Document:

EXHIBIT 10(xii)

 

 

U.S. 125,000,000

 

364-DAY CREDIT AGREEMENT

 

dated as of June 19, 2001

 

among

 

McCORMICK & COMPANY,
INCORPORATED,

 

as the Borrower,

 

CERTAIN FINANCIAL INSTITUTIONS,

 

as the Lenders,

 

BANK OF AMERICA, N.A.,

as the Documentation Agent,

 

SUNTRUST BANK,

as the Syndication Agent

 

and

 

WACHOVIA, N.A.

as the Administrative Agent

 

 

BANC OF AMERICA SECURITIES LLC

 

and

 

SUNTRUST EQUITABLE SECURITIES
CORPORATION

Lead Arrangers and Book Managers

 

 

TABLE OF CONTENTS

 

	
  ARTICLE I

  
	
  DEFINITIONS AND
  ACCOUNTING TERMS

  
	
   

  	
   

  
	
  SECTION 1.1.

  	
  Defined Terms

  
	
  SECTION 1.2.

  	
  Use of
  Defined Terms

  
	
  SECTION 1.3.

  	
  Cross-References

  
	
  SECTION 1.4.

  	
  Accounting and
  Financial Determinations

  
	
   

  	
   

  
	
  ARTICLE II

  
	
  MAKING THE
  LOANS

  
	
   

  	
   

  
	
  SECTION 2.1.

  	
  Revolving
  Loan Commitments and Borrowing Procedure.

  
	
  SECTION
  2.2.

  	
  Reduction of the
  Commitment Amount

  
	
  SECTION 2.3.

  	
  Competitive
  Bid Loans

  
	
  SECTION 2.4.

  	
  Continuation and
  Conversion Elections

  
	
  SECTION 2.5.

  	
  Funding

  
	
  SECTION 2.6.

  	
  Notes

  
	
  SECTION 2.7.

  	
  Multicurrency
  Loans.

  
	
  SECTION
  2.7.1.

  	
  Notification
  of Request

  
	
  SECTION 2.7.2.

  	
  Availability

  
	
  SECTION
  2.7.3.

  	
  Notification of
  Availability

  
	
  SECTION
  2.7.4.

  	
  Consequences of
  Availability

  
	
  SECTION
  2.7.5.

  	
  Unexpected Non-Availability

  
	
  SECTION
  2.7.6.

  	
  Consequences of
  Non-Availability

  
	
  SECTION
  2.8.

  	
  Extension of Maturity Date.

  
	
   

  	
   

  
	
  ARTICLE III

  
	
  REPAYMENT,
  PREPAYMENTS, INTEREST AND FEES

  
	
   

  	
   

  
	
  SECTION 3.1.

  	
  Repayment.

  
	
  SECTION 3.2.

  	
  Prepayments.

  
	
  SECTION 3.3.

  	
  Interest
  Provisions

  
	
  SECTION 3.3.1.

  	
  Rates

  
	
  SECTION
  3.3.2.

  	
  Post-Maturity
  Rates

  
	
  SECTION 3.3.3.

  	
  Payment Dates

  
	
  SECTION
  3.3.4.

  	
  Interest Rate Determination

  
	
  SECTION 3.4.

  	
  Fees

  
	
  SECTION 3.4.1.

  	
  Facility Fee

  
	
  SECTION 3.4.2.

  	
  Utilization
  Fee

  
	
  SECTION 3.4.3.

  	
  Agents’ Fees

  
	
   

  	
   

  
	
  ARTICLE IV

  
	
  CERTAIN LIBO
  RATE AND OTHER PROVISIONS

  
	
   

  	
   

  
	
  SECTION
  4.1.

  	
  Fixed Rate Lending Unlawful

  
	
  SECTION 4.2.

  	
  Deposits
  Unavailable

  
	
  SECTION
  4.3.

  	
  Increased LIBO Rate
  Loan Costs, etc

  

 

 

	
  SECTION 4.4.

  	
  Funding Losses

  
	
  SECTION
  4.5.

  	
  Increased
  Capital Costs

  
	
  SECTION 4.6.

  	
  Taxes

  
	
  SECTION
  4.7.

  	
  Payments, Computations,
  etc.

  
	
  SECTION 4.8.

  	
  Sharing
  of Payments

  
	
  SECTION 4.9.

  	
  Setoff

  
	
  SECTION 4.10.

  	
  Use of Proceeds

  
	
   

  	
   

  
	
  ARTICLE V

  
	
  CONDITIONS
  PRECEDENT

  
	
   

  	
   

  
	
  SECTION 5.1.

  	
  Conditions
  Precedent to the Obligations of the Lenders

  
	
  SECTION 5.1.1.

  	
  Resolutions,
  etc

  
	
  SECTION
  5.1.2.

  	
  Officer’s
  Certificate

  
	
  SECTION
  5.1.3.

  	
  Closing Fees, Expenses, etc

  
	
  SECTION
  5.1.4.

  	
  Delivery of Financial
  Information

  
	
  SECTION 5.1.5.

  	
  Delivery of
  Notes

  
	
  SECTION 5.1.6.

  	
  Termination
  of the Existing Credit Agreement

  
	
  SECTION
  5.1.7.

  	
  Opinion
  of Counsel

  
	
  SECTION
  5.2.

  	
  Conditions Precedent
  to Borrowings

  
	
  SECTION 5.2.1.

  	
  Compliance
  with Warranties, No Default, etc

  
	
  SECTION
  5.2.2.

  	
  Borrowing
  Request

  
	
  SECTION
  5.2.3.

  	
  Satisfactory
  Legal Form

  
	
   

  	
   

  
	
  ARTICLE VI

  
	
  REPRESENTATIONS AND
  WARRANTIES

  
	
   

  	
   

  
	
  SECTION 6.1.

  	
  Organization,
  etc

  
	
  SECTION 6.2.

  	
  Due
  Authorization, Non-Contravention etc

  
	
  SECTION
  6.3.

  	
  Government Approval
  Regulation, etc

  
	
  SECTION 6.4.

  	
  Validity, etc

  
	
  SECTION
  6.5.

  	
  Financial
  Information

  
	
  SECTION
  6.6.

  	
  No Material Adverse Change

  
	
  SECTION
  6.7.

  	
  Litigation, Labor
  Controversies, etc

  
	
  SECTION 6.8.

  	
  Subsidiaries

  
	
  SECTION
  6.9.

  	
  Ownership
  of Properties

  
	
  SECTION 6.10.

  	
  Taxes

  
	
  SECTION
  6.11.

  	
  Pension and Welfare Plans

  
	
  SECTION
  6.12.

  	
  Environmental Warranties

  
	
  SECTION 6.13.

  	
  Regulations
  U and X

  
	
  SECTION
  6.14.

  	
  Accuracy
  of Information

  
	
  SECTION 6.15.

  	
  Compliance with
  Law; Absence of Default

  
	
   

  	
   

  
	
  ARTICLE VII

  
	
  COVENANTS

  
	
   

  	
   

  
	
  SECTION
  7.1.

  	
  Affirmative
  Covenants

  

 

ii

 

	
  SECTION 7.1.1.

  	
  Financial
  Information Reports, Notices, etc

  
	
  SECTION
  7.1.2.

  	
  Compliance
  with Laws, etc

  
	
  SECTION
  7.1.3.

  	
  Maintenance of Properties

  
	
  SECTION 7.1.4.

  	
  Insurance

  
	
  SECTION 7.1.5.

  	
  Books and
  Records

  
	
  SECTION
  7.1.6.

  	
  Environmental
  Covenant

  
	
  SECTION 7.2.

  	
  Negative
  Covenants

  
	
  SECTION
  7.2.1.

  	
  Transactions with
  Affiliates

  
	
  SECTION 7.2.2.

  	
  Indebtedness

  
	
  SECTION 7.2.3.

  	
  Liens

  
	
  SECTION
  7.2.4.

  	
  Mergers, Asset
  Dispositions, etc

  
	
  SECTION
  7.2.5.

  	
  EBIT to Interest Expense
  Ratio

  
	
   

  	
   

  
	
  ARTICLE VIII

  
	
  EVENTS OF
  DEFAULT

  
	
   

  	
   

  
	
  SECTION
  8.1.

  	
  Listing of Events of
  Default

  
	
  SECTION
  8.1.1.

  	
  Non-Payment of Obligations

  
	
  SECTION
  8.1.2.

  	
  Breach of
  Warranty

  
	
  SECTION 8.1.3.

  	
  Non-Performance
  of Certain Covenants and Obligations

  
	
  SECTION 8.1.4.

  	
  Non-Performance
  of Other Covenants and Obligations

  
	
  SECTION
  8.1.5.

  	
  Default on Other
  Indebtedness

  
	
  SECTION 8.1.6.

  	
  Judgments

  
	
  SECTION 8.1.7.

  	
  Pension Plans

  
	
  SECTION
  8.1.8.

  	
  Control
  of the Borrower

  
	
  SECTION
  8.1.9.

  	
  Bankruptcy, Insolvency, etc

  
	
  SECTION 8.2.

  	
  Action
  if Bankruptcy

  
	
  SECTION
  8.3.

  	
  Action if Other Event
  of Default

  
	
   

  	
   

  
	
  ARTICLE IX

  
	
  THE AGENT

  
	
   

  	
   

  
	
  SECTION
  9.1.

  	
  Appointment; Powers
  and Immunities

  
	
  SECTION 9.2.

  	
  Reliance by
  Agent

  
	
  SECTION 9.3.

  	
  Defaults

  
	
  SECTION
  9.4.

  	
  Rights
  of Agent and its Affiliates as a Lender

  
	
  SECTION 9.5.

  	
  Indemnification

  
	
  SECTION
  9.6.

  	
  Consequential
  Damages

  
	
  SECTION 9.7.

  	
  Registered
  Holder of Loan Treated as Owner

  
	
  SECTION
  9.8.

  	
  Nonreliance on
  Agent and Other Lenders

  
	
  SECTION 9.9.

  	
  Failure to Act

  
	
  SECTION 9.10.

  	
  Successor
  Agent

  
	
  SECTION 9.11.

  	
  Other Agents

  

 

iii

 

	
  ARTICLE X

  
	
  MISCELLANEOUS PROVISIONS

  
	
   

  
	
  SECTION
  10.1.

  	
  Waivers,
  Amendments, etc

  
	
  SECTION 10.2.

  	
  Notices

  
	
  SECTION
  10.3.

  	
  Payment of Costs and
  Expenses

  
	
  SECTION 10.4.

  	
  Indemnification

  
	
  SECTION 10.5.

  	
  Survival

  
	
  SECTION 10.6.

  	
  Severability

  
	
  SECTION 10.7.

  	
  Headings

  
	
  SECTION 10.8.

  	
  Execution
  in Counterparts, Effectiveness, etc

  
	
  SECTION
  10.9.

  	
  Governing Law; Entire
  Agreement

  
	
  SECTION
  10.10.

  	
  Successors
  and Assigns

  
	
  SECTION 10.11.

  	
  Sale
  and Transfer of Loans and Note; Participations in Loans and Note

  
	
  SECTION 10.11.1.

  	
  Assignments

  
	
  SECTION
  10.11.2.

  	
  Participations

  
	
  SECTION
  10.12.

  	
  Other
  Transactions

  
	
  SECTION
  10.13.

  	
  Removal and
  Replacement of Lenders.

  
	
  SECTION 10.14.

  	
  Forum
  Selection and Consent to Jurisdiction

  
	
  SECTION
  10.15.

  	
  WAIVER
  OF JURY TRIAL

  

 

iv

 

	
  SCHEDULES AND EXHIBITS

  
	
   

  	
   

  
	
  SCHEDULE I

  	
  Disclosure Schedule

  
	
   

  	
   

  
	
  EXHIBIT A

  	
  Existing Subsidiaries

  
	
  EXHIBIT
  A-1

  	
  Form of
  Revolving Loan Note

  
	
  EXHIBIT A-2

  	
  Form of Competitive
  Bid Loan Note

  
	
  EXHIBIT B

  	
  Employee Benefit Plans

  
	
  EXHIBIT B-1

  	
  Form of
  Revolving Loan Borrowing Request

  
	
  EXHIBIT
  B-2

  	
  Form of
  Competitive Bid Loan Borrowing Request

  
	
  EXHIBIT C

  	
  Existing Liens

  
	
  EXHIBIT C-1

  	
  Form of
  Invitation for Bid Loan Quotes

  
	
  EXHIBIT C-2

  	
  Form of Competitive
  Bid Loan Offer

  
	
  EXHIBIT C-3

  	
  Form of
  Competitive Bid Loan Acceptance

  
	
  EXHIBIT
  C-4

  	
  Form of
  Competitive Bid Loan Borrowing Notice

  
	
  EXHIBIT D

  	
  Form of Lender
  Assignment Agreement

  
	
  EXHIBIT E

  	
  Form of Compliance
  Certificate

  
	
  EXHIBIT F

  	
  Form of
  Continuation/Conversion Notice

  
	
  EXHIBIT G

  	
  Form of
  Opinion of Counsel to the Borrower

  

 

v

 

364-DAY CREDIT AGREEMENT

 

THIS 364-DAY CREDIT AGREEMENT, dated as of
June 19, 2001, among McCORMICK & COMPANY, INCORPORATED, a Maryland
corporation (the “Borrower”), the various financial institutions parties
hereto (collectively, the “Lenders”) and WACHOVIA, N.A., as the
administrative agent (in such capacity, the “Agent”) for the Lenders.

 

W I T N E S S E T H:

 

WHEREAS, the Borrower has requested that the Lenders
provide to it a $125,000,000 364-day revolving line of credit; and the Lenders
and the Agent are willing to do so on the terms and conditions set forth
herein.

 

NOW, THEREFORE, in consideration of the premises and
the mutual covenants contained herein, the Borrower, the Lenders and the Agent
agree as follows:

 

ARTICLE I

 

DEFINITIONS AND
ACCOUNTING TERMS

 

SECTION
1.1.  Defined
Terms.  The following terms
(whether or not underscored) when used in this Agreement, including its
preamble and recitals, shall, except where the context otherwise requires, have
the following meanings (such meanings to be equally applicable to the singular
and plural forms thereof):

 

“Affiliate” of any Person means any other
Person which, directly or indirectly, controls, is controlled by or is under
common control with such Person (excluding any trustee under, or any committee
with responsibility for administering, any Plan).  A Person shall be deemed to be “controlled by” any other Person
if such other Person possesses, directly or indirectly, power

 

(a)                                  to
vote 25% or more of the securities (on a fully diluted basis) having ordinary voting
power for the election of directors or managing general partners; or

 

(b)                                 to
direct or cause the direction of the management and policies of such Person
whether by contract or otherwise;

 

provided, however,
that notwithstanding the foregoing, for purposes of Section 10.11.1,
an “Affiliate” shall be a Person engaged in the business of banking who is
controlled by, or under common control with, a Lender.

 

“Agent” is defined in the preamble and
includes each other Person as shall have subsequently been appointed as the
successor Agent pursuant to Section 9.4.

 

“Agents” means, collectively, the Agent, the
Documentation Agent and the Syndication Agent.

 

 

“Agreement” means, on any date, this 364-Day
Credit Agreement as originally in effect on the Effective Date and as
thereafter from time to time amended, supplemented, amended and restated, or
otherwise modified and in effect on such date.

 

“Alternate Base Rate” means, on any date and
with respect to all Base Rate Loans, a fluctuating rate of interest per annum
equal to the higher of

 

(a)                                  the
rate of interest most recently announced by Wachovia, N.A. at its Domestic
Office as its prime rate, and

 

(b)                                 the
Federal Funds Rate most recently determined by the Agent plus 1/2 of 1% per
annum.

 

The Alternate Base Rate
is not necessarily intended to be the lowest rate of interest determined by
Wachovia, N.A. in connection with extensions of credit.  Changes in the rate of interest on any Loans
maintained as Base Rate Loans will take effect simultaneously with each change
in the Alternate Base Rate.  The Agent
will give notice promptly to the Borrower and the Lenders of changes in the
Alternate Base Rate.

 

“Alternate Currency” means any Currency, other
than Dollars, which the Lenders shall at any relevant time have agreed (in the
manner provided for herein) to treat as an Alternate Currency for the purposes
of the Commitment Amount and shall be the denomination for Alternate Currency
Advances.

 

“Alternate Currency Advance” means a LIBO Rate
Loan or a Competitive Bid Loan, as the case may be, denominated in an Alternate
Currency.

 

“Applicable Law” shall mean, in respect of any
Person, all provisions of constitutions, statutes, rules, regulations and
orders of governmental bodies or regulatory agencies applicable to such Person,
and all orders and decrees of all courts and arbitrators in proceedings or
actions to which the Person in question is a party or by which it is bound.

 

“Approved Fund” is defined in Section 10.11.1.

 

“Assignee Lender” is defined in Section 10.11.1.

 

“Associated Costs” means, with respect to any
LIBO Rate Loan denominated in Sterling, a rate per annum equal to the
arithmetic mean of the percentage rates applicable to the LIBOR Offices of the
Reference Lenders (calculated by the Agent on the basis of the rates supplied
by each Reference Lender to the Agent) according to the following formula:

 

	
  Associated Costs

  	
  =

  	
  BY + L (Y-X) + S
  (Y-Z)

  
	
  per
  annum

  	
   

  	
  100 - (X+S)

  

 

where, with respect to
each Reference Lender:

 

B                                        =                                         The
percentage of such Reference Lender’s eligible liabilities required, on the
first day of the Relevant Period, to be held in a non-interest-bearing 

 

2

 

deposit account with the
Bank of England pursuant to the cash ratio requirements of the Bank of England.

 

Y                                        =                                         The
LIBO Rate at which Sterling deposits in an amount comparable to the aggregate
principal amount of the relevant LIBO Rate Loan are offered by such Reference
Lender to leading banks in the London interbank market at or about 11:00 a.m.
(London time) on the first day of the Relevant Period for a period comparable
to the Relevant Period.

 

L                                         =                                         The
average percentage of eligible liabilities which the Bank of England, as at the
first day of the Relevant Period, requires such Reference Lender to maintain as
secured money with members of the London Discount Market Association and/or as
secured call money with those money brokers and gilt-edged primary market
makers recognized by the Bank of England.

 

X                                       =                                         The
rate at which secured Sterling deposits in an amount comparable to the
aggregate principal amount of the relevant LIBO Rate Loan may be placed by such
Reference Lender with members of the London Discount Market Association and/or
as secured call money with money brokers and gilt-edged primary market makers
at or about 11:00 a.m. (London time) on the first day of the Relevant Period
for a period comparable to the Relevant Period.

 

S                                         =                                         The
percentage of such Reference Lender’s eligible liabilities required on the
first day of the relevant Interest Period to be placed as a special deposit
with the Bank of England.

 

Z                                        =                                         The
percentage interest rate per annum payable by the Bank of England on special
deposits or, if lower, Y.

 

(a)                                  For
the purposes of this definition:

 

(i)  “eligible liabilities” and ‘‘special
deposits” shall have the meanings ascribed to them from time to time by the
Bank of England; and

 

(ii)  “Relevant Period” means, if the
Interest Period with respect to such LIBO Rate Loan is three months or less,
the duration of such Interest Period or, if such Interest Period is longer than
three months, each period of three months and any necessary shorter period in
such Interest Period.

 

(b)                                 In
application of the above formula, B, Y, L, X, S and Z will be included in the
formula as decimal fractions and not as percentages, e.g.,  if B = 0.5% and Y = 15%, BY will be
calculated as 0.5 x 15 and not as 0.5% x 15%.

 

(c)                                  Associated
Costs shall be computed by the Agent on the first day of each Relevant Period,
and shall, if necessary, be rounded upward to the nearest 1/10,000 of 1%.  If there is more than one Relevant Period
comprised in the relevant Interest Period, 

 

3

 

then the Associated Costs
for that Interest Period shall be the weighted average of the amounts so
computed for the relevant periods comprised in that Interest Period.

 

(d)                                 Calculations
of Associated Costs will be made on the basis of a year of 365 days.

 

(e)                                  If
a Reference Lender fails to furnish a rate for the purposes of this definition,
the Associated Costs shall be determined on the basis of the rates furnished by
the remaining Reference Lenders.  If no
Reference Lender furnishes a rate for the purposes of this definition, the
Associated Costs payable by the relevant Borrower in respect of any LIBO Rate
Loan shall be determined by the Agent on such comparable basis as it may
reasonably determine.

 

“Attributable Value” means, as to any
particular Sale-Leaseback Transaction under which any Person is at the time
liable, at any date as of which the amount thereof is to be determined (i) in
the case of any such transaction involving a Capitalized Lease, the amount on
such date of the Capitalized Lease Obligation thereunder, or (ii) in the case
of any other such transaction, the then present value of the minimum rental
obligation under such transaction during the remaining term thereof (after
giving effect to any extensions at the option of the lessor), computed by
discounting the respective rental or other payments at the actual interest factor
included in such payment or, if such interest factor cannot be readily
determined, at the rate of 9.75% per annum, compounded annually, or calculated
in such other manner as may be required by GAAP in effect at the time.  The amount of any rental or other payment
required to be made under any such transaction not involving a Capitalized
Lease may exclude amounts required to be paid by the lessee (or equivalent
party) on account of maintenance, repairs, insurance, Taxes, assessments,
utilities, operating and labor costs and similar charges.  In the case of any such transaction not
involving a Capitalized Lease which is terminable by the lessee (or equivalent
party) upon payment of a penalty, such rental or other payment may include the
amount of such penalty, in which case no rental or other payment shall be
considered as required to be paid under such transaction subsequent to the
first date on which it may be so terminated.

 

“Authorized Officer” means, relative to the
Borrower, those of its officers whose signatures and incumbency shall have been
certified to the Agent and the Lenders pursuant to Section 5.1.1 or
any successor thereto.

 

“Available” means, in respect of any Alternate
Currency and any Lender, that such Alternate Currency is, at the relevant time,
readily available to such Lender as deposits in the London or other applicable
interbank market in the relevant amount and for the relevant term, is freely
convertible into Dollars and is freely transferable for the purposes of this
Agreement, but if, notwithstanding that each of the foregoing tests is
satisfied:

 

(a)                                  such
Alternate Currency is, under the then current legislation or regulations of the
country of such Alternate Currency (or under the policy of the central bank of
such country) or of the Bank of England or F.R.S.  Board, not permitted to be used for the purposes of this
Agreement; or

 

4

 

(b)                                 there
is no, or only insignificant, investor demand for the making of advances having
an interest period equivalent to that for the Alternate Currency Advance which
the Borrower has requested or in respect of which the Borrower has requested
offers to be made;

 

then such Alternate
Currency may be treated by any Lender as not being Available.

 

“Base Rate Loan” means a Loan bearing interest
at a fluctuating rate determined by reference to the Alternate Base Rate.

 

“Borrower” is defined in the preamble.

 

“Borrowing” means, as the context may require,
either a Competitive Bid Loan Borrowing or a Revolving Loan Borrowing.

 

“Borrowing Request” means, as the context may
require, either a Revolving Loan Borrowing Request or a Competitive Bid Loan
Borrowing Request.

 

“Business Day” means

 

(a)                                  any
day which is neither a Saturday or Sunday nor a legal holiday on which banks
are authorized or required to be closed in New York, New York; and

 

(b)                                 relative
to the making, continuing, prepaying or repaying of any LIBO Rate Loans, any
day (i) on which dealings in the relevant currency are carried on in the London
interbank market and (ii) in the case of LIBO Rate Loans denominated in a
Currency other than Dollars or Sterling, on which banks in the country for
which such Currency is the lawful currency are not authorized or required to be
closed.

 

“Capitalized Leases” means all monetary
obligations of the Borrower or any of its Subsidiaries under any leasing or
similar arrangements which, in accordance with GAAP, would be classified as
capitalized leases.

 

“Capitalized Lease Obligation” means, at any
time, the present value of the minimum net lease payments during the term of a
Capitalized Lease, computed as provided in the Statement of Financial
Accounting Standards No. 13, as amended from time to time.

 

“CERCLA” means the Comprehensive Environmental
Response, Compensation and Liability Act of 1990, as amended.

 

“CERCLIS” means the Comprehensive Environmental
Response Compensation Liability Information System List.

 

“Change in Control” means (a) the acquisition
by any Person, or two or more Persons acting in concert, of beneficial
ownership (within the meaning of Rule 13d-3 of the Securities and Exchange
Commission under the Securities Exchange Act of 1934) of 51% or more of the
outstanding shares of voting stock of the Borrower after giving effect to
certain provisions of the Borrower’s Certificate of Incorporation with respect
to the conversion of non-voting stock to 

 

5

 

voting stock; provided,  however, that acquisition by the
Borrower’s pension plan or profit sharing plan of 51% or more of the
outstanding shares of the Borrower’s voting stock shall not constitute a Change
in Control; or (b) during any period of 12 consecutive months, a majority of
the members of the board of directors of the Borrower cease to be composed of individuals
(i) who were members of the board of directors on the first day of such period,
(ii) whose election or nomination to the board of directors was approved by
individuals referred to in clause (i) above constituting at the time of such
election or nomination at least a majority of the board of directors or (iii)
whose election or nomination to the board of directors was approved by
individuals referred to in clauses (i) and (ii) above constituting at the time
of such election or nomination at least a majority of the board of directors.

 

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

 

“Commitment” means the commitment of each
Lender to make Revolving Loans pursuant to this Agreement.

 

“Commitment Amount” means U.S. $125,000,000, as
such amount may be reduced or adjusted from time to time in accordance with
this Agreement.

 

“Commitment Termination Event” means

 

(a)                                  the
occurrence of any Event of Default described in clauses (a) through (e)
of Section 8.1.9 with respect to the Borrower or any Principal
Subsidiary; or

 

(b)                                 the
occurrence and continuance of any other Event of Default and either

 

(i)  the declaration of the Loans to be due and
payable pursuant to Section 8.3, or

 

(ii)  in the absence of such declaration, the
giving of            notice
by the Agent, acting at the direction of the Required Lenders pursuant to Section 8.3,
to the Borrower that the Commitments have been terminated.

 

“Competitive Bid Loan” means a loan made by a
Lender to the Borrower based on the Competitive Bid Rate as part of a
Competitive Bid Loan Borrowing resulting from the procedure described in Section 2.3.

 

“Competitive Bid Loan Acceptance” means an
acceptance by the Borrower of a Competitive Bid Loan Offer pursuant to clause
(e) of Section 2.3, substantially in the form of Exhibit C-3
attached hereto.

 

“Competitive Bid Loan Borrowing” means
Competitive Bid Loans made by each Lender whose offer to make such Competitive
Bid Loans as part of such Borrowing has been accepted by the Borrower pursuant
to clause (e) of Section 2.3.

 

6

 

“Competitive Bid Loan Borrowing Notice” means a
notice by the Borrower specifying that a Competitive Bid Loan Borrowing has
occurred, substantially in the form of Exhibit C-4 attached hereto.

 

“Competitive Bid Loan Borrowing Request” means
a certificate requesting Competitive Bid Loans, duly executed by an Authorized
Officer, substantially in the form of Exhibit B-2 attached hereto.

 

“Competitive Bid Loan Interest Payment Date” is
defined in clause (a) of Section 2.3.

 

“Competitive Bid Loan Maturity Date” is defined
in clause (a)(iii) of Section 2.3.

 

“Competitive Bid Loan Note” means a promissory
note of the Borrower payable to any Lender, in the form of Exhibit A-2
hereto (as such promissory note may be amended, endorsed or otherwise modified
from time to time), evidencing the aggregate Indebtedness of the Borrower to
such Lender resulting from Loans outstanding from such Lender that were made as
Competitive Bid Loans, and also means all other promissory notes accepted from
time to time in substitution therefor or renewal thereof.

 

“Competitive Bid Loan Offer” means an offer by
a Lender to make a Competitive Bid Loan pursuant to clause (c) of Section 2.3,
substantially in the form of Exhibit C-2 attached hereto.

 

“Competitive Bid Outstanding Balance” means, at
any time, the then aggregate outstanding principal amount of all Competitive
Bid Loans.

 

“Competitive Bid Rate” means (a) the LIBO Rate
(plus the LIBO Rate Bid Margin) or (b) the Fixed Rate offered by a Lender in a
Competitive Bid Loan Offer in respect of a Competitive Bid Rate Loan proposed
pursuant to Section 2.3.

 

“Consolidated Net Tangible Assets” means all
assets of the Borrower and its Subsidiaries appearing on a consolidated balance
sheet of the Borrower and its Subsidiaries prepared in accordance with GAAP minus
goodwill and other intangible assets other than prepaid allowances.

 

“Contingent Liability” means any agreement,
undertaking or arrangement by which any Person guarantees, endorses or
otherwise becomes or is contingently liable upon (by direct or indirect
agreement, contingent or otherwise, to provide funds for payment, to supply
funds to, or otherwise to invest in, a debtor, or otherwise to assure a
creditor against loss) the indebtedness, obligation or any other liability of
any other Person (other than by endorsements of instruments in the course of
collection), or guarantees the payment of dividends or other distributions upon
the shares of any other Person.  The
amount of any Person’s obligation under any Contingent Liability shall (subject
to any limitation set forth therein) be deemed to be the outstanding principal
amount (or maximum amount, if larger) of the debt, obligation or other
liability guaranteed thereby.

 

7

 

“Continuation/Conversion Notice” means a notice
of continuation or conversion and certificate duly executed by an Authorized
Officer of the Borrower, substantially in the form of Exhibit F hereto.

 

“Controlled Group” means all members of a
controlled group of corporations and all members of a controlled group of
trades or businesses (whether or not incorporated) under common control which,
together with the Borrower, are treated as a single employer under
Section 414(b) or 414(c) of the Code or Section 4001 of ERISA.

 

“Currency” and “Currencies” means
Dollars, Deutschemarks, Yen, Sterling and Euro.

 

“Default” means any Event of Default or
condition, occurrence or event which, after notice or lapse of time or both,
would constitute an Event of Default.

 

“Deutschemark” and “DM” mean the lawful
currency of the Federal Republic of Germany.

 

“Disclosure Schedule” means the Disclosure
Schedule attached hereto as Schedule I, as it may be amended,
supplemented or otherwise modified from time to time by the Borrower with the
written consent of the Agent and the Required Lenders.

 

“Documentation Agent” means Bank of America,
N.A. in its capacity as documentation agent hereunder.

 

“Dollars” and the sign “$” each mean the
lawful currency of the United States of America.

 

“Dollar Equivalent” of any amount of any
Alternate Currency or Non-Major Alternate Currency on any date means the
equivalent amount in Dollars, converted at the rate of exchange quoted by
Wachovia, N.A. at its New York office to prime banks in New York for the spot
purchase in the New York foreign exchange market of the relevant Alternate
Currency or, to the extent spot quotations are available, the Non-Major Alternate
Currency, in each case at approximately 11:00 a.m. (New York time) on such date
in accordance with its normal practice.

 

“Domestic Office” means, relative to any
Lender, the office of such Lender designated as such below its signature hereto
or designated in the Lender Assignment Agreement or such other office of a
Lender (or any successor or assign of such Lender) within the United States as
may be designated from time to time by notice from such Lender, as the case may
be, to each other Person party hereto.

 

“EBIT” means, for any period, the sum of the
amounts for such period of (a) Net Income (excluding any one-time non-recurring
charges), (b) Interest Expense and (c) charges for federal, state, local and
foreign income taxes, all determined in accordance with GAAP.

 

“Euro” means the euro referred to in Council
Regulation (EC) no. 1103/97 dated June 17, 1997 passed by the Council of
the European Union, or, if different, the then lawful currency of the member
states of the European Union that participates in the third stage of Economic
and Monetary Union.

 

8

 

“Effective Date” shall mean the first date on
which this Agreement shall have been fully signed in accordance with Section 10.8
and each of the conditions precedent set forth in Section 5.1 have
been satisfied.

 

“Environmental Laws” means all applicable
federal, state or local statutes, laws, ordinances, codes, rules and
regulations (including consent decrees and administrative orders issued to the
Borrower or any Subsidiary) relating to public health and safety and protection
of the environment.

 

“ERISA” means the Employee Retirement Income
Security Act of 1974, as amended, and any successor statute of similar import,
together with the regulations thereunder, in each case as in effect from time
to time.  References to sections of
ERISA also refer to any successor sections.

 

“Event of Default” is defined in Section 8.1.

 

“Existing Credit Agreement” means that certain
Amended and Restated Revolving Credit Agreement dated as of December 13,
1996 among the Borrower, certain financial institutions as lenders and Toronto
Dominion (Texas), Inc., as administrative agent (such administrative agent
having been replaced by First Union National Bank), as amended.

 

“Federal Funds Rate” means, for any period, a
fluctuating interest rate per annum equal for each day during such period to
the rate of interest most recently offered to the Agent in the interbank market
as the overnight federal funds rate.

 

“Fiscal Quarter” means any quarter of a Fiscal
Year.

 

“Fiscal Year” means any period of twelve
consecutive calendar months ending on November 30; references to a Fiscal
Year with a number corresponding to any calendar year (e.g., the “2000
Fiscal Year”) refer to the Fiscal Year ending on the November 30 occurring
during such calendar year.

 

“Fixed Rate” means, for any period with respect
to Competitive Bid Loans, an absolute interest rate proposed by a Lender in a
Competitive Bid Loan Offer.

 

“Foreign Currency Equivalent” of any amount of
Dollars in any Alternate Currency or Non-Major Alternate Currency on any date
means the equivalent amount in the relevant currency converted at the rate of
exchange quoted under the heading “Exchange Rates — Currency per U.S. $” in The
Wall Street Journal for the immediately preceding Business Day for such
Alternate Currency or Non-Major Alternate Currency.

 

“F.R.S. Board” means the Board of Governors of
the Federal Reserve System or any successor thereto.

 

“GAAP” is defined in Section 1.4.

 

“Granting Lender” is defined in Section 10.1.1.

 

9

 

“Hazardous Material” means

 

(a)                                  any
“hazardous substance”, as defined by CERCLA;

 

(b)                                 any
“hazardous waste”, as defined by the Resource Conservation and Recovery Act, as
amended;

 

(c)                                  any
petroleum product; or

 

(d)                                 any
pollutant or contaminant or hazardous, dangerous or toxic chemical, material or
substance within the meaning of any other applicable federal, state or local
law, regulation, ordinance or requirement (including consent decrees and
administrative orders issued to the Borrower or any Subsidiary) relating to or
imposing liability or standards of conduct concerning any hazardous, toxic or
dangerous waste, substance or material, all as amended or hereafter amended.

 

“herein,” “hereof,” “hereto,” “hereunder”
and similar terms contained in this Agreement or any other Loan Document refer
to this Agreement or such other Loan Document, as the case may be, as a whole
and not to any particular Section, paragraph or provision of this Agreement or
such other Loan Document.

 

“Impermissible Qualification” means, relative
to the opinion or certification of any independent public accountant as to any
financial statement of the Borrower, any qualification or exception to such
opinion or certification

 

(a)                                  which
is of a “going concern” or similar nature;

 

(b)                                 which
relates to the limited scope of examination of matters relevant to such
financial statement; or

 

(c)                                  which
relates to the treatment or classification of any item in such financial
statement and which, as a condition to its removal, would require an adjustment
to such item the effect of which would be to cause the Borrower to be in
default of any of its obligations under Section 7.2.4.

 

“including” means including without limiting
the generality of any description preceding such term, and, for purposes of
this Agreement and each other Loan Document, the parties hereto agree that the
rule of ejusdem  generis shall not be applicable to limit a
general statement, which is followed by or referable to an enumeration of
specific matters, to matters similar to the matters specifically mentioned.

 

“Indebtedness” of any Person means, without
duplication, any obligation (whether present or future, actual or contingent, secured
or unsecured, as principal or surety or otherwise) for the payment or repayment
of money which would be regarded as indebtedness in accordance with GAAP,
including all Contingent Liabilities of such Person in respect of any such
obligations.

 

10

 

For all purposes of this Agreement, the Indebtedness
of any Person shall include the Indebtedness of any partnership in which such
Person is a general partner; provided,  however, that the
Indebtedness of any Person shall not include any obligation of a partnership in
which such Person is a general partner to the extent that such obligation
(including any Contingent Liability) is limited by its terms.

 

“Indemnified
Liabilities” is defined in Section 10.4.

 

“Indemnified Parties”
is defined in Section 10.4.

 

“Interest Expense”
means, for any period, all as determined in accordance with GAAP, total
interest expense, whether paid or accrued (without duplication) (including the
interest component of Capitalized Lease Obligations), of the Borrower and its
Subsidiaries on a consolidated basis, including, without limitation, all bank
fees, commissions, discounts and other fees and charges owed with respect to
letters of credit, but excluding, however, amortization of discount, interest
paid in property other than cash or any other interest expense not payable in
cash.

 

“Interest Period”
means, relative to any LIBO Rate Loans, the period beginning on (and including)
the date on which such LIBO Rate Loans are made or continued as, or converted
into, LIBO Rate Loans pursuant to Section 2.1 or 2.4 and
shall end on (but exclude) the day which numerically corresponds to such date
one, two, three or six months thereafter (or, if such month has no numerically
corresponding day, on the last Business Day of such month), the Borrower may
select in its relevant notice pursuant to Section 2.3 or 2.4;
provided,  however, that

 

(a)                                  the
Borrower shall not be permitted to select Interest Periods to be in effect at
any one time which have expiration dates occurring on more than five different
dates;

 

(b)                                 Interest
Periods commencing on the same date for Loans comprising part of the same
Borrowing shall be of the same duration;

 

(c)                                  if
such Interest Period would otherwise end on a day which is not a Business Day,
such Interest Period shall end on the next following Business Day (unless, such
next following Business Day is the first Business Day of a calendar month, in
which case such Interest Period shall end on the Business Day next preceding such
numerically corresponding day); and

 

(d)                                 no
Interest Period may end later than the Maturity Date.

 

“Lead Arrangers”
means, collectively, Banc of America Securities LLC and SunTrust Equitable
Securities Corporation.

 

“Lender Assignment
Agreement” means a Lender Assignment Agreement substantially in the form of
Exhibit D hereto.

 

“Lenders” has the
meaning specified in the preamble.

 

11

 

“LIBO Alternate Rate”
is defined in Section 3.3.1.

 

“LIBO Rate” is
defined in Section 3.3.1.

 

“LIBO Rate Bid Margin”
means, in respect of Competitive Bid Loans, the margin above (or below) the
applicable LIBO Rate offered for each such Competitive Bid Loan, expressed as a
percentage (rounded to the nearest 1/10, 000th of 1%) to be added to, or
subtracted from, such rate.

 

“LIBO Rate Loan”
means a Revolving Loan or a Competitive Bid Rate Loan, as the case may be,
bearing interest, at all times during an Interest Period applicable to such
Revolving Loan or Competitive Bid Rate Loan, at a fixed rate of interest
determined by reference to the LIBO Rate (Reserve Adjusted).

 

“LIBO Rate (Reserve
Adjusted)” is defined in Section 3.3.1.

 

“LIBOR Office”
means, relative to any Lender, the office of such Lender designated as such
below its signature hereto or designated in the Lender Assignment Agreement or
such other office of a Lender as designated from time to time by notice from
such Lender to the Borrower and the Agent, whether or not outside the United
States, which shall be making or maintaining LIBO Rate Loans of such Lender
hereunder.

 

“LIBOR Reserve
Percentage” is defined in Section 3.3.1.

 

“Lien” means any
security interest, mortgage, pledge, hypothecation, assignment, deposit
arrangement, encumbrance, lien (statutory or otherwise), charge against or
interest in property to secure payment of a debt or performance of an
obligation or other priority or preferential arrangement of any kind or nature
whatsoever.

 

“Loans” means the
Competitive Bid Loans and the Revolving Loans made on a Business Day by each
Lender to the Borrower pursuant to such Lender’s Commitment during the period
commencing on the Effective Date until (but not including) the Maturity
Date.  The aggregate principal amount at
any time outstanding of all Loans made by the Lenders shall not exceed the
Commitment Amount.

 

“Loan Document”
means this Agreement, the Notes, the Transaction Fee Letter and each other
document and agreement delivered to the Agent in connection herewith or
therewith.

 

“Material Adverse
Effect” means any event which will, or is reasonably likely to, have a
material adverse effect on (i) the financial condition, assets, liabilities,
operations or business of the Borrower and its Subsidiaries taken as a whole or
(ii) the Borrower’s ability to perform and comply with its monetary obligations
under this Agreement, the Notes and each other Loan Document.

 

“Maturity Date”
means the earlier to occur of

 

(a)                                  June 18,
2002, as such date may be extended from time to time in accordance with the
terms hereof;

 

12

 

(b)                                 the
date on which the Commitment Amount is terminated in full or reduced to zero
pursuant to Section 2.2; and

 

(c)                                  immediately
and without further notice upon the occurrence of any Commitment Termination
Event.

 

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

 

“Net Income”
means, for any period, with respect to the Borrower and its Subsidiaries,
income from continuing operations of the Borrower and its Subsidiaries during
such period, determined in accordance with GAAP.

 

“Non-Major Alternate
Currencies” means all currencies other than the Alternate Currencies and
Dollars.

 

“Note” means, as
the context may require, a Competitive Bid Loan Note or a Revolving Loan Note.

 

“Obligations”
means all obligations (monetary or otherwise) of the Borrower arising under or
in connection with this Agreement, the Notes and each other Loan Document.

 

“Organic Document”
means, (a) relative to the Borrower, its certificate of incorporation, its by-laws
and all shareholder agreements, voting trusts and similar arrangements
applicable to any of its authorized shares of capital stock and (b) relative to
any Subsidiary, its applicable corporate, partnership, joint venture or limited
liability company organizational and governing documents and all arrangements
applicable to any of its equity, ownership or membership interests.

 

“Other Credit
Agreement” means that certain five year Revolving Credit Agreement dated as
of the date hereof among the Borrower, the lenders named therein and Wachovia,
N.A., as administrative agent, as from time to time amended, supplemented,
amended and restated, or otherwise modified and in effect.

 

“Other Loans”
means, collectively, all “Loans” under and as defined in the Other Credit
Agreement.

 

“Participant” is
defined in Section 10.11.

 

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

 

“Pension Plan”
means a “pension plan,” as such term is defined in Section 3(2) of ERISA,
which is subject to Title IV of ERISA (other than a multiemployer plan as
defined in Section 4001(a)(3) of ERISA), and to which the Borrower or any
corporation, trade or business that is, along with the Borrower, a member of a
Controlled Group, may have liability, including any liability by reason of
having been a substantial employer within the meaning of Section 4063 of
ERISA at any time during the preceding five years, or by reason of being deemed
to be a contributing sponsor under Section 4069 of ERISA.

 

13

 

“Percentage”
means, relative to any Lender, the percentage set forth opposite its signature
hereto or set forth in the Lender Assignment Agreement, as such percentage may
be adjusted from time to time pursuant to Lender Assignment Agreement(s)
executed by such Lender and its Assignee Lender(s) and delivered pursuant to Section 10.11.

 

“Person” means any
individual, trustee, corporation, general partnership, limited partnership,
limited liability company, joint stock company, firm, business association,
trust, unincorporated organization, bank, joint venture, government,
governmental authority or any other entity, whether acting in an individual,
fiduciary or other capacity.

 

“Plan” means any
Pension Plan or Welfare Plan.

 

“Principal Subsidiary”
means a Subsidiary (i) whose total assets or net sales (each such amount
expressed on a consolidated basis in the case of a Subsidiary which itself has
Subsidiaries) represent, respectively, not less than 15% of either the
consolidated total assets or consolidated net sales of the Borrower and its
Subsidiaries, all as calculated annually by reference to the immediately
preceding Fiscal Year-end financial data (consolidated or unconsolidated, as the
case may be) of such Subsidiary and the then latest Fiscal Year-end audited
consolidated financial statements of the Borrower, or (ii) to which is
transferred all or substantially all of the assets or undertakings of a
Principal Subsidiary.  A certificate by
an Authorized Officer of the Borrower as to whether a Subsidiary is or is not
or was or was not a Principal Subsidiary at a specified date shall, in the
absence of manifest error, be conclusive and binding.

 

“Quarterly Payment
Date” means the last day of each calendar quarter or, if any such day is
not a Business Day, the next succeeding Business Day.

 

“Reference Lenders”
means Bank of America, N.A. and SunTrust Bank.

 

“Related Person”
means, with respect to any Person, the outstanding capital stock of which is at
least 25%, but not more than 50% beneficially owned by the Borrower or its
Subsidiaries.

 

“Release” means a
“release,” as such term is defined in CERCLA.

 

“Required Lenders”
means, at any time,

 

(a)                                  except
as otherwise provided in clause (c) hereof, with respect to any
provision of this Agreement other than the declaration of the acceleration of
the maturity of all or any portion of the outstanding principal amount of the
Loans and other Obligations to be due and payable pursuant to Section 8.3,
Lenders having greater than 50% of the Commitment Amount,

 

(b)
except as otherwise provided in clause (c) hereof, with respect to the
declaration of the acceleration of the maturity of all or any portion of the
outstanding principal amount of the Loans and other obligations to be due and
payable pursuant to Section 8.3, Lenders holding Loans representing
greater than 50% of the aggregate principal amount of the Loans outstanding, or

 

14

 

(c)                                  with
respect to any waiver of a Default or any amendment or modification of any
provision of this Agreement or any other Loan Document which would have the
effect of waiving a Default, Lenders having greater than (i) 50% of the
Commitment Amount or (ii) if the Commitments have been terminated, 50% of the
aggregate principal amount of the Loans outstanding.

 

“Resource Conservation
and Recovery Act” means the Resource Conservation and Recovery Act, 42
U.S.C.  Section 690, et  seq.,
as in effect from time to time.

 

“Revolving Commitment
Amount” means, on any date, relative to any Lender, the amount equal to
such Lender’s Percentage multiplied by the Commitment Amount.

 

“Revolving Loan”
means a Loan made by a Lender to the Borrower pursuant to Section 2.1.

 

“Revolving Loan Borrowing”
means Revolving Loans of the same type made by all Lenders on the same Business
Day in accordance with Section 2.1.

 

“Revolving Loan
Borrowing Request” means a certificate requesting Revolving Loans, duly
executed by an Authorized Officer, substantially in the form of Exhibit B-1
attached hereto.

 

“Revolving Loan
Commitment” means a Lender’s obligation to make Revolving Loans pursuant to
Section 2.1.

 

“Revolving Loan Note”
means a promissory note of the Borrower payable to any Lender, in the form of Exhibit
A-1 hereto (as such promissory note may be amended, endorsed or otherwise
modified from time to time), evidencing the aggregate Indebtedness of the
Borrower to such Lender resulting from Revolving Loans outstanding from such
Lender, and also means all other promissory notes accepted from time to time in
substitution therefor or renewal thereof.

 

“Sale-Leaseback
Transaction” means any arrangement, directly or indirectly, with any Person
whereby a seller or transferor shall sell or otherwise transfer any real or
personal property if, as part of the same transaction or series of
transactions, the seller or transferor shall then or thereafter lease as
lessee, or similarly acquire the right to possession or use of, such sold or
transferred property, or property which it intends to use substantially to the
same extent or for the same purpose as such sold or transferred property, in
any such case under any lease, agreement or other arrangement, whether or not
involving a Capitalized Lease, with the Person to whom such property was sold
or transferred (other than any such lease, agreement or arrangement having a
term, including renewals, not exceeding three years) which obligates the seller
or transferor to pay rent as lessee or make any other payment to such Person
for such possession or use.

 

“Senior Debt Rating”
means the Borrower’s senior, unsecured non-credit-enhanced long term debt
rating, as determined by S&P and Moody’s.

 

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

 

15

 

“SPC” is defined
in Section 10.1.1.

 

“Sterling” and “f”
mean the lawful currency of the United Kingdom of Great Britain and Northern
Ireland.

 

“Subsidiary” means,
with respect to any Person, any corporation, partnership, joint venture,
limited liability company or other business entity of which more than 50% of
the outstanding capital stock or other interests having ordinary voting power
to elect a majority of the board of directors or other governing body of such
entity (irrespective of whether at the time securities or interests of any
other class or classes of such entity shall or might have voting power upon the
occurrence of any contingency) is at the time, directly or indirectly,
beneficially owned by such Person, by such Person and one or more other
Subsidiaries of such Person, or by one or more other Subsidiaries of such
Person.  Unless otherwise indicated,
when used in this Agreement, the term “Subsidiary” shall refer to a Subsidiary
of the Borrower.

 

“Syndication Agent”
means SunTrust Bank in its capacity as syndication agent hereunder.

 

“Taxes” is defined
in Section 4.6.

 

“Telerate Page 3750”
means the display designated as “Page 3750” on the Telerate Service (or such
other page as may replace Page 3750 on the service or such other service as may
be nominated by the British Bankers’ Association as the information vendor for
the purpose of displaying British Bankers’ Association interest settlement
rates for Deutschemark, U.S. Dollar, Sterling or Yen deposits)

 

“Transaction Fee
Letter” means the confidential letter agreement, dated May __, 2001,
by and between the Agents, the Lead Arrangers and the Borrower.

 

“type” means,
relative to any Revolving Loan, the portion thereof being maintained as a Base
Rate Loan or a LIBO Rate Loan.

 

“United States” or
“U.S.” means the United States of America, its fifty States and the
District of Columbia.

 

“Utilization Fee Rate”
means, at any time, the percentage rate per annum at which utilization fees are
accruing pursuant to Section 3.4.2 at such time as set forth within
such Section.

 

“Welfare Plan”
means a “welfare plan,” as such term is defined in Section 3(l) of
ERISA.

 

“Yen” and “¥”
means the lawful currency of Japan.

 

SECTION
1.2.  Use
of Defined Terms.  Unless
otherwise defined or the context otherwise requires, terms for which meanings
are provided in this Agreement shall have such meanings when used in the
Disclosure Schedule and in each Note, Loan Document, Borrowing Request,
Continuation/Conversion Notice, notice, request and other communication
delivered from time to time in connection with this Agreement or any other Loan
Document.

 

16

 

SECTION
1.3.  Cross-References.  Unless otherwise specified, references in
this Agreement and in each other Loan Document to any Article or
Section are references to such Article or Section of this
Agreement or such other Loan Document, as the case may be, and, unless
otherwise specified, references in any Article, Section or definition to
any clause are references to such clause of such Article, Section or
definition.

 

SECTION
1.4.  Accounting and Financial
Determinations.  Unless
otherwise specified, all accounting terms used herein or in any other Loan
Document shall be interpreted, all accounting determinations and computations
hereunder or thereunder (including under Sections 7.2.2 and 7.2.4)
shall be made in accordance with generally accepted accounting principles
(“GAAP”) as in effect on the Effective Date of this Agreement, and all
financial statements required to be delivered hereunder or thereunder shall be
prepared in accordance with GAAP as in effect on the date of, or for the period
covered by, such financial statements, and applied in the preparation of the
financial statements referred to in Section 6.5.

 

ARTICLE II

 

MAKING THE LOANS

 

SECTION
2.1.  Revolving Loan Commitments and
Borrowing Procedure.

 

(a)                                  Commitments.  Subject to the terms and conditions of this
Agreement (including Article V), each Lender severally and for
itself alone agrees that it will make Revolving Loans pursuant to its Revolving
Loan Commitment described in this Section 2.1.  From time to time, on any Business Day
occurring prior to the Maturity Date, each Lender will make Revolving Loans to
the Borrower equal to such Lender’s Percentage of the aggregate amount of the
Revolving Loan Borrowing requested by the Borrower to be made by all Lenders on
such day.  No Lender shall be required
to make any Revolving Loan if, after giving effect thereto,

 

(i)                                     the
aggregate outstanding principal amount of all Loans (determined in the case of
Loans denominated in a currency other than Dollars on the basis of the Dollar
Equivalent thereof) of all Lenders would exceed the Commitment Amount, or

 

(ii)                                  the
sum of the

 

(A)                              then
aggregate outstanding principal amount of all Revolving Loans (determined in
the case of Loans denominated in a currency other than Dollars on the basis of
the Dollar Equivalent thereof) of such Lender

 

plus

 

(B)                                an
amount equal to (1) such Lender’s Percentage multiplied by (2) the then
Competitive Bid Outstanding Balance (determined in the case of Loans
denominated in a currency other than Dollars on the basis of 

 

17

 

the Dollar
Equivalent thereof) would exceed such Lender’s Revolving Commitment Amount.

 

Subject to the terms
hereof, the Borrower may from time to time borrow, repay and reborrow Revolving
Loans under this Agreement.  The
Commitment Amount shall be deemed to be used from time to time to the extent of
the Competitive Bid Outstanding Balance, and such deemed use of the Commitment
Amount shall be allocated to the Lenders’ Revolving Commitment Amounts
according to their respective Percentages.

 

(b)                                 Borrowing
Procedure.  By delivering a
Revolving Loan Borrowing Request to the Agent on a Business Day on or before
10:00 a.m. (New York City time), the Borrower may from time to time irrevocably
request a Loan to be made (a) (i) in respect of any Borrowing comprised of
Revolving Loans denominated in Dollars bearing interest at the LIBO Rate, on
not less than three nor more than five Business Days’ notice, and in respect of
any Borrowing comprised of (ii) Revolving Loans denominated in an Alternate Currency
bearing interest at the LIBO Rate, on not less than five nor more than ten
Business Days, notice and (b) in respect of any Borrowing comprised of
Revolving Loans denominated in Dollars bearing interest at the Alternate Base
Rate, on not less than one Business Day’s notice.  Each Revolving Loan Borrowing Request must be in an aggregate
minimum amount of $10,000,000 and in integral multiples of $1,000,000, or the
Foreign Currency Equivalent thereof in the case of Revolving Loans made in an
Alternate Currency.  Subject to the
terms and conditions of this Agreement, each Revolving Loan Borrowing shall be
made on the Business Day specified in the Revolving Loan Borrowing Request
therefor.  On such Business Day, each
Lender shall deposit in an account maintained with the Agent same day funds, on
or before 11:00 a.m. (New York City time) (or, in the case of Loans denominated
in a currency other than Dollars, on or before a mutually agreed upon time), in
an amount equal to such Lender’s Percentage of the requested Revolving Loan
Borrowing in the relevant currency, such deposit to be made to such account as
the Agent shall specify from time to time by notice to the Lenders.  No Lender’s obligation to make any Loan
shall be affected by any other Lender’s failure to make any Loan.

 

SECTION
2.2.  Reduction of the Commitment Amount.  The Commitment Amount is subject to
reduction from time to time pursuant to this Section.  The Borrower may, from time to time on any Business Day
voluntarily reduce the Commitment Amount; provided,  however, that
all such reductions under this Section shall be subject to Section 3.2(b),
require at least three Business Days’ prior notice to the Agent, be permanent,
be applied to the Lenders’ Revolving Commitment Amounts pro  rata
in accordance with their respective Percentages, and any partial reduction of
the Commitment Amount shall be in a minimum amount of $10,000,000 and in an
integral multiple of $5,000,000.

 

SECTION
2.3.  Competitive
Bid Loans.  Subject to the terms
and conditions of this Agreement (including Article V), each Lender
severally agrees that the Borrower may request that Competitive Bid Loan
Borrowings under this Section 2.3 be made from time to time on any
Business Day prior to the date occurring one month prior to the Maturity Date
in the manner set forth below; provided,  however, that following
the making of each Competitive Bid Loan Borrowing, the aggregate amount of all
Loans then outstanding (which, in the case of Loans 

 

18

 

denominated in a currency
other than Dollars, shall be the Dollar Equivalent thereof) shall not exceed
the Commitment Amount (and, subject to Section 4.4, the Borrower
hereby agrees to make a mandatory prepayment of Revolving Loans to the extent
necessary to reduce the outstanding principal amount of all Loans (after giving
effect to such Competitive Bid Loan Borrowing) to an amount not in excess of
the Commitment Amount).

 

(a)                                  Competitive
Bid Loan Borrowing Request.  The
Borrower may request Competitive Bid Loan Borrowings under this Section 2.3
by delivering to the Agent not later than 10:00 a.m. (New York City time) at
least five Business Days, prior to the date of the proposed Competitive Bid
Loan Borrowing, a Competitive Bid Loan Borrowing Request (which shall
constitute an invitation to the Lenders to extend Competitive Bid Loan quotes
to the Borrower, and which may contain requests for up to three different
Competitive Bid Loans), specifying

 

(i)                                     the
amount and Currency or Non-Major Alternate Currency of the Competitive Bid
Loan,

 

(ii)                                  the
proposed date (which shall be a Business Day) and aggregate principal amount or
amounts of each Competitive Bid Loan to be made as part of such proposed
Competitive Bid Loan Borrowing (which shall be in a minimum principal amount of
$5,000,000 and in an integral multiple of $1,000,000 or the Foreign Currency
Equivalent thereof) (and, subject to the first sentence of this Section, which
principal amount may exceed the Commitment Amount then available to be borrowed),

 

(iii)                               the proposed maturity
date or dates (each a “Competitive Bid Loan Maturity Date”) for repayment of
each Competitive Bid Loan to be made as part of such Competitive Bid Loan
Borrowing (which maturity date or dates may not be earlier than the date occurring
seven days after the date of such Competitive Bid Loan Borrowing or later than
the earlier of the date occurring (A) one hundred eighty-three days after the
date of such Competitive Bid Loan Borrowing or (B) the Maturity Date), and

 

(iv)                              the
interest payment date or dates (which interest payment dates shall be the
Competitive Bid Loan Maturity Date applicable thereto and, if such Competitive
Bid Loan Maturity Date occurs more than three months after the date of such
Competitive Bid Loan Borrowing, the date occurring on each Quarterly Payment
Date after the date of such Competitive Bid Loan Borrowing; each such interest
payment date, a “Competitive Bid Loan Interest Payment Date”) relating thereto.

 

The Borrower shall not
request any Competitive Bid Loan Borrowing within three Business Days’ after
any other Competitive Bid Loan Request.

 

(b)                                 Invitation
for Bid Loan Quotes.  Promptly upon
receipt of a Competitive Bid Loan Borrowing Request but in no event later than
4:00 p.m. (New York City time) on the date of such receipt, the Agent shall
send to the Lenders by telecopy an “Invitation 

 

19

 

for
Bid Loan Quotes” substantially in the form of Exhibit C-1 attached
hereto, which shall constitute an invitation by the Borrower to each Lender to
submit Competitive Bid Loan quotes offering to make the Competitive Bid Loans
to which such Competitive Bid Loan Borrowing Request relates in accordance with
this Section.

 

(c)                                  Submission
and Contents of Bid Loan Quotes.

 

(i)                                     If
any Lender, in its sole discretion, elects to offer to make a Competitive Bid
Loan to the Borrower as part of such proposed Competitive Bid Loan Borrowing at
a rate of interest specified by such Lender in its sole discretion, it shall
deliver to the Agent not later than 11:00 a.m. (New York City time) on the
fourth Business Day prior to the proposed date of Borrowing, and in the case of
a Competitive Bid Loan Borrowing in an Alternate Currency or Non-Major
Alternate Currency, no later than 11:00 a.m. (New York City time) on the fifth
Business Day prior to the proposed date of Borrowing, a Competitive Bid Loan
Offer, which must comply with the requirements of this clause, substantially in
the form of Exhibit C-2 hereto; provided, that Competitive Bid
Loan quotes submitted by the Agent (or any affiliate of the Agent) in the
capacity of a Lender may be submitted, and may only be submitted, if the Agent
or such affiliate notifies the Borrower of the terms of the offer or offers
contained therein not later than 10:00 a.m. (New York City time) on the fourth
Business Day prior to the proposed date of borrowing.  Such Competitive Bid Loan Offer shall specify

 

(A)                              the
Currency or Non-Major Alternate Currency of the Competitive Bid Loans,

 

(B)                                the
proposed date of Borrowing, which shall be the same as that set forth in the
applicable Invitation for Bid Loan Quotes,

 

(C)                                the
principal amount of the Competitive Bid Loan which such Lender would be willing
to make as part of such proposed Competitive Bid Loan Borrowing (which amount
shall be in a minimum principal amount of $5,000,000 and in an integral
multiple of $1,000,000, or the Foreign Currency Equivalent thereof, and may,
subject to the proviso to the first sentence of this Section 2.3,
exceed such Lender’s Revolving Commitment Amount),

 

(D)                               the
Fixed Rate or the LIBO Rate Bid Margin therefor.  A Competitive Bid Loan Offer submitted by a Lender pursuant to
this clause (c) shall be irrevocable, except with the written consent of
the Agent given on the instructions of the Borrower, and

 

(E)                                 the
identity of the quoting Lender.

 

(ii)                                  Any
Competitive Bid Loan quote that:

 

20

 

(A)                              is
not substantially in the form of Exhibit C-2 hereto or does not specify
all of the information required in clause (c) of this Section;

 

(B)                                contains
qualifying, conditional or similar language;

 

(C)                                contains
proposed terms other than or in addition to those set forth in the applicable
Invitation for Bid Loan Quotes; or

 

(D)                               arrives
after the time set forth in clause (c) of this Section shall be
disregarded by the Agent.

 

(d)                                 Notice
to Borrower.  The Agent shall (by
telephone confirmed by telecopy), by 4:00 p.m. (New York City time) on the
fourth Business Day prior to the proposed date of Borrowing, notify the
Borrower of the terms of any Competitive Bid Loan quote submitted by a Lender
that is in accordance with clause (c) of this Section.  The Agent’s notice to the Borrower shall
specify (A) the Currency or Non-Major Alternate Currency of the Competitive Bid
Loan, (B) the aggregate principal amount of Competitive Bid Loans for which
offers have been received specified in the related Competitive Bid Loan
Borrowing Request, (c) the principal amounts and LIBO Rate Bid Margins or Fixed
Rates so offered, and (D) the identity of such quoting Lenders.

 

(e)                                  Competitive
Bid Loan Acceptance.  The Borrower
shall, in turn, by telephone confirmed by telecopy before 11:00 a.m. (New York
City time) on the third Business Day prior to the proposed date of such
proposed Competitive Bid Loan Borrowing, either

 

(i)                                     irrevocably
cancel the Competitive Bid Loan Borrowing Request that requested such
Competitive Bid Loan Borrowing by giving the Agent (which shall promptly notify
each Lender) telephonic notice (promptly confirmed in writing) to that effect
(and, for purposes of this Section, a failure on the part of the Borrower to
timely notify the Agent under the terms of this clause shall be deemed to be
non-acceptance of all offers so notified to it pursuant to clause (d),
above), or

 

(ii)                                  irrevocably
accept one or more of the offers made by any Lender or Lenders pursuant to clause
(d) above, in its sole discretion, by giving the Agent telephonic notice
(and the Agent shall, promptly upon receiving such telephonic notice from the
Borrower, notify each Lender whose Competitive Bid Loan quote has been
accepted) (promptly confirmed in writing by delivery to the Agent of a
Competitive Bid Loan Borrowing Notice) of

 

(A)                              the
Currency or Non-Major Alternate Currency of the Competitive Bid Loan Borrowing
to be made,

 

(B)                                the
amount of the Competitive Bid Loan Borrowing to be made on such date, and

 

21

 

(C)                                the
amount of the Competitive Bid Loan (which amount shall not be greater than the
amount offered by such Lender for such Competitive Bid Loan pursuant to clause
(d) above) to be made by such Lender as part of such Competitive Bid Loan
Borrowing, and reject any remaining offers made by Lenders pursuant to clause
(d) above by giving the Agent (which shall promptly give to the Lenders)
notice to that effect;

 

provided,
however, that

 

(D)                               the
Borrower shall not accept an offer made at a particular Competitive Bid Rate if
the Borrower has decided to reject an offer made in respect of the same
Competitive Bid Loan with the same Competitive Bid Loan Maturity Date at a
lower Competitive Bid Rate of the type requested by the Borrower,

 

(E)                                 the
aggregate principal amount of the Competitive Bid Loan Offers accepted by the
Borrower shall not exceed the principal amount specified in the Competitive Bid
Loan Borrowing Request,

 

(F)                                 if
the Borrower shall accept an offer or offers made at a particular Competitive
Bid Rate but the amount of such offer or offers shall cause the total amount of
offers to be accepted by the Borrower to exceed the amount specified in the
Competitive Bid Loan Borrowing Request, then the Borrower shall
(notwithstanding the minimum offer acceptance amount required by clause (G)
below)

 

(1)                                  accept
a portion of such offer or offers in an aggregate amount equal to the amount
specified in the Competitive Bid Loan Borrowing Request less the amount of all
other offers accepted with respect to such Competitive Bid Loan Borrowing
Request, and

 

(2)                                  allocate
the Competitive Bid Loans in respect of which such offers are accepted among
the Lenders submitting such offers as nearly as possible in proportion to the
aggregate amount of such offers made by each Lender (provided that if the
available principal amount of Competitive Bid Loans to be so allocated is not
sufficient to enable Competitive Bid Loans to be so allocated to each such
Lender in a minimum principal amount of $5,000,000 and in integral multiples of
$1,000,000, or the Foreign Currency Equivalent thereof, the Borrower shall
select the Lenders to be allocated such Competitive Bid Loans in a minimum
principal amount of $1,000,000 and round allocations up to the next higher
multiple of $1,000,000 (or the Foreign Currency Equivalent thereof) if
necessary; provided, further, however, that no Lender shall be
required to make a Competitive Bid Loan if, as a result of such allocation, the
principal amount of such Lender’s Competitive 

 

22

 

Bid Loan would be less than $5,000,000 (or the Foreign
Currency Equivalent thereof), unless otherwise agreed to by such Lender),

 

(G)                                no
bid shall be accepted for a Competitive Bid Loan unless such Competitive Bid
Loan is in a minimum principal amount of $5,000,000 (except as provided in clause
(F) above) and an integral multiple of $1,000,000 and is part of a
Competitive Bid Loan Borrowing in a minimum principal amount of $5,000,000 (or,
in each case, the Foreign Currency Equivalent thereof), and

 

(H)                               the
Borrower may not accept any offer that is described in clause (c)(ii) of
this Section, or that otherwise fails to comply with the requirements of this
Agreement.

 

A notice given by the
Borrower pursuant to this clause (e)(ii) shall be irrevocable.

 

(f)                                    Funding
of Competitive Bid Loans.  Not later
than 11:00 a.m. (New York City time) on the date specified for each Competitive
Bid Loan hereunder, each Lender participating therein shall make available the
amount of the Competitive Bid Loan to be made by it on such date to Agent in
immediately available funds, for the account of the Borrower, such deposit to
be made to an account maintained by the Agent, as the Agent shall specify from
time to time by notice to the Lenders. 
The amount so received by the Agent shall be made available to the
Borrower not later than 2:00 p.m. (New York City time) on the date of the
requested Borrowing by depositing the same in immediately available funds in an
account of the Borrower’s notified to the Agent in writing.  Promptly after each Competitive Bid Loan
Borrowing, but no later than the immediately succeeding Business Day, the
Borrower will deliver to each Lender a Competitive Bid Loan Borrowing Notice,
specifying the amount of the Competitive Bid Loan Borrowing, the amounts and
Currencies or Non-Major Alternate Currencies of the Competitive Bid Loans which
comprise such Borrowing, the applicable Competitive Bid Rates accepted, the
consequent Competitive Bid Outstanding Balance, the date on which such
Competitive Bid Loan Borrowing was made and the corresponding Competitive Bid
Loan Maturity Date applicable to all Competitive Bid Loans that are part of
such Competitive Bid Loan Borrowing.

 

SECTION
2.4.  Continuation and Conversion
Elections.  By delivering a
Continuation/Conversion Notice to the Agent on or before 11:00 a.m. (New York
City time) on a Business Day, the Borrower may from time to time irrevocably
elect, on not less than three nor more than five Business Days’ notice, that
all, or any portion in an aggregate minimum amount of $5,000,000 and an
integral multiple of $1,000,000 or the Foreign Currency Equivalent thereof, of
the Revolving Loans be, (a) in the case of Base Rate Loans, converted into LIBO
Rate Loans, (b) in the case of LIBO Rate Loans denominated in Dollars, be
converted into Base Rate Loans or continued as LIBO Rate Loans, or (c) in the
case of LIBO Rate Loans denominated in an Alternate Currency, continued as LIBO
Rate Loans in the same Currency.

 

23

 

In the absence of delivery of a Continuation/Conversion
Notice with respect to LIBO Rate Loans (which are Revolving Loans) at least
three Business Days’ before the last day of the then current Interest Period
with respect thereto,

 

(a)                                  LIBO
Rate Loans denominated in Dollars shall be converted automatically on such last
day to Base Rate Loans, and

 

(b)                                 LIBO
Rate Loans denominated in an Alternate Currency shall be continued as Loans in
the relevant Alternate Currency at a rate per annum equal to the LIBO Alternate
Rate for such relevant Currency plus the applicable margin for the shortest
available interest period selected by the Agent in its sole discretion (but not
later than the Maturity Date).

 

Each such conversion and continuation shall be
prorated among the applicable outstanding Loans of all Lenders, and no portion
of the outstanding principal amount of any Loans may be continued as, or be
converted into, LIBO Rate Loans when any Default has occurred and is
continuing.  The Agent shall promptly
notify each Lender of the applicable interest period and interest rate.

 

SECTION
2.5.  Funding.  Each Lender may, if it so elects, fulfill
its obligation to make, continue or convert LIBO Rate Loans hereunder by
causing one of its foreign branches or Affiliates (or an international banking
facility created by such Lender) to make, continue or convert such LIBO Rate
Loan; provided,  however, that such LIBO Rate Loan shall
nonetheless be deemed to have been made and to be held by such Lender, and the
obligation of the Borrower to repay such LIBO Rate Loan shall nevertheless be
to such Lender for the account of such foreign branch, Affiliate or
international banking facility.  In
addition, the Borrower hereby consents and agrees that, for purposes of any
determination to be made for purposes of Section 4.1, 4.2, 4.3
it shall be conclusively assumed that each Lender elected to fund all LIBO Rate
Loans by purchasing deposits in the relevant currency in the relevant interbank
eurodollar market.

 

SECTION
2.6.  Notes.  Each Lender’s Loans shall be evidenced by a
Note payable to the order of such Lender in a principal amount equal to:

 

(a)                                  in
the case of Revolving Loans, such Lender’s original Revolving Commitment
Amount, and

 

(b)                                 in
the case of Competitive Bid Loans, $125,000,000.

 

The Borrower hereby
irrevocably authorizes each Lender to make (or cause to be made) appropriate
notations on the grid attached to such Lender’s Note (or on any continuation of
such grid), which notations, if made, shall evidence, inter  alia,
the date of, the outstanding principal of, and Interest Period (in the case of
Revolving Loans), or Competitive Bid Loan Maturity Dates and Competitive Bid
Loan Interest Payment Dates (in the case of Competitive Bid Loans) applicable
to the Loans evidenced thereby.  Such
notations shall constitute prima facie evidence of the accuracy of the
information so recorded; provided,  however, that the failure of
any Lender to make any such notations shall not limit or otherwise affect any
obligations of the Borrower.

 

24

 

SECTION
2.7.  Multicurrency
Loans.

 

SECTION
2.7.1.  Notification
of Request.  If any Revolving
Loan Borrowing Request requests a Borrowing in an Alternate Currency, the Agent
shall in the notice given to the Lenders pursuant to Section 2.1
give details of such request including, without limitation, the aggregate
principal amount of the Revolving Loan Borrowing in such Alternate Currency to
be made by each Lender pursuant to this Agreement.

 

SECTION
2.7.2.  Availability.  Each Lender shall be treated as having confirmed
that the Alternate Currency requested is Available to it unless no later than
10:00 a.m. (New York City time) on the third Business Day before the Revolving
Loan Borrowing it shall have notified the Agent that such Alternate Currency is
not Available.

 

SECTION
2.7.3.  Notification of Availability.  No later than 2:00 p.m. (New York City time)
on the third Business Day before the proposed Borrowing the Agent shall notify
the Borrower and the Lenders if it has received notification from any of the Lenders
that the Alternate Currency is not Available.

 

SECTION
2.7.4.  Consequences of Availability.  If the Agent does not notify the Borrower
and the Lenders that the Agent has received notification from any of the
Lenders that the Alternate Currency requested is not Available, the Lenders
shall, on the proposed date of the Revolving Loan Borrowing specified in the
Revolving Loan Borrowing Request become obligated, subject to this Section 2.7,
to make the LIBO Rate Loan in accordance with the provisions of this Agreement.

 

SECTION
2.7.5.  Unexpected Non-Availability.  If, at any time before 10:00 a.m. (New York
City time) on the proposed Revolving Loan Borrowing date, any Lender shall have
determined that the Alternate Currency in which it is obliged to make a LIBO
Rate Loan or a Competitive Bid Loan is no longer Available to it by reason
that, under the then current legislation or regulations of the country of
incorporation of such Lender or the country of such Alternate Currency (or the
then policy of the central bank of such country) or the Bank of England or the
F.R.S.  Board, such Alternate Currency
is not or will not be permitted to be used for the purposes of this Agreement,
then such Lender shall give notice to the Agent (and shall include in such notice
a statement of which other Alternate Currencies are not Available to such
Lender), and the Agent shall give notice to the Borrower, and the obligation of
such Lender to make its share of such Borrowing in such Alternate Currency
shall be replaced on the following basis:

 

(a)                                  The
Borrower shall be entitled to notify the Agent (which shall promptly notify
each affected Lender) not later than 10:00 a.m. (New York City time) on the
third Business Day before the proposed Borrowing, that the Borrower elects either
that the said obligation of the relevant Lender shall be:

 

(i)                                     replaced
by an obligation to make a Loan in Dollars by that Lender having an aggregate
principal amount equal to its share of such Borrowing in the Alternate
Currency, rounded, if necessary, as the Agent shall decide, which such Lender
would otherwise have been required to make; or

 

25

 

(ii)                                  replaced
by an obligation to make a LIBO Rate Loan in an Alternate Currency by that
Lender in an Alternate Currency (other than any Alternate Currency which such
Lender shall have stated, as provided above, is not Available to it), such
Alternate Currency having an aggregate principal amount which is, on the date
on which such notification is actually received by the Agent, the equivalent
amount of its share of such Borrowing, rounded, if necessary, as the Agent
shall decide, which such Lender would otherwise have been requested to make.

 

(b)                                 For
purposes of clauses (i) and (ii) of paragraph (a) of this
Section, any rounding in the amount of Loans by the Agent shall not result in
any Lender making Loans in an aggregate principal amount exceeding such
Lender’s Commitment.

 

(c)                                  If
the Borrower has not notified the Agent as provided in paragraph (a)
above, the obligation of the Lender shall be replaced by such an obligation as
is mentioned in clause 2.7.5(a)(i).

 

If such Lender shall be
required under paragraph (a) or paragraph (b) of Section 2.7.5
to make the Loan mentioned therein, such Borrowing shall be made on the date of
the proposed Borrowing, shall have the same Interest Period as the Alternate
Currency Advance which it replaces and the applicable interest rate shall be
calculated in accordance with Section 3.3.1 (as though such
Borrowing were a separate Loan denominated in Dollars or, as the case may be,
in the relevant Alternate Currency).

 

SECTION
2.7.6.  Consequences of Non-Availability.  If the Agent notifies the Borrower pursuant
to Section 2.7.3 that any of the Lenders has notified the Agent
that the Alternate Currency is not Available, such notification shall revoke
the relevant Borrowing Request.

 

SECTION
2.8.  Extension
of Maturity Date.

 

(a)                                  Not
earlier than 60 days prior to, nor later than 30 days prior to, each
anniversary of the Effective Date, the Borrower may, upon notice to the Agent
(who shall promptly notify the Lenders), request a one year extension of the
Maturity Date.  Within 15 days of
delivery of such notice, each Lender shall notify the Agent whether or not it
consents to such extension (which consent may be given or withheld in such
Lender’s sole and absolute discretion). 
Any Lender not responding within the above time period shall be deemed
not to have consented to such extension. 
The Agent shall promptly notify the Borrower and the Lenders of the
Lenders’ responses.  If any Lender
declines, or is deemed to have declined, to consent to such extension, the
Borrower may cause any such Lender to be removed or replaced as a Lender
pursuant to Section 10.13.

 

(b)                                 The
Maturity Date shall be extended only if Lenders holding at least 62.5% of the
Commitment Amount (calculated immediately prior to giving effect to any
removals and/or replacements of Lenders permitted herein) and all Lenders
(after giving effect to any removals and/or replacements of Lenders permitted
herein) (the “Consenting Lenders”) have consented thereto.  If so extended, the Maturity Date, as to the
Consenting Lenders, shall be extended to a date 364 days from the existing
Maturity 

 

26

 

Date, effective as
of the existing Maturity Date (the “Extension Effective Date”).  The Agent and the Borrower shall promptly
confirm to the Lenders such extension and the Extension Effective Date.  As a condition precedent to such extension,
the Borrower shall deliver to the Agent a certificate dated as of the Extension
Effective Date (in sufficient copies for each Lender) signed by an Authorized
Officer of the Borrower (i) certifying and attaching the resolutions adopted by
the Borrower approving or consenting to such extension and (ii) certifying
that, before and after giving effect to such extension, the representations and
warranties contained in Article VI are true and correct on and as
of the Extension Effective Date and no Default or Event of Default exists.  The Agent shall distribute a schedule (which
shall be deemed incorporated into this Agreement) to reflect any changes in the
Commitment Amount, Lenders and Percentages. 
The Borrower shall prepay any Loans outstanding on the Extension
Effective Date (and prepay any additional amounts required pursuant to Section 4.4)
to the extent necessary to keep outstanding Loans ratable with the Percentages
of all the Lenders.

 

(c)                                  This
Section 2.8 shall supersede any provisions in Section 10.1
to the contrary.

 

ARTICLE III

 

REPAYMENT,
PREPAYMENTS, INTEREST AND FEES

 

SECTION
3.1.  Repayment.

 

(a)                                  The
Borrower shall repay in full the unpaid principal amount of all Revolving Loans
on the Maturity Date.

 

(b)                                 The
Borrower shall repay in full the unpaid principal amount of all Competitive Bid
Loans on the Competitive Bid Loan Maturity Date thereof.

 

(c)                                  The
Borrower shall, immediately upon any acceleration of the Maturity Date of any
Loans pursuant to Section 8.2 or Section 8.3, repay the
aggregate unpaid principal amount of all Loans so accelerated.

 

SECTION
3.2.  Prepayments.

 

(a)                                  The
Borrower may, from time to time on any Business Day, make a voluntary
prepayment, in whole or in part, of the outstanding principal amount of any
Revolving Loans; provided,  however, that

 

(i)                                     any
such prepayment shall be made pro rata among Revolving Loans of the same
type and, if applicable, having the same Interest Period of all Lenders,

 

(ii)                                  all
such voluntary prepayments shall require at least three Business Days’ prior
written notice to the Agent, and

 

27

 

(iii)                               all such voluntary
partial prepayments shall be in an aggregate minimum amount of $5,000,000 and
an integral multiple of $1,000,000 or, if denominated in a Currency other than
Dollars, the Foreign Currency Equivalent thereof, rounded to the nearest one
million units of such Currency.

 

(b)                                 The
Borrower shall, on each date when any reduction in the Commitment Amount shall
become effective including pursuant to Section 2.2, make a
mandatory prepayment of Loans equal to the excess, if any, of the aggregate
outstanding principal amount of all Loans over the Commitment Amount as so
reduced.

 

(c)                                  The
Borrower shall, on each date when the making of any Competitive Bid Loans would
cause the aggregate outstanding principal amount of all Loans (determined, in
the case of Loans denominated in a currency other than Dollars, on the basis of
the Dollar Equivalent thereof) to exceed the Commitment Amount, make a
mandatory prepayment of, all Revolving Loans in a principal amount equal to
such excess.

 

(d)                                 The
Borrower shall have no right to prepay, in whole or in part, the outstanding
principal amount of any Competitive Bid Loan, unless the Lender that has made
such Competitive Bid Loan otherwise agrees in writing.

 

(e)                                  On
the date of the making of any Loan and on the date of a Continuation/Conversion
Notice with respect to any Loan or at any other time periodically, the Agent
shall determine that the aggregate principal amount of all Loans outstanding
(after converting all Loans denominated in Alternate Currencies or Non-Major
Alternate Currencies to their Dollar Equivalent on the date of calculation) is
greater than 105% of the Commitment Amount then in effect, the Borrower shall,
upon three Business Days, written notice from the Agent, prepay an aggregate
principal amount of such Loans denominated in Alternate Currencies or Non-Major
Alternate Currencies, as the case may be, such that the Dollar Equivalent of
the outstanding principal amount of such Loans, when added to the aggregate
principal amount of all Loans outstanding denominated in Dollars, does not
exceed the Commitment Amount.

 

(f)                                    Each
prepayment of any Loans made pursuant to this Section shall be without
premium or penalty, except as may be required by Section 4.4.  No voluntary prepayment of principal of any
Loans shall cause a reduction in the Commitment Amount.

 

SECTION
3.3.  Interest
Provisions.  Interest on the
outstanding principal amount of Loans shall accrue and be payable in accordance
with this Section 3.3.

 

SECTION
3.3.1.  Rates.  Pursuant to an appropriately delivered
Borrowing Request or Continuation/Conversion Notice, the Borrower may elect
that the Loans accrue interest at a rate per annum:

 

(a)                                  on
that portion maintained from time to time as Base Rate Loans, equal to the
Alternate Base Rate from time to time in effect;

 

28

 

(b)                                 on
that portion maintained as LIBO Rate Loans that are Revolving Loans, during each
Interest Period applicable thereto, equal to the sum of the LIBO Rate (Reserve
Adjusted) or the LIBO Alternate Rate, as the case may be, applicable to the
relevant Currency for such Interest Period plus the margin set forth below
opposite the Borrower’s Senior Debt Ratings in the following table:

 

	
  If the
  Borrower’s

  Senior Debt Ratings are

  	
   

  	
  The

  Applicable

  Margin is

  
	
  S&P

  	
   

  	
  Moody’s

  	
   

  
	
  A+ or above

  	
   

  	
  A1 or above

  	
   

  	
  15.50 b.p.

  
	
  A

  	
   

  	
  A2

  	
   

  	
  23.00  b.p.

  
	
  A-

  	
   

  	
  A3

  	
   

  	
  31.50  b.p.

  
	
  BBB+

  	
   

  	
  Baa1

  	
   

  	
  39.50  b.p.

  
	
  BBB

  	
   

  	
  Baa2

  	
   

  	
  50.00  b.p.

  
	
  BBB- or below

  	
   

  	
  Baa3 or below

  	
   

  	
  70.00  b.p.

  

 

If, during any Interest
Period, there is any change in such Senior Debt Ratings which would result in
an adjustment in the Applicable Margin, such adjustment shall be effective as
of the date on which such change occurs. 
For purposes of determining the Applicable Margin, if Moody’s and
S&P have split Senior Debt Ratings with a difference of only one rating
tier, the higher Senior Debt Rating shall be determinative and the lower Senior
Debt Rating shall be disregarded, and if Moody’s and S&P have split Senior
Debt Ratings with a difference of more than one rating tier, the debt rating
one rating tier below the higher Senior Debt Rating will be determinative and
both Senior Debt Ratings will be disregarded; and

 

(c)                                  from
(and including) the date any Competitive Bid Loan is made until the maturity
thereof, interest shall accrue on the outstanding principal amount of such
Competitive Bid Loan at a rate per annum equal to the Competitive Bid Rate
specified by the Lender making such Competitive Bid Loan in its Competitive Bid
Loan offer with respect thereto delivered pursuant to clause (d) of Section 2.3
above and accepted by the Borrower pursuant to clause (e) of Section 2.3;

 

provided,
however, that if the interest rate elected by the Borrower exceeds the
highest lawful rate, then the applicable interest rate per annum for any Loan
shall be the highest lawful rate.

 

The “LIBO Alternate Rate” means, with respect
to any Loan for which a Continuation/Conversion Notice has not been delivered
in accordance with Section 2.4 that is denominated in any
Alternate/Currency, relative to the interest period therefor selected by the
Agent in its sole discretion,

 

(a)                                  in
the case of Loans denominated in Sterling, the sum of

 

29

 

(i)                                     the
rate of interest equal to the average (rounded upwards, if necessary, to the
nearest 1/16 of 1%) of the rates per annum at which Sterling deposits in
immediately available funds are offered to each Reference Lender’s LIBOR Office
in the London interbank market as at or about 11:00 a.m. (London time) on the
first day of such interest period for delivery on the first day of such
interest period, and in an amount approximately equal to the relevant amount and
for a period approximately equal to such interest period;

 

plus

 

(ii)                                  Associated
Costs; and

 

(b)                                 in
the case of Loans denominated in Alternate currencies other than Sterling, the
rate of interest equal to the average (rounded upwards, if necessary, to the
nearest 1/16 of 1%) of the rates per annum at which the relevant Currency
deposits in immediately available funds are offered to each Reference Lender’s
LIBOR Office in the London interbank market as at or about 11:00 a.m. (London
time) two Business Days prior to the beginning of such interest period for
delivery on the first day of such interest period, and in an amount
approximately equal to the relevant amount and for a period approximately equal
to such interest period.

 

If the relevant amount is
all or part of a LIBO Rate Loan in an Alternate Currency which became due and
payable on a day other than the last day of the Interest Period relating
thereto, the first such interest period selected by the Agent shall be of a
duration equal to the unexpired portion of the such Interest Period.  The LIBO Alternate Rate for any interest
period for any Loan bearing interest at the LIBO Alternate Rate will be
determined by the Agent on the basis of information in effect on, and the
applicable rates furnished to and received by the Agent from the Reference
Lenders, (x) in the case of Sterling, on the first day of such interest period,
or (y) in the case of Alternate Currencies (other than Sterling), two Business
Days before the first day of such interest period, subject, however,
to the provisions of Section 3.3.4.  If for any such interest period selected by the Agent, adequate
means do not exist for the Reference Lenders to determine the LIBO Alternate
Rate for any Currency as set forth above, the LIBO Alternate Rate for such
Currency shall be determined by reference to the cost to each of the Reference
Lenders of obtaining deposits of such Currency from such sources as each such
Reference Lender may reasonably select. 
The Agent shall determine the LIBO Alternate Rate for each such interest
period (which determination shall be conclusive in the absence of manifest
error), and will promptly give notice to the Borrower and the Lenders thereof.

 

The “LIBO Rate (Reserve Adjusted)” means,
relative to any Loan to be made, continued or maintained as, or converted into,
a LIBO Rate Loan bearing interest at the LIBO Rate or the LIBO Alternate Rate,
as the case may be, for any Interest Period,

 

(a)                                  which
is denominated in Dollars, a rate per annum (rounded upwards, if necessary, to
the nearest 1/16 of 1%) determined pursuant to the following formula:

 

	
  LIBO Rate

  	
  =

  	
  LIBO Rate

  
	
  (Reserve Adjusted)

  	
   

  	
  1.00 - LIBOR
  Reserve Percentage

  

 

30

 

(b)                                 which
is denominated in Sterling, a rate per annum (rounded upwards, if necessary, to
the nearest 1/16 of 1%) determined pursuant to the following formula:

 

	
  LIBO Rate

  	
  =

  	
  LIBO

  	
  +

  	
  Associated Costs

  
	
  (Reserve Adjusted)

  	
   

  	
  Rate

  	
   

  	
   

  

 

(c)                                  which
is denominated in any other Alternate Currency, the relevant LIBO Rate or LIBO
Alternate Rate, as the case may be, plus any applicable reserve or other
funding costs incurred by the Lenders in making such Loan.

 

The LIBO Rate (Reserve Adjusted) for any Interest
Period for LIBO Rate Loans will be determined by the Agent on the basis of the
LIBOR Reserve Percentage in effect on, and the applicable rates furnished to
and received by the Agent from the Reference Lenders, two Business Days before
the first day of such Interest Period, subject, however, to the provisions of Section 3.3.4.

 

“LIBO Rate” means, relative to any Interest
Period,

 

(a)  with respect to LIBO Rate Loans denominated
in Dollars, the rate of interest equal to the average (rounded upwards, if
necessary, to the nearest 1/16 of 1%) of the rates per annum at which Dollar
deposits in immediately available funds are offered to each Reference Lender’s
LIBOR Office in the London interbank market as at or about 11:00 a.m. London
time two Business Days prior to the beginning of such Interest Period for
delivery on the first day of such Interest Period, and in an amount
approximately equal to the amount of each such Reference Lender’s LIBO Rate
Loan and for a period approximately equal to such Interest Period;

 

(b)  with respect to LIBO Rate Loans denominated
in any Alternate Currency, the rate of interest equal to the average (rounded
upwards, if necessary, to the nearest 1/10,000 of 1%) for the relevant
Alternate Currency for a period equal to such Interest Period which appears

 

(i)                                     with
respect to Sterling, on Telerate, Page 3750;

 

(ii)                                  with
respect to Euros, on Telerate Page 3750;

 

(iii)                               with
respect to Deutschemarks, on Telerate Page 3750; and

 

(iv)                              with
respect to Yen, on Telerate Page 3750;

 

as of 11:00 a.m. (London
time) (x) in the case of Sterling, on the first day of such Interest Period, or
(y) in the case of Alternate Currencies (other than Sterling), two Business
Days before the first day of such Interest Period, or, if fewer than two such
offered rates appear on the relevant Telerate Page, the rate of interest equal
to the average (rounded upwards, if necessary, to the nearest 1/10,000 of 1%)
of the rates per annum at which deposits in the relevant Alternate Currency in
immediately available funds are offered to each Reference Lender’s LIBOR Office
in the London interbank market as at or about 11:00 a.m. (London time) (x) in
the case of Sterling, on the first day of such Interest Period, or (y) in the
case of Alternate Currencies (other 

 

31

 

than Sterling), two Business
Days before the first day of such Interest Period for delivery on the first day
of such Interest Period, and in an amount approximately equal to the amount of
the Loans requested and for a period approximately equal to such Interest
Period.

 

“LIBOR Reserve Percentages” means, relative to
any Interest Period for LIBO Rate Loans, the reserve percentage (expressed as a
decimal) equal to the maximum aggregate reserve requirements (including all
basic, emergency, supplemental, marginal and other reserves and taking into
account any transitional adjustments or other scheduled changes in reserve
requirements) specified under regulations issued from time to time by the
F.R.S. Board and then applicable to assets or liabilities consisting of and
including “Eurocurrency Liabilities”, as currently defined in Regulation D of
the F.R.S. Board, having a term approximately equal or comparable to such
Interest Period.

 

All LIBO Rate Loans shall bear interest from and
including the first day of the applicable Interest Period to (but not
including) the last day of such Interest Period at the interest rate determined
as applicable to such LIBO Rate Loan.

 

SECTION
3.3.2.  Post-Maturity
Rates.  After the date any
principal amount of any Loan is due and payable (whether on the Maturity Date,
upon acceleration or otherwise), or after any other monetary Obligation shall
have become due and payable, the Borrower shall pay, but only to the extent
permitted by law, interest (after as well as before judgment) on such amounts
at a rate per annum equal to the Alternate Base Rate plus a margin of 2% for
Loans denominated in Dollars and, with respect to Loans denominated in an
Alternate Currency, at a rate per annum equal to the LIBO Rate or LIBO
Alternate Rate, as the case may be, in such Alternate Currency plus a margin of
2%.

 

SECTION
3.3.3.  Payment
Dates.  Interest accrued on each
Loan shall be payable, without duplication:

 

(a)                                  on
the Maturity Date;

 

(b)                                 on
the date of any payment or prepayment, in whole or in part, of principal outstanding
on such Loan;

 

(c)                                  on
each Competitive Bid Loan Maturity Date and, with respect to Competitive Bid
Loans with a Competitive Bid Loan Maturity Date in excess of three months, on
each three (and integral of three) month anniversary of the making of such
Loan;

 

(d)                                 with
respect to LIBO Rate Loans, on the last day of each applicable Interest Period
(and, if such Interest Period shall exceed three months, on each three (and
integral multiple of three) month anniversary of the making of such Loan);

 

(e)                                  with
respect to Base Rate Loans, on each Quarterly Payment Date;

 

(f)                                    with
respect to any Base Rate Loans converted into LIBO Rate Loans on a day when
interest would not otherwise have been payable pursuant to clause (e),
on the date of such conversion; and

 

32

 

(g)                                 on
that portion of any Loans the Maturity Date of which is accelerated pursuant to
Section 8.2 or Section 8.3, immediately upon such
acceleration.

 

Interest accrued on Loans
or other monetary Obligations arising under this Agreement or any other Loan
Document after the date such amount is due and payable (whether on the Maturity
Date, upon acceleration or otherwise) shall be payable upon demand.

 

SECTION
3.3.4.  Interest Rate Determination.  Each Reference Lender agrees to furnish to
the Agent timely information for the purpose of determining the LIBO Rate and
the LIBO Alternate Rate.  If any one or
more of the Reference Lenders shall fail timely to furnish such information to
the Agent, the Agent shall determine such interest rate on the basis of the
information furnished by the remaining Reference Lenders.  The Agent shall provide each Lender with the
LIBO Rate applicable to each LIBO Rate Loan within two Business Days prior to
the making of such LIBO Rate Loan.

 

SECTION
3.4.  Fees.  The Borrower agrees to pay the fees set
forth in this Section 3.4. 
All such fees shall be nonrefundable.

 

SECTION
3.4.1.  Facility
Fee.  The Borrower agrees to pay
to the Agent for the pro  rata account of each Lender, in
accordance with such Lender’s Percentage, an annual facility fee equal to the
Commitment Amount multiplied by the fee set forth below opposite the Borrower’s
Senior Debt Ratings during the quarter for which the fee is calculated (any
change in such Senior Debt Ratings to result in an adjustment in the applicable
facility fee, such adjustment to be effective as of the date on which such
change occurs):

 

	
  If the
  Borrower’s

  Senior Debt Ratings Are

  	
   

  	
  The
  Facility

  Fee Is

  
	
  S&P

  	
   

  	
  Moody’s

  	
   

  
	
  A+ or above

  	
   

  	
  A1 or above

  	
   

  	
  6.00 b.p.

  
	
  A

  	
   

  	
  A2

  	
   

  	
  7.00 b.p.

  
	
  A-

  	
   

  	
  A3

  	
   

  	
  8.50 b.p.

  
	
  BBB+

  	
   

  	
  Baa1

  	
   

  	
  10.50 b.p.

  
	
  BBB

  	
   

  	
  Baa2

  	
   

  	
  12.50 b.p.

  
	
  BBB- or below

  	
   

  	
  Baa3 or below

  	
   

  	
  17.50 b.p.

  

 

provided
that, for purposes of determining the facility fee, if Moody’s and S&P have
split Senior Debt Ratings with a difference of only one rating tier, the higher
Senior Debt Rating shall be determinative and the lower Senior Debt Rating
shall be disregarded, and provided, further, if Moody’s and
S&P have split Senior Debt Ratings with a difference of more than one rating
tier, the debt rating one rating tier below the higher Senior Debt Rating will
be determinative and both Senior Debt Ratings will be disregarded.

 

33

 

The facility fee payable under this Section shall
be based on (i) the Commitment Amount on the Effective Date, and (ii)
thereafter, the Commitment Amount on each anniversary of the Effective Date
(without giving effect, during the one-year period prior to each such
anniversary, to any reduction in the Commitment Amount), such fee to be payable
quarterly in arrears on each Quarterly Payment Date and on the Maturity Date,
and regardless of the amount of Loans outstanding under this Agreement; provided,
however, that in the event a Commitment Termination Event has occurred,
such that the Commitments of the Lenders hereunder are terminated, the Borrower
shall only be obligated to pay such facility fee to the extent that it has
accrued up to the date of such Commitment Termination Event.

 

SECTION
3.4.2.  Utilization
Fee.  The Borrower agrees to pay
to the Agent for the pro  rata account of each Lender, in
accordance with such Lender’s Loans, a utilization fee for each day from the
date hereof to and including the Maturity Date for each day that the aggregate
principal amount of Loans and Other Loans outstanding on the close of business
(if a Business Day) of such day is equal to or greater than 50% of the sum of
the Commitment Amount plus the “Commitment Amount” under the Other Credit
Agreement.  The utilization fee shall
accrue at all times, including at any time during which one or more of the
conditions in Article V is not met.  If applicable, such utilization fee shall be equal to the
aggregate principal amount of all Loans outstanding on the close of business (if
a Business Day) of such day multiplied by the Utilization Fee Rate set forth
below opposite the Borrower’s Senior Debt Ratings during the day for which the
fee is calculated (any change in such Senior Debt Ratings to result in an
adjustment in the applicable utilization fee, such adjustment to be effective
as of the date on which such change occurs), payable quarterly in arrears on
each Quarterly Payment Date and on the Maturity Date:

 

	
  If the
  Borrower’s

  Senior Debt Ratings Are

  	
   

  	
  Utilization
  Fee

  Rate

  
	
  S&P

  	
   

  	
  Moody’s

  	
   

  
	
  A+ or above

  	
   

  	
  A1 or above

  	
   

  	
  10.00 b.p.

  
	
  A

  	
   

  	
  A2

  	
   

  	
  10.00 b.p.

  
	
  A-

  	
   

  	
  A3

  	
   

  	
  10.00 b.p.

  
	
  BBB+

  	
   

  	
  Baa1

  	
   

  	
  12.50 b.p.

  
	
  BBB

  	
   

  	
  Baa2

  	
   

  	
  12.50 b.p.

  
	
  BBB- or below

  	
   

  	
  Baa3 or below

  	
   

  	
  12.50 b.p.

  

 

provided
that, for purposes of determining the utilization fee, if Moody’s and S&P
have split Senior Debt Ratings with a difference of only one rating tier, the
higher Senior Debt Rating shall be determinative and the lower Senior Debt
Rating shall be disregarded, and provided, further, if Moody’s
and S&P have split Senior Debt Ratings with a difference of more than one
rating tier, the debt rating one rating tier below the higher Senior Debt
Rating will be determinative and both Senior Debt Ratings will be disregarded.

 

34

 

SECTION
3.4.3.  Agents’
Fees.  The Borrower agrees to
pay to the Agents and the Lead Arrangers for their own accounts, fees in such
amounts and on such dates as are set forth in the Transaction Fee Letter.

 

ARTICLE IV

 

CERTAIN LIBO RATE
AND OTHER PROVISIONS

 

SECTION
4.1.  Fixed Rate Lending Unlawful.  If any Lender shall determine (which
determination shall, upon notice thereof to the Borrower and the Lenders, be
conclusive and binding on the Borrower) that the introduction of or any change
in or in the interpretation of any law makes it unlawful, or any central bank
or other governmental authority asserts that it is unlawful, for such Lender to
make, continue or maintain any Loan as, or to convert any Loan into, a LIBO
Rate Loan (or a Competitive Bid Loan based on the LIBO Rate Bid Margin), the
obligations of all Lenders to make, continue, maintain or convert any such
Loans shall, upon such determination, forthwith be suspended until such Lender
shall notify the Agent that the circumstances causing such suspension no longer
exist, and (a) all LIBO Rate Loans (and Competitive Bid Loans based on the LIBO
Rate Bid Margin) denominated in Dollars shall automatically convert into Base
Rate Loans at the end of the then current Interest Periods with respect thereto
or sooner, if required by such law or assertion; and (b) all LIBO Rate Loans
denominated in any Alternate Currency shall automatically become due and
payable at the end of the then current Interest Periods with respect thereto or
sooner, if required by applicable law.

 

SECTION
4.2.  Deposits
Unavailable.  If the Agent shall
have determined that

 

(a)                                  Dollar
deposits in the relevant amount and for the relevant Interest Period are not
available to the Reference Lenders (or, with respect to any Competitive Bid
Loan, by the Lender which made such Competitive Bid Loan) in their (or such
Competitive Bid Loan Lender’s) relevant market; or

 

(b)                                 by
reason of circumstances affecting the Reference Lenders, relevant market,
adequate means do not exist for ascertaining the interest rate applicable
hereunder to LIBO Rate Loans, then, upon notice from the Agent to the Borrower
and the Lenders, the obligations of all Lenders under clause (b) of Section 2.1
or clause (f) of Section 2.3 to make or continue any Loans
as, or to convert any Loans into, LIBO Rate Loans (or have such Competitive Bid
Loans bear interest based on the LIBO Rate Bid Margins) shall forthwith be
suspended until the Agent shall notify the Borrower and the Lenders that the
circumstances causing such suspension no longer exist.

 

SECTION
4.3.  Increased LIBO Rate Loan Costs, etc.  The Borrower agrees to reimburse each Lender
for any increase in the cost to such Lender of, or any reduction in the amount
of any sum receivable by such Lender in respect of, making, continuing or
maintaining (or of its obligation to make, continue or maintain) any Loans as,
or of converting (or of its obligation to convert) any Loans into, LIBO Rate
Loans, including, without limitation, by reason of any requirements imposed by
the Bank of England upon the making or funding of LIBO Rate Loans.  Such Lender shall promptly notify the Agent
and the Borrower in writing of the occurrence of any such event, such notice to
state, in reasonable detail, the reasons therefor and the additional 

 

35

 

amount required fully to
compensate such Lender for such increased cost or reduced amount.  Such additional amounts shall be payable by
the Borrower directly to such Lender within five days of its receipt of such
notice, and such notice shall, in the absence of manifest error, be conclusive
and binding on the Borrower.

 

SECTION
4.4.  Funding
Losses.  In the event any Lender
shall incur any loss or expense by reason of the liquidation or reemployment of
deposits or other funds acquired by such Lender to make, continue or maintain
any portion of the principal amount of any Loan as, or to convert any portion
of the principal amount of any Loan into, a LIBO Rate Loan as a result of (a)
any repayment or prepayment of the principal amount of any LIBO Rate Loans on a
date other than the scheduled last day of the Interest Period applicable
thereto, whether pursuant to Section 3.1, Section 3.2
or otherwise; (b) any Loans not being made as LIBO Rate Loans in accordance
with the Borrowing Request therefor; or (c) any Loans not being continued as,
or converted into LIBO Rate Loans in accordance with the
Continuation/Conversion Notice therefor then, upon the written notice of such
Lender to the Borrower (with a copy to the Agent), the Borrower shall, within
five days of its receipt thereof, pay directly to such Lender such amount as
will (in the reasonable determination of such Lender) reimburse such Lender for
such loss or expense.  Such written
notice (which shall include calculations in reasonable detail) shall, in the
absence of manifest error, be conclusive and binding on the Borrower.

 

SECTION
4.5.  Increased
Capital Costs.  If any change
in, or the introduction, adoption, effectiveness, interpretation,
reinterpretation or phase-in of, any law or regulation, directive, guideline,
decision or request (whether or not having the force of law) of any court,
central bank, regulator or other governmental authority after the date hereof
affects or would affect the amount of capital required or expected to be
maintained by any Lender, and such Lender determines (in its sole and absolute
discretion) that the rate of return on its capital as a consequence of its
Commitment or the Loans made by such Lender is reduced to a level below that
which such Lender could have achieved but for the occurrence of any such
circumstance, then, in any such case upon notice from time to time by such
Lender to the Borrower, the Borrower shall immediately pay directly to such
Lender additional amounts sufficient to compensate such Lender for such
reduction in rate of return.  A
statement of such Lender as to any such additional amount or amounts (including
calculations thereof in reasonable detail) shall, in the absence of manifest
error, be conclusive and binding on the Borrower.  In determining such amount, such Lender may use any method of
averaging and attribution that it (in its sole and absolute discretion) shall
deem applicable.

 

SECTION
4.6.  Taxes.  All payments by the Borrower of principal
of, and interest on, the Loans and all other amounts payable hereunder shall be
made free and clear of and without deduction for any present or future income,
excise, stamp or franchise taxes and other taxes, fees, duties, withholdings or
other charges of any nature whatsoever imposed by any taxing authority, but
excluding franchise taxes (in lieu of net income taxes) and taxes imposed on or
measured by any Lender’s net income or receipts (such nonexcluded items being
called “Taxes”).  In the event
that any withholding or deduction from any payment to be made by the Borrower
hereunder is required in respect of any Taxes pursuant to any applicable law,
rule or regulation, then the Borrower will

 

36

 

(a)                                  pay
directly to the relevant authority the full amount required to be so withheld
or deducted;

 

(b)                                 promptly
forward to the Agent an official receipt or other documentation satisfactory to
the Agent evidencing such payment to such authority; and

 

(c)                                  pay
to the Agent for the account of the Lenders such additional amount or amounts
as is necessary to ensure that the net amount actually received by each Lender
will equal the full amount such Lender would have received had no such
withholding or deduction been required.

 

Moreover, if any Taxes are directly asserted against
the Agent or any Lender with respect to any payment received by the Agent or
such Lender hereunder, the Agent or such Lender may pay such Taxes and the
Borrower will promptly pay such additional amounts (including any penalties,
interest or expenses) as is necessary in order that the net amount received by
such person after the payment of such Taxes (including any Taxes on such
additional amount) shall equal the amount such person would have received had
not such Taxes been asserted.

 

If the Borrower fails to pay any Taxes when due to the
appropriate taxing authority or fails to remit to the Agent, for the account of
the respective Lenders, the required receipts or other required documentary
evidence, the Borrower shall indemnify the Lenders for any incremental Taxes,
interest or penalties that may become payable by any Lender as a result of any
such failure.  For purposes of this Section 4.6,
a distribution hereunder by the Agent or any Lender to or for the account of
any Lender shall be deemed a payment by the Borrower.

 

Upon the request of the Borrower or the Agent, each
Lender and Assignee Lender that is organized under the laws of a, jurisdiction
other than the United States shall, on or prior to the date hereof (in the case
of each Lender that is a party hereto on the date hereof) or on or prior to the
date of any assignment hereunder (in the case of an Assignee Lender) and
thereafter as reasonably requested from time to time by the Borrower or Agent,
execute and deliver to the Borrower and the Agent, one or more (as the Borrower
or the Agent may reasonably request) United States Internal Revenue Service
Forms W-8EC or Forms W-8BEN or such other forms or documents (or successor
forms or documents), appropriately completed, as may be applicable to establish
the extent, if any, to which a payment to such Lender is exempt from, or
entitled to a reduced rate of, withholding or deduction of Taxes.

 

SECTION
4.7.  Payments,
Computations, etc.

 

(a)                                  Unless
otherwise expressly provided, all payments by the Borrower pursuant to this
Agreement, the Notes or any other Loan Document shall be made by the Borrower
to the Agent for the pro  rata account of the Lenders entitled to
receive such payment.

 

(b)                                 All
such payments required to be made to the Agent shall be made, without setoff,
deduction or counterclaim, by means of wire transfer to be initiated (i) in the
case of Loans denominated in Dollars, not later than 11:00 a.m. (New York City
time) and (ii) in the case of Loans denominated in a currency other than
Dollars, not later than the time reasonably specified by the Agent, in each
case on the date due, in same day or 

 

37

 

immediately
available funds, in the applicable currency, to such account as the Agent shall
specify from time to time by notice to the Borrower.  Funds for which the wire transfer was initiated after the times
specified in the preceding sentence shall be deemed to have been received by
the Agent on the next succeeding Business Day. 
The Agent shall promptly remit in same day funds, in the applicable
currency, to each Lender its share, if any, of such payments received by the
Agent for the account of such Lender.

 

(c)                                  Subject
to the calculation of interest provided in the definition of “Associated
Costs”, all interest and fees shall be computed on the basis of the actual
number of days (including the first day but excluding the last day) occurring
during the period for which such interest or fees is payable over a year
comprised of 360 days (or, in the case of interest on Base Rate Loans, 365 days
or, if appropriate, 366 days).  whenever
any payment to be made shall otherwise be due on a day which is not a Business
Day, such payment shall (except as otherwise required by clause (c) of
the definition of the term “Interest Period”) be made on the next
succeeding Business Day and such extension of time shall be included in
computing interest in connection with such payment.

 

(d)                                 Each
Lender will use its best efforts to notify the Borrower of any event that will
entitle such Lender to compensation or reimbursement (including on a
prospective basis) pursuant to Article IV hereof (including
pursuant to Sections 4.5 and 4.6), as promptly as practicable
after it obtains knowledge thereof, but the failure to give such notice shall
not impair the right of such Lender to receive compensation or reimbursement
under this Section.

 

(e)                                  Each
Lender shall determine the applicability of, and the amount due under, Article IV
hereof (including Sections 4.5 and 4.6) consistent with the
manner in which it applies similar provisions and calculates similar amounts
payable to it by other borrowers having in their credit agreements provisions
comparable to those contained in Article IV.

 

SECTION
4.8.  Sharing
of Payments.  If any Lender
shall obtain any payment or other recovery (whether voluntary, involuntary, by
application of setoff or otherwise) on account of any Loan (other than pursuant
to the terms of Sections 4.3, 4.4 and 4.5) in excess of
its pro  rata share of payments then or therewith obtained by all
Lenders, such Lender shall purchase from the other Lenders such participations
in Loans made by them as shall be necessary to cause such purchasing Lender to
share the excess payment or other recovery ratably with each of them; provided,
however, that if all or any portion of the excess payment or other
recovery is thereafter recovered from such purchasing Lender, the purchase
shall be rescinded and each Lender which has sold a participation to the
purchasing Lender shall repay to the purchasing Lender the purchase price to
the ratable extent of such recovery together with an amount equal to such
selling Lender’s ratable share (according to the proportion of

 

(a)                                  the
amount of such selling Lender’s required repayment to the purchasing Lender

 

to

 

38

 

(b)                                 the
total amount so recovered from the purchasing Lender) of any interest or other
amount paid or payable by the purchasing Lender in respect of the total amount
so recovered.  The Borrower agrees that
any Lender so purchasing a participation from another Lender pursuant to this
Section may, to the fullest extent permitted by law, exercise all its
rights of payment (including pursuant to Section 4.9) with respect
to such participation as fully as if such Lender were the direct creditor of
the Borrower in the amount of such participation.  If under any applicable bankruptcy, insolvency or other similar
law, any Lender receives a secured claim in lieu of a setoff to which this
Section applies, such Lender shall, to the extent practicable, exercise
its rights in respect of such secured claim in a manner consistent with the
rights of the Lenders entitled under this Section to share in the benefits
of any recovery on such secured claim.

 

SECTION
4.9.  Setoff.  Each Lender shall, upon the occurrence of
any Event of Default described in clauses (a) through (d) of Section 8.1.9
or, upon the occurrence of any other Event of Default, have the right to appropriate
and apply to the payment of the obligations owing to it (whether or not then
due) any and all balances, credits, deposits, accounts or moneys of the
Borrower then or thereafter maintained with such Lender or any Affiliate of
such Lender; provided,  however, that any such appropriation and
application shall be subject to the provisions of Section 4.8.  Each Lender agrees promptly to notify the
Borrower and the Agent after any such setoff and application made by such
Lender; provided,  however, that the failure to give such notice
shall not affect the validity of such setoff and application.  The rights of each Lender under this
Section are in addition to other rights and remedies (including other
rights of setoff under applicable law or otherwise) which such Lender may have.

 

SECTION
4.10.  Use of
Proceeds.  The Borrower shall
use the proceeds of the Loans to refinance existing indebtedness under the
Existing Credit Agreement, for general corporate purposes and for commercial
paper backup; without limiting the foregoing, no proceeds of any Loan will be
used to acquire any equity security of a Person as part of a hostile takeover.

 

ARTICLE V

 

CONDITIONS PRECEDENT

 

SECTION
5.1.  Conditions Precedent to the
Obligations of the Lenders. 
The obligations of the Lenders under this Agreement shall be subject to
the prior or concurrent satisfaction of each of the conditions precedent set
forth in this Section 5.1.

 

SECTION
5.1.1.  Resolutions,
etc.  The Agent shall have
received from the Borrower a certificate, dated the same date as this
Agreement, of its Secretary or Assistant Secretary as to

 

(a)                                  resolutions
of its Board of Directors then in full force and effect authorizing the
execution, delivery and performance of this Agreement, the Notes and each other
Loan Document to be executed by it,

 

(b)                                 the
incumbency and signatures of those of its officers authorized to act with
respect to this Agreement, the Notes and each other Loan Document executed by
it, upon which certificate each Lender may conclusively rely until it shall
have received a 

 

39

 

further
certificate of the Secretary of the Borrower canceling or amending such prior
certificate, and

 

(c)                                  true
and correct copies of the Organic Documents of the Borrower.

 

SECTION
5.1.2.  Officer’s
Certificate.  The Agent shall
have received a certificate, dated the date of this Agreement, signed by an
Authorized Officer of the Borrower certifying (a) that on such date (both
before and after giving effect to the making of any Loans hereunder on such
date) no Default or Event of Default has occurred and is continuing, (b) each
of the representations and warranties set forth in Article VI  of this Agreement is true and correct on and
as of such date and (c) that there has been no event or circumstance since
November 30, 2000 which has or could be reasonably expected to have a
Material Adverse Effect.

 

SECTION
5.1.3.  Closing Fees, Expenses, etc.  The Agent shall have received for its own
account, or for the account of each Lender, the Lead Arrangers and the other
Agents, as the case may be, all fees, costs and expenses due and payable
pursuant to Sections 3.4 and 10.3, if then invoiced.

 

SECTION
5.1.4.  Delivery of Financial Information.  The Agent shall have received, with copies
for each Lender, audited consolidated balance sheets of the Borrower and its
Subsidiaries as at November 30, 2000 and the related statements of
earnings and cash flow, and unaudited balance sheets of the Borrower and its
Subsidiaries as of the end of the Fiscal Quarter ending February 28, 2001
and consolidated statements of earnings and cash flow of the Borrower and its
Subsidiaries for such Fiscal Quarter, certified by an Authorized Officer of the
Borrower.

 

SECTION
5.1.5.  Delivery
of Notes.  The Agent shall have
received for the account of each Lender its Revolving Loan Note and its
Competitive Bid Loan Note duly executed and delivered by the Borrower with
respect to such Lender’s Commitment.

 

SECTION
5.1.6.  Termination of the Existing
Credit Agreement.  The
Agent shall have received satisfactory evidence that the Existing Credit
Agreement has been terminated and all Indebtedness, liabilities and obligations
outstanding thereunder has been paid in full.

 

SECTION
5.1.7.  Opinion
of Counsel.  The Agent shall
have received an opinion of Robert W. Skelton, General Counsel of the Borrower
or any Associate General Counsel of the Borrower, dated the date of this
Agreement and addressed to the Agent and all Lenders, substantially in the form
of Exhibit G hereto.

 

SECTION
5.2.  Conditions Precedent to Borrowings.  The obligation of each Lender to fund any
Loan on the occasion of any Borrowing (including the initial Borrowing) shall
be subject to the satisfaction of each of the conditions precedent set forth in
this Section 5.2.

 

SECTION
5.2.1.  Compliance with Warranties, No
Default, etc.  Both
before and after giving effect to any Borrowing, the following statements shall
be true and correct:

 

(a)                                  the
representations and warranties set forth in Article VI (other than
the representations and warranties set forth in Sections 6.6 and 6.7)
shall be true and correct with the same effect as if then made (unless stated
to relate solely to an earlier date, in 

 

40

 

which
case such representations and warranties shall be true and correct as of such
earlier date); and

 

(b)                                 no
Default or Event of Default shall have then occurred and be continuing.

 

SECTION
5.2.2.  Borrowing
Request.  The Agent shall have
received a Revolving Loan Borrowing Request or a Competitive Bid Loan Borrowing
Request (as the case may be) for such Borrowing.  Each of the delivery of a Borrowing Request and the acceptance by
the Borrower of the proceeds of such Borrowing shall constitute a representation
and warranty by the Borrower that on the date of such Borrowing (both
immediately before and after giving effect to such Borrowing and the
application of the proceeds thereof) the statements made in Section 5.2.1
are true and correct.

 

SECTION
5.2.3.  Satisfactory
Legal Form.  All documents
executed or submitted pursuant hereto by or on behalf of the Borrower shall be
reasonably satisfactory in form and substance to the Agent and its counsel (and
the execution of this Agreement by the Agent shall be deemed to evidence such
satisfaction); the Agent and its counsel shall have received all
non-confidential information, approvals, opinions, documents or instruments as
the Agent or its counsel may reasonably request.

 

ARTICLE VI

 

REPRESENTATIONS
AND WARRANTIES

 

In order to induce the Lenders and the Agents to enter
into this Agreement and to make Loans hereunder, the Borrower represents and
warrants as follows as of the Effective Date, and thereafter, as of the date of
each Borrowing to the extent set forth in clause (a) of Section 5.2.1.

 

SECTION
6.1.  Organization,
etc.  The Borrower and each of
its Subsidiaries is a corporation, partnership or limited liability company
duly organized or formed, validly existing and in good standing under the laws
of the State of its incorporation or organization, is duly qualified to do
business and is in good standing in each jurisdiction where the nature of its
business requires such qualification, except where the failure to so qualify
will not have a Material Adverse Effect, and has full power and authority and
holds all requisite governmental licenses, permits and other approvals to enter
into and perform its Obligations under this Agreement, the Notes and each other
Loan Document to which it is a party and to own or hold under lease its
property and to conduct its business substantially as currently conducted by
it.

 

SECTION
6.2.  Due Authorization,
Non-Contravention etc.  The
execution, delivery and performance by the Borrower of this Agreement, the
Notes and each other Loan Document executed or to be executed by it, are within
the Borrower’s corporate powers, have been duly authorized by all necessary
corporate action, and do not

 

(a)                                  contravene
the Borrower’s Organic Documents;

 

(b)                                 contravene
any contractual restriction, law or governmental regulation or court decree or
order binding on or affecting the Borrower and its Subsidiaries; or

 

41

 

(c)                                  result
in, or require the creation or imposition of, any Lien on any of the Borrower’s
properties.

 

SECTION
6.3.  Government Approval Regulation, etc.  No authorization or approval or other action
by, and no notice to or filing with, any governmental authority or regulatory
body or other Person is required for the due execution, delivery or performance
by the Borrower of this Agreement, the Notes or any other Loan Document.  Neither the Borrower nor any of its
Subsidiaries is an “investment company” within the meaning of the Investment
Company Act of 1940, as amended, or 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.

 

SECTION
6.4.  Validity,
etc.  This Agreement
constitutes, and the Notes and each other Loan Document executed by the
Borrower will, on the due execution and delivery thereof, constitute, the
legal, valid and binding obligations of the Borrower enforceable in accordance
with their respective terms, subject to the effect of bankruptcy insolvency,
reorganization, moratorium or similar laws affecting the enforceability of
creditors’ rights generally and by general principles of equity.

 

SECTION
6.5.  Financial
Information.  The consolidated
balance sheets of the Borrower and its Subsidiaries as at November 30,
2000, and the related consolidated statements of earnings and cash flow of the
Borrower and its Subsidiaries, copies of which have been furnished to the Agent
and each Lender, have been prepared in accordance with GAAP consistently
applied, and present fairly in all material respects the consolidated financial
condition of the Borrower and its Subsidiaries as at the dates thereof and the
results of their operations for the periods then ended.

 

SECTION
6.6.  No
Material Adverse Change.  Since
the date of the financial statements described in Section 6.5
(except to the extent the information disclosed therein is modified or
superseded, as the case may be, by information in the Borrower’s quarterly
report on Form 10-Q for the quarter ended February 28, 2001) there has
been no material adverse change in the financial condition, operations, assets,
business or properties of the Borrower and its Subsidiaries taken as a whole.

 

SECTION
6.7.  Litigation, Labor Controversies, etc.  There is no pending or, to the knowledge of
the Borrower, threatened litigation, action, proceeding, or labor controversy
affecting the Borrower or any of its Subsidiaries, or any of their respective
properties, businesses, assets or revenues, which will result in a Material
Adverse Effect or which purports to affect the legality, validity or
enforceability of this Agreement, the Notes or any other Loan Document, except
as disclosed in Item 6.7 (“Litigation”) of the Disclosure Schedule.

 

SECTION
6.8.  Subsidiaries.  The Borrower has no Subsidiaries, except
those Subsidiaries

 

(a)                                  which
are identified in Item 6.8 (“Existing Subsidiaries as of the Effective
Date”) of the Disclosure Schedule; or

 

(b)                                 which
are hereafter acquired or formed.

 

42

 

It being understood that Subsidiaries may merge,
consolidate, liquidate and sell assets as permitted pursuant to Section 7.2.4.

 

SECTION
6.9.  Ownership
of Properties.  The Borrower and
each of its Subsidiaries has good and marketable title to all of its tangible
properties and assets, real and personal, of any nature whatsoever, free and
clear of all Liens, charges or claims except as permitted pursuant to Section 7.2.3
or Liens, charges or claims that will not have a Material Adverse Effect; and
the Borrower has duly registered in the U.S. all trademarks required for the
conduct of its business in the U.S., other than those as to which the lack of
protection, or failure to register, would not have a Material Adverse Effect.

 

SECTION 6.10.  Taxes.  The Borrower and each of its Subsidiaries has filed all federal
and all other material income tax returns and reports required by law to have
been filed by it and has paid all taxes and governmental charges thereby shown
to be owing, except any such taxes or charges which are being diligently
contested in good faith by appropriate proceedings and for which adequate
reserves in accordance with GAAP shall have been set aside on its books.

 

SECTION
6.11.  Pension
and Welfare Plans.  During the
twelve-consecutive-month period ending immediately prior to the date of the
execution and delivery of this Agreement, no Pension Plan has been terminated,
or has been subject to the commencement of any termination, that could
reasonably be expected to have a Material Adverse Effect, and no contribution
failure has occurred with respect to any Pension Plan sufficient to give rise
to a Lien under section 302(f) of ERISA. 
No condition exists or event or transaction has occurred with respect to
any Pension Plan which might result in the incurrence by the Borrower or any
member of the Controlled Group of any liability, fine or penalty which is
likely to have a Material Adverse Effect. 
Except for the post-retirement benefits described in Item 6.11
(“Employee Benefit Plans”) of the Disclosure Schedule, the Borrower has no
contingent liability with respect to post-retirement benefits provided by the
Borrower and its Subsidiaries under a Welfare Plan, other than (i) liability
for continuation coverage described in Part 6 of Subtitle B of Title I of ERISA
and (ii) liabilities which will not, individually or in the aggregate, have a
Material Adverse Effect.

 

SECTION
6.12.  Environmental Warranties.  Except as set forth in Item 6.12
(“Environmental Matters”) of the Disclosure Schedule:

 

(a)                                  all
facilities and property (including underlying groundwater) owned or leased by
the Borrower or any of its Subsidiaries have been, and continue to be, owned or
leased by the Borrower and its Subsidiaries in compliance with all
Environmental Laws, except for such non-compliance which, singly or in the
aggregate, will not have a Material Adverse Effect;

 

(b)                                 there
have been no past unresolved, and there are no pending or threatened (in
writing)

 

(i)                                     claims,
complaints, notices or requests for information received by the Borrower or any
of its Subsidiaries with respect to any alleged violation of any Environmental
Law, or

 

43

 

(ii)                                  complaints,
written notices or inquiries to the Borrower or any of its Subsidiaries
regarding potential liability under any Environmental Law,

 

which violation or
potential liability singly or in the aggregate will have a Material Adverse
Effect;

 

(c)                                  there
have been no Releases of Hazardous Materials at, on or under any property now
or to the Borrower’s knowledge previously owned or leased by the Borrower or
any of its Subsidiaries that, singly or in the aggregate, have, or will have a
Material Adverse Effect;

 

(d)                                 the
Borrower and its Subsidiaries have been issued and are in compliance with all
permits, certificates, approvals, licenses and other authorizations relating to
environmental matters and necessary for their businesses, except for such
permits, approvals, licenses and other authorizations which, if not obtained by
the Borrower, or as to which the Borrower is not in compliance (in each case
singly or in the aggregate), will not have a Material Adverse Effect;

 

(e)                                  no
property now or, to the Borrower’s knowledge, previously owned or leased by the
Borrower or any of its Subsidiaries is listed or with the knowledge of the
Borrower, proposed for listing (with respect to owned property only) on (i) the
CERCLIS or on any similar state list of sites requiring investigation or
clean-up or (ii) the National Priorities List pursuant to CERCLA; other than
properties as to which any such listing will not result in a Material Adverse
Effect;

 

(f)                                    there
are no underground storage tanks, active or abandoned, including petroleum
storage tanks, on or under any property now or, to the Borrower’s knowledge,
previously owned or leased by the Borrower or any of its Subsidiaries that,
singly or in the aggregate, have, or will have, a Material Adverse Effect;

 

(g)                                 to
the Borrower’s knowledge, neither Borrower nor any Subsidiary of the Borrower
has directly transported or directly arranged for the transportation of any
Hazardous Material to any location which is listed or, with the knowledge of
the Borrower, proposed for listing, on the National Priorities List pursuant to
CERCLA, on the CERCLIS or on any similar state list or which is the subject of
federal, state or local enforcement actions or other investigations which will
lead to claims against the Borrower or such Subsidiary thereof for any remedial
work, damage to natural resources or personal injury, including claims under
CERCLA, which will have a Material Adverse Effect; and

 

(h)                                 there
are no polychlorinated biphenyls or friable asbestos present at any property
owned or leased by the Borrower or any Subsidiary of the Borrower that, singly
or in the aggregate, have, or will have, a Material Adverse Effect.

 

SECTION 6.13.  Regulations U
and X.  No proceeds of any Loans
will be used for a purpose which violates, or would be inconsistent with,
F.R.S.  Board Regulation U or X.  The Borrower is not engaged in the business
of extending credit for the purpose of purchasing or carrying margin stock, and
not more than 25% of the consolidated assets of the Borrower and its

 

44

 

Subsidiaries consists of margin stock.  Terms for which meanings are provided in
F.R.S.  Board Regulation U or X or any
regulations substituted therefor, as from time to time in effect, are used in
this Section with such meanings.

 

SECTION 6.14.  Accuracy
of Information.  Neither this
Agreement nor any other document, certificate or statement furnished to the
Agent or any Lender by or on behalf of the Borrower in connection herewith
contains any untrue statement of a material fact or omits to state a material
fact necessary in order to make the statements contained herein and therein not
misleading, in light of the circumstances under which they were made.

 

SECTION 6.15.  Compliance
with Law; Absence of Default. 
The Borrower and its Subsidiaries are in compliance with all Applicable
Laws the noncompliance with which would have a Material Adverse Effect and with
all of the material provisions of their respective Organic Documents, and no
event has occurred or has failed to occur which has not been remedies or
waived, the occurrence or non-occurrence of which constitutes (i) a Default or
Event of Default or (ii) a default by the Borrower or one of its Subsidiaries
under any other material indenture, agreement or other instrument, or any
judgment, decree, or order to which the Borrower or such Subsidiary is a party
or by which the Borrower or such Subsidiary or any of their respective
properties may be bound, which would have a Material Adverse Effect.

 

ARTICLE VII

COVENANTS

 

SECTION 7.1.  Affirmative
Covenants.  The Borrower agrees
with the Agents and each Lender that, until all Obligations have been paid and
performed in full, the Borrower will perform the obligations set forth in this Section 7.1.

 

SECTION 7.1.1.  Financial
Information Reports, Notices, etc.  The Borrower will furnish, or will cause to be furnished, to each
Lender and the Agent copies of the following financial statements, reports,
notices and information:

 

(a)                                  as
soon as available and in any event within 60 days after the end of each of the
first three Fiscal Quarters of each Fiscal Year of the Borrower, a consolidated
balance sheet of the Borrower and its Subsidiaries as of the end of such Fiscal
Quarter and consolidated statements of earnings and cash flow of the Borrower
and its Subsidiaries for such Fiscal Quarter and for the period commencing at
the end of the previous Fiscal Year and ending with the end of such Fiscal
Quarter, certified by an Authorized Officer of the Borrower, it being understood
and agreed that the delivery of the Borrower’s Form 10-Q (as filed with the
Securities and Exchange Commission) shall satisfy the requirements set forth in
this clause);

 

(b)                                 as
soon as available and in any event within 120 days after the end of each Fiscal
Year of the Borrower, a copy of the annual audit report for such Fiscal Year
for the Borrower and its Subsidiaries, including therein a consolidated balance
sheet of the Borrower and its Subsidiaries as of the end of such Fiscal Year
and consolidated statements of earnings and cash flow of the Borrower and its
Subsidiaries for such Fiscal

 

45

 

Year, in each case
certified (without any Impermissible Qualification) in a manner acceptable to
the Agent and the Required Lenders by Ernst & Young or other independent
public accountants reasonably acceptable to the Agent and the Required Lenders
(it being understood and agreed that the delivery of the Borrower’s Form 10-K
(as filed with the Securities and Exchange Commission) shall satisfy such
delivery requirement in this clause), together with a certificate from an
Authorized Officer of the Borrower containing a computation in reasonable
detail of, and showing compliance with, each of the financial ratios and
restrictions contained in Sections 7.2.2, 7.2.3, 7.2.4 and
7.2.5 and to the effect that, in making the examination necessary for
the signing of such certificate, he has not become aware of any Default or
Event of Default that has occurred and is continuing, or, if he has become
aware of such Default or Event of Default, describing such Default or Event of
Default and the steps, if any, being taken to cure it;

 

(c)                                  as
soon as available and in any event within 60 days after the end of each Fiscal
Quarter, a Compliance Certificate, executed by the Treasurer or an Authorized
Officer of the Borrower, showing (in reasonable detail and with appropriate
calculations and computations in all respects satisfactory to the Agent)
compliance with the financial covenants set forth in Sections 7.2.2, 7.2.3,
7.2.4 and 7.2.5 and representing as to the absence of any
Default;

 

(d)                                 as
soon as possible and in any event within three Business Days upon any officer
or director of the Borrower becoming aware of the occurrence of each Default or
Event of Default, a statement of the Treasurer or the chief financial
Authorized Officer of the Borrower setting forth details of such Default or
Event of Default and the action which the Borrower has taken and proposes to
take with respect thereto;

 

(e)                                  as
soon as possible and in any event within five Business Days after (x) the
occurrence of any adverse development with respect to any litigation, action,
proceeding, or labor controversy described in Section 6.7 which
will result in or is likely to result in a Material Adverse Effect or (y) the
commencement of any labor controversy, litigation, action, proceeding of the
type described in Section 6.7, notice thereof and copies of all
documentation relating thereto;

 

(f)                                    promptly
after the sending or filing thereof, copies of all reports which the Borrower
sends to any of its security holders, and all reports and registration
statements (other than on Form S-8 or any successor form) which the Borrower or
any of its Subsidiaries files with the Securities and Exchange Commission or
any national securities exchange;

 

(g)                                 immediately
upon becoming aware of the taking of any specific actions by the Borrower or
any other Person to terminate any Pension Plan (other than a termination
pursuant to Section 4041(b) of ERISA which can be completed without the
Borrower or any Controlled Group member having to provide more than $3,000,000
in addition to the normal contribution required for the plan year in which
termination occurs to make such Pension Plan sufficient), or the failure to
make a required contribution to any Pension Plan if such failure is sufficient
to give rise to a Lien under section 302(f) of ERISA, or

 

46

 

the taking of any
action with respect to a Pension Plan which would likely result in the
requirement that the Borrower furnish a bond or other security to the PBGC or
such Pension Plan, or the occurrence of any event with respect to any Pension
Plan which would likely result in the incurrence by the Borrower of any
liability, fine or penalty which will have a Material Adverse Effect, or any
increase in the contingent liability of the Borrower with respect to any
post-retirement Welfare Plan benefit if the increase in such contingent
liability will result in a Material Adverse Effect, notice thereof and copies
of all documentation relating thereto;

 

(h)                                 immediately
upon becoming aware of any change in Borrower’s Senior Debt Rating, a statement
describing such change, whether such change was made by S&P, Moody’s or
both and the effective date of such change; and

 

(i)                                     such
other non-confidential information respecting the condition or operations,
financial or otherwise, of the Borrower or any of its Subsidiaries as any
Lender through the Agent may from time to time reasonably request.

 

SECTION
7.1.2.  Compliance
with Laws, etc.  The Borrower
will, and will cause each of its Subsidiaries to, comply in all respects with
all Applicable Laws, except where such non-compliance would not have a Material
Adverse Effect, such compliance to include (without limitation):

 

(a)                                  preserve,
renew and maintain in full force and effect its legal existence and good
standing under the Applicable Laws of the jurisdiction of its organization and
each jurisdiction where its conduct of business requires qualification or good
standing (except any Subsidiary may merge, consolidate or liquidate as
permitted pursuant to Section 7.2.4), and

 

(b)                                 the
payment, before the same become delinquent, of all taxes, assessments and
governmental charges imposed upon it or upon its property except to the extent
being diligently contested in good faith by appropriate proceedings and for
which adequate reserves in accordance with GAAP shall have been set aside on
its books.

 

SECTION
7.1.3.  Maintenance of Properties.  The Borrower will, and will cause each of
its Subsidiaries to, maintain, preserve, protect and keep its material
properties in good repair, working order and condition, and make necessary and
proper repairs, renewals and replacements so that its business carried on in
connection therewith may be properly conducted at all times unless the Borrower
determines in good faith that the continued maintenance of any of its
properties is no longer economically desirable.

 

SECTION
7.1.4.  Insurance.  The Borrower will, and will cause each of
its Subsidiaries to, maintain or cause to be maintained with responsible
insurance companies insurance with respect to its properties material to the
business of the Borrower and its Subsidiaries against such casualties and
contingencies and of such types and in such amounts as is customary in the case
of similar businesses and will, upon request of the Agent, furnish to each
Lender at reasonable intervals a certificate of an Authorized Officer of the
Borrower setting forth the nature and extent of all insurance maintained by the
Borrower and its Subsidiaries in accordance with this Section,

 

47

 

provided, that the Borrower and its
Subsidiaries may self-insure to the extent customary for similarly situated
corporations engaged in the same or similar business.

 

SECTION
7.1.5.  Books
and Records.  The Borrower will,
and will cause each of its Subsidiaries to, keep books and records which
accurately reflect all of its business affairs and material transactions and
permit the Agent and each Lender or any of their respective representatives, at
reasonable times and intervals, to visit all of its offices, to discuss its
non-confidential financial matters with its officers and independent public
accountant and, upon the reasonable request of the Agent or a Lender, to
examine (and, at the expense of the Lenders, photocopy extracts from) any of
its non-confidential books or other corporate records.

 

SECTION
7.1.6.  Environmental
Covenant.  The Borrower will,
and will cause each of its Subsidiaries to,

 

(a)                                  use
and operate all of its facilities and properties in compliance with all
Environmental Laws except for such non-compliance which, singly or in the
aggregate, will not have a Material Adverse Effect, keep all necessary permits,
approvals, certificates, licenses and other authorizations relating to
environmental matters in effect and remain in compliance therewith, except
where the failure to keep such permits, approvals, certificates, licenses or
other authorizations, or any non-compliance with the provisions thereof will
not have a Material Adverse Effect, and handle all Hazardous Materials in
compliance with all applicable Environmental Laws, except for any non-compliance
that will not have a Material Adverse Effect;

 

(b)                                 immediately
notify the Agent and provide copies upon receipt of all written inquiries from
any local, state or federal governmental agency, claims, complaints or notices
relating to the condition of its facilities and properties or compliance with
Environmental Laws which will have a Material Adverse Effect, and shall
promptly cure and have dismissed with prejudice or contest in good faith any
actions and proceedings relating to material compliance with Environmental Laws
the result of which, if not contested by the Borrower, would have a Material
Adverse Effect; and

 

(c)                                  provide
such non-confidential information and certifications which the Agent may
reasonably request from time to time to evidence compliance with this Section 7.1.6.

 

SECTION 7.2.  Negative
Covenants.  The Borrower agrees
with the Agents and each Lender that, until all Obligations have been paid and
performed in full, the Borrower will perform the obligations set forth in this Section 7.2.

 

SECTION
7.2.1.  Transactions with Affiliates.  The Borrower will not, and will not permit
any of its Subsidiaries to, enter into, or cause, suffer or permit to exist any
material arrangement or contract with any of its other Affiliates (other than
other Subsidiaries) unless such arrangement or contract is fair and equitable
to the Borrower or such Subsidiary based upon the good faith judgment of the
Borrower’s Board of Directors.

 

SECTION
7.2.2.  Indebtedness.  The Borrower will not permit any of its
Subsidiaries to create, incur, assume or suffer to exist or otherwise become or
be liable in respect of any

 

48

 

Indebtedness if, after giving effect to the incurrence
of any such Indebtedness, the aggregate outstanding amount of Indebtedness of
all Subsidiaries would exceed 25% of Consolidated Net Tangible Assets.

 

SECTION
7.2.3.  Liens.  The Borrower will not, and will not permit
any of its Subsidiaries to, create, incur, assume or suffer to exist any Lien
upon any of its property, revenues or assets, whether now owned or hereafter
acquired, except:

 

(a)                                  Liens
securing payment of Indebtedness permitted under Section 7.2.2;

 

(b)                                 Liens
granted prior to the Effective Date which are identified in Item 7.2.3
(“Existing Liens”) of the Disclosure Schedule;

 

(c)                                  any
Lien existing on the assets of any Person at the time it becomes a Subsidiary
(and not created, assumed or incurred by such Person in contemplation of such
event);

 

(d)                                 Liens
for taxes, assessments or other governmental charges or levies not at the time
delinquent or thereafter payable without penalty or being diligently contested
in good faith by appropriate proceedings and for which adequate reserves in
accordance with GAAP shall have been set aside on its books;

 

(e)                                  Liens
of carriers, warehousemen, mechanics, materialmen and landlords incurred in the
ordinary course of business for sums not overdue or being diligently contested
in good faith by appropriate proceedings and for which adequate reserves in
accordance with GAAP shall have been set aside on its books;

 

(f)                                    Liens
incurred in the ordinary course of business in connection with workmen’s
compensation, unemployment insurance or other forms of governmental insurance
or benefits, or to secure performance of tenders, statutory obligations, leases
and contracts (other than for borrowed money) entered into in the ordinary
course of business or to secure obligations on surety or appeal bonds;

 

(g)                                 judgment
Liens in existence less than 30 days after the entry thereof or with respect to
which execution has been stayed or the payment of which is covered in full
(subject to a customary deductible) by insurance maintained with responsible
insurance companies;

 

(h)                                 other
Liens incidental to the conduct of the Borrower’s or any of its Subsidiaries’
businesses (including without limitation, Liens on goods securing trade letters
of credit issued in respect of the importation of goods in the ordinary course
of business, or the ownership of any of the Borrower’s or any Subsidiary’s
property and assets which were not incurred in connection with the borrowing of
money or the obtaining of advances or credit and which do not in the aggregate
materially detract from the value of the Borrower’s or any of its Subsidiaries’
property or assets or materially impair the use thereof in the operation of
Borrower’s or any of its Subsidiaries’ businesses);

 

49

 

(i)                                     Liens
in favor of the Borrower on assets of its Subsidiaries, and Liens in favor of
Subsidiaries of the Borrower on assets of the Borrower;

 

(j)                                     Liens
securing industrial development or pollution control bonds so long as such
Liens attach solely to the property acquired, constructed or improved with the
proceeds of such bonds; and

 

(k)                                  any
Lien not otherwise permitted by this Section 7.2.3 securing
Indebtedness, provided  that, immediately after giving effect
thereto (and to the incurrence of such Indebtedness secured thereby), the sum
of (without duplication and excluding any Indebtedness payable to the Borrower
or a Subsidiary) (i) the aggregate outstanding amount of Indebtedness of the
Borrower and its Subsidiaries secured by all Liens described in clauses (b),
(c) and (k) of this Section 7.2.3 (excluding any such
Liens described in clauses (d) through (j) of this Section 7.2.3)
and (ii) the Attributable Value of all Sale-Leaseback Transactions entered into
by the Borrower and its Subsidiaries in the aggregate does not exceed 15% of
Consolidated Net Tangible Assets.

 

SECTION 7.2.4.  Mergers,
Asset Dispositions, etc.  The
Borrower will not, nor will it permit any of its Subsidiaries to, liquidate,
dissolve or enter into any consolidation, merger, joint venture or any other
combination or sell, lease, assign, transfer or otherwise dispose of any assets
or stock, whether now owned or hereafter acquired, in a single transaction or
in a series of transactions other than:

 

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

 

(b)                                 the
merger or consolidation of any Subsidiary with or into the Borrower or a
wholly-owned Subsidiary;

 

(c)                                  the
merger or consolidation of any other Person with or into the Borrower or any
Subsidiary, so long as, after giving effect thereto, (i) the Borrower or its
Subsidiary, as the case may be, is the surviving entity and (ii) no Default or
Event of Default would exist;

 

(d)                                 sales
of assets or stock by the Borrower or a Subsidiary to a wholly-owned Subsidiary
or the Borrower; and

 

(e)                                  (i)
sales of assets or stock to any other Person or (ii) liquidations of Subsidiaries
(other than a Principal Subsidiary) if, after giving effect thereto, the
aggregate book value of such assets or stock disposed of or liquidated does
not, during the most recent period of 12 consecutive months, exceed 20% of
Consolidated Net Tangible Assets as at the end of the Borrower’s immediately
preceding Fiscal Year; and

 

(f)                                    joint
ventures between Subsidiaries, between one or more Subsidiaries and the
Borrower, between the Borrower and other Persons and between Subsidiaries and
other Persons.

 

SECTION
7.2.5.  EBIT to Interest Expense Ratio.  The Borrower will not permit the ratio of
EBIT to Interest Expense to be less than 2.5:1.00.  For purposes of calculating such ratio, the

 

50

 

items included therein shall be measured on a
consolidated basis for the Borrower and its Subsidiaries for the four full
Fiscal Quarters immediately preceding the date of calculation.

 

ARTICLE VIII

EVENTS OF DEFAULT

 

SECTION 8.1.  Listing
of Events of Default.  Each of
the following events or occurrences described in this Section 8.1
shall constitute an “Event of Default”.

 

SECTION
8.1.1.  Non-Payment of Obligations.  The Borrower shall default in the payment
when due of any principal of any Loan, or the Borrower shall default (and such
default shall continue unremedied for a period of three Business Days) in the
payment when due of any interest on any Loan, or the Borrower shall default
after notice (including, without limitation, notice delivered by way of
submission of a detailed invoice) (and such default shall continue unremedied
for a period of five days) in the payment when due of any fee described in Section 3.4
or of any other Obligation, including, without limitation, fees described in
the Transaction Fee Letter.

 

SECTION
8.1.2.  Breach
of Warranty.  Any representation
or warranty of the Borrower made or deemed to be made hereunder or in any other
Loan Document or any other writing or certificate furnished by or on behalf of
the Borrower to the Agent or any Lender for the purposes of or in connection
with this Agreement or any such other Loan Document (including any certificates
delivered pursuant to Article V) is or shall be incorrect when made
in any material respect.

 

SECTION
8.1.3.  Non-Performance of Certain
Covenants and Obligations. 
The Borrower shall default in the due performance and observance of any
of its obligations under clause (a) of Section 7.1.2 (with
respect to the maintenance and preservation of the Borrower’s corporate
existence) or under Section 7.1.6, or the Borrower shall default in
the due performance and observance of its obligations under Section 7.2,
and such default (if capable of being remedied within such period) shall not be
remedied within five Business Days after any officer of the Borrower obtains
actual knowledge thereof.

 

SECTION
8.1.4.  Non-Performance of Other Covenants
and Obligations.  The
Borrower shall default in the due performance and observance of any other
agreement contained herein or in any other Loan Document, and such default
shall continue unremedied for a period of 30 days after notice thereof shall
have been given to the Borrower by the Agent or any Lender.

 

SECTION
8.1.5.  Default on Other Indebtedness.  A default shall occur in the payment when
due (subject to any applicable grace period), whether by acceleration or
otherwise, of any Indebtedness (other than Indebtedness described in Section 8.1.1)
of the Borrower or any of its Subsidiaries having a principal amount,
individually or in the aggregate, in excess of $15,000,000, or a default shall
occur in the performance or observance of any obligation or condition with
respect to such Indebtedness (whether or not waived) if the effect of such
default is to accelerate the maturity of any such Indebtedness or such default
(whether or not waived) shall continue unremedied for any applicable period of
time sufficient to permit the holder or

 

51

 

holders of such Indebtedness, or any trustee or agent
for such holders, to cause such Indebtedness to become due and payable prior to
its expressed maturity.

 

SECTION
8.1.6.  Judgments.  Any judgment or order for the payment of
money in excess of $15,000,000 shall be rendered against the Borrower or any of
its Subsidiaries and either

 

(a)                                  enforcement
proceedings shall have been commenced by any creditor upon such judgment or
order; or

 

(b)                                 there
shall be any period of 30 consecutive days during which a stay of enforcement
of such judgment or order, by reason of a pending appeal or otherwise, shall
not be in effect.

 

SECTION
8.1.7.  Pension
Plans.  Any of the following
events shall occur with respect to any Pension Plan

 

(a)                                  the
institution of any steps by the Borrower, any member of its Controlled Group or
any other Person to terminate a Pension Plan if, as a result of such
termination, the Borrower or any such member could reasonably be required to
make a contribution to such Pension Plan, or could reasonably expect to incur a
liability or obligation to such Pension Plan, in excess of $5,000,000; or

 

(b)                                 a
contribution failure occurs with respect to any Pension Plan sufficient to give
rise to a Lien under Section 302(f) of ERISA which is not cured within 20
days from the date such contribution was due.

 

SECTION
8.1.8.  Control
of the Borrower.  Any Change in
Control shall occur.

 

SECTION
8.1.9.  Bankruptcy, Insolvency, etc.  The Borrower or any of its Subsidiaries that
are Principal Subsidiaries shall

 

(a)                                  become
insolvent or generally fail to pay, or admit in writing its inability to pay,
debts as they become due;

 

(b)                                 apply
for, consent to, or acquiesce in, the appointment of a trustee, receiver,
sequestrator or other custodian for the Borrower or any of such Subsidiaries or
a substantial part of any property of any thereof, or make a general assignment
for the benefit of creditors;

 

(c)                                  in
the absence of such application, consent or acquiescence, permit or suffer to
exist the appointment of a trustee, receiver, sequestrator or other custodian
for the Borrower or any of such Subsidiaries or for a substantial part of the
property of any thereof, and such trustee, receiver, sequestrator or other
custodian shall not be discharged within 60 days,  provided that the Borrower and each such Subsidiary hereby
expressly authorizes the Agent and each Lender to appear in any court
conducting any relevant proceeding during such 60-day period to preserve,
protect and defend their rights under the Loan Documents;

 

52

 

(d)                                 permit
or suffer to exist the commencement of any bankruptcy, reorganization, debt
arrangement or other case or proceeding under any bankruptcy or insolvency law,
or any dissolution, winding up or liquidation proceeding, in respect of the
Borrower or any of such Subsidiaries, and, if any such case or proceeding is
not commenced by the Borrower or such Subsidiary, such case or proceeding shall
be consented to or acquiesced in by the Borrower or such Subsidiary or shall
result in the entry of an order for relief or shall remain for 60 days
undismissed, provided that the Borrower and each such Subsidiary hereby
expressly authorizes the Agent and each Lender to appear in any court
conducting any such case or proceeding during such 60-day period to preserve,
protect and defend their rights under the Loan Documents; or

 

(e)                                  take
any corporate action authorizing, or in furtherance of, any of the foregoing.

 

SECTION 8.2.  Action if
Bankruptcy.  If any Event of
Default described in clauses (a) through (e) of Section 8.1.9
shall occur, the Commitments (if not theretofore terminated) shall
automatically terminate and the outstanding principal amount of all outstanding
Loans and all other Obligations shall automatically be and become immediately
due and payable, without notice or demand.

 

SECTION 8.3.  Action
if Other Event of Default.  If
any Event of Default (other than any Event of Default described in clauses
(a) through (e) of Section 8.1.9) shall occur for any
reason, whether voluntary or involuntary, and be continuing, the Agent, upon
the direction of the Required Lenders, shall by notice to the Borrower declare
all or any portion of the outstanding principal amount of the Loans and other
Obligations to be due and payable and/or the Commitments (if not theretofore
terminated) to be terminated, whereupon the full unpaid amount of such Loans
and other Obligations which shall be so declared due and payable shall be and
become immediately due and payable, without further notice, demand or
presentment and/or, as the case may be, the Commitments shall terminate.

 

ARTICLE IX

THE AGENT

 

SECTION 9.1.  Appointment;
Powers and Immunities.  Each
Lender hereby irrevocably appoints and authorizes the Agent to act as its Agent
hereunder and under the other Loan Documents with such powers as are
specifically delegated to the Agent by the terms hereof and thereof, together
with such other powers as are reasonably incidental thereto.  The Agent: 
(a) shall have no duties or responsibilities except as expressly
set forth in this Agreement and the other Loan Documents, and shall not by
reason of this Agreement or any other Loan Document be a trustee for any
Lender; (b) makes no warranty or representation to any Lender and shall
not be responsible to the Lenders for any recitals, statements, representations
or warranties contained in this Agreement or any other Loan Document, or in any
certificate or other document referred to or provided for in, or received by
any Lender under, this Agreement or any other Loan Document, or for the
validity, effectiveness, genuineness, enforceability or sufficiency of this
Agreement or any other Loan Document or any other document referred to or
provided for herein or therein or for any failure by the Borrower to perform
any of its obligations hereunder or

 

53

 

thereunder; (c) shall not be required to initiate
or conduct any litigation or collection proceedings hereunder or under any
other Loan Document except to the extent requested by the Required Lenders, and
then only on terms and conditions satisfactory to the Agent, and (d) shall
not be responsible for any action taken or omitted to be taken by it hereunder
or under any other Loan Document or any other document or instrument referred
to or provided for herein or therein or in connection herewith or therewith,
except for its own gross negligence or willful misconduct.  The Agent may employ agents and
attorneys-in-fact and shall not be responsible for the negligence or misconduct
of any such agents or attorneys-in-fact selected by it with reasonable
care.  The provisions of this Article IX
are solely for the benefit of the Agent and the Lenders, and the Borrower shall
not have any rights as a third party beneficiary of any of the provisions
hereof.  In performing its functions and
duties under this Agreement and under the other Loan Documents, the Agent shall
act solely as Agent of the Lenders and does not assume and shall not be deemed
to have assumed any obligation towards or relationship of agency or trust with
or for the Borrower.  The duties of the
Agent shall be ministerial and administrative in nature, and the Agent shall
not have by reason of this Agreement or any other Loan Document a fiduciary
relationship in respect of any Lender.

 

SECTION 9.2.  Reliance by
Agent.  The Agent shall be
entitled to rely upon any certification, notice or other communication
(including any thereof by telephone, telecopier, telegram or cable) believed by
it to be genuine and correct and to have been signed or sent by or on behalf of
the proper Person or Persons, and upon advice and statements of legal counsel,
independent accountants or other experts selected by the Agent.  As to any matters not expressly provided for
by this Agreement or any other Loan Document, the Agent shall in all cases be
fully protected in acting, or in refraining from acting, hereunder and
thereunder in accordance with instructions signed by the Required Lenders, and
such instructions of the Required Lenders in any action taken or failure to act
pursuant thereto shall be binding on all of the Lenders.

 

SECTION 9.3.  Defaults.  The Agent shall not be deemed to have
knowledge of the occurrence of a Default or an Event of Default (other than the
nonpayment of principal of or interest on the Loans) unless the Agent has
received notice from a Lender or the Borrower specifying such Default or Event
of Default and stating that such notice is a “Notice of Default”.  In the event that the Agent receives such a
notice of the occurrence of a Default or an Event of Default, the Agent shall
give prompt notice thereof to the Lenders. 
The Agent shall (subject to Section 10.1) take such action
hereunder with respect to such Default or Event of Default as shall be directed
by the Required Lenders, provided that, unless and until the Agent shall
have received such directions, the 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 interests of
the Lenders.

 

SECTION 9.4.  Rights
of Agent and its Affiliates as a Lender.  With respect to its Commitment and the Loans
made by it and any of its Affiliates, Wachovia, N.A. (and any successor acting
as Agent hereunder) in its capacity as a Lender hereunder and any Affiliate of
Wachovia, N.A. 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 the Agent, and the term “Lender” or “Lenders” shall, unless
the context otherwise indicates, include Wachovia, N.A. in its individual
capacity and any Affiliate of the Agent in its individual capacity.  Wachovia, N.A. (and any successor acting as
Agent hereunder) and any Affiliate

 

54

 

thereof may (without having to account therefor to any
Lender) accept deposits from, lend money to and generally engage in any kind of
banking, trust or other business with the Borrower (and any of the Borrower’s
Affiliates) as if it were not acting as the Agent, and Wachovia, N.A. and any
Affiliate thereof may accept fees and other consideration from the Borrower or
any Subsidiary or Affiliate thereof for services in connection with this
Agreement or any other Loan Document or otherwise without having to account for
the same to the Lenders.

 

SECTION 9.5.  Indemnification.  Each Lender severally agrees to indemnify
the Agent, to the extent the Agent shall not have been reimbursed by the
Borrower, ratably in accordance with its Commitment, for any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses (including, without limitation, counsel fees and disbursements) or
disbursements of any kind and nature whatsoever which may be imposed on,
incurred by or asserted against the Agent in any way relating to or arising out
of this Agreement or any other Loan Document or any other documents
contemplated by or referred to herein or therein or the transactions
contemplated hereby or thereby (including, without limitation, the costs and
expenses that the Borrower is obligated to pay under Section 10.3
or any amount the Borrower is obligated to pay under Section 10.4,
but excluding the normal administrative costs and expenses incident to the
performance of its agency duties hereunder) or the enforcement of any of the
terms hereof or thereof or any such other documents; provided that no
Lender shall be liable for any of the foregoing to the extent they arise from
the gross negligence or willful misconduct of the Agent.  If any indemnity furnished to the Agent for
any purpose shall, in the opinion of the Agent, be insufficient or become
impaired, the Agent may call for additional indemnity and cease, or not
commence, to do the acts indemnified against until such additional indemnity is
furnished.

 

SECTION 9.6.  Consequential
Damages.  THE AGENT SHALL NOT BE
RESPONSIBLE OR LIABLE TO ANY LENDER, THE BORROWER OR ANY OTHER PERSON OR ENTITY
FOR ANY PUNITIVE, EXEMPLARY OR CONSEQUENTIAL DAMAGES WHICH MAY BE ALLEGED
AS A RESULT OF THIS AGREEMENT, THE OTHER LOAN DOCUMENTS OR ANY OF THE
TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

 

SECTION 9.7.  Registered Holder of Loan Treated
as Owner.  The Agent may
deem and treat each Person in whose name a Loan is registered as the owner
thereof for all purposes hereof unless and until a written notice of the
assignment or transfer thereof shall have been filed with the Agent and the
provisions of Section 10.11.1 have been satisfied.  Any requests, authority or consent of any
Person who at the time of making such request or giving such authority or
consent is the holder of any Note shall be conclusive and binding on any
subsequent holder, transferee or assignee of that Note or of any Note or Notes
issued in exchange therefor or replacement thereof.

 

SECTION 9.8.  Nonreliance
on Agent and Other Lenders. 
Each Lender agrees that it has, independently and without reliance on
the Agent or any other Lender, and based on such documents and information as
it has deemed appropriate, made its own credit analysis of the Borrower and
decision to enter into this Agreement and that it will, independently and
without reliance upon the Agent or any other Lender, and based on such
documents and information as it shall deem appropriate at the time, continue to
make its own analysis and decisions in taking or

 

55

 

not taking action under this Agreement or any of the
other Loan Documents.  The Agent shall
not be required to keep itself (or any Lender) informed as to the performance
or observance by the Borrower of this Agreement or any of the other Loan
Documents or any other document referred to or provided for herein or therein
or to inspect the properties or books of the Borrower or any other Person.  Except for notices, reports and other
documents and information expressly required to be furnished to the Lenders by
the Agent hereunder or under the other Loan Documents, the Agent shall not have
any duty or responsibility to provide any Lender with any credit or other
information concerning the affairs, financial condition or business of the
Borrower or any other Person (or any of their Affiliates) which may come into
the possession of the Agent or any of its Affiliates.

 

SECTION 9.9.  Failure to Act.  Except for action expressly required of the
Agent hereunder or under the other Loan Documents, the Agent shall in all cases
be fully justified in failing or refusing to act hereunder and thereunder
unless it shall receive further assurances to its satisfaction by the Lenders
of their indemnification obligations under Section 9.5 against any
and all liability and expense which may be incurred by the Agent by reason of
taking, continuing to take, or failing to take any such action.

 

SECTION 9.10.  Successor Agent.  The Agent may resign at any time by giving
notice thereof to the Lenders and the Borrower.  Upon any such resignation, the Required Lenders shall have the
right to appoint a successor Agent.  If
no successor Agent shall have been so appointed by the Required Lenders and
shall have accepted such appointment within 30 days after the retiring Agent’s
notice of resignation, then the retiring Agent may, on behalf of the Lenders,
appoint a successor Agent.  Any
successor Agent shall be a bank or other financial institution which has a
combined capital and surplus of at least $500,000,000.  Upon the acceptance of any appointment as
Agent hereunder by a successor Agent, such successor Agent shall thereupon
succeed to and become vested with all the rights, powers, privileges and duties
of the retiring Agent, and the retiring Agent shall be discharged from its
duties and obligations hereunder.  After
any retiring Agent’s resignation hereunder as Agent, the provisions of this Article IX
shall continue in effect for its benefit in respect of any actions taken or
omitted to be taken by it while it was acting as the Agent hereunder.

 

SECTION 9.11.  Other Agents.  Bank of America, N.A. is hereby appointed
Documentation Agent of the Lenders hereunder and under each Loan Document.  SunTrust Bank is hereby appointed
Syndication Agent of the Lenders hereunder and under each Loan Document.  Bank of America, N.A. shall not have any
duties, responsibilities or liabilities in its capacity as Documentation Agent.  SunTrust Bank shall not have any duties,
responsibilities or liabilities in its capacity as Syndication Agent.

 

ARTICLE X

MISCELLANEOUS PROVISIONS

 

SECTION 10.1.  Waivers,
Amendments, etc.  The provisions
of this Agreement and of each other Loan Document may from time to time be
amended, modified or waived, if such amendment, modification or waiver is in
writing and consented to by the Borrower and the

 

56

 

Required Lenders; provided,  however,
that no such amendment, modification or waiver which would:

 

(a)                                  modify
any requirement hereunder that any particular action be taken by all the
Lenders or by the Required Lenders shall be effective unless consented to by
each Lender;

 

(b)                                 modify
this Section 10.1, change the definition of “Required Lenders”,
increase the Percentage or Commitment of any Lender, reduce any fees described
in Article III, or extend the Maturity Date shall be made without
the consent of each Lender and each holder of a Note (except for any change
resulting from Section 2.8);

 

(c)                                  extend
the due date for, or reduce the amount of, any scheduled repayment of principal
of or payment of interest on any Loan or fees owed hereunder (or reduce the
principal amount of or rate of interest on any Loan or the fees owed hereunder)
shall be made without the consent of the holder of that Note evidencing such
Loan or owed such fees (except for any change resulting from Section 2.8);
or

 

(d)                                 affect
adversely the interests, rights or obligations of the Agent qua the
Agent shall be made without consent of the Agent.

 

No failure or delay on
the part of the Agent, any Lender or the holder of any Note in exercising any
power or right under this Agreement or any other Loan Document shall operate as
a waiver thereof, nor shall any single or partial exercise of any such power or
right preclude any other or further exercise thereof or the exercise of any
other power or right.  No notice to or
demand on the Borrower in any case shall entitle it to any notice or demand in
similar or other circumstances.  No waiver
or approval by the Agent, any Lender or the holder of any Note under this
Agreement or any other Loan Document shall, except as may be otherwise stated
in such waiver or approval, be applicable to subsequent transactions.  No waiver or approval hereunder shall
require any similar or dissimilar waiver or approval thereafter to be granted
hereunder.

 

SECTION 10.2.  Notices.  All notices and other communications
provided to any party hereto under this Agreement or any other Loan Document
shall be in writing or by facsimile and addressed, delivered or transmitted to
such party at its address or facsimile number set forth below its signature
hereto or set forth in the Lender Assignment Agreement or at such other address
or facsimile number as may be designated by such party in a notice to the other
parties.  Any notice, if mailed and
properly addressed with postage prepaid or if properly addressed and sent by
pre-paid courier service, shall be deemed given when received; any notice, if
transmitted by facsimile, shall be deemed given when transmitted.

 

SECTION 10.3.  Payment
of Costs and Expenses.  The
Borrower agrees to pay on demand all reasonable expenses of the Agents and the
Lead Arrangers (including the reasonable fees, internal charges and
out-of-pocket expenses of counsel to the Agents and the Lead Arrangers, which
attorneys may be employees of the Agents or Lead Arrangers, and of local
counsel, if any, who may be retained by counsel to the Agents and the Lead
Arrangers) in connection with

 

57

 

(a)                                  the
negotiation, preparation, syndication, due diligence, execution and delivery of
this Agreement and of each other Loan Document, including schedules and
exhibits, and any amendments, waivers, consents, supplements or other
modifications to this Agreement or any other Loan Document as may from time to
time hereafter be required, whether or not the transactions contemplated hereby
are consummated, and

 

(b)                                 the
preparation and review of the form of any document or instrument relevant to
this Agreement or any other Loan Document;

 

provided,
however, that the Borrower shall not be obligated to pay for expenses
incurred by the Agent or a Lender in connection with the assignment of Loans to
an Assignee Lender pursuant to Section 10.11.1 or the sale of Loans
to a Participant pursuant to Section 10.11.2, and the Borrower
shall only be obligated to pay to the Agent an amount equal to $100 (unless
otherwise agreed to by the Agent), multiplied by the then existing number of Lenders,
in respect of each Competitive Bid Loan Request submitted by the Borrower
(payable on the date of submission of such request).

 

The Borrower further
agrees to pay, and to save the Agents and the Lenders harmless from all
liability for, any stamp or other taxes which may be payable in connection with
the execution or delivery of this Agreement, the borrowings hereunder, or the
issuance of the Notes or any other Loan Documents.  The Borrower also agrees to reimburse the Agents and each Lender
upon demand for all reasonable out-of-pocket expenses (including attorneys’
fees and legal expenses, and the allocated costs of staff counsel) incurred by
the Agents or such Lender in connection with (x) the negotiation of any
restructuring or “work-out”, whether or not consummated, of any Obligations and
(y) the enforcement of any Obligations.

 

SECTION 10.4.  Indemnification.  In consideration of the execution and
delivery of this Agreement by each Lender and the extension of Commitments, the
Borrower hereby indemnifies, exonerates and holds the Agents, the Lead
Arrangers and each Lender and each of their respective officers, directors,
employees and agents (collectively, the “Indemnified Parties”) free and
harmless from and against any and all actions, causes of action, suits, losses,
costs, liabilities and damages, and expenses incurred in connection therewith
(irrespective of whether any such Indemnified Party is a party to the action
for which indemnification hereunder is sought), including reasonable attorneys’
fees and disbursements (collectively, the “Indemnified Liabilities”) ,
incurred by the Indemnified Parties or any of them as a result of, or arising
out of, or relating to

 

(a)                                  any
transaction financed or to be financed in whole or in part, directly or indirectly,
with the proceeds of any Loan;

 

(b)                                 the
entering into and performance of this Agreement and any other Loan Document by
any of the Indemnified Parties;

 

(c)                                  any
investigation, litigation or proceeding related to any acquisition or proposed
acquisition by the Borrower or any of its Subsidiaries of all or any portion of
the stock or assets of any Person, whether or not the Agents, the Lead
Arrangers or such Lender is party thereto;

 

58

 

(d)                                 any
investigation, litigation or proceeding related to any environmental cleanup,
audit, compliance or other matter relating to the protection of the environment
or the Release by the Borrower or any of its Subsidiaries of any Hazardous
Material; or

 

(e)                                  the
presence on or under, or the escape, seepage, leakage, spillage, discharge,
emission, discharging or releases from, any real property owned or operated by
the Borrower or any Subsidiary thereof of any Hazardous Material (including any
losses, liabilities, damages, injuries, costs, expenses or claims asserted or
arising under any Environmental Law), regardless of whether caused by, or
within the control of, the Borrower or such Subsidiary,

 

except for any such
Indemnified Liabilities arising by reason of the relevant Indemnified Party’s
gross negligence or willful misconduct. 
If and to the extent that the foregoing undertaking may be unenforceable
for any reason, the Borrower hereby agrees to make the maximum contribution to
the payment and satisfaction of each of the Indemnified Liabilities which is
permissible under applicable law.

 

SECTION 10.5.  Survival.  The obligations of the Borrower under Sections
4.3, 4.4, 4.5, 4.6, 10.3 and 10.4, and
the obligations of the Lenders under Section 9.1, shall in each
case survive any termination of this Agreement and the payment in full of all
Obligations and the termination of all Commitments.  The representations and warranties made by the Borrower in this
Agreement and in each other Loan Document shall survive the execution and
delivery of this Agreement and each such other Loan Document.

 

SECTION 10.6.  Severability.  Any provision of this Agreement or any other
Loan Document which is prohibited or unenforceable in any jurisdiction shall,
as to such provision and such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining
provisions of this Agreement or such Loan Document or affecting the validity or
enforceability of such provision in any other jurisdiction.

 

SECTION 10.7.  Headings.  The various headings of this Agreement and
of each other Loan Document are inserted for convenience only and shall not
affect the meaning or interpretation of this Agreement or such other Loan
Document or any provisions hereof or thereof.

 

SECTION 10.8.  Execution in Counterparts,
Effectiveness, etc.  This
Agreement may be executed by the parties hereto in several counterparts, each
of which shall be executed by the Borrower and the Agent and shall be deemed to
be an original and all of which shall constitute together but one and the same
Agreement.  This Agreement shall become
effective when counterparts hereof executed on behalf of the Borrower and each
Lender (or notice thereof satisfactory to the Agent) shall have been received
by the Agent and notice thereof shall have been given by the Agent to the
Borrower and each Lender.

 

SECTION 10.9.  Governing
Law; Entire Agreement.  THIS
AGREEMENT, THE NOTES AND EACH OTHER LOAN DOCUMENT SHALL EACH BE DEEMED TO BE A
CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK.  This Agreement, the Notes and the other Loan
Documents

 

59

 

constitute the entire understanding among the parties
hereto with respect to the subject matter hereof and supersede any prior
agreements, written or oral, with respect thereto.

 

SECTION
10.10.  Successors
and Assigns.  This Agreement
shall be binding upon and shall inure to the benefit of the parties hereto and
their respective successors and assigns; provided,  however, that:

 

(a)                                  the
Borrower may not assign or transfer its rights or obligations hereunder without
the prior written consent of the Agent and all Lenders; and

 

(b)                                 the
rights of sale, assignment and transfer of the Lenders are subject to Section 10.11.

 

SECTION
10.11.  Sale and Transfer of Loans and Note;
Participations in Loans and Note.  Each Lender may assign, or sell participations in, its Loans and
Commitments to one or more other Persons in accordance with this Section 10.11.

 

SECTION
10.11.1.  Assignments.  Any Lender,

 

(a)                                  with
the written consent of the Borrower and the Agent (which consent shall not be
unreasonably delayed or withheld, and which consent, in the case of the
Borrower, shall be deemed to have been given if the Borrower fails to deliver a
written notice to the Agent on or before the tenth Business Day after receipt
by the Borrower of the Agent’s request for consent, stating, in reasonable
detail, the reasons why the Borrower proposes to withhold such consent) may at
any time assign and delegate to other commercial banks, other financial
institutions or Approved Funds its Loans and Commitments hereunder; provided,
however, that if an Event of Default has occurred and is continuing, the
consent of the Borrower shall not be required; and

 

(b)                                 with
notice to the Borrower and the Agent, but without the consent of the Borrower
or the Agent, may assign and delegate to any of its Affiliates or to any other
Lender or its Affiliates all or any portion of its Loans and Commitments
hereunder;

 

(each Person described in
either of the foregoing clauses as being the Person to whom such assignment and
delegation is to be made, being hereinafter referred to as an “Assignee
Lender”), in a minimum aggregate amount of $10,000,000 (or such lesser
amount as may be agreed to by the Borrower and the Agent, at their option) in
the case of clause (a) above, and all of the Loans and Commitments of
such Assignee Lender in the case of clause (b) above; provided,  however,
that any such Assignee Lender will comply, if applicable, with the provisions
contained in the last sentence of Section 4.6 and further, provided,
however, that, the Borrower and the Agent shall be entitled to continue
to deal solely and directly with such Lender in connection with the interests
so assigned and delegated to an Assignee Lender until:

 

(i)                                     written
notice of such assignment and delegation, together with payment instructions,
addresses and related information with respect to such Assignee Lender, shall
have been given to the Borrower and the Agent by such Lender and such Assignee
Lender;

 

60

 

(ii)                                  such
Assignee Lender shall have executed and delivered to the Borrower and the Agent
a Lender Assignment Agreement, accepted by the Agent; and

 

(iii)                               the processing fees
described below shall have been paid.

 

From and after the date that the Agent accepts such
Lender Assignment Agreement, (x) the Assignee Lender thereunder shall be deemed
automatically to have become a party hereto and to the extent that rights and
obligations hereunder have been assigned and delegated to such Assignee Lender
in connection with such Lender Assignment Agreement, shall have the rights and
obligations of a Lender hereunder and under the other Loan Documents, and (y)
the assignor Lender, to the extent that rights and obligations hereunder have
been assigned and delegated by it in connection with such Lender Assignment
Agreement, shall be released from its obligations hereunder and under the other
Loan Documents but shall continue to be entitled to the benefits of the
indemnity provisions hereunder for the period prior to such assignment.  Within five Business Days after its receipt
of notice that the Agent has received an executed Lender Assignment Agreement,
the Borrower shall execute and deliver to the Agent (for delivery to the
relevant Assignee Lender) a new Note evidencing such Assignee Lender’s assigned
Loans and Commitments, and, if the assignor Lender has retained Loans and a
Commitment hereunder, a replacement Note in the principal amount of the Loans
and Commitment retained by the assignor Lender hereunder (such Note to be in
exchange for, but not in payment of, that Note then held by such assignor
Lender).  Each such Note shall be dated
the date of the predecessor Note.  The
assignor Lender shall mark the predecessor Note “exchanged” and deliver it to
the Borrower.  Accrued interest on that
part of the predecessor Note evidenced by the new Note, and accrued fees, shall
be paid as provided in the Lender Assignment Agreement.  Accrued interest on that part of the
predecessor Note evidenced by the replacement Note shall be paid to the
assignor Lender.  Accrued interest and
accrued fees shall be paid at the same time or times provided in the predecessor
Note and in this Agreement.  Such
assignor Lender or such Assignee Lender must also pay a processing fee to the
Agent upon delivery of any Lender Assignment Agreement in the amount of $3,500
(provided,  however, that such processing fee shall not be required
to be paid by a Lender in the case of an assignment of such Lender’s Loans and
Commitments to an Affiliate or Subsidiary of such Lender).  Any attempted assignment and delegation not
made in accordance with this Section 10.11.1 shall be null and
void.  Notwithstanding anything to the
contrary set forth above, any Lender may (without requesting the consent of the
Borrower or the Agent) pledge its Loans to a Federal Reserve Bank in accordance
with applicable regulations. 
Notwithstanding anything to the contrary contained herein, any Lender (a
“Granting Lender”) may grant to a special purpose funding vehicle (an “SPC”),
identified as such in writing from time to time by the Granting Lender to the
Agent and the Borrower, the option to provide to the Borrower all or any part
of any Loan that such Granting Lender would otherwise be obligated to make to
the Borrower pursuant to this Agreement; provided that (i) nothing
herein shall constitute a commitment by any SPC to make any Loan, (ii) if an
SPC elects not to exercise such option or otherwise fails to provide all or any
part of such Loan, the Granting Lender shall be obligated to make such Loan
pursuant to the terms hereof.  The
making of a Loan by an SPC hereunder shall utilize the Commitment of the
Granting Lender to the same extent, and as if, such Loan were made by such
Granting Lender.  Each party hereto
hereby agrees that no SPC shall be liable for any indemnity or similar payment
obligation under this Agreement (all liability for which shall remain with the
Granting Lender).  In furtherance of the
foregoing, each party

 

61

 

hereto hereby agrees (which agreement shall survive the termination of
this Agreement) that, prior to the date that is one year and one day after the
payment in full of all outstanding commercial paper or other senior
indebtedness of any SPC, it will not institute against, or join any other
person in instituting against, such SPC any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings under the laws of the United
States or any State thereof.  In
addition, notwithstanding anything to the contrary contained in Section 10.1.1,
any SPC may (i) with notice to, but without the prior written consent of, the
Borrower and the Agent and without paying any processing fee therefor, assign
all or a portion of its interests in any Loans to the Granting Lender or to any
financial institutions (consented to by the Borrower and Agent) providing
liquidity and/or credit support to or for the account of such SPC to support
the funding or maintenance of Loans and (ii) disclose on a confidential basis
any non-public information relating to its Loans to any rating agency,
commercial paper dealer or provider of any surety, guarantee or credit or
liquidity enhancement to such SPC.  This
section may not be amended without the written consent of each Granting
Lender, all or any of whose Loans are being funded by an SPC at the time of
such amendment.  It is understood and
acknowledged that the Granting Lender shall for all purposes, including,
without limitation, the approval of any amendment or waiver of any provision of
any Loan Document or the obligation to pay any amount otherwise payable by the
Granting Lender under the Loan Documents, continue to be the Lender of record
hereunder.

 

As used herein, (i) the term “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 any entity that
administers or manages a Lender and (ii) the term “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.

 

SECTION
10.11.2.  Participations.  Any Lender may at any time sell to one or
more commercial banks or other Persons (each of such commercial banks and other
Persons being herein called a “Participant”) participating interests in
any of the Loans, its Commitment, or other interests of such Lender hereunder; provided,
however, that

 

(a)                                  no
participation contemplated in this Section 10.11 shall relieve such
Lender from its Commitment or its other obligations hereunder or under any
other Loan Document;

 

(b)                                 such
Lender shall remain solely responsible for the performance of its Commitment
and such other obligations;

 

(c)                                  the
Borrower and the Agent shall continue to deal solely and directly with such
Lender in connection with such Lender’s rights and obligations under this
Agreement and each of the other Loan Documents;

 

(d)                                 no
Participant, unless such Participant is an Affiliate of such Lender, or is
itself a Lender, shall be entitled to require such Lender to take or refrain
from taking any action hereunder or under any other Loan Document, except that
such Lender may agree

 

62

 

with any
Participant that such Lender will not, without such Participant’s consent, take
any actions of the type described in clause (b) or (c) of Section 10.1;
and

 

(e)                                  the
Borrower shall not be required to pay any amounts to a Lender under Sections
4.3, 4.4, 4.5, 4.6, 4.8, 4.9, 10.3
and 10.4 or otherwise, that are greater than the amounts which it would
have been required to pay to such Lender had no participating interest been
sold.

 

SECTION
10.12.  Other
Transactions.  Nothing contained
herein shall preclude the Agent or any other Lender from engaging in any
transaction, in addition to those contemplated by this Agreement or any other
Loan Document, with the Borrower or any of its Affiliates in which the Borrower
or such Affiliate is not restricted hereby from engaging with any other Person.

 

SECTION
10.13.  Removal and Replacement of Lenders.

 

(a)                                  Under
any circumstances set forth herein providing that the Borrower shall have the
right to remove or replace a Lender as a party to this Agreement, the Borrower
may, upon notice to such Lender and the Agent, (i) remove such Lender by
terminating such Lender’s Commitment or (ii) replace such Lender by causing
such Lender to assign its Commitment (without payment of any assignment fee)
pursuant to Section 10.11.1 to one or more other Lenders,
commercial banks, other financial institutions or Approved Funds procured by
the Borrower.  The Borrower shall (x)
pay in full all principal, interest, fees and other amounts owing to such
Lender through the date of removal or replacement (including any amounts
payable pursuant to Section 4.4), (y) provide appropriate
assurances and indemnities (which may include letters of credit) to the Swing
Line Lender as it may reasonably require with respect to any continuing
obligation to purchase participation interests in any Swing Line Loans then
outstanding, and (z) release such Lender from its obligations under the Loan
Documents.  Any Lender being replaced
shall execute and deliver a Lender Assignment Agreement with respect to such
Lender’s Commitment and Loans.  The
Agent shall distribute a schedule, which shall be deemed incorporated into this
Agreement, to reflect changes in the identities of the Lenders and adjustments
of their respective Commitments and/or Percentage resulting from any such
removal or replacement.

 

(b)                                 In
order to make all the Lenders’ interests in any outstanding Loans ratable in
accordance with any revised Percentages after giving effect to the removal or
replacement of a Lender, the Borrower shall pay or prepay, if necessary, on the
effective date thereof, all outstanding Loans of all Lenders, together with any
amounts due under Section 4.4. 
The Borrower may then request Loans from the Lenders in accordance with
their revised Percentages.  The Borrower
may net any payments required hereunder against any funds being provided by any
Lender commercial bank, other financial institution or Approved Fund replacing
a terminating Lender.  The effect for
purposes of this Agreement shall be the same as if separate transfers of funds
had been made with respect thereto.

 

(c)                                  This
section shall supersede any provision in Section 10.1 to the
contrary.

 

63

 

SECTION
10.14.  Forum Selection and Consent to
Jurisdiction.  ANY
LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS
AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF
DEALING, STATEMENTS (WHETHER ORAL OR WRITTEN) OR ACTIONS OF THE AGENT, THE
LENDERS OR THE BORROWER SHALL BE BROUGHT AND MAINTAINED EXCLUSIVELY IN THE
COURTS OF THE STATE OF NEW YORK OR IN THE UNITED STATES DISTRICT COURT FOR THE
SOUTHERN DISTRICT OF NEW YORK.  THE
BORROWER HEREBY EXPRESSLY AND IRREVOCABLY SUBMITS TO  THE
JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK AND OF THE UNITED STATES
DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK FOR THE PURPOSE OF ANY
SUCH LITIGATION AS SET FORTH ABOVE AND IRREVOCABLY AGREES TO BE BOUND BY ANY
JUDGMENT RENDERED THEREBY IN CONNECTION WITH SUCH LITIGATION.  THE BORROWER FURTHER IRREVOCABLY CONSENTS TO
THE SERVICE OF PROCESS BY REGISTERED MAIL TO THE CORPORATE SECRETARY, POSTAGE
PREPAID, AND WAIVES PERSONAL SERVICE OF ANY SUMMONS, COMPLAINT OR OTHER
PROCESS, WHICH MAY BE MADE BY ANY OTHER MEANS PERMITTED BY THE LAW OF THE
STATE OF NEW YORK.  THE BORROWER HEREBY
EXPRESSLY AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY
OBJECTION WHICH IT MAY HAVE OR HEREAFTER MAY HAVE TO THE LAYING OF
VENUE OF ANY SUCH LITIGATION BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND
ANY CLAIM THAT ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.  TO THE EXTENT THAT THE BORROWER HAS OR HEREAFTER
MAY ACQUIRE ANY IMMUNITY FROM JURISDICTION OF ANY COURT OF FROM ANY LEGAL
PROCESS (WHETHER THROUGH SERVICE OR NOTICE, ATTACHMENT PRIOR TO JUDGMENT,
ATTACHMENT IN AID OF EXECUTION OR OTHERWISE) WITH RESPECT TO ITSELF OR ITS
PROPERTY, THE BORROWER HEREBY IRREVOCABLY WAIVES SUCH IMMUNITY IN RESPECT OF
ITS OBLIGATIONS UNDER THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS.

 

SECTION
10.15.  WAIVER
OF JURY TRIAL.  THE AGENT,
THE LENDERS AND THE BORROWER HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY
WAIVE ANY RIGHTS THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY
LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS
AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF
DEALING, STATEMENTS (WHETHER ORAL OR WRITTEN) OR ACTIONS OF THE AGENT, THE
LENDERS OR THE BORROWER.  THE BORROWER
ACKNOWLEDGES AND AGREES THAT IT HAS RECEIVED FULL AND SUFFICIENT CONSIDERATION
FOR THIS PROVISION (AND EACH OTHER PROVISION OF EACH OTHER LOAN DOCUMENT TO
WHICH IT IS A PARTY) AND THAT THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE
AGENT AND THE LENDERS ENTERING INTO THIS AGREEMENT AND EACH SUCH OTHER LOAN
DOCUMENT.

 

[signature pages
to follow]

 

64

 

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

 

	
   

  	
  McCORMICK & COMPANY,

  INCORPORATED

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Christopher J. Kurtzman

  	
   

  
	
   

  	
   

  	
  Christopher J. Kurtzman

  
	
   

  	
   

  	
  Title:  Vice President & Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ 
  W. Geoffrey Carpenter

  	
   

  
	
   

  	
   

  	
  W. Geoffrey Carpenter

  
	
   

  	
   

  	
  Title:  Assistant Secretary

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  18 Loveton Circle

  
	
   

  	
   

  	
  Sparks, MD 21152

  
	
   

  	
   

  
	
   

  	
  Facsimile No.: (410)
  527-8228

  
	
   

  	
   

  	
   

  
	
   

  	
  Attn:

  	
  Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WACHOVIA BANK, N.A.,

  as Administrative Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ 
  Meg Beveridge

  	
   

  
	
   

  	
   

  	
  Meg Beveridge

  
	
   

  	
   

  	
  Title:  Vice President

  
	
   

  	
   

  
	
   

  	
  191 Peachtree Street

  
	
   

  	
  Mail
  Code:  GA-31273

  
	
   

  	
  Atlanta,
  Georgia  30303

  
	
   

  	
  Attention:  Michael Adams

  
	
   

  	
  Facsimile
  No.: (404) 332-5144

  
								

 

65

 

	
  PERCENTAGE

  	
  LENDERS

  
	
   

  	
   

  	
   

  
	
  8.58%

  	
  WACHOVIA BANK, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Meg Beveridge

  	
   

  
	
   

  	
   

  	
  Printed Name:  Meg Beveridge

  
	
   

  	
   

  	
  Title:  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  191 Peachtree Street

  
	
   

  	
  Mail
  Code:  GA-31273

  
	
   

  	
  Atlanta,
  Georgia  30303

  
	
   

  	
  Attention:  Michael Adams

  
	
   

  	
  Facsimile
  No.: (404) 332-5144 

  

 

 

	
  PERCENTAGE

  	
  LENDERS

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  17.14%

  	
  BANK OF AMERICA, N.A.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  William F. Sweeney

  	
   

  
	
   

  	
   

  	
  Printed Name:  William F. Sweeney

  
	
   

  	
   

  	
  Title:  Managing Director

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  219 South LaSalle
  Street

  
	
   

  	
   

  	
  Chicago, IL 60697

  
	
   

  	
   

  	
   

  
	
   

  	
  Facsimile No.: (312)
  987-1276

  
	
   

  	
   

  
	
   

  	
  Attn: William F.
  Sweeney

  
					

 

 

	
  PERCENTAGE

  	
  LENDERS

  
	
   

  	
   

  	
   

  
	
  17.14%

  	
  SUNTRUST BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Paul R. Beliveau

  	
   

  
	
   

  	
   

  	
  Printed Name:  Paul R. Beliveau

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  Address:  120 East Baltimore Street

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Baltimore, MD 21202

  
	
   

  	
   

  	
   

  
	
   

  	
  Facsimile: (410)
  986-1670

  
	
   

  	
   

  	
   

  
	
   

  	
  Attn:

  	
  Paul
  R. Belive\uua

  	
   

  
						

 

 

	
  PERCENTAGE

  	
  LENDERS

  
	
   

  	
   

  
	
   

  	
   

  
	
  14.29%

  	
  WELLS FARGO BANK, NATIONAL

  ASSOCIATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Brad Hardy

  	
   

  
	
   

  	
   

  	
  Printed Name:  Brad Hardy

  
	
   

  	
   

  	
  Title:  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Roy H. Roberts

  	
   

  
	
   

  	
   

  	
  Printed Name:  Roy Roberts

  
	
   

  	
   

  	
  Title:  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  Address:

  	
  70 E. 55th
  Street, 11th Floor

  
	
   

  	
   

  	
  New York, NY 10022

  
	
   

  	
   

  	
   

  
	
   

  	
  Facsimile No.: (212)
  593-5241

  
	
   

  	
   

  	
   

  
	
   

  	
  Attn: Lori Ross

  
					

 

 

	
  PERCENTAGE

  	
  LENDERS

  
	
   

  	
   

  
	
   

  	
   

  
	
  8.58%

  	
  ALLFIRST BANK

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Frank V. Lago

  	
   

  
	
   

  	
   

  	
  Printed Name:  Frank V. Lago

  
	
   

  	
   

  	
  Title:  Vice President

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  25 South Charles Street

  
	
   

  	
   

  	
  Baltimore, MD 21201

  
	
   

  	
   

  
	
   

  	
  Facsimile No.: (410)
  244-4294

  
	
   

  	
   

  
	
   

  	
  Attn: Frank V. Lago

  
					

 

 

	
  PERCENTAGE

  	
  LENDERS

  
	
   

  	
   

  
	
   

  	
   

  
	
  7.14%

  	
  CREDIT SUISSE FIRST BOSTON

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Andrea E. Shkane

  	
   

  
	
   

  	
   

  	
  Printed Name:  Andrea E. Shkane

  
	
   

  	
   

  	
  Title:  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  Address:

  	
  Eleven Madison Avenue

  
	
   

  	
   

  	
  New York, NY 10019

  
	
   

  	
   

  
	
   

  	
  Facsimile No.: (212)
  325-8320

  
	
   

  	
   

  
	
   

  	
  Attn: Jay Chall

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  David Sawyer

  	
   

  
	
   

  	
   

  	
  Printed Name:  David Sawyer

  
	
   

  	
   

  	
  Title:  Vice President

  
						

 

 

	
  PERCENTAGE

  	
  LENDERS

  
	
   

  	
   

  
	
   

  	
   

  
	
  7.14%

  	
  BNP PARIBAS

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Nanette Baudon

  	
   

  
	
   

  	
   

  	
  Printed Name:  Nanette Baudon

  
	
   

  	
   

  	
  Title:  Vice President

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Richard Pace

  	
   

  
	
   

  	
   

  	
  Printed Name:  Richard Pace

  
	
   

  	
   

  	
  Title:  VP - Corporate Banking Division

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  787 7th
  Avenue, 31st Floor

  
	
   

  	
   

  	
  New York, NY 10019

  
	
   

  	
   

  	
   

  
	
   

  	
  Facsimile No.: (212)
  841-3049

  
	
   

  	
   

  
	
   

  	
  Attn: Nanette Baudon

  
					

 

 

	
  PERCENTAGE

  	
  LENDERS

  
	
   

  	
   

  
	
   

  	
   

  
	
  7.14%

  	
  THE BANK OF NEW YORK

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Steven P. Cavaluzzo

  	
   

  
	
   

  	
   

  	
  Printed Name:  Steven P. Cavaluzzo

  
	
   

  	
   

  	
  Title:  Vice President

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  1 Wall Street, 22nd
  Floor

  
	
   

  	
   

  	
  New York, NY 10286

  
	
   

  	
   

  
	
   

  	
  Facsimile No.: (212)
  635-6434

  
	
   

  	
   

  
	
   

  	
  Attn:  Steven P. Cavaluzzo

  
					

 

 

	
  PERCENTAGE

  	
  LENDERS

  
	
   

  	
   

  
	
   

  	
   

  
	
  7.14%

  	
  THE FUJI BANK, LIMITED

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Raymond Ventura

  	
   

  
	
   

  	
   

  	
  Printed Name:  Raymond Ventura

  
	
   

  	
   

  	
  Title:  Senior Vice President

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  Two World Trade Center

  
	
   

  	
   

  	
  New York, NY 10048-0042

  
	
   

  	
   

  
	
   

  	
  Facsimile No.: (212)
  321-9407

  
	
   

  	
   

  
	
   

  	
  Attn: Alejandro D.
  Waldman

  
					

 

 

	
  PERCENTAGE

  	
  LENDERS

  
	
   

  	
   

  
	
   

  	
   

  
	
  5.71%

  	
  MELLON BANK, N.A.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  David H. Reed

  	
   

  
	
   

  	
   

  	
  Printed Name:  David H. Reed

  
	
   

  	
   

  	
  Title:  First Vice President

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  8521 Leesberg Pike,
  Ste. 405

  
	
   

  	
   

  	
  Vienna, VA 22182

  
	
   

  	
   

  
	
   

  	
  Facsimile No.: (410) 778-9448

  
	
   

  	
   

  
	
   

  	
  Attn: Peter Heller

  
					

 

 

SCHEDULE I

 

DISCLOSURE
SCHEDULE

 

ITEM 6.7                Litigation.

 

None.

 

ITEM 6.8                Existing
Subsidiaries as of the Effective Date.

 

Attached - Exhibit A.

 

ITEM 6.11              Employee Benefit
Plans.

 

Attached - Exhibit B.

 

ITEM 6.12              Environmental
Matters.

 

None.

 

ITEM 7.2.3             Existing Liens.

 

Attached - Exhibit C.

 

 

EXHIBIT A

 

THE AMERICAS
MARKET ZONE

 

U.S. Consumer Products Division

Ampacco, Inc. (Maryland)

Han-Dee Pak, Inc.   (Maryland)

McCormick de Puerto Rico,
Inc.   (Delaware)

Mojave Foods Corporation    (Maryland)

El Guapo Foods, Inc.  (California)

More For Less, Inc.    (Delaware)

Produce Partners, Inc.    (Illinois)

Old Bay Company, Inc.    (Delaware)

McCormick Holding Company,
Inc.    (Delaware)

Signature
Brands, LLC  (Florida)

McCormick Investment Company,
Inc.    (Delaware)

McCormick
Fresh Herbs, LLC  (Delaware)

 

McCormick de Centro America,
S.A. de C.V.    (El Salvador)

 

EUROPEAN MARKET
ZONE

 

McCormick Europe Ltd.    (United Kingdom)

McCormick International Holdings
Ltd.  (United Kingdom)

McCormick France S.A.S.   (France)

Ducros
S.A.S.  (France)

Dessert Products
International  (France)

Sodis
S.A.S.   (France)

McCormick
Management Services S.A.R.L.  (France)

McCormick (U.K.) Ltd.    (Scotland)

Bluebroad 1 Limited    (England)

McCormick Baharat de Gida Sanay
A.S.   (Turkey)

McCormick Glentham (Pty)
Limited    (South Africa)

McCormick Kutas Food Services
Ltd.  (United Kingdom)

Noel Holdings Limited    (England)

McCormick
Foodservice Ltd.  (England)

 

McCormick S.A.    (Switzerland)

 

Oy McCormick Ab    (Finland)

 

ASIAN MARKET
ZONE

 

McCormick Foods Australia Pty.
Ltd.    (Australia)

Traders Pty. Ltd.    (Australia)

 

McCormick (Guangzhou) Food
Company Limited    (China)

 

McCormick India Private
Limited  (India) (100% owned subsidiary
of McCormick (U.K.) Ltd.

 

Shanghai McCormick Foods
Company, Limited (China) (90% owned)

 

 

GLOBAL
INDUSTRIAL GROUP

 

Food Service Division

 

McCormick Flavor Group

McCormick Ingredients Southeast
Asia Private Limited

Classic Foods, Inc.    (Connecticut)

McCormick Pesa, S.A. de
C.V.    (Mexico)

McCormick Uruguay Holdings,
Inc.  (Delaware)

McCormick Uruguay, S.A.  (Uruguay)

 

La Cie McCormick Canada Co

 

Packaging Group

Setco, Inc.    (Delaware)

Tubed Products, Inc.     (Maryland)

OG
Dehydrated, Inc.    (California)

 

MISCELLANEOUS

 

AH Investments, Inc.    (Maryland)

Armanino Farms of California,
Inc.     (California)

International Ingredients,
Inc.    (Maryland)

McCormick Credit, Inc.  (Delaware)

McCormick Delaware, Inc.    (Delaware)

McCormick Foreign Sales Corporation    (U.S. Virgin Islands)

McCormick Ingredientes Brasil
Ltda.    (Brazil)

McCormick Global Ingredients
Limited    (Cayman)

McCormick Cyprus Limited    (Cyprus)

McCormick Hungary Group
Financing Limited Liability Company 
(Hungary)

McCormick
Europe Ltd.  (United Kingdom)

McCormick
(U.K.) Ltd.  (Scotland)

McCormick
International Holdings Ltd.   (United
Kingdom)

La
Cie McCormick Canada Co.  (Canada)

McCormick
Foods Australia Pty. Ltd.  (Australia)

 

 

REVOLVING
LOAN NOTE

 

	
  U.S.  $21,425,000

  	
   

  	
  June 19,
  2001

  

 

FOR VALUE RECEIVED, the undersigned, McCORMICK &
COMPANY, INCORPORATED, a Maryland corporation (the “Borrower”), promises
to pay to the order of SUNTRUST BANK (the “Lender”) on the Maturity Date
(as such term in defined in the 364-Day Credit Agreement, dated as of
June 19, 2001 (as amended or modified from time to time, the “Credit
Agreement”)), among the Borrower, Wachovia, N.A., as the administrative
agent (the “Agent”), and the various financial institutions (including
the Lender) as are, or may become parties thereto, the aggregate unpaid
principal amount of all Revolving Loans made by the Lender to the Borrower from
time to time pursuant to the Credit Agreement, the principal sum of TWENTY-ONE
MILLION FOUR HUNDRED TWENTY-FIVE THOUSAND AND 00/100 UNITED STATES DOLLARS
(U.S. $21,425,000) (or the Foreign Currency Equivalent of any currency which
the Borrower may borrow under the Credit Agreement) or, if less, the aggregate
unpaid principal amount of all Revolving Loans made by the Lender pursuant to
the Credit Agreement.  A notation
indicating all Revolving Loans made by the Lender pursuant to the Credit
Agreement and payments on account of the principal of such Revolving Loans may,
from time to time, be made by the holder hereof on the grid attached to this
note (this “Note”).  Unless
defined herein or the context otherwise requires, terms used herein have the
meanings provided in the Credit Agreement.

 

The unpaid principal amount of this Note from time to
time outstanding shall bear interest as provided in Section 3.3.1
of the Credit Agreement.  All payments
of principal of and interest on this Note shall be payable in lawful currency
of the United States of America (or the other currency borrowed) to the account
designated by the Agent in same day or immediately available funds.

 

This Note is one of the Notes referred to in, and
evidences indebtedness incurred in respect of the Revolving Loans under, the
Credit Agreement, to which reference is made for a description of any security
for this Note and for a statement of the terms and conditions on which the
Borrower is permitted and required to make prepayments of principal of the
indebtedness evidenced by this Note and on which such indebtedness may be
declared to be immediately due and payable.

 

Exhibit A-1

Page 1 of 3

 

THIS NOTE HAS BEEN DELIVERED IN NEW YORK, NEW YORK AND
SHALL  BE DEEMED TO BE A CONTRACT MADE
UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK.

 

	
   

  	
  McCORMICK &
  COMPANY, INCORPORATED

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Christopher J. Kurtzman

  	
   

  
	
   

  	
  Title:

  	
  Vice President
  & Treasurer

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  W. G. Carpenter

  	
   

  
	
   

  	
  Title:

  	
  Assistant
  Secretary

  	
   

  
						

 

Exhibit A-1

Page 2 of 3

 

	
  Date

  	
   

  	
  Amount of

  Loans and

  Currency

  	
   

  	
  Alternate
  Base

  Rate

  	
   

  	
  LIBO Rate

  	
   

  	
  Last Day
  of

  Applicable

  Interest Period

  	
   

  	
  Amount of

  Principal

  Payment

  	
   

  	
  Outstanding

  Principal

  Balance

  	
   

  	
  Notation

  Made By

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Exhibit A-1

Page 3 of 3

 

REVOLVING
LOAN NOTE

 

	
  U.S.  $21,425,000

  	
   

  	
  June 19,
  2001

  

 

FOR VALUE RECEIVED, the undersigned, McCORMICK &
COMPANY, INCORPORATED, a Maryland corporation (the “Borrower”), promises
to pay to the order of BANK OF AMERICA, N.A. 
(the “Lender”) on the Maturity Date (as such term in defined in
the 364-Day Credit Agreement, dated as of June 19, 2001 (as amended or
modified from time to time, the “Credit Agreement”)), among the
Borrower, Wachovia, N.A., as the administrative agent (the “Agent”), and
the various financial institutions (including the Lender) as are, or may become
parties thereto, the aggregate unpaid principal amount of all Revolving Loans
made by the Lender to the Borrower from time to time pursuant to the Credit
Agreement, the principal sum of TWENTY-ONE MILLION FOUR HUNDRED TWENTY-FIVE
THOUSAND AND 00/100 UNITED STATES DOLLARS (U.S. $21,425,000) UNITED STATES
DOLLARS (or the Foreign Currency Equivalent of any currency which the Borrower
may borrow under the Credit Agreement) or, if less, the aggregate unpaid
principal amount of all Revolving Loans made by the Lender pursuant to the
Credit Agreement.  A notation indicating
all Revolving Loans made by the Lender pursuant to the Credit Agreement and
payments on account of the principal of such Revolving Loans may, from time to
time, be made by the holder hereof on the grid attached to this note (this “Note”).  Unless defined herein or the context
otherwise requires, terms used herein have the meanings provided in the Credit
Agreement.

 

The unpaid principal amount of this Note from time to
time outstanding shall bear interest as provided in Section 3.3.1
of the Credit Agreement.  All payments
of principal of and interest on this Note shall be payable in lawful currency
of the United States of America (or the other currency borrowed) to the account
designated by the Agent in same day or immediately available funds.

 

This Note is one of the Notes referred to in, and
evidences indebtedness incurred in respect of the Revolving Loans under, the
Credit Agreement, to which reference is made for a description of any security
for this Note and for a statement of the terms and conditions on which the
Borrower is permitted and required to make prepayments of principal of the
indebtedness evidenced by this Note and on which such indebtedness may be
declared to be immediately due and payable.

 

Exhibit A-1

Page 1 of 3

 

THIS NOTE HAS BEEN DELIVERED IN NEW YORK, NEW YORK AND
SHALL  BE DEEMED TO BE A CONTRACT MADE
UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK.

 

	
   

  	
  McCORMICK &
  COMPANY, INCORPORATED

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Christopher J. Kurtzman

  	
   

  
	
   

  	
  Title:

  	
  Vice President
  & Treasurer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  W. G. Carpenter

  	
   

  
	
   

  	
  Title:

  	
  Assistant
  Secretary

  	
   

  
					

 

Exhibit A-1

Page 2 of 3

 

	
  Date

  	
   

  	
  Amount of

  Loans and

  Currency

  	
   

  	
  Alternate
  Base

  Rate

  	
   

  	
  LIBO Rate

  	
   

  	
  Last Day
  of

  Applicable

  Interest Period

  	
   

  	
  Amount of

  Principal

  Payment

  	
   

  	
  Outstanding

  Principal

  Balance

  	
   

  	
  Notation

  Made By

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Exhibit A-1

Page 3 of 3

 

REVOLVING LOAN NOTE

 

	
  U.S.  $17,862,500

  	
   

  	
  June 19,
  2001

  

 

FOR VALUE RECEIVED, the undersigned, McCORMICK &
COMPANY, INCORPORATED, a Maryland corporation (the “Borrower”), promises
to pay to the order of WELLS FARGO BANK, NATIONAL ASSOCIATION (the “Lender”)
on the Maturity Date (as such term in defined in the 364-Day Credit Agreement,
dated as of June 19, 2001 (as amended or modified from time to time, the “Credit
Agreement”)), among the Borrower, Wachovia, N.A., as the administrative
agent (the “Agent”), and the various financial institutions (including
the Lender) as are, or may become parties thereto, the aggregate unpaid
principal amount of all Revolving Loans made by the Lender to the Borrower from
time to time pursuant to the Credit Agreement, the principal sum of SEVENTEEN
MILLION EIGHT HUNDRED SIXTY-TWO THOUSAND FIVE HUNDRED 00/100 UNITED STATES
DOLLARS (U.S. $17,862,500) (or the Foreign Currency Equivalent of any currency
which the Borrower may borrow under the Credit Agreement) or, if less, the
aggregate unpaid principal amount of all Revolving Loans made by the Lender
pursuant to the Credit Agreement.  A
notation indicating all Revolving Loans made by the Lender pursuant to the
Credit Agreement and payments on account of the principal of such Revolving
Loans may, from time to time, be made by the holder hereof on the grid attached
to this note (this “Note”). 
Unless defined herein or the context otherwise requires, terms used
herein have the meanings provided in the Credit Agreement.

 

The unpaid principal amount of this Note from time to
time outstanding shall bear interest as provided in Section 3.3.1
of the Credit Agreement.  All payments
of principal of and interest on this Note shall be payable in lawful currency
of the United States of America (or the other currency borrowed) to the account
designated by the Agent in same day or immediately available funds.

 

This Note is one of the Notes referred to in, and
evidences indebtedness incurred in respect of the Revolving Loans under, the
Credit Agreement, to which reference is made for a description of any security
for this Note and for a statement of the terms and conditions on which the
Borrower is permitted and required to make prepayments of principal of the
indebtedness evidenced by this Note and on which such indebtedness may be
declared to be immediately due and payable.

 

Exhibit A-1

Page 1 of 3

 

THIS NOTE HAS BEEN DELIVERED IN NEW YORK, NEW YORK AND SHALL
BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE
STATE OF NEW YORK.

 

	
   

  	
  McCORMICK &
  COMPANY, INCORPORATED

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Christopher J. Kurtzman

  	
   

  
	
   

  	
  Title:

  	
  Vice President
  & Treasurer

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  W. G. Carpenter

  	
   

  
	
   

  	
  Title:

  	
  Assistant
  Secretary

  	
   

  
						

 

Exhibit A-1

Page 2 of 3

 

	
  Date

  	
   

  	
  Amount of

  Loans and

  Currency

  	
   

  	
  Alternate
  Base

  Rate

  	
   

  	
  LIBO Rate

  	
   

  	
  Last Day
  of

  Applicable

  Interest Period

  	
   

  	
  Amount of

  Principal

  Payment

  	
   

  	
  Outstanding

  Principal

  Balance

  	
   

  	
  Notation

  Made By

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Exhibit A-1

Page 3 of 3

 

REVOLVING LOAN NOTE

 

	
  U.S.  $10,725,000

  	
   

  	
  June 19,
  2001

  

 

FOR VALUE RECEIVED, the undersigned, McCORMICK &
COMPANY, INCORPORATED, a Maryland corporation (the “Borrower”), promises
to pay to the order of WACHOVIA, N.A. (the “Lender”) on the Maturity
Date (as such term in defined in the 364-Day Credit Agreement, dated as of
June 19, 2001 (as amended or modified from time to time, the “Credit
Agreement”)), among the Borrower, Wachovia, N.A., as the administrative
agent (the “Agent”), and the various financial institutions (including
the Lender) as are, or may become parties thereto, the aggregate unpaid
principal amount of all Revolving Loans made by the Lender to the Borrower from
time to time pursuant to the Credit Agreement, the principal sum of TEN MILLION
SEVEN HUNDRED TWENTY-FIVE THOUSAND AND 00/100 UNITED STATES DOLLARS (U.S.
$10,725,000) (or the Foreign Currency Equivalent of any currency which the
Borrower may borrow under the Credit Agreement) or, if less, the aggregate
unpaid principal amount of all Revolving Loans made by the Lender pursuant to the
Credit Agreement.  A notation indicating
all Revolving Loans made by the Lender pursuant to the Credit Agreement and
payments on account of the principal of such Revolving Loans may, from time to
time, be made by the holder hereof on the grid attached to this note (this “Note”).  Unless defined herein or the context
otherwise requires, terms used herein have the meanings provided in the Credit
Agreement.

 

The unpaid principal amount of this Note from time to
time outstanding shall bear interest as provided in Section 3.3.1
of the Credit Agreement.  All payments
of principal of and interest on this Note shall be payable in lawful currency
of the United States of America (or the other currency borrowed) to the account
designated by the Agent in same day or immediately available funds.

 

This Note is one of the Notes referred to in, and
evidences indebtedness incurred in respect of the Revolving Loans under, the
Credit Agreement, to which reference is made for a description of any security
for this Note and for a statement of the terms and conditions on which the
Borrower is permitted and required to make prepayments of principal of the
indebtedness evidenced by this Note and on which such indebtedness may be
declared to be immediately due and payable.

 

Exhibit A-1

Page 1 of 3

 

THIS NOTE HAS BEEN DELIVERED IN NEW YORK, NEW YORK AND SHALL
BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE
STATE OF NEW YORK.

 

	
   

  	
  McCORMICK &
  COMPANY, INCORPORATED

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Christopher J. Kurtzman

  	
   

  
	
   

  	
  Title:

  	
  Vice President
  & Treasurer

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  W. G. Carpenter

  	
   

  
	
   

  	
  Title:

  	
  Assistant
  Secretary

  	
   

  
						

 

Exhibit A-1

Page 2 of 3

 

	
  Date

  	
   

  	
  Amount of

  Loans and

  Currency

  	
   

  	
  Alternate
  Base

  Rate

  	
   

  	
  LIBO Rate

  	
   

  	
  Last Day
  of

  Applicable

  Interest Period

  	
   

  	
  Amount of

  Principal

  Payment

  	
   

  	
  Outstanding

  Principal

  Balance

  	
   

  	
  Notation

  Made By

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Exhibit A-1

Page 3 of 3

 

REVOLVING LOAN NOTE

 

	
  U.S.  $10,725,000

  	
   

  	
  June 19,
  2001

  

 

FOR VALUE RECEIVED, the undersigned, McCORMICK &
COMPANY, INCORPORATED, a Maryland corporation (the “Borrower”), promises
to pay to the order of ALLFIRST BANK (the “Lender”) on the Maturity Date
(as such term in defined in the 364-Day Credit Agreement, dated as of
June 19, 2001 (as amended or modified from time to time, the “Credit
Agreement”)), among the Borrower, Wachovia, N.A., as the administrative
agent (the “Agent”), and the various financial institutions (including
the Lender) as are, or may become parties thereto, the aggregate unpaid
principal amount of all Revolving Loans made by the Lender to the Borrower from
time to time pursuant to the Credit Agreement, the principal sum of TEN MILLION
SEVEN HUNDRED TWENTY-FIVE THOUSAND AND 00/100 UNITED STATES DOLLARS (U.S.
$10,725,000) (or the Foreign Currency Equivalent of any currency which the
Borrower may borrow under the Credit Agreement) or, if less, the aggregate
unpaid principal amount of all Revolving Loans made by the Lender pursuant to
the Credit Agreement.  A notation
indicating all Revolving Loans made by the Lender pursuant to the Credit
Agreement and payments on account of the principal of such Revolving Loans may,
from time to time, be made by the holder hereof on the grid attached to this
note (this “Note”).  Unless
defined herein or the context otherwise requires, terms used herein have the
meanings provided in the Credit Agreement.

 

The unpaid principal amount of this Note from time to
time outstanding shall bear interest as provided in Section 3.3.1
of the Credit Agreement.  All payments
of principal of and interest on this Note shall be payable in lawful currency
of the United States of America (or the other currency borrowed) to the account
designated by the Agent in same day or immediately available funds.

 

This Note is one of the Notes referred to in, and
evidences indebtedness incurred in respect of the Revolving Loans under, the
Credit Agreement, to which reference is made for a description of any security
for this Note and for a statement of the terms and conditions on which the
Borrower is permitted and required to make prepayments of principal of the
indebtedness evidenced by this Note and on which such indebtedness may be
declared to be immediately due and payable.

 

Exhibit A-1

Page 1 of 3

 

THIS NOTE HAS BEEN DELIVERED IN NEW YORK, NEW YORK AND SHALL
BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE
STATE OF NEW YORK.

 

	
   

  	
  McCORMICK &
  COMPANY, INCORPORATED

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Christopher J. Kurtzman

  	
   

  
	
   

  	
  Title:

  	
  Vice President
  & Treasurer

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  W. G. Carpenter

  	
   

  
	
   

  	
  Title:

  	
  Assistant
  Secretary

  	
   

  
						

 

Exhibit A-1

Page 2 of 3

 

	
  Date

  	
   

  	
  Amount of

  Loans and

  Currency

  	
   

  	
  Alternate
  Base

  Rate

  	
   

  	
  LIBO Rate

  	
   

  	
  Last Day
  of

  Applicable

  Interest Period

  	
   

  	
  Amount of

  Principal

  Payment

  	
   

  	
  Outstanding

  Principal

  Balance

  	
   

  	
  Notation

  Made By

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Exhibit A-1

Page 3 of 3

 

REVOLVING LOAN NOTE

 

	
  U.S.  $8,925,000

  	
   

  	
  June 19,
  2001

  

 

FOR VALUE RECEIVED, the undersigned, McCORMICK &
COMPANY, INCORPORATED, a Maryland corporation (the “Borrower”), promises
to pay to the order of CREDIT SUISSE FIRST BOSTON (the “Lender”) on the
Maturity Date (as such term in defined in the 364-Day Credit Agreement, dated
as of June 19, 2001 (as amended or modified from time to time, the “Credit
Agreement”)), among the Borrower, Wachovia, N.A., as the administrative
agent (the “Agent”), and the various financial institutions (including
the Lender) as are, or may become parties thereto, the aggregate unpaid
principal amount of all Revolving Loans made by the Lender to the Borrower from
time to time pursuant to the Credit Agreement, the principal sum of EIGHT
MILLION NINE HUNDRED TWENTY-FIVE THOUSAND 00/100 UNITED STATES DOLLARS (U.S.
$8,925,000) (or the Foreign Currency Equivalent of any currency which the
Borrower may borrow under the Credit Agreement) or, if less, the aggregate
unpaid principal amount of all Revolving Loans made by the Lender pursuant to
the Credit Agreement.  A notation
indicating all Revolving Loans made by the Lender pursuant to the Credit
Agreement and payments on account of the principal of such Revolving Loans may,
from time to time, be made by the holder hereof on the grid attached to this
note (this “Note”).  Unless
defined herein or the context otherwise requires, terms used herein have the
meanings provided in the Credit Agreement.

 

The unpaid principal amount of this Note from time to
time outstanding shall bear interest as provided in Section 3.3.1
of the Credit Agreement.  All payments
of principal of and interest on this Note shall be payable in lawful currency
of the United States of America (or the other currency borrowed) to the account
designated by the Agent in same day or immediately available funds.

 

This Note is one of the Notes referred to in, and
evidences indebtedness incurred in respect of the Revolving Loans under, the
Credit Agreement, to which reference is made for a description of any security
for this Note and for a statement of the terms and conditions on which the
Borrower is permitted and required to make prepayments of principal of the
indebtedness evidenced by this Note and on which such indebtedness may be
declared to be immediately due and payable.

 

Exhibit A-1

Page 1 of 3

 

THIS NOTE HAS BEEN DELIVERED IN NEW YORK, NEW YORK AND SHALL
BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE
STATE OF NEW YORK.

 

	
   

  	
  McCORMICK &
  COMPANY, 

  INCORPORATED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Christopher J. Kurtzman

  
	
   

  	
  Title:

  	
  Vice
  President & Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  W. G. Carpenter

  
	
   

  	
  Title:

  	
  Assistant
  Secretary

  
				

 

Exhibit A-1

Page 2 of 3

 

	
  Date

  	
   

  	
  Amount of

  Loans and

  Currency

  	
   

  	
  Alternate
  Base

  Rate

  	
   

  	
  LIBO Rate

  	
   

  	
  Last Day
  of

  Applicable

  Interest Period

  	
   

  	
  Amount of

  Principal

  Payment

  	
   

  	
  Outstanding

  Principal

  Balance

  	
   

  	
  Notation

  Made By

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Exhibit A-1

Page 3 of 3

 

REVOLVING LOAN NOTE

 

	
  U.S.  $8,925,000

  	
   

  	
  June 19,
  2001

  

 

FOR VALUE RECEIVED, the undersigned, McCORMICK &
COMPANY, INCORPORATED, a Maryland corporation (the “Borrower”), promises
to pay to the order of BNP PARIBAS (the “Lender”) on the Maturity Date
(as such term in defined in the 364-Day Credit Agreement, dated as of
June 19, 2001 (as amended or modified from time to time, the “Credit
Agreement”)), among the Borrower, Wachovia, N.A., as the administrative
agent (the “Agent”), and the various financial institutions (including
the Lender) as are, or may become parties thereto, the aggregate unpaid
principal amount of all Revolving Loans made by the Lender to the Borrower from
time to time pursuant to the Credit Agreement, the principal sum of EIGHT
MILLION NINE HUNDRED TWENTY-FIVE THOUSAND 00/100 UNITED STATES DOLLARS (U.S.
$8,925,000) (or the Foreign Currency Equivalent of any currency which the
Borrower may borrow under the Credit Agreement) or, if less, the aggregate
unpaid principal amount of all Revolving Loans made by the Lender pursuant to
the Credit Agreement.  A notation
indicating all Revolving Loans made by the Lender pursuant to the Credit
Agreement and payments on account of the principal of such Revolving Loans may,
from time to time, be made by the holder hereof on the grid attached to this
note (this “Note”).  Unless
defined herein or the context otherwise requires, terms used herein have the
meanings provided in the Credit Agreement.

 

The unpaid principal amount of this Note from time to
time outstanding shall bear interest as provided in Section 3.3.1
of the Credit Agreement.  All payments
of principal of and interest on this Note shall be payable in lawful currency
of the United States of America (or the other currency borrowed) to the account
designated by the Agent in same day or immediately available funds.

 

This Note is one of the Notes referred to in, and
evidences indebtedness incurred in respect of the Revolving Loans under, the
Credit Agreement, to which reference is made for a description of any security
for this Note and for a statement of the terms and conditions on which the
Borrower is permitted and required to make prepayments of principal of the
indebtedness evidenced by this Note and on which such indebtedness may be
declared to be immediately due and payable.

 

Exhibit A-1

Page 1 of 3

 

THIS NOTE HAS BEEN DELIVERED IN NEW YORK, NEW YORK AND SHALL
BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE
STATE OF NEW YORK.

 

	
   

  	
  McCORMICK &
  COMPANY, 

  INCORPORATED

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Christopher J. Kurtzman

  
	
   

  	
  Title:

  	
  Vice
  President & Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  W. G. Carpenter

  
	
   

  	
  Title:

  	
  Assistant
  Secretary

  
					

 

Exhibit A-1

Page 2 of 3

 

	
  Date

  	
   

  	
  Amount of

  Loans and

  Currency

  	
   

  	
  Alternate
  Base

  Rate

  	
   

  	
  LIBO Rate

  	
   

  	
  Last Day
  of

  Applicable

  Interest Period

  	
   

  	
  Amount of

  Principal

  Payment

  	
   

  	
  Outstanding

  Principal

  Balance

  	
   

  	
  Notation

  Made By

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Exhibit A-1

Page 3 of 3

 

REVOLVING LOAN NOTE

 

	
  U.S.  $8,925,000

  	
   

  	
  June 19,
  2001

  

 

FOR VALUE RECEIVED, the undersigned, McCORMICK &
COMPANY, INCORPORATED, a Maryland corporation (the “Borrower”), promises
to pay to the order of BANK OF NEW YORK (the “Lender”) on the Maturity
Date (as such term in defined in the 364-Day Credit Agreement, dated as of
June 19, 2001 (as amended or modified from time to time, the “Credit
Agreement”)), among the Borrower, Wachovia, N.A., as the administrative
agent (the “Agent”), and the various financial institutions (including
the Lender) as are, or may become parties thereto, the aggregate unpaid principal
amount of all Revolving Loans made by the Lender to the Borrower from time to
time pursuant to the Credit Agreement, the principal sum of EIGHT MILLION NINE
HUNDRED TWENTY-FIVE THOUSAND 00/100 UNITED STATES DOLLARS (U.S. $8,925,000) (or
the Foreign Currency Equivalent of any currency which the Borrower may borrow
under the Credit Agreement) or, if less, the aggregate unpaid principal amount
of all Revolving Loans made by the Lender pursuant to the Credit
Agreement.  A notation indicating all
Revolving Loans made by the Lender pursuant to the Credit Agreement and
payments on account of the principal of such Revolving Loans may, from time to
time, be made by the holder hereof on the grid attached to this note (this “Note”).  Unless defined herein or the context
otherwise requires, terms used herein have the meanings provided in the Credit
Agreement.

 

The unpaid principal amount of this Note from time to
time outstanding shall bear interest as provided in Section 3.3.1
of the Credit Agreement.  All payments
of principal of and interest on this Note shall be payable in lawful currency
of the United States of America (or the other currency borrowed) to the account
designated by the Agent in same day or immediately available funds.

 

This Note is one of the Notes referred to in, and
evidences indebtedness incurred in respect of the Revolving Loans under, the
Credit Agreement, to which reference is made for a description of any security
for this Note and for a statement of the terms and conditions on which the Borrower
is permitted and required to make prepayments of principal of the indebtedness
evidenced by this Note and on which such indebtedness may be declared to be
immediately due and payable.

 

Exhibit A-1

Page 1 of 3

 

THIS NOTE HAS BEEN DELIVERED IN NEW YORK, NEW YORK AND SHALL
BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE
STATE OF NEW YORK.

 

	
   

  	
  McCORMICK &
  COMPANY, 

  INCORPORATED

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Christopher J. Kurtzman

  
	
   

  	
  Title:

  	
  Vice
  President & Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  W. G. Carpenter

  
	
   

  	
  Title:

  	
  Assistant
  Secretary

  
					

 

Exhibit A-1

Page 2 of 3

 

	
  Date

  	
   

  	
  Amount of

  Loans and

  Currency

  	
   

  	
  Alternate
  Base

  Rate

  	
   

  	
  LIBO Rate

  	
   

  	
  Last Day
  of

  Applicable

  Interest Period

  	
   

  	
  Amount of

  Principal

  Payment

  	
   

  	
  Outstanding

  Principal

  Balance

  	
   

  	
  Notation

  Made By

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Exhibit A-1

Page 3 of 3

 

REVOLVING LOAN NOTE

 

	
  U.S.  $8,925,000

  	
   

  	
  June 19,
  2001

  

 

FOR VALUE RECEIVED, the undersigned, McCORMICK &
COMPANY, INCORPORATED, a Maryland corporation (the “Borrower”), promises
to pay to the order of THE FUJI BANK, LTD. (the “Lender”) on the
Maturity Date (as such term in defined in the 364-Day Credit Agreement, dated
as of June 19, 2001 (as amended or modified from time to time, the “Credit
Agreement”)), among the Borrower, Wachovia, N.A., as the administrative
agent (the “Agent”), and the various financial institutions (including
the Lender) as are, or may become parties thereto, the aggregate unpaid
principal amount of all Revolving Loans made by the Lender to the Borrower from
time to time pursuant to the Credit Agreement, the principal sum of EIGHT
MILLION NINE HUNDRED TWENTY-FIVE THOUSAND 00/100 UNITED STATES DOLLARS (U.S.
$8,925,000) (or the Foreign Currency Equivalent of any currency which the
Borrower may borrow under the Credit Agreement) or, if less, the aggregate
unpaid principal amount of all Revolving Loans made by the Lender pursuant to
the Credit Agreement.  A notation
indicating all Revolving Loans made by the Lender pursuant to the Credit
Agreement and payments on account of the principal of such Revolving Loans may,
from time to time, be made by the holder hereof on the grid attached to this
note (this “Note”).  Unless
defined herein or the context otherwise requires, terms used herein have the
meanings provided in the Credit Agreement.

 

The unpaid principal amount of this Note from time to
time outstanding shall bear interest as provided in Section 3.3.1
of the Credit Agreement.  All payments
of principal of and interest on this Note shall be payable in lawful currency
of the United States of America (or the other currency borrowed) to the account
designated by the Agent in same day or immediately available funds.

 

This Note is one of the Notes referred to in, and
evidences indebtedness incurred in respect of the Revolving Loans under, the
Credit Agreement, to which reference is made for a description of any security
for this Note and for a statement of the terms and conditions on which the
Borrower is permitted and required to make prepayments of principal of the
indebtedness evidenced by this Note and on which such indebtedness may be
declared to be immediately due and payable.

 

Exhibit A-1

Page 1 of 3

 

THIS NOTE HAS BEEN DELIVERED IN NEW YORK, NEW YORK AND SHALL
BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE
STATE OF NEW YORK.

 

	
   

  	
  McCORMICK &
  COMPANY, 

  INCORPORATED

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Christopher J. Kurtzman

  
	
   

  	
  Title:

  	
  Vice
  President & Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  W. G. Carpenter

  
	
   

  	
  Title:

  	
  Assistant
  Secretary

  
					

 

Exhibit A-1

Page 2 of 3

 

	
  Date

  	
   

  	
  Amount of

  Loans and

  Currency

  	
   

  	
  Alternate
  Base

  Rate

  	
   

  	
  LIBO Rate

  	
   

  	
  Last Day
  of

  Applicable

  Interest Period

  	
   

  	
  Amount of

  Principal

  Payment

  	
   

  	
  Outstanding

  Principal

  Balance

  	
   

  	
  Notation

  Made By

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Exhibit A-1

Page 3 of 3

 

REVOLVING LOAN NOTE

 

	
  U.S.  $7,137,500

  	
   

  	
  June 19,
  2001

  

 

FOR VALUE RECEIVED, the undersigned, McCORMICK &
COMPANY, INCORPORATED, a Maryland corporation (the “Borrower”), promises
to pay to the order of MELLON BANK, N.A. (the “Lender”) on the Maturity
Date (as such term in defined in the 364-Day Credit Agreement, dated as of
June 19, 2001 (as amended or modified from time to time, the “Credit
Agreement”)), among the Borrower, Wachovia, N.A., as the administrative
agent (the “Agent”), and the various financial institutions (including
the Lender) as are, or may become parties thereto, the aggregate unpaid
principal amount of all Revolving Loans made by the Lender to the Borrower from
time to time pursuant to the Credit Agreement, the principal sum of SEVEN
MILLION ONE HUNDRED THIRTY-SEVEN THOUSAND FIVE HUNDRED AND 00/100 UNITED STATES
DOLLARS (U.S. $7,137,500) (or the Foreign Currency Equivalent of any currency
which the Borrower may borrow under the Credit Agreement) or, if less, the
aggregate unpaid principal amount of all Revolving Loans made by the Lender
pursuant to the Credit Agreement.  A
notation indicating all Revolving Loans made by the Lender pursuant to the
Credit Agreement and payments on account of the principal of such Revolving
Loans may, from time to time, be made by the holder hereof on the grid attached
to this note (this “Note”). 
Unless defined herein or the context otherwise requires, terms used
herein have the meanings provided in the Credit Agreement.

 

The unpaid principal amount of this Note from time to
time outstanding shall bear interest as provided in Section 3.3.1
of the Credit Agreement.  All payments
of principal of and interest on this Note shall be payable in lawful currency
of the United States of America (or the other currency borrowed) to the account
designated by the Agent in same day or immediately available funds.

 

This Note is one of the Notes referred to in, and
evidences indebtedness incurred in respect of the Revolving Loans under, the
Credit Agreement, to which reference is made for a description of any security
for this Note and for a statement of the terms and conditions on which the Borrower
is permitted and required to make prepayments of principal of the indebtedness
evidenced by this Note and on which such indebtedness may be declared to be
immediately due and payable.

 

Exhibit A-1

Page 1 of 3

 

THIS NOTE HAS BEEN DELIVERED IN NEW YORK, NEW YORK AND SHALL
BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE
STATE OF NEW YORK.

 

	
   

  	
  McCORMICK &
  COMPANY, 

  INCORPORATED

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Christopher J. Kurtzman

  
	
   

  	
  Title:

  	
  Vice
  President & Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  W. G. Carpenter

  
	
   

  	
  Title:

  	
  Assistant
  Secretary

  
					

 

Exhibit A-1

Page 2 of 3

 

	
  Date

  	
   

  	
  Amount of

  Loans and

  Currency

  	
   

  	
  Alternate
  Base

  Rate

  	
   

  	
  LIBO Rate

  	
   

  	
  Last Day
  of

  Applicable

  Interest Period

  	
   

  	
  Amount of

  Principal

  Payment

  	
   

  	
  Outstanding

  Principal

  Balance

  	
   

  	
  Notation

  Made By

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Exhibit A-1

Page 3 of 3

 

FORM OF COMPETITIVE BID LOAN NOTE

 

	
  U.S.$125,000,000

  	
   

  	
  June    , 2001

  

 

FOR VALUE RECEIVED, the
undersigned, McCORMICK & COMPANY, INCORPORATED, a Maryland corporation (the
“Borrower”), promises to pay to the order
of                                             
(the “Lender”) on the earlier of (i) each Competitive Bid Loan Maturity
Date (as such term is defined in that certain 364-Day Credit Agreement, dated
as of June 19, 2001 (as amended or modified from time to time, the “Credit
Agreement”), among the Borrower, Wachovia, N.A., as administrative agent
(the “Agent”), and the various financial institutions, including the Lender,
as are, or may from time to time become parties thereto), the aggregate unpaid
principal amount of all Competitive Bid Loans made by the Lender to the
Borrower pursuant to Section 2.3 of the Credit Agreement to which
such Competitive Bid Loan Maturity Date applies and (ii) the Maturity Date (as
defined in the Credit Agreement), the principal sum of ONE HUNDRED TWENTY-FIVE
MILLION UNITED STATES DOLLARS (U.S. DOLLARS (U.S. $125,000,000) (or the Foreign
Currency Equivalent of any currency which the Borrower may borrow under the
Credit Agreement) or, if less, the unpaid principal amount of all Competitive
Bid Loans made by the Lender to the Borrower from time to time pursuant to Section 2.3
of the Credit Agreement.  A notation
indicating all Competitive Bid Loans made by the Lender pursuant to the Credit
Agreement and all payments on account of the principal of such Loans may, from
time to time, be made by the holder hereof on the grid attached to this note
(this “Note”).  Unless otherwise
defined herein or the context otherwise requires, terms used herein have the
meanings provided in the Credit Agreement.

 

The unpaid principal amount of
this Note from time to time outstanding shall bear interest as provided in Section 3.3.1
of the Credit Agreement.  All payments
of principal of and interest on this Note shall be payable in lawful currency
of the United States of America (or the other currency borrowed) to the account
designated by the Agent in same day or immediately available funds.

 

This Note is one of the Notes
referred to in, and evidences indebtedness incurred in respect of Competitive
Bid Loans under, the Credit Agreement, to which reference is made for a
description of any security for this Note and for a statement of the terms and
conditions on which the Borrower is permitted and required to make prepayments
of principal of the indebtedness evidenced by this Note and on which such
indebtedness may be declared to be immediately due and payable.

 

THIS NOTE HAS BEEN DELIVERED IN NEW
YORK, NEW YORK AND SHALL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY
THE INTERNAL LAWS OF THE STATE OF NEW YORK.

 

Exhibit A-2

Page 1 of 2

 

	
   

  	
  McCORMICK
  & COMPANY, INCORPORATED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

Exhibit A-2

Page 2 of 2

 

	
  Date

  	
   

  	
  Amount of

  Loan

  	
   

  	
  Competitive

  Bid Loan

  Maturity

  Date

  	
   

  	
  Competitive

  Bid Loan

  Interest

  Payment

  Date

  	
   

  	
  Amount

  of

  Interest

  Payment

  	
   

  	
  Amount of

  Principal

  Payment

  	
   

  	
  Outstanding

  Principal

  Balance

  	
   

  	
  Notation

  Made By

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

EXHIBIT
B

EMPLOYEE BENEFIT PLANS

 

EXHIBIT B

 

7.
PENSION AND PROFIT SHARING PLANS

 

The Company’s pension
expense is as follows:

 

	
   

  	
   

  	
  United
  States

  	
   

  	
  International

  	
   

  
	
  (millions)

  	
   

  	
  2000

  	
   

  	
  1999

  	
   

  	
  1998

  	
   

  	
  2000

  	
   

  	
  1999

  	
   

  	
  1998

  	
   

  
	
  Defined benefit
  plans

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Service cost

  	
   

  	
  $

  	
  7.1

  	
   

  	
  $

  	
  7.4

  	
   

  	
  $

  	
  6.2

  	
   

  	
  $

  	
  2.7

  	
   

  	
  $

  	
  2.8

  	
   

  	
  $

  	
  2.7

  	
   

  
	
  Interest costs

  	
   

  	
  13.8

  	
   

  	
  12.7

  	
   

  	
  11.4

  	
   

  	
  3.3

  	
   

  	
  3.2

  	
   

  	
  3.2

  	
   

  
	
  Expected return
  on plan assets

  	
   

  	
  (15.5

  	
  )

  	
  (13.2

  	
  )

  	
  (11.2

  	
  )

  	
  (4.7

  	
  )

  	
  (5.2

  	
  )

  	
  (4.9

  	
  )

  
	
  Amortization of
  prior service costs

  	
   

  	
  .1

  	
   

  	
  .1

  	
   

  	
  .1

  	
   

  	
  .1

  	
   

  	
  .1

  	
   

  	
  .1

  	
   

  
	
  Amortization of
  transition assets

  	
   

  	
  .2

  	
   

  	
  (.6

  	
  )

  	
  (.5

  	
  )

  	
  (.1

  	
  )

  	
  (.1

  	
  )

  	
  (.1

  	
  )

  
	
  Curtailment loss

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  .2

  	
   

  	
  —

  	
   

  
	
  Recognized net
  actuarial loss (gain)

  	
   

  	
  1.3

  	
   

  	
  3.3

  	
   

  	
  1.6

  	
   

  	
  —

  	
   

  	
  (.1

  	
  )

  	
  (.3

  	
  )

  
	
  Other retirement
  plans

  	
   

  	
  —

  	
   

  	
  .1

  	
   

  	
  .2

  	
   

  	
  .5

  	
   

  	
  .7

  	
   

  	
  .8

  	
   

  
	
   

  	
   

  	
  $

  	
  7.0

  	
   

  	
  $

  	
  9.8

  	
   

  	
  $

  	
  7.8

  	
   

  	
  $

  	
  1.8

  	
   

  	
  $

  	
  1.6

  	
   

  	
  $

  	
  1.5

  	
   

  

 

The Company’s U.S. pension plans held .5 million shares, with a fair
value of $17.9 million, of the Company’s stock at November 30, 2000.
Dividends paid on these shares in 2000 were $.4 million.

Rollforwards of the benefit obligation, fair value of
plan assets and a reconciliation of the pension plans’ funded status at
September 30, the measurement date, follow:

 

	
   

  	
   

  	
  United
  States

  	
   

  	
  International

  	
   

  
	
  (millions)

  	
   

  	
  2000

  	
   

  	
  1999

  	
   

  	
  2000

  	
   

  	
  1999

  	
   

  
	
  Change in
  benefit obligation

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Beginning of the
  year

  	
   

  	
  $

  	
  176.5

  	
   

  	
  $

  	
  185.5

  	
   

  	
  $

  	
  58.9

  	
   

  	
  $

  	
  49.8

  	
   

  
	
  Service cost

  	
   

  	
  7.1

  	
   

  	
  7.4

  	
   

  	
  2.7

  	
   

  	
  2.8

  	
   

  
	
  Interest costs

  	
   

  	
  13.8

  	
   

  	
  12.7

  	
   

  	
  3.3

  	
   

  	
  3.2

  	
   

  
	
  Employee
  contributions

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  1.2

  	
   

  	
  1.1

  	
   

  
	
  Plan changes and
  other

  	
   

  	
  .6

  	
   

  	
  .3

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Curtailment

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  .4

  	
   

  
	
  Actuarial loss
  (gain)

  	
   

  	
  .6

  	
   

  	
  (17.7

  	
  )

  	
  .6

  	
   

  	
  4.2

  	
   

  
	
  Benefits paid

  	
   

  	
  (11.7

  	
  )

  	
  (11.7

  	
  )

  	
  (2.1

  	
  )

  	
  (2.2

  	
  )

  
	
  Foreign currency
  impact

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  (5.6

  	
  )

  	
  (.4

  	
  )

  
	
  End of the year

  	
   

  	
  $

  	
  186.9

  	
   

  	
  $

  	
  176.5

  	
   

  	
  $

  	
  59.0

  	
   

  	
  $

  	
  58.9

  	
   

  
	
  Change in fair
  value of plan assets

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Beginning of the
  year

  	
   

  	
  $

  	
  169.0

  	
   

  	
  $

  	
  141.2

  	
   

  	
  $

  	
  60.7

  	
   

  	
  $

  	
  57.9

  	
   

  
	
  Actual return on
  plan assets

  	
   

  	
  16.6

  	
   

  	
  16.9

  	
   

  	
  10.5

  	
   

  	
  4.4

  	
   

  
	
  Transfer

  	
   

  	
  —

  	
   

  	
  .4

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Employer
  contributions

  	
   

  	
  9.2

  	
   

  	
  22.2

  	
   

  	
  1.1

  	
   

  	
  —

  	
   

  
	
  Employee
  contributions

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  1.2

  	
   

  	
  1.1

  	
   

  
	
  Benefits paid

  	
   

  	
  (11.7

  	
  )

  	
  (11.7

  	
  )

  	
  (2.1

  	
  )

  	
  (2.2

  	
  )

  
	
  Foreign currency
  impact

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  (5.8

  	
  )

  	
  (.5

  	
  )

  
	
  End of the year

  	
   

  	
  $

  	
  183.1

  	
   

  	
  $

  	
  169.0

  	
   

  	
  $

  	
  65.6

  	
   

  	
  $

  	
  60.7

  	
   

  
	
  Reconciliation
  of funded status

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Funded status

  	
   

  	
  $

  	
  (3.9

  	
  )

  	
  $

  	
  (7.5

  	
  )

  	
  $

  	
  6.6

  	
   

  	
  $

  	
  1.8

  	
   

  
	
  Unrecognized net
  actuarial loss (gain)

  	
   

  	
  24.6

  	
   

  	
  26.2

  	
   

  	
  (7.6

  	
  )

  	
  (2.9

  	
  )

  
	
  Unrecognized
  prior service cost

  	
   

  	
  .2

  	
   

  	
  .3

  	
   

  	
  .5

  	
   

  	
  .7

  	
   

  
	
  Unrecognized
  transition asset (liability)

  	
   

  	
  .5

  	
   

  	
  .6

  	
   

  	
  (.3

  	
  )

  	
  (.4

  	
  )

  
	
  Employer
  contribution

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  .3

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
  $

  	
  21.4

  	
   

  	
  $

  	
  19.6

  	
   

  	
  $

  	
  (.5

  	
  )

  	
  $

  	
  (.8

  	
  )

  

 

                Amounts recognized in the Consolidated Balance Sheet
consist of the following:

 

	
   

  	
   

  	
  United
  States

  	
   

  	
  International

  	
   

  
	
  (millions)

  	
   

  	
  2000

  	
   

  	
  1999

  	
   

  	
  2000

  	
   

  	
  1999

  	
   

  
	
  Prepaid pension
  cost

  	
   

  	
  $

  	
  21.4

  	
   

  	
  $

  	
  19.6

  	
   

  	
  $

  	
  .5

  	
   

  	
  $

  	
  .4

  	
   

  
	
  Accrued pension
  liability

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  (1.0

  	
  )

  	
  (1.2

  	
  )

  
	
   

  	
   

  	
  $

  	
  21.4

  	
   

  	
  $

  	
  19.6

  	
   

  	
  $

  	
  (.5

  	
  )

  	
  $

  	
  (.8

  	
  )

  

 

The accumulated benefit obligation for the U.S.
pension plans was $152.4 million and $144.5 million as of September 30,
2000 and 1999, respectively.

 

	
   

  	
   

  	
  United
  States

  	
   

  	
  International

  	
   

  
	
  (millions)

  	
   

  	
  2000

  	
   

  	
  1999

  	
   

  	
  2000

  	
   

  	
  1999

  	
   

  
	
  Significant
  assumptions

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Discount rate

  	
   

  	
  8.0

  	
  %

  	
  8.0

  	
  %

  	
  6.0-6.5

  	
  %

  	
  6.0-6.5

  	
  %

  
	
  Salary scale

  	
   

  	
  4.5

  	
  %

  	
  4.5

  	
  %

  	
  3.5-4.0

  	
  %

  	
  3.5-4.0

  	
  %

  
	
  Expected return
  on plan assets

  	
   

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  8.5

  	
  %

  	
  8.5

  	
  %

  

 

 

Cumulative
effect of an accounting change

In 1999, the Company changed its actuarial method of calculating the
market-related value of plan assets used in determining the expected
return-on-asset component of annual pension expense. This modification resulted
in a cumulative effect of accounting change credit of $4.8 million after-tax or
$.07 per share ($7.7 million before tax) recorded in the first quarter of 1999.
Under the previous method, all realized and unrealized gains and losses were
gradually included in the calculated market-related value of plan assets over a
five-year period. Under the new method, the total expected investment return,
which anticipates realized and unrealized gains and losses on plan assets, is
included in the calculated market-related value of plan assets each year. Only
the difference between total actual investment return, including realized and
unrealized gains and losses, and the expected investment return is gradually
included in the calculated market-related value of plan assets over a five-year
period.

Under the new actuarial method, the calculated
market-related value of plan assets more closely approximates fair value, while
still mitigating the effect of annual market value fluctuations. It also
reduces the growing difference between the fair value and calculated
market-related value of plan assets that has resulted from the recent
accumulation of unrecognized gains and losses. While this change better
represents the amount of ongoing pension expense, the new method did not have a
material impact on the Company’s results of operations in 2000 or 1999 and is
not expected to have a material impact in future years. The pro-forma impact of
applying the change to 1998 was not material.

 

Profit
Sharing Plan            

Profit sharing plan expense
was $5.8 million, $6.0 million and $4.2 million in 2000, 1999 and 1998,
respectively.

The Profit Sharing Plan held 2.2 million shares, with
a fair value of $83.1 million, of the Company’s stock at November 30,
2000. Dividends paid on these shares in 2000 were $1.7 million.

 

 

EXHIBIT B

 

8. OTHER
POSTRETIREMENT BENEFITS

 

The Company’s other
postretirement benefit expense follows:

 

	
  (millions)

  	
   

  	
  2000

  	
   

  	
  1999

  	
   

  	
  1998

  	
   

  
	
  Other postretirement benefits

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Service cost

  	
   

  	
  $

  	
  2.4

  	
   

  	
  $

  	
  2.6

  	
   

  	
  $

  	
  2.1

  	
   

  
	
  Interest cost

  	
   

  	
  5.3

  	
   

  	
  4.9

  	
   

  	
  4.4

  	
   

  
	
  Amortization of
  prior service cost

  	
   

  	
  (.7

  	
  )

  	
  (.1

  	
  )

  	
  (.1

  	
  )

  
	
  Accelerated
  recognition of prior unrecognized service cost

  	
   

  	
  (.6

  	
  )

  	
  —

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
  $

  	
  6.4

  	
   

  	
  $

  	
  7.4

  	
   

  	
  $

  	
  6.4

  	
   

  
												

 

Rollforwards of the benefit obligation, fair value of
plan assets and a reconciliation of the plan’s funded status at
November 30, the measurement date, follow:

 

	
  (millions)

  	
   

  	
  2000

  	
   

  	
  1999

  	
   

  
	
  Change in
  benefit obligation

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Beginning of the
  year

  	
   

  	
  $

  	
  65.1

  	
   

  	
  $

  	
  69.8

  	
   

  
	
  Service cost

  	
   

  	
  2.4

  	
   

  	
  2.6

  	
   

  
	
  Interest cost

  	
   

  	
  5.3

  	
   

  	
  4.9

  	
   

  
	
  Employee contributions

  	
   

  	
  1.7

  	
   

  	
  1.6

  	
   

  
	
  Plan changes

  	
   

  	
  —

  	
   

  	
  (6.1

  	
  )

  
	
  Actuarial loss
  (gain)

  	
   

  	
  2.0

  	
   

  	
  (2.7

  	
  )

  
	
  Benefits paid

  	
   

  	
  (5.2

  	
  )

  	
  (5.0

  	
  )

  
	
  End of the year

  	
   

  	
  $

  	
  71.3

  	
   

  	
  $

  	
  65.1

  	
   

  
	
  Change in fair
  value of plan assets

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Beginning of the
  year

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  
	
  Employer
  contributions

  	
   

  	
  3.5

  	
   

  	
  3.4

  	
   

  
	
  Employee
  contributions

  	
   

  	
  1.7

  	
   

  	
  1.6

  	
   

  
	
  Benefits paid

  	
   

  	
  (5.2

  	
  )

  	
  (5.0

  	
  )

  
	
  End of the year

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  
	
  Reconciliation
  of funded status

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Funded status

  	
   

  	
  $

  	
  (71.3

  	
  )

  	
  $

  	
  (65.1

  	
  )

  
	
  Unrecognized net
  actuarial loss (gain)

  	
   

  	
  1.8

  	
   

  	
  (.2

  	
  )

  
	
  Unrecognized
  prior service cost

  	
   

  	
  (6.0

  	
  )

  	
  (7.3

  	
  )

  
	
  Other
  postretirement benefit liability

  	
   

  	
  $

  	
  (75.5

  	
  )

  	
  $

  	
  (72.6

  	
  )

  
									

 

The assumed weighted-average discount rates were 8.0%
for 2000 and 1999, respectively.

The assumed annual rate of increase in the cost of
covered health care benefits is 7.65% for 2000. It is assumed to decrease
gradually to 5.25% in the year 2007 and remain at that level thereafter.
Changing the assumed health care cost trend would have the following effect:

 

	
  (millions)

  	
   

  	
  1-Percentage-

  Point Increase

  	
   

  	
  1-Percentage-

  Point Decrease

  	
   

  
	
  Effect on
  benefit obligation as of November 30, 2000

  	
   

  	
  $

  	
  8.0

  	
   

  	
  $

  	
  (7.0

  	
  )

  
	
  Effect on total
  of service and interest cost components in 2000

  	
   

  	
  $

  	
  1.0

  	
   

  	
  $

  	
  (.8

  	
  )

  

 

 

FORM OF
REVOLVING LOAN BORROWING REQUEST

 

Wachovia,
N.A., as Administrative Agent

191
Peachtree Street

Mail
Code:  GA-31273

Atlanta,
Georgia  30303

 

Attention:  Michael Adams

 

McCormick & Company, Incorporated

 

Gentlemen
and Ladies:

 

This Revolving Loan Borrowing
Request is delivered to you pursuant to clause (b) of Section 2.1
of the 364-Day Credit Agreement, dated as of June 19, 2001 (as amended or
modified from time to time, the “Credit Agreement”), among McCormick
& Company, Incorporated, a Maryland corporation (the “Borrower”),
the Lenders now or hereafter parties thereto and Wachovia, N.A., as
administrative agent (the “Agent”). 
Unless otherwise defined herein or the context otherwise requires, terms
used herein have the meanings provided in the Credit Agreement.

 

The Borrower hereby requests
that a Revolving Loan Borrowing be made in the aggregate principal amount of
[$U.S.] [£] [DM] [¥] [Euro]
                                
on
                                   ,
           as [a Base Rate
Loan] [a LIBO Rate Loan having an interest period of
           months].

 

The Borrower hereby certifies
and warrants that on the date the Revolving Loan Borrowing requested hereby is
made (both before and after giving effect to such Revolving Loan Borrowing);

 

(a)                                  the representations and warranties set forth in Article VI
of the Credit Agreement are and will be true and correct as if then made
pursuant to Section 5.2.1 of the Credit Agreement;

 

(b)                                 no Default or Event of Default has occurred and
is continuing or will have occurred and be continuing; and

 

(c)                                  the aggregate amount of the requested Revolving
Loan Borrowing and all other Loans outstanding on the date of the requested
Revolving Loan Borrowing does not and will not exceed the Commitment Amount.

 

The undersigned hereby confirms
that the requested Revolving Loan Borrowing is to be made available to it in
accordance with Section 2.1 of the Credit Agreement.

 

The Borrower agrees that if
prior to the time of the Borrowing requested hereby any matter certified to
herein by it will not be true and correct at such time as if then made, it will

 

Exhibit B-1

Page 1 of 2

 

immediately so notify the Agent.  Except to the extent, if any, that prior to
the time of the Revolving Loan Borrowing requested hereby the Agent shall
receive written notice to the contrary from the Borrower, each matter certified
to herein shall be deemed once again to be certified an true and correct at the
date of such Borrowing as if then made.

 

Please wire transfer the
proceeds of the Revolving Loan Borrowing to the following account of the
Borrower:  Account No.
                                       ,
(Name and address of depository bank).

 

The Borrower has caused this
Revolving Loan Borrowing Request to be executed and delivered, and the
certificate and warranties contained herein to be made, by its duly Authorized
Officer this
             
day of
                                   ,
       .

 

	
   

  	
  McCORMICK
  & COMPANY, INCORPORATED

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

Exhibit B-1

Page 2 of 2

 

FORM OF COMPETITIVE BID LOAN
BORROWING REQUEST

 

Wachovia,
N.A., as Administrative Agent

191
Peachtree Street

Mail
Code:  GA-31273

Atlanta,
Georgia  30303

 

Attention:  Michael Adams

 

McCormick & Company, Incorporated

 

Gentlemen
and Ladies:

 

This Competitive Bid Loan
Borrowing Request is delivered to you pursuant to clause (a) of Section 2.3
of the 364-Day Credit Agreement, dated as of June 19, 2001 (as amended or
modified from time to time, the “Credit Agreement”), among McCormick
& Company, Incorporated, a Maryland corporation (the “Borrower”),
the Lenders now or hereafter parties thereto and Wachovia, N.A., as
administrative agent (the “Agent”). 
Unless otherwise defined herein or the context otherwise requires, terms
used herein have the meanings provided in the Credit Agreement.

 

The Borrower hereby proposes
that a Competitive Bid Loan Borrowing be made on the following terms:

 

 

A.                                   1.                                       Date of Competitive Bid Loan

Borrowing:*

 

2.                                       Amount of Competitive Bid Loan

Borrowing:** [U.S.$] [£] [DM] [¥] [Euro]

[Non-Major Alternate Currency]

 

 

3.                                       The Competitive Bid Loan will be based on a

[LIBO Rate Bid Margin] [Fixed Rate]

 

4.                                       Competitive Bid Loan Maturity Date for

repayment of such Competitive Bid Loan***

 

 

5.                                       Competitive Bid Loan Interest Payment

 

*                                         Must
be at least five Business Days after the delivery of this competitive Bid Loan
Borrowing Request.

**                                  The
amount shall be in a minimum principal amount of $5,000,000 and in an integral
multiple of $1,000,000.

***                           Which
maturity date may not be earlier than the date occurring seven days after the
date of such Competitive Bid Loan Borrowing or later than the date occurring
183 days after the date of such Competitive Bid Loan Borrowing.

 

Exhibit B-2

Page 1 of 3

 

Date(s):  

 

****B.         1.                                       Date of Competitive Bid Loan Borrowing:

 

 

2.                                       Amount of Competitive Bid Loan Borrowing:

[U.S.$] [£]  
[DM]   [¥]    [Euro]

[Non-Major Alternate Currency]

 

 

3.                                       The Competitive Bid Loan will be based on a

[LIBO Rate Bid Margin] [Fixed Rate]

 

4.                                       Competitive Bid Loan Maturity Date for

repayment of such Competitive Bid Loan:

 

 

5.                                       Competitive Bid Loan Interest Payment

Date(s):  

 

C.                                     1.                                       Date of Competitive Bid Loan Borrowing:

 

 

2.                                       Amount of Competitive Bid Loan Borrowing:

[U.S.$]  
[£]   [DM]   [¥]  
[Euro]

[Non-Major Alternate Currency]

 

 

3.                                       The Competitive Bid Loan will be based on a

[LIBO Rate Bid Margin] [Fixed Rate]

 

4.                                       Competitive Bid Loan Maturity Date for

repayment of such Competitive Bid Loan:

 

 

5.                                       Competitive Bid Loan Interest Payment

Date(s):  

 

The Borrower hereby certifies
and warrants that on the date the Competitive Bid Loan Borrowing proposed
hereby is made (both before and after giving effect to such Borrowing):

 

(a)                                  the representative and warranties set forth in Article VI
of the Credit Agreement are and will be true and correct as if then made
pursuant to Section 5.2.1 of the Credit Agreement;

 

****                    Insert if more
than one Competitive Bid Loan Borrowing is requested.

 

Exhibit B-2

Page 2 of 3

 

(b)                                 no Default or Event of Default has occurred and
is continuing or will have occurred and be continuing; and

 

(c)                                  the aggregate amount of the proposed Competitive
Bid Loan Borrowing and all other Loans outstanding after giving effect to such
Competitive Bid Loan (and any prepayments required pursuant to Section 2.3
of the Credit Agreement) will not exceed the Commitment Amount.

 

The undersigned hereby confirms
that the proposed Competitive Bid Loan Borrowing is to be made available to it
in accordance with Section 2.3 of the Credit Agreement.

 

The Borrower agrees that if
prior to the time of the Competitive Bid Loan Borrowing requested hereby any
matter certified to herein by it will not be true and correct at such time as
if then made, it will immediately so notify the Agent.  Except to the extent, if any, that prior to
the time of the Competitive Bid Loan Borrowing proposed hereby the Agent shall
receive written notice to the contrary from the Borrower, each matter certified
to herein shall be deemed once again to be certified as true and correct at the
date of such Borrowing as if then made.

 

The Borrower has caused this
Competitive Bid Loan Borrowing Request to be executed and delivered, and the
certification and warranties contained herein to be made, by its duly
Authorized Officer this
                 
day of                         ,
     .

 

	
   

  	
  McCORMICK
  & COMPANY, INCORPORATED

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Title:

  
				

 

Exhibit B-2

Page 3 of 3

 

EXHIBIT C

EXISTING LIENS

 

(as of 5/31/01,
in thousands)

 

	
   

  	
   

  	
  Current

  	
   

  	
  Long Term

  	
   

  	
  Total

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Capital Lease Liability

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  McCormick
  Foods

  Australia

  	
   

  	
  55

  	
   

  	
  98

  	
   

  	
  153

  	
   

  	
  Autos

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  McCormick Pesa

  	
   

  	
  340

  	
   

  	
  352

  	
   

  	
  692

  	
   

  	
  Computers

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Industrial Revenue Bonds

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tubed
  Products

  (Oxnard, California)

  	
   

  	
  0

  	
   

  	
  3,050

  	
   

  	
  3,050

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Mortgages

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (none
  outstanding)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

FORM OF INVITATION FOR BID LOAN QUOTES

 

	
  [NAME
  OF LENDER]

  	
   

  	
  [DATE]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
   

  	
   

  

 

Invitation for Bid Loan Quotes to

McCormick & Company, Incorporated (the “Borrower”)

 

Pursuant to clause (b) of
Section 2.3 of the 364-Day Credit Agreement dated as of
June 19, 2001 (as amended or modified from time to time, the “Credit
Agreement”) (unless otherwise defined herein or the context otherwise
requires, terms used herein have the meanings provided in the Credit
Agreement)), among McCormick & Company, Incorporated, a Maryland
corporation (the “Borrower”), Wachovia, N.A., as administrative agent
(the “Agent”) and the Lenders now or hereafter parties thereto, we are
pleased on behalf of the Borrower to invite you to submit Bid Loan Quotes to
the Borrower for the following proposed Competitive Bid Loan(s):

 

*1.                                Date of Proposed Competitive Bid Loan: 
                               
        ,
         .

 

2.                                       Principal Amount

[U.S.$]
[£] [DM] [¥] [Euro] [Non-Major Alternate Currency]
                                         .

 

 

3.                                       The Competitive Bid Loan Maturity Date will be
                                           ,
         .

 

 

4.                                       The Competitive Bid Loan Interest Payment Date
will be
                                           ,
         .

 

PLEASE RESPOND TO THIS INVITATION BY NO
LATER THAN
[                      ]
(NEW YORK CITY TIME) ON                                            ,
         .

 

	
   

  	
  Wachovia,
  N.A., as Administrative Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

*                                         Information
to be repeated if multiple Competitive Bid Loans have been made in respect of a
single Competitive Bid Loan Borrowing Request.

 

Exhibit C-1

Page 1 of 1

 

FORM OF COMPETITIVE BID LOAN OFFER

 

Date: 
                                   ,
     

 

Wachovia,
N.A., as Administrative Agent

191
Peachtree Street

Mail
Code:  GA-31273

Atlanta,
Georgia  30303

 

Attention:  Michael Adams

 

McCormick & Company, Incorporated

 

Gentlemen:

 

This Competitive Bid Loan Offer
in delivered to you pursuant to clause (c) of Section 2.3 of
the 364-Day Credit Agreement, dated as of June 19, 2001 (as amended or
modified from time to time, the “Credit Agreement”), among McCormick
& Company, Incorporated, a Maryland corporation (the “Borrower”),
Wachovia, N.A., as administrative agent (the “Agent”), and the Lenders
now or hereafter parties thereto. 
Unless otherwise defined herein or the context otherwise requires, terms
used herein have the meanings provided in the Credit Agreement.

 

The undersigned Lender hereby
makes a Competitive Bid Loan offer in response to the Competitive Bid Loan
Borrowing Request made by the Borrower on
[                            ,
       ], and in that connection, sets forth
the terms on which such Competitive Bid Loan Offer is made:

 

1*.                                Date of Competitive Bid Loan: 
                                             ,
            

 

2.                                       Principal amount of

Competitive Bid Loan

[U.S.$] [£] [DM] [¥] [Euro]

[Non-Major Alternate 

Currency]

 

3.                                       Competitive Bid Loan

Maturity will be          
                                             ,
            **

 

4.                                       Competitive Bid Loan Interest

Payment Date(s) will
be                                             ,
            ***

                                   ,
            

 

*                                         Information
to be repeated if multiple Competitive Bid Loans have been made in respect of a
single Competitive Bid Loan Borrowing Request.

**                                  Insert
the appropriate date specified in the Competitive Bid Loan Borrowing Request
described in the second paragraph hereof.

***                           Insert
the appropriate date(s) specified in the Competitive Bid Loan Borrowing Request
described in the second paragraph hereof.

 

Exhibit C-2

Page 1 of 2

 

5.                                       Competitive Bid
Rate:                                     
% per annum

[LIBO Rate Bid Margin]

[Fixed Rate]

 

We understand and agree that the
offer(s) set forth above, subject to the satisfaction of the applicable
conditions set forth in the Credit Agreement irrevocably obligates us to make
the Competitive Bid Loan(s) for which any offer(s) are accepted, in whole or in
part.

 

	
   

  	
  [NAME
  OF LENDER]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
					

 

Exhibit C-2

Page 2 of 2

 

FORM OF COMPETITIVE BID LOAN
ACCEPTANCE

 

Wachovia,
N.A., as Administrative Agent

191
Peachtree Street

Mail
Code:  GA-31273

Atlanta,
Georgia  30303

 

Attention:  Michael Adams

 

McCormick & Company, Incorporated

 

Gentlemen
and Ladies:

 

This Competitive Bid Loan
Acceptance is delivered to you pursuant to clause (e) of Section 2.3
of the 364-Day Credit Agreement, dated as of June 19, 2001 (as amended or
modified from time to time, the “Credit Agreement”), among McCormick
& Company, Incorporated a Maryland corporation (the “Borrower”),
Wachovia, N.A., as administrative agent (the “Agent”) and the Lenders
now or hereafter parties thereto. 
Unless otherwise defined herein or the context otherwise requires, terms
used herein have the meanings provided in the Credit Agreement.

 

*The Borrower hereby accepts the
Competitive Bid Loan Offer, dated
                            ,
         , made by [NAME OF
LENDER] on the following terms:

 

1.                                       Date of Competitive Bid
Loan:**                                    ,
          

 

2.                                       Principal amount of Competitive Bid Loan

[U.S.$] [ £ ] [DM] [ ¥ ] [Euro]

[Non-Major Alternate Currency]

 

3.                                       Competitive Bid Loan Maturity Date:

 

4.                                       Competitive Bid Rate:

[LIBO Rate Bid Margin Rate
          % per annum]

[Fixed Rate           % per
annum]

 

5.                                       Competitive Bid Loan Interest Payment

Date(s): **                                              
                              ,
        

                                                                
                              ,
        

 

*                                         Repeat
this paragraph (and information contained therein) for each Lender whose
Competitive Bid Loan Offer is accepted by the Borrower or for multiple
Competitive Bid Loans.

**                                  Terms
must conform to the Competitive Bid Loan Borrowing Request referred to in the
Competitive Bid Loan Offer relating to such Borrowing.

 

Exhibit C-3

Page 1 of 2

 

We undersigned hereby confirms
that it accepted such Competitive Bid Loan Offer in accordance with clause (e)(ii)
of Section 2.3 of the Credit Agreement.

 

The Borrower hereby certifies
and warrants that on the date the Competitive Bid Loan Borrowing proposed
hereby is made (both before and after giving effect to such Borrowing):

 

(a)                                  the representative and warranties set forth in Article VI
of the Credit Agreement are and will be true and correct as if then made
pursuant to Section 5.2.1 of the Credit Agreement;

 

(b)                                 no Default or Event of Default has occurred and
is continuing or will have occurred and be continuing; and

 

(c)                                  the aggregate amount of the proposed Competitive
Bid Loan Borrowing and all other Loans outstanding after giving effect to such
Competitive Bid Loan (and any prepayments required pursuant to Section 2.3
of the Credit Agreement) will not exceed the Commitment Amount.

 

Please wire transfer the
proceeds of the Competitive Bid Loan(s) to the following account of the
Borrower: Account No.
                         
[name and address of depository bank].

 

The
Borrower has caused this Competitive Bid Loan Acceptance to be executed and
delivered, and the certification and warranties contained herein to be made, by
its duly Authorized Officer this
           day of
                             ,
        .

 

	
   

  	
  McCORMICK
  & COMPANY, INCORPORATED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Title:

  
				

 

Exhibit C-3

Page 2 of 2

 

FORM OF COMPETITIVE BID LOAN
BORROWING NOTICE

 

[Date]

 

Wachovia,
N.A., as Administrative Agent

191
Peachtree Street

Mail
Code:  GA-31273

Atlanta,
Georgia  30303

 

Attention:  Michael Adams

 

McCormick & Company, Incorporated

 

Gentlemen
and Ladies:

 

This Competitive Bid Loan
Borrowing Notice is delivered to you pursuant to clause (f) of Section 2.3
of the 364-Day Credit Agreement, dated as of June 19, 2001 (as amended or
modified from time to time, the “Credit Agreement”), among McCormick
& Company, Incorporated, a Maryland corporation (the “Borrower”),
Wachovia, N.A., as administrative agent (the “Agent”), and the Lenders
now or hereafter parties thereto. 
Unless otherwise defined herein or the context otherwise requires, terms
used herein have the meanings provided in the Credit Agreement.

 

The Borrower delivered to the
Agent a Competitive Bid Loan Borrowing Request on
[                           ,
         ].  In that connection, a Competitive Bid Loan
Borrowing was made on
                           ,
          (the “Competitive Bid
Loan Borrowing Date”) with the following terms:

 

*1.                                Principal amount of Competitive Bid Loan Borrowing:

[Name
of Lender]

 

[U.S.$]
[ £ ] [ DM ] [ ¥ ] [Euro]

[Non-Major
Alternate Currency]

 

[Name
of Lender]

 

[U.S.$]
[ £ ] [ DM ] [ ¥ ] [Euro]

[Non-Major
Alternate Currency]

 

2.                                       Amount of, and Competitive Bid Rate for [LIBO
Rate Bid Margin] [Fixed Rate], each Competitive Bid Loan in such Competitive
Bid Loan Borrowing:

 

*                                         Information
to be repeated if multiple Competitive Bid Loans have been made in respect of a
single Competitive Bid Loan Borrowing Request.

 

Exhibit C-4

Page 1 of 2

 

[U.S.$]
[ £ ] [ DM ] [ ¥ ] [Euro]

[Non-Major
Alternate
Currency]                      
at
               %

per
annum in respect of Competitive

Bid
Loan made by [Name of Lender]

 

[U.S.$]
[ £ ] [ DM ] [ ¥ ] [Euro]

[Non-Major
Alternate
Currency]                      
at
               %

 

per
annum in respect of competitive

Bid
Loan made by [Name of Lender]

 

3.                                       Competitive Bid Loan Maturity
Date:                               ,
       

 

4.                                       Competitive Bid Loan
Interest                                          ,
       

Payment
Date(s):                                                               ,
       

 

5.                                       Competitive Bid Outstanding

Balance                                                                                       **

 

The Borrower hereby confirms to
the Agent that the Competitive Bid Loan Offer received by the Borrower in
connection with the above-described Competitive Bid Loan Borrowing Request were
accepted or rejected in accordance with clause (e) of Section 2.3
of the Credit Agreement.

 

 

	
   

  	
  McCORMICK
  & COMPANY, INCORPORATED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
				

 

**                                  Insert
the aggregate principal amount of all outstanding Competitive Bid Loans
immediately after giving effect to the Competitive Bid Loan Borrowing.

 

Exhibit C-4

Page 2 of 2

 

FORM OF LENDER ASSIGNMENT AGREEMENT

 

[Date]

 

TO:                            McCormick & Company, Incorporated

18
Loveton Circle

Sparks,
Maryland 21152

Attention:
Treasurer

 

To:                              Wachovia, N.A., as Administrative Agent

191
Peachtree Street

Mail
Code:  GA-31273

Atlanta,
Georgia  30303

Attention:  Michael Adams

 

McCormick & Company, Incorporated

 

Gentlemen
and Ladies:

 

We refer to clause (d) of
Section 10.11.1 of the 364-Day Credit Agreement, dated as of
June 19, 2001 (as amended from time to time, the “Credit Agreement”),
among McCormick & Company, Incorporated, a Maryland corporation (the “Borrower”),
the various financial institutions as are, or shall from time to time become,
parties thereto (the “Lenders”) and Wachovia, N.A., as administrative
agent (the “Agent”).  Unless
otherwise defined herein or the context otherwise requires, terms used herein
have the meanings provided in the Credit Agreement.

 

This Agreement is delivered to
you pursuant to clause (d) of Section 10.11.1 of the Credit
Agreement and also constitutes notice to each of you, pursuant to clause (c)
of Section 10.11.1 of the Credit Agreement, of the assignment and
delegation to
                                  
(the “Assignee”) of
          % of the Revolving
Loans and           % of the
Competitive Bid Loans of
                                         
(the “Assignor”) outstanding under the Credit Agreement on the date
hereof.  After giving effect to the
foregoing assignment and delegation, the Assignor’s and the Assignee’s
Percentages for the purposes of the Credit Agreement are set forth opposite
such Person’s name on the signature pages hereof.

 

[Add paragraph dealing with accrued
interest and fees with respect to Loans assigned.]

 

The Assignee hereby acknowledges
and confirms that it has received a copy of the Credit Agreement and the
exhibits related thereto, together with copies of the documents which were
required to be delivered under the Credit Agreement as a condition to the
making of the Loans thereunder. The Assignee further confirms and agrees that
in becoming a Lender and in making its Loans under the Credit Agreement, such
actions have and will be made without recourse to, or representation or
warranty by the Agent.

 

Exhibit D

Page 1 of 3

 

Except as otherwise provided in
the Credit Agreement, effective as of the date of acceptance hereof by the
Agent:

 

(a)                                  the Assignee

 

(i)                                     shall be deemed automatically to have become a
party to the Credit Agreement, have all the rights and obligations of a
“Lender” under the Credit Agreement and the other Loan Documents as if it were
an original signatory thereto to the extent specified in the second paragraph
hereof; and

 

(ii)                                  agrees to be bound by the terms and conditions
set forth in the Credit Agreement and the other Loan Documents as if it were an
original signatory thereto; and

 

(b)                                 the Assignor shall be released from its
obligations under the Credit Agreement and the other Loan Documents to the
extent specified in the second paragraph hereof but shall continue to be
entitled to the benefits of the indemnity provisions set forth in the Credit
Agreement for the period prior to such acceptance.

 

The Assignor and the Assignee
hereby agree that the [Assignor] [Assignee] will pay to the Agent the
processing fee referred to in Section 10.11.1 of the Credit
Agreement upon the delivery hereof.

 

The Assignee hereby advises each
of you of the following administrative details with respect to the assigned
Loans and requests the Agent to acknowledge receipt of this document:

 

(A)                              Address for Notices:

 

Institution
Name:

 

Attention:

 

Domestic
Office:

 

Telephone:

 

Facsimile:

 

LIBOR
Office:

 

Telephone:

 

Facsimile:

 

(B)                                Payment Instructions:

 

The Assignee agrees to furnish
the tax form required by the last sentence of Section 4.6 (if so
required) of the Credit Agreement no later than the date of acceptance hereof
by the Agent.

 

Exhibit D

Page 2 of 3

 

This Agreement may be executed
by the Assignor and Assignee in separate counterparts, each of which when so
executed and delivered shall be deemed to be an original and all of which taken
together shall constitute one and the same Agreement.

 

	
  Adjusted
  Percentage

  	
   

  	
  [ASSIGNOR]

  
	
   

  	
   

  	
   

  
	
  %

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
  Percentage

  	
   

  	
  [ASSIGNEE]

  
	
   

  	
   

  	
   

  
	
  %

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
  Accepted
  and Acknowledged  this
            day of
                         ,
               

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  McCORMICK
  & COMPANY, INCORPORATED

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  
	
   

  
	
   

  
	
  WACHOVIA,
  N.A., as Administrative Agent

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  
								

 

Exhibit D

Page 3 of 3

 

FORM OF COMPLIANCE CERTIFICATE

 

	
  To each of the
  financial institutions party to the Credit Agreement hereinafter referred to
  and Wachovia, N.A., as Administrative Agent for the Lenders

  	
   

  

 

Re:                               McCormick
& Company, Incorporated 

 

Ladies and Gentlemen:

 

This Compliance Certificate is being delivered
pursuant to the 364-Day Credit Agreement, dated as of June 19, 2001 (as
amended or modified from time to time, the “Credit Agreement”), among
McCormick & Company, Incorporated, a Maryland corporation (the “Borrower”),
the various financial institutions as are or may, from time to time, become
parties thereto (the “Lenders”) and Wachovia, N.A., as administrative
agent for the Lenders (the “Agent”). 
Capitalized terms used herein without definition shall have the meanings
assigned to such terms in Section 1.1 of the Credit Agreement.  All computations performed herein shall
conform to the method of computation required by the Credit Agreement.

 

The Borrower hereby certifies, represents and warrants
that as of
                       ,
           (the “Computation
Date”):

 

1.                                       Indebtedness
of the Subsidiaries did not exceed
           % of
Consolidated Net Tangible Assets (as computed on Attachment 1 hereto).

 

Under Section 2.2
of the Credit Agreement, Indebtedness of Subsidiaries may not exceed 25% of
Consolidated Net Tangible Assets.

 

2.                                       The
sum of (a) Indebtedness of the Borrower and its Subsidiaries secured by Liens
described in clauses (b), (c) and (k) of Section 7.2.3 of the
Credit Agreement (excluding liens described in clauses (d) through (j) of Section 7.2.3)
and (b) the Attributable Value of all Sale-Leaseback Transactions entered into
by the Borrower and its Subsidiaries in the aggregate does not exceed
       % of Consolidated Net Tangible Assets
(as computed on Attachment 1 hereto).

 

Section 7.2.3
(k) of the Credit Agreement does not permit the sum of (i) Indebtedness of the
Borrower and its Subsidiaries secured by Liens described in clauses (b), (c)
and (k) of Section 7.2.3 (excluding Liens described in clauses
(d)  thru (j) of Section 7.2.3) and (ii) the Attributable
Value of all Sale-Leaseback Transactions entered into by the Borrower and its
Subsidiaries in the aggregate to exceed 15% of Consolidated Net Tangible
Assets.

 

3.                                       The
aggregate book value of all sales of assets or stock or liquidations of
Subsidiaries do not, during the most recent period of 12 consecutive months,
exceed       % of Consolidated Net Tangible
Assets as at the end of the Borrower’s immediately preceding Fiscal Year (as
computed on Attachment 1 hereto).

 

Exhibit E

Page 1 of 3

 

Section 7.2.4
of the Credit Agreement prohibits sales of assets or stock to anyone other than
the Borrower or wholly-owned Subsidiaries if the aggregate book value of such
sales or liquidation of Subsidiaries during the most recent period of 12
consecutive months would exceed 20% of Consolidated Net Tangible Assets as at
the end of the Borrower’s immediately preceding fiscal year.

 

4.                                       The
ratio of EBIT to Interest Expense was
                        :
1:00 (as computed on Attachment 1 hereto).

 

The minimum ratio of EBIT
to Interest Expense permitted pursuant to Section 7.2.5 of the
Credit Agreement is 2.50:1.00.

 

5.                                       No
Default or Event of Default has occurred and is continuing.

 

IN WITNESS WHEREOF, the Borrower has caused this
Certificate to be executed and delivered by its duly Authorized Officer on this
           day of
                                     ,
              .

 

	
   

  	
  McCORMICK
  & COMPANY, 

  INCORPORATED

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Title:

  

 

Exhibit E

Page 2 of 3

 

ATTACHMENT 1

 

	
  1.

  	
  Indebtedness of
  Subsidiaries (Section 7.2.2).

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  a.                                       Total
  Amount of Subsidiary 

  Indebtedness 

  	
   

  	
  $

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  b.                                      Amount
  of Consolidated Net Tangible Assets 

  	
   

  	
  $

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  c.                                       Subsidiary
  Indebtedness is equal to the following percentage of Consolidated Net
  Tangible Assets

  	
   

  	
  $

  	
   

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
  Liens (Section 7.2.3)  

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  a.                                       Indebtedness
  of the Borrower and its Subsidiaries (other than intercompany debt) secured
  by Liens described in clauses (b), (c) and (k) of Section 7.2.3
  (excluding Liens described in clauses (d) through (j) of Section 7.2.3

  	
   

  	
  $

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  b.                                      Attributable
  Value of Sale-Leaseback Transactions of the Borrower and its Subsidiaries in
  the aggregate

  	
   

  	
  $

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (Sum of Items a. and
  b.)

  	
   

  	
  $

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  c.                                       Amount
  of Consolidated Net Tangible Assets

  	
   

  	
  $

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  d.                                      The
  sum of Items a. and b. is equal to the following percentage of Item c.

  	
   

  	
  $

  	
   

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
  Sale of Assets (Section 7.2.4)
  

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  a.                                       The
  aggregate book value of sales of assets or stock or liquidation of
  Subsidiaries by the Borrower and its Subsidiaries during the immediately
  preceding 12 months)

  	
   

  	
  $

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  b.                                      Consolidated
  Net Tangible Assets as at the end of the Borrower’s immediately preceding
  Fiscal Year  

  	
   

  	
  $

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  c.                                       Item
  a. is equal to the following percentage of Item b.

  	
   

  	
  $

  	
   

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
  EBIT to Interest
  Expense Ratio (Section 7.2.5)

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  a.                                       Net
  Income (excluding any one-time non-recurring charges)  

  	
   

  	
  $

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  b.                                      Interest
  Expense  

  	
   

  	
  $

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  c.                                       Charges
  for federal, state, local and foreign income taxes.

  	
   

  	
  $

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Total for EBIT

  	
   

  	
  $

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  :1.00

  
	
   

  	
  d.                                      EBIT
  to Interest Expense ratio (EBIT divided by Interest Expense)

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Exhibit E

Page 3 of 3

 

FORM OF CONTINUATION/CONVERSION NOTICE

 

Wachovia,
N.A., as Administrative Agent

191
Peachtree Street

Mail
Code:  GA-31273

Atlanta,
Georgia  30303

Attention:  Michael Adams

Re:                               McCormick
& Company, Incorporated

 

Gentlemen and Ladies:

 

This Continuation/Conversion Notice is delivered to
you pursuant to Section 2.4 of the 364-Day Credit Agreement, dated
as of June 19, 2001 (as amended or modified from time to time, the “Credit
Agreement”), among McCormick & Company, Incorporated, a Maryland
corporation (the “Borrower”), the various financial institutions from
time to time parties thereto (the “Lenders”) and Wachovia, N.A., as
administrative agent (the “Agent”). 
Unless otherwise defined herein or the context otherwise requires, terms
used herein have the meanings provided in the Credit Agreement.

 

The Borrower hereby requests that on
                                     ,
                 .

 

(1)                                  [U.S.$]
[£] [DM] [¥] [Euro]
                                   
of the presently outstanding principal amount of the Loans originally made on
                           ,
             [and
[U.S.$] [£] [DM] [¥] [Euro] of the presently outstanding principal amount of
the Loans originally made on 
                           ,
            ],

 

(2)                                  and
all presently being maintained as (1) [Base Rate Loans] [LIBO Rate Loans
denominated in Dollars] [LIBO Rate Loans denominated in an Alternate Currency],

 

(3)                                  be
[converted into] [continued as],

 

(4)                                  (2)[LIBO
Rate Loans denominated in Dollars having an Interest Period of
                  
months] [LIBO Rate Loans denominated in an Alternate Currency having an Interest
Period of
                
months] [Base Rate Loans](3).

 

(1) Select appropriate interest rate option.

(2) Insert appropriate interest rate option.

(3) Dollars only.

 

Exhibit F

Page 1 of 2

 

The Borrower hereby:

 

(a)                                  certifies
and warrants that no Default has occurred and is continuing; and

 

(b)                                 agrees
that if prior to the time of such continuation or conversion any matter
certified to herein by it will not be true and correct at such time as if then
made, it will immediately so notify the Agent.

 

Except to the extent, if
any, that prior to the time of the continuation or conversion requested hereby
the Agent shall receive written notice to the contrary from the Borrower, each
matter certified to herein shall be deemed to be certified at the date of such
continuation or conversion as if then made.

 

The Borrower has caused this Continuation/Conversion
Notice to be executed and delivered, and the certification and warranties
contained herein to be made, by its Authorized Officer this
            day of
                        ,
           .

 

	
   

  	
  McCORMICK
  & COMPANY, 

  INCORPORATED

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Title:

  

 

Exhibit F

Page 2 of 2

 

FORM OF OPINION OF COUNSEL TO THE
BORROWER

 

To each of the Lenders
party

to the Credit Agreement referred 

to below, and Wachovia, N.A.

as Administrative Agent

 

[Date]

 

Ladies and Gentlemen:

 

I am General Counsel of McCormick & Company,
Incorporated (the “Borrower”), a Maryland corporation, and have acted as
counsel in connection with the execution and delivery of that certain 364-Day
Credit Agreement, dated as of June 19, 2001 (the “Credit Agreement”),
among the Borrower, Wachovia, N.A., as administrative agent (the “Agent”), and
the various financial institutions parties thereto (the “Lenders”).  This opinion letter is delivered to you
pursuant to Section 5.1.7 of the Credit Agreement.  Capitalized terms used herein that are not
defined herein have the respective specified meanings in the Credit Agreement.

 

In rendering the opinions set forth below, I or a
member of my staff have examined executed originals of the Credit Agreement and
the Notes (collectively, the “Subject Documents”); the Articles of
Incorporation of the Borrower and all amendments thereto (the “Charter”); the
Bylaws of the Borrower and all amendments thereto (the “Bylaws”); and a
certificate issued by the Maryland Department of Assessments and Taxation,
dated June     , 2001, attesting to the continued
corporate existence and good standing of the Borrower in the State of
Maryland.  In addition, I or a member of
my staff have examined originals or photostatic or certified copies of certain
of the corporate records and documents of the Borrower and its Subsidiaries,
copies of public documents, certificates of officers of the Borrower and public
officials, and such other documents as I have deemed necessary and appropriate
as a basis for the opinions hereinafter set forth.

 

In my examination, I have assumed the genuineness of
all signatures (other than those of the Borrower), the legal capacity of
natural persons, the authenticity of all corporate records, documents,
instruments and certificates submitted to us as originals and the conformity to
authentic original corporate records, documents, instruments and certificates
of all corporate records, documents instruments and certificates submitted to
us as certified, conformed or photostatic copies.  As to questions of fact material to my opinions, I have relied
upon representations and warranties of the parties in the Subject Documents and
the other agreements and documents contemplated therein, and on certificates of
officers of the Borrower (including those delivered pursuant to the Credit
Agreement) and of public officials.

 

I have further assumed that you have the power and
authority and have taken the corporate action necessary to execute and deliver
the Credit Agreement and to hold the Notes and that no approvals, waivers,
filings, notices or consents, governmental or non-governmental, are required
for the valid execution, delivery and performance by you of the Credit
Agreement or to hold the Notes, and that the Credit Agreement executed by you
constitutes your legal, valid and binding obligation.

 

Exhibit G

Page 1 of 3

 

Based upon the foregoing and subject to the
qualifications set forth above and hereinafter, I am of the opinion that:

 

1.                                       The
Borrower is a corporation duly organized, validly existing and in good standing
under the laws of the State of Maryland.

 

2.                                       The
execution, delivery and performance by the Borrower of the Subject Documents
are within the Borrower’s corporate powers, have been duly authorized by all
necessary corporate action, and do not (i) contravene the Charter or the
By-laws, (ii) violate any Federal or Maryland law, rule or regulation
applicable to the Borrower (including, without limitation, Regulations U and X
of the Board of Governors of the Federal Reserve System, insofar as the
proceeds of the Loans are used solely for the purposes set forth in, and in
accordance with the provisions of, the Credit Agreement) or (iii) result in any
breach or violation of, or constitute a default under, any agreement or
instrument set forth on the attached certificate of the Borrower.  The Subject Documents have been duly
executed and delivered on behalf of the Borrower.

 

3.                                       Each
of the Subject Documents has been duly executed by the Borrower and constitutes
the legal, valid and binding obligation of the Borrower, enforceable against
the Borrower in accordance with its terms.

 

4.                                       No
authorization or approval or other action by, and no notice to or filing with,
any Federal or Maryland governmental authority or regulatory body (other than
any applicable securities law filings) is required on behalf of the Borrower
for the due execution, delivery or performance by the Borrower of any of the
Subject Documents.

 

5.                                       The
Borrower is not an “investment company” within the meaning of the Investment
Company Act of 1940, as amended, or 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 Company Act of 1935, as amended.

 

6.                                       There
is no pending or, to the best of my knowledge, threatened litigation, action,
proceeding or labor controversy affecting the Borrower or any of its
properties, business, assets or revenues which is likely to materially
adversely affect the financial condition or operations of the Borrower and its
Subsidiaries taken as a whole or which purports to affect the legality,
validity or enforceability of any of the Subject Documents to which the Borrower
is a party.

 

7.                                       The
New York governing law clauses of the Subject Documents, subjecting such
Subject Documents to the law of the State of New York, are valid under the laws
of the State of Maryland.

 

8.                                       Under
the law of the State of Maryland, the laws of the State of New York will be
applied to the Subject Documents, except to the extent that any term of such
documents or any provision of the law of the State of New York applicable to
such documents violates an important public policy of the State of Maryland.  We have no reason to believe that any such
term violates an important public policy of the State of Maryland.

 

Exhibit G

Page 2 of 3

 

The foregoing opinions are subject to the following
additional qualifications:

 

(a)                                  The
opinions expressed herein are limited to the laws and regulations of the United
States of America and the State of Maryland.

 

(b)                                 My
opinions regarding the enforceability of the Subject Documents are limited by
bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or
similar laws or decisions affecting the enforcement of debtors’ obligations and
creditors’ rights generally, and by general principles of equity and public
policy.  My opinions are also subject to
the effect of certain laws and judicial decisions which may limit the
enforceability of certain provisions of the Subject Documents, although such
limitations do not, in my judgment, make the remedies provided therein (taken
as a whole) inadequate for the practical realization of the benefits afforded thereby.

 

The opinions expressed herein are solely for your
benefit in connection with the performance of the Subject Documents, and
without my express prior written consent, this opinion letter may not be
circulated or furnished to or relied upon by any other person.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Robert W. Skelton

  
	
   

  	
  Vice President, General
  Counsel

  
	
   

  	
  & Secretary

  

 

Exhibit G

Page 3 of 3EXHIBIT
10(xiii)

 

 

 

 

U.S. $225,000,000

 

REVOLVING CREDIT AGREEMENT

 

dated as of June 19, 2001

 

among

 

McCORMICK & COMPANY,
INCORPORATED,

 

as the Borrower,

 

CERTAIN FINANCIAL INSTITUTIONS,

 

as the Lenders,

 

BANK OF AMERICA, N.A.,

as the Documentation Agent,

 

SUNTRUST BANK,

as the Syndication Agent

 

and

 

WACHOVIA, N.A.

as the Administrative Agent and Swing
Line Lender

 

 

BANC
OF AMERICA SECURITIES LLC

 

and

 

SUNTRUST EQUITABLE SECURITIES
CORPORATION

Lead Arrangers and Book Managers

 

 

TABLE OF CONTENTS

 

ARTICLE I

DEFINITIONS AND
ACCOUNTING TERMS

 

	
  SECTION 1.1.

  	
  Defined Terms

  
	
  SECTION 1.2.

  	
  Use of Defined Terms

  
	
  SECTION 1.3.

  	
  Cross-References

  
	
  SECTION 1.4.

  	
  Accounting and Financial Determinations

  
	
   

  	
   

  
	
  ARTICLE II

  MAKING THE
  LOANS

  
	
   

  	
   

  
	
  SECTION 2.1.

  	
  Revolving Loan Commitments and Borrowing
  Procedure.

  
	
  SECTION 2.2.

  	
  Reduction of the Commitment Amount

  
	
  SECTION 2.3.

  	
  Competitive Bid Loans

  
	
  SECTION 2.4.

  	
  Swing Line Loans.

  
	
  SECTION 2.5.

  	
  Continuation and Conversion Elections

  
	
  SECTION 2.6.

  	
  Funding

  
	
  SECTION 2.7.

  	
  Notes

  
	
  SECTION 2.8.

  	
  Multicurrency Loans.

  
	
  SECTION 2.8.1.

  	
  Notification of Request

  
	
  SECTION 2.8.2.

  	
  Availability

  
	
  SECTION 2.8.3.

  	
  Notification of Availability

  
	
  SECTION 2.8.4.

  	
  Consequences of Availability

  
	
  SECTION 2.8.5.

  	
  Unexpected Non-Availability

  
	
  SECTION 2.8.6.

  	
  Consequences of Non-Availability

  
	
   

  	
   

  
	
  ARTICLE III

  REPAYMENT, PREPAYMENTS,
  INTEREST AND FEES

  
	
   

  	
   

  
	
  SECTION 3.1.

  	
  Repayment.

  
	
  SECTION 3.2.

  	
  Prepayments.

  
	
  SECTION 3.3.

  	
  Interest Provisions

  
	
  SECTION 3.3.1.

  	
  Rates

  
	
  SECTION 3.3.2.

  	
  Post-Maturity Rates

  
	
  SECTION 3.3.3.

  	
  Payment Dates

  
	
  SECTION 3.3.4.

  	
  Interest Rate Determination

  
	
  SECTION 3.4.

  	
  Fees

  
	
  SECTION 3.4.1.

  	
  Facility Fee

  
	
  SECTION 3.4.2.

  	
  Utilization Fee

  
	
  SECTION 3.4.3.

  	
  Agents’ Fees

  
	
   

  	
   

  
	
  ARTICLE IV

  CERTAIN LIBO RATE AND OTHER
  PROVISIONS

  
	
   

  	
   

  
	
  SECTION 4.1.

  	
  Fixed Rate Lending Unlawful

  
	
  SECTION 4.2.

  	
  Deposits Unavailable

  
	
  SECTION 4.3.

  	
  Increased LIBO Rate Loan Costs, etc

  

 

 

	
  SECTION 4.4.

  	
  Funding Losses

  
	
  SECTION 4.5.

  	
  Increased Capital Costs

  
	
  SECTION 4.6.

  	
  Taxes

  
	
  SECTION 4.7.

  	
  Payments, Computations, etc.

  
	
  SECTION 4.8.

  	
  Sharing of Payments

  
	
  SECTION 4.9.

  	
  Setoff

  
	
  SECTION 4.10.

  	
  Use of Proceeds

  
	
   

  	
   

  
	
  ARTICLE V

  CONDITIONS
  PRECEDENT

  
	
   

  	
   

  
	
  SECTION 5.1.

  	
  Conditions Precedent to the Obligations of
  the Lenders

  
	
  SECTION 5.1.1.

  	
  Resolutions, etc

  
	
  SECTION 5.1.2.

  	
  Officer’s Certificate

  
	
  SECTION 5.1.3.

  	
  Closing Fees, Expenses, etc

  
	
  SECTION 5.1.4.

  	
  Delivery of Financial Information

  
	
  SECTION 5.1.5.

  	
  Delivery of Notes

  
	
  SECTION 5.1.6.

  	
  Termination of the Existing Credit
  Agreement

  
	
  SECTION 5.1.7.

  	
  Opinion of Counsel

  
	
  SECTION 5.2.

  	
  Conditions Precedent to Borrowings

  
	
  SECTION 5.2.1.

  	
  Compliance with Warranties, No Default,
  etc

  
	
  SECTION 5.2.2.

  	
  Borrowing Request

  
	
  SECTION 5.2.3.

  	
  Satisfactory Legal Form

  
	
   

  	
   

  
	
  ARTICLE VI

  REPRESENTATIONS
  AND WARRANTIES

  
	
   

  	
   

  
	
  SECTION 6.1.

  	
  Organization, etc

  
	
  SECTION 6.2.

  	
  Due Authorization, Non-Contravention etc

  
	
  SECTION 6.3.

  	
  Government Approval Regulation, etc

  
	
  SECTION 6.4.

  	
  Validity, etc

  
	
  SECTION 6.5.

  	
  Financial Information

  
	
  SECTION 6.6.

  	
  No Material Adverse Change

  
	
  SECTION 6.7.

  	
  Litigation, Labor Controversies, etc

  
	
  SECTION 6.8.

  	
  Subsidiaries

  
	
  SECTION 6.9.

  	
  Ownership of Properties

  
	
  SECTION 6.10.

  	
  Taxes

  
	
  SECTION 6.11.

  	
  Pension and Welfare Plans

  
	
  SECTION 6.12.

  	
  Environmental Warranties

  
	
  SECTION 6.13.

  	
  Regulations U and X

  
	
  SECTION 6.14.

  	
  Accuracy of Information

  
	
  SECTION 6.15.

  	
  Compliance with Law; Absence of Default

  
	
   

  	
   

  
	
  ARTICLE VII

  COVENANTS

  
	
   

  	
   

  
	
  SECTION 7.1.

  	
  Affirmative Covenants

  

 

ii

 

	
  SECTION 7.1.1.

  	
  Financial Information Reports, Notices,
  etc

  
	
  SECTION 7.1.2.

  	
  Compliance with Laws, etc

  
	
  SECTION 7.1.3.

  	
  Maintenance of Properties

  
	
  SECTION 7.1.4.

  	
  Insurance

  
	
  SECTION 7.1.5.

  	
  Books and Records

  
	
  SECTION 7.1.6.

  	
  Environmental Covenant

  
	
  SECTION 7.2.

  	
  Negative Covenants

  
	
  SECTION 7.2.1.

  	
  Transactions with Affiliates

  
	
  SECTION 7.2.2.

  	
  Indebtedness

  
	
  SECTION 7.2.3.

  	
  Liens

  
	
  SECTION 7.2.4.

  	
  Mergers, Asset Dispositions, etc

  
	
  SECTION 7.2.5.

  	
  EBIT to Interest Expense Ratio

  
	
   

  	
   

  
	
  ARTICLE VIII

  EVENTS OF DEFAULT

  
	
   

  	
   

  
	
  SECTION 8.1.

  	
  Listing of Events of Default

  
	
  SECTION 8.1.1.

  	
  Non-Payment of Obligations

  
	
  SECTION 8.1.2.

  	
  Breach of Warranty

  
	
  SECTION 8.1.3.

  	
  Non-Performance of Certain Covenants and
  Obligations

  
	
  SECTION 8.1.4.

  	
  Non-Performance of Other Covenants and
  Obligations

  
	
  SECTION 8.1.5.

  	
  Default on Other Indebtedness

  
	
  SECTION 8.1.6.

  	
  Judgments

  
	
  SECTION 8.1.7.

  	
  Pension Plans

  
	
  SECTION 8.1.8.

  	
  Control of the Borrower

  
	
  SECTION 8.1.9.

  	
  Bankruptcy, Insolvency, etc

  
	
  SECTION 8.2.

  	
  Action if Bankruptcy

  
	
  SECTION 8.3.

  	
  Action if Other Event of Default

  
	
   

  	
   

  
	
  ARTICLE IX

  THE AGENT

  
	
   

  	
   

  
	
  SECTION 9.1.

  	
  Appointment; Powers and Immunities

  
	
  SECTION 9.2.

  	
  Reliance by Agent

  
	
  SECTION 9.3.

  	
  Defaults

  
	
  SECTION 9.4.

  	
  Rights of Agent and its Affiliates as a
  Lender

  
	
  SECTION 9.5.

  	
  Indemnification

  
	
  SECTION 9.6.

  	
  Consequential Damages

  
	
  SECTION 9.7.

  	
  Registered Holder of Loan Treated as Owner

  
	
  SECTION 9.8.

  	
  Nonreliance on Agent and Other Lenders

  
	
  SECTION 9.9.

  	
  Failure to Act

  
	
  SECTION 9.10.

  	
  Successor Agent

  
	
  SECTION 9.11.

  	
  Other Agents

  

 

iii

 

	
  ARTICLE X

  MISCELLANEOUS PROVISIONS

  
	
   

  	
   

  
	
  SECTION 10.1.

  	
  Waivers, Amendments, etc

  
	
  SECTION 10.2.

  	
  Notices

  
	
  SECTION 10.3.

  	
  Payment of Costs and Expenses

  
	
  SECTION 10.4.

  	
  Indemnification

  
	
  SECTION 10.5.

  	
  Survival

  
	
  SECTION 10.6.

  	
  Severability

  
	
  SECTION 10.7.

  	
  Headings

  
	
  SECTION 10.8.

  	
  Execution in Counterparts, Effectiveness,
  etc

  
	
  SECTION 10.9.

  	
  Governing Law; Entire Agreement

  
	
  SECTION 10.10.

  	
  Successors and Assigns

  
	
  SECTION 10.11.

  	
  Sale and Transfer of Loans and Note;
  Participations in Loans and Note

  
	
  SECTION 10.11.1.

  	
  Assignments

  
	
  SECTION 10.11.2.

  	
  Participations

  
	
  SECTION 10.12.

  	
  Other Transactions

  
	
  SECTION 10.13.

  	
  Forum Selection and Consent to
  Jurisdiction

  
	
  SECTION 10.14.

  	
  WAIVER OF JURY TRIAL

  

 

iv

 

SCHEDULES AND EXHIBITS

 

	
  SCHEDULE I

  	
  Disclosure Schedule

  
	
   

  	
   

  
	
  EXHIBIT A

  	
  Existing Subsidiaries

  
	
  EXHIBIT
  A-1

  	
  Form of
  Revolving Loan Note

  
	
  EXHIBIT A-2

  	
  Form of Competitive
  Bid Loan Note

  
	
  EXHIBIT
  A-3

  	
  Form
  of Swing Line Note

  
	
  EXHIBIT B

  	
  Employee Benefit Plans

  
	
  EXHIBIT B-1

  	
  Form of
  Revolving Loan Borrowing Request

  
	
  EXHIBIT
  B-2

  	
  Form of
  Competitive Bid Loan Borrowing Request

  
	
  EXHIBIT B-3

  	
  Form of Swing Line
  Loan Borrowing Request

  
	
  EXHIBIT C

  	
  Existing Liens

  
	
  EXHIBIT C-1

  	
  Form of
  Invitation for Bid Loan Quotes

  
	
  EXHIBIT C-2

  	
  Form of Competitive
  Bid Loan Offer

  
	
  EXHIBIT C-3

  	
  Form of
  Competitive Bid Loan Acceptance

  
	
  EXHIBIT
  C-4

  	
  Form of
  Competitive Bid Loan Borrowing Notice

  
	
  EXHIBIT D

  	
  Form of Lender
  Assignment Agreement

  
	
  EXHIBIT E

  	
  Form of Compliance
  Certificate

  
	
  EXHIBIT F

  	
  Form of
  Continuation/Conversion Notice

  
	
  EXHIBIT G

  	
  Form of
  Opinion of Counsel to the Borrower

  

 

v

 

REVOLVING
CREDIT AGREEMENT

 

THIS REVOLVING CREDIT AGREEMENT, dated as of
June 19, 2001, among McCORMICK & COMPANY, INCORPORATED, a Maryland
corporation (the “Borrower”), the various financial institutions parties
hereto (collectively, the “Lenders”) and WACHOVIA, N.A., as the
administrative agent (in such capacity, the “Agent”) for the Lenders and
as Swing Line Lender.

 

W
I T N E S S E T H:

 

WHEREAS, the Borrower has requested that the Lenders
provide to it a $225,000,000 revolving line of credit; and the Lenders and the
Agent are willing to do so on the terms and conditions set forth herein.

 

NOW, THEREFORE, in consideration of the premises and
the mutual covenants contained herein, the Borrower, the Lenders and the Agent
agree as follows:

 

ARTICLE I

 

DEFINITIONS
AND ACCOUNTING TERMS

 

SECTION 1.1.  Defined
Terms.  The following terms (whether
or not underscored) when used in this Agreement, including its preamble and
recitals, shall, except where the context otherwise requires, have the
following meanings (such meanings to be equally applicable to the singular and
plural forms thereof):

 

“Affiliate” of any Person means any other
Person which, directly or indirectly, controls, is controlled by or is under
common control with such Person (excluding any trustee under, or any committee
with responsibility for administering, any Plan).  A Person shall be deemed to be “controlled by” any other Person
if such other Person possesses, directly or indirectly, power

 

(a)           to vote 25% or more of
the securities (on a fully diluted basis) having ordinary voting power for the
election of directors or managing general partners; or

 

(b)           to direct or cause the
direction of the management and policies of such Person whether by contract or
otherwise;

 

provided,
however, that notwithstanding the foregoing, for purposes of Section 10.11.1,
an “Affiliate” shall be a Person engaged in the business of banking who is
controlled by, or under common control with, a Lender.

 

“Agent” is defined in the preamble and
includes each other Person as shall have subsequently been appointed as the
successor Agent pursuant to Section 9.4.

 

“Agents” means, collectively, the Agent, the
Documentation Agent and the Syndication Agent.

 

 

“Agreement” means, on any date, this Revolving
Credit Agreement as originally in effect on the Effective Date and as
thereafter from time to time amended, supplemented, amended and restated, or
otherwise modified and in effect on such date.

 

“Alternate Base Rate” means, on any date and
with respect to all Base Rate Loans, a fluctuating rate of interest per annum
equal to the higher of

 

(a)           the rate of interest
most recently announced by Wachovia, N.A. at its Domestic Office as its prime
rate, and

 

(b)           the Federal Funds Rate
most recently determined by the Agent plus 1/2 of 1% per annum.

 

The Alternate Base Rate
is not necessarily intended to be the lowest rate of interest determined by
Wachovia, N.A. in connection with extensions of credit.  Changes in the rate of interest on any Loans
maintained as Base Rate Loans will take effect simultaneously with each change
in the Alternate Base Rate.  The Agent
will give notice promptly to the Borrower and the Lenders of changes in the
Alternate Base Rate.

 

“Alternate Currency” means any Currency, other
than Dollars, which the Lenders shall at any relevant time have agreed (in the
manner provided for herein) to treat as an Alternate Currency for the purposes
of the Commitment Amount and shall be the denomination for Alternate Currency
Advances.

 

“Alternate Currency Advance” means a LIBO Rate
Loan or a Competitive Bid Loan, as the case may be, denominated in an Alternate
Currency.

 

“Applicable Law” shall mean, in respect of any
Person, all provisions of constitutions, statutes, rules, regulations and
orders of governmental bodies or regulatory agencies applicable to such Person,
and all orders and decrees of all courts and arbitrators in proceedings or
actions to which the Person in question is a party or by which it is bound.

 

“Approved Fund” is defined in Section 10.11.1.

 

“Assignee Lender” is defined in Section 10.11.1.

 

“Associated Costs” means, with respect to any
LIBO Rate Loan denominated in Sterling, a rate per annum equal to the
arithmetic mean of the percentage rates applicable to the LIBOR Offices of the
Reference Lenders (calculated by the Agent on the basis of the rates supplied
by each Reference Lender to the Agent) according to the following formula:

 

	
  Associated Costs

  per annum

  	
   

  	
  =

  	
   

  	
  BY + L (Y-X) + S
  (Y-Z)

  
	
   

  	
  100 - (X+S)

  

 

where, with respect to
each Reference Lender:

 

	
  B

  	
   

  	
  =

  	
   

  	
  The percentage of such
  Reference Lender’s eligible liabilities required, on the first day of the
  Relevant Period, to be held in a non-interest-bearing

  

 

2

 

	
   

  	
   

  	
   

  	
   

  	
  deposit account with
  the Bank of England pursuant to the cash ratio requirements of the Bank of
  England.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Y

  	
   

  	
  =

  	
   

  	
  The LIBO Rate at which
  Sterling deposits in an amount comparable to the aggregate principal amount
  of the relevant LIBO Rate Loan are offered by such Reference Lender to
  leading banks in the London interbank market at or about 11:00 a.m. (London
  time) on the first day of the Relevant Period for a period comparable to the
  Relevant Period.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  L

  	
   

  	
  =

  	
   

  	
  The average percentage
  of eligible liabilities which the Bank of England, as at the first day of the
  Relevant Period, requires such Reference Lender to maintain as secured money
  with members of the London Discount Market Association and/or as secured call
  money with those money brokers and gilt-edged primary market makers
  recognized by the Bank of England.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  X

  	
   

  	
  =

  	
   

  	
  The rate at which
  secured Sterling deposits in an amount comparable to the aggregate principal
  amount of the relevant LIBO Rate Loan may be placed by such Reference Lender
  with members of the London Discount Market Association and/or as secured call
  money with money brokers and gilt-edged primary market makers at or about
  11:00 a.m. (London time) on the first day of the Relevant Period for a period
  comparable to the Relevant Period.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  S

  	
   

  	
  =

  	
   

  	
  The percentage of such
  Reference Lender’s eligible liabilities required on the first day of the
  relevant Interest Period to be placed as a special deposit with the Bank of
  England.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Z

  	
   

  	
  =

  	
   

  	
  The percentage interest
  rate per annum payable by the Bank of England on special deposits or, if
  lower, Y.

  

 

(a)       For the purposes of this
definition:

 

(i)  “eligible liabilities” and ‘‘special
deposits” shall have the meanings ascribed to them from time to time by the
Bank of England; and

 

(ii)  “Relevant Period” means, if the
Interest Period with respect to such LIBO Rate Loan is three months or less,
the duration of such Interest Period or, if such Interest Period is longer than
three months, each period of three months and any necessary shorter period in
such Interest Period.

 

(b)     In
application of the above formula, B, Y, L, X, S and Z will be included in the
formula as decimal fractions and not as percentages, e.g.,  if B = 0.5% and Y = 15%, BY will be
calculated as 0.5 x 15 and not as 0.5% x 15%.

 

(c)     Associated
Costs shall be computed by the Agent on the first day of each Relevant Period,
and shall, if necessary, be rounded upward to the nearest 1/10,000 of 1%.  If there is more than one Relevant Period
comprised in the relevant Interest Period,

 

3

 

then the
Associated Costs for that Interest Period shall be the weighted average of the
amounts so computed for the relevant periods comprised in that Interest Period.

 

(d)     Calculations
of Associated Costs will be made on the basis of a year of 365 days.

 

(e)     If
a Reference Lender fails to furnish a rate for the purposes of this definition,
the Associated Costs shall be determined on the basis of the rates furnished by
the remaining Reference Lenders.  If no
Reference Lender furnishes a rate for the purposes of this definition, the
Associated Costs payable by the relevant Borrower in respect of any LIBO Rate Loan
shall be determined by the Agent on such comparable basis as it may reasonably
determine.

 

“Attributable Value” means, as to any
particular Sale-Leaseback Transaction under which any Person is at the time
liable, at any date as of which the amount thereof is to be determined (i) in
the case of any such transaction involving a Capitalized Lease, the amount on
such date of the Capitalized Lease Obligation thereunder, or (ii) in the case
of any other such transaction, the then present value of the minimum rental
obligation under such transaction during the remaining term thereof (after
giving effect to any extensions at the option of the lessor), computed by
discounting the respective rental or other payments at the actual interest
factor included in such payment or, if such interest factor cannot be readily
determined, at the rate of 9.75% per annum, compounded annually, or calculated
in such other manner as may be required by GAAP in effect at the time.  The amount of any rental or other payment
required to be made under any such transaction not involving a Capitalized
Lease may exclude amounts required to be paid by the lessee (or equivalent
party) on account of maintenance, repairs, insurance, Taxes, assessments,
utilities, operating and labor costs and similar charges.  In the case of any such transaction not
involving a Capitalized Lease which is terminable by the lessee (or equivalent
party) upon payment of a penalty, such rental or other payment may include the
amount of such penalty, in which case no rental or other payment shall be considered
as required to be paid under such transaction subsequent to the first date on
which it may be so terminated.

 

“Authorized Officer” means, relative to the
Borrower, those of its officers whose signatures and incumbency shall have been
certified to the Agent and the Lenders pursuant to Section 5.1.1 or
any successor thereto.

 

“Available” means, in respect of any Alternate
Currency and any Lender, that such Alternate Currency is, at the relevant time,
readily available to such Lender as deposits in the London or other applicable
interbank market in the relevant amount and for the relevant term, is freely
convertible into Dollars and is freely transferable for the purposes of this
Agreement, but if, notwithstanding that each of the foregoing tests is satisfied:

 

(a)     such
Alternate Currency is, under the then current legislation or regulations of the
country of such Alternate Currency (or under the policy of the central bank of
such country) or of the Bank of England or F.R.S.  Board, not permitted to be used for the purposes of this
Agreement; or

 

4

 

(b)     there
is no, or only insignificant, investor demand for the making of advances having
an interest period equivalent to that for the Alternate Currency Advance which
the Borrower has requested or in respect of which the Borrower has requested
offers to be made;

 

then such Alternate
Currency may be treated by any Lender as not being Available.

 

“Base Rate Loan” means a Loan bearing interest
at a fluctuating rate determined by reference to the Alternate Base Rate or, in
the case of a Swing Line Loan, as the Borrower and the Swing Line Lender may
otherwise agree.

 

“Borrower” is defined in the preamble.

 

“Borrowing” means, as the context may require,
either a Competitive Bid Loan Borrowing, a Revolving Loan Borrowing or a Swing
Line Borrowing.

 

“Borrowing Request” means, as the context may
require, either a Revolving Loan Borrowing Request, a Competitive Bid Loan
Borrowing Request or a Swing Line Loan Notice.

 

“Business Day” means

 

(a)     any
day which is neither a Saturday or Sunday nor a legal holiday on which banks
are authorized or required to be closed in New York, New York; and

 

(b)     relative
to the making, continuing, prepaying or repaying of any LIBO Rate Loans, any day
(i) on which dealings in the relevant currency are carried on in the London
interbank market and (ii) in the case of LIBO Rate Loans denominated in a
Currency other than Dollars or Sterling, on which banks in the country for
which such Currency is the lawful currency are not authorized or required to be
closed.

 

“Capitalized Leases” means all monetary
obligations of the Borrower or any of its Subsidiaries under any leasing or
similar arrangements which, in accordance with GAAP, would be classified as capitalized
leases.

 

“Capitalized Lease Obligation” means, at any
time, the present value of the minimum net lease payments during the term of a
Capitalized Lease, computed as provided in the Statement of Financial
Accounting Standards No. 13, as amended from time to time.

 

“CERCLA” means the Comprehensive Environmental
Response, Compensation and Liability Act of 1990, as amended.

 

“CERCLIS” means the Comprehensive Environmental
Response Compensation Liability Information System List.

 

“Change in Control” means (a) the acquisition
by any Person, or two or more Persons acting in concert, of beneficial
ownership (within the meaning of Rule 13d-3 of the Securities and Exchange
Commission under the Securities Exchange Act of 1934) of 51% or more of the
outstanding shares of voting stock of the Borrower after giving effect to
certain provisions of the

 

5

 

Borrower’s Certificate of Incorporation with respect to the conversion
of non-voting stock to voting stock; provided,  however, that
acquisition by the Borrower’s pension plan or profit sharing plan of 51% or
more of the outstanding shares of the Borrower’s voting stock shall not
constitute a Change in Control; or (b) during any period of 12 consecutive
months, a majority of the members of the board of directors of the Borrower
cease to be composed of individuals (i) who were members of the board of
directors on the first day of such period, (ii) whose election or nomination to
the board of directors was approved by individuals referred to in clause (i)
above constituting at the time of such election or nomination at least a
majority of the board of directors or (iii) whose election or nomination to the
board of directors was approved by individuals referred to in clauses (i) and
(ii) above constituting at the time of such election or nomination at least a
majority of the board of directors.

 

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

 

“Commitment” means the commitment of each
Lender to make Revolving Loans and purchase participations in Swing Line Loans
pursuant to this Agreement.

 

“Commitment Amount” means U.S. $225,000,000, as
such amount may be reduced from time to time pursuant to Section 2.2.

 

“Commitment Termination Event” means

 

(a)     the
occurrence of any Event of Default described in clauses (a) through (e)
of Section 8.1.9 with respect to the Borrower or any Principal
Subsidiary; or

 

(b)     the
occurrence and continuance of any other Event of Default and either

 

(i)  the declaration of the Loans to be due and
payable pursuant to Section 8.3, or

 

(ii)  in the absence of such declaration, the
giving of notice by the Agent, acting at the direction of the Required Lenders
pursuant to Section 8.3, to the Borrower that the Commitments have
been terminated.

 

“Competitive Bid Loan” means a loan made by a
Lender to the Borrower based on the Competitive Bid Rate as part of a
Competitive Bid Loan Borrowing resulting from the procedure described in Section 2.3.

 

“Competitive Bid Loan Acceptance” means an
acceptance by the Borrower of a Competitive Bid Loan Offer pursuant to clause
(e) of Section 2.3, substantially in the form of Exhibit C-3
attached hereto.

 

“Competitive Bid Loan Borrowing” means
Competitive Bid Loans made by each Lender whose offer to make such Competitive
Bid Loans as part of such Borrowing has been accepted by the Borrower pursuant
to clause (e) of Section 2.3.

 

6

 

“Competitive Bid Loan Borrowing Notice” means a
notice by the Borrower specifying that a Competitive Bid Loan Borrowing has
occurred, substantially in the form of Exhibit C-4 attached hereto.

 

“Competitive Bid Loan Borrowing Request” means
a certificate requesting Competitive Bid Loans, duly executed by an Authorized
Officer, substantially in the form of Exhibit B-2 attached hereto.

 

“Competitive Bid Loan Interest Payment Date” is
defined in clause (a) of Section 2.3.

 

“Competitive Bid Loan Maturity Date” is defined
in clause (a)(iii) of Section 2.3.

 

“Competitive Bid Loan Note” means a promissory
note of the Borrower payable to any Lender, in the form of Exhibit A-2
hereto (as such promissory note may be amended, endorsed or otherwise modified
from time to time), evidencing the aggregate Indebtedness of the Borrower to
such Lender resulting from Loans outstanding from such Lender that were made as
Competitive Bid Loans, and also means all other promissory notes accepted from
time to time in substitution therefor or renewal thereof.

 

“Competitive Bid Loan Offer” means an offer by
a Lender to make a Competitive Bid Loan pursuant to clause (c) of Section 2.3,
substantially in the form of Exhibit C-2 attached hereto.

 

“Competitive Bid Outstanding Balance” means, at
any time, the then aggregate outstanding principal amount of all Competitive
Bid Loans.

 

“Competitive Bid Rate” means (a) the LIBO Rate
(plus the LIBO Rate Bid Margin) or (b) the Fixed Rate offered by a Lender in a
Competitive Bid Loan Offer in respect of a Competitive Bid Rate Loan proposed
pursuant to Section 2.3.

 

“Consolidated Net Tangible Assets” means all
assets of the Borrower and its Subsidiaries appearing on a consolidated balance
sheet of the Borrower and its Subsidiaries prepared in accordance with GAAP minus
goodwill and other intangible assets other than prepaid allowances.

 

“Contingent Liability” means any agreement,
undertaking or arrangement by which any Person guarantees, endorses or
otherwise becomes or is contingently liable upon (by direct or indirect
agreement, contingent or otherwise, to provide funds for payment, to supply
funds to, or otherwise to invest in, a debtor, or otherwise to assure a
creditor against loss) the indebtedness, obligation or any other liability of
any other Person (other than by endorsements of instruments in the course of
collection), or guarantees the payment of dividends or other distributions upon
the shares of any other Person.  The
amount of any Person’s obligation under any Contingent Liability shall (subject
to any limitation set forth therein) be deemed to be the outstanding principal
amount (or maximum amount, if larger) of the debt, obligation or other
liability guaranteed thereby.

 

7

 

“Continuation/Conversion Notice” means a notice
of continuation or conversion and certificate duly executed by an Authorized
Officer of the Borrower, substantially in the form of Exhibit F hereto.

 

“Controlled Group” means all members of a
controlled group of corporations and all members of a controlled group of
trades or businesses (whether or not incorporated) under common control which,
together with the Borrower, are treated as a single employer under
Section 414(b) or 414(c) of the Code or Section 4001 of ERISA.

 

“Currency” and “Currencies” means
Dollars, Deutschemarks, Yen, Sterling and Euro.

 

“Default” means any Event of Default or
condition, occurrence or event which, after notice or lapse of time or both,
would constitute an Event of Default.

 

“Deutschemark” and “DM” mean the lawful
currency of the Federal Republic of Germany.

 

“Disclosure Schedule” means the Disclosure
Schedule attached hereto as Schedule I, as it may be amended,
supplemented or otherwise modified from time to time by the Borrower with the
written consent of the Agent and the Required Lenders.

 

“Documentation Agent” means Bank of America,
N.A. in its capacity as documentation agent hereunder.

 

“Dollars” and the sign “$” each mean the
lawful currency of the United States of America.

 

“Dollar Equivalent” of any amount of any
Alternate Currency or Non-Major Alternate Currency on any date means the
equivalent amount in Dollars, converted at the rate of exchange quoted by
Wachovia, N.A. at its New York office to prime banks in New York for the spot
purchase in the New York foreign exchange market of the relevant Alternate
Currency or, to the extent spot quotations are available, the Non-Major
Alternate Currency, in each case at approximately 11:00 a.m. (New York time) on
such date in accordance with its normal practice.

 

“Domestic Office” means, relative to any
Lender, the office of such Lender designated as such below its signature hereto
or designated in the Lender Assignment Agreement or such other office of a
Lender (or any successor or assign of such Lender) within the United States as may
be designated from time to time by notice from such Lender, as the case may be,
to each other Person party hereto.

 

“EBIT” means, for any period, the sum of the
amounts for such period of (a) Net Income (excluding any one-time non-recurring
charges), (b) Interest Expense and (c) charges for federal, state, local and
foreign income taxes, all determined in accordance with GAAP.

 

“Euro” means the euro referred to in Council
Regulation (EC) no. 1103/97 dated June 17, 1997 passed by the Council of
the European Union, or, if different, the then lawful currency of the member
states of the European Union that participates in the third stage of Economic
and Monetary Union.

 

8

 

“Effective Date” shall mean the first date on
which this Agreement shall have been fully signed in accordance with Section 10.8
and each of the conditions precedent set forth in Section 5.1 have
been satisfied.

 

“Environmental Laws” means all applicable
federal, state or local statutes, laws, ordinances, codes, rules and
regulations (including consent decrees and administrative orders issued to the
Borrower or any Subsidiary) relating to public health and safety and protection
of the environment.

 

“ERISA” means the Employee Retirement Income
Security Act of 1974, as amended, and any successor statute of similar import,
together with the regulations thereunder, in each case as in effect from time
to time.  References to sections of
ERISA also refer to any successor sections.

 

“Event of Default” is defined in Section 8.1.

 

“Existing Credit Agreement” means that certain
Amended and Restated Revolving Credit Agreement dated as of December 13,
1996 among the Borrower, certain financial institutions as lenders and Toronto
Dominion (Texas), Inc., as administrative agent (such administrative agent
having been replaced by First Union National Bank), as amended.

 

“Federal Funds Rate” means, for any period, a
fluctuating interest rate per annum equal for each day during such period to
the rate of interest most recently offered to the Agent in the interbank market
as the overnight federal funds rate.

 

“Fiscal Quarter” means any quarter of a Fiscal
Year.

 

“Fiscal Year” means any period of twelve
consecutive calendar months ending on November 30; references to a Fiscal
Year with a number corresponding to any calendar year (e.g., the “2000
Fiscal Year”) refer to the Fiscal Year ending on the November 30 occurring
during such calendar year.

 

“Fixed Rate” means, for any period with respect
to Competitive Bid Loans, an absolute interest rate proposed by a Lender in a
Competitive Bid Loan Offer.

 

“Foreign Currency Equivalent” of any amount of
Dollars in any Alternate Currency or Non-Major Alternate Currency on any date
means the equivalent amount in the relevant currency converted at the rate of
exchange quoted under the heading “Exchange Rates — Currency per U.S. $” in The
Wall Street Journal for the immediately preceding Business Day for such
Alternate Currency or Non-Major Alternate Currency.

 

“F.R.S. Board” means the Board of Governors of
the Federal Reserve System or any successor thereto.

 

“GAAP” is defined in Section 1.4.

 

“Granting Lender” is defined in Section 10.1.1.

 

9

 

“Hazardous Material” means

 

(a)     any
“hazardous substance”, as defined by CERCLA;

 

(b)     any
“hazardous waste”, as defined by the Resource Conservation and Recovery Act, as
amended;

 

(c)     any
petroleum product; or

 

(d)     any
pollutant or contaminant or hazardous, dangerous or toxic chemical, material or
substance within the meaning of any other applicable federal, state or local
law, regulation, ordinance or requirement (including consent decrees and
administrative orders issued to the Borrower or any Subsidiary) relating to or
imposing liability or standards of conduct concerning any hazardous, toxic or
dangerous waste, substance or material, all as amended or hereafter amended.

 

“herein,” “hereof,” “hereto,” “hereunder”
and similar terms contained in this Agreement or any other Loan Document refer
to this Agreement or such other Loan Document, as the case may be, as a whole
and not to any particular Section, paragraph or provision of this Agreement or
such other Loan Document.

 

“Impermissible Qualification” means, relative
to the opinion or certification of any independent public accountant as to any
financial statement of the Borrower, any qualification or exception to such
opinion or certification

 

(a)     which
is of a “going concern” or similar nature;

 

(b)     which
relates to the limited scope of examination of matters relevant to such
financial statement; or

 

(c)     which
relates to the treatment or classification of any item in such financial
statement and which, as a condition to its removal, would require an adjustment
to such item the effect of which would be to cause the Borrower to be in
default of any of its obligations under Section 7.2.4.

 

“including” means including without limiting
the generality of any description preceding such term, and, for purposes of
this Agreement and each other Loan Document, the parties hereto agree that the
rule of ejusdem  generis shall not be applicable to limit a
general statement, which is followed by or referable to an enumeration of
specific matters, to matters similar to the matters specifically mentioned.

 

“Indebtedness” of any Person means, without
duplication, any obligation (whether present or future, actual or contingent,
secured or unsecured, as principal or surety or otherwise) for the payment or
repayment of money which would be regarded as indebtedness in accordance with
GAAP, including all Contingent Liabilities of such Person in respect of any
such obligations.

 

10

 

For all purposes of this Agreement, the Indebtedness
of any Person shall include the Indebtedness of any partnership in which such
Person is a general partner; provided,  however, that the
Indebtedness of any Person shall not include any obligation of a partnership in
which such Person is a general partner to the extent that such obligation
(including any Contingent Liability) is limited by its terms.

 

“Indemnified Liabilities” is defined in Section 10.4.

 

“Indemnified Parties” is defined in Section 10.4.

 

“Interest Expense” means, for any period, all
as determined in accordance with GAAP, total interest expense, whether paid or
accrued (without duplication) (including the interest component of Capitalized
Lease Obligations), of the Borrower and its Subsidiaries on a consolidated
basis, including, without limitation, all bank fees, commissions, discounts and
other fees and charges owed with respect to letters of credit, but excluding,
however, amortization of discount, interest paid in property other than cash or
any other interest expense not payable in cash.

 

“Interest Period” means, relative to any LIBO
Rate Loans, the period beginning on (and including) the date on which such LIBO
Rate Loans are made or continued as, or converted into, LIBO Rate Loans
pursuant to Section 2.1 or 2.5 and shall end on (but
exclude) the day which numerically corresponds to such date one, two, three or
six months thereafter (or, if such month has no numerically corresponding day,
on the last Business Day of such month), the Borrower may select in its
relevant notice pursuant to Section 2.3 or 2.5; provided,
however, that

 

(a)     the
Borrower shall not be permitted to select Interest Periods to be in effect at
any one time which have expiration dates occurring on more than five different
dates;

 

(b)     Interest
Periods commencing on the same date for Loans comprising part of the same
Borrowing shall be of the same duration;

 

(c)     if
such Interest Period would otherwise end on a day which is not a Business Day,
such Interest Period shall end on the next following Business Day (unless, such
next following Business Day is the first Business Day of a calendar month, in
which case such Interest Period shall end on the Business Day next preceding
such numerically corresponding day); and

 

(d)     no
Interest Period may end later than the Maturity Date.

 

“Lead Arrangers” means, collectively, Banc of
America Securities LLC and SunTrust Equitable Securities Corporation.

 

“Lender Assignment Agreement” means a Lender
Assignment Agreement substantially in the form of Exhibit D hereto.

 

“Lenders” has the meaning specified in the
preamble and as the context requires, includes the Swing Line Lender.

 

11

 

“LIBO Alternate Rate” is defined in Section 3.3.1.

 

“LIBO Rate” is defined in Section 3.3.1.

 

“LIBO Rate Bid Margin” means, in respect of
Competitive Bid Loans, the margin above (or below) the applicable LIBO Rate
offered for each such Competitive Bid Loan, expressed as a percentage (rounded
to the nearest 1/10, 000th of 1%) to be added to, or subtracted from, such
rate.

 

“LIBO Rate Loan” means a Revolving Loan or a
Competitive Bid Rate Loan, as the case may be, bearing interest, at all times
during an Interest Period applicable to such Revolving Loan or Competitive Bid
Rate Loan, at a fixed rate of interest determined by reference to the LIBO Rate
(Reserve Adjusted).

 

“LIBO Rate (Reserve Adjusted)” is defined in Section 3.3.1.

 

“LIBOR Office” means, relative to any Lender,
the office of such Lender designated as such below its signature hereto or
designated in the Lender Assignment Agreement or such other office of a Lender
as designated from time to time by notice from such Lender to the Borrower and
the Agent, whether or not outside the United States, which shall be making or
maintaining LIBO Rate Loans of such Lender hereunder.

 

“LIBOR Reserve Percentage” is defined in Section 3.3.1.

 

“Lien” means any security interest, mortgage,
pledge, hypothecation, assignment, deposit arrangement, encumbrance, lien
(statutory or otherwise), charge against or interest in property to secure
payment of a debt or performance of an obligation or other priority or
preferential arrangement of any kind or nature whatsoever.

 

“Loans” means the Competitive Bid Loans, the
Revolving Loans and the Swing Line Loans made on a Business Day by each Lender
to the Borrower pursuant to such Lender’s Commitment during the period
commencing on the Effective Date until (but not including) the Maturity
Date.  The aggregate principal amount at
any time outstanding of all Loans made by the Lenders shall not exceed the
Commitment Amount.

 

“Loan Document” means this Agreement, the
Notes, the Transaction Fee Letter and each other document and agreement
delivered to the Agent in connection herewith or therewith.

 

“Material Adverse Effect” means any event which
will, or is reasonably likely to, have a material adverse effect on (i) the
financial condition, assets, liabilities, operations or business of the
Borrower and its Subsidiaries taken as a whole or (ii) the Borrower’s ability
to perform and comply with its monetary obligations under this Agreement, the
Notes and each other Loan Document.

 

“Maturity Date” means the earlier to occur of

 

(a)     June 19,
2006;

 

12

 

(b)     the
date on which the Commitment Amount is terminated in full or reduced to zero
pursuant to Section 2.2; and

 

(c)     immediately
and without further notice upon the occurrence of any Commitment Termination
Event.

 

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

 

“Net Income” means, for any period, with
respect to the Borrower and its Subsidiaries, income from continuing operations
of the Borrower and its Subsidiaries during such period, determined in
accordance with GAAP.

 

“Non-Major Alternate Currencies” means all
currencies other than the Alternate Currencies and Dollars.

 

“Note” means, as the context may require, a
Competitive Bid Loan Note, a Revolving Loan Note or a Swing Line Note.

 

“Obligations” means all obligations (monetary
or otherwise) of the Borrower arising under or in connection with this
Agreement, the Notes and each other Loan Document.

 

“Organic Document” means, (a) relative to the
Borrower, its certificate of incorporation, its by-laws and all shareholder
agreements, voting trusts and similar arrangements applicable to any of its
authorized shares of capital stock and (b) relative to any Subsidiary, its
applicable corporate, partnership, joint venture or limited liability company
organizational and governing documents and all arrangements applicable to any
of its equity, ownership or membership interests.

 

“Other Credit Agreement” means that certain
364-Day Credit Agreement dated as of the date hereof among the Borrower, the
lenders named therein and Wachovia, N.A., as administrative agent, as from time
to time amended, supplemented, amended and restated, or otherwise modified and
in effect.

 

“Other Loans” means, collectively, all “Loans”
under and as defined in the Other Credit Agreement.

 

“Participant” is defined in Section 10.11.

 

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

 

“Pension Plan” means a “pension plan,” as such
term is defined in Section 3(2) of ERISA, which is subject to Title IV of
ERISA (other than a multiemployer plan as defined in Section 4001(a)(3) of
ERISA), and to which the Borrower or any corporation, trade or business that
is, along with the Borrower, a member of a Controlled Group, may have
liability, including any liability by reason of having been a substantial
employer within the meaning of Section 4063 of ERISA at any time during
the preceding five years, or by reason of being deemed to be a contributing
sponsor under Section 4069 of ERISA.

 

13

 

“Percentage” means, relative to any Lender, the
percentage set forth opposite its signature hereto or set forth in the Lender
Assignment Agreement, as such percentage may be adjusted from time to time
pursuant to Lender Assignment Agreement(s) executed by such Lender and its
Assignee Lender(s) and delivered pursuant to Section 10.11.

 

“Person” means any individual, trustee,
corporation, general partnership, limited partnership, limited liability
company, joint stock company, firm, business association, trust, unincorporated
organization, bank, joint venture, government, governmental authority or any
other entity, whether acting in an individual, fiduciary or other capacity.

 

“Plan” means any Pension Plan or Welfare Plan.

 

“Principal Subsidiary” means a Subsidiary (i)
whose total assets or net sales (each such amount expressed on a consolidated
basis in the case of a Subsidiary which itself has Subsidiaries) represent,
respectively, not less than 15% of either the consolidated total assets or
consolidated net sales of the Borrower and its Subsidiaries, all as calculated annually
by reference to the immediately preceding Fiscal Year-end financial data
(consolidated or unconsolidated, as the case may be) of such Subsidiary and the
then latest Fiscal Year-end audited consolidated financial statements of the
Borrower, or (ii) to which is transferred all or substantially all of the
assets or undertakings of a Principal Subsidiary.  A certificate by an Authorized Officer of the Borrower as to
whether a Subsidiary is or is not or was or was not a Principal Subsidiary at a
specified date shall, in the absence of manifest error, be conclusive and
binding.

 

“Quarterly Payment Date” means the last day of
each calendar quarter or, if any such day is not a Business Day, the next
succeeding Business Day.

 

“Reference Lenders” means Bank of America, N.A.
and SunTrust Bank.

 

“Related Person” means, with respect to any
Person, the outstanding capital stock of which is at least 25%, but not more
than 50% beneficially owned by the Borrower or its Subsidiaries.

 

“Release” means a “release,” as such
term is defined in CERCLA.

 

“Required Lenders” means, at any time,

 

(a)     except
as otherwise provided in clause (c) hereof, with respect to any
provision of this Agreement other than the declaration of the acceleration of
the maturity of all or any portion of the outstanding principal amount of the
Loans and other Obligations to be due and payable pursuant to Section 8.3,
Lenders having greater than 50% of the Commitment Amount,

 

(b)     except
as otherwise provided in clause (c) hereof, with respect to the declaration
of the acceleration of the maturity of all or any portion of the outstanding
principal amount of the Loans and other obligations to be due and payable
pursuant to Section 8.3, Lenders holding Loans representing greater
than 50% of the aggregate principal amount of the Loans outstanding, or

 

14

 

(c)     with
respect to any waiver of a Default or any amendment or modification of any
provision of this Agreement or any other Loan Document which would have the
effect of waiving a Default, Lenders having greater than (i) 50% of the
Commitment Amount or (ii) if the Commitments have been terminated, 50% of the
aggregate principal amount of the Loans outstanding.

 

For purposes of this definition, outstanding Swing
Line Loans shall be deemed held by the Lenders ratably relating to their
respective participations therein.

 

“Resource Conservation and Recovery Act” means
the Resource Conservation and Recovery Act, 42 U.S.C.  Section 690, et  seq., as in effect from time
to time.

 

“Revolving Commitment Amount” means, on any
date, relative to any Lender, the amount equal to such Lender’s Percentage
multiplied by the Commitment Amount.

 

“Revolving Loan” means a Loan made by a Lender
to the Borrower pursuant to Section 2.1.

 

“Revolving Loan Borrowing” means Revolving
Loans of the same type made by all Lenders on the same Business Day in
accordance with Section 2.1.

 

“Revolving Loan Borrowing Request” means a
certificate requesting Revolving Loans, duly executed by an Authorized Officer,
substantially in the form of Exhibit B-1 attached hereto.

 

“Revolving Loan Commitment” means a Lender’s
obligation to make Revolving Loans pursuant to Section 2.1.

 

“Revolving Loan Note” means a promissory note
of the Borrower payable to any Lender, in the form of Exhibit A-1 hereto
(as such promissory note may be amended, endorsed or otherwise modified from
time to time), evidencing the aggregate Indebtedness of the Borrower to such
Lender resulting from Revolving Loans outstanding from such Lender, and also
means all other promissory notes accepted from time to time in substitution
therefor or renewal thereof.

 

“Sale-Leaseback Transaction” means any
arrangement, directly or indirectly, with any Person whereby a seller or
transferor shall sell or otherwise transfer any real or personal property if,
as part of the same transaction or series of transactions, the seller or
transferor shall then or thereafter lease as lessee, or similarly acquire the
right to possession or use of, such sold or transferred property, or property
which it intends to use substantially to the same extent or for the same
purpose as such sold or transferred property, in any such case under any lease,
agreement or other arrangement, whether or not involving a Capitalized Lease,
with the Person to whom such property was sold or transferred (other than any
such lease, agreement or arrangement having a term, including renewals, not
exceeding three years) which obligates the seller or transferor to pay rent as
lessee or make any other payment to such Person for such possession or use.

 

“Senior Debt Rating” means the Borrower’s
senior, unsecured non-credit-enhanced long term debt rating, as determined by
S&P and Moody’s.

 

15

 

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

 

“SPC” is defined in Section 10.1.1.

 

“Sterling” and “f” mean the lawful
currency of the United Kingdom of Great Britain and Northern Ireland.

 

“Subsidiary” means, with respect to any Person,
any corporation, partnership, joint venture, limited liability company or other
business entity of which more than 50% of the outstanding capital stock or
other interests having ordinary voting power to elect a majority of the board
of directors or other governing body of such entity (irrespective of whether at
the time securities or interests of any other class or classes of such entity
shall or might have voting power upon the occurrence of any contingency) is at
the time, directly or indirectly, beneficially owned by such Person, by such
Person and one or more other Subsidiaries of such Person, or by one or more
other Subsidiaries of such Person. 
Unless otherwise indicated, when used in this Agreement, the term
“Subsidiary” shall refer to a Subsidiary of the Borrower.

 

“Swing Line” means the revolving credit
facility made available by the Swing Line Lender pursuant to Section 2.4.

 

“Swing Line Borrowing”
means a borrowing of a Swing Line Loan pursuant to Section 2.4.

 

“Swing Line Lender”
means Wachovia, N.A. in its capacity as provider of Swing Line Loans, or any
successor swing line lender hereunder.

 

“Swing Line Loan”
has the meaning specified in Section 2.4(a).

 

“Swing Line Loan
Borrowing Request” means a notice of a Swing Line Borrowing pursuant to Section 2.4(b),
which, if in writing, shall be substantially in the form of Exhibit B-3.

 

“Swing Line Note” means a promissory note of
the Borrower payable to the Swing Line Lender, in the form of Exhibit A-3
hereto (as such promissory note may be amended, endorsed or otherwise modified
from time to time), evidencing the aggregate Indebtedness of the Borrower to
such Lender resulting from Swing Line Loans outstanding from such Lender, and
also means all other promissory notes accepted from time to time in
substitution therefor or renewal thereof.

 

“Swing Line Sublimit” means an amount equal to
the lesser of (a) $15,000,000 and (b) the Commitment Amount.  The Swing Line Sublimit is part of, and not
in addition to, the Commitment Amount.

 

“Syndication Agent” means SunTrust Bank in its
capacity as syndication agent hereunder.

 

“Taxes” is defined in Section 4.6.

 

16

 

“Telerate Page 3750” means the display
designated as “Page 3750” on the Telerate Service (or such other page as may
replace Page 3750 on the service or such other service as may be nominated by
the British Bankers’ Association as the information vendor for the purpose of
displaying British Bankers’ Association interest settlement rates for
Deutschemark, U.S. Dollar, Sterling or Yen deposits)

 

“Transaction Fee Letter” means the confidential
letter agreement, dated May      , 2001, by and
between the Agents, the Lead Arrangers and the Borrower.

 

“type” means, relative to any Revolving Loan,
the portion thereof being maintained as a Base Rate Loan or a LIBO Rate Loan.

 

“United States” or “U.S.” means the
United States of America, its fifty States and the District of Columbia.

 

“Utilization Fee Rate” means, at any time, the
percentage rate per annum at which utilization fees are accruing pursuant to Section 3.4.2
at such time as set forth within such Section.

 

“Welfare Plan” means a “welfare plan,”
as such term is defined in Section 3(l) of ERISA.

 

“Yen” and “¥” means the lawful currency
of Japan.

 

SECTION 1.2.  Use
of Defined Terms.  Unless otherwise
defined or the context otherwise requires, terms for which meanings are
provided in this Agreement shall have such meanings when used in the Disclosure
Schedule and in each Note, Loan Document, Borrowing Request,
Continuation/Conversion Notice, notice, request and other communication
delivered from time to time in connection with this Agreement or any other Loan
Document.

 

SECTION 1.3.  Cross-References.  Unless otherwise specified, references in
this Agreement and in each other Loan Document to any Article or
Section are references to such Article or Section of this
Agreement or such other Loan Document, as the case may be, and, unless
otherwise specified, references in any Article, Section or definition to
any clause are references to such clause of such Article, Section or
definition.

 

SECTION 1.4.  Accounting
and Financial Determinations. 
Unless otherwise specified, all accounting terms used herein or in any
other Loan Document shall be interpreted, all accounting determinations and
computations hereunder or thereunder (including under Sections 7.2.2 and
7.2.4) shall be made in accordance with generally accepted accounting
principles (“GAAP”) as in effect on the Effective Date of this Agreement, and
all financial statements required to be delivered hereunder or thereunder shall
be prepared in accordance with GAAP as in effect on the date of, or for the
period covered by, such financial statements, and applied in the preparation of
the financial statements referred to in Section 6.5.

 

17

 

ARTICLE II

 

MAKING THE LOANS

 

SECTION 2.1.  Revolving
Loan Commitments and Borrowing Procedure.

 

(a)           Commitments.  Subject to the terms and conditions of this
Agreement (including Article V), each Lender severally and for
itself alone agrees that it will make Revolving Loans pursuant to its Revolving
Loan Commitment described in this Section 2.1.  From time to time, on any Business Day occurring
prior to the Maturity Date, each Lender will make Revolving Loans to the
Borrower equal to such Lender’s Percentage of the aggregate amount of the
Revolving Loan Borrowing requested by the Borrower to be made by all Lenders on
such day.  No Lender shall be required
to make any Revolving Loan if, after giving effect thereto,

 

(i)            the aggregate
outstanding principal amount of all Loans (determined in the case of Loans
denominated in a currency other than Dollars on the basis of the Dollar
Equivalent thereof) of all Lenders would exceed the Commitment Amount, or

 

(ii)           the sum of the

 

(A)          then aggregate
outstanding principal amount of all Revolving Loans (determined in the case of
Loans denominated in a currency other than Dollars on the basis of the Dollar
Equivalent thereof) of such Lender

 

plus

 

(B)           an amount equal to (1)
such Lender’s Percentage multiplied by (2) the then Competitive Bid Outstanding
Balance (determined in the case of Loans denominated in a currency other than
Dollars on the basis of the Dollar Equivalent thereof)

 

plus

 

(C)           an amount equal to such
Lender’s Percentage multiplied by the then aggregate outstanding principal
amount of all Swing Line Loans would exceed such Lender’s Revolving Commitment
Amount.

 

Subject to the terms
hereof, the Borrower may from time to time borrow, repay and reborrow Revolving
Loans under this Agreement.  The
Commitment Amount shall be deemed to be used from time to time to the extent of
the Competitive Bid Outstanding Balance and the aggregate outstanding principal
amount of the Swing Line Loans, and such deemed use of the Commitment Amount
shall be allocated to the Lenders’ Revolving Commitment Amounts according to
their respective Percentages.

 

18

 

(b)           Borrowing Procedure.  By delivering a Revolving Loan Borrowing
Request to the Agent on a Business Day on or before 10:00 a.m. (New York City
time), the Borrower may from time to time irrevocably request a Loan to be made
(a) (i) in respect of any Borrowing comprised of Revolving Loans denominated in
Dollars bearing interest at the LIBO Rate, on not less than three nor more than
five Business Days’ notice, and in respect of any Borrowing comprised of (ii)
Revolving Loans denominated in an Alternate Currency bearing interest at the
LIBO Rate, on not less than five nor more than ten Business Days, notice and
(b) in respect of any Borrowing comprised of Revolving Loans denominated in
Dollars bearing interest at the Alternate Base Rate, on not less than one
Business Day’s notice.  Each Revolving
Loan Borrowing Request must be in an aggregate minimum amount of $10,000,000
and in integral multiples of $1,000,000, or the Foreign Currency Equivalent
thereof in the case of Revolving Loans made in an Alternate Currency.  Subject to the terms and conditions of this
Agreement, each Revolving Loan Borrowing shall be made on the Business Day
specified in the Revolving Loan Borrowing Request therefor.  On such Business Day, each Lender shall
deposit in an account maintained with the Agent same day funds, on or before
11:00 a.m. (New York City time) (or, in the case of Loans denominated in a
currency other than Dollars, on or before a mutually agreed upon time), in an
amount equal to such Lender’s Percentage of the requested Revolving Loan
Borrowing in the relevant currency, such deposit to be made to such account as
the Agent shall specify from time to time by notice to the Lenders.  No Lender’s obligation to make any Loan
shall be affected by any other Lender’s failure to make any Loan.  If on the date of the Revolving Loan
Borrowing there are Swing Line Loans outstanding, then the proceeds of such
Borrowing shall be applied, first, to the payment in full of any such
Swing Line Loans, and second, to the Borrower as provided in the Revolving
Loan Borrowing Request.

 

SECTION 2.2.  Reduction
of the Commitment Amount.  The
Commitment Amount is subject to reduction from time to time pursuant to this
Section.  The Borrower may, from time to
time on any Business Day voluntarily reduce the Commitment Amount; provided,
however, that all such reductions under this Section shall be
subject to Section 3.2(b), require at least three Business Days’
prior notice to the Agent, be permanent, be applied to the Lenders’ Revolving
Commitment Amounts pro  rata in accordance with their respective
Percentages, and any partial reduction of the Commitment Amount shall be in a
minimum amount of $10,000,000 and in an integral multiple of $5,000,000.

 

SECTION 2.3.  Competitive
Bid Loans.  Subject to the terms and
conditions of this Agreement (including Article V), each Lender
severally agrees that the Borrower may request that Competitive Bid Loan
Borrowings under this Section 2.3 be made from time to time on any
Business Day prior to the date occurring one month prior to the Maturity Date
in the manner set forth below; provided,  however, that following
the making of each Competitive Bid Loan Borrowing, the aggregate amount of all
Loans then outstanding (which, in the case of Loans denominated in a currency
other than Dollars, shall be the Dollar Equivalent thereof) shall not exceed
the Commitment Amount (and, subject to Section 4.4, the Borrower
hereby agrees to make a mandatory prepayment of Revolving Loans to the extent
necessary to reduce the outstanding principal amount of all Loans (after giving
effect to such Competitive Bid Loan Borrowing) to an amount not in excess of
the Commitment Amount).

 

19

 

(a)           Competitive Bid Loan
Borrowing Request.  The Borrower may
request Competitive Bid Loan Borrowings under this Section 2.3 by
delivering to the Agent not later than 10:00 a.m. (New York City time) at least
five Business Days, prior to the date of the proposed Competitive Bid Loan
Borrowing, a Competitive Bid Loan Borrowing Request (which shall constitute an
invitation to the Lenders to extend Competitive Bid Loan quotes to the
Borrower, and which may contain requests for up to three different Competitive
Bid Loans), specifying

 

(i)            the amount and
Currency or Non-Major Alternate Currency of the Competitive Bid Loan,

 

(ii)           the proposed date
(which shall be a Business Day) and aggregate principal amount or amounts of
each Competitive Bid Loan to be made as part of such proposed Competitive Bid
Loan Borrowing (which shall be in a minimum principal amount of $5,000,000 and
in an integral multiple of $1,000,000 or the Foreign Currency Equivalent
thereof) (and, subject to the first sentence of this Section, which principal
amount may exceed the Commitment Amount then available to be borrowed),

 

(iii)          the proposed maturity
date or dates (each a “Competitive Bid Loan Maturity Date”) for repayment of
each Competitive Bid Loan to be made as part of such Competitive Bid Loan
Borrowing (which maturity date or dates may not be earlier than the date
occurring seven days after the date of such Competitive Bid Loan Borrowing or
later than the earlier of the date occurring (A) one hundred eighty-three days
after the date of such Competitive Bid Loan Borrowing or (B) the Maturity
Date), and

 

(iv)          the interest payment
date or dates (which interest payment dates shall be the Competitive Bid Loan
Maturity Date applicable thereto and, if such Competitive Bid Loan Maturity
Date occurs more than three months after the date of such Competitive Bid Loan
Borrowing, the date occurring on each Quarterly Payment Date after the date of
such Competitive Bid Loan Borrowing; each such interest payment date, a
“Competitive Bid Loan Interest Payment Date”) relating thereto.

 

The Borrower shall not
request any Competitive Bid Loan Borrowing within three Business Days’ after
any other Competitive Bid Loan Request.

 

(b)           Invitation for Bid
Loan Quotes.  Promptly upon receipt
of a Competitive Bid Loan Borrowing Request but in no event later than 4:00
p.m. (New York City time) on the date of such receipt, the Agent shall send to
the Lenders by telecopy an “Invitation for Bid Loan Quotes” substantially in
the form of Exhibit C-1 attached hereto, which shall constitute an
invitation by the Borrower to each Lender to submit Competitive Bid Loan quotes
offering to make the Competitive Bid Loans to which such Competitive Bid Loan
Borrowing Request relates in accordance with this Section.

 

(c)           Submission and
Contents of Bid Loan Quotes.

 

20

 

(i)            If any Lender, in its
sole discretion, elects to offer to make a Competitive Bid Loan to the Borrower
as part of such proposed Competitive Bid Loan Borrowing at a rate of interest
specified by such Lender in its sole discretion, it shall deliver to the Agent
not later than 11:00 a.m. (New York City time) on the fourth Business Day prior
to the proposed date of Borrowing, and in the case of a Competitive Bid Loan
Borrowing in an Alternate Currency or Non-Major Alternate Currency, no later
than 11:00 a.m. (New York City time) on the fifth Business Day prior to the
proposed date of Borrowing, a Competitive Bid Loan Offer, which must comply
with the requirements of this clause, substantially in the form of Exhibit
C-2 hereto; provided, that Competitive Bid Loan quotes submitted by
the Agent (or any affiliate of the Agent) in the capacity of a Lender may be
submitted, and may only be submitted, if the Agent or such affiliate notifies
the Borrower of the terms of the offer or offers contained therein not later
than 10:00 a.m. (New York City time) on the fourth Business Day prior to the
proposed date of borrowing.  Such
Competitive Bid Loan Offer shall specify

 

(A)          the Currency or
Non-Major Alternate Currency of the Competitive Bid Loans,

 

(B)           the proposed date of
Borrowing, which shall be the same as that set forth in the applicable
Invitation for Bid Loan Quotes,

 

(C)           the principal amount of
the Competitive Bid Loan which such Lender would be willing to make as part of
such proposed Competitive Bid Loan Borrowing (which amount shall be in a
minimum principal amount of $5,000,000 and in an integral multiple of
$1,000,000, or the Foreign Currency Equivalent thereof, and may, subject to the
proviso to the first sentence of this Section 2.3, exceed such
Lender’s Revolving Commitment Amount),

 

(D)          the Fixed Rate or the
LIBO Rate Bid Margin therefor.  A
Competitive Bid Loan Offer submitted by a Lender pursuant to this clause (c)
shall be irrevocable, except with the written consent of the Agent given on the
instructions of the Borrower, and

 

(E)           the identity of the
quoting Lender.

 

(ii)           Any Competitive Bid
Loan quote that:

 

(A)          is not substantially in
the form of Exhibit C-2 hereto or does not specify all of the
information required in clause (c) of this Section;

 

(B)           contains qualifying,
conditional or similar language;

 

(C)           contains proposed terms
other than or in addition to those set forth in the applicable Invitation for
Bid Loan Quotes; or

 

21

 

(D)          arrives after the time
set forth in clause (c) of this Section shall be disregarded by the
Agent.

 

(d)           Notice
to Borrower.  The Agent shall (by
telephone confirmed by telecopy), by 4:00 p.m. (New York City time) on the
fourth Business Day prior to the proposed date of Borrowing, notify the
Borrower of the terms of any Competitive Bid Loan quote submitted by a Lender
that is in accordance with clause (c) of this Section.  The Agent’s notice to the Borrower shall
specify (A) the Currency or Non-Major Alternate Currency of the Competitive Bid
Loan, (B) the aggregate principal amount of Competitive Bid Loans for which
offers have been received specified in the related Competitive Bid Loan
Borrowing Request, (c) the principal amounts and LIBO Rate Bid Margins or Fixed
Rates so offered, and (D) the identity of such quoting Lenders.

 

(e)           Competitive Bid Loan
Acceptance.  The Borrower shall, in
turn, by telephone confirmed by telecopy before 11:00 a.m. (New York City time)
on the third Business Day prior to the proposed date of such proposed
Competitive Bid Loan Borrowing, either

 

(i)            irrevocably cancel the
Competitive Bid Loan Borrowing Request that requested such Competitive Bid Loan
Borrowing by giving the Agent (which shall promptly notify each Lender)
telephonic notice (promptly confirmed in writing) to that effect (and, for
purposes of this Section, a failure on the part of the Borrower to timely
notify the Agent under the terms of this clause shall be deemed to be
non-acceptance of all offers so notified to it pursuant to clause (d),
above), or

 

(ii)           irrevocably accept one
or more of the offers made by any Lender or Lenders pursuant to clause (d)
above, in its sole discretion, by giving the Agent telephonic notice (and the
Agent shall, promptly upon receiving such telephonic notice from the Borrower,
notify each Lender whose Competitive Bid Loan quote has been accepted)
(promptly confirmed in writing by delivery to the Agent of a Competitive Bid
Loan Borrowing Notice) of

 

(A)          the Currency or
Non-Major Alternate Currency of the Competitive Bid Loan Borrowing to be made,

 

(B)           the amount of the
Competitive Bid Loan Borrowing to be made on such date, and

 

(C)           the amount of the
Competitive Bid Loan (which amount shall not be greater than the amount offered
by such Lender for such Competitive Bid Loan pursuant to clause (d)
above) to be made by such Lender as part of such Competitive Bid Loan
Borrowing, and reject any remaining offers made by Lenders pursuant to clause
(d) above by giving the Agent (which shall promptly give to the Lenders)
notice to that effect;

 

provided,
however, that

 

22

 

(D)          the Borrower shall not
accept an offer made at a particular Competitive Bid Rate if the Borrower has
decided to reject an offer made in respect of the same Competitive Bid Loan
with the same Competitive Bid Loan Maturity Date at a lower Competitive Bid
Rate of the type requested by the Borrower,

 

(E)           the aggregate principal
amount of the Competitive Bid Loan Offers accepted by the Borrower shall not
exceed the principal amount specified in the Competitive Bid Loan Borrowing
Request,

 

(F)           if the Borrower shall
accept an offer or offers made at a particular Competitive Bid Rate but the
amount of such offer or offers shall cause the total amount of offers to be
accepted by the Borrower to exceed the amount specified in the Competitive Bid
Loan Borrowing Request, then the Borrower shall (notwithstanding the minimum
offer acceptance amount required by clause (G) below)

 

(1)           accept a portion of
such offer or offers in an aggregate amount equal to the amount specified in
the Competitive Bid Loan Borrowing Request less the amount of all other offers
accepted with respect to such Competitive Bid Loan Borrowing Request, and

 

(2)           allocate the Competitive
Bid Loans in respect of which such offers are accepted among the Lenders
submitting such offers as nearly as possible in proportion to the aggregate
amount of such offers made by each Lender (provided that if the available
principal amount of Competitive Bid Loans to be so allocated is not sufficient
to enable Competitive Bid Loans to be so allocated to each such Lender in a
minimum principal amount of $5,000,000 and in integral multiples of $1,000,000,
or the Foreign Currency Equivalent thereof, the Borrower shall select the
Lenders to be allocated such Competitive Bid Loans in a minimum principal
amount of $1,000,000 and round allocations up to the next higher multiple of
$1,000,000 (or the Foreign Currency Equivalent thereof) if necessary; provided,
further, however, that no Lender shall be required to make a Competitive
Bid Loan if, as a result of such allocation, the principal amount of such
Lender’s Competitive Bid Loan would be less than $5,000,000 (or the Foreign
Currency Equivalent thereof), unless otherwise agreed to by such Lender),

 

(G)           no bid shall be
accepted for a Competitive Bid Loan unless such Competitive Bid Loan is in a
minimum principal amount of $5,000,000 (except as provided in clause (F)
above) and an integral multiple of $1,000,000 and is part of a Competitive Bid
Loan Borrowing in a minimum principal amount of $5,000,000 (or, in each case,
the Foreign Currency Equivalent thereof), and

 

23

 

(H)          the Borrower may not
accept any offer that is described in clause (c)(ii) of this Section, or
that otherwise fails to comply with the requirements of this Agreement.

 

A notice given by
the Borrower pursuant to this clause (e)(ii) shall be irrevocable.

 

(f)            Funding of
Competitive Bid Loans.  Not later
than 11:00 a.m. (New York City time) on the date specified for each Competitive
Bid Loan hereunder, each Lender participating therein shall make available the
amount of the Competitive Bid Loan to be made by it on such date to Agent in
immediately available funds, for the account of the Borrower, such deposit to
be made to an account maintained by the Agent, as the Agent shall specify from
time to time by notice to the Lenders. 
The amount so received by the Agent shall be made available to the Borrower
not later than 2:00 p.m. (New York City time) on the date of the requested
Borrowing by depositing the same in immediately available funds in an account
of the Borrower’s notified to the Agent in writing.  Promptly after each Competitive Bid Loan Borrowing, but no later
than the immediately succeeding Business Day, the Borrower will deliver to each
Lender a Competitive Bid Loan Borrowing Notice, specifying the amount of the
Competitive Bid Loan Borrowing, the amounts and Currencies or Non-Major Alternate
Currencies of the Competitive Bid Loans which comprise such Borrowing, the
applicable Competitive Bid Rates accepted, the consequent Competitive Bid
Outstanding Balance, the date on which such Competitive Bid Loan Borrowing was
made and the corresponding Competitive Bid Loan Maturity Date applicable to all
Competitive Bid Loans that are part of such Competitive Bid Loan Borrowing.

 

SECTION 2.4.  Swing
Line Loans.

 

(a)           The Swing Line.  Subject to the terms and conditions set
forth herein, the Swing Line Lender agrees to make loans in Dollars (each such
loan, a “Swing Line Loan”) to the Borrower from time to time on any
Business Day during the period from the Effective Date to the Maturity Date in
an aggregate amount not to exceed at any time outstanding the amount of the
Swing Line Sublimit, notwithstanding the fact that such Swing Line Loans, when
aggregated with the aggregate outstanding principal amount of all Revolving
Loans of the Swing Line Lender in its capacity as a Lender of Revolving Loans,
may exceed the amount of such Lender’s Commitment; provided, however,
that after giving effect to any Swing Line Loan, (i) the aggregate outstanding
principal amount of all Loans (determined in the case of Loans denominated in a
currency other than Dollars on a the basis of the Dollar Equivalent thereof)
shall not exceed the Commitment Amount, and (ii) the aggregate outstanding
principal amount of all Revolving Loans (determined in the case of Loans
denominated in a currency other than Dollars on a the basis of the Dollar
Equivalent thereof) of any Lender, plus an amount equal to (A) such
Lender’s Percentage multiplied by (B) the then Competitive Bid Outstanding
Balance (determined in the case of Loans denominated in a currency other than
Dollars on a the basis of the Dollar Equivalent thereof) plus an amount
equal to such Lender’s Percentage multiplied by the then aggregate outstanding
principal amount of all Swing Line Loans shall not exceed such Lender’s
Commitment.  Within the foregoing

 

24

 

limits, and subject to the other terms and conditions
hereof, the Borrower may from time to time borrow, repay and reborrow Swing
Line Loans under this Agreement.  Each
Swing Line Loan shall be a Base Rate Loan. 
Immediately upon the making of a Swing Line Loan, each Lender shall be
deemed to, and hereby irrevocably and unconditionally agrees to, purchase from
the Swing Line Lender a risk participation in such Swing Line Loan in an amount
equal to the product of such Lender’s Percentage times the amount of
such Swing Line Loan.

 

(b)           Borrowing Procedures.  Each Swing Line Borrowing shall be made upon
the Borrower’s irrevocable notice to the Swing Line Lender and the Agent, which
may be given by telephone.  Each such
notice must be received by the Swing Line Lender and the Agent not later than
1:00 p.m. (New York City time) on the requested borrowing date, and shall
specify (i) the amount to be borrowed, which shall be a minimum of $1,000,000,
and (ii) the requested borrowing date, which shall be a Business Day.  Each such telephonic notice must be
confirmed promptly by delivery to the Swing Line Lender and the Agent of a
written Swing Line Loan Borrowing Request, appropriately completed and signed
by an Authorized Officer of the Borrower. 
Promptly after receipt by the Swing Line Lender of any telephonic Swing
Line Loan Borrowing Request, the Swing Line Lender will confirm with the Agent
(by telephone or in writing) that the Agent has also received such Swing Line
Loan Borrowing Request and, if not, the Swing Line Lender will notify the Agent
(by telephone or in writing) of the contents thereof.  Unless the Swing Line Lender has received notice (by telephone or
in writing) from the Agent (including at the request of any Lender) prior to
2:00 p.m. (New York City time) on the date of the proposed Swing Line Borrowing
(A) directing the Swing Line Lender not to make such Swing Line Loan as a
result of the limitations set forth in the proviso to the first sentence of Section 2.4(a),
or (B) that one or more of the applicable conditions specified in Article V
is not then satisfied, then, subject to the terms and conditions hereof, the
Swing Line Lender will, not later than 3:00 p.m. (New York City time) on the
borrowing date specified in such Swing Line Loan Borrowing Request, make the
amount of its Swing Line Loan available to the Borrower.

 

(c)           Refinancing of Swing
Line Loans.

 

(i)            The Swing Line Lender
at any time in its sole and absolute discretion may request, on behalf of the
Borrower (which hereby irrevocably requests the Swing Line Lender to so request
on its behalf), that each Lender make a Revolving Loan as a Base Rate Loan in
an amount equal to such Lender’s Percentage of the amount of Swing Line Loans
then outstanding.  Such request shall be
made in accordance with the requirements of Section 2.1(b), without
regard to the minimum and multiples specified therein for the principal amount
of Base Rate Loans, but subject to the unutilized portion of the Commitment
Amount and the conditions set forth in Section 5.2.  The Swing Line Lender shall furnish the
Borrower with a copy of the applicable Revolving Loan Borrowing Request
promptly after delivering such notice to the Agent.  Each Lender shall make an amount equal to its Percentage of the
amount specified in such Revolving Loan Borrowing Request available to the
Agent in immediately available funds for the account of the Swing Line Lender
at the Agent’s Office

 

25

 

not later than 1:00 p.m. (New York City time) on the
day specified in such Revolving Loan Borrowing Request, whereupon, subject to Section 2.4(c)(ii),
each Lender that so makes funds available shall be deemed to have made a Base
Rate Loan to the Borrower in such amount. 
The Agent shall remit the funds so received to the Swing Line Lender.

 

(ii)           If for any reason any
Revolving Loan Borrowing cannot be requested in accordance with Section 2.4(c)(i)
or any Swing Line Loan cannot be refinanced by such a Revolving Loan Borrowing,
the Revolving Loan Borrowing Request submitted by the Swing Line Lender shall
be deemed to be a request by the Swing Line Lender that each of the Lenders
fund its risk participation in the relevant Swing Line Loan and each Lender’s
payment to the Agent for the account of the Swing Line Lender pursuant to Section 2.4(c)(i)
shall be deemed payment in respect of such participation.

 

(iii)          If any Lender fails to
make available to the Agent for the account of the Swing Line Lender any amount
required to be paid by such Lender pursuant to the foregoing provisions of this
Section 2.4(c) by the time specified in Section 2.4(c)(i),
the Swing Line Lender shall be entitled to recover from such Lender (acting
through the Agent), on demand, such amount with interest thereon for the period
from the date such payment is required to the date on which such payment is
immediately available to the Swing Line Lender at a rate per annum equal to the
Federal Funds Rate from time to time in effect.  A certificate of the Swing Line Lender submitted to any Lender
(through the Agent) with respect to any amounts owing under this clause (iii)
shall be conclusive absent manifest error.

 

(iv)          Each Lender’s obligation
to make Revolving Loans or to purchase and fund risk participations in Swing Line
Loans pursuant to this Section 2.4(c) shall be absolute and
unconditional and shall not be affected by any circumstance, including (A) any
set-off, counterclaim, recoupment, defense or other right which such Lender may
have against the Swing Line Lender, the Borrower or any other Person for any
reason whatsoever, (B) the occurrence or continuance of a Default or Event of
Default, or (C) any other occurrence, event or condition, whether or not
similar to any of the foregoing.  Any
such purchase of participations shall not relieve or otherwise impair the
obligation of the Borrower to repay Swing Line Loans, together with interest as
provided herein.

 

(d)           Repayment of
Participations.

 

(i)            At any time after any
Lender has purchased and funded a participation in a Swing Line Loan, if the
Swing Line Lender receives any payment on account of such Swing Line Loan, the
Swing Line Lender will distribute to such Lender its Percentage of such payment
(appropriately adjusted, in the case of interest payments, to reflect the
period of time during which such Lender’s participation was outstanding and
funded) in the same funds as those received by the Swing Line Lender.

 

26

 

(ii)           If any payment received
by the Swing Line Lender in respect of principal or interest on any Swing Line
Loan is required to be returned by the Swing Line Lender, each Lender shall pay
to the Swing Line Lender its Percentage thereof on demand of the Agent, plus
interest thereon from the date of such demand to the date such amount is
returned, at a rate per annum equal to the Federal Funds Rate.  The Agent will make such demand upon the
request of the Swing Line Lender.

 

(e)           Interest for Account
of Swing Line Lender.  The Swing
Line Lender shall be responsible for invoicing the Borrower for interest on the
Swing Line Loans.  Until each Lender
funds its Base Rate Loan or participation pursuant to this Section 2.4
to refinance such Lender’s Percentage of any Swing Line Loan, interest in
respect of such Percentage shall be solely for the account of the Swing Line
Lender.

 

(f)            Payments Directly
to Swing Line Lender.  The Borrower
shall make all payments of principal and interest in respect of the Swing Line
Loans directly to the Swing Line Lender.

 

SECTION 2.5.  Continuation
and Conversion Elections.  By
delivering a Continuation/Conversion Notice to the Agent on or before 11:00
a.m. (New York City time) on a Business Day, the Borrower may from time to time
irrevocably elect, on not less than three nor more than five Business Days’
notice, that all, or any portion in an aggregate minimum amount of $5,000,000
and an integral multiple of $1,000,000 or the Foreign Currency Equivalent
thereof, of the Revolving Loans be, (a) in the case of Base Rate Loans, converted
into LIBO Rate Loans, (b) in the case of LIBO Rate Loans denominated in
Dollars, be converted into Base Rate Loans or continued as LIBO Rate Loans, or
(c) in the case of LIBO Rate Loans denominated in an Alternate Currency,
continued as LIBO Rate Loans in the same Currency.

 

In the absence of delivery of a
Continuation/Conversion Notice with respect to LIBO Rate Loans (which are
Revolving Loans) at least three Business Days’ before the last day of the then
current Interest Period with respect thereto,

 

(a)           LIBO Rate Loans
denominated in Dollars shall be converted automatically on such last day to
Base Rate Loans, and

 

(b)           LIBO Rate Loans
denominated in an Alternate Currency shall be continued as Loans in the
relevant Alternate Currency at a rate per annum equal to the LIBO Alternate
Rate for such relevant Currency plus the applicable margin for the shortest
available interest period selected by the Agent in its sole discretion (but not
later than the Maturity Date).

 

Each such conversion and continuation shall be
prorated among the applicable outstanding Loans of all Lenders, and no portion
of the outstanding principal amount of any Loans may be continued as, or be
converted into, LIBO Rate Loans when any Default has occurred and is
continuing.  The Agent shall promptly
notify each Lender of the applicable interest period and interest rate.

 

27

 

SECTION 2.6.  Funding.  Each Lender may, if it so elects, fulfill
its obligation to make, continue or convert LIBO Rate Loans hereunder by
causing one of its foreign branches or Affiliates (or an international banking
facility created by such Lender) to make, continue or convert such LIBO Rate
Loan; provided,  however, that such LIBO Rate Loan shall
nonetheless be deemed to have been made and to be held by such Lender, and the
obligation of the Borrower to repay such LIBO Rate Loan shall nevertheless be
to such Lender for the account of such foreign branch, Affiliate or
international banking facility.  In
addition, the Borrower hereby consents and agrees that, for purposes of any
determination to be made for purposes of Section 4.1, 4.2, 4.3
it shall be conclusively assumed that each Lender elected to fund all LIBO Rate
Loans by purchasing deposits in the relevant currency in the relevant interbank
eurodollar market.

 

SECTION 2.7.  Notes.  Each Lender’s Loans shall be evidenced by a
Note, as applicable, payable to the order of such Lender in a principal amount
equal to:

 

(a)           in the case of
Revolving Loans, such Lender’s original Revolving Commitment Amount,

 

(b)           in the case of
Competitive Bid Loans, $225,000,000, and

 

(c)           in the case of Swing
Line Loans, the Swing Line Sublimit payable to the Swing Line Lender.

 

The Borrower hereby
irrevocably authorizes each Lender to make (or cause to be made) appropriate
notations on the grid attached to such Lender’s Note (or on any continuation of
such grid), which notations, if made, shall evidence, inter  alia,
the date of, the outstanding principal of, and Interest Period (in the case of
Revolving Loans), or Competitive Bid Loan Maturity Dates and Competitive Bid
Loan Interest Payment Dates (in the case of Competitive Bid Loans) applicable
to the Loans evidenced thereby.  Such
notations shall constitute prima facie evidence of the accuracy of the
information so recorded; provided,  however, that the failure of
any Lender to make any such notations shall not limit or otherwise affect any
obligations of the Borrower.

 

SECTION 2.8.  Multicurrency
Loans.

 

SECTION 2.8.1. 
Notification of Request. 
If any Revolving Loan Borrowing Request requests a Borrowing in an
Alternate Currency, the Agent shall in the notice given to the Lenders pursuant
to Section 2.1 give details of such request including, without
limitation, the aggregate principal amount of the Revolving Loan Borrowing in
such Alternate Currency to be made by each Lender pursuant to this Agreement.

 

SECTION 2.8.2. 
Availability.  Each Lender
shall be treated as having confirmed that the Alternate Currency requested is
Available to it unless no later than 10:00 a.m. (New York City time) on the
third Business Day before the Revolving Loan Borrowing it shall have notified
the Agent that such Alternate Currency is not Available.

 

SECTION 2.8.3. 
Notification of Availability. 
No later than 2:00 p.m. (New York City time) on the third Business Day
before the proposed Borrowing the Agent shall notify the

 

28

 

Borrower and the Lenders if it has received notification from any of
the Lenders that the Alternate Currency is not Available.

 

SECTION 2.8.4. 
Consequences of Availability. 
If the Agent does not notify the Borrower and the Lenders that the Agent
has received notification from any of the Lenders that the Alternate Currency
requested is not Available, the Lenders shall, on the proposed date of the
Revolving Loan Borrowing specified in the Revolving Loan Borrowing Request
become obligated, subject to this Section 2.8, to make the LIBO
Rate Loan in accordance with the provisions of this Agreement.

 

SECTION 2.8.5. 
Unexpected Non-Availability. 
If, at any time before 10:00 a.m. (New York City time) on the proposed
Revolving Loan Borrowing date, any Lender shall have determined that the
Alternate Currency in which it is obliged to make a LIBO Rate Loan or a
Competitive Bid Loan is no longer Available to it by reason that, under the
then current legislation or regulations of the country of incorporation of such
Lender or the country of such Alternate Currency (or the then policy of the
central bank of such country) or the Bank of England or the F.R.S.  Board, such Alternate Currency is not or
will not be permitted to be used for the purposes of this Agreement, then such
Lender shall give notice to the Agent (and shall include in such notice a
statement of which other Alternate Currencies are not Available to such
Lender), and the Agent shall give notice to the Borrower, and the obligation of
such Lender to make its share of such Borrowing in such Alternate Currency
shall be replaced on the following basis:

 

(a)           The Borrower shall be
entitled to notify the Agent (which shall promptly notify each affected Lender)
not later than 10:00 a.m. (New York City time) on the third Business Day before
the proposed Borrowing, that the Borrower elects either that the said
obligation of the relevant Lender shall be:

 

(i)            replaced by an
obligation to make a Loan in Dollars by that Lender having an aggregate
principal amount equal to its share of such Borrowing in the Alternate
Currency, rounded, if necessary, as the Agent shall decide, which such Lender
would otherwise have been required to make; or

 

(ii)           replaced by an
obligation to make a LIBO Rate Loan in an Alternate Currency by that Lender in
an Alternate Currency (other than any Alternate Currency which such Lender shall
have stated, as provided above, is not Available to it), such Alternate
Currency having an aggregate principal amount which is, on the date on which
such notification is actually received by the Agent, the equivalent amount of
its share of such Borrowing, rounded, if necessary, as the Agent shall decide,
which such Lender would otherwise have been requested to make.

 

(b)           For purposes of clauses
(i) and (ii) of paragraph (a) of this Section, any rounding
in the amount of Loans by the Agent shall not result in any Lender making Loans
in an aggregate principal amount exceeding such Lender’s Commitment.

 

29

 

(c)           If the Borrower has not
notified the Agent as provided in paragraph (a) above, the obligation of
the Lender shall be replaced by such an obligation as is mentioned in clause
2.8.5(a)(i).

 

If such Lender shall be
required under paragraph (a) or paragraph (b) of Section 2.8.5
to make the Loan mentioned therein, such Borrowing shall be made on the date of
the proposed Borrowing, shall have the same Interest Period as the Alternate
Currency Advance which it replaces and the applicable interest rate shall be
calculated in accordance with Section 3.3.1 (as though such
Borrowing were a separate Loan denominated in Dollars or, as the case may be,
in the relevant Alternate Currency).

 

SECTION 2.8.6. 
Consequences of Non-Availability.  If the Agent notifies the Borrower pursuant to Section 2.8.3
that any of the Lenders has notified the Agent that the Alternate Currency is
not Available, such notification shall revoke the relevant Borrowing Request.

 

ARTICLE III

 

REPAYMENT,
PREPAYMENTS, INTEREST AND FEES

 

SECTION 3.1.  Repayment.

 

(a)           The Borrower shall
repay in full the unpaid principal amount of all Revolving Loans on the
Maturity Date.

 

(b)           The Borrower shall
repay in full the unpaid principal amount of all Competitive Bid Loans on the
Competitive Bid Loan Maturity Date thereof.

 

(c)           The Borrower shall
repay in full each Swing Line Loan on the earlier to occur of (i) the date five
Business Days after such Loan is made and (ii) the Maturity Date.

 

(d)           The Borrower shall,
immediately upon any acceleration of the Maturity Date of any Loans pursuant to
Section 8.2 or Section 8.3, repay the aggregate unpaid
principal amount of all Loans so accelerated.

 

SECTION 3.2.  Prepayments.

 

(a)           The Borrower may, from
time to time on any Business Day, make a voluntary prepayment, in whole or in
part, of the outstanding principal amount of any Revolving Loans; provided,
however, that

 

(i)            any such prepayment
shall be made pro  rata among Revolving Loans of the same type
and, if applicable, having the same Interest Period of all Lenders,

 

(ii)           all such voluntary
prepayments shall require at least three Business Days’ prior written notice to
the Agent, and

 

30

 

(iii)          all such voluntary
partial prepayments shall be in an aggregate minimum amount of $5,000,000 and
an integral multiple of $1,000,000 or, if denominated in a Currency other than
Dollars, the Foreign Currency Equivalent thereof, rounded to the nearest one
million units of such Currency.

 

(b)           The Borrower shall, on
each date when any reduction in the Commitment Amount shall become effective
including pursuant to Section 2.2, make a mandatory prepayment of
Loans equal to the excess, if any, of the aggregate outstanding principal
amount of all Loans over the Commitment Amount as so reduced.

 

(c)           The Borrower shall, on
each date when the making of any Competitive Bid Loans would cause the
aggregate outstanding principal amount of all Loans (determined, in the case of
Loans denominated in a currency other than Dollars, on the basis of the Dollar
Equivalent thereof) to exceed the Commitment Amount, make a mandatory
prepayment of, first, all Swing Line Loans in a principal amount equal
to such excess, and second, all Revolving Loans in a principal amount
equal to such excess.

 

(d)           The Borrower shall have
no right to prepay, in whole or in part, the outstanding principal amount of
any Competitive Bid Loan, unless the Lender that has made such Competitive Bid
Loan otherwise agrees in writing.

 

(e)           The Borrower may, upon
notice to the Swing Line Lender (with a copy to the Agent), at any time or from
time to time, voluntarily prepay Swing Line Loans in whole or in part; provided
that (i) such notice must be received by the Swing Line Lender and the Agent
not later than 1:00 p.m. (New York City time) on the date of the prepayment,
and (ii) any such prepayment shall be in a minimum principal amount of
$100,000.  Each such notice shall
specify the date and amount of such prepayment.  If such notice is given by the Borrower, the Borrower shall make
such prepayment and the payment amount specified in such notice shall be due
and payable on the date specified therein

 

(f)            On the date of the
making of any Loan and on the date of a Continuation/Conversion Notice with
respect to any Loan or at any other time periodically, the Agent shall
determine that the aggregate principal amount of all Loans outstanding (after
converting all Loans denominated in Alternate Currencies or Non-Major Alternate
Currencies to their Dollar Equivalent on the date of calculation) is greater
than 105% of the Commitment Amount then in effect, the Borrower shall, upon
three Business Days, written notice from the Agent, prepay an aggregate
principal amount of such Loans denominated in Alternate Currencies or Non-Major
Alternate Currencies, as the case may be, such that the Dollar Equivalent of
the outstanding principal amount of such Loans, when added to the aggregate
principal amount of all Loans outstanding denominated in Dollars, does not
exceed the Commitment Amount.

 

(g)           Each prepayment of any
Loans made pursuant to this Section shall be without premium or penalty,
except as may be required by Section 4.4.  No voluntary prepayment of principal of any Loans shall cause a
reduction in the Commitment Amount.

 

31

 

SECTION 3.3.  Interest
Provisions.  Interest on the
outstanding principal amount of Loans shall accrue and be payable in accordance
with this Section 3.3.

 

SECTION 3.3.1. 
Rates.  Pursuant to an
appropriately delivered Borrowing Request or Continuation/Conversion Notice,
the Borrower may elect that the Loans accrue interest at a rate per annum:

 

(a)           on that portion
maintained from time to time as Base Rate Loans (including, all Swing Line
Loans), equal to the Alternate Base Rate from time to time in effect;

 

(b)           on that portion
maintained as LIBO Rate Loans that are Revolving Loans, during each Interest
Period applicable thereto, equal to the sum of the LIBO Rate (Reserve Adjusted)
or the LIBO Alternate Rate, as the case may be, applicable to the relevant
Currency for such Interest Period plus the margin set forth below opposite the Borrower’s
Senior Debt Ratings in the following table:

 

	
  If the
  Borrower’s

  Senior Debt Ratings are

  	
   

  	
  The

  Applicable

  Margin is

  
	
  S&P

  	
   

  	
  Moody’s

  	
   

  
	
  A+ or above

  	
   

  	
  A1 or above

  	
   

  	
  15.00 b.p.

  
	
  A

  	
   

  	
  A2

  	
   

  	
  20.50  b.p.

  
	
  A-

  	
   

  	
  A3

  	
   

  	
  29.00  b.p.

  
	
  BBB+

  	
   

  	
  Baa1

  	
   

  	
  37.50  b.p.

  
	
  BBB

  	
   

  	
  Baa2

  	
   

  	
  47.50  b.p.

  
	
  BBB- or below

  	
   

  	
  Baa3 or below

  	
   

  	
  67.50  b.p.

  

 

If, during any Interest
Period, there is any change in such Senior Debt Ratings which would result in
an adjustment in the Applicable Margin, such adjustment shall be effective as
of the date on which such change occurs. 
For purposes of determining the Applicable Margin, if Moody’s and
S&P have split Senior Debt Ratings with a difference of only one rating
tier, the higher Senior Debt Rating shall be determinative and the lower Senior
Debt Rating shall be disregarded, and if Moody’s and S&P have split Senior
Debt Ratings with a difference of more than one rating tier, the debt rating
one rating tier below the higher Senior Debt Rating will be determinative and
both Senior Debt Ratings will be disregarded; and

 

(c)           from (and including)
the date any Competitive Bid Loan is made until the maturity thereof, interest
shall accrue on the outstanding principal amount of such Competitive Bid Loan
at a rate per annum equal to the Competitive Bid Rate specified by the Lender
making such Competitive Bid Loan in its Competitive Bid Loan offer with respect
thereto delivered pursuant to clause (d) of Section 2.3
above and accepted by the Borrower pursuant to clause (e) of Section 2.3;

 

32

 

provided,
however, that if the interest rate elected by the Borrower exceeds the
highest lawful rate, then the applicable interest rate per annum for any Loan
shall be the highest lawful rate.

 

The “LIBO Alternate Rate” means, with respect
to any Loan for which a Continuation/Conversion Notice has not been delivered
in accordance with Section 2.5 that is denominated in any
Alternate/Currency, relative to the interest period therefor selected by the
Agent in its sole discretion,

 

(a)           in the case of Loans
denominated in Sterling, the sum of

 

(i)            the rate of interest
equal to the average (rounded upwards, if necessary, to the nearest 1/16 of 1%)
of the rates per annum at which Sterling deposits in immediately available
funds are offered to each Reference Lender’s LIBOR Office in the London
interbank market as at or about 11:00 a.m. (London time) on the first day of
such interest period for delivery on the first day of such interest period, and
in an amount approximately equal to the relevant amount and for a period
approximately equal to such interest period;

 

plus

 

(ii)           Associated Costs; and

 

(b)           in the case of Loans
denominated in Alternate currencies other than Sterling, the rate of interest
equal to the average (rounded upwards, if necessary, to the nearest 1/16 of 1%)
of the rates per annum at which the relevant Currency deposits in immediately
available funds are offered to each Reference Lender’s LIBOR Office in the
London interbank market as at or about 11:00 a.m. (London time) two Business
Days prior to the beginning of such interest period for delivery on the first
day of such interest period, and in an amount approximately equal to the
relevant amount and for a period approximately equal to such interest period.

 

If the relevant amount is
all or part of a LIBO Rate Loan in an Alternate Currency which became due and
payable on a day other than the last day of the Interest Period relating
thereto, the first such interest period selected by the Agent shall be of a
duration equal to the unexpired portion of the such Interest Period.  The LIBO Alternate Rate for any interest
period for any Loan bearing interest at the LIBO Alternate Rate will be
determined by the Agent on the basis of information in effect on, and the
applicable rates furnished to and received by the Agent from the Reference
Lenders, (x) in the case of Sterling, on the first day of such interest period,
or (y) in the case of Alternate Currencies (other than Sterling), two Business
Days before the first day of such interest period, subject, however,
to the provisions of Section 3.3.4.  If for any such interest period selected by the Agent, adequate
means do not exist for the Reference Lenders to determine the LIBO Alternate
Rate for any Currency as set forth above, the LIBO Alternate Rate for such
Currency shall be determined by reference to the cost to each of the Reference
Lenders of obtaining deposits of such Currency from such sources as each such
Reference Lender may reasonably select. 
The Agent shall determine the LIBO Alternate Rate for each such interest
period (which determination shall be conclusive in the absence of manifest
error), and will promptly give notice to the Borrower and the Lenders thereof.

 

33

 

The “LIBO Rate (Reserve Adjusted)” means,
relative to any Loan to be made, continued or maintained as, or converted into,
a LIBO Rate Loan bearing interest at the LIBO Rate or the LIBO Alternate Rate,
as the case may be, for any Interest Period,

 

(a)           which is denominated in
Dollars, a rate per annum (rounded upwards, if necessary, to the nearest 1/16
of 1%) determined pursuant to the following formula:

 

	
  LIBO Rate

  	
  =

  	
  LIBO Rate

  
	
  (Reserve Adjusted)

  	
   

  	
  1.00 - LIBOR
  Reserve Percentage

  

 

(b)           which is denominated in
Sterling, a rate per annum (rounded upwards, if necessary, to the nearest 1/16
of 1%) determined pursuant to the following formula:

 

	
  LIBO Rate

  	
   

  	
  =

  	
  LIBO

  	
   

  	
  +

  	
   

  	
  Associated Costs

  
	
  (Reserve
  Adjusted)

  	
   

  	
   

  	
  Rate

  	
   

  	
   

  	
   

  	
   

  

 

(c)           which is denominated in
any other Alternate Currency, the relevant LIBO Rate or LIBO Alternate Rate, as
the case may be, plus any applicable reserve or other funding costs incurred by
the Lenders in making such Loan.

 

The LIBO Rate (Reserve Adjusted) for any Interest
Period for LIBO Rate Loans will be determined by the Agent on the basis of the
LIBOR Reserve Percentage in effect on, and the applicable rates furnished to
and received by the Agent from the Reference Lenders, two Business Days before
the first day of such Interest Period, subject, however, to the provisions of Section 3.3.4.

 

“LIBO Rate” means, relative to any Interest
Period,

 

(a)  with respect to LIBO Rate Loans denominated
in Dollars, the rate of interest equal to the average (rounded upwards, if
necessary, to the nearest 1/16 of 1%) of the rates per annum at which Dollar
deposits in immediately available funds are offered to each Reference Lender’s
LIBOR Office in the London interbank market as at or about 11:00 a.m. London
time two Business Days prior to the beginning of such Interest Period for delivery
on the first day of such Interest Period, and in an amount approximately equal
to the amount of each such Reference Lender’s LIBO Rate Loan and for a period
approximately equal to such Interest Period;

 

(b)  with respect to LIBO Rate Loans denominated
in any Alternate Currency, the rate of interest equal to the average (rounded
upwards, if necessary, to the nearest 1/10,000 of 1%) for the relevant
Alternate Currency for a period equal to such Interest Period which appears

 

(i)            with respect to Sterling,
on Telerate, Page 3750;

 

(ii)           with respect to Euros,
on Telerate Page 3750;

 

(iii)          with respect to
Deutschemarks, on Telerate Page 3750; and

 

34

 

(iv)          with respect to Yen, on
Telerate Page 3750;

 

as of 11:00 a.m. (London
time) (x) in the case of Sterling, on the first day of such Interest Period, or
(y) in the case of Alternate Currencies (other than Sterling), two Business
Days before the first day of such Interest Period, or, if fewer than two such offered
rates appear on the relevant Telerate Page, the rate of interest equal to the
average (rounded upwards, if necessary, to the nearest 1/10,000 of 1%) of the
rates per annum at which deposits in the relevant Alternate Currency in
immediately available funds are offered to each Reference Lender’s LIBOR Office
in the London interbank market as at or about 11:00 a.m. (London time) (x) in
the case of Sterling, on the first day of such Interest Period, or (y) in the
case of Alternate Currencies (other than Sterling), two Business Days before
the first day of such Interest Period for delivery on the first day of such
Interest Period, and in an amount approximately equal to the amount of the
Loans requested and for a period approximately equal to such Interest Period.

 

“LIBOR Reserve Percentages” means, relative to
any Interest Period for LIBO Rate Loans, the reserve percentage (expressed as a
decimal) equal to the maximum aggregate reserve requirements (including all
basic, emergency, supplemental, marginal and other reserves and taking into
account any transitional adjustments or other scheduled changes in reserve
requirements) specified under regulations issued from time to time by the
F.R.S. Board and then applicable to assets or liabilities consisting of and including
“Eurocurrency Liabilities”, as currently defined in Regulation D of the F.R.S.
Board, having a term approximately equal or comparable to such Interest Period.

 

All LIBO Rate Loans shall bear interest from and
including the first day of the applicable Interest Period to (but not
including) the last day of such Interest Period at the interest rate determined
as applicable to such LIBO Rate Loan.

 

SECTION 3.3.2. 
Post-Maturity Rates. 
After the date any principal amount of any Loan is due and payable
(whether on the Maturity Date, upon acceleration or otherwise), or after any
other monetary Obligation shall have become due and payable, the Borrower shall
pay, but only to the extent permitted by law, interest (after as well as before
judgment) on such amounts at a rate per annum equal to the Alternate Base Rate
plus a margin of 2% for Loans denominated in Dollars and, with respect to Loans
denominated in an Alternate Currency, at a rate per annum equal to the LIBO
Rate or LIBO Alternate Rate, as the case may be, in such Alternate Currency
plus a margin of 2%.

 

SECTION 3.3.3. 
Payment Dates.  Interest
accrued on each Loan shall be payable, without duplication:

 

(a)           on the Maturity Date;

 

(b)           on the date of any
payment or prepayment, in whole or in part, of principal outstanding on such
Loan;

 

(c)           on each Competitive Bid
Loan Maturity Date and, with respect to Competitive Bid Loans with a
Competitive Bid Loan Maturity Date in excess of three months, on each three
(and integral of three) month anniversary of the making of such Loan;

 

35

 

(d)           with respect to LIBO
Rate Loans, on the last day of each applicable Interest Period (and, if such
Interest Period shall exceed three months, on each three (and integral multiple
of three) month anniversary of the making of such Loan);

 

(e)           with respect to Base
Rate Loans, on each Quarterly Payment Date;

 

(f)            with respect to any
Base Rate Loans converted into LIBO Rate Loans on a day when interest would not
otherwise have been payable pursuant to clause (e), on the date of such
conversion; and

 

(g)           on that portion of any
Loans the Maturity Date of which is accelerated pursuant to Section 8.2
or Section 8.3, immediately upon such acceleration.

 

Interest accrued on Loans
or other monetary Obligations arising under this Agreement or any other Loan
Document after the date such amount is due and payable (whether on the Maturity
Date, upon acceleration or otherwise) shall be payable upon demand.

 

SECTION 3.3.4. 
Interest Rate Determination. 
Each Reference Lender agrees to furnish to the Agent timely information
for the purpose of determining the LIBO Rate and the LIBO Alternate Rate.  If any one or more of the Reference Lenders
shall fail timely to furnish such information to the Agent, the Agent shall
determine such interest rate on the basis of the information furnished by the
remaining Reference Lenders.  The Agent
shall provide each Lender with the LIBO Rate applicable to each LIBO Rate Loan
within two Business Days prior to the making of such LIBO Rate Loan.

 

SECTION 3.4.  Fees.  The Borrower agrees to pay the fees set
forth in this Section 3.4. 
All such fees shall be nonrefundable.

 

SECTION 3.4.1. 
Facility Fee.  The
Borrower agrees to pay to the Agent for the pro  rata account of
each Lender, in accordance with such Lender’s Percentage, an annual facility
fee equal to the Commitment Amount multiplied by the fee set forth below
opposite the Borrower’s Senior Debt Ratings during the quarter for which the
fee is calculated (any change in such Senior Debt Ratings to result in an
adjustment in the applicable facility fee, such adjustment to be effective as
of the date on which such change occurs):

 

	
  If the
  Borrower’s

  Senior Debt Ratings Are

  	
   

  	
  The
  Facility

  Fee Is

  
	
  S&P

  	
   

  	
  Moody’s

  	
   

  
	
  A+ or above

  	
   

  	
  A1 or above

  	
   

  	
  7.50 b.p.

  
	
  A

  	
   

  	
  A2

  	
   

  	
  9.50 b.p.

  
	
  A-

  	
   

  	
  A3

  	
   

  	
  11.00 b.p.

  
	
  BBB+

  	
   

  	
  Baa1

  	
   

  	
  12.50 b.p.

  
	
  BBB

  	
   

  	
  Baa2

  	
   

  	
  15.00 b.p.

  
	
  BBB- or below

  	
   

  	
  Baa3 or below

  	
   

  	
  20.00 b.p.

  

 

36

 

provided
that, for purposes of determining the facility fee, if Moody’s and S&P have
split Senior Debt Ratings with a difference of only one rating tier, the higher
Senior Debt Rating shall be determinative and the lower Senior Debt Rating
shall be disregarded, and provided, further, if Moody’s and
S&P have split Senior Debt Ratings with a difference of more than one
rating tier, the debt rating one rating tier below the higher Senior Debt
Rating will be determinative and both Senior Debt Ratings will be disregarded.

 

The facility fee payable under this Section shall
be based on (i) the Commitment Amount on the Effective Date, and (ii)
thereafter, the Commitment Amount on each anniversary of the Effective Date
(without giving effect, during the one-year period prior to each such
anniversary, to any reduction in the Commitment Amount), such fee to be payable
quarterly in arrears on each Quarterly Payment Date and on the Maturity Date,
and regardless of the amount of Loans outstanding under this Agreement; provided,
however, that in the event a Commitment Termination Event has occurred,
such that the Commitments of the Lenders hereunder are terminated, the Borrower
shall only be obligated to pay such facility fee to the extent that it has
accrued up to the date of such Commitment Termination Event.

 

SECTION 3.4.2. 
Utilization Fee.  The
Borrower agrees to pay to the Agent for the pro  rata account of
each Lender, in accordance with such Lender’s Loans, a utilization fee for each
day from the date hereof to and including the Maturity Date for each day that
the aggregate principal amount of Loans and Other Loans outstanding on the
close of business (if a Business Day) of such day is equal to or greater than
50% of the sum of the Commitment Amount plus the “Commitment Amount” under the
Other Credit Agreement.  The utilization
fee shall accrue at all times, including at any time during which one or more
of the conditions in Article V is not met.  If applicable, such utilization fee shall be
equal to the aggregate principal amount of all Loans outstanding on the close
of business (if a Business Day) of such day multiplied by the Utilization Fee
Rate set forth below opposite the Borrower’s Senior Debt Ratings during the day
for which the fee is calculated (any change in such Senior Debt Ratings to
result in an adjustment in the applicable utilization fee, such adjustment to
be effective as of the date on which such change occurs), payable quarterly in
arrears on each Quarterly Payment Date and on the Maturity Date:

 

	
  If the
  Borrower’s

  Senior Debt Ratings Are

  	
   

  	
  Utilization
  Fee

  Rate

  
	
  S&P

  	
   

  	
  Moody’s

  	
   

  
	
  A+ or above

  	
   

  	
  A1 or above

  	
   

  	
  10.00 b.p.

  
	
  A

  	
   

  	
  A2

  	
   

  	
  10.00 b.p.

  
	
  A-

  	
   

  	
  A3

  	
   

  	
  10.00 b.p.

  
	
  BBB+

  	
   

  	
  Baa1

  	
   

  	
  12.50 b.p.

  
	
  BBB

  	
   

  	
  Baa2

  	
   

  	
  12.50 b.p.

  
	
  BBB- or below

  	
   

  	
  Baa3 or below

  	
   

  	
  12.50 b.p.

  

 

37

 

provided
that, for purposes of determining the utilization fee, if Moody’s and S&P
have split Senior Debt Ratings with a difference of only one rating tier, the
higher Senior Debt Rating shall be determinative and the lower Senior Debt
Rating shall be disregarded, and provided, further, if Moody’s
and S&P have split Senior Debt Ratings with a difference of more than one
rating tier, the debt rating one rating tier below the higher Senior Debt
Rating will be determinative and both Senior Debt Ratings will be disregarded.

 

SECTION 3.4.3. 
Agents’ Fees.  The
Borrower agrees to pay to the Agents and the Lead Arrangers for their own
accounts, fees in such amounts and on such dates as are set forth in the
Transaction Fee Letter.

 

ARTICLE IV

 

CERTAIN
LIBO RATE AND OTHER PROVISIONS

 

SECTION 4.1.  Fixed
Rate Lending Unlawful.  If any
Lender shall determine (which determination shall, upon notice thereof to the
Borrower and the Lenders, be conclusive and binding on the Borrower) that the
introduction of or any change in or in the interpretation of any law makes it
unlawful, or any central bank or other governmental authority asserts that it
is unlawful, for such Lender to make, continue or maintain any Loan as, or to
convert any Loan into, a LIBO Rate Loan (or a Competitive Bid Loan based on the
LIBO Rate Bid Margin), the obligations of all Lenders to make, continue,
maintain or convert any such Loans shall, upon such determination, forthwith be
suspended until such Lender shall notify the Agent that the circumstances
causing such suspension no longer exist, and (a) all LIBO Rate Loans (and
Competitive Bid Loans based on the LIBO Rate Bid Margin) denominated in Dollars
shall automatically convert into Base Rate Loans at the end of the then current
Interest Periods with respect thereto or sooner, if required by such law or
assertion; and (b) all LIBO Rate Loans denominated in any Alternate Currency
shall automatically become due and payable at the end of the then current
Interest Periods with respect thereto or sooner, if required by applicable law.

 

SECTION 4.2.  Deposits
Unavailable.  If the Agent shall
have determined that

 

(a)           Dollar deposits in the
relevant amount and for the relevant Interest Period are not available to the
Reference Lenders (or, with respect to any Competitive Bid Loan, by the Lender
which made such Competitive Bid Loan) in their (or such Competitive Bid Loan
Lender’s) relevant market; or

 

(b)           by reason of
circumstances affecting the Reference Lenders, relevant market, adequate means
do not exist for ascertaining the interest rate applicable hereunder to LIBO
Rate Loans, then, upon notice from the Agent to the Borrower and the

 

38

 

Lenders, the obligations of all Lenders under clause
(b) of Section 2.1 or clause (f) of Section 2.3
to make or continue any Loans as, or to convert any Loans into, LIBO Rate Loans
(or have such Competitive Bid Loans bear interest based on the LIBO Rate Bid
Margins) shall forthwith be suspended until the Agent shall notify the Borrower
and the Lenders that the circumstances causing such suspension no longer exist.

 

SECTION 4.3.  Increased
LIBO Rate Loan Costs, etc.  The
Borrower agrees to reimburse each Lender for any increase in the cost to such
Lender of, or any reduction in the amount of any sum receivable by such Lender
in respect of, making, continuing or maintaining (or of its obligation to make,
continue or maintain) any Loans as, or of converting (or of its obligation to
convert) any Loans into, LIBO Rate Loans, including, without limitation, by
reason of any requirements imposed by the Bank of England upon the making or
funding of LIBO Rate Loans.  Such Lender
shall promptly notify the Agent and the Borrower in writing of the occurrence
of any such event, such notice to state, in reasonable detail, the reasons
therefor and the additional amount required fully to compensate such Lender for
such increased cost or reduced amount. 
Such additional amounts shall be payable by the Borrower directly to
such Lender within five days of its receipt of such notice, and such notice
shall, in the absence of manifest error, be conclusive and binding on the
Borrower.

 

SECTION 4.4.  Funding
Losses.  In the event any Lender
shall incur any loss or expense by reason of the liquidation or reemployment of
deposits or other funds acquired by such Lender to make, continue or maintain
any portion of the principal amount of any Loan as, or to convert any portion
of the principal amount of any Loan into, a LIBO Rate Loan as a result of (a)
any repayment or prepayment of the principal amount of any LIBO Rate Loans on a
date other than the scheduled last day of the Interest Period applicable
thereto, whether pursuant to Section 3.1, Section 3.2
or otherwise; (b) any Loans not being made as LIBO Rate Loans in accordance
with the Borrowing Request therefor; or (c) any Loans not being continued as,
or converted into LIBO Rate Loans in accordance with the
Continuation/Conversion Notice therefor then, upon the written notice of such
Lender to the Borrower (with a copy to the Agent), the Borrower shall, within
five days of its receipt thereof, pay directly to such Lender such amount as
will (in the reasonable determination of such Lender) reimburse such Lender for
such loss or expense.  Such written
notice (which shall include calculations in reasonable detail) shall, in the
absence of manifest error, be conclusive and binding on the Borrower.

 

SECTION 4.5.  Increased
Capital Costs.  If any change in, or
the introduction, adoption, effectiveness, interpretation, reinterpretation or
phase-in of, any law or regulation, directive, guideline, decision or request
(whether or not having the force of law) of any court, central bank, regulator
or other governmental authority after the date hereof affects or would affect
the amount of capital required or expected to be maintained by any Lender, and
such Lender determines (in its sole and absolute discretion) that the rate of
return on its capital as a consequence of its Commitment or the Loans made by
such Lender is reduced to a level below that which such Lender could have
achieved but for the occurrence of any such circumstance, then, in any such
case upon notice from time to time by such Lender to the Borrower, the Borrower
shall immediately pay directly to such Lender additional amounts sufficient to
compensate such Lender for such reduction in rate of return.  A statement of such Lender as to any such
additional amount or amounts (including calculations thereof in reasonable
detail) shall, in the absence of manifest error, be conclusive and binding on
the Borrower.  In determining such
amount, such

 

39

 

Lender may use any method of averaging and attribution that it (in its
sole and absolute discretion) shall deem applicable.

 

SECTION 4.6.  Taxes.  All payments by the Borrower of principal
of, and interest on, the Loans and all other amounts payable hereunder shall be
made free and clear of and without deduction for any present or future income,
excise, stamp or franchise taxes and other taxes, fees, duties, withholdings or
other charges of any nature whatsoever imposed by any taxing authority, but
excluding franchise taxes (in lieu of net income) and taxes imposed on or
measured by any Lender’s net income or receipts (such nonexcluded items being
called “Taxes”).  In the event
that any withholding or deduction from any payment to be made by the Borrower
hereunder is required in respect of any Taxes pursuant to any applicable law,
rule or regulation, then the Borrower will

 

(a)           pay directly to the
relevant authority the full amount required to be so withheld or deducted;

 

(b)           promptly forward to the
Agent an official receipt or other documentation satisfactory to the Agent
evidencing such payment to such authority; and

 

(c)           pay to the Agent for
the account of the Lenders such additional amount or amounts as is necessary to
ensure that the net amount actually received by each Lender will equal the full
amount such Lender would have received had no such withholding or deduction
been required.

 

Moreover, if any Taxes are directly asserted against
the Agent or any Lender with respect to any payment received by the Agent or
such Lender hereunder, the Agent or such Lender may pay such Taxes and the
Borrower will promptly pay such additional amounts (including any penalties,
interest or expenses) as is necessary in order that the net amount received by
such person after the payment of such Taxes (including any Taxes on such
additional amount) shall equal the amount such person would have received had
not such Taxes been asserted.

 

If the Borrower fails to pay any Taxes when due to the
appropriate taxing authority or fails to remit to the Agent, for the account of
the respective Lenders, the required receipts or other required documentary
evidence, the Borrower shall indemnify the Lenders for any incremental Taxes,
interest or penalties that may become payable by any Lender as a result of any
such failure.  For purposes of this Section 4.6,
a distribution hereunder by the Agent or any Lender to or for the account of
any Lender shall be deemed a payment by the Borrower.

 

Upon the request of the Borrower or the Agent, each
Lender and Assignee Lender that is organized under the laws of a, jurisdiction
other than the United States shall, on or prior to the date hereof (in the case
of each Lender that is a party hereto on the date hereof) or on or prior to the
date of any assignment hereunder (in the case of an Assignee Lender) and
thereafter as reasonably requested from time to time by the Borrower or Agent,
execute and deliver to the Borrower and the Agent, one or more (as the Borrower
or the Agent may reasonably request) United States Internal Revenue Service
Forms W-8EC or Forms W-8BEN or such other forms or documents (or successor
forms or documents), appropriately completed, as may be applicable to

 

40

 

establish the extent, if any, to which a payment to such Lender is
exempt from, or entitled to a reduced rate of, withholding or deduction of
Taxes.

 

SECTION 4.7.  Payments,
Computations, etc.

 

(a)           Unless otherwise
expressly provided, all payments by the Borrower pursuant to this Agreement,
the Notes or any other Loan Document shall be made by the Borrower to the Agent
for the pro  rata account of the Lenders entitled to receive such
payment.

 

(b)           All such payments
required to be made to the Agent shall be made, without setoff, deduction or
counterclaim, by means of wire transfer to be initiated (i) in the case of
Loans denominated in Dollars, not later than 11:00 a.m. (New York City time)
and (ii) in the case of Loans denominated in a currency other than Dollars, not
later than the time reasonably specified by the Agent, in each case on the date
due, in same day or immediately available funds, in the applicable currency, to
such account as the Agent shall specify from time to time by notice to the
Borrower.  Funds for which the wire
transfer was initiated after the times specified in the preceding sentence
shall be deemed to have been received by the Agent on the next succeeding
Business Day.  The Agent shall promptly
remit in same day funds, in the applicable currency, to each Lender its share,
if any, of such payments received by the Agent for the account of such Lender.

 

(c)           Subject to the
calculation of interest provided in the definition of “Associated Costs”, all
interest and fees shall be computed on the basis of the actual number of days
(including the first day but excluding the last day) occurring during the
period for which such interest or fees is payable over a year comprised of 360
days (or, in the case of interest on Base Rate Loans, 365 days or, if
appropriate, 366 days).  whenever any
payment to be made shall otherwise be due on a day which is not a Business Day,
such payment shall (except as otherwise required by clause (c) of the
definition of the term “Interest Period”) be made on the next succeeding
Business Day and such extension of time shall be included in computing interest
in connection with such payment.

 

(d)           Each Lender will use
its best efforts to notify the Borrower of any event that will entitle such
Lender to compensation or reimbursement (including on a prospective basis)
pursuant to Article IV hereof (including pursuant to Sections
4.5 and 4.6), as promptly as practicable after it obtains knowledge
thereof, but the failure to give such notice shall not impair the right of such
Lender to receive compensation or reimbursement under this Section.

 

(e)           Each Lender shall
determine the applicability of, and the amount due under, Article IV
hereof (including Sections 4.5 and 4.6) consistent with the
manner in which it applies similar provisions and calculates similar amounts
payable to it by other borrowers having in their credit agreements provisions
comparable to those contained in Article IV.

 

SECTION 4.8.  Sharing
of Payments.  If any Lender shall
obtain any payment or other recovery (whether voluntary, involuntary, by
application of setoff or otherwise) on account of

 

41

 

any Loan, or participation in Swing Line Loans held by it, (other than
pursuant to the terms of Sections 4.3, 4.4 and 4.5) in
excess of its pro  rata share of payments then or therewith
obtained by all Lenders, such Lender shall purchase from the other Lenders such
participations in Loans made by them and/or such subparticipations in the
participations in Swing Line Loans held by them, as the case may be, as shall
be necessary to cause such purchasing Lender to share the excess payment or
other recovery ratably with each of them; provided,  however, that
if all or any portion of the excess payment or other recovery is thereafter
recovered from such purchasing Lender, the purchase shall be rescinded and each
Lender which has sold a participation to the purchasing Lender shall repay to
the purchasing Lender the purchase price to the ratable extent of such recovery
together with an amount equal to such selling Lender’s ratable share (according
to the proportion of

 

(a)           the amount of such
selling Lender’s required repayment to the purchasing Lender

 

to

 

(b)           the total amount so
recovered from the purchasing Lender) of any interest or other amount paid or
payable by the purchasing Lender in respect of the total amount so
recovered.  The Borrower agrees that any
Lender so purchasing a participation or subparticipation from another Lender
pursuant to this Section may, to the fullest extent permitted by law,
exercise all its rights of payment (including pursuant to Section 4.9)
with respect to such participation as fully as if such Lender were the direct
creditor of the Borrower in the amount of such participation or
subparticipation.  If under any
applicable bankruptcy, insolvency or other similar law, any Lender receives a
secured claim in lieu of a setoff to which this Section applies, such
Lender shall, to the extent practicable, exercise its rights in respect of such
secured claim in a manner consistent with the rights of the Lenders entitled
under this Section to share in the benefits of any recovery on such
secured claim.

 

SECTION 4.9.  Setoff.  Each Lender shall, upon the occurrence of
any Event of Default described in clauses (a) through (e) of Section 8.1.9
or, upon the occurrence of any other Event of Default, have the right to
appropriate and apply to the payment of the obligations owing to it (whether or
not then due) any and all balances, credits, deposits, accounts or moneys of
the Borrower then or thereafter maintained with such Lender or any Affiliate of
such Lender; provided,  however, that any such appropriation and
application shall be subject to the provisions of Section 4.8.  Each Lender agrees promptly to notify the
Borrower and the Agent after any such setoff and application made by such
Lender; provided,  however, that the failure to give such notice
shall not affect the validity of such setoff and application.  The rights of each Lender under this
Section are in addition to other rights and remedies (including other
rights of setoff under applicable law or otherwise) which such Lender may have.

 

SECTION 4.10. 
Use of Proceeds.  The
Borrower shall use the proceeds of the Loans to refinance existing indebtedness
under the Existing Credit Agreement, for general corporate purposes and for
commercial paper backup; without limiting the foregoing, no proceeds of any
Loan will be used to acquire any equity security of a Person as part of a
hostile takeover.

 

42

 

ARTICLE V

 

CONDITIONS
PRECEDENT

 

SECTION 5.1.  Conditions
Precedent to the Obligations of the Lenders.  The obligations of the Lenders under this Agreement shall be
subject to the prior or concurrent satisfaction of each of the conditions
precedent set forth in this Section 5.1.

 

SECTION 5.1.1. 
Resolutions, etc.  The
Agent shall have received from the Borrower a certificate, dated the same date
as this Agreement, of its Secretary or Assistant Secretary as to

 

(a)           resolutions of its
Board of Directors then in full force and effect authorizing the execution,
delivery and performance of this Agreement, the Notes and each other Loan
Document to be executed by it,

 

(b)           the incumbency and
signatures of those of its officers authorized to act with respect to this
Agreement, the Notes and each other Loan Document executed by it, upon which
certificate each Lender may conclusively rely until it shall have received a
further certificate of the Secretary of the Borrower canceling or amending such
prior certificate, and

 

(c)           true and correct copies
of the Organic Documents of the Borrower.

 

SECTION 5.1.2. 
Officer’s Certificate. 
The Agent shall have received a certificate, dated the date of this
Agreement, signed by an Authorized Officer of the Borrower certifying (a) that
on such date (both before and after giving effect to the making of any Loans
hereunder on such date) no Default or Event of Default has occurred and is
continuing, (b) each of the representations and warranties set forth in Article VI  of this Agreement is true and correct on and
as of such date and (c) that there has been no event or circumstance since
November 30, 2000 which has or could be reasonably expected to have a
Material Adverse Effect.

 

SECTION 5.1.3. 
Closing Fees, Expenses, etc. 
The Agent shall have received for its own account, or for the account of
each Lender, the Lead Arrangers and the other Agents, as the case may be, all
fees, costs and expenses due and payable pursuant to Sections 3.4 and 10.3,
if then invoiced.

 

SECTION 5.1.4. 
Delivery of Financial Information.  The Agent shall have received, with copies for each Lender,
audited consolidated balance sheets of the Borrower and its Subsidiaries as at
November 30, 2000 and the related statements of earnings and cash flow,
and unaudited balance sheets of the Borrower and its Subsidiaries as of the end
of the Fiscal Quarter ending February 28, 2001 and consolidated statements
of earnings and cash flow of the Borrower and its Subsidiaries for such Fiscal
Quarter, certified by an Authorized Officer of the Borrower.

 

SECTION 5.1.5. 
Delivery of Notes.  The
Agent shall have received (a) for the account of each Lender, its Revolving
Loan Note and its Competitive Bid Loan Note duly executed and delivered by the
Borrower with respect to such Lender’s Commitment and (b) for the account of
the Swing Line Lender, its Swing Line Note duly executed and delivered by the
Borrower with respect to the Swing Line Sublimit.

 

43

 

SECTION 5.1.6. 
Termination of the Existing Credit Agreement.  The Agent shall have received satisfactory
evidence that the Existing Credit Agreement has been terminated and all
Indebtedness, liabilities and obligations outstanding thereunder has been paid
in full.

 

SECTION 5.1.7. 
Opinion of Counsel.  The
Agent shall have received an opinion of Robert W. Skelton, General Counsel of
the Borrower or any Associate General Counsel of the Borrower, dated the date
of this Agreement and addressed to the Agent and all Lenders, substantially in
the form of Exhibit G hereto.

 

SECTION 5.2.  Conditions
Precedent to Borrowings.  The
obligation of each Lender to fund any Loan on the occasion of any Borrowing
(including the initial Borrowing) shall be subject to the satisfaction of each
of the conditions precedent set forth in this Section 5.2.

 

SECTION 5.2.1. 
Compliance with Warranties, No Default, etc.  Both before and after giving effect to any
Borrowing, the following statements shall be true and correct:

 

(a)           the representations and
warranties set forth in Article VI (other than the representations
and warranties set forth in Sections 6.6 and 6.7) shall be true
and correct with the same effect as if then made (unless stated to relate
solely to an earlier date, in which case such representations and warranties
shall be true and correct as of such earlier date); and

 

(b)           no Default or Event of
Default shall have then occurred and be continuing.

 

SECTION 5.2.2. 
Borrowing Request.  The
Agent shall have received a Revolving Loan Borrowing Request, a Competitive Bid
Loan Borrowing Request or a Swing Line Loan Borrowing Request (as the case may
be) for such Borrowing.  Each of the
delivery of a Borrowing Request and the acceptance by the Borrower of the
proceeds of such Borrowing shall constitute a representation and warranty by
the Borrower that on the date of such Borrowing (both immediately before and
after giving effect to such Borrowing and the application of the proceeds
thereof) the statements made in Section 5.2.1 are true and correct.

 

SECTION 5.2.3. 
Satisfactory Legal Form. 
All documents executed or submitted pursuant hereto by or on behalf of
the Borrower shall be reasonably satisfactory in form and substance to the
Agent and its counsel (and the execution of this Agreement by the Agent shall
be deemed to evidence such satisfaction); the Agent and its counsel shall have
received all non-confidential information, approvals, opinions, documents or
instruments as the Agent or its counsel may reasonably request.

 

ARTICLE VI

 

REPRESENTATIONS
AND WARRANTIES

 

In order to induce the Lenders and the Agents to enter
into this Agreement and to make Loans hereunder, the Borrower represents and
warrants as follows as of the Effective Date, and thereafter, as of the date of
each Borrowing to the extent set forth in clause (a) of Section 5.2.1.

 

44

 

SECTION 6.1.  Organization, etc.  The Borrower and each of its Subsidiaries is
a corporation, partnership or limited liability company duly organized or
formed, validly existing and in good standing under the laws of the State of
its incorporation or organization, is duly qualified to do business and is in
good standing in each jurisdiction where the nature of its business requires
such qualification, except where the failure to so qualify will not have a
Material Adverse Effect, and has full power and authority and holds all
requisite governmental licenses, permits and other approvals to enter into and
perform its Obligations under this Agreement, the Notes and each other Loan
Document to which it is a party and to own or hold under lease its property and
to conduct its business substantially as currently conducted by it.

 

SECTION 6.2.  Due Authorization, Non-Contravention etc.  The execution, delivery and performance by
the Borrower of this Agreement, the Notes and each other Loan Document executed
or to be executed by it, are within the Borrower’s corporate powers, have been
duly authorized by all necessary corporate action, and do not

 

(a)           contravene
the Borrower’s Organic Documents;

 

(b)           contravene
any contractual restriction, law or governmental regulation or court decree or
order binding on or affecting the Borrower and its Subsidiaries; or

 

(c)           result
in, or require the creation or imposition of, any Lien on any of the Borrower’s
properties.

 

SECTION 6.3.  Government Approval Regulation, etc.  No authorization or approval or other action
by, and no notice to or filing with, any governmental authority or regulatory
body or other Person is required for the due execution, delivery or performance
by the Borrower of this Agreement, the Notes or any other Loan Document.  Neither the Borrower nor any of its
Subsidiaries is an “investment company” within the meaning of the Investment
Company Act of 1940, as amended, or 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.

 

SECTION 6.4.  Validity, etc.  This Agreement constitutes, and the Notes
and each other Loan Document executed by the Borrower will, on the due
execution and delivery thereof, constitute, the legal, valid and binding
obligations of the Borrower enforceable in accordance with their respective
terms, subject to the effect of bankruptcy insolvency, reorganization,
moratorium or similar laws affecting the enforceability of creditors’ rights
generally and by general principles of equity.

 

SECTION 6.5.  Financial Information.  The consolidated balance sheets of the
Borrower and its Subsidiaries as at November 30, 2000, and the related
consolidated statements of earnings and cash flow of the Borrower and its
Subsidiaries, copies of which have been furnished to the Agent and each Lender,
have been prepared in accordance with GAAP consistently applied, and present
fairly in all material respects the consolidated financial condition of the
Borrower and its Subsidiaries as at the dates thereof and the results of their
operations for the periods then ended.

 

SECTION 6.6.  No Material Adverse Change.  Since the date of the financial statements
described in Section 6.5 (except to the extent the information
disclosed therein is modified or

 

45

 

superseded, as the case may be, by information in the Borrower’s
quarterly report on Form 10-Q for the quarter ended February 28, 2001)
there has been no material adverse change in the financial condition,
operations, assets, business or properties of the Borrower and its Subsidiaries
taken as a whole.

 

SECTION 6.7.  Litigation, Labor Controversies, etc.  There is no pending or, to the knowledge of
the Borrower, threatened litigation, action, proceeding, or labor controversy
affecting the Borrower or any of its Subsidiaries, or any of their respective
properties, businesses, assets or revenues, which will result in a Material
Adverse Effect or which purports to affect the legality, validity or
enforceability of this Agreement, the Notes or any other Loan Document, except
as disclosed in Item 6.7 (“Litigation”) of the Disclosure Schedule.

 

SECTION 6.8.  Subsidiaries.  The Borrower has no Subsidiaries, except
those Subsidiaries

 

(a)           which
are identified in Item 6.8 (“Existing Subsidiaries as of the Effective
Date”) of the Disclosure Schedule; or

 

(b)           which
are hereafter acquired or formed.

 

It being understood that
Subsidiaries may merge, consolidate, liquidate and sell assets as permitted
pursuant to Section 7.2.4.

 

SECTION 6.9.  Ownership of Properties.  The Borrower and each of its Subsidiaries
has good and marketable title to all of its tangible properties and assets,
real and personal, of any nature whatsoever, free and clear of all Liens,
charges or claims except as permitted pursuant to Section 7.2.3 or
Liens, charges or claims that will not have a Material Adverse Effect; and the
Borrower has duly registered in the U.S. all trademarks required for the
conduct of its business in the U.S., other than those as to which the lack of
protection, or failure to register, would not have a Material Adverse Effect.

 

SECTION 6.10.  Taxes.  The Borrower and each of its Subsidiaries has filed all federal
and all other material income tax returns and reports required by law to have
been filed by it and has paid all taxes and governmental charges thereby shown
to be owing, except any such taxes or charges which are being diligently contested
in good faith by appropriate proceedings and for which adequate reserves in
accordance with GAAP shall have been set aside on its books.

 

SECTION 6.11.  Pension and Welfare Plans.  During the twelve-consecutive-month period
ending immediately prior to the date of the execution and delivery of this
Agreement, no Pension Plan has been terminated, or has been subject to the
commencement of any termination, that could reasonably be expected to have a
Material Adverse Effect, and no contribution failure has occurred with respect
to any Pension Plan sufficient to give rise to a Lien under section 302(f)
of ERISA.  No condition exists or event
or transaction has occurred with respect to any Pension Plan which might result
in the incurrence by the Borrower or any member of the Controlled Group of any
liability, fine or penalty which is likely to have a Material Adverse
Effect.  Except for the post-retirement
benefits described in Item 6.11 (“Employee Benefit Plans”) of the
Disclosure Schedule, the Borrower has no contingent liability with respect to
post-retirement benefits provided by the Borrower and its Subsidiaries under a
Welfare Plan, other

 

46

 

than (i) liability for continuation coverage described in Part 6 of
Subtitle B of Title I of ERISA and (ii) liabilities which will not,
individually or in the aggregate, have a Material Adverse Effect.

 

SECTION 6.12.  Environmental Warranties.  Except as set forth in Item 6.12
(“Environmental Matters”) of the Disclosure Schedule:

 

(a)           all
facilities and property (including underlying groundwater) owned or leased by
the Borrower or any of its Subsidiaries have been, and continue to be, owned or
leased by the Borrower and its Subsidiaries in compliance with all Environmental
Laws, except for such non-compliance which, singly or in the aggregate, will
not have a Material Adverse Effect;

 

(b)           there
have been no past unresolved, and there are no pending or threatened (in
writing)

 

(i)            claims,
complaints, notices or requests for information received by the Borrower or any
of its Subsidiaries with respect to any alleged violation of any Environmental
Law, or

 

(ii)           complaints,
written notices or inquiries to the Borrower or any of its Subsidiaries
regarding potential liability under any Environmental Law,

 

which violation or potential liability singly or in
the aggregate will have a Material Adverse Effect;

 

(c)           there
have been no Releases of Hazardous Materials at, on or under any property now
or to the Borrower’s knowledge previously owned or leased by the Borrower or
any of its Subsidiaries that, singly or in the aggregate, have, or will have a
Material Adverse Effect;

 

(d)           the
Borrower and its Subsidiaries have been issued and are in compliance with all
permits, certificates, approvals, licenses and other authorizations relating to
environmental matters and necessary for their businesses, except for such
permits, approvals, licenses and other authorizations which, if not obtained by
the Borrower, or as to which the Borrower is not in compliance (in each case
singly or in the aggregate), will not have a Material Adverse Effect;

 

(e)           no
property now or, to the Borrower’s knowledge, previously owned or leased by the
Borrower or any of its Subsidiaries is listed or with the knowledge of the
Borrower, proposed for listing (with respect to owned property only) on (i) the
CERCLIS or on any similar state list of sites requiring investigation or
clean-up or (ii) the National Priorities List pursuant to CERCLA; other than
properties as to which any such listing will not result in a Material Adverse
Effect;

 

(f)            there
are no underground storage tanks, active or abandoned, including petroleum
storage tanks, on or under any property now or, to the Borrower’s knowledge,

 

47

 

previously
owned or leased by the Borrower or any of its Subsidiaries that, singly or in
the aggregate, have, or will have, a Material Adverse Effect;

 

(g)           to
the Borrower’s knowledge, neither Borrower nor any Subsidiary of the Borrower
has directly transported or directly arranged for the transportation of any
Hazardous Material to any location which is listed or, with the knowledge of
the Borrower, proposed for listing, on the National Priorities List pursuant to
CERCLA, on the CERCLIS or on any similar state list or which is the subject of
federal, state or local enforcement actions or other investigations which will
lead to claims against the Borrower or such Subsidiary thereof for any remedial
work, damage to natural resources or personal injury, including claims under
CERCLA, which will have a Material Adverse Effect; and

 

(h)           there
are no polychlorinated biphenyls or friable asbestos present at any property
owned or leased by the Borrower or any Subsidiary of the Borrower that, singly
or in the aggregate, have, or will have, a Material Adverse Effect.

 

SECTION 6.13.  Regulations U and X.  No proceeds of any Loans will be used for a
purpose which violates, or would be inconsistent with, F.R.S.  Board Regulation U or X.  The Borrower is not engaged in the business
of extending credit for the purpose of purchasing or carrying margin stock, and
not more than 25% of the consolidated assets of the Borrower and its
Subsidiaries consists of margin stock. 
Terms for which meanings are provided in F.R.S.  Board Regulation U or X or any regulations
substituted therefor, as from time to time in effect, are used in this
Section with such meanings.

 

SECTION 6.14.  Accuracy of Information.  Neither this Agreement nor any other
document, certificate or statement furnished to the Agent or any Lender by or
on behalf of the Borrower in connection herewith contains any untrue statement
of a material fact or omits to state a material fact necessary in order to make
the statements contained herein and therein not misleading, in light of the
circumstances under which they were made.

 

SECTION 6.15.  Compliance with Law; Absence of Default.  The Borrower and its Subsidiaries are in
compliance with all Applicable Laws the noncompliance with which would have a
Material Adverse Effect and with all of the material provisions of their
respective Organic Documents, and no event has occurred or has failed to occur
which has not been remedies or waived, the occurrence or non-occurrence of
which constitutes (i) a Default or Event of Default or (ii) a default by the
Borrower or one of its Subsidiaries under any other material indenture,
agreement or other instrument, or any judgment, decree, or order to which the
Borrower or such Subsidiary is a party or by which the Borrower or such
Subsidiary or any of their respective properties may be bound, which would have
a Material Adverse Effect.

 

48

 

ARTICLE VII

 

COVENANTS

 

SECTION 7.1.  Affirmative Covenants.  The Borrower agrees with the Agents and each
Lender that, until all Obligations have been paid and performed in full, the
Borrower will perform the obligations set forth in this Section 7.1.

 

SECTION 7.1.1.  Financial Information Reports, Notices,
etc.  The Borrower will furnish, or
will cause to be furnished, to each Lender and the Agent copies of the
following financial statements, reports, notices and information:

 

(a)           as
soon as available and in any event within 60 days after the end of each of the
first three Fiscal Quarters of each Fiscal Year of the Borrower, a consolidated
balance sheet of the Borrower and its Subsidiaries as of the end of such Fiscal
Quarter and consolidated statements of earnings and cash flow of the Borrower
and its Subsidiaries for such Fiscal Quarter and for the period commencing at
the end of the previous Fiscal Year and ending with the end of such Fiscal
Quarter, certified by an Authorized Officer of the Borrower, it being
understood and agreed that the delivery of the Borrower’s Form 10-Q (as filed
with the Securities and Exchange Commission) shall satisfy the requirements set
forth in this clause);

 

(b)           as
soon as available and in any event within 120 days after the end of each Fiscal
Year of the Borrower, a copy of the annual audit report for such Fiscal Year
for the Borrower and its Subsidiaries, including therein a consolidated balance
sheet of the Borrower and its Subsidiaries as of the end of such Fiscal Year
and consolidated statements of earnings and cash flow of the Borrower and its
Subsidiaries for such Fiscal Year, in each case certified (without any
Impermissible Qualification) in a manner acceptable to the Agent and the
Required Lenders by Ernst & Young or other independent public accountants
reasonably acceptable to the Agent and the Required Lenders (it being
understood and agreed that the delivery of the Borrower’s Form 10-K (as filed
with the Securities and Exchange Commission) shall satisfy such delivery
requirement in this clause), together with a certificate from an Authorized
Officer of the Borrower containing a computation in reasonable detail of, and
showing compliance with, each of the financial ratios and restrictions
contained in Sections 7.2.2, 7.2.3, 7.2.4 and 7.2.5
and to the effect that, in making the examination necessary for the signing of
such certificate, he has not become aware of any Default or Event of Default
that has occurred and is continuing, or, if he has become aware of such Default
or Event of Default, describing such Default or Event of Default and the steps,
if any, being taken to cure it;

 

(c)           as
soon as available and in any event within 60 days after the end of each Fiscal
Quarter, a Compliance Certificate, executed by the Treasurer or an Authorized
Officer of the Borrower, showing (in reasonable detail and with appropriate
calculations and computations in all respects satisfactory to the Agent)
compliance with the financial covenants set forth in Sections 7.2.2, 7.2.3,
7.2.4 and 7.2.5 and representing as to the absence of any
Default;

 

49

 

(d)           as
soon as possible and in any event within three Business Days upon any officer
or director of the Borrower becoming aware of the occurrence of each Default or
Event of Default, a statement of the Treasurer or the chief financial
Authorized Officer of the Borrower setting forth details of such Default or
Event of Default and the action which the Borrower has taken and proposes to
take with respect thereto;

 

(e)           as
soon as possible and in any event within five Business Days after (x) the
occurrence of any adverse development with respect to any litigation, action,
proceeding, or labor controversy described in Section 6.7 which
will result in or is likely to result in a Material Adverse Effect or (y) the
commencement of any labor controversy, litigation, action, proceeding of the
type described in Section 6.7, notice thereof and copies of all
documentation relating thereto;

 

(f)            promptly
after the sending or filing thereof, copies of all reports which the Borrower
sends to any of its security holders, and all reports and registration
statements (other than on Form S-8 or any successor form) which the Borrower or
any of its Subsidiaries files with the Securities and Exchange Commission or
any national securities exchange;

 

(g)           immediately
upon becoming aware of the taking of any specific actions by the Borrower or
any other Person to terminate any Pension Plan (other than a termination
pursuant to Section 4041(b) of ERISA which can be completed without the
Borrower or any Controlled Group member having to provide more than $3,000,000
in addition to the normal contribution required for the plan year in which
termination occurs to make such Pension Plan sufficient), or the failure to
make a required contribution to any Pension Plan if such failure is sufficient
to give rise to a Lien under section 302(f) of ERISA, or the taking of any
action with respect to a Pension Plan which would likely result in the
requirement that the Borrower furnish a bond or other security to the PBGC or
such Pension Plan, or the occurrence of any event with respect to any Pension
Plan which would likely result in the incurrence by the Borrower of any
liability, fine or penalty which will have a Material Adverse Effect, or any
increase in the contingent liability of the Borrower with respect to any
post-retirement Welfare Plan benefit if the increase in such contingent
liability will result in a Material Adverse Effect, notice thereof and copies
of all documentation relating thereto;

 

(h)           immediately
upon becoming aware of any change in Borrower’s Senior Debt Rating, a statement
describing such change, whether such change was made by S&P, Moody’s or
both and the effective date of such change; and

 

(i)            such
other non-confidential information respecting the condition or operations,
financial or otherwise, of the Borrower or any of its Subsidiaries as any
Lender through the Agent may from time to time reasonably request.

 

SECTION 7.1.2.  Compliance with Laws, etc.  The Borrower will, and will cause each of
its Subsidiaries to, comply in all respects with all Applicable Laws, except
where such non-compliance would not have a Material Adverse Effect, such
compliance to include (without limitation):

 

50

 

(a)           preserve,
renew and maintain in full force and effect its legal existence and good
standing under the Applicable Laws of the jurisdiction of its organization and
each jurisdiction where its conduct of business requires qualification or good
standing (except any Subsidiary may merge, consolidate or liquidate as
permitted pursuant to Section 7.2.4), and

 

(b)           the
payment, before the same become delinquent, of all taxes, assessments and
governmental charges imposed upon it or upon its property except to the extent
being diligently contested in good faith by appropriate proceedings and for
which adequate reserves in accordance with GAAP shall have been set aside on
its books.

 

SECTION 7.1.3.  Maintenance of Properties.  The Borrower will, and will cause each of
its Subsidiaries to, maintain, preserve, protect and keep its material
properties in good repair, working order and condition, and make necessary and
proper repairs, renewals and replacements so that its business carried on in
connection therewith may be properly conducted at all times unless the Borrower
determines in good faith that the continued maintenance of any of its
properties is no longer economically desirable.

 

SECTION 7.1.4.  Insurance.  The Borrower will, and will cause each of its Subsidiaries to,
maintain or cause to be maintained with responsible insurance companies
insurance with respect to its properties material to the business of the
Borrower and its Subsidiaries against such casualties and contingencies and of
such types and in such amounts as is customary in the case of similar
businesses and will, upon request of the Agent, furnish to each Lender at
reasonable intervals a certificate of an Authorized Officer of the Borrower
setting forth the nature and extent of all insurance maintained by the Borrower
and its Subsidiaries in accordance with this Section, provided, that the
Borrower and its Subsidiaries may self-insure to the extent customary for
similarly situated corporations engaged in the same or similar business.

 

SECTION 7.1.5.  Books and Records.  The Borrower will, and will cause each of
its Subsidiaries to, keep books and records which accurately reflect all of its
business affairs and material transactions and permit the Agent and each Lender
or any of their respective representatives, at reasonable times and intervals,
to visit all of its offices, to discuss its non-confidential financial matters
with its officers and independent public accountant and, upon the reasonable
request of the Agent or a Lender, to examine (and, at the expense of the
Lenders, photocopy extracts from) any of its non-confidential books or other
corporate records.

 

SECTION 7.1.6.  Environmental Covenant.  The Borrower will, and will cause each of
its Subsidiaries to,

 

(a)           use
and operate all of its facilities and properties in compliance with all
Environmental Laws except for such non-compliance which, singly or in the
aggregate, will not have a Material Adverse Effect, keep all necessary permits,
approvals, certificates, licenses and other authorizations relating to
environmental matters in effect and remain in compliance therewith, except
where the failure to keep such permits, approvals, certificates, licenses or
other authorizations, or any non-compliance with the provisions thereof will
not have a Material Adverse Effect, and handle all Hazardous

 

51

 

Materials
in compliance with all applicable Environmental Laws, except for any
non-compliance that will not have a Material Adverse Effect;

 

(b)           immediately
notify the Agent and provide copies upon receipt of all written inquiries from
any local, state or federal governmental agency, claims, complaints or notices
relating to the condition of its facilities and properties or compliance with
Environmental Laws which will have a Material Adverse Effect, and shall
promptly cure and have dismissed with prejudice or contest in good faith any
actions and proceedings relating to material compliance with Environmental Laws
the result of which, if not contested by the Borrower, would have a Material
Adverse Effect; and

 

(c)           provide
such non-confidential information and certifications which the Agent may
reasonably request from time to time to evidence compliance with this Section 7.1.6.

 

SECTION 7.2.  Negative Covenants.  The Borrower agrees with the Agents and each
Lender that, until all Obligations have been paid and performed in full, the
Borrower will perform the obligations set forth in this Section 7.2.

 

SECTION 7.2.1.  Transactions with Affiliates.  The Borrower will not, and will not permit
any of its Subsidiaries to, enter into, or cause, suffer or permit to exist any
material arrangement or contract with any of its other Affiliates (other than
other Subsidiaries) unless such arrangement or contract is fair and equitable
to the Borrower or such Subsidiary based upon the good faith judgment of the
Borrower’s Board of Directors.

 

SECTION 7.2.2.  Indebtedness.  The Borrower will not permit any of its
Subsidiaries to create, incur, assume or suffer to exist or otherwise become or
be liable in respect of any Indebtedness if, after giving effect to the
incurrence of any such Indebtedness, the aggregate outstanding amount of
Indebtedness of all Subsidiaries would exceed 25% of Consolidated Net Tangible
Assets.

 

SECTION 7.2.3.  Liens.  The Borrower will not, and will not permit any of its
Subsidiaries to, create, incur, assume or suffer to exist any Lien upon any of
its property, revenues or assets, whether now owned or hereafter acquired, except:

 

(a)           Liens
securing payment of Indebtedness permitted under Section 7.2.2;

 

(b)           Liens
granted prior to the Effective Date which are identified in Item 7.2.3
(“Existing Liens”) of the Disclosure Schedule;

 

(c)           any
Lien existing on the assets of any Person at the time it becomes a Subsidiary
(and not created, assumed or incurred by such Person in contemplation of such
event);

 

(d)           Liens
for taxes, assessments or other governmental charges or levies not at the time
delinquent or thereafter payable without penalty or being diligently contested
in good faith by appropriate proceedings and for which adequate reserves in
accordance with GAAP shall have been set aside on its books;

 

52

 

(e)           Liens
of carriers, warehousemen, mechanics, materialmen and landlords incurred in the
ordinary course of business for sums not overdue or being diligently contested
in good faith by appropriate proceedings and for which adequate reserves in
accordance with GAAP shall have been set aside on its books;

 

(f)            Liens
incurred in the ordinary course of business in connection with workmen’s
compensation, unemployment insurance or other forms of governmental insurance
or benefits, or to secure performance of tenders, statutory obligations, leases
and contracts (other than for borrowed money) entered into in the ordinary
course of business or to secure obligations on surety or appeal bonds;

 

(g)           judgment
Liens in existence less than 30 days after the entry thereof or with respect to
which execution has been stayed or the payment of which is covered in full
(subject to a customary deductible) by insurance maintained with responsible
insurance companies;

 

(h)           other
Liens incidental to the conduct of the Borrower’s or any of its Subsidiaries’
businesses (including without limitation, Liens on goods securing trade letters
of credit issued in respect of the importation of goods in the ordinary course
of business, or the ownership of any of the Borrower’s or any Subsidiary’s
property and assets which were not incurred in connection with the borrowing of
money or the obtaining of advances or credit and which do not in the aggregate
materially detract from the value of the Borrower’s or any of its Subsidiaries’
property or assets or materially impair the use thereof in the operation of
Borrower’s or any of its Subsidiaries’ businesses);

 

(i)            Liens
in favor of the Borrower on assets of its Subsidiaries, and Liens in favor of
Subsidiaries of the Borrower on assets of the Borrower;

 

(j)            Liens
securing industrial development or pollution control bonds so long as such
Liens attach solely to the property acquired, constructed or improved with the
proceeds of such bonds; and

 

(k)           any
Lien not otherwise permitted by this Section 7.2.3 securing
Indebtedness, provided  that, immediately after giving effect
thereto (and to the incurrence of such Indebtedness secured thereby), the sum
of (without duplication and excluding any Indebtedness payable to the Borrower
or a Subsidiary) (i) the aggregate outstanding amount of Indebtedness of the
Borrower and its Subsidiaries secured by all Liens described in clauses (b),
(c) and (k) of this Section 7.2.3 (excluding any such
Liens described in clauses (d) through (j) of this Section 7.2.3)
and (ii) the Attributable Value of all Sale-Leaseback Transactions entered into
by the Borrower and its Subsidiaries in the aggregate does not exceed 15% of
Consolidated Net Tangible Assets.

 

SECTION 7.2.4.  Mergers, Asset Dispositions, etc.  The Borrower will not, nor will it permit
any of its Subsidiaries to, liquidate, dissolve or enter into any
consolidation, merger, joint venture or any other combination or sell, lease,
assign, transfer or otherwise dispose of any assets

 

53

 

or stock, whether
now owned or hereafter acquired, in a single transaction or in a series of
transactions other than:

 

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

 

(b)           the
merger or consolidation of any Subsidiary with or into the Borrower or a
wholly-owned Subsidiary;

 

(c)           the
merger or consolidation of any other Person with or into the Borrower or any
Subsidiary, so long as, after giving effect thereto, (i) the Borrower or its
Subsidiary, as the case may be, is the surviving entity and (ii) no Default or
Event of Default would exist;

 

(d)           sales
of assets or stock by the Borrower or a Subsidiary to a wholly-owned Subsidiary
or the Borrower; and

 

(e)           (i)
sales of assets or stock to any other Person or (ii) liquidations of
Subsidiaries (other than a Principal Subsidiary) if, after giving effect
thereto, the aggregate book value of such assets or stock disposed of or
liquidated does not, during the most recent period of 12 consecutive months,
exceed 20% of Consolidated Net Tangible Assets as at the end of the Borrower’s
immediately preceding Fiscal Year; and

 

(f)            joint
ventures between Subsidiaries, between one or more Subsidiaries and the
Borrower, between the Borrower and other Persons and between Subsidiaries and
other Persons.

 

SECTION 7.2.5.  EBIT to Interest Expense Ratio.  The Borrower will not permit the ratio of
EBIT to Interest Expense to be less than 2.5:1.00.  For purposes of calculating such ratio, the items included
therein shall be measured on a consolidated basis for the Borrower and its
Subsidiaries for the four full Fiscal Quarters immediately preceding the date
of calculation.

 

ARTICLE VIII

 

EVENTS OF DEFAULT

 

SECTION 8.1.  Listing of Events of Default.  Each of the following events or occurrences
described in this Section 8.1 shall constitute an “Event of
Default”.

 

SECTION 8.1.1.  Non-Payment of Obligations.  The Borrower shall default in the payment
when due of any principal of any Loan, or the Borrower shall default (and such
default shall continue unremedied for a period of three Business Days) in the
payment when due of any interest on any Loan, or the Borrower shall default
after notice (including, without limitation, notice delivered by way of
submission of a detailed invoice) (and such default shall continue unremedied
for a period of five days) in the payment when due of any fee described in Section 3.4
or of any other Obligation, including, without limitation, fees described in
the Transaction Fee Letter.

 

54

 

SECTION 8.1.2.  Breach of Warranty.  Any representation or warranty of the
Borrower made or deemed to be made hereunder or in any other Loan Document or
any other writing or certificate furnished by or on behalf of the Borrower to
the Agent or any Lender for the purposes of or in connection with this
Agreement or any such other Loan Document (including any certificates delivered
pursuant to Article V) is or shall be incorrect when made in any
material respect.

 

SECTION 8.1.3.  Non-Performance of Certain Covenants and
Obligations.  The Borrower shall
default in the due performance and observance of any of its obligations under clause
(a) of Section 7.1.2 (with respect to the maintenance and
preservation of the Borrower’s corporate existence) or under Section 7.1.6,
or the Borrower shall default in the due performance and observance of its
obligations under Section 7.2, and such default (if capable of
being remedied within such period) shall not be remedied within five Business
Days after any officer of the Borrower obtains actual knowledge thereof.

 

SECTION 8.1.4.  Non-Performance of Other Covenants and
Obligations.  The Borrower shall
default in the due performance and observance of any other agreement contained
herein or in any other Loan Document, and such default shall continue
unremedied for a period of 30 days after notice thereof shall have been given
to the Borrower by the Agent or any Lender.

 

SECTION 8.1.5.  Default on Other Indebtedness.  A default shall occur in the payment when
due (subject to any applicable grace period), whether by acceleration or otherwise,
of any Indebtedness (other than Indebtedness described in Section 8.1.1)
of the Borrower or any of its Subsidiaries having a principal amount,
individually or in the aggregate, in excess of $15,000,000, or a default shall
occur in the performance or observance of any obligation or condition with
respect to such Indebtedness (whether or not waived) if the effect of such
default is to accelerate the maturity of any such Indebtedness or such default
(whether or not waived) shall continue unremedied for any applicable period of
time sufficient to permit the holder or holders of such Indebtedness, or any
trustee or agent for such holders, to cause such Indebtedness to become due and
payable prior to its expressed maturity.

 

SECTION 8.1.6.  Judgments.  Any judgment or order for the payment of money in excess of
$15,000,000 shall be rendered against the Borrower or any of its Subsidiaries
and either

 

(a)           enforcement
proceedings shall have been commenced by any creditor upon such judgment or
order; or

 

(b)           there
shall be any period of 30 consecutive days during which a stay of enforcement
of such judgment or order, by reason of a pending appeal or otherwise, shall
not be in effect.

 

SECTION 8.1.7.  Pension Plans.  Any of the following events shall occur with
respect to any Pension Plan

 

(a)           the
institution of any steps by the Borrower, any member of its Controlled Group or
any other Person to terminate a Pension Plan if, as a result of such
termination, the Borrower or any such member could reasonably be required to
make a contribution to

 

55

 

such
Pension Plan, or could reasonably expect to incur a liability or obligation to
such Pension Plan, in excess of $5,000,000; or

 

(b)           a
contribution failure occurs with respect to any Pension Plan sufficient to give
rise to a Lien under Section 302(f) of ERISA which is not cured within 20
days from the date such contribution was due.

 

SECTION 8.1.8.  Control of the Borrower.  Any Change in Control shall occur.

 

SECTION 8.1.9.  Bankruptcy, Insolvency, etc.  The Borrower or any of its Subsidiaries that
are Principal Subsidiaries shall

 

(a)           become
insolvent or generally fail to pay, or admit in writing its inability to pay,
debts as they become due;

 

(b)           apply
for, consent to, or acquiesce in, the appointment of a trustee, receiver,
sequestrator or other custodian for the Borrower or any of such Subsidiaries or
a substantial part of any property of any thereof, or make a general assignment
for the benefit of creditors;

 

(c)           in
the absence of such application, consent or acquiescence, permit or suffer to
exist the appointment of a trustee, receiver, sequestrator or other custodian
for the Borrower or any of such Subsidiaries or for a substantial part of the
property of any thereof, and such trustee, receiver, sequestrator or other
custodian shall not be discharged within 60 days, provided that the Borrower
and each such Subsidiary hereby expressly authorizes the Agent and each Lender
to appear in any court conducting any relevant proceeding during such 60-day
period to preserve, protect and defend their rights under the Loan Documents;

 

(d)           permit
or suffer to exist the commencement of any bankruptcy, reorganization, debt
arrangement or other case or proceeding under any bankruptcy or insolvency law,
or any dissolution, winding up or liquidation proceeding, in respect of the
Borrower or any of such Subsidiaries, and, if any such case or proceeding is
not commenced by the Borrower or such Subsidiary, such case or proceeding shall
be consented to or acquiesced in by the Borrower or such Subsidiary or shall
result in the entry of an order for relief or shall remain for 60 days
undismissed, provided that the Borrower and each such Subsidiary hereby
expressly authorizes the Agent and each Lender to appear in any court
conducting any such case or proceeding during such 60-day period to preserve,
protect and defend their rights under the Loan Documents; or

 

(e)           take
any corporate action authorizing, or in furtherance of, any of the foregoing.

 

SECTION 8.2.  Action if Bankruptcy.  If any Event of Default described in clauses
(a) through (e) of Section 8.1.9 shall occur, the
Commitments (if not theretofore terminated) shall automatically terminate and
the outstanding principal amount of all outstanding Loans and all other
Obligations shall automatically be and become immediately due and payable,
without notice or demand.

 

56

 

SECTION 8.3.  Action if Other Event of Default.  If any Event of Default (other than any
Event of Default described in clauses (a) through (e) of Section 8.1.9)
shall occur for any reason, whether voluntary or involuntary, and be
continuing, the Agent, upon the direction of the Required Lenders, shall by
notice to the Borrower declare all or any portion of the outstanding principal
amount of the Loans and other Obligations to be due and payable and/or the
Commitments (if not theretofore terminated) to be terminated, whereupon the
full unpaid amount of such Loans and other Obligations which shall be so
declared due and payable shall be and become immediately due and payable,
without further notice, demand or presentment and/or, as the case may be, the
Commitments shall terminate.

 

ARTICLE IX

 

THE AGENT

 

SECTION 9.1.  Appointment; Powers and Immunities.  Each Lender hereby irrevocably appoints and
authorizes the Agent to act as its Agent hereunder and under the other Loan
Documents with such powers as are specifically delegated to the Agent by the
terms hereof and thereof, together with such other powers as are reasonably
incidental thereto.  The Agent:  (a) shall have no duties or
responsibilities except as expressly set forth in this Agreement and the other
Loan Documents, and shall not by reason of this Agreement or any other Loan Document
be a trustee for any Lender; (b) makes no warranty or representation to
any Lender and shall not be responsible to the Lenders for any recitals,
statements, representations or warranties contained in this Agreement or any
other Loan Document, or in any certificate or other document referred to or
provided for in, or received by any Lender under, this Agreement or any other
Loan Document, or for the validity, effectiveness, genuineness, enforceability
or sufficiency of this Agreement or any other Loan Document or any other
document referred to or provided for herein or therein or for any failure by
the Borrower to perform any of its obligations hereunder or thereunder;
(c) shall not be required to initiate or conduct any litigation or
collection proceedings hereunder or under any other Loan Document except to the
extent requested by the Required Lenders, and then only on terms and conditions
satisfactory to the Agent, and (d) shall not be responsible for any action
taken or omitted to be taken by it hereunder or under any other Loan Document
or any other document or instrument referred to or provided for herein or
therein or in connection herewith or therewith, except for its own gross
negligence or willful misconduct.  The
Agent may employ agents and attorneys-in-fact and shall not be responsible for
the negligence or misconduct of any such agents or attorneys-in-fact selected
by it with reasonable care.  The
provisions of this Article IX are solely for the benefit of the
Agent and the Lenders, and the Borrower shall not have any rights as a third
party beneficiary of any of the provisions hereof.  In performing its functions and duties under this Agreement and
under the other Loan Documents, the Agent shall act solely as Agent of the
Lenders and does not assume and shall not be deemed to have assumed any
obligation towards or relationship of agency or trust with or for the
Borrower.  The duties of the Agent shall
be ministerial and administrative in nature, and the Agent shall not have by
reason of this Agreement or any other Loan Document a fiduciary relationship in
respect of any Lender.

 

SECTION 9.2.  Reliance by Agent.  The Agent shall be entitled to rely upon any
certification, notice or other communication (including any thereof by
telephone, telecopier, telegram or cable) believed by it to be genuine and
correct and to have been signed or sent by or

 

57

 

on behalf of the
proper Person or Persons, and upon advice and statements of legal counsel,
independent accountants or other experts selected by the Agent.  As to any matters not expressly provided for
by this Agreement or any other Loan Document, the Agent shall in all cases be
fully protected in acting, or in refraining from acting, hereunder and thereunder
in accordance with instructions signed by the Required Lenders, and such
instructions of the Required Lenders in any action taken or failure to act
pursuant thereto shall be binding on all of the Lenders.

 

SECTION 9.3.  Defaults.  The Agent shall not be deemed to have knowledge of the occurrence
of a Default or an Event of Default (other than the nonpayment of principal of
or interest on the Loans) unless the Agent has received notice from a Lender or
the Borrower specifying such Default or Event of Default and stating that such
notice is a “Notice of Default”.  In the
event that the Agent receives such a notice of the occurrence of a Default or
an Event of Default, the Agent shall give prompt notice thereof to the
Lenders.  The Agent shall (subject to Section 10.1)
take such action hereunder with respect to such Default or Event of Default as
shall be directed by the Required Lenders, provided that, unless and
until the Agent shall have received such directions, the 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 interests of the Lenders.

 

SECTION 9.4.  Rights of Agent and its Affiliates as a
Lender.  With respect to its
Commitment and the Loans made by it and any of its Affiliates, Wachovia, N.A.
(and any successor acting as Agent hereunder) in its capacity as a Lender
hereunder and any Affiliate of Wachovia, N.A. 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 the Agent, and the
term “Lender” or “Lenders” shall, unless the context otherwise indicates,
include Wachovia, N.A. in its individual capacity and any Affiliate of the
Agent in its individual capacity. 
Wachovia, N.A. (and any successor acting as Agent hereunder) and any
Affiliate thereof may (without having to account therefor to any Lender) accept
deposits from, lend money to and generally engage in any kind of banking, trust
or other business with the Borrower (and any of the Borrower’s Affiliates) as
if it were not acting as the Agent, and Wachovia, N.A. and any Affiliate
thereof may accept fees and other consideration from the Borrower or any Subsidiary
or Affiliate thereof for services in connection with this Agreement or any
other Loan Document or otherwise without having to account for the same to the
Lenders.

 

SECTION 9.5.  Indemnification.  Each Lender severally agrees to indemnify
the Agent, to the extent the Agent shall not have been reimbursed by the
Borrower, ratably in accordance with its Commitment, for any and all
liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses (including, without limitation, counsel fees and
disbursements) or disbursements of any kind and nature whatsoever which may be
imposed on, incurred by or asserted against the Agent in any way relating to or
arising out of this Agreement or any other Loan Document or any other documents
contemplated by or referred to herein or therein or the transactions
contemplated hereby or thereby (including, without limitation, the costs and
expenses that the Borrower is obligated to pay under Section 10.3
or any amount the Borrower is obligated to pay under Section 10.4,
but excluding the normal administrative costs and expenses incident to the
performance of its agency duties hereunder) or the enforcement of any of the
terms hereof or thereof or any such other documents; provided that no
Lender shall be liable for any of the foregoing to the extent they arise from
the gross negligence or willful misconduct of

 

58

 

the Agent.  If any indemnity furnished to the Agent for
any purpose shall, in the opinion of the Agent, be insufficient or become
impaired, the Agent may call for additional indemnity and cease, or not
commence, to do the acts indemnified against until such additional indemnity is
furnished.

 

SECTION 9.6.  Consequential Damages.  THE AGENT SHALL NOT BE RESPONSIBLE OR LIABLE
TO ANY LENDER, THE BORROWER OR ANY OTHER PERSON OR ENTITY FOR ANY PUNITIVE,
EXEMPLARY OR CONSEQUENTIAL DAMAGES WHICH MAY BE ALLEGED AS A RESULT OF
THIS AGREEMENT, THE OTHER LOAN DOCUMENTS OR ANY OF THE TRANSACTIONS CONTEMPLATED
HEREBY OR THEREBY.

 

SECTION 9.7.  Registered Holder of Loan Treated as
Owner.  The Agent may deem and treat
each Person in whose name a Loan is registered as the owner thereof for all
purposes hereof unless and until a written notice of the assignment or transfer
thereof shall have been filed with the Agent and the provisions of Section 10.11.1
have been satisfied.  Any requests,
authority or consent of any Person who at the time of making such request or
giving such authority or consent is the holder of any Note shall be conclusive
and binding on any subsequent holder, transferee or assignee of that Note or of
any Note or Notes issued in exchange therefor or replacement thereof.

 

SECTION 9.8.  Nonreliance on Agent and Other Lenders.  Each Lender agrees that it has,
independently and without reliance on the Agent or any other Lender, and based
on such documents and information as it has deemed appropriate, made its own
credit analysis of the Borrower and decision to enter into this Agreement and that
it will, independently and without reliance upon the Agent or any other Lender,
and based on such documents and information as it shall deem appropriate at the
time, continue to make its own analysis and decisions in taking or not taking
action under this Agreement or any of the other Loan Documents.  The Agent shall not be required to keep
itself (or any Lender) informed as to the performance or observance by the
Borrower of this Agreement or any of the other Loan Documents or any other
document referred to or provided for herein or therein or to inspect the
properties or books of the Borrower or any other Person.  Except for notices, reports and other
documents and information expressly required to be furnished to the Lenders by
the Agent hereunder or under the other Loan Documents, the Agent shall not have
any duty or responsibility to provide any Lender with any credit or other
information concerning the affairs, financial condition or business of the
Borrower or any other Person (or any of their Affiliates) which may come into
the possession of the Agent or any of its Affiliates.

 

SECTION 9.9.  Failure to Act.  Except for action expressly required of the
Agent hereunder or under the other Loan Documents, the Agent shall in all cases
be fully justified in failing or refusing to act hereunder and thereunder
unless it shall receive further assurances to its satisfaction by the Lenders
of their indemnification obligations under Section 9.5 against any
and all liability and expense which may be incurred by the Agent by reason of
taking, continuing to take, or failing to take any such action.

 

SECTION 9.10.  Successor Agent.  The Agent may resign at any time by giving
notice thereof to the Lenders and the Borrower.  Upon any such resignation, the Required Lenders shall

 

59

 

have the right to
appoint a successor Agent.  If no
successor Agent shall have been so appointed by the Required Lenders and shall
have accepted such appointment within 30 days after the retiring Agent’s notice
of resignation, then the retiring Agent may, on behalf of the Lenders, appoint
a successor Agent.  Any successor Agent
shall be a bank or other financial institution which has a combined capital and
surplus of at least $500,000,000.  Upon
the acceptance of any appointment as Agent hereunder by a successor Agent, such
successor Agent shall thereupon succeed to and become vested with all the
rights, powers, privileges and duties of the retiring Agent, and the retiring
Agent shall be discharged from its duties and obligations hereunder.  After any retiring Agent’s resignation
hereunder as Agent, the provisions of this Article IX shall
continue in effect for its benefit in respect of any actions taken or omitted
to be taken by it while it was acting as the Agent hereunder.

 

SECTION 9.11.  Other Agents.  Bank of America, N.A. is hereby appointed
Documentation Agent of the Lenders hereunder and under each Loan Document.  SunTrust Bank is hereby appointed
Syndication Agent of the Lenders hereunder and under each Loan Document.  Bank of America, N.A. shall not have any
duties, responsibilities or liabilities in its capacity as Documentation
Agent.  SunTrust Bank shall not have any
duties, responsibilities or liabilities in its capacity as Syndication Agent.

 

ARTICLE X

 

MISCELLANEOUS
PROVISIONS

 

SECTION 10.1.  Waivers, Amendments, etc.  The provisions of this Agreement and of each
other Loan Document may from time to time be amended, modified or waived, if
such amendment, modification or waiver is in writing and consented to by the
Borrower and the Required Lenders; provided, however, that no
such amendment, modification or waiver which would:

 

(a)           modify
any requirement hereunder that any particular action be taken by all the
Lenders or by the Required Lenders shall be effective unless consented to by
each Lender;

 

(b)           modify
this Section 10.1, change the definition of “Required Lenders”,
increase the Percentage or Commitment of any Lender, reduce any fees described
in Article III, or extend the Maturity Date shall be made without
the consent of each Lender and each holder of a Note;

 

(c)           extend
the due date for, or reduce the amount of, any scheduled repayment of principal
of or payment of interest on any Loan or fees owed hereunder (or reduce the
principal amount of or rate of interest on any Loan or the fees owed hereunder)
shall be made without the consent of the holder of that Note evidencing such
Loan or owed such fees;

 

(d)           affect
the rights or duties of the Swing Line Lender under this Agreement shall be
made without consent of the Swing Line Lender; or

 

60

 

(e)           affect
adversely the interests, rights or obligations of the Agent qua the
Agent shall be made without consent of the Agent.

 

No failure or delay on
the part of the Agent, any Lender or the holder of any Note in exercising any
power or right under this Agreement or any other Loan Document shall operate as
a waiver thereof, nor shall any single or partial exercise of any such power or
right preclude any other or further exercise thereof or the exercise of any
other power or right.  No notice to or
demand on the Borrower in any case shall entitle it to any notice or demand in
similar or other circumstances.  No
waiver or approval by the Agent, any Lender or the holder of any Note under
this Agreement or any other Loan Document shall, except as may be otherwise
stated in such waiver or approval, be applicable to subsequent
transactions.  No waiver or approval
hereunder shall require any similar or dissimilar waiver or approval thereafter
to be granted hereunder.

 

SECTION 10.2.  Notices.  All notices and other communications provided to any party hereto
under this Agreement or any other Loan Document shall be in writing or by
facsimile and addressed, delivered or transmitted to such party at its address
or facsimile number set forth below its signature hereto or set forth in the
Lender Assignment Agreement or at such other address or facsimile number as may
be designated by such party in a notice to the other parties.  Any notice, if mailed and properly addressed
with postage prepaid or if properly addressed and sent by pre-paid courier
service, shall be deemed given when received; any notice, if transmitted by facsimile,
shall be deemed given when transmitted.

 

SECTION 10.3.  Payment of Costs and Expenses.  The Borrower agrees to pay on demand all
reasonable expenses of the Agents and the Lead Arrangers (including the
reasonable fees, internal charges and out-of-pocket expenses of counsel to the
Agents and the Lead Arrangers, which attorneys may be employees of the Agents
or Lead Arrangers, and of local counsel, if any, who may be retained by counsel
to the Agents and the Lead Arrangers) in connection with

 

(a)           the
negotiation, preparation, syndication, due diligence, execution and delivery of
this Agreement and of each other Loan Document, including schedules and
exhibits, and any amendments, waivers, consents, supplements or other
modifications to this Agreement or any other Loan Document as may from time to
time hereafter be required, whether or not the transactions contemplated hereby
are consummated, and

 

(b)           the
preparation and review of the form of any document or instrument relevant to
this Agreement or any other Loan Document;

 

provided,
however, that the Borrower shall not be obligated to pay for expenses
incurred by the Agent or a Lender in connection with the assignment of Loans to
an Assignee Lender pursuant to Section 10.11.1 or the sale of Loans
to a Participant pursuant to Section 10.11.2, and the Borrower
shall only be obligated to pay to the Agent an amount equal to $100 (unless
otherwise agreed to by the Agent), multiplied by the then existing number of
Lenders, in respect of each Competitive Bid Loan Request submitted by the
Borrower (payable on the date of submission of such request).

 

61

 

The Borrower further agrees to pay, and to save the
Agents and the Lenders harmless from all liability for, any stamp or other
taxes which may be payable in connection with the execution or delivery of this
Agreement, the borrowings hereunder, or the issuance of the Notes or any other
Loan Documents.  The Borrower also
agrees to reimburse the Agents and each Lender upon demand for all reasonable
out-of-pocket expenses (including attorneys’ fees and legal expenses, and the
allocated costs of staff counsel) incurred by the Agents or such Lender in
connection with (x) the negotiation of any restructuring or “work-out”, whether
or not consummated, of any Obligations and (y) the enforcement of any
Obligations.

 

SECTION 10.4.  Indemnification.  In consideration of the execution and
delivery of this Agreement by each Lender and the extension of Commitments, the
Borrower hereby indemnifies, exonerates and holds the Agents, the Lead
Arrangers and each Lender and each of their respective officers, directors,
employees and agents (collectively, the “Indemnified Parties”) free and
harmless from and against any and all actions, causes of action, suits, losses,
costs, liabilities and damages, and expenses incurred in connection therewith
(irrespective of whether any such Indemnified Party is a party to the action
for which indemnification hereunder is sought), including reasonable attorneys’
fees and disbursements (collectively, the “Indemnified Liabilities”),
incurred by the Indemnified Parties or any of them as a result of, or arising
out of, or relating to

 

(a)           any
transaction financed or to be financed in whole or in part, directly or
indirectly, with the proceeds of any Loan;

 

(b)           the
entering into and performance of this Agreement and any other Loan Document by
any of the Indemnified Parties;

 

(c)           any
investigation, litigation or proceeding related to any acquisition or proposed
acquisition by the Borrower or any of its Subsidiaries of all or any portion of
the stock or assets of any Person, whether or not the Agents, the Lead
Arrangers or such Lender is party thereto;

 

(d)           any
investigation, litigation or proceeding related to any environmental cleanup,
audit, compliance or other matter relating to the protection of the environment
or the Release by the Borrower or any of its Subsidiaries of any Hazardous
Material; or

 

(e)           the
presence on or under, or the escape, seepage, leakage, spillage, discharge,
emission, discharging or releases from, any real property owned or operated by
the Borrower or any Subsidiary thereof of any Hazardous Material (including any
losses, liabilities, damages, injuries, costs, expenses or claims asserted or
arising under any Environmental Law), regardless of whether caused by, or
within the control of, the Borrower or such Subsidiary,

 

except for any such
Indemnified Liabilities arising by reason of the relevant Indemnified Party’s
gross negligence or willful misconduct. 
If and to the extent that the foregoing undertaking may be unenforceable
for any reason, the Borrower hereby agrees to make the maximum contribution to
the payment and satisfaction of each of the Indemnified Liabilities which is
permissible under applicable law.

 

62

 

SECTION 10.5.  Survival.  The obligations of the Borrower under Sections 4.3, 4.4,
4.5, 4.6, 10.3 and 10.4, and the obligations of the
Lenders under Section 9.1, shall in each case survive any
termination of this Agreement and the payment in full of all Obligations and
the termination of all Commitments.  The
representations and warranties made by the Borrower in this Agreement and in
each other Loan Document shall survive the execution and delivery of this
Agreement and each such other Loan Document.

 

SECTION 10.6.  Severability.  Any provision of this Agreement or any other
Loan Document which is prohibited or unenforceable in any jurisdiction shall,
as to such provision and such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining
provisions of this Agreement or such Loan Document or affecting the validity or
enforceability of such provision in any other jurisdiction.

 

SECTION 10.7.  Headings.  The various headings of this Agreement and of each other Loan
Document are inserted for convenience only and shall not affect the meaning or
interpretation of this Agreement or such other Loan Document or any provisions
hereof or thereof.

 

SECTION 10.8.  Execution in Counterparts, Effectiveness,
etc.  This Agreement may be executed
by the parties hereto in several counterparts, each of which shall be executed
by the Borrower and the Agent and shall be deemed to be an original and all of
which shall constitute together but one and the same Agreement.  This Agreement shall become effective when
counterparts hereof executed on behalf of the Borrower and each Lender (or
notice thereof satisfactory to the Agent) shall have been received by the Agent
and notice thereof shall have been given by the Agent to the Borrower and each
Lender.

 

SECTION 10.9.  Governing Law; Entire Agreement.  THIS AGREEMENT, THE NOTES AND EACH OTHER LOAN DOCUMENT
SHALL EACH BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL
LAWS OF THE STATE OF NEW YORK. 
This Agreement, the Notes and the other Loan Documents constitute the
entire understanding among the parties hereto with respect to the subject
matter hereof and supersede any prior agreements, written or oral, with respect
thereto.

 

SECTION 10.10.  Successors and Assigns.  This Agreement shall be binding upon and
shall inure to the benefit of the parties hereto and their respective
successors and assigns; provided,  however, that:

 

(a)           the
Borrower may not assign or transfer its rights or obligations hereunder without
the prior written consent of the Agent and all Lenders; and

 

(b)           the
rights of sale, assignment and transfer of the Lenders are subject to Section 10.11.

 

SECTION 10.11.  Sale and Transfer of Loans and Note;
Participations in Loans and Note. 
Each Lender may assign, or sell participations in, its Loans and
Commitments to one or more other Persons in accordance with this Section 10.11.

 

SECTION 10.11.1.  Assignments.  Any Lender,

 

63

 

(a)           with
the written consent of the Borrower, the Swing Line Lender and the Agent (which
consent shall not be unreasonably delayed or withheld, and which consent, in
the case of the Borrower, shall be deemed to have been given if the Borrower
fails to deliver a written notice to the Agent on or before the tenth Business
Day after receipt by the Borrower of the Agent’s request for consent, stating,
in reasonable detail, the reasons why the Borrower proposes to withhold such
consent) may at any time assign and delegate to other commercial banks, other
financial institutions or Approved Funds its Loans, Swing Line Loan
participations and Commitments hereunder; provided, however, that
if an Event of Default has occurred and is continuing, the consent of the
Borrower shall not be required; and

 

(b)           with
notice to the Borrower, the Swing Line Lender and the Agent, but without the
consent of the Borrower, the Swing Line Lender or the Agent, may assign and
delegate to any of its Affiliates or to any other Lender or its Affiliates all
or any portion of its Loans, Swing Line Loan participations and Commitments
hereunder;

 

(each Person described in
either of the foregoing clauses as being the Person to whom such assignment and
delegation is to be made, being hereinafter referred to as an “Assignee
Lender”), in a minimum aggregate amount of $10,000,000 (or such lesser
amount as may be agreed to by the Borrower and the Agent, at their option) in
the case of clause (a) above, and all of the Loans and Commitments of
such Assignee Lender in the case of clause (b) above; provided,  however,
that any such Assignee Lender will comply, if applicable, with the provisions
contained in the last sentence of Section 4.6 and further, provided,
however, that, the Borrower and the Agent shall be entitled to continue to
deal solely and directly with such Lender in connection with the interests so
assigned and delegated to an Assignee Lender until:

 

(i)            written
notice of such assignment and delegation, together with payment instructions,
addresses and related information with respect to such Assignee Lender, shall
have been given to the Borrower and the Agent by such Lender and such Assignee
Lender;

 

(ii)           such
Assignee Lender shall have executed and delivered to the Borrower and the Agent
a Lender Assignment Agreement, accepted by the Agent; and

 

(iii)          the processing fees described below shall
have been paid.

 

From and after the date that the Agent accepts such
Lender Assignment Agreement, (x) the Assignee Lender thereunder shall be deemed
automatically to have become a party hereto and to the extent that rights and
obligations hereunder have been assigned and delegated to such Assignee Lender
in connection with such Lender Assignment Agreement, shall have the rights and
obligations of a Lender hereunder and under the other Loan Documents, and (y)
the assignor Lender, to the extent that rights and obligations hereunder have
been assigned and delegated by it in connection with such Lender Assignment
Agreement, shall be released from its obligations hereunder and under the other
Loan Documents but shall continue to be entitled to the benefits of the
indemnity provisions hereunder for the period prior to such assignment.  Within five Business Days after its receipt
of notice that the Agent has received an executed Lender

 

64

 

Assignment Agreement, the Borrower shall execute and deliver to the
Agent (for delivery to the relevant Assignee Lender) a new Note evidencing such
Assignee Lender’s assigned Loans and Commitments, and, if the assignor Lender
has retained Loans and a Commitment hereunder, a replacement Note in the
principal amount of the Loans and Commitment retained by the assignor Lender
hereunder (such Note to be in exchange for, but not in payment of, that Note
then held by such assignor Lender). 
Each such Note shall be dated the date of the predecessor Note.  The assignor Lender shall mark the
predecessor Note “exchanged” and deliver it to the Borrower.  Accrued interest on that part of the
predecessor Note evidenced by the new Note, and accrued fees, shall be paid as
provided in the Lender Assignment Agreement. 
Accrued interest on that part of the predecessor Note evidenced by the
replacement Note shall be paid to the assignor Lender.  Accrued interest and accrued fees shall be
paid at the same time or times provided in the predecessor Note and in this
Agreement.  Such assignor Lender or such
Assignee Lender must also pay a processing fee to the Agent upon delivery of
any Lender Assignment Agreement in the amount of $3,500 (provided,  however,
that such processing fee shall not be required to be paid by a Lender in the
case of an assignment of such Lender’s Loans and Commitments to an Affiliate or
Subsidiary of such Lender).  Any attempted
assignment and delegation not made in accordance with this Section 10.11.1
shall be null and void.  Notwithstanding
anything to the contrary set forth above, any Lender may (without requesting
the consent of the Borrower, the Swing Line Lender or the Agent) pledge its
Loans to a Federal Reserve Bank in accordance with applicable regulations.  Notwithstanding anything to the contrary
contained herein, any Lender (a “Granting Lender”) may grant to a
special purpose funding vehicle (an “SPC”), identified as such in
writing from time to time by the Granting Lender to the Agent and the Borrower,
the option to provide to the Borrower all or any part of any Loan that such
Granting Lender would otherwise be obligated to make to the Borrower pursuant
to this Agreement; provided that (i) nothing herein shall constitute a
commitment by any SPC to make any Loan, (ii) if an SPC elects not to exercise
such option or otherwise fails to provide all or any part of such Loan, the
Granting Lender shall be obligated to make such Loan pursuant to the terms
hereof.  The making of a Loan by an SPC
hereunder shall utilize the Commitment of the Granting Lender to the same
extent, and as if, such Loan were made by such Granting Lender.  Each party hereto hereby agrees that no SPC
shall be liable for any indemnity or similar payment obligation under this
Agreement (all liability for which shall remain with the Granting Lender).  In furtherance of the foregoing, each party
hereto hereby agrees (which agreement shall survive the termination of this
Agreement) that, prior to the date that is one year and one day after the
payment in full of all outstanding commercial paper or other senior
indebtedness of any SPC, it will not institute against, or join any other
person in instituting against, such SPC any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings under the laws of the United
States or any State thereof.  In
addition, notwithstanding anything to the contrary contained in Section 10.1.1,
any SPC may (i) with notice to, but without the prior written consent of, the
Borrower and the Agent and without paying any processing fee therefor, assign
all or a portion of its interests in any Loans to the Granting Lender or to any
financial institutions (consented to by the Borrower and Agent) providing
liquidity and/or credit support to or for the account of such SPC to support
the funding or maintenance of Loans and (ii) disclose on a confidential basis
any non-public information relating to its Loans to any rating agency,
commercial paper dealer or provider of any surety, guarantee or credit or
liquidity enhancement to such SPC.  This
section may not be amended without the written consent of each Granting
Lender, all or any of whose Loans are being funded by an SPC at the time of
such amendment.  It is understood and
acknowledged that

 

65

 

the Granting Lender shall for all purposes, including, without
limitation, the approval of any amendment or waiver of any provision of any
Loan Document or the obligation to pay any amount otherwise payable by the
Granting Lender under the Loan Documents, continue to be the Lender of record
hereunder.

 

As used herein, (i) the term “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 any entity that
administers or manages a Lender and (ii) the term “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.

 

SECTION 10.11.2.  Participations.  Any Lender may at any time sell to one or
more commercial banks or other Persons (each of such commercial banks and other
Persons being herein called a “Participant”) participating interests in
any of the Loans, its Commitment, or other interests of such Lender hereunder; provided,
however, that

 

(a)           no
participation contemplated in this Section 10.11 shall relieve such
Lender from its Commitment or its other obligations hereunder or under any
other Loan Document;

 

(b)           such
Lender shall remain solely responsible for the performance of its Commitment
and such other obligations;

 

(c)           the
Borrower and the Agent shall continue to deal solely and directly with such
Lender in connection with such Lender’s rights and obligations under this
Agreement and each of the other Loan Documents;

 

(d)           no
Participant, unless such Participant is an Affiliate of such Lender, or is
itself a Lender, shall be entitled to require such Lender to take or refrain
from taking any action hereunder or under any other Loan Document, except that
such Lender may agree with any Participant that such Lender will not, without
such Participant’s consent, take any actions of the type described in clause
(b) or (c) of Section 10.1; and

 

(e)           the
Borrower shall not be required to pay any amounts to a Lender under Sections
4.3, 4.4, 4.5, 4.6, 4.8, 4.9, 10.3
and 10.4 or otherwise, that are greater than the amounts which it would
have been required to pay to such Lender had no participating interest been
sold.

 

SECTION 10.12.  Other Transactions.  Nothing contained herein shall preclude the
Agent or any other Lender from engaging in any transaction, in addition to
those contemplated by this Agreement or any other Loan Document, with the
Borrower or any of its Affiliates in which the Borrower or such Affiliate is
not restricted hereby from engaging with any other Person.

 

SECTION 10.13.  Forum Selection and Consent to
Jurisdiction.  ANY LITIGATION BASED HEREON, OR ARISING
OUT OF, UNDER, OR IN CONNECTION WITH, THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT, OR ANY COURSE OF

 

66

 

CONDUCT, COURSE OF DEALING,
STATEMENTS (WHETHER ORAL OR WRITTEN) OR ACTIONS OF THE AGENT, THE LENDERS OR
THE BORROWER SHALL BE BROUGHT AND MAINTAINED EXCLUSIVELY IN THE COURTS OF THE
STATE OF NEW YORK OR IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN
DISTRICT OF NEW YORK.  THE BORROWER
HEREBY EXPRESSLY AND IRREVOCABLY SUBMITS TO  THE
JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK AND OF THE UNITED STATES
DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK FOR THE PURPOSE OF ANY
SUCH LITIGATION AS SET FORTH ABOVE AND IRREVOCABLY AGREES TO BE BOUND BY ANY
JUDGMENT RENDERED THEREBY IN CONNECTION WITH SUCH LITIGATION.  THE BORROWER FURTHER IRREVOCABLY CONSENTS TO
THE SERVICE OF PROCESS BY REGISTERED MAIL TO THE CORPORATE SECRETARY, POSTAGE
PREPAID, AND WAIVES PERSONAL SERVICE OF ANY SUMMONS, COMPLAINT OR OTHER
PROCESS, WHICH MAY BE MADE BY ANY OTHER MEANS PERMITTED BY THE LAW OF THE
STATE OF NEW YORK.  THE BORROWER HEREBY
EXPRESSLY AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY
OBJECTION WHICH IT MAY HAVE OR HEREAFTER MAY HAVE TO THE LAYING OF
VENUE OF ANY SUCH LITIGATION BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND
ANY CLAIM THAT ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT
FORUM.  TO THE EXTENT THAT THE BORROWER
HAS OR HEREAFTER MAY ACQUIRE ANY IMMUNITY FROM JURISDICTION OF ANY COURT
OF FROM ANY LEGAL PROCESS (WHETHER THROUGH SERVICE OR NOTICE, ATTACHMENT PRIOR
TO JUDGMENT, ATTACHMENT IN AID OF EXECUTION OR OTHERWISE) WITH RESPECT TO
ITSELF OR ITS PROPERTY, THE BORROWER HEREBY IRREVOCABLY WAIVES SUCH IMMUNITY IN
RESPECT OF ITS OBLIGATIONS UNDER THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS.

 

SECTION 10.14.  WAIVER OF JURY TRIAL.  THE AGENT, THE LENDERS AND THE BORROWER HEREBY
KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHTS THEY MAY HAVE TO
A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF,
UNDER, OR IN CONNECTION WITH, THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR ANY
COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER ORAL OR WRITTEN) OR
ACTIONS OF THE AGENT, THE LENDERS OR THE BORROWER.  THE BORROWER ACKNOWLEDGES AND AGREES THAT IT HAS RECEIVED FULL
AND SUFFICIENT CONSIDERATION FOR THIS PROVISION (AND EACH OTHER PROVISION OF
EACH OTHER LOAN DOCUMENT TO WHICH IT IS A PARTY) AND THAT THIS PROVISION IS A MATERIAL
INDUCEMENT FOR THE AGENT AND THE LENDERS ENTERING INTO THIS AGREEMENT AND EACH
SUCH OTHER LOAN DOCUMENT.

 

[signature pages
to follow]

 

67

 

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

 

	
   

  	
  McCORMICK & COMPANY,

  INCORPORATED

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Christopher J. Kurtzman

  
	
   

  	
   

  	
  Christopher
  J. Kurtzman

  
	
   

  	
   

  	
  Title:  Vice President & Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ W. Geoffrey
  Carpenter

  
	
   

  	
   

  	
  W.
  Geoffrey Carpenter

  
	
   

  	
   

  	
  Title:  Assistant Secretary

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  18 Loveton Circle

  
	
   

  	
   

  	
  Sparks, MD  21152

  
	
   

  	
   

  
	
   

  	
  Facsimile No.: (410)
  527-8228

  
	
   

  	
   

  
	
   

  	
  Attn:    Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WACHOVIA BANK, N.A.,

  
	
   

  	
  as Administrative Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Meg Beveridge

  
	
   

  	
   

  	
  Printed
  Name:  Meg Beveridge

  
	
   

  	
   

  	
  Title:  Vice President

  
	
   

  	
   

  
	
   

  	
  191 Peachtree Street

  
	
   

  	
  Mail
  Code:  GA-31273

  
	
   

  	
  Atlanta,
  Georgia  30303

  
	
   

  	
  Attention:  Michael Adams

  
	
   

  	
  Facsimile
  No.:  (404) 332-5144

  
				

 

68

 

	
  PERCENTAGE

  	
  LENDERS

  
	
   

  	
   

  
	
  8.58%

  	
  WACHOVIA BANK, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Meg Beveridge

  
	
   

  	
   

  	
  Printed
  Name:  Meg Beveridge

  
	
   

  	
   

  	
  Title:  Vice President

  
	
   

  	
   

  
	
   

  	
  191 Peachtree Street

  
	
   

  	
  Mail
  Code:  GA-31273

  
	
   

  	
  Atlanta,
  Georgia  30303

  
	
   

  	
  Attention:  Michael Adams

  
	
   

  	
  Facsimile
  No.: (404) 332-5144

  

 

 

	
  PERCENTAGE

  	
  LENDERS

  
	
   

  	
   

  
	
   

  	
   

  
	
  17.14%

  	
  BANK OF AMERICA, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  William F. Sweeney

  
	
   

  	
   

  	
  Printed
  Name:  William F. Sweeney

  
	
   

  	
   

  	
  Title:  Managing Director

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  219 South LaSalle
  Street

  
	
   

  	
   

  	
  Chicago, IL 60697

  
	
   

  	
   

  
	
   

  	
  Facsimile No.:

  	
  (312) 987-1276

  
	
   

  	
   

  
	
   

  	
  Attn: William F.
  Sweeney

  
				

 

 

	
  PERCENTAGE

  	
  LENDERS

  
	
   

  	
   

  
	
  17.14%

  	
  SUNTRUST BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul R. Beliveau

  
	
   

  	
   

  	
  Printed Name:  Paul R. Beliveau

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  120 East Baltimore Street

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Baltimore, MD 21202

  
	
   

  	
   

  	
   

  
	
   

  	
  Facsimile:

  	
  (410) 986-1670

  
	
   

  	
   

  
	
   

  	
  Attn:

  
				

 

 

	
  PERCENTAGE

  	
  LENDERS

  
	
   

  	
   

  
	
  14.29%

  	
  WELLS FARGO BANK, NATIONAL ASSOCIATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Brad Hardy

  
	
   

  	
   

  	
  Printed Name:  Brad Hardy

  
	
   

  	
   

  	
  Title:  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Roy H. Roberts

  
	
   

  	
   

  	
  Printed Name:  Roy Roberts

  
	
   

  	
   

  	
  Title:  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  70 E. 55th
  Street, 11th Floor

  
	
   

  	
   

  	
  New York, NY 10022

  
	
   

  	
   

  	
   

  
	
   

  	
  Facsimile No.:

  	
  (212) 593-5241

  
	
   

  	
   

  
	
   

  	
  Attn: Lori Ross

  
				

 

 

	
  PERCENTAGE

  	
  LENDERS

  
	
   

  	
   

  
	
   

  	
   

  
	
  8.58%

  	
  ALLFIRST BANK

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Frank V. Lago

  
	
   

  	
   

  	
  Printed Name:  Frank V. Lago

  
	
   

  	
   

  	
  Title:  Vice President

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  25 South Charles Street

  
	
   

  	
   

  	
  Baltimore, MD 21201

  
	
   

  	
   

  	
   

  
	
   

  	
  Facsimile No.:

  	
  (410) 244-4294

  
	
   

  	
   

  
	
   

  	
  Attn: Frank V. Lago

  
				

 

 

	
  PERCENTAGE

  	
  LENDERS

  
	
   

  	
   

  
	
   

  	
   

  
	
  7.14%

  	
  CREDIT SUISSE FIRST BOSTON

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Andrea E. Shkane

  
	
   

  	
   

  	
  Printed Name:  Andrea E. Shkane

  
	
   

  	
   

  	
  Title:  Vice President

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  Eleven Madison Avenue

  
	
   

  	
   

  	
  New York, NY 10019

  
	
   

  	
   

  	
   

  
	
   

  	
  Facsimile No.:

  	
  (212) 325-8320

  
	
   

  	
   

  
	
   

  	
  Attn: Jay Chall

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  David Sawyer

  
	
   

  	
   

  	
  Printed Name:  David Sawyer

  
	
   

  	
   

  	
  Title:  Vice President

  
				

 

 

	
  PERCENTAGE

  	
  LENDERS

  
	
   

  	
   

  
	
   

  	
   

  
	
  7.14%

  	
  BNP PARIBAS

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Nanette Baudon

  
	
   

  	
   

  	
  Printed Name:  Nanette Baudon

  
	
   

  	
   

  	
  Title:  Vice President

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/.  Richard Pace

  
	
   

  	
   

  	
  Printed Name:  Richard Pace

  
	
   

  	
   

  	
  Title: VP–Corporate Banking
  Division

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  787 7th
  Avenue, 31st Floor

  
	
   

  	
   

  	
  New York, NY 10019

  
	
   

  	
   

  	
   

  
	
   

  	
  Facsimile No.:

  	
  (212) 841-3049

  
	
   

  	
   

  
	
   

  	
  Attn: Nanette Baudon

  
				

 

 

	
  PERCENTAGE

  	
  LENDERS

  
	
   

  	
   

  
	
   

  	
   

  
	
  7.14%

  	
  THE BANK OF NEW YORK

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Steven P. Cavaluzzo

  
	
   

  	
   

  	
  Printed Name:  Steven P. Cavaluzzo

  
	
   

  	
   

  	
  Title:  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  1 Wall Street, 22nd
  Floor

  
	
   

  	
   

  	
  New York, NY 10286

  
	
   

  	
   

  	
   

  
	
   

  	
  Facsimile No.:

  	
  (212) 635-6434

  
	
   

  	
   

  
	
   

  	
  Attn: Steven P.
  Cavaluzzo

  
				

 

 

	
  PERCENTAGE

  	
  LENDERS

  
	
   

  	
   

  
	
   

  	
   

  
	
  7.14%

  	
  THE FUJI BANK, LIMITED

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Raymond Ventura

  
	
   

  	
   

  	
  Printed Name:  Raymond Ventura

  
	
   

  	
   

  	
  Title:  Senior Vice President

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  Two World Trade Center

  
	
   

  	
   

  	
  New York, NY 10048-0042

  
	
   

  	
   

  	
   

  
	
   

  	
  Facsimile No.:

  	
  (212) 321-9407

  
	
   

  	
   

  
	
   

  	
  Attn: Alejandro D.
  Waldman

  
				

 

 

	
  PERCENTAGE

  	
  LENDERS

  
	
   

  	
   

  
	
   

  	
   

  
	
  5.71%

  	
  MELLON BANK, N.A.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  David H. Reed

  
	
   

  	
   

  	
  Printed Name:  David H. Reed

  
	
   

  	
   

  	
  Title:  First Vice President

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  8521 Leesberg Pike,
  Ste. 405

  
	
   

  	
   

  	
  Vienna, VA 22182

  
	
   

  	
   

  	
   

  
	
   

  	
  Facsimile No.:

  	
  (410) 778-9448

  
	
   

  	
   

  
	
   

  	
  Attn: Peter Heller

  
				

 

 

SCHEDULE I

 

DISCLOSURE SCHEDULE

 

	
  ITEM 6.7

  	
   

  	
  Litigation.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  None.

  
	
   

  	
   

  	
   

  
	
  ITEM 6.8

  	
   

  	
  Existing Subsidiaries
  as of the Effective Date.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attached - Exhibit A.

  
	
   

  	
   

  	
   

  
	
  ITEM 6.11

  	
   

  	
  Employee Benefit Plans.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attached - Exhibit B.

  
	
   

  	
   

  	
   

  
	
  ITEM 6.12

  	
   

  	
  Environmental Matters.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  None.

  
	
   

  	
   

  	
   

  
	
  ITEM 7.2.3

  	
   

  	
  Existing Liens.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attached - Exhibit C.

  

 

 

EXHIBIT A

 

THE
AMERICAS MARKET ZONE

 

U.S.
Consumer Products Division

Ampacco,
Inc. (Maryland)

Han-Dee
Pak, Inc.  (Maryland)

McCormick
de Puerto Rico, Inc.  (Delaware)

Mojave
Foods Corporation  (Maryland)

El
Guapo Foods, Inc.  (California)

More
For Less, Inc.  (Delaware)

Produce
Partners, Inc.  (Illinois)

Old
Bay Company, Inc.  (Delaware)

McCormick
Holding Company, Inc.  (Delaware)

Signature
Brands, LLC  (Florida)

McCormick
Investment Company, Inc.  (Delaware)

McCormick
Fresh Herbs, LLC  (Delaware)

 

McCormick
de Centro America, S.A. de C.V.  (El
Salvador)

 

EUROPEAN MARKET
ZONE

 

McCormick
Europe Ltd.  (United Kingdom)

McCormick
International Holdings Ltd.  (United
Kingdom)

McCormick
France S.A.S.  (France)

Ducros
S.A.S.  (France)

Dessert
Products International  (France)

Sodis
S.A.S.  (France)

McCormick
Management Services S.A.R.L.  (France)

McCormick
(U.K.) Ltd.  (Scotland)

Bluebroad
1 Limited  (England)

McCormick
Baharat de Gida Sanay A.S.  (Turkey)

McCormick
Glentham (Pty) Limited  (South Africa)

McCormick
Kutas Food Services Ltd.  (United
Kingdom)

Noel
Holdings Limited  (England)

McCormick
Foodservice Ltd.  (England)

 

McCormick
S.A.  (Switzerland)

 

Oy
McCormick Ab  (Finland)

 

ASIAN MARKET
ZONE

 

McCormick
Foods Australia Pty. Ltd.  (Australia)

Traders
Pty. Ltd.  (Australia)

 

McCormick
(Guangzhou) Food Company Limited 
(China)

 

McCormick
India Private Limited  (India) (100%
owned subsidiary of McCormick (U.K.) Ltd.

 

Shanghai
McCormick Foods Company, Limited (China) (90% owned)

 

 

GLOBAL
INDUSTRIAL GROUP

 

Food
Service Division

 

McCormick
Flavor Group

McCormick
Ingredients Southeast Asia Private Limited

Classic
Foods, Inc.  (Connecticut)

McCormick
Pesa, S.A. de C.V.  (Mexico)

McCormick
Uruguay Holdings, Inc.  (Delaware)

McCormick
Uruguay, S.A.  (Uruguay)

 

La
Cie McCormick Canada Co

 

Packaging
Group

Setco,
Inc.  (Delaware)

Tubed
Products, Inc.  (Maryland)

OG
Dehydrated, Inc.  (California)

 

MISCELLANEOUS

 

AH
Investments, Inc.  (Maryland)

Armanino
Farms of California, Inc.  (California)

International
Ingredients, Inc.  (Maryland)

McCormick
Credit, Inc.  (Delaware)

McCormick
Delaware, Inc.  (Delaware)

McCormick
Foreign Sales Corporation  (U.S. Virgin
Islands)

McCormick
Ingredientes Brasil Ltda.  (Brazil)

McCormick
Global Ingredients Limited  (Cayman)

McCormick
Cyprus Limited  (Cyprus)

McCormick Hungary Group Financing Limited Liability
Company  (Hungary)

McCormick
Europe Ltd.  (United Kingdom)

McCormick
(U.K.) Ltd.  (Scotland)

McCormick
International Holdings Ltd.  (United
Kingdom)

La
Cie McCormick Canada Co.  (Canada)

McCormick
Foods Australia Pty. Ltd.  (Australia)

 

 

REVOLVING
LOAN NOTE

 

	
  U.S.  $38,565,000

  	
   

  	
  June 19,
  2001

  

 

FOR VALUE RECEIVED, the undersigned, McCORMICK &
COMPANY, INCORPORATED, a Maryland corporation (the “Borrower”), promises
to pay to the order of SUNTRUST BANK (the “Lender”) on the Maturity Date
(as such term in defined in the 364-Day Credit Agreement, dated as of
June 19, 2001 (as amended or modified from time to time, the “Credit
Agreement”)), among the Borrower, Wachovia, N.A., as the administrative
agent (the “Agent”), and the various financial institutions (including
the Lender) as are, or may become parties thereto, the aggregate unpaid
principal amount of all Revolving Loans made by the Lender to the Borrower from
time to time pursuant to the Credit Agreement, the principal sum of
THIRTY-EIGHT MILLION FIVE HUNDRED SIXTY-FIVE THOUSAND AND 00/100 UNITED STATES
DOLLARS (U.S. $38,565,000) (or the Foreign Currency Equivalent of any currency
which the Borrower may borrow under the Credit Agreement) or, if less, the
aggregate unpaid principal amount of all Revolving Loans made by the Lender
pursuant to the Credit Agreement.  A
notation indicating all Revolving Loans made by the Lender pursuant to the
Credit Agreement and payments on account of the principal of such Revolving
Loans may, from time to time, be made by the holder hereof on the grid attached
to this note (this “Note”). 
Unless defined herein or the context otherwise requires, terms used
herein have the meanings provided in the Credit Agreement.

 

The unpaid principal amount of this Note from time to
time outstanding shall bear interest as provided in Section 3.3.1
of the Credit Agreement.  All payments
of principal of and interest on this Note shall be payable in lawful currency
of the United States of America (or the other currency borrowed) to the account
designated by the Agent in same day or immediately available funds.

 

This Note is one of the Notes referred to in, and
evidences indebtedness incurred in respect of the Revolving Loans under, the
Credit Agreement, to which reference is made for a description of any security
for this Note and for a statement of the terms and conditions on which the
Borrower is permitted and required to make prepayments of principal of the
indebtedness evidenced by this Note and on which such indebtedness may be
declared to be immediately due and payable.

 

Exhibit A-1

Page 1 of 3

 

THIS NOTE HAS BEEN DELIVERED IN NEW YORK, NEW YORK AND SHALL
BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE
STATE OF NEW YORK.

 

	
   

  	
  McCORMICK &
  COMPANY, INCORPORATED

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Christopher J.
  Kurtzman

  
	
   

  	
   

  
	
   

  	
  Title:

  	
  Vice President &
  Treasurer

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ W. G. Carpenter

  
	
   

  	
   

  
	
   

  	
  Title:

  	
  Assistant Secretary

  
				

 

Exhibit A-1

Page 2 of 3

 

	
  Date

  	
   

  	
  Amount of

  Loans and

  Currency

  	
   

  	
  Alternate
  Base

  Rate

  	
   

  	
  LIBO Rate

  	
   

  	
  Last Day
  of

  Applicable 

  Interest Period

  	
   

  	
  Amount of

  Principal

  Payment

  	
   

  	
  Outstanding

  Principal

  Balance

  	
   

  	
  Notation

  Made By

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Exhibit A-1

Page 3 of 3

 

 

REVOLVING LOAN NOTE

 

	
  U.S.  $38,565,000

  	
   

  	
  June 19,
  2001

  

 

FOR VALUE RECEIVED, the undersigned, McCORMICK &
COMPANY, INCORPORATED, a Maryland corporation (the “Borrower”), promises
to pay to the order of BANK OF AMERICA, N.A. (the “Lender”) on the
Maturity Date (as such term in defined in the 364-Day Credit Agreement, dated
as of June 19, 2001 (as amended or modified from time to time, the “Credit
Agreement”)), among the Borrower, Wachovia, N.A., as the administrative
agent (the “Agent”), and the various financial institutions (including
the Lender) as are, or may become parties thereto, the aggregate unpaid
principal amount of all Revolving Loans made by the Lender to the Borrower from
time to time pursuant to the Credit Agreement, the principal sum of
THIRTY-EIGHT MILLION FIVE HUNDRED SIXTY-FIVE THOUSAND AND 00/100 UNITED STATES
DOLLARS (U.S. $38,565,000) UNITED STATES DOLLARS (or the Foreign Currency
Equivalent of any currency which the Borrower may borrow under the Credit
Agreement) or, if less, the aggregate unpaid principal amount of all Revolving
Loans made by the Lender pursuant to the Credit Agreement.  A notation indicating all Revolving Loans
made by the Lender pursuant to the Credit Agreement and payments on account of
the principal of such Revolving Loans may, from time to time, be made by the
holder hereof on the grid attached to this note (this “Note”).  Unless defined herein or the context
otherwise requires, terms used herein have the meanings provided in the Credit
Agreement.

 

The unpaid principal amount of this Note from time to
time outstanding shall bear interest as provided in Section 3.3.1
of the Credit Agreement.  All payments
of principal of and interest on this Note shall be payable in lawful currency
of the United States of America (or the other currency borrowed) to the account
designated by the Agent in same day or immediately available funds.

 

This Note is one of the Notes referred to in, and
evidences indebtedness incurred in respect of the Revolving Loans under, the
Credit Agreement, to which reference is made for a description of any security
for this Note and for a statement of the terms and conditions on which the
Borrower is permitted and required to make prepayments of principal of the
indebtedness evidenced by this Note and on which such indebtedness may be
declared to be immediately due and payable.

 

Exhibit A-1

Page 1 of 3

 

THIS NOTE HAS BEEN DELIVERED IN NEW YORK, NEW YORK AND
SHALL  BE DEEMED TO BE A CONTRACT MADE
UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK.

 

	
   

  	
  McCORMICK &
  COMPANY,

  INCORPORATED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/  Christopher J. Kurtzman

  
	
   

  	
  Title: 

  	
  Vice
  President & Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/  W. G. Carpenter

  
	
   

  	
  Title:

  	
  Assistant
  Secretary

  
					

 

Exhibit A-1

Page 2 of 3

 

	
  Date

  	
   

  	
  Amount of

  Loans and

  Currency

  	
   

  	
  Alternate
  Base 

  Rate

  	
   

  	
  LIBO Rate

  	
   

  	
  Last Day
  of

  Applicable

  Interest Period

  	
   

  	
  Amount of

  Principal

  Payment

  	
   

  	
  Outstanding

  Principal

  Balance

  	
   

  	
  Notation

  Made By

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Exhibit A-1

Page 3 of 3

 

REVOLVING LOAN NOTE

 

	
  U.S.  $32,152,500

  	
   

  	
  June 19,
  2001

  

 

FOR VALUE RECEIVED, the undersigned, McCORMICK &
COMPANY, INCORPORATED, a Maryland corporation (the “Borrower”), promises
to pay to the order of WELLS FARGO BANK, NATIONAL ASSOCIATION (the “Lender”)
on the Maturity Date (as such term in defined in the 364-Day Credit Agreement,
dated as of June 19, 2001 (as amended or modified from time to time, the “Credit
Agreement”)), among the Borrower, Wachovia, N.A., as the administrative
agent (the “Agent”), and the various financial institutions (including
the Lender) as are, or may become parties thereto, the aggregate unpaid
principal amount of all Revolving Loans made by the Lender to the Borrower from
time to time pursuant to the Credit Agreement, the principal sum of THIRTY-TWO
MILLION ONE HUNDRED FIFTY-TWO THOUSAND FIVE HUNDRED 00/100 UNITED STATES
DOLLARS (U.S. $32,152,500) (or the Foreign Currency Equivalent of any currency
which the Borrower may borrow under the Credit Agreement) or, if less, the
aggregate unpaid principal amount of all Revolving Loans made by the Lender
pursuant to the Credit Agreement.  A
notation indicating all Revolving Loans made by the Lender pursuant to the
Credit Agreement and payments on account of the principal of such Revolving
Loans may, from time to time, be made by the holder hereof on the grid attached
to this note (this “Note”). 
Unless defined herein or the context otherwise requires, terms used
herein have the meanings provided in the Credit Agreement.

 

The unpaid principal amount of this Note from time to
time outstanding shall bear interest as provided in Section 3.3.1
of the Credit Agreement.  All payments
of principal of and interest on this Note shall be payable in lawful currency
of the United States of America (or the other currency borrowed) to the account
designated by the Agent in same day or immediately available funds.

 

This Note is one of the Notes referred to in, and
evidences indebtedness incurred in respect of the Revolving Loans under, the
Credit Agreement, to which reference is made for a description of any security
for this Note and for a statement of the terms and conditions on which the
Borrower is permitted and required to make prepayments of principal of the
indebtedness evidenced by this Note and on which such indebtedness may be
declared to be immediately due and payable.

 

Exhibit A-1

Page 1 of 3

 

THIS NOTE HAS BEEN DELIVERED IN NEW YORK, NEW YORK AND
SHALL  BE DEEMED TO BE A CONTRACT MADE
UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK.

 

	
   

  	
  McCORMICK &
  COMPANY,

  INCORPORATED

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Christopher J. Kurtzman

  
	
   

  	
  Title:

  	
  Vice
  President & Treasurer

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  W. G. Carpenter

  
	
   

  	
  Title:

  	
  Assistant
  Secretary

  
					

 

Exhibit A-1

Page 2 of 3

 

	
  Date

  	
   

  	
  Amount of

  Loans and

  Currency

  	
   

  	
  Alternate
  Base 

  Rate

  	
   

  	
  LIBO Rate

  	
   

  	
  Last Day
  of

  Applicable

  Interest Period

  	
   

  	
  Amount of

  Principal

  Payment

  	
   

  	
  Outstanding

  Principal

  Balance

  	
   

  	
  Notation

  Made By

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Exhibit A-1

Page 3 of 3

 

REVOLVING LOAN NOTE

 

	
  U.S.  $19,305,000

  	
   

  	
  June 19,
  2001

  

 

FOR VALUE RECEIVED, the undersigned, McCORMICK &
COMPANY, INCORPORATED, a Maryland corporation (the “Borrower”), promises
to pay to the order of WACHOVIA, N.A. (the “Lender”) on the Maturity
Date (as such term in defined in the 364-Day Credit Agreement, dated as of
June 19, 2001 (as amended or modified from time to time, the “Credit
Agreement”)), among the Borrower, Wachovia, N.A., as the administrative
agent (the “Agent”), and the various financial institutions (including
the Lender) as are, or may become parties thereto, the aggregate unpaid
principal amount of all Revolving Loans made by the Lender to the Borrower from
time to time pursuant to the Credit Agreement, the principal sum of NINETEEN
MILLION THREE HUNDRED FIVE THOUSAND AND 00/100 UNITED STATES DOLLARS (U.S.
$19,305,000) (or the Foreign Currency Equivalent of any currency which the
Borrower may borrow under the Credit Agreement) or, if less, the aggregate
unpaid principal amount of all Revolving Loans made by the Lender pursuant to
the Credit Agreement.  A notation
indicating all Revolving Loans made by the Lender pursuant to the Credit
Agreement and payments on account of the principal of such Revolving Loans may,
from time to time, be made by the holder hereof on the grid attached to this
note (this “Note”).  Unless
defined herein or the context otherwise requires, terms used herein have the
meanings provided in the Credit Agreement.

 

The unpaid principal amount of this Note from time to
time outstanding shall bear interest as provided in Section 3.3.1
of the Credit Agreement.  All payments
of principal of and interest on this Note shall be payable in lawful currency
of the United States of America (or the other currency borrowed) to the account
designated by the Agent in same day or immediately available funds.

 

This Note is one of the Notes referred to in, and
evidences indebtedness incurred in respect of the Revolving Loans under, the
Credit Agreement, to which reference is made for a description of any security
for this Note and for a statement of the terms and conditions on which the
Borrower is permitted and required to make prepayments of principal of the
indebtedness evidenced by this Note and on which such indebtedness may be
declared to be immediately due and payable.

 

Exhibit A-1

Page 1 of 3

 

THIS NOTE HAS BEEN DELIVERED IN NEW YORK, NEW YORK AND
SHALL  BE DEEMED TO BE A CONTRACT MADE
UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK.

 

	
   

  	
  McCORMICK &
  COMPANY,

  INCORPORATED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/  Christopher J. Kurtzman

  
	
   

  	
  Title: 

  	
  Vice
  President & Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/  W. G. Carpenter

  
	
   

  	
  Title:

  	
  Assistant
  Secretary

  
					

 

Exhibit A-1

Page 2 of 3

 

	
  Date

  	
   

  	
  Amount of

  Loans and

  Currency

  	
   

  	
  Alternate
  Base

  Rate

  	
   

  	
  LIBO Rate

  	
   

  	
  Last Day
  of

  Applicable

  Interest Period

  	
   

  	
  Amount of

  Principal

  Payment

  	
   

  	
  Outstanding

  Principal

  Balance

  	
   

  	
  Notation

  Made By

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Exhibit A-1

Page 3 of 3

 

REVOLVING LOAN NOTE

 

	
  U.S.  $19,305,000

  	
   

  	
  June 19,
  2001

  

 

FOR VALUE RECEIVED, the undersigned, McCORMICK &
COMPANY, INCORPORATED, a Maryland corporation (the “Borrower”), promises
to pay to the order of ALLFIRST BANK (the “Lender”) on the Maturity Date
(as such term in defined in the 364-Day Credit Agreement, dated as of
June 19, 2001 (as amended or modified from time to time, the “Credit
Agreement”)), among the Borrower, Wachovia, N.A., as the administrative
agent (the “Agent”), and the various financial institutions (including
the Lender) as are, or may become parties thereto, the aggregate unpaid
principal amount of all Revolving Loans made by the Lender to the Borrower from
time to time pursuant to the Credit Agreement, the principal sum of NINETEEN
MILLION THREE HUNDRED FIVE THOUSAND AND 00/100 UNITED STATES DOLLARS (U.S.
$19,305,000) (or the Foreign Currency Equivalent of any currency which the
Borrower may borrow under the Credit Agreement) or, if less, the aggregate
unpaid principal amount of all Revolving Loans made by the Lender pursuant to
the Credit Agreement.  A notation
indicating all Revolving Loans made by the Lender pursuant to the Credit
Agreement and payments on account of the principal of such Revolving Loans may,
from time to time, be made by the holder hereof on the grid attached to this
note (this “Note”).  Unless
defined herein or the context otherwise requires, terms used herein have the
meanings provided in the Credit Agreement.

 

The unpaid principal amount of this Note from time to
time outstanding shall bear interest as provided in Section 3.3.1
of the Credit Agreement.  All payments
of principal of and interest on this Note shall be payable in lawful currency
of the United States of America (or the other currency borrowed) to the account
designated by the Agent in same day or immediately available funds.

 

This Note is one of the Notes referred to in, and
evidences indebtedness incurred in respect of the Revolving Loans under, the
Credit Agreement, to which reference is made for a description of any security
for this Note and for a statement of the terms and conditions on which the
Borrower is permitted and required to make prepayments of principal of the
indebtedness evidenced by this Note and on which such indebtedness may be
declared to be immediately due and payable.

 

Exhibit A-1

Page 1 of 3

 

THIS NOTE HAS BEEN DELIVERED IN NEW YORK, NEW YORK AND
SHALL  BE DEEMED TO BE A CONTRACT MADE
UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK.

 

	
   

  	
  McCORMICK &
  COMPANY,

  INCORPORATED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/  Christopher J. Kurtzman

  
	
   

  	
  Title: 

  	
  Vice
  President & Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/  W. G. Carpenter

  
	
   

  	
  Title:

  	
  Assistant
  Secretary

  
					

 

Exhibit A-1

Page 2 of 3

 

	
  Date

  	
   

  	
  Amount of

  Loans and

  Currency

  	
   

  	
  Alternate
  Base

  Rate

  	
   

  	
  LIBO Rate

  	
   

  	
  Last Day
  of

  Applicable

  Interest Period

  	
   

  	
  Amount of

  Principal

  Payment

  	
   

  	
  Outstanding

  Principal

  Balance

  	
   

  	
  Notation

  Made By

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Exhibit A-1

Page 3 of 3

 

REVOLVING LOAN NOTE

 

	
  U.S.  $16,065,000

  	
   

  	
  June 19,
  2001

  

 

FOR VALUE RECEIVED, the undersigned, McCORMICK &
COMPANY, INCORPORATED, a Maryland corporation (the “Borrower”), promises
to pay to the order of CREDIT SUISSE FIRST BOSTON (the “Lender”) on the
Maturity Date (as such term in defined in the 364-Day Credit Agreement, dated
as of June 19, 2001 (as amended or modified from time to time, the “Credit
Agreement”)), among the Borrower, Wachovia, N.A., as the administrative
agent (the “Agent”), and the various financial institutions (including
the Lender) as are, or may become parties thereto, the aggregate unpaid
principal amount of all Revolving Loans made by the Lender to the Borrower from
time to time pursuant to the Credit Agreement, the principal sum of SIXTEEN
MILLION SIXTY-FIVE THOUSAND 00/100 UNITED STATES DOLLARS (U.S. $16,065,000) (or
the Foreign Currency Equivalent of any currency which the Borrower may borrow
under the Credit Agreement) or, if less, the aggregate unpaid principal amount
of all Revolving Loans made by the Lender pursuant to the Credit
Agreement.  A notation indicating all
Revolving Loans made by the Lender pursuant to the Credit Agreement and
payments on account of the principal of such Revolving Loans may, from time to
time, be made by the holder hereof on the grid attached to this note (this “Note”).  Unless defined herein or the context
otherwise requires, terms used herein have the meanings provided in the Credit
Agreement.

 

The unpaid principal amount of this Note from time to
time outstanding shall bear interest as provided in Section 3.3.1
of the Credit Agreement.  All payments
of principal of and interest on this Note shall be payable in lawful currency
of the United States of America (or the other currency borrowed) to the account
designated by the Agent in same day or immediately available funds.

 

This Note is one of the Notes referred to in, and
evidences indebtedness incurred in respect of the Revolving Loans under, the
Credit Agreement, to which reference is made for a description of any security
for this Note and for a statement of the terms and conditions on which the
Borrower is permitted and required to make prepayments of principal of the indebtedness
evidenced by this Note and on which such indebtedness may be declared to be
immediately due and payable.

 

Exhibit A-1

Page 1 of 3

 

THIS NOTE HAS BEEN DELIVERED IN NEW YORK, NEW YORK AND
SHALL  BE DEEMED TO BE A CONTRACT MADE
UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK.

 

	
   

  	
  McCORMICK &
  COMPANY,

  INCORPORATED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Christopher J. Kurtzman

  
	
   

  	
  Title:

  	
  Vice
  President & Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  W. G. Carpenter

  
	
   

  	
  Title:

  	
  Assistant
  Secretary

  
				

 

Exhibit A-1

Page 2 of 3

 

	
  Date

  	
   

  	
  Amount of

  Loans and

  Currency

  	
   

  	
  Alternate
  Base

  Rate

  	
   

  	
  LIBO Rate

  	
   

  	
  Last Day
  of

  Applicable

  Interest Period

  	
   

  	
  Amount of

  Principal

  Payment

  	
   

  	
  Outstanding

  Principal

  Balance

  	
   

  	
  Notation

  Made By

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Exhibit A-1

Page 3 of 3

 

REVOLVING LOAN NOTE

 

	
  U.S.  $16,065,000

  	
   

  	
  June 19,
  2001

  

 

FOR VALUE RECEIVED, the undersigned, McCORMICK &
COMPANY, INCORPORATED, a Maryland corporation (the “Borrower”), promises
to pay to the order of BNP PARIBAS (the “Lender”) on the Maturity Date
(as such term in defined in the 364-Day Credit Agreement, dated as of
June 19, 2001 (as amended or modified from time to time, the “Credit
Agreement”)), among the Borrower, Wachovia, N.A., as the administrative
agent (the “Agent”), and the various financial institutions (including
the Lender) as are, or may become parties thereto, the aggregate unpaid
principal amount of all Revolving Loans made by the Lender to the Borrower from
time to time pursuant to the Credit Agreement, the principal sum of SIXTEEN
MILLION SIXTY-FIVE THOUSAND 00/100 UNITED STATES DOLLARS (U.S. $16,065,000) (or
the Foreign Currency Equivalent of any currency which the Borrower may borrow
under the Credit Agreement) or, if less, the aggregate unpaid principal amount
of all Revolving Loans made by the Lender pursuant to the Credit
Agreement.  A notation indicating all
Revolving Loans made by the Lender pursuant to the Credit Agreement and payments
on account of the principal of such Revolving Loans may, from time to time, be
made by the holder hereof on the grid attached to this note (this “Note”).  Unless defined herein or the context
otherwise requires, terms used herein have the meanings provided in the Credit
Agreement.

 

The unpaid principal amount of this Note from time to
time outstanding shall bear interest as provided in Section 3.3.1
of the Credit Agreement.  All payments
of principal of and interest on this Note shall be payable in lawful currency
of the United States of America (or the other currency borrowed) to the account
designated by the Agent in same day or immediately available funds.

 

This Note is one of the Notes referred to in, and
evidences indebtedness incurred in respect of the Revolving Loans under, the
Credit Agreement, to which reference is made for a description of any security
for this Note and for a statement of the terms and conditions on which the
Borrower is permitted and required to make prepayments of principal of the
indebtedness evidenced by this Note and on which such indebtedness may be
declared to be immediately due and payable.

 

Exhibit A-1

Page 1 of 3

 

THIS NOTE HAS BEEN DELIVERED IN NEW YORK, NEW YORK AND
SHALL  BE DEEMED TO BE A CONTRACT MADE
UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK.

 

	
   

  	
  McCORMICK &
  COMPANY,

  INCORPORATED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Christopher J. Kurtzman

  
	
   

  	
  Title:

  	
  Vice
  President & Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  W. G. Carpenter

  
	
   

  	
  Title:

  	
  Assistant
  Secretary

  
					

 

Exhibit A-1

Page 2 of 3

 

	
  Date

  	
   

  	
  Amount of

  Loans and

  Currency

  	
   

  	
  Alternate
  Base

  Rate

  	
   

  	
  LIBO Rate

  	
   

  	
  Last Day
  of

  Applicable

  Interest Period

  	
   

  	
  Amount of

  Principal

  Payment

  	
   

  	
  Outstanding

  Principal

  Balance

  	
   

  	
  Notation

  Made By

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Exhibit A-1

Page 3 of 3

 

REVOLVING LOAN NOTE

 

	
  U.S.  $16,065,000

  	
   

  	
  June 19,
  2001

  

 

FOR VALUE RECEIVED, the undersigned, McCORMICK &
COMPANY, INCORPORATED, a Maryland corporation (the “Borrower”), promises
to pay to the order of BANK OF NEW YORK (the “Lender”) on the Maturity
Date (as such term in defined in the 364-Day Credit Agreement, dated as of
June 19, 2001 (as amended or modified from time to time, the “Credit
Agreement”)), among the Borrower, Wachovia, N.A., as the administrative
agent (the “Agent”), and the various financial institutions (including
the Lender) as are, or may become parties thereto, the aggregate unpaid
principal amount of all Revolving Loans made by the Lender to the Borrower from
time to time pursuant to the Credit Agreement, the principal sum of SIXTEEN
MILLION SIXTY-FIVE THOUSAND 00/100 UNITED STATES DOLLARS (U.S. $16,065,000) (or
the Foreign Currency Equivalent of any currency which the Borrower may borrow
under the Credit Agreement) or, if less, the aggregate unpaid principal amount
of all Revolving Loans made by the Lender pursuant to the Credit
Agreement.  A notation indicating all
Revolving Loans made by the Lender pursuant to the Credit Agreement and payments
on account of the principal of such Revolving Loans may, from time to time, be
made by the holder hereof on the grid attached to this note (this “Note”).  Unless defined herein or the context
otherwise requires, terms used herein have the meanings provided in the Credit
Agreement.

 

The unpaid principal amount of this Note from time to
time outstanding shall bear interest as provided in Section 3.3.1
of the Credit Agreement.  All payments
of principal of and interest on this Note shall be payable in lawful currency
of the United States of America (or the other currency borrowed) to the account
designated by the Agent in same day or immediately available funds.

 

This Note is one of the Notes referred to in, and
evidences indebtedness incurred in respect of the Revolving Loans under, the
Credit Agreement, to which reference is made for a description of any security
for this Note and for a statement of the terms and conditions on which the
Borrower is permitted and required to make prepayments of principal of the
indebtedness evidenced by this Note and on which such indebtedness may be
declared to be immediately due and payable.

 

Exhibit A-1

Page 1 of 3

 

THIS NOTE HAS BEEN DELIVERED IN NEW YORK, NEW YORK AND
SHALL  BE DEEMED TO BE A CONTRACT MADE
UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK.

 

	
   

  	
  McCORMICK &
  COMPANY,

  INCORPORATED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Christopher J. Kurtzman

  
	
   

  	
  Title:

  	
  Vice
  President & Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  W. G. Carpenter

  
	
   

  	
  Title:

  	
  Assistant
  Secretary

  
					

 

Exhibit A-1

Page 2 of 3

 

	
  Date

  	
   

  	
  Amount of

  Loans and

  Currency

  	
   

  	
  Alternate
  Base

  Rate

  	
   

  	
  LIBO Rate

  	
   

  	
  Last Day
  of

  Applicable

  Interest Period

  	
   

  	
  Amount of

  Principal

  Payment

  	
   

  	
  Outstanding

  Principal

  Balance

  	
   

  	
  Notation

  Made By

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Exhibit A-1

Page 3 of 3

 

REVOLVING LOAN NOTE

 

	
  U.S.  $16,065,000

  	
   

  	
  June 19, 2001

  

 

FOR VALUE RECEIVED, the undersigned, McCORMICK &
COMPANY, INCORPORATED, a Maryland corporation (the “Borrower”), promises
to pay to the order of THE FUJI BANK, LTD. (the “Lender”) on the
Maturity Date (as such term in defined in the 364-Day Credit Agreement, dated
as of June 19, 2001 (as amended or modified from time to time, the “Credit
Agreement”)), among the Borrower, Wachovia, N.A., as the administrative
agent (the “Agent”), and the various financial institutions (including
the Lender) as are, or may become parties thereto, the aggregate unpaid
principal amount of all Revolving Loans made by the Lender to the Borrower from
time to time pursuant to the Credit Agreement, the principal sum of SIXTEEN
MILLION SIXTY-FIVE THOUSAND 00/100 UNITED STATES DOLLARS (U.S. $16,065,000) (or
the Foreign Currency Equivalent of any currency which the Borrower may borrow
under the Credit Agreement) or, if less, the aggregate unpaid principal amount
of all Revolving Loans made by the Lender pursuant to the Credit
Agreement.  A notation indicating all
Revolving Loans made by the Lender pursuant to the Credit Agreement and
payments on account of the principal of such Revolving Loans may, from time to
time, be made by the holder hereof on the grid attached to this note (this “Note”).  Unless defined herein or the context
otherwise requires, terms used herein have the meanings provided in the Credit
Agreement.

 

The unpaid principal
amount of this Note from time to time outstanding shall bear interest as
provided in Section 3.3.1 of the Credit Agreement.  All payments of principal of and interest on
this Note shall be payable in lawful currency of the United States of America
(or the other currency borrowed) to the account designated by the Agent in same
day or immediately available funds.

 

This Note is one of the
Notes referred to in, and evidences indebtedness incurred in respect of the
Revolving Loans under, the Credit Agreement, to which reference is made for a
description of any security for this Note and for a statement of the terms and
conditions on which the Borrower is permitted and required to make prepayments
of principal of the indebtedness evidenced by this Note and on which such
indebtedness may be declared to be immediately due and payable.

 

Exhibit A-1

Page 1 of 3

 

THIS NOTE HAS BEEN DELIVERED IN NEW YORK, NEW YORK AND
SHALL  BE DEEMED TO BE A CONTRACT MADE
UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK.

 

	
   

  	
  McCORMICK & COMPANY,

  INCORPORATED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ 
  Christopher J. Kurtzman

  
	
   

  	
  Title: 

  	
  Vice President &
  Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/  W. G. Carpenter

  
	
   

  	
  Title:

  	
  Assistant Secretary

  
						

 

Exhibit A-1

Page 2 of 3

 

	
  Date

  	
   

  	
  Amount of

  Loans and

  Currency

  	
   

  	
  Alternate
  Base

  Rate

  	
   

  	
  LIBO Rate

  	
   

  	
  Last Day
  of

  Applicable

  Interest Period

  	
   

  	
  Amount of

  Principal

  Payment

  	
   

  	
  Outstanding

  Principal

  Balance

  	
   

  	
  Notation

  Made By

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Exhibit A-1

Page 3 of 3

 

REVOLVING LOAN NOTE

 

	
  U.S.  $12,847,500

  	
   

  	
  June 19,
  2001

  

 

FOR VALUE RECEIVED, the undersigned, McCORMICK &
COMPANY, INCORPORATED, a Maryland corporation (the “Borrower”), promises
to pay to the order of MELLON BANK, N.A. (the “Lender”) on the Maturity
Date (as such term in defined in the 364-Day Credit Agreement, dated as of
June 19, 2001 (as amended or modified from time to time, the “Credit
Agreement”)), among the Borrower, Wachovia, N.A., as the administrative
agent (the “Agent”), and the various financial institutions (including
the Lender) as are, or may become parties thereto, the aggregate unpaid
principal amount of all Revolving Loans made by the Lender to the Borrower from
time to time pursuant to the Credit Agreement, the principal sum of TWELVE
MILLION EIGHT HUNDRED FORTY-SEVEN THOUSAND FIVE HUNDRED AND 00/100 UNITED
STATES DOLLARS (U.S. $12,847,500) (or the Foreign Currency Equivalent of any
currency which the Borrower may borrow under the Credit Agreement) or, if less,
the aggregate unpaid principal amount of all Revolving Loans made by the Lender
pursuant to the Credit Agreement.  A
notation indicating all Revolving Loans made by the Lender pursuant to the
Credit Agreement and payments on account of the principal of such Revolving
Loans may, from time to time, be made by the holder hereof on the grid attached
to this note (this “Note”). 
Unless defined herein or the context otherwise requires, terms used
herein have the meanings provided in the Credit Agreement.

 

The unpaid principal amount of this Note from time to
time outstanding shall bear interest as provided in Section 3.3.1
of the Credit Agreement.  All payments
of principal of and interest on this Note shall be payable in lawful currency
of the United States of America (or the other currency borrowed) to the account
designated by the Agent in same day or immediately available funds.

 

This Note is one of the Notes referred to in, and
evidences indebtedness incurred in respect of the Revolving Loans under, the
Credit Agreement, to which reference is made for a description of any security
for this Note and for a statement of the terms and conditions on which the
Borrower is permitted and required to make prepayments of principal of the
indebtedness evidenced by this Note and on which such indebtedness may be
declared to be immediately due and payable.

 

Exhibit A-1

Page 1 of 3

 

THIS NOTE HAS BEEN DELIVERED IN NEW YORK, NEW YORK AND
SHALL  BE DEEMED TO BE A CONTRACT MADE
UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK.

 

	
   

  	
  McCORMICK &
  COMPANY,

  INCORPORATED

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/  Christopher J. Kurtzman

  
	
   

  	
  Title: 

  	
  Vice President &
  Treasurer

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/  W. G. Carpenter

  
	
   

  	
  Title:

  	
  Assistant
  Secretary

  
						

 

Exhibit A-1

Page 2 of 3

 

	
  Date

  	
   

  	
  Amount of

  Loans and

  Currency

  	
   

  	
  Alternate
  Base

  Rate

  	
   

  	
  LIBO Rate

  	
   

  	
  Last Day
  of

  Applicable 

  Interest Period

  	
   

  	
  Amount of

  Principal

  Payment

  	
   

  	
  Outstanding

  Principal

  Balance

  	
   

  	
  Notation

  Made By

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Exhibit A-1

Page 3 of 3

 

FORM OF COMPETITIVE BID LOAN NOTE

 

	
  U.S.
  $225,000,000

  	
   

  	
  June    ,
  2001

  

 

FOR VALUE RECEIVED, the
undersigned, McCORMICK & COMPANY, INCORPORATED, a Maryland corporation (the
“Borrower”), promises to pay to the order of
                                       
(the “Lender”) on the earlier of (i) each Competitive Bid Loan Maturity
Date (as such term is defined in that certain 364-Day Credit Agreement, dated
as of June 19, 2001 (as amended or modified from time to time, the “Credit
Agreement”), among the Borrower, Wachovia, N.A., as administrative agent
(the “Agent”), and the various financial institutions, including the
Lender, as are, or may from time to time become parties thereto), the aggregate
unpaid principal amount of all Competitive Bid Loans made by the Lender to the
Borrower pursuant to Section 2.3 of the Credit Agreement to which
such Competitive Bid Loan Maturity Date applies and (ii) the Maturity Date (as
defined in the Credit Agreement), the principal sum of TWO HUNDRED TWENTY-FIVE
MILLION UNITED STATES DOLLARS (U.S. DOLLARS (U.S. $225,000,000) (or the Foreign
Currency Equivalent of any currency which the Borrower may borrow under the
Credit Agreement) or, if less, the unpaid principal amount of all Competitive
Bid Loans made by the Lender to the Borrower from time to time pursuant to Section 2.3
of the Credit Agreement.  A notation
indicating all Competitive Bid Loans made by the Lender pursuant to the Credit
Agreement and all payments on account of the principal of such Loans may, from
time to time, be made by the holder hereof on the grid attached to this note
(this “Note”).  Unless otherwise
defined herein or the context otherwise requires, terms used herein have the
meanings provided in the Credit Agreement.

 

The unpaid principal amount of
this Note from time to time outstanding shall bear interest as provided in Section 3.3.1
of the Credit Agreement.  All payments
of principal of and interest on this Note shall be payable in lawful currency
of the United States of America (or the other currency borrowed) to the account
designated by the Agent in same day or immediately available funds.

 

This Note is one of the Notes
referred to in, and evidences indebtedness incurred in respect of Competitive
Bid Loans under, the Credit Agreement, to which reference is made for a
description of any security for this Note and for a statement of the terms and
conditions on which the Borrower is permitted and required to make prepayments
of principal of the indebtedness evidenced by this Note and on which such
indebtedness may be declared to be immediately due and payable.

 

THIS NOTE HAS BEEN DELIVERED IN NEW
YORK, NEW YORK AND SHALL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY
THE INTERNAL LAWS OF THE STATE OF NEW YORK.

 

Exhibit A-2

Page 1 of 3

 

	
   

  	
  McCORMICK
  & COMPANY, INCORPORATED      

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
				

 

Exhibit A-2

Page 2 of 3

 

	
  Date

  	
   

  	
  Amount of

  Loan

  	
   

  	
  Competitive  

  Bid Loan

  Maturity

  Date

  	
   

  	
  Competitive  

  Bid Loan

  Interest  

  Payment

  Date

  	
   

  	
  Amount  

  of

  Interest  

  Payment

  	
   

  	
  Amount

  of

  Principal

  Payment

  	
   

  	
  Outstanding

  Principal

  Balance

  	
   

  	
  Notation

  Made By

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Exhibit A-2

Page 3 of 3

 

FORM OF SWING LINE NOTE

 

	
  $15,000,000

  	
   

  	
  June    ,
  2001

  

 

FOR VALUE RECEIVED, the undersigned, McCORMICK &
COMPANY, INCORPORATED, a Maryland corporation (the “Borrower”), hereby
promises to pay to the order of WACHOVIA, N.A. (“Swing Line Lender”), on
the date when due in accordance with the Credit Agreement referred to below,
the aggregate principal amount of each Swing Line Loan from time to time made
by the Swing Line Lender to the Borrower under that certain Revolving Credit
Agreement, dated as of June 19, 2001 (as amended, restated, extended,
supplemented or otherwise modified in writing from time to time, the “Credit
Agreement;” the terms defined therein being used herein as therein
defined), among the Borrower, the Lenders from time to time party thereto, and
Wachovia, N.A., as administrative agent and Swing Line Lender.

 

The Borrower promises to pay interest on the unpaid
principal amount of each Swing Line Loan from the date of such Swing Line Loan
until such principal amount is paid in full, at such interest rates and at such
times as provided in the Credit Agreement.

 

All payments of principal and interest shall be made
to the Swing Line Lender in Dollars in immediately available funds at its
Lending Office.

 

If any amount is not paid in full when due hereunder,
such unpaid amount shall bear interest, to be paid upon demand, from the due
date thereof until the date of actual payment (and before as well as after
judgment) computed at the per annum rate set forth in the Credit Agreement.

 

This Note is the Swing Line Note referred to in the
Credit Agreement, is entitled to the benefits thereof and is subject to
prepayment in whole or in part as provided therein.  Upon the occurrence of one or more of the Events of Default
specified in the Credit Agreement, all amounts then remaining unpaid on this
Note shall become, or may be declared to be, immediately due and payable all as
provided in the Credit Agreement.  Swing
Line Loans made by the Swing Line Lender shall be evidenced by one or more loan
accounts or records maintained by Swing Line Lender in the ordinary course of
business.  The Swing Line Lender may
also attach schedules to this Note and endorse thereon the date, amount and
maturity of the Swing Line Loans and payments with respect thereto.

 

The Borrower, for itself, its successors and assigns,
hereby waives diligence, presentment, protest and demand and notice of protest,
demand, dishonor and non-payment of this Note.

 

Exhibit A-3

Page 1 of 2

 

THIS NOTE HAS BEEN DELIVERED IN NEW
YORK, NEW YORK AND SHALL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY
THE INTERNAL LAWS OF THE STATE OF NEW YORK.

 

	
   

  	
  McCORMICK &
  COMPANY, INCORPORATED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

Exhibit A-3

Page 2 of 2

 

EXHIBIT
B

EMPLOYEE BENEFIT PLANS

 

EXHIBIT B

 

7.
PENSION AND PROFIT SHARING PLANS

 

The Company’s pension
expense is as follows:

 

	
   

  	
   

  	
  United
  States

  	
   

  	
  International

  	
   

  
	
  (millions)

  	
   

  	
  2000

  	
   

  	
  1999

  	
   

  	
  1998

  	
   

  	
  2000

  	
   

  	
  1999

  	
   

  	
  1998

  	
   

  
	
  Defined benefit
  plans

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Service cost

  	
   

  	
  $

  	
  7.1

  	
   

  	
  $

  	
  7.4

  	
   

  	
  $

  	
  6.2

  	
   

  	
  $

  	
  2.7

  	
   

  	
  $

  	
  2.8

  	
   

  	
  $

  	
  2.7

  	
   

  
	
  Interest costs

  	
   

  	
  13.8

  	
   

  	
  12.7

  	
   

  	
  11.4

  	
   

  	
  3.3

  	
   

  	
  3.2

  	
   

  	
  3.2

  	
   

  
	
  Expected return
  on plan assets

  	
   

  	
  (15.5

  	
  )

  	
  (13.2

  	
  )

  	
  (11.2

  	
  )

  	
  (4.7

  	
  )

  	
  (5.2

  	
  )

  	
  (4.9

  	
  )

  
	
  Amortization of
  prior service costs

  	
   

  	
  .1

  	
   

  	
  .1

  	
   

  	
  .1

  	
   

  	
  .1

  	
   

  	
  .1

  	
   

  	
  .1

  	
   

  
	
  Amortization of
  transition assets

  	
   

  	
  .2

  	
   

  	
  (.6

  	
  )

  	
  (.5

  	
  )

  	
  (.1

  	
  )

  	
  (.1

  	
  )

  	
  (.1

  	
  )

  
	
  Curtailment loss

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  .2

  	
   

  	
  —

  	
   

  
	
  Recognized net
  actuarial loss (gain)

  	
   

  	
  1.3

  	
   

  	
  3.3

  	
   

  	
  1.6

  	
   

  	
  —

  	
   

  	
  (.1

  	
  )

  	
  (.3

  	
  )

  
	
  Other retirement
  plans

  	
   

  	
  —

  	
   

  	
  .1

  	
   

  	
  .2

  	
   

  	
  .5

  	
   

  	
  .7

  	
   

  	
  .8

  	
   

  
	
   

  	
   

  	
  $

  	
  7.0

  	
   

  	
  $

  	
  9.8

  	
   

  	
  $

  	
  7.8

  	
   

  	
  $

  	
  1.8

  	
   

  	
  $

  	
  1.6

  	
   

  	
  $

  	
  1.5

  	
   

  

 

The Company’s U.S. pension plans held .5 million shares, with a fair
value of $17.9 million, of the Company’s stock at November 30, 2000.
Dividends paid on these shares in 2000 were $.4 million.

Rollforwards of the benefit obligation, fair value of
plan assets and a reconciliation of the pension plans’ funded status at
September 30, the measurement date, follow:

 

	
   

  	
   

  	
  United
  States

  	
   

  	
  International

  	
   

  
	
  (millions)

  	
   

  	
  2000

  	
   

  	
  1999

  	
   

  	
  2000

  	
   

  	
  1999

  	
   

  
	
  Change in
  benefit obligation

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Beginning of the
  year

  	
   

  	
  $

  	
  176.5

  	
   

  	
  $

  	
  185.5

  	
   

  	
  $

  	
  58.9

  	
   

  	
  $

  	
  49.8

  	
   

  
	
  Service cost

  	
   

  	
  7.1

  	
   

  	
  7.4

  	
   

  	
  2.7

  	
   

  	
  2.8

  	
   

  
	
  Interest costs

  	
   

  	
  13.8

  	
   

  	
  12.7

  	
   

  	
  3.3

  	
   

  	
  3.2

  	
   

  
	
  Employee
  contributions

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  1.2

  	
   

  	
  1.1

  	
   

  
	
  Plan changes and
  other

  	
   

  	
  .6

  	
   

  	
  .3

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Curtailment

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  .4

  	
   

  
	
  Actuarial loss
  (gain)

  	
   

  	
  .6

  	
   

  	
  (17.7

  	
  )

  	
  .6

  	
   

  	
  4.2

  	
   

  
	
  Benefits paid

  	
   

  	
  (11.7

  	
  )

  	
  (11.7

  	
  )

  	
  (2.1

  	
  )

  	
  (2.2

  	
  )

  
	
  Foreign currency
  impact

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  (5.6

  	
  )

  	
  (.4

  	
  )

  
	
  End of the year

  	
   

  	
  $

  	
  186.9

  	
   

  	
  $

  	
  176.5

  	
   

  	
  $

  	
  59.0

  	
   

  	
  $

  	
  58.9

  	
   

  
	
  Change in fair
  value of plan assets

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Beginning of the
  year

  	
   

  	
  $

  	
  169.0

  	
   

  	
  $

  	
  141.2

  	
   

  	
  $

  	
  60.7

  	
   

  	
  $

  	
  57.9

  	
   

  
	
  Actual return on
  plan assets

  	
   

  	
  16.6

  	
   

  	
  16.9

  	
   

  	
  10.5

  	
   

  	
  4.4

  	
   

  
	
  Transfer

  	
   

  	
  —

  	
   

  	
  .4

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Employer
  contributions

  	
   

  	
  9.2

  	
   

  	
  22.2

  	
   

  	
  1.1

  	
   

  	
  —

  	
   

  
	
  Employee
  contributions

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  1.2

  	
   

  	
  1.1

  	
   

  
	
  Benefits paid

  	
   

  	
  (11.7

  	
  )

  	
  (11.7

  	
  )

  	
  (2.1

  	
  )

  	
  (2.2

  	
  )

  
	
  Foreign currency
  impact

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  (5.8

  	
  )

  	
  (.5

  	
  )

  
	
  End of the year

  	
   

  	
  $

  	
  183.1

  	
   

  	
  $

  	
  169.0

  	
   

  	
  $

  	
  65.6

  	
   

  	
  $

  	
  60.7

  	
   

  
	
  Reconciliation
  of funded status

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Funded status

  	
   

  	
  $

  	
  (3.9

  	
  )

  	
  $

  	
  (7.5

  	
  )

  	
  $

  	
  6.6

  	
   

  	
  $

  	
  1.8

  	
   

  
	
  Unrecognized net
  actuarial loss (gain)

  	
   

  	
  24.6

  	
   

  	
  26.2

  	
   

  	
  (7.6

  	
  )

  	
  (2.9

  	
  )

  
	
  Unrecognized
  prior service cost

  	
   

  	
  .2

  	
   

  	
  .3

  	
   

  	
  .5

  	
   

  	
  .7

  	
   

  
	
  Unrecognized
  transition asset (liability)

  	
   

  	
  .5

  	
   

  	
  .6

  	
   

  	
  (.3

  	
  )

  	
  (.4

  	
  )

  
	
  Employer
  contribution

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  .3

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
  $

  	
  21.4

  	
   

  	
  $

  	
  19.6

  	
   

  	
  $

  	
  (.5

  	
  )

  	
  $

  	
  (.8

  	
  )

  

 

                Amounts recognized in the Consolidated Balance Sheet
consist of the following:

 

	
   

  	
   

  	
  United
  States

  	
   

  	
  International

  	
   

  
	
  (millions)

  	
   

  	
  2000

  	
   

  	
  1999

  	
   

  	
  2000

  	
   

  	
  1999

  	
   

  
	
  Prepaid pension
  cost

  	
   

  	
  $

  	
  21.4

  	
   

  	
  $

  	
  19.6

  	
   

  	
  $

  	
  .5

  	
   

  	
  $

  	
  .4

  	
   

  
	
  Accrued pension
  liability

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  (1.0

  	
  )

  	
  (1.2

  	
  )

  
	
   

  	
   

  	
  $

  	
  21.4

  	
   

  	
  $

  	
  19.6

  	
   

  	
  $

  	
  (.5

  	
  )

  	
  $

  	
  (.8

  	
  )

  

 

The accumulated benefit obligation for the U.S.
pension plans was $152.4 million and $144.5 million as of September 30,
2000 and 1999, respectively.

 

	
   

  	
   

  	
  United
  States

  	
   

  	
  International

  	
   

  
	
  (millions)

  	
   

  	
  2000

  	
   

  	
  1999

  	
   

  	
  2000

  	
   

  	
  1999

  	
   

  
	
  Significant
  assumptions

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Discount rate

  	
   

  	
  8.0

  	
  %

  	
  8.0

  	
  %

  	
  6.0-6.5

  	
  %

  	
  6.0-6.5

  	
  %

  
	
  Salary scale

  	
   

  	
  4.5

  	
  %

  	
  4.5

  	
  %

  	
  3.5-4.0

  	
  %

  	
  3.5-4.0

  	
  %

  
	
  Expected return
  on plan assets

  	
   

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  8.5

  	
  %

  	
  8.5

  	
  %

  

 

 

Cumulative
effect of an accounting change

In 1999, the Company changed its actuarial method of calculating the
market-related value of plan assets used in determining the expected
return-on-asset component of annual pension expense. This modification resulted
in a cumulative effect of accounting change credit of $4.8 million after-tax or
$.07 per share ($7.7 million before tax) recorded in the first quarter of 1999.
Under the previous method, all realized and unrealized gains and losses were
gradually included in the calculated market-related value of plan assets over a
five-year period. Under the new method, the total expected investment return,
which anticipates realized and unrealized gains and losses on plan assets, is
included in the calculated market-related value of plan assets each year. Only
the difference between total actual investment return, including realized and
unrealized gains and losses, and the expected investment return is gradually
included in the calculated market-related value of plan assets over a five-year
period.

Under the new actuarial method, the calculated
market-related value of plan assets more closely approximates fair value, while
still mitigating the effect of annual market value fluctuations. It also
reduces the growing difference between the fair value and calculated
market-related value of plan assets that has resulted from the recent
accumulation of unrecognized gains and losses. While this change better
represents the amount of ongoing pension expense, the new method did not have a
material impact on the Company’s results of operations in 2000 or 1999 and is
not expected to have a material impact in future years. The pro-forma impact of
applying the change to 1998 was not material.

 

Profit
Sharing Plan            

Profit sharing plan
expense was $5.8 million, $6.0 million and $4.2 million in 2000, 1999 and 1998,
respectively.

The Profit Sharing Plan held 2.2 million shares, with
a fair value of $83.1 million, of the Company’s stock at November 30,
2000. Dividends paid on these shares in 2000 were $1.7 million.

 

 

EXHIBIT B

 

8. OTHER
POSTRETIREMENT BENEFITS

 

The Company’s other
postretirement benefit expense follows:

 

	
  (millions)

  	
   

  	
  2000

  	
   

  	
  1999

  	
   

  	
  1998

  	
   

  
	
  Other postretirement benefits

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Service cost

  	
   

  	
  $

  	
  2.4

  	
   

  	
  $

  	
  2.6

  	
   

  	
  $

  	
  2.1

  	
   

  
	
  Interest cost

  	
   

  	
  5.3

  	
   

  	
  4.9

  	
   

  	
  4.4

  	
   

  
	
  Amortization of
  prior service cost

  	
   

  	
  (.7

  	
  )

  	
  (.1

  	
  )

  	
  (.1

  	
  )

  
	
  Accelerated
  recognition of prior unrecognized service cost

  	
   

  	
  (.6

  	
  )

  	
  —

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
  $

  	
  6.4

  	
   

  	
  $

  	
  7.4

  	
   

  	
  $

  	
  6.4

  	
   

  
												

 

Rollforwards of the benefit obligation, fair value of
plan assets and a reconciliation of the plan’s funded status at
November 30, the measurement date, follow:

 

	
  (millions)

  	
   

  	
  2000

  	
   

  	
  1999

  	
   

  
	
  Change in
  benefit obligation

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Beginning of the
  year

  	
   

  	
  $

  	
  65.1

  	
   

  	
  $

  	
  69.8

  	
   

  
	
  Service cost

  	
   

  	
  2.4

  	
   

  	
  2.6

  	
   

  
	
  Interest cost

  	
   

  	
  5.3

  	
   

  	
  4.9

  	
   

  
	
  Employee
  contributions

  	
   

  	
  1.7

  	
   

  	
  1.6

  	
   

  
	
  Plan changes

  	
   

  	
  —

  	
   

  	
  (6.1

  	
  )

  
	
  Actuarial loss
  (gain)

  	
   

  	
  2.0

  	
   

  	
  (2.7

  	
  )

  
	
  Benefits paid

  	
   

  	
  (5.2

  	
  )

  	
  (5.0

  	
  )

  
	
  End of the year

  	
   

  	
  $

  	
  71.3

  	
   

  	
  $

  	
  65.1

  	
   

  
	
  Change in fair
  value of plan assets

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Beginning of the
  year

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  
	
  Employer
  contributions

  	
   

  	
  3.5

  	
   

  	
  3.4

  	
   

  
	
  Employee
  contributions

  	
   

  	
  1.7

  	
   

  	
  1.6

  	
   

  
	
  Benefits paid

  	
   

  	
  (5.2

  	
  )

  	
  (5.0

  	
  )

  
	
  End of the year

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  
	
  Reconciliation
  of funded status

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Funded status

  	
   

  	
  $

  	
  (71.3

  	
  )

  	
  $

  	
  (65.1

  	
  )

  
	
  Unrecognized net
  actuarial loss (gain)

  	
   

  	
  1.8

  	
   

  	
  (.2

  	
  )

  
	
  Unrecognized
  prior service cost

  	
   

  	
  (6.0

  	
  )

  	
  (7.3

  	
  )

  
	
  Other
  postretirement benefit liability

  	
   

  	
  $

  	
  (75.5

  	
  )

  	
  $

  	
  (72.6

  	
  )

  
									

 

The assumed weighted-average discount rates were 8.0%
for 2000 and 1999, respectively.

The assumed annual rate of increase in the cost of
covered health care benefits is 7.65% for 2000. It is assumed to decrease
gradually to 5.25% in the year 2007 and remain at that level thereafter.
Changing the assumed health care cost trend would have the following effect:

 

	
  (millions)

  	
   

  	
  1-Percentage-

  Point Increase

  	
   

  	
  1-Percentage-

  Point Decrease

  	
   

  
	
  Effect on
  benefit obligation as of November 30, 2000

  	
   

  	
  $

  	
  8.0

  	
   

  	
  $

  	
  (7.0

  	
  )

  
	
  Effect on total
  of service and interest cost components in 2000

  	
   

  	
  $

  	
  1.0

  	
   

  	
  $

  	
  (.8

  	
  )

  

 

 

FORM OF
REVOLVING LOAN BORROWING REQUEST

 

Wachovia,
N.A., as Administrative Agent

191
Peachtree Street

Mail
Code:  GA-31273

Atlanta,
Georgia  30303

 

Attention:  Michael Adams

 

McCormick & Company, Incorporated

 

Gentlemen
and Ladies:

 

This Revolving Loan Borrowing
Request is delivered to you pursuant to clause (b) of Section 2.1
of the Revolving Credit Agreement, dated as of June 19, 2001 (as amended
or modified from time to time, the “Credit Agreement”), among McCormick
& Company, Incorporated, a Maryland corporation (the “Borrower”),
the Lenders now or hereafter parties thereto and Wachovia, N.A., as
administrative agent (the “Agent”). 
Unless otherwise defined herein or the context otherwise requires, terms
used herein have the meanings provided in the Credit Agreement.

 

The Borrower hereby requests
that a Revolving Loan Borrowing be made in the aggregate principal amount of
[$U.S.] [£] [DM] [¥] [Euro]
                                       
on
                                  ,
         as [a Base Rate Loan] [a LIBO
Rate Loan having an interest period of
           months].

 

The Borrower hereby certifies
and warrants that on the date the Revolving Loan Borrowing requested hereby is
made (both before and after giving effect to such Revolving Loan Borrowing);

 

(a)           the
representations and warranties set forth in Article VI of the
Credit Agreement are and will be true and correct as if then made pursuant to
Section 5.2.1 of the Credit Agreement;

 

(b)           no
Default or Event of Default has occurred and is continuing or will have occurred
and be continuing; and

 

(c)           the
aggregate amount of the requested Revolving Loan Borrowing and all other Loans
outstanding on the date of the requested Revolving Loan Borrowing does not and
will not exceed the Commitment Amount.

 

The undersigned hereby confirms
that the requested Revolving Loan Borrowing is to be made available to it in
accordance with Section 2.1 of the Credit Agreement.  If on the date of the Revolving Loan
Borrowing there are Swing Line Loans outstanding, then the proceeds of such Borrowing
shall be applied, first, to the payment in full of any such Swing Line
Loans, and second, to the Borrower as provided below in this Revolving
Loan Borrowing Request.

 

Exhibit B-1

Page 1 of 2

 

The Borrower agrees that if
prior to the time of the Borrowing requested hereby any matter certified to
herein by it will not be true and correct at such time as if then made, it will
immediately so notify the Agent.  Except
to the extent, if any, that prior to the time of the Revolving Loan Borrowing
requested hereby the Agent shall receive written notice to the contrary from
the Borrower, each matter certified to herein shall be deemed once again to be
certified an true and correct at the date of such Borrowing as if then made.

 

Subject to the above, please wire
transfer the proceeds of the Revolving Loan Borrowing to the following account
of the Borrower:  Account No.
                                        ,
(Name and address of depository bank).

 

The Borrower has caused this
Revolving Loan Borrowing Request to be executed and delivered, and the
certificate and warranties contained herein to be made, by its duly Authorized
Officer this            day
of                               ,
          .

 

	
   

  	
  McCORMICK
  & COMPANY, INCORPORATED

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Title:

  

 

Exhibit B-1

Page 2 of 2

 

FORM OF COMPETITIVE BID LOAN
BORROWING REQUEST

 

Wachovia,
N.A., as Administrative Agent

191
Peachtree Street

Mail
Code:  GA-31273

Atlanta,
Georgia  30303

 

Attention:  Michael Adams

 

McCormick & Company, Incorporated

 

Gentlemen
and Ladies:

 

This Competitive Bid Loan
Borrowing Request is delivered to you pursuant to clause (a) of Section 2.3
of the Revolving Credit Agreement, dated as of June 19, 2001 (as amended
or modified from time to time, the “Credit Agreement”), among McCormick
& Company, Incorporated, a Maryland corporation (the “Borrower”),
the Lenders now or hereafter parties thereto and Wachovia, N.A., as
administrative agent (the “Agent”). 
Unless otherwise defined herein or the context otherwise requires, terms
used herein have the meanings provided in the Credit Agreement.

 

The Borrower hereby proposes
that a Competitive Bid Loan Borrowing be made on the following terms:

 

A.            1.             Date
of Competitive Bid Loan

Borrowing:*
                    

 

2.             Amount of Competitive Bid Loan

Borrowing:** [U.S.$] [£] [DM] [¥] [Euro]

[Non-Major Alternate Currency]

 

 

3.             The Competitive Bid Loan will be based on a

[LIBO Rate Bid Margin] [Fixed Rate]

 

4.             Competitive Bid Loan Maturity Date for

repayment of such Competitive Bid Loan***

 

 

5.             Competitive Bid Loan Interest Payment

 

*              Must be at least five Business Days after the
delivery of this competitive Bid Loan Borrowing Request.

 

**           The amount shall be in a minimum principal amount
of $5,000,000 and in an integral multiple of $1,000,000.

 

***         Which maturity date may not be earlier than the
date occurring seven days after the date of such Competitive Bid Loan Borrowing
or later than the date occurring 183 days after the date of such Competitive
Bid Loan Borrowing.

 

Exhibit B-2

Page 1 of 3

 

Date(s):

 

****B.   1.             Date
of Competitive Bid Loan Borrowing:

 

 

2.             Amount of Competitive Bid Loan Borrowing:

[U.S.$] [£]  
[DM]   [¥]    [Euro]

[Non-Major Alternate Currency]

 

 

3.             The Competitive Bid Loan will be based on a

[LIBO Rate Bid Margin] [Fixed Rate]

 

4.             Competitive Bid Loan Maturity Date for

repayment of such Competitive Bid Loan:

 

 

5.             Competitive Bid Loan Interest Payment

Date(s):

 

C.            1.             Date
of Competitive Bid Loan Borrowing:

 

 

2.             Amount of Competitive Bid Loan Borrowing:

[U.S.$]  
[£]   [DM]   [¥]  
[Euro]

[Non-Major Alternate Currency]

 

 

3.             The Competitive Bid Loan will be based on a

[LIBO Rate Bid Margin] [Fixed Rate]

 

4.             Competitive Bid Loan Maturity Date for

repayment of such Competitive Bid Loan:

 

 

5.             Competitive Bid Loan Interest Payment

Date(s):

 

The Borrower hereby certifies
and warrants that on the date the Competitive Bid Loan Borrowing proposed
hereby is made (both before and after giving effect to such Borrowing):

 

(a)           the representative and warranties set forth in Article VI of
the Credit Agreement are and will be true and correct as if then made pursuant
to Section 5.2.1 of the Credit Agreement;

 

****       Insert if more than one
Competitive Bid Loan Borrowing is requested.

 

Exhibit B-2

Page 2 of 3

 

(b)           no Default or Event of Default has occurred and is continuing or will
have occurred and be continuing; and

 

(c)           the aggregate amount of the proposed Competitive Bid Loan Borrowing and
all other Loans outstanding after giving effect to such Competitive Bid Loan
(and any prepayments required pursuant to Section 2.3 of the Credit
Agreement) will not exceed the Commitment Amount.

 

The undersigned hereby confirms
that the proposed Competitive Bid Loan Borrowing is to be made available to it
in accordance with Section 2.3 of the Credit Agreement.

 

The Borrower agrees that if
prior to the time of the Competitive Bid Loan Borrowing requested hereby any
matter certified to herein by it will not be true and correct at such time as
if then made, it will immediately so notify the Agent.  Except to the extent, if any, that prior to
the time of the Competitive Bid Loan Borrowing proposed hereby the Agent shall
receive written notice to the contrary from the Borrower, each matter certified
to herein shall be deemed once again to be certified as true and correct at the
date of such Borrowing as if then made.

 

The Borrower has caused this
Competitive Bid Loan Borrowing Request to be executed and delivered, and the
certification and warranties contained herein to be made, by its duly
Authorized Officer this                     
day of
                              ,
          .

 

	
   

  	
  McCORMICK
  & COMPANY, INCORPORATED

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Title:

  

 

Exhibit B-2

Page 3 of 3

 

SWING LINE LOAN BORROWING REQUEST

 

Date:                      ,
          

 

	
  To:

  	
   

  	
  Wachovia, N.A., as
  Swing Line Lender

  
	
   

  	
   

  	
  Wachovia, N.A., as
  Administrative Agent

  
	
   

  	
   

  	
   

  
	
  Attn:

  	
   

  	
  Meg Beveridge

  
	
   

  	
   

  	
   

  
	
  Re:

  	
   

  	
  McCormick &
  Company, Incorporated

  

 

Ladies
and Gentlemen:

 

Reference is made to that
certain Revolving Credit Agreement, dated as of June 19, 2001 (as amended,
restated, extended, supplemented or otherwise modified in writing from time to
time, the “Agreement;” the terms defined therein being used herein as
therein defined), among McCormick & Company, Incorporated, a Maryland
corporation (the “Borrower”), the Lenders from time to time party
thereto, and Wachovia, N.A., as administrative agent and Swing Line Lender.

 

The undersigned hereby
requests a Swing Line Loan:

1.                             On                                                                                (a
Business Day).

2.                             In
the amount of $                                        .

 

The Swing Line Borrowing
requested herein complies with the requirements of the proviso to the first
sentence of Section 2.4(a) of the Agreement.

 

	
   

  	
  MCCORMICK &
  COMPANY, INCORPORATED

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

Exhibit B-3

Page 1 of 1

 

EXHIBIT C

EXISTING LIENS

 

(as of 5/31/01, in thousands)

 

 

 

	
   

  	
   

  	
  Current

  	
   

  	
  Long Term

  	
   

  	
  Total

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Capital
  Lease Liability

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  McCormick
  Foods

  Australia

  	
   

  	
  55

  	
   

  	
  98

  	
   

  	
  153

  	
   

  	
  Autos

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  McCormick
  Pesa

  	
   

  	
  34

  	
   

  	
  352

  	
   

  	
  692

  	
   

  	
  Computers

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Industrial
  Revenue Bonds

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tubed
  Products

  (Oxnard, California)

  	
   

  	
  0

  	
   

  	
  3,050

  	
   

  	
  3,050

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Mortgages

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (none
  outstanding)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

FORM OF INVITATION FOR BID LOAN QUOTES

 

	
  [NAME
  OF LENDER]

  	
   

  	
  [DATE]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Attention:  

  	
   

  	
   

  

 

Invitation for Bid Loan Quotes to

McCormick & Company, Incorporated (the “Borrower”)

 

Pursuant to clause (b) of
Section 2.3 of the Revolving Credit Agreement dated as of June 19,
2001 (as amended or modified from time to time, the “Credit Agreement”)
(unless otherwise defined herein or the context otherwise requires, terms used
herein have the meanings provided in the Credit Agreement)), among McCormick
& Company, Incorporated, a Maryland corporation (the “Borrower”),
Wachovia, N.A., as administrative agent (the “Agent”) and the Lenders
now or hereafter parties thereto, we are pleased on behalf of the Borrower to
invite you to submit Bid Loan Quotes to the Borrower for the following proposed
Competitive Bid Loan(s):

 

*1.           Date of
Proposed Competitive Bid Loan: 
                              
          ,
          .

 

2.             Principal
Amount

[U.S.$]
[£] [DM] [¥] [Euro] [Non-Major Alternate Currency]
                                        .

 

3.             The
Competitive Bid Loan Maturity Date will be
                              
          ,
          .

 

4.             The
Competitive Bid Loan Interest Payment Date will be
                              
          ,
          .

 

PLEASE RESPOND TO THIS INVITATION BY NO
LATER THAN [                    ] (NEW YORK
CITY TIME) ON                                           ,           .

 

	
   

  	
  Wachovia,
  N.A., as Administrative Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Title:

  

 

*              Information to be
repeated if multiple Competitive Bid Loans have been made in respect of a
single Competitive Bid Loan Borrowing Request.

 

Exhibit C-1

Page 1 of 1

 

FORM OF COMPETITIVE BID LOAN OFFER

 

Date: 
                                        ,
          

 

Wachovia,
N.A., as Administrative Agent

191
Peachtree Street

Mail
Code:  GA-31273

Atlanta,
Georgia  30303

 

Attention:  Michael Adams

 

McCormick & Company, Incorporated

 

Gentlemen:

 

This Competitive Bid Loan Offer
in delivered to you pursuant to clause (c) of Section 2.3 of
the Revolving Credit Agreement, dated as of June 19, 2001 (as amended or
modified from time to time, the “Credit Agreement”), among McCormick
& Company, Incorporated, a Maryland corporation (the “Borrower”),
Wachovia, N.A., as administrative agent (the “Agent”), and the Lenders
now or hereafter parties thereto. 
Unless otherwise defined herein or the context otherwise requires, terms
used herein have the meanings provided in the Credit Agreement.

 

The
undersigned Lender hereby makes a Competitive Bid Loan offer in response to the
Competitive Bid Loan Borrowing Request made by the Borrower on
[                              ,
          ], and in that
connection, sets forth the terms on which such Competitive Bid Loan Offer is
made:

 

	
  1*.

  	
   

  	
  Date
  of Competitive Bid Loan:

  	
   

  	
                                
            ,
            

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Principal
  amount of

  	
   

  	
   

  
	
   

  	
   

  	
  Competitive
  Bid Loan

  	
   

  	
                                
            

  
	
   

  	
   

  	
  [U.S.$]
  [£] [DM] [¥] [Euro]

  	
   

  	
   

  
	
   

  	
   

  	
  [Non-Major
  Alternate

  	
   

  	
   

  
	
   

  	
   

  	
  Currency]

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Competitive
  Bid Loan

  	
   

  	
   

  
	
   

  	
   

  	
  Maturity
  will be

  	
   

  	
                                
            ,           **

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Competitive
  Bid Loan Interest

  	
   

  	
   

  
	
   

  	
   

  	
  Payment
  Date(s) will be

  	
   

  	
                                
            ,           ***

  
	
   

  	
   

  	
   

  	
   

  	
                                
            ,           

  

 

*              Information
to be repeated if multiple Competitive Bid Loans have been made in respect of a
single Competitive Bid Loan Borrowing Request.

 

**           Insert
the appropriate date specified in the Competitive Bid Loan Borrowing Request
described in the second paragraph hereof.

 

***         Insert the
appropriate date(s) specified in the Competitive Bid Loan Borrowing Request
described in the second paragraph hereof.

 

Exhibit C-2

Page 1 of 2

 

	
  5.

  	
   

  	
  Competitive
  Bid Rate:

  	
   

  	
                                    
  % per annum

  
	
   

  	
   

  	
  [LIBO
  Rate Bid Margin]

  	
   

  	
   

  
	
   

  	
   

  	
  [Fixed
  Rate]

  	
   

  	
   

  

 

We understand and agree that the
offer(s) set forth above, subject to the satisfaction of the applicable
conditions set forth in the Credit Agreement irrevocably obligates us to make
the Competitive Bid Loan(s) for which any offer(s) are accepted, in whole or in
part.

 

	
   

  	
  [NAME
  OF LENDER]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   Name:

  
	
   

  	
   

  	
   Title:

  

 

Exhibit C-2

Page 2 of 2

 

FORM OF COMPETITIVE BID LOAN
ACCEPTANCE

 

Wachovia,
N.A., as Administrative Agent

191
Peachtree Street

Mail
Code:  GA-31273

Atlanta,
Georgia  30303

 

Attention:  Michael Adams

 

McCormick & Company, Incorporated

 

Gentlemen
and Ladies:

 

This Competitive Bid Loan
Acceptance is delivered to you pursuant to clause (e) of Section 2.3
of the Revolving Credit Agreement, dated as of June 19, 2001 (as amended
or modified from time to time, the “Credit Agreement”), among McCormick
& Company, Incorporated a Maryland corporation (the “Borrower”),
Wachovia, N.A., as administrative agent (the “Agent”) and the Lenders
now or hereafter parties thereto. 
Unless otherwise defined herein or the context otherwise requires, terms
used herein have the meanings provided in the Credit Agreement.

 

*The Borrower hereby accepts the
Competitive Bid Loan Offer, dated
                              ,
          , made by [NAME OF
LENDER] on the following terms:

 

1.             Date of Competitive Bid Loan:**                                    
          ,           

 

2.             Principal amount of Competitive Bid Loan

[U.S.$]
[ £ ] [DM] [ ¥ ] [Euro]

[Non-Major
Alternate Currency]                                           

 

3.             Competitive Bid Loan Maturity Date:                                   

 

4.             Competitive Bid Rate:

[LIBO
Rate Bid Margin Rate
          % per annum]

[Fixed
Rate           % per annum]

 

5.             Competitive Bid Loan Interest Payment

Date(s):
**                                                          
          ,
          

                              
          ,           

 

*              Repeat
this paragraph (and information contained therein) for each Lender whose
Competitive Bid Loan Offer is accepted by the Borrower or for multiple
Competitive Bid Loans.

 

**           Terms
must conform to the Competitive Bid Loan Borrowing Request referred to in the
Competitive Bid Loan Offer relating to such Borrowing.

 

Exhibit C-3

Page 1 of 2

 

We undersigned hereby confirms
that it accepted such Competitive Bid Loan Offer in accordance with clause
(e)(ii) of Section 2.3 of the Credit Agreement.

 

The Borrower hereby certifies
and warrants that on the date the Competitive Bid Loan Borrowing proposed
hereby is made (both before and after giving effect to such Borrowing):

 

(a)           the representative and warranties set forth in Article VI of
the Credit Agreement are and will be true and correct as if then made pursuant
to Section 5.2.1 of the Credit Agreement;

 

(b)           no Default or Event of Default has occurred and is continuing or will
have occurred and be continuing; and

 

(c)           the aggregate amount of the proposed Competitive Bid Loan Borrowing and
all other Loans outstanding after giving effect to such Competitive Bid Loan
(and any prepayments required pursuant to Section 2.3 of the Credit
Agreement) will not exceed the Commitment Amount.

 

Please wire transfer the
proceeds of the Competitive Bid Loan(s) to the following account of the
Borrower: Account No.
                              
[name and address of depository bank].

 

The Borrower has caused this
Competitive Bid Loan Acceptance to be executed and delivered, and the
certification and warranties contained herein to be made, by its duly
Authorized Officer this
           day of
                              ,
          .

 

 

	
   

  	
  McCORMICK
  & COMPANY, INCORPORATED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   Title:

  

 

Exhibit C-3

Page 2 of 2

 

FORM OF COMPETITIVE BID LOAN
BORROWING NOTICE

 

[Date]

 

Wachovia,
N.A., as Administrative Agent

191
Peachtree Street

Mail
Code:  GA-31273

Atlanta,
Georgia  30303

 

Attention:  Michael Adams

 

McCormick & Company, Incorporated

 

Gentlemen
and Ladies:

 

This Competitive Bid Loan
Borrowing Notice is delivered to you pursuant to clause (f) of Section 2.3
of the Revolving Credit Agreement, dated as of June 19, 2001 (as amended
or modified from time to time, the “Credit Agreement”), among McCormick
& Company, Incorporated, a Maryland corporation (the “Borrower”),
Wachovia, N.A., as administrative agent (the “Agent”), and the Lenders
now or hereafter parties thereto. 
Unless otherwise defined herein or the context otherwise requires, terms
used herein have the meanings provided in the Credit Agreement.

 

The Borrower delivered to the
Agent a Competitive Bid Loan Borrowing Request on
[                              ,
          ].  In that connection, a Competitive Bid Loan
Borrowing was made on
                              ,
           (the “Competitive
Bid Loan Borrowing Date”) with the following terms:

 

	
  *1.

  	
   

  	
  Principal amount of
  Competitive Bid Loan Borrowing:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [Name of Lender]

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [U.S.$] [ £ ] [ DM ] [ ¥ ] [Euro]

  	
   

  	
   

  
	
   

  	
   

  	
  [Non-Major Alternate Currency]

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [Name of Lender]

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [U.S.$] [ £ ] [ DM ] [ ¥ ] [Euro]

  	
   

  	
   

  
	
   

  	
   

  	
  [Non-Major Alternate Currency]

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Amount
  of, and Competitive Bid Rate for [LIBO Rate Bid Margin] [Fixed Rate], each
  Competitive Bid Loan in such Competitive Bid Loan Borrowing:

  	
   

  	
   

  

 

*              Information
to be repeated if multiple Competitive Bid Loans have been made in respect of a
single Competitive Bid Loan Borrowing Request.

 

Exhibit C-4

Page 1 of 2

 

	
   

  	
   

  	
  [U.S.$] [ £ ] [ DM ] [ ¥ ] [Euro]

  	
   

  	
   

  
	
   

  	
   

  	
  [Non-Major Alternate Currency]

  	
   

  	
            
  at            %

  
	
   

  	
   

  	
  per annum in respect of Competitive

  	
   

  	
   

  
	
   

  	
   

  	
  Bid Loan made by [Name of Lender]

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [U.S.$] [ £ ] [ DM ] [ ¥ ] [Euro]

  	
   

  	
   

  
	
   

  	
   

  	
  [Non-Major Alternate Currency]

  	
   

  	
            
  at            %

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  per annum in respect of competitive

  	
   

  	
   

  
	
   

  	
   

  	
  Bid Loan made by [Name of Lender]

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Competitive Bid Loan Maturity Date:

  	
   

  	
                                ,
            

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Competitive Bid Loan Interest

  	
   

  	
                                ,
            

  
	
   

  	
   

  	
  Payment Date(s):

  	
   

  	
                                ,
            

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Competitive Bid Outstanding

  	
   

  	
   

  
	
   

  	
   

  	
  Balance

  	
   

  	
                                         **

  

 

The Borrower hereby confirms to
the Agent that the Competitive Bid Loan Offer received by the Borrower in
connection with the above-described Competitive Bid Loan Borrowing Request were
accepted or rejected in accordance with clause (e) of Section 2.3
of the Credit Agreement.

 

 

	
   

  	
  McCORMICK
  & COMPANY, INCORPORATED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   Name:

  
	
   

  	
   

  	
   Title:

  

 

**           Insert
the aggregate principal amount of all outstanding Competitive Bid Loans
immediately after giving effect to the Competitive Bid Loan Borrowing.

 

Exhibit C-4

Page 2 of 2

 

FORM OF LENDER ASSIGNMENT AGREEMENT

 

[Date]

 

TO:         McCormick & Company, Incorporated

18
Loveton Circle

Sparks,
Maryland 21152

Attention:
Treasurer

 

To:          Wachovia, N.A., as Administrative Agent

191
Peachtree Street

Mail
Code:  GA-31273

Atlanta,
Georgia  30303

Attention:  Michael Adams

 

McCormick & Company, Incorporated

 

Gentlemen
and Ladies:

 

We refer to clause (d) of
Section 10.11.1 of the Revolving Credit Agreement, dated as of
June 19, 2001 (as amended from time to time, the “Credit Agreement”),
among McCormick & Company, Incorporated, a Maryland corporation (the “Borrower”),
the various financial institutions as are, or shall from time to time become,
parties thereto (the “Lenders”) and Wachovia, N.A., as administrative
agent (the “Agent”).  Unless
otherwise defined herein or the context otherwise requires, terms used herein
have the meanings provided in the Credit Agreement.

 

This Agreement is delivered to
you pursuant to clause (d) of Section 10.11.1 of the Credit
Agreement and also constitutes notice to each of you, pursuant to clause (c)
of Section 10.11.1 of the Credit Agreement, of the assignment and
delegation to
                              
(the “Assignee”) of
          % of the Revolving
Loans and           % of the
Competitive Bid Loans of
                              
(the “Assignor”) outstanding under the Credit Agreement on the date
hereof.  After giving effect to the
foregoing assignment and delegation, the Assignor’s and the Assignee’s
Percentages for the purposes of the Credit Agreement are set forth opposite
such Person’s name on the signature pages hereof.

 

[Add paragraph dealing with accrued
interest and fees with respect to Loans assigned.]

 

The Assignee hereby acknowledges
and confirms that it has received a copy of the Credit Agreement and the
exhibits related thereto, together with copies of the documents which were
required to be delivered under the Credit Agreement as a condition to the
making of the Loans thereunder. The Assignee further confirms and agrees that
in becoming a Lender and in making its Loans under the Credit Agreement, such
actions have and will be made without recourse to, or representation or
warranty by the Agent.

 

Exhibit D

Page 1 of 3

 

Except as otherwise provided in
the Credit Agreement, effective as of the date of acceptance hereof by the
Agent:

 

(a)           the Assignee

 

(i)            shall
be deemed automatically to have become a party to the Credit Agreement, have
all the rights and obligations of a “Lender” under the Credit Agreement and the
other Loan Documents as if it were an original signatory thereto to the extent
specified in the second paragraph hereof; and

 

(ii)           agrees
to be bound by the terms and conditions set forth in the Credit Agreement and
the other Loan Documents as if it were an original signatory thereto; and

 

(b)           the
Assignor shall be released from its obligations under the Credit Agreement and
the other Loan Documents to the extent specified in the second paragraph hereof
but shall continue to be entitled to the benefits of the indemnity provisions
set forth in the Credit Agreement for the period prior to such acceptance.

 

The Assignor and the Assignee
hereby agree that the [Assignor] [Assignee] will pay to the Agent the
processing fee referred to in Section 10.11.1 of the Credit
Agreement upon the delivery hereof.

 

The Assignee hereby advises each
of you of the following administrative details with respect to the assigned
Loans and requests the Agent to acknowledge receipt of this document:

 

(A)          Address
for Notices:

 

Institution
Name:

 

Attention:

 

Domestic
Office:

 

Telephone:

 

Facsimile:

 

LIBOR
Office:

 

Telephone:

 

Facsimile:

 

(B)           Payment
Instructions:

 

The Assignee agrees to furnish
the tax form required by the last sentence of Section 4.6 (if so
required) of the Credit Agreement no later than the date of acceptance hereof
by the Agent.

 

Exhibit D

Page 2 of 3

 

This Agreement may be executed
by the Assignor and Assignee in separate counterparts, each of which when so
executed and delivered shall be deemed to be an original and all of which taken
together shall constitute one and the same Agreement.

 

	
  Adjusted
  Percentage

  	
  [ASSIGNOR]

  
	
   

  	
   

  
	
            %

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
  Percentage

  	
  [ASSIGNEE]

  
	
   

  	
   

  
	
            %

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
  Accepted
  and Acknowledged

  this            day of
                      ,
            

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  McCORMICK
  & COMPANY, INCORPORATED

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  WACHOVIA,
  N.A., as Administrative Agent

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

Exhibit D

Page 3 of 3

 

FORM OF COMPLIANCE CERTIFICATE

 

To each of the financial
institutions party 

to the Credit Agreement
hereinafter 

referred to and Wachovia,
N.A., 

as Administrative Agent
for the Lenders

 

Re:          McCormick
& Company, Incorporated 

 

Ladies and Gentlemen:

 

This Compliance Certificate is being delivered
pursuant to the Revolving Credit Agreement, dated as of June 19, 2001 (as
amended or modified from time to time, the “Credit Agreement”), among
McCormick & Company, Incorporated, a Maryland corporation (the “Borrower”),
the various financial institutions as are or may, from time to time, become
parties thereto (the “Lenders”) and Wachovia, N.A., as administrative
agent for the Lenders (the “Agent”). 
Capitalized terms used herein without definition shall have the meanings
assigned to such terms in Section 1.1 of the Credit Agreement.  All computations performed herein shall
conform to the method of computation required by the Credit Agreement.

 

The Borrower hereby certifies, represents and warrants
that as of                               ,
          
(the “Computation Date”):

 

1.             Indebtedness of the
Subsidiaries did not exceed           
% of Consolidated Net Tangible Assets (as computed on Attachment 1
hereto).

 

Under Section 2.2
of the Credit Agreement, Indebtedness of Subsidiaries may not exceed 25% of
Consolidated Net Tangible Assets.

 

2.             The sum of (a)
Indebtedness of the Borrower and its Subsidiaries secured by Liens described in
clauses (b), (c) and (k) of Section 7.2.3 of the Credit Agreement
(excluding liens described in clauses (d) through (j) of Section 7.2.3)
and (b) the Attributable Value of all Sale-Leaseback Transactions entered into
by the Borrower and its Subsidiaries in the aggregate does not exceed           
% of Consolidated Net Tangible Assets (as computed on Attachment 1
hereto).

 

Section 7.2.3
(k) of the Credit Agreement does not permit the sum of (i) Indebtedness of the
Borrower and its Subsidiaries secured by Liens described in clauses (b), (c)
and (k) of Section 7.2.3 (excluding Liens described in clauses
(d)  thru (j) of Section 7.2.3) and (ii) the Attributable
Value of all Sale-Leaseback Transactions entered into by the Borrower and its
Subsidiaries in the aggregate to exceed 15% of Consolidated Net Tangible
Assets.

 

3.             The aggregate book
value of all sales of assets or stock or liquidations of Subsidiaries do not,
during the most recent period of 12 consecutive months, exceed           
% of Consolidated Net Tangible Assets as at the end of the Borrower’s
immediately preceding Fiscal Year (as computed on Attachment 1 hereto).

 

Exhibit E

Page 1 of 3

 

Section 7.2.4
of the Credit Agreement prohibits sales of assets or stock to anyone other than
the Borrower or wholly-owned Subsidiaries if the aggregate book value of such
sales or liquidation of Subsidiaries during the most recent period of 12
consecutive months would exceed 20% of Consolidated Net Tangible Assets as at
the end of the Borrower’s immediately preceding fiscal year.

 

4.             The ratio of EBIT to
Interest Expense was                     :
1:00 (as computed on Attachment 1 hereto).

 

The minimum ratio of EBIT
to Interest Expense permitted pursuant to Section 7.2.5 of the
Credit Agreement is 2.50:1.00.

 

5.             No Default or Event
of Default has occurred and is continuing.

 

IN WITNESS WHEREOF, the Borrower has caused this
Certificate to be executed and delivered by its duly Authorized Officer on this
          
day of                               ,
          .

 

	
   

  	
  McCORMICK
  & COMPANY,

  INCORPORATED

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Title:

  

 

Exhibit E

Page 2 of 3

 

ATTACHMENT 1

 

	
  1.

  	
   

  	
  Indebtedness
  of Subsidiaries (Section 7.2.2).

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  a.

  	
   

  	
  Total Amount of
  Subsidiary Indebtedness

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  b.

  	
   

  	
  Amount of Consolidated
  Net Tangible Assets

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  c.

  	
   

  	
  Subsidiary Indebtedness
  is equal to the following percentage of Consolidated Net Tangible Assets

  	
   

  	
   

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Liens (Section 7.2.3)

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  a.

  	
   

  	
  Indebtedness of the
  Borrower and its Subsidiaries (other than intercompany debt) secured by Liens
  described in clauses (b), (c) and (k) of Section 7.2.3
  (excluding Liens described in clauses (d) through (j) of Section 7.2.3

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  b.

  	
   

  	
  Attributable Value of
  Sale-Leaseback Transactions of the Borrower and its Subsidiaries in the
  aggregate

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (Sum of Items a. and
  b.)

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  c.

  	
   

  	
  Amount of Consolidated
  Net Tangible Assets

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  d.

  	
   

  	
  The sum of Items a. and
  b. is equal to the following percentage of Item c.

  	
   

  	
   

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Sale of Assets (Section 7.2.4)

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  a.

  	
   

  	
  The aggregate book
  value of sales of assets or stock or liquidation of Subsidiaries by the
  Borrower and its Subsidiaries during the immediately preceding 12 months 

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  b.

  	
   

  	
  Consolidated Net
  Tangible Assets as at the end of the Borrower’s immediately preceding Fiscal
  Year

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  c.

  	
   

  	
  Item a. is equal to the
  following percentage of Item b.

  	
   

  	
   

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  EBIT to Interest
  Expense Ratio (Section 7.2.5)

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  a.

  	
   

  	
  Net Income (excluding
  any one-time non-recurring charges)

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  b.

  	
   

  	
  Interest Expense 

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  c.

  	
   

  	
  Charges for federal,
  state, local and foreign income taxes

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Total for EBIT

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  :1.00

  
	
   

  	
   

  	
  d.

  	
   

  	
  EBIT to Interest
  Expense ratio (EBIT divided by Interest Expense)

  	
   

  	
   

  	
   

  
										

 

Exhibit E

Page 3 of 3

 

FORM OF CONTINUATION/CONVERSION NOTICE

 

Wachovia,
N.A., as Administrative Agent

191
Peachtree Street

Mail
Code:  GA-31273

Atlanta,
Georgia  30303

Attention:  Michael Adams

 

Re:          McCormick &
Company, Incorporated

 

Gentlemen and Ladies:

 

This Continuation/Conversion Notice is delivered to
you pursuant to Section 2.5 of the Revolving Credit Agreement,
dated as of June 19, 2001 (as amended or modified from time to time, the “Credit
Agreement”), among McCormick & Company, Incorporated, a Maryland
corporation (the “Borrower”), the various financial institutions from
time to time parties thereto (the “Lenders”) and Wachovia, N.A., as
administrative agent (the “Agent”). 
Unless otherwise defined herein or the context otherwise requires, terms
used herein have the meanings provided in the Credit Agreement.

 

The Borrower hereby requests that on
                                      ,
                     .

 

(1)           [U.S.$] [£] [DM] [¥]
[Euro]
                                 
of the presently outstanding principal amount of the Loans originally made on
                          ,
            [and
[U.S.$] [£] [DM] [¥] [Euro] of the presently outstanding principal amount of
the Loans originally made on
                          ,
            ],

 

(2)           and all presently being
maintained as(1) [Base Rate Loans] [LIBO Rate Loans denominated in Dollars]
[LIBO Rate Loans denominated in an Alternate Currency],

 

(3)           be [converted into]
[continued as],

 

(4)           (2)[LIBO Rate Loans
denominated in Dollars having an Interest Period of
               months]
[LIBO Rate Loans denominated in an Alternate Currency having an Interest Period
of                months]
[Base Rate Loans](3).

 

(1)  Select appropriate interest
rate option.

(2)  Insert appropriate interest
rate option.

(3)  Dollars only.

 

Exhibit F

Page 1 of 2

 

The Borrower hereby:

 

(a)           certifies and warrants
that no Default has occurred and is continuing; and

 

(b)           agrees that if prior to
the time of such continuation or conversion any matter certified to herein by
it will not be true and correct at such time as if then made, it will
immediately so notify the Agent.

 

Except to the extent, if
any, that prior to the time of the continuation or conversion requested hereby
the Agent shall receive written notice to the contrary from the Borrower, each
matter certified to herein shall be deemed to be certified at the date of such
continuation or conversion as if then made.

 

The Borrower has caused this Continuation/Conversion
Notice to be executed and delivered, and the certification and warranties
contained herein to be made, by its Authorized Officer this
            day of
                              ,
         .

 

	
   

  	
  McCORMICK &
  COMPANY,

  INCORPORATED

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Title:

  
				

 

Exhibit F

Page 2 of 2

 

FORM
OF OPINION OF COUNSEL TO THE BORROWER

 

To each of the Lenders
party

to the Credit Agreement referred

to below, and Wachovia, N.A.

as Administrative Agent and

Swing Line Lender

[Date]

 

Ladies and Gentlemen:

 

I am General Counsel of McCormick & Company,
Incorporated (the “Borrower”), a Maryland corporation, and have acted as
counsel in connection with the execution and delivery of that certain Revolving
Credit Agreement, dated as of June 19, 2001 (the “Credit Agreement”),
among the Borrower, Wachovia, N.A., as administrative agent (the “Agent”), and
the various financial institutions parties thereto (the “Lenders”).  This opinion letter is delivered to you
pursuant to Section 5.1.7 of the Credit Agreement.  Capitalized terms used herein that are not
defined herein have the respective specified meanings in the Credit Agreement.

 

In rendering the opinions set forth below, I or a
member of my staff have examined executed originals of the Credit Agreement and
the Notes (collectively, the “Subject Documents”); the Articles of
Incorporation of the Borrower and all amendments thereto (the “Charter”); the
Bylaws of the Borrower and all amendments thereto (the “Bylaws”); and a
certificate issued by the Maryland Department of Assessments and Taxation,
dated June     , 2001, attesting to the continued
corporate existence and good standing of the Borrower in the State of
Maryland.  In addition, I or a member of
my staff have examined originals or photostatic or certified copies of certain
of the corporate records and documents of the Borrower and its Subsidiaries,
copies of public documents, certificates of officers of the Borrower and public
officials, and such other documents as I have deemed necessary and appropriate
as a basis for the opinions hereinafter set forth.

 

In my examination, I have assumed the genuineness of
all signatures (other than those of the Borrower), the legal capacity of
natural persons, the authenticity of all corporate records, documents,
instruments and certificates submitted to us as originals and the conformity to
authentic original corporate records, documents, instruments and certificates
of all corporate records, documents instruments and certificates submitted to
us as certified, conformed or photostatic copies.  As to questions of fact material to my opinions, I have relied
upon representations and warranties of the parties in the Subject Documents and
the other agreements and documents contemplated therein, and on certificates of
officers of the Borrower (including those delivered pursuant to the Credit
Agreement) and of public officials.

 

I have further assumed that you have the power and
authority and have taken the corporate action necessary to execute and deliver
the Credit Agreement and to hold the Notes and that no approvals, waivers,
filings, notices or consents, governmental or non-governmental, are required
for the valid execution, delivery and performance by you of the Credit
Agreement or

 

Exhibit G

Page 1 of 3

 

to hold the Notes, and that the Credit Agreement executed by you
constitutes your legal, valid and binding obligation.

 

Based upon the foregoing and subject to the
qualifications set forth above and hereinafter, I am of the opinion that:

 

1.             The
Borrower is a corporation duly organized, validly existing and in good standing
under the laws of the State of Maryland.

 

2.             The
execution, delivery and performance by the Borrower of the Subject Documents
are within the Borrower’s corporate powers, have been duly authorized by all
necessary corporate action, and do not (i) contravene the Charter or the
By-laws, (ii) violate any Federal or Maryland law, rule or regulation
applicable to the Borrower (including, without limitation, Regulations U and X
of the Board of Governors of the Federal Reserve System, insofar as the
proceeds of the Loans are used solely for the purposes set forth in, and in
accordance with the provisions of, the Credit Agreement) or (iii) result in any
breach or violation of, or constitute a default under, any agreement or
instrument set forth on the attached certificate of the Borrower.  The Subject Documents have been duly
executed and delivered on behalf of the Borrower.

 

3.             Each
of the Subject Documents has been duly executed by the Borrower and constitutes
the legal, valid and binding obligation of the Borrower, enforceable against
the Borrower in accordance with its terms.

 

4.             No
authorization or approval or other action by, and no notice to or filing with,
any Federal or Maryland governmental authority or regulatory body (other than
any applicable securities law filings) is required on behalf of the Borrower
for the due execution, delivery or performance by the Borrower of any of the
Subject Documents.

 

5.             The
Borrower is not an “investment company” within the meaning of the Investment
Company Act of 1940, as amended, or 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 Company Act of 1935, as amended.

 

6.             There
is no pending or, to the best of my knowledge, threatened litigation, action,
proceeding or labor controversy affecting the Borrower or any of its
properties, business, assets or revenues which is likely to materially
adversely affect the financial condition or operations of the Borrower and its
Subsidiaries taken as a whole or which purports to affect the legality,
validity or enforceability of any of the Subject Documents to which the Borrower
is a party.

 

7.             The
New York governing law clauses of the Subject Documents, subjecting such
Subject Documents to the law of the State of New York, are valid under the laws
of the State of Maryland.

 

8.             Under
the law of the State of Maryland, the laws of the State of New York will be
applied to the Subject Documents, except to the extent that any term of such
documents or any provision of the law of the State of New York applicable to
such documents violates an

 

Exhibit G

Page 2 of 3

 

important public policy of the State of Maryland.  We have no reason to believe that any such
term violates an important public policy of the State of Maryland.

 

The foregoing opinions are subject to the following
additional qualifications:

 

(a)           The opinions expressed
herein are limited to the laws and regulations of the United States of America
and the State of Maryland.

 

(b)           My opinions regarding
the enforceability of the Subject Documents are limited by bankruptcy,
insolvency, reorganization, moratorium, fraudulent conveyance or similar laws
or decisions affecting the enforcement of debtors’ obligations and creditors’
rights generally, and by general principles of equity and public policy.  My opinions are also subject to the effect
of certain laws and judicial decisions which may limit the enforceability of
certain provisions of the Subject Documents, although such limitations do not,
in my judgment, make the remedies provided therein (taken as a whole)
inadequate for the practical realization of the benefits afforded thereby.

 

The opinions expressed herein are solely for your
benefit in connection with the performance of the Subject Documents, and
without my express prior written consent, this opinion letter may not be
circulated or furnished to or relied upon by any other person.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Robert W. Skelton

  	
   

  
	
   

  	
  Vice President, General
  Counsel

  & Secretary

  

 

Exhibit G

Page 3 of 3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00057-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00057-of-00352.parquet"}]]