lenders is specifically provided in any Loan
Document or if it purports to (i) extend or increase the Commitments of
the Lenders (except extensions in accordance with Section 2.12 and
increases in accordance with Section 2.13); (ii) reduce the principal of,
or rate of interest on, any Revolving Loan; reduce any reimbursement
obligation with respect to any LC; or reduce any Fees or other amounts
payable hereunder; (iii) postpone any date fixed for the payment of any
scheduled

	 	 	 
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Third Amended and Restated Credit Agreement

 

 

		
	 	installment of principal of or interest on any Revolving Loan, the
payment of any reimbursement obligation with respect to any LC, the
payment of any Fees or other amounts payable hereunder, or the
termination of any Commitment; (iv) change Section 3.3 or Section 10.4 in
a manner that would alter the pro rata sharing of payments required
thereby; or (v) change the percentage of the Commitments or of the
aggregate Principal Debt, or the number of Lenders, which shall be
required for the Lenders or any of them to take any action under this
Section or any other provision of this Agreement.

		
	 	     (c)     Otherwise (i) for this Agreement, executed by Borrower,
Administrative Agent, Swing Line Lender or LC Issuer (as the case may
be), and Requisite Lenders or (ii) for other Loan Documents, approved in
writing by Requisite Lenders and executed by Borrower, Administrative
Agent or LC Issuer (as the case may be), and any other party to that Loan
Document.

		
	 	Notwithstanding anything to the contrary herein, no Defaulting Lender
shall have any right to approve or disapprove any amendment, waiver, or
consent hereunder, except that the Commitment of such Lender may not be
increased or extended without the consent of such Lender (except
extensions in accordance with Section 2.12).

     12.6     Nonliability of Agent and Lenders. The relationship between Borrower
and the Lenders and Administrative Agent shall be solely that of borrower and
lender. Administrative Agent and the Lenders shall have no fiduciary
responsibilities to Borrower; and no provision in this Agreement or in any of
the other Loan Documents, and no course of dealing between or among any of the
parties hereto, shall be deemed to create any fiduciary duty owing by
Administrative Agent or any Lender to any Lender, Borrower, or any Subsidiary.
Neither Administrative Agent nor any Lender undertakes any responsibility to
Borrower to review or inform Borrower of any matter in connection with any
phase of Borrower’s business or operations.

     12.7     Confidentiality. Each of Administrative Agent, LC Issuer, Swing Line
Lender, and the Lenders agrees to maintain the confidentiality of the
Information (as defined below), except that Information may be disclosed (a) to
its and its affiliates’ directors, officers, employees, and agents, including
accountants, legal counsel and other advisors (it being understood that the
Persons to whom such disclosure is made will be informed of the confidential
nature of such Information and instructed to keep such Information
confidential); (b) to the extent requested by any regulatory authority; (c) to
the extent required by Applicable Laws or regulations or by any subpoena or
similar legal process; (d) to any other party to this Agreement; (e) in
connection with the exercise of any remedies hereunder or any suit, action or
proceeding relating to this Agreement or the enforcement of rights hereunder;
(f) subject to an agreement containing provisions substantially the same as
those of this Section, to (i) any Eligible Assignee of or Participant in, or
any prospective Eligible Assignee of or Participant in, any of its rights or
obligations under this Agreement or (ii) any direct or indirect contractual
counterparty or prospective counterparty (or such contractual counterparty’s or
prospective counterparty’s professional advisor) to any credit derivative
transaction relating to obligations of Borrower; (g) with the consent of
Borrower; (h) to the extent such Information (i) becomes publicly available
other than as a result of a breach of this Section or (ii) becomes available to
Administrative Agent, LC Issuer, Swing Line Lender, or any Lender on a
nonconfidential basis from a source other than Borrower; or (i) to the National
Association of Insurance Commissioners or any other similar organization or any
nationally recognized rating agency that requires access to information about a
Lender’s or its affiliates’ investment portfolio in connection with ratings
issued with respect to such Lender or its affiliates. For the purposes of this
Section,
“Information” means all information received from Borrower relating to Borrower
or its business, other than any such information that is available to
Administrative Agent, LC Issuer, Swing Line Lender, or any Lender on a
nonconfidential basis prior to disclosure by Borrower; provided that, in the
case of

	 	 	 
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Third Amended and Restated Credit Agreement

 

 

information received from Borrower after the date hereof, such information is
clearly identified in writing at the time of delivery as confidential. Any
Person required to maintain the confidentiality of Information as provided in
this Section shall be considered to have complied with its obligation to do so
if such Person has exercised the same degree of care to maintain the
confidentiality of such Information as such Person would accord to its own
confidential information. Notwithstanding anything herein to the contrary,
“Information” shall not include, and Administrative Agent, LC Issuer, Swing
Line Lender, and each Lender (and each employer, representative, or agent of
any such Person) may disclose to any and all Persons, without limitation of any
kind, any information with respect to the “tax treatment” and “tax structure”
(in each case, within the meaning of Treasury Regulation Section 1.6011-4) of
the Loans, LCs, and transactions contemplated hereby and all materials of any
kind (including opinions or other tax analyses) that are provided to
Administrative Agent, LC Issuer, Swing Line Lender, or such Lender relating to
such tax treatment and tax structure; provided that, with respect to any
document or similar item that in either case contains information concerning
the tax treatment or tax structure of the transaction as well as other
information, this sentence shall only apply to such portions of the document or
similar item that relate to the tax treatment or tax structure of the Loans,
LCs, and transactions contemplated hereby.

     12.8     INDEMNIFICATION.

		
	 	     (a)     WHETHER OR NOT THE TRANSACTIONS CONTEMPLATED HEREBY ARE
CONSUMMATED, BORROWER AGREES TO INDEMNIFY AND HOLD HARMLESS EACH
AGENT-RELATED PERSON, LC ISSUER, SWING LINE LENDER, EACH LENDER, AND
THEIR RESPECTIVE AFFILIATES, OFFICERS, DIRECTORS, EMPLOYEES, COUNSEL,
AGENTS, ATTORNEYS-IN-FACT, AND ADVISORS (EACH, AN
“INDEMNIFIED PARTY”)
FROM AND AGAINST ANY AND ALL LIABILITIES, OBLIGATIONS, LOSSES, DAMAGES,
PENALTIES, CLAIMS, DEMANDS, ACTIONS, JUDGMENTS, SUITS, COSTS, EXPENSES,
AND DISBURSEMENTS (INCLUDING, WITHOUT LIMITATION, ATTORNEY COSTS) THAT
MAY BE INCURRED BY OR ASSERTED OR AWARDED AGAINST ANY INDEMNIFIED PARTY,
IN EACH CASE ARISING OUT OF OR IN CONNECTION WITH OR BY REASON OF
(INCLUDING, WITHOUT LIMITATION, IN CONNECTION WITH ANY INVESTIGATION,
LITIGATION, OR PROCEEDING OR PREPARATION OF DEFENSE IN CONNECTION
THEREWITH) (A) THE EXECUTION, DELIVERY, ENFORCEMENT, PERFORMANCE, OR
ADMINISTRATION OF ANY LOAN DOCUMENT OR ANY OTHER AGREEMENT, LETTER, OR
INSTRUMENT DELIVERED IN CONNECTION WITH THE TRANSACTIONS CONTEMPLATED
THEREBY OR THE CONSUMMATION OF THE TRANSACTIONS CONTEMPLATED THEREBY, (B)
ANY COMMITMENT, LOAN, OR LC OR THE USE OR PROPOSED USE OF THE PROCEEDS
THEREFROM (INCLUDING ANY REFUSAL BY THE LC ISSUER TO HONOR A DEMAND FOR
PAYMENT UNDER AN LC IF THE DOCUMENTS PRESENTED IN CONNECTION WITH SUCH
DEMAND DO NOT STRICTLY COMPLY WITH THE TERMS OF SUCH LC), OR (C) ANY
ACTUAL OR PROSPECTIVE CLAIM, LITIGATION, INVESTIGATION, OR PROCEEDING
RELATING TO ANY OF THE FOREGOING, WHETHER BASED ON CONTRACT, TORT, OR ANY
OTHER THEORY AND REGARDLESS OF WHETHER ANY INDEMNIFIED PARTY IS A PARTY
THERETO (ALL OF THE FOREGOING, COLLECTIVELY, THE “INDEMNIFIED LIABILITIES”), IN ALL CASES WHETHER OR NOT CAUSED BY OR ARISING, IN WHOLE OR IN
PART, OUT OF THE NEGLIGENCE OF THE INDEMNIFIED PARTY; PROVIDED THAT SUCH
INDEMNITY SHALL NOT, AS TO ANY INDEMNIFIED PARTY, BE AVAILABLE TO THE
EXTENT THAT SUCH LIABILITIES, OBLIGATIONS, LOSSES, DAMAGES, PENALTIES,
CLAIMS, DEMANDS, ACTIONS, JUDGMENTS, SUITS, COSTS, EXPENSES, OR
DISBURSEMENTS ARE DETERMINED BY A COURT OF COMPETENT JURISDICTION BY
FINAL AND NONAPPEALABLE JUDGMENT TO
HAVE RESULTED FROM SUCH INDEMNIFIED PARTY’S GROSS NEGLIGENCE OR
WILLFUL MISCONDUCT. NO INDEMNIFIED PARTY SHALL BE LIABLE FOR ANY DAMAGES
ARISING FROM THE USE BY OTHERS OF ANY INFORMATION OR OTHER MATERIALS
OBTAINED THROUGH INTRALINKS OR OTHER SIMILAR INFORMATION

	 	 	 
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Third Amended and Restated Credit Agreement

 

 

		
	 	TRANSMISSION SYSTEMS IN CONNECTION WITH THIS AGREEMENT, NOR SHALL ANY
INDEMNIFIED PARTY HAVE ANY LIABILITY FOR ANY SPECIAL, INDIRECT,
CONSEQUENTIAL, OR PUNITIVE DAMAGES RELATING TO THIS AGREEMENT OR ANY
OTHER LOAN DOCUMENT OR ARISING OUT OF ITS ACTIVITIES IN CONNECTION
HEREWITH OR THEREWITH (WHETHER BEFORE OR AFTER THE EFFECTIVE DATE). IN
THE CASE OF AN INVESTIGATION, LITIGATION OR OTHER PROCEEDING TO WHICH THE
INDEMNITY IN THIS SECTION 12.8 APPLIES, SUCH INDEMNITY SHALL BE EFFECTIVE
WHETHER OR NOT SUCH INVESTIGATION, LITIGATION OR PROCEEDING IS BROUGHT BY
BORROWER, ITS DIRECTORS, SHAREHOLDERS OR CREDITORS OR AN INDEMNIFIED
PARTY OR ANY OTHER PERSON OR ANY INDEMNIFIED PARTY IS OTHERWISE A PARTY
THERETO. ALL AMOUNTS DUE UNDER THIS SECTION 12.8 SHALL BE PAYABLE WITHIN
TEN BUSINESS DAYS AFTER DEMAND THEREFOR.

		
	 	     (b)     WITHOUT PREJUDICE TO THE SURVIVAL OF ANY OTHER AGREEMENT OF
BORROWER HEREUNDER, THE AGREEMENTS AND OBLIGATIONS OF BORROWER CONTAINED
IN THIS SECTION 12.8 SHALL SURVIVE THE PAYMENT IN FULL OF THE LOANS AND
ALL OTHER AMOUNTS PAYABLE UNDER THIS AGREEMENT.

     12.9        Severability of Provisions. Any provision of this Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective only to the extent of such prohibition or unenforceability
without invalidating the remainder of such provision or the remaining
provisions or affecting the validity or enforceability of such provision in any
other jurisdiction.

     12.10     
Governing Law. The Loan Documents have been entered into pursuant to
Section 5-1401 of the New York General Obligations Law, and the laws of the
State of New York and of the United States of America shall govern the rights
and duties of the parties to the Loan Documents and the validity, construction,
enforcement, and interpretation of the Loan Documents.

     12.11     Counterparts. This Agreement and any amendments, waivers, consents
or supplements may be executed in any number of counterparts and by different
parties hereto in separate counterparts, each of which when so executed and
delivered shall be deemed an original, but all of which counterparts together
shall constitute but one and the same instrument.

     12.12     Entirety. The rights and Obligations of Borrower and its
Subsidiaries, Lenders, and Administrative Agent shall be determined solely from
written agreements, documents, and instruments, and any prior oral agreements
between such parties are superseded by and merged into such writings. This
Agreement (as amended in writing from time to time) and the other written Loan
Documents executed by Borrower or any of its Subsidiaries, any Lender, and/or
Administrative Agent, (together with all commitment letters and fee letters
only as they relate to the payment of fees after the Closing Date) represent
the final agreement between Borrower and its Subsidiaries, Lenders, and
Administrative Agent, and may not be contradicted by evidence of prior,
contemporaneous, or subsequent oral agreements by such parties. There are no
unwritten oral agreements between such parties.

     12.13     Construction. Administrative Agent, Borrower, and each Lender
acknowledge that each of them has had the benefit of legal counsel of its own
choice and has been afforded an opportunity to review this Agreement and the
other Loan Documents with its legal counsel and that this Agreement and the
other Loan Documents shall be construed as if jointly drafted by Administrative
Agent, the other Agents, Borrower, and each Lender.

     12.14     Discharge Only Upon Payment in Full; Reinstatement in Certain
Circumstances. The obligations of Borrower and each Subsidiary under the Loan
Documents shall remain in full force and effect until termination of the
Commitments and payment in full of the Loans and of all interest, fees,

	 	 	 
	 	73	
Third Amended and Restated Credit Agreement

 

 

and other amounts of the Obligations then due and owing (and termination or
expiration of all outstanding LCs, if any, unless Administrative Agent shall
otherwise consent with the approval of Requisite Lenders), except that Sections
4, 11, and 12, and any other provisions under the Loan Documents expressly
intended to survive by the terms hereof or by the terms of the applicable Loan
Documents, shall survive such termination. If at any time any payment of the
principal of or interest on the Obligations or any other amount payable by
Borrower or its Subsidiaries under any Loan Document is rescinded or must be
otherwise restored or returned upon the insolvency, bankruptcy, or
reorganization of such entity or otherwise, the obligations of such entity
under the Loan Documents with respect to such payment shall be reinstated as
though such payment had been due but not made at such time.

     12.15     Payments Set Aside. To the extent that any payment by or on behalf
of Borrower is made to Administrative Agent or any Lender, or Administrative
Agent or any Lender exercises its right of set-off, and such payment or the
proceeds of such set-off or any part thereof is subsequently invalidated,
declared to be fraudulent or preferential, set aside or required (including
pursuant to any settlement entered into by Administrative Agent or such Lender
in its discretion) to be repaid to a trustee, receiver or any other party, in
connection with any proceeding under any receivership, liquidation, or
bankruptcy proceeding or otherwise, then (a) to the extent of such recovery,
the obligation or part thereof originally intended to be satisfied shall be
revived and continued in full force and effect as if such payment had not been
made or such set-off had not occurred, and (b) each Lender severally agrees to
pay to Administrative Agent upon demand its applicable share of any amount so
recovered from or repaid by Administrative Agent, plus interest thereon from
the date of such demand to the date such payment is made at a rate per annum
equal to the Federal Funds Rate from time to time in effect.

     12.16     Restatement of Existing Agreement. The parties hereto agree that,
on the Effective Date, after all conditions precedent set forth in Section 5.1
have been satisfied or waived: (a) the Obligations (as defined in this
Agreement) represent, among other things, the restatement, renewal, amendment,
extension, and modification of the “Obligations” (as defined in the Existing
Agreement); (b) this Agreement is intended to, and does hereby, restate, renew,
extend, amend, modify, supersede, and replace the Existing Agreement in its
entirety; (c) the Notes, if any, executed pursuant to this Agreement amend,
renew, extend, modify, replace, restate, substitute for, and supersede in their
entirety (but do not extinguish, the Debt arising under) the promissory notes
issued pursuant to the Existing Agreement, which existing promissory notes
shall be returned to Administrative Agent promptly after the Effective Date,
marked “canceled and replaced,” and, thereafter, delivered by Administrative
Agent or each such Lender to Borrower; and (d) the entering into and
performance of their respective obligations under the Loan Documents and the
transactions evidenced hereby do not constitute a novation nor shall they be
deemed to have terminated, extinguished, or discharged the indebtedness under
the Existing Agreement, all of which indebtedness shall continue under and be
governed by this Agreement and the other Loan Documents, except as expressly
provided otherwise herein. On the Effective Date, (i) all outstanding Debt
under the Existing Agreement owed to any “Lender” that is not continuing as a
Lender under this Agreement (each a “Non-Continuing
Lender”) shall be repaid in
full by Borrower and such Non-Continuing Lender’s commitment under the Existing
Agreement shall be terminated; (ii) with respect to Existing Lenders which are
continuing as Lenders under this Agreement (the
“Continuing Lenders”),
Administrative Agent shall make appropriate allocations and adjustments in the
initial funding instructions to the Lenders to reflect the modifications
effected by the Loan Documents to each Continuing Lender’s Commitment and
Commitment Percentage; and (iii) with respect to “Eurodollar Loans” under the
Existing Agreement, (x) all Interest Periods applicable thereto shall be deemed
to end on the Effective Date and (y) each Continuing Lender hereby waives,
effective as of the Effective Date, any loss, cost, or expense incurred as
a result of the amendment and restatement of such Existing Agreement.

REMAINDER OF PAGE INTENTIONALLY BLANK.

SIGNATURE PAGES FOLLOW.

	 	 	 
	 	74	
Third Amended and Restated Credit Agreement

 

 

     Signature Page to that certain Third Amended and Restated Credit Agreement
dated as of the date first stated above, among Allied Capital Corporation, as
Borrower, Bank of America, N.A., as Administrative Agent, and certain other
Agents and Lenders named therein.

 

	 	 	 	 	 	 	 	 
	 	 	ALLIED
CAPITAL CORPORATION, as Borrower
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	By:	 	/s/
Kelly A. Anderson

	 	 	 	 	Name:
	 	Kelly A. Anderson
	 	 	 	 	 	 	

	 	 	 	 	Title:
	 	EVP & Treasurer
	 	 	 	 	 	 	

Signature Page to Third Amended and Restated Credit Agreement

 

 

     Signature Page to that certain Third Amended and Restated Credit Agreement
dated as of the date first stated above, among Allied Capital Corporation, as
Borrower, Bank of America, N.A., as Administrative Agent, and certain other
Agents and Lenders named therein.

 

	 	 	 	 	 	 	 	 
	 	 	BANK OF
AMERICA, N.A., as Administrative Agent and as a Lender
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	By:	 	/s/
Shelly K. Harper

	 	 	 	 	Shelly
K. Harper, Principal

Signature Page to Third Amended and Restated Credit Agreement

 

 

     Signature Page to that certain Third Amended and Restated Credit Agreement
dated as of the date first stated above, among Allied Capital Corporation, as
Borrower, Bank of America, N.A., as Administrative Agent, and certain other
Agents and Lenders named therein.

 

	 	 	 	 	 	 	 	 
	 	 	BRANCH
BANKING AND TRUST COMPANY, as a Lender
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	By:	 	/s/
Gregg E. Dougherty

	 	 	 	 	Name:
	 	Gregg E. Dougherty
	 	 	 	 	 	 	

	 	 	 	 	Title:
	 	Senior Vice President
	 	 	 	 	 	 	

Signature Page to Third Amended and Restated Credit Agreement

 

 

     Signature Page to that certain Third Amended and Restated Credit Agreement
dated as of the date first stated above, among Allied Capital Corporation, as
Borrower, Bank of America, N.A., as Administrative Agent, and certain other
Agents and Lenders named therein.

 

	 	 	 	 	 	 	 	 
	 	 	CHEVY
CHASE BANK, F.S.B., as a Lender
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	By:	 	/s/
Joseph Chirico

	 	 	 	 	Name:
	 	Joseph Chirico
	 	 	 	 	 	 	

	 	 	 	 	Title:
	 	Vice President
	 	 	 	 	 	 	

Signature Page to Third Amended and Restated Credit Agreement

 

 

     Signature Page to that certain Third Amended and Restated Credit Agreement
dated as of the date first stated above, among Allied Capital Corporation, as
Borrower, Bank of America, N.A., as Administrative Agent, and certain other
Agents and Lenders named therein.

 

	 	 	 	 	 	 	 	 
	 	 	CREDIT
LYONNAIS NEW YORK BRANCH, as a Lender
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Ken
Ricciardi

	 	 	 	 	Name:
	 	Ken Ricciardi
	 	 	 	 	 	 	

	 	 	 	 	Title:
	 	VP
	 	 	 	 	 	 	

Signature Page to Third Amended and Restated Credit Agreement

 

 

     Signature Page to that certain Third Amended and Restated Credit Agreement
dated as of the date first stated above, among Allied Capital Corporation, as
Borrower, Bank of America, N.A., as Administrative Agent, and certain other
Agents and Lenders named therein.

 

	 	 	 	 	 	 	 	 
	 	 	DEUTSCHE
BANK AG, NEW YORK BRANCH, as a Lender
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	By:	 	/s/
Carol Simon

	 	 	 	 	Name:
	 	Carol Simon
	 	 	 	 	 	 	

	 	 	 	 	Title:
	 	Managing Director
	 	 	 	 	 	 	

 

	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	By:	 	/s/
Kevin McCann

	 	 	 	 	Name:
	 	Kevin McCann
	 	 	 	 	 	 	

	 	 	 	 	Title:
	 	Managing Director
	 	 	 	 	 	 	

Signature Page to Third Amended and Restated Credit Agreement

 

 

     Signature Page to that certain Third Amended and Restated Credit Agreement
dated as of the date first stated above, among Allied Capital Corporation, as
Borrower, Bank of America, N.A., as Administrative Agent, and certain other
Agents and Lenders named therein.

 

	 	 	 	 	 	 	 	 
	 	 	FIRSTTRUST
BANK, as a Lender
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	By:	 	/s/ John
Hollingsworth

	 	 	 	 	Name:
	 	John Hollingsworth
	 	 	 	 	 	 	

	 	 	 	 	Title:
	 	Vice President
	 	 	 	 	 	 	

Signature Page to Third Amended and Restated Credit Agreement

 

 

     Signature Page to that certain Third Amended and Restated Credit Agreement
dated as of the date first stated above, among Allied Capital Corporation, as
Borrower, Bank of America, N.A., as Administrative Agent, and certain other
Agents and Lenders named therein.

 

	 	 	 	 	 	 	 	 
	 	 	FLEET
NATIONAL BANK, as a Lender
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	By:	 	/s/
James M. Contis

	 	 	 	 	Name:
	 	James M. Contis
	 	 	 	 	 	 	

	 	 	 	 	Title:
	 	Vice President
	 	 	 	 	 	 	

Signature Page to Third Amended and Restated Credit Agreement

 

 

     Signature Page to that certain Third Amended and Restated Credit Agreement
dated as of the date first stated above, among Allied Capital Corporation, as
Borrower, Bank of America, N.A., as Administrative Agent, and certain other
Agents and Lenders named therein.

 

	 	 	 	 	 	 	 	 
	 	 	LASALLE
BANK NATIONAL ASSOCIATION, as a Lender
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	By:	 	/s/
Christie Davis

	 	 	 	 	Name:
	 	Christie Davis
	 	 	 	 	 	 	

	 	 	 	 	Title:
	 	Vice
President
	 	 	 	 	 	 	

	 	 	 	 	 
	 	LaSALLE BANK NATIONAL ASSOCIATION

Signature Page to Third Amended and Restated Credit Agreement

 

 

     Signature Page to that certain Third Amended and Restated Credit Agreement
dated as of the date first stated above, among Allied Capital Corporation, as
Borrower, Bank of America, N.A., as Administrative Agent, and certain other
Agents and Lenders named therein.

 

	 	 	 	 	 	 	 	 
	 	 	MERCANTILE-SAFE
DEPOSIT & TRUST COMPANY, as a Lender
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	By:	 	/s/
David R. Mesnick

	 	 	 	 	Name:
	 	David R. Mesnick
	 	 	 	 	 	 	

	 	 	 	 	Title:
	 	Vice President
	 	 	 	 	 	 	

Signature Page to Third Amended and Restated Credit Agreement

 

 

     Signature Page to that certain Third Amended and Restated Credit Agreement
dated as of the date first stated above, among Allied Capital Corporation, as
Borrower, Bank of America, N.A., as Administrative Agent, and certain other
Agents and Lenders named therein.

 

	 	 	 	 	 	 	 	 
	 	 	MERRILL
LYNCH BANK USA, as a Lender
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	By:	 	/s/
Louis Alder

	 	 	 	 	Name:
	 	Louis Alder
	 	 	 	 	 	 	

	 	 	 	 	Title:
	 	Vice President
	 	 	 	 	 	 	

Signature Page to Third Amended and Restated Credit Agreement

 

 

     Signature Page to that certain Third Amended and Restated Credit Agreement
dated as of the date first stated above, among Allied Capital Corporation, as
Borrower, Bank of America, N.A., as Administrative Agent, and certain other
Agents and Lenders named therein.

 

	 	 	 	 	 	 	 	 
	 	 	RIGGS
BANK N.A., as a Lender
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	By:	 	/s/
Robert A. Incorvati

	 	 	 	 	Name:
	 	Robert A. Incorvati
	 	 	 	 	 	 	

	 	 	 	 	Title:
	 	Vice President
	 	 	 	 	 	 	

Signature Page to Third Amended and Restated Credit Agreement

 

 

     Signature Page to that certain Third Amended and Restated Credit Agreement
dated as of the date first stated above, among Allied Capital Corporation, as
Borrower, Bank of America, N.A., as Administrative Agent, and certain other
Agents and Lenders named therein.

 

	 	 	 	 	 	 	 	 
	 	 	SOVEREIGN
BANK, as a Lender
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	By:	 	/s/ John
Baer

	 	 	 	 	Name:
	 	John Baer
	 	 	 	 	 	 	

	 	 	 	 	Title:
	 	Vice President
	 	 	 	 	 	 	

Signature Page to Third Amended and Restated Credit Agreement

 

 

     Signature Page to that certain Third Amended and Restated Credit Agreement
dated as of the date first stated above, among Allied Capital Corporation, as
Borrower, Bank of America, N.A., as Administrative Agent, and certain other
Agents and Lenders named therein.

 

	 	 	 	 	 	 	 	 
	 	 	U.S.
BANK NATIONAL ASSOCIATION, as a Lender
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	By:	 	/s/
Joseph P. Howard

	 	 	 	 	Name:
	 	Joseph P. Howard
	 	 	 	 	 	 	

	 	 	 	 	Title:
	 	Vice President
	 	 	 	 	 	 	

Signature Page to Third Amended and Restated Credit Agreement

 

 

     Signature Page to that certain Third Amended and Restated Credit Agreement
dated as of the date first stated above, among Allied Capital Corporation, as
Borrower, Bank of America, N.A., as Administrative Agent, and certain other
Agents and Lenders named therein.

 

	 	 	 	 	 	 	 	 
	 	 	WACHOVIA
BANK, NATIONAL ASSOCIATION, as a Lender
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	By:	 	/s/   Kimberly
Schaffer

	 	 	 	 	Name:
	 	Kimberly
Schaffer
	 	 	 	 	 	 	

	 	 	 	 	Title:
	 	Director
	 	 	 	 	 	 	

Signature Page to Third Amended and Restated Credit Agreement

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