Document:

Unassociated Document

    
      
        EXECUTION
COPY

      

       

      AGREEMENT

       

      DATED 6 AUGUST, 2010

       

       

      €200,000,000

       

      MULTICURRENCY
REVOLVING CREDIT FACILITY

       

      FOR

      

      U.
S. Steel Košice, s.r.o.

       

      ARRANGED
BY

       

      COMMERZBANK
Aktiengesellschaft, pobočka zahraničnej banky, Bratislava,

       

      ING
Bank N.V., pobočka zahraničnej banky,

       

      and

       

      Slovenská
sporiteľňa, a.s.

       

      - as
Mandated Lead Arrangers -

       

      AND

       

      Citibank
Europe plc, pobočka zahraničnej banky

       

      and

       

      HSBC Bank plc,
pobočka zahraničnej banky

       

      - as Lead
Arrangers -

       

      

       

      WITH

       

      ING
Bank N.V., pobočka zahraničnej banky

       

      as
Facility Agent

       

       

      
        
          	
                   

                   

                  Allen & Overy Bratislava, s.r.o.

                   

                
	
                  0040772-0000059
      BT:601674.7

                

        

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        CONTENTS

         

        
          	
                  Clause

                	
                   

                	
                  Page

                
	 	 	 
	
                  1.

                	
                  Interpretation

                	
                  2

                
	
                  2.

                	
                  Facility

                	
                  15

                
	
                  3.

                	
                  Purpose

                	
                  15

                
	
                  4.

                	
                  Conditions
      precedent

                	
                  15

                
	
                  5.

                	
                  Utilisation

                	
                  16

                
	
                  6.

                	
                  Optional
      Currencies

                	
                  17

                
	
                  7.

                	
                  Repayment

                	
                  19

                
	
                  8.

                	
                  Prepayment
      and cancellation

                	
                  19

                
	
                  9.

                	
                  Interest

                	
                  24

                
	
                  10.

                	
                  Terms

                	
                  25

                
	
                  11.

                	
                  Market
      disruption

                	
                  25

                
	
                  12.

                	
                  Taxes

                	
                  26

                
	
                  13.

                	
                  Increased
      Costs

                	
                  28

                
	
                  14.

                	
                  Mitigation

                	
                  28

                
	
                  15.

                	
                  Payments

                	
                  29

                
	
                  16.

                	
                  Representations
      and warranties

                	
                  31

                
	
                  17.

                	
                  Information
      covenants

                	
                  35

                
	
                  18.

                	
                  General
      covenants

                	
                  38

                
	
                  19.

                	
                  Default

                	
                  40

                
	
                  20.

                	
                  The
      Administrative Parties

                	
                  42

                
	
                  21.

                	
                  Evidence
      and calculations

                	
                  47

                
	
                  22.

                	
                  Fees

                	
                  48

                
	
                  23.

                	
                  Indemnities
      and Break Costs

                	
                  48

                
	
                  24.

                	
                  Expenses

                	
                  50

                
	
                  25.

                	
                  Amendments
      and waivers

                	
                  50

                
	
                  26.

                	
                  Changes
      to the Parties

                	
                  51

                
	
                  27.

                	
                  Disclosure
      of information

                	
                  55

                
	
                  28.

                	
                  Set-off

                	
                  56

                
	
                  29.

                	
                  Pro
      Rata Sharing

                	
                  56

                
	
                  30.

                	
                  Severability

                	
                  58

                
	
                  31.

                	
                  Counterparts

                	
                  58

                
	
                  32.

                	
                  Notices

                	
                  58

                
	
                  33.

                	
                  Language

                	
                  59

                
	
                  34.

                	
                  Governing
      law

                	
                  59

                
	
                  35.

                	
                  Enforcement

                	
                  59

                
	 
      	 
      	 
      
	
                  Schedules

                	 
      	 
      
	 	 	 
	
                  1.

                	
                  Original
      Parties

                	
                  62

                
	
                  2.

                	
                  Conditions
      precedent documents

                	
                  63

                
	
                  3.

                	
                  Form
      of Request

                	
                  64

                
	
                  4.

                	
                  Form
      of Transfer Certificate

                	
                  65

                
	
                  5.

                	
                  Form
      of Legal opinion of legal adviser to the Company

                	
                  67

                
	
                  6.

                	
                  Form
      of English legal opinion

                	
                  72

                
	
                  7.

                	
                  Form
      of Slovak legal opinion

                	
                  74

                
	 
      	 
      	 
      
	
                  Signatories

                	
                   

                	
                  79

                

        

      

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

     

    THIS AGREEMENT is dated 6
August, 2010

     

    BETWEEN:

     

    
      	
              (1)

            	
              U. S. Steel Košice,
      s.r.o. with its registered seat at Vstupný areál U. S. Steel,
      Košice 044 54, Slovak Republic, registered in the Commercial Register of
      District Court Košice I, insert No. 11711/V, section Sro, company
      identification number (IČO):
      36 199 222 as borrower (the Company);

            

    

     

    
      	
              (2)

            	
              (a)

            	
              COMMERZBANK
      Aktiengesellschaft, with its registered seat at Kaiserplatz 16, 603
      11 Frankfurt am Main, Federal Republic Germany, entered in the Commercial
      Register at the District Court Frankfurt am Main under Entry HR B 32000,
      acting through its organisational unit COMMERZBANK
      Aktiengesellschaft, pobočka zahraničnej banky, Bratislava, with its
      seat at Bratislava 1, Rajská 15/A, Postcode 811 08, Ident. No.: 30847737,
      entered in the Commercial Register of the District Court Bratislava I,
      Sec. Po, Insert No. 1121/B;

            

    

     

    
      	
               
      

            	
              (b)

            	
              ING Bank N.V., with its
      registered seat at Bijlmerplein 888, 1102MG Amsterdam, The Netherlands, a
      company limited by shares, registered in the Trade Register of Chamber of
      Commerce and Industry for Amsterdam under file No. 33031431 acting through
      its organisational unit ING
      Bank N.V., pobočka zahraničnej banky, Jesenského 4/C, 811 02
      Bratislava, Slovak Republic, Identification No. 30 844 754, registered in
      the Commercial register maintained by the District Court of Bratislava I,
      in Section Po, inserted file No. 130/B;
and

            

    

     

    
      	
               
      

            	
              (c)

            	
              Slovenská
      sporiteľňa, a.s., with its registered seat at Tomášikova 48, 832 37
      Bratislava, Slovak Republic, Identification No. 00 151 653, registered in
      the Commercial register maintained by the District Court of Bratislava I,
      in Section Sa, insert No. 601/B

            

    

     

    
      	
               
      

            	
              as
      mandated lead arrangers (in this capacity the Mandated Lead Arrangers);

            

    

     

    
      	
              (3)

            	
              (a)

            	
              Citibank Europe plc,
      with its registered seat at North Wall Quay 1, Dublin 1, Republic of
      Ireland, registered with the Companies Registration Office under No.
      132781, acting through its organisational unit Citibank Europe plc,
      pobočka zahraničnej banky, with its registered office at Mlynské
      nivy 43, 825 01 Bratislava, Slovak Republic, Identification No. 36 861
      260, registered in the Commercial register maintained by the District
      Court of Bratislava I, in Section Po, insert No. 1662/B;
    and

            

    

     

    
      	
               
      

            	
              (b)

            	
              HSBC Bank plc, with its
      registered office at 8 Canada Square, London, E14 5HQ, United Kingdom of
      Great Britain and Northern Ireland, registered by the Companies House
      under number 14259 and acting through its organisational unit HSBC Bank
      plc, pobočka zahraničnej banky, with its
      registered office at Europeum Business Center, Suché Mýto 1, 811 03
      Bratislava, Identification number (IČO): 35 929 979, registered in the
      Commercial Register kept by the District Court Bratislava I, section:
      Po, insert No.: 1258/B

            

    

     

    as lead
arrangers (in this capacity the Lead Arrangers, and together with
the Mandated Lead Arrangers the Arrangers);

     

    
      	
              (4)

            	
              THE FINANCIAL
      INSTITUTIONS listed in Schedule 1 (Original Parties) as
      original lenders (the Original Lenders);
      and

            

    

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    
      	
              (5)

            	
              ING Bank N.V., with its
      registered seat at Bijlmerplein 888, 1102MG Amsterdam, The Netherlands, a
      company limited by shares, registered in the Trade Register of Chamber of
      Commerce and Industry for Amsterdam under file No. 33031431 acting through
      its organisational unit ING
      Bank N.V., pobočka zahraničnej banky, Jesenského 4/C, 811 02
      Bratislava, Slovak Republic, Identification No. 30 844 754, registered in
      the Commercial register maintained by the District Court of Bratislava I,
      in Section Po, inserted file No. 130/B as the agent of the Finance Parties
      (in this capacity the Facility
      Agent).

            

    

     

    IT IS AGREED as
follows:

     

    
      	
              1.

            	
              INTERPRETATION

            

    

     

    
      	
              1.1

            	
              Definitions

            

    

     

    In this
Agreement:

     

    Administrative Party means the
Arrangers or the Facility Agent.

     

    Affiliate means, in relation
to any person, a Subsidiary or a Holding Company of that person or any other
Subsidiary of that Holding Company.

     

    Assets mean a person's present
and future business, undertaking, properties, assets and revenues (including
without limitation , any uncalled capital).

     

    Availability Period means the
period from and including the date of this Agreement until (but excluding) the
Final Maturity Date.

     

    Break Costs means the amount
(if any) that a Lender is entitled to receive under Clause 23.3 (Break Costs).

     

    Business Day means a day
(other than a Saturday or a Sunday) on which banks are open for general business
in London, in New York and in Bratislava and:

     

    
      	
               
      

            	
              (a)

            	
              if
      on that day a payment in or a purchase of a currency (other than euro) is
      to be made, the principal financial centre of the country of that
      currency; or

            

    

     

    
      	
               
      

            	
              (b)

            	
              if
      on that day a payment in or a purchase of euro is to be made, which is
      also a TARGET Day.

            

    

     

    Canadian Dollar means the lawful
currency for the time being of Canada.

     

    Central Bank means the
National Bank of Slovakia.

     

    Centre of Main Interests means
the "centre of main interests" of the Company for the purposes of the Council
Regulation (EC) No 1346/2000 of 29th May, 2000.

     

    Commitment means:

     

    
      	
               
      

            	
              (a)

            	
              for
      an Original Lender, the amount set opposite its name in Schedule 1 (Original Parties) under
      the heading "Commitments" and the
      amount of any other Commitment it acquires;
and

            

    

     

    
      	
               
      

            	
              (b)

            	
              for
      any other Lender, the amount of any Commitment it
  acquires,

            

    

     

    to the
extent not cancelled, transferred or reduced under this Agreement.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    Czech Koruna means the lawful
currency for the time being of the Czech Republic.

     

    Default means:

     

    
      	
               
      

            	
              (a)

            	
              an
      Event of Default; or

            

    

     

    
      	
               
      

            	
              (b)

            	
              an
      event or circumstance which, with the giving of notice, lapse of time or
      fulfilment of any other applicable condition (or any combination of the
      foregoing) set out in Clause 19 (Default), would
      constitute an Event of Default.

            

    

     

    Defaulting Lender means any
Lender:

     

    
      	
               
      

            	
              (a)

            	
              that
      has failed to make its share in a Loan available within five Business Days
      from the Utilisation Date of that Loan or has notified the Facility Agent
      that it will not make its share in a Loan available by the Utilisation
      Date of that Loan, in accordance with Clause 5.3 (Advance of Loan);
      or

            

    

     

    
      	
               
      

            	
              (b)

            	
              that
      is the subject of bankruptcy, insolvency, or similar
      proceedings,

            

    

     

    unless,
in case of paragraph (a) of this definition:

     

    
      	
               
      

            	
              (i)

            	
              the
      Lender's failure to pay is caused
by:

            

    

     

    
      	
               
      

            	
              (A)

            	
              a
      material disruption to those payment or communications systems or to those
      financial markets which are, in each case, required to operate in order
      for payments to be made in connection with the Facility (or otherwise in
      order for the transactions contemplated by the Finance Documents to be
      carried out) which disruption is not caused by, and is beyond the control
      of, the Lender; or

            

    

     

    
      	
               
      

            	
              (B)

            	
              the
      occurrence of any other event that results in a disruption (of a technical
      or systems-related nature) to the treasury or payments operations of the
      Lender preventing that Lender:

            

    

     

    
      	
               
      

            	
              I.

            	
              from
      performing its payment obligations under the Finance Documents;
      or

            

    

     

    
      	
               
      

            	
              II.

            	
              from
      communicating with other Parties in accordance with the terms of the
      Finance Documents,

            

    

     

    and which
(in either such case) is not caused by, and is beyond the control of, the Lender
whose operations are disrupted;

     

    and the
respective payment is made within 10 Business Days of its due date;
or

     

    
      	
               
      

            	
              (ii)

            	
              the
      Lender is disputing in good faith whether it is legally obliged to make
      the payment in question.

            

    

     

    Downgraded Lender means a
Lender:

     

    
      	
               
      

            	
              (a)

            	
              that:

            

    

     

    
      	
               
      

            	
              (i)

            	
              is
      rated by any of: (A) Moody’s Investors Service Limited; (B) Standard &
      Poor’s Rating Services; (C) Fitch Ratings Ltd; or (D) other
      internationally recognised rating agency;
and

            

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      
        	
              	
                (ii)

              	
                does
      not have or ceases to have a rating of at least: (A) Baa3 (or equivalent),
      if rated by Moody’s Investors Service Limited; (B) BBB- (or equivalent),
      if rated by Standard & Poor’s Rating Services; (C) BBB- or
      equivalent), if rated by Fitch Ratings Ltd; or (D) investment grade
      rating, if rated by another internationally recognised rating
      agency,

              

      

    

     

    whereas,
for the avoidance of doubt, if a Lender is not rated by any agency specified in
paragraph (i) above, it shall not be considered a Downgraded Lender pursuant to
this paragraph (a) until it receives a rating non-compliant with paragraph (ii)
above; or

     

    
      	
               
      

            	
              (b)

            	
              is
      a Subsidiary of an entity, which is subject to bankruptcy, insolvency, or
      similar proceedings.

            

    

     

    ERISA means the United States
Employee Retirement Income Security Act of 1974, to which the following
definitions apply:

     

    - Code means the United States
Internal Revenue Code of 1986.

     

    - ERISA Affiliate means any person
treated as a single employer with the Company for the purpose of
section 414 of the Code.

     

    - Plan means an employee
benefit plan as defined in section 3(3) of ERISA:

     

    
      	
               
      

            	
              (a)

            	
              maintained
      by the Company or any ERISA Affiliate;
or

            

    

     

    
      	
               
      

            	
              (b)

            	
              to
      which the Company or any ERISA Affiliate is required to make any payment
      or contribution.

            

    

     

    - Reportable Event
means:

     

    
      	
               
      

            	
              (c)

            	
              an
      event specified as such in section 4043 of ERISA or any related
      regulation, other than an event in relation to which the requirement to
      give notice of that event is waived by any regulation;
  or

            

    

     

    
      	
               
      

            	
              (d)

            	
              a
      failure to meet the minimum funding standard under section 412 of the
      Code or section 302 of ERISA, whether or not there has been any
      waiver of notice or waiver of the minimum funding standard under
      section 412 of the Code.

            

    

     

    Establishment means any place
of operations where the Company (as applicable) carries on non-transitory
economic activity with human means and goods, for the purposes of the Council
Regulation (EC) No 1346/2000 of 29th May, 2000.

     

    EURIBOR means for a Term of
any Loan or overdue amount denominated in euro:

     

    
      	
               
      

            	
              (a)

            	
              the
      applicable Screen Rate; or

            

    

     

    
      	
               
      

            	
              (b)

            	
              if
      no Screen Rate is available for the Term of that Loan or overdue amount,
      the arithmetic mean (rounded upward to four decimal places) of the rates
      as supplied to the Facility Agent at its request quoted by the Reference
      Banks to leading banks in the European interbank
  market,

            

    

     

    as of
11.00 a.m. on the Rate Fixing Day for the offering of deposits in euro for
a period comparable to the Term of that Loan.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    euro or EUR or € means the single currency
of the Participating Member States.

     

    Event of Default means an
event specified as such in Clause 19 (Default).

     

    Existing Facility A means the
credit facility made available under the Existing Facility Agreement
A.

     

    Existing Facility B means the
credit facility made available under the Existing Facility Agreement
B.

     

    Existing Facility Agreement A means the facility
agreement on EUR 200,000,000 credit facility dated 2 July 2008 and entered into
between (inter alia)
the Company as borrower, COMMERZBANK Aktiengesellschaft, pobočka
zahraničnej banky, Bratislava, ING Bank N.V., pobočka zahraničnej banky and
Slovenská sporiteľňa, a.s. as mandated lead arrangers and lenders,
Citibank NA, Bahrain and HSBC Bank plc, pobočka
zahraničnej banky as lead arrangers, and ING Bank N.V., London Branch as
facility agent.

     

    Existing
Facility Agreement
B means the
facility agreement on EUR 40,000,000 credit facility dated 8 October 2009 and
entered into between (inter
alia) the
Company as borrower, Citibank Europe plc, pobočka zahraničnej banky, ING
Bank N.V., pobočka zahraničnej banky, and Slovenská
sporiteľňa, a.s. as arrangers
and Citibank Europe plc, pobočka zahraničnej banky as facility agent.

     

    Facility means the credit
facility made available under this Agreement.

     

    Facility Office means the
office(s) notified by a Lender to the Facility Agent:

     

    
      	
               
      

            	
              (a)

            	
              on
      or before the date it becomes a Lender;
or

            

    

     

    
      	
               
      

            	
              (b)

            	
              by
      not less than five Business Days'
notice,

            

    

     

    as the
office(s) through which it will perform its obligations under this
Agreement.

     

    Fee Letter means any letter
entered into by reference to this Agreement between one or more Administrative
Parties and the Company setting out the amount of certain fees referred to in
this Agreement.

     

    Final Maturity Date means the
third anniversary of the date of this Agreement.

     

    Finance Document
means:

     

    
      	
               
      

            	
              (a)

            	
              this
      Agreement;

            

    

     

    
      	
               
      

            	
              (b)

            	
              a
      Fee Letter;

            

    

     

    
      	
               
      

            	
              (c)

            	
              a
      Transfer Certificate; or

            

    

     

    
      	
               
      

            	
              (d)

            	
              any
      other document designated as such by the Facility Agent and the
      Company.

            

    

     

    Finance Party means a Lender
or an Administrative Party.

     

    Financial Indebtedness means,
without duplication, Indebtedness (whether being principal, premium, interest or
other amounts) for or in respect of:

     

    
      	
               
      

            	
              (a)

            	
              money
      borrowed;

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              (b)

            	
              liabilities
      under or in respect of any acceptance or acceptance
  credit;

            

    

     

    
      	
               
      

            	
              (c)

            	
              any
      notes, bonds, debentures, debenture stock, loan stock or other debt
      securities offered, issued or distributed whether by way of public offer,
      private placing, acquisition consideration or otherwise and whether issued
      for cash or in whole or in part for a consideration other than
      cash;

            

    

     

    
      	
               
      

            	
              (d)

            	
              any
      interest rate and/or currency swap, forward foreign exchange transaction,
      financial or commodity futures transaction, commodity swap or other
      derivative transaction (and, when calculating the value of any of the
      foregoing transactions, only the net amount of the marked to market value
      shall be taken into account, to the extent such netting is
      permitted);

            

    

     

    
      	
               
      

            	
              (e)

            	
              liabilities
      pursuant to any lease which are capitalised in accordance with USGAAP;
      or

            

    

     

    
      	
               
      

            	
              (f)

            	
              liabilities
      under any guarantee, indemnity or other assurance against financial loss
      given in relation to any of the
foregoing.

            

    

     

    Fixed Assets
means, in relation to the Group, those assets treated as Fixed Assets
(e.g. property, plant and equipment) for the purposes of the Latest
Accounts.

     

    Group means the Company and
its Subsidiaries.

     

    Holding Company of any other
person, means an entity in respect of which that other person is a
Subsidiary.

     

    IBOR means EURIBOR, LIBOR, or
PRIBOR.

     

    Increased Cost
means:

     

    
      	
               
      

            	
              (a)

            	
              an
      additional or increased cost;

            

    

     

    
      	
               
      

            	
              (b)

            	
              a
      reduction in the rate of return from a Facility or on a Finance Party's
      (or its Holding Company's) overall capital;
or

            

    

     

    
      	
               
      

            	
              (c)

            	
              a
      reduction of an amount due and payable under any Finance
      Document,

            

    

     

    that is
incurred or suffered by a Finance Party or its Holding Company but only to the
extent attributable to that Finance Party having entered into any Finance
Document or funding or performing its obligations under any Finance
Document.

     

    Indebtedness means any
obligation for the payment or repayment of money in whatever currency
denominated, whether as principal or as surety and whether present or future,
actual, deferred or contingent.

     

    Interest Payment Date has the
meaning given to it in Clause 9.2 (Payment of
Interest).

     

    Latest Accounts means the
audited consolidated financial statements of the Group last delivered to the
Facility Agent under Clause 17.2 (Financial
information).

     

    Lender means:

     

    
      	
               
      

            	
              (a)

            	
              an
      Original Lender; or

            

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              (b)

            	
              any
      person that becomes a Lender after the date of this
    Agreement.

            

    

     

    LIBOR means for a Term of any
Loan or overdue amount denominated in US Dollars or Canadian
Dollars:

     

    
      	
            	
              (a)

            	
              the
      applicable Screen Rate; or

            

    

     

    
      	
               
      

            	
              (b)

            	
              if
      no Screen Rate is available for US Dollars or Canadian Dollars (as
      applicable) or the Term of that Loan or overdue amount, the arithmetic
      mean (rounded upward to four decimal places) of the rates, as supplied to
      the Facility Agent at its request, quoted by the Reference Banks to
      leading banks in the London interbank
market,

            

    

     

    as of
noon on the Rate Fixing Day for the offering of deposits in US Dollars or
Canadian Dollars (as applicable) for a period comparable to the Term of that
Loan.

     

    Loan means, unless otherwise
stated in this Agreement, the principal amount of each borrowing under this
Agreement or the principal amount outstanding of that borrowing.

     

    Majority Lenders means, at any
time, Lenders:

     

    
      	
               
      

            	
              (a)

            	
              whose
      share in the outstanding Loans and whose undrawn Commitments then
      aggregate 662/3 per
      cent. or more of the aggregate of all the outstanding Loans and the
      undrawn Commitments of all the
Lenders;

            

    

     

    
      	
               
      

            	
              (b)

            	
              if
      there is no Loan then outstanding, whose undrawn Commitments then
      aggregate 662/3 per
      cent. or more of the Total Commitments;
or

            

    

     

    
      	
               
      

            	
              (c)

            	
              if
      there is no Loan then outstanding and the Total Commitments have been
      reduced to zero, whose Commitments aggregated 662/3 per
      cent. or more of the Total Commitments immediately before the
      reduction.

            

    

     

    Mandatory Cost means the cost
as reasonably determined by a Lender, imputed to that Lender of compliance
with:

     

    
      	
               
      

            	
              (a)

            	
              any
      banking supervision or other costs imposed by the Bank of England or the
      United Kingdom Financial Services Authority;
and

            

    

     

    
      	
               
      

            	
              (b)

            	
              any
      other applicable regulatory or central bank requirements relating to any
      Loan, including any reserve asset requirements of the European Central
      Bank or the Central Bank.

            

    

     

    Margin means 2.50 per cent.
per annum.

     

    Margin Regulations means
Regulations U and X issued by the Board of Governors of the United States
Federal Reserve System.

     

    Margin Stock has the meaning
given to it in the Margin Regulations.

     

    Maturity Date means the last
day of the Term of a Loan.

     

    Participating Member State
means a member state of the European Communities that adopts or has adopted the
euro as its lawful currency under the legislation of the European Community for
Economic Monetary Union.

     

    Party means a party to this
Agreement.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    Permitted Disposal means any
of the following:

     

    
      	
               
      

            	
              (a)

            	
              disposals
      of Assets in the ordinary course of trading at arms'
    length;

            

    

     

    
      	
               
      

            	
              (b)

            	
              disposals
      on normal commercial terms of obsolete Assets or Assets no longer used or
      useful in the Company’s business;

            

    

     

    
      	
               
      

            	
              (c)

            	
              payment
      of cash as consideration for the acquisition of any Asset on normal
      commercial terms;

            

    

     

    
      	
               
      

            	
              (d)

            	
              temporary
      application of funds not immediately required in the Company’s business
      for the purchase of investments or the realisation of such
      investments;

            

    

     

    
      	
               
      

            	
              (e)

            	
              exchange
      of Assets for other assets of a similar nature and value, or the sale of
      Assets on normal commercial terms for cash that is payable in full on
      completion of the sale and is to be, and is, applied toward the purchase
      of similar Assets within six
months;

            

    

     

    
      	
               
      

            	
              (f)

            	
              disposals
      of Assets located outside the
Republic;

            

    

     

    
      	
               
      

            	
              (g)

            	
              any
      disposal that the Facility Agent agrees in writing is a Permitted
      Disposal; and

            

    

     

    
      	
               
      

            	
              (h)

            	
              any
      disposal approved in writing by the Majority
  Lenders.

            

    

     

    Permitted Merger
means:

     

    
      	
               
      

            	
              (a)

            	
              a
      merger of any Subsidiary of the Company into the Company, such that the
      Company acquires all the assets and liabilities of such Subsidiary and the
      Company is the surviving legal entity, provided the Company's post-merger
      consolidated net worth equals or exceeds the immediately preceding
      pre-merger consolidated net worth of the Company and that Subsidiary as
      determined on the basis of accounting principles and practices consistent
      with the preparation of the Latest
Accounts;

            

    

     

    
      	
               
      

            	
              (b)

            	
              any
      other merger or corporate restructuring approved in advance in writing by
      the Facility Agent (acting on the instructions of the Majority
      Lenders);

            

    

     

    
      	
               
      

            	
              (c)

            	
              a
      merger of any Subsidiary of U. S. Steel into the Company, such that the
      Company acquires all the assets and liabilities of such Subsidiary and the
      Company is the surviving legal entity, provided the Company's post-merger
      consolidated net worth equals or exceeds the immediately preceding
      pre-merger consolidated net worth of the Company and that Subsidiary as
      determined on the basis of accounting principles and practices consistent
      with the preparation of the Latest
Accounts.

            

    

     

    Permitted Security Interest
means any of the following:

     

    
      	
               
      

            	
              (a)

            	
              Security
      Interests existing on the date of this Agreement and disclosed to the
      Facility Agent in writing;

            

    

     

    
      	
               
      

            	
              (b)

            	
              any
      Security Interests incurred in connection with the acquisition of any
      asset, the assumption of any Security Interest previously existing on such
      acquired asset or any Security Interest existing on any asset of any
      person when it becomes a Subsidiary of the Company in each case provided
      that the Indebtedness secured by such Security Interest does not exceed
      the fair market value of that asset as at the date of that
      acquisition;

            

    

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              (c)

            	
              easements,
      rights-of-way, minor defects or irregularities in title and other similar
      encumbrances on real property having no material adverse effect on the
      then current use or value of such real property, or on the then current
      conduct of the business of any member of the
  Group;

            

    

     

    
      	
               
      

            	
              (d)

            	
              unexercised
      liens for taxes not being delinquent or contested in good faith by
      appropriate proceedings and for which reserves, adequate under USGAAP, are
      being maintained;

            

    

     

    
      	
               
      

            	
              (e)

            	
              any
      Security Interest on equipment of the Company arising solely under leases
      of such equipment that, in accordance with USGAAP, are required to be
      capitalised, provided that any such Security Interest extends to no other
      property and secures no other Indebtedness and the Indebtedness secured by
      any such Security Interest does not exceed the fair market value of such
      equipment;

            

    

     

    
      	
               
      

            	
              (f)

            	
              purchase
      money Security Interests on equipment acquired by the Company after the
      date hereof incurred simultaneously with or within 180 days after the
      completion of installation thereof solely to secure payment of all or part
      of the purchase price thereof provided that each such Security Interest
      secures no other Indebtedness and extends to no other property and the
      Indebtedness secured by any such Security Interest does not exceed the
      fair market value of such
equipment;

            

    

     

    
      	
               
      

            	
              (g)

            	
              liens
      arising solely by operation of law (or by an agreement evidencing the
      same) in the ordinary course of Company's business in respect of
      Indebtedness that either: (i) has been due for less than 90 days; or
      (ii) is being contested in good faith by appropriate means and for
      which reserves, adequate under USGAAP, are being
    maintained;

            

    

     

    
      	
               
      

            	
              (h)

            	
              Security
      Interests arising out of title retention provisions in a supplier's
      standard conditions of supply of goods acquired by Company in the ordinary
      course of its business;

            

    

     

    
      	
               
      

            	
              (i)

            	
              any
      Security Interest approved by the Facility Agent with the approval of the
      Majority Lenders;

            

    

     

    
      	
               
      

            	
              (j)

            	
              liens
      in favour of financial institutions arising from documentary letters of
      credit in the ordinary course of business;
and

            

    

     

    
      	
               
      

            	
              (k)

            	
              any
      renewal of or substitution for any Security Interest permitted under any
      preceding paragraph; and

            

    

     

    
      	
               
      

            	
              (l)

            	
              liens
      arising in the ordinary course of business in connection with: (i) the
      performance of bids, trade contracts, (to the extent not covered by
      sub-clause (b) of this definition), leases (to the extent a lease
      constitutes a finance lease and not an operating lease), statutory
      obligations, surety and appeal bonds, performance bonds and other
      obligations of a like nature; (ii) deposit accounts; and (iii) deposits
      made in the ordinary course of business to cash collateralized letters of
      credit, provided that the aggregate book value of Assets to which the
      liens described in this Subclause (l) are attached does not exceed euro
      50,000,000 or its equivalent at any time; provided, however, the maximum
      amount under this sub-clause (l) does not apply to cash deposits that are
      subject to any bank's general right of set-off but does apply in
      situations where a specific security agreement exists, including, without
      limitation, any specific security interest providing a creditor with the
      treatment of a secured creditor with a right to separate satisfaction of
      its claim under the Slovak Act No. 7/2005 Coll., on bankruptcy and
      restructuring (as amended) or any similar right to separate satisfaction
      in case of bankruptcy or similar proceedings under any applicable
      laws.

            

    

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    PRIBOR means for a Term of any
Loan or overdue amount denominated in Czech Koruna:

     

    
      	
               
      

            	
              (a)

            	
              the
      applicable Screen Rate; or

            

    

     

    
      	
               
      

            	
              (b)

            	
              if
      no Screen Rate is available for Czech Koruna or the Term of that Loan or
      overdue amount, the arithmetic mean (rounded upward to four decimal
      places) of the rates, as supplied to the Facility Agent at its request,
      quoted by the Reference Banks to leading banks in the Prague interbank
      market,

            

    

     

    as of
11.00 a.m. on the Rate Fixing Day for the offering of deposits in Czech Koruna
for a period comparable to the Term of that Loan.

     

    Pro Rata Share
means:

     

    
      	
               
      

            	
              (a)

            	
              for
      the purpose of determining a Lender's share in a utilisation of the
      Facility, the proportion which its Commitment bears to the Total
      Commitments; and

            

    

     

    
      	
               
      

            	
              (b)

            	
              for
      any other purpose on a particular
date:

            

    

     

    
      	
               
      

            	
              (i)

            	
              the
      proportion which a Lender's share of the Loans (if any) bears to all the
      Loans;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              if
      there is no Loan outstanding on that date, the proportion which its
      Commitment bears to the Total Commitments on that date;
  or

            

    

     

    
      	
               
      

            	
              (iii)

            	
              if
      the Total Commitments have been cancelled, the proportion which its
      Commitment bore to the Total Commitments immediately before being
      cancelled.

            

    

     

    Rate Fixing Day
means:

     

    
      	
               
      

            	
              (a)

            	
              the
      second Business Day before the first day of a Term for a Loan denominated
      in any currency other than euro; or

            

    

     

    
      	
               
      

            	
              (b)

            	
              the
      second TARGET Day before the first day of a Term for a Loan denominated in
      euro,

            

    

     

    or such
other day as the Facility Agent determines is generally treated as the rate
fixing day by market practice in the relevant interbank market.

     

    Reference Banks means the
Facility Agent, and any other bank or financial institution appointed as such by
the Facility Agent under this Agreement.

     

    Relevant Taxes means Taxes
imposed or levied by the Republic (or any political subdivision or taxing
authority of the Republic) or by any other jurisdiction from or through which
any payment is made by the Company under the Finance Document, but excludes
Taxes imposed by the Republic which are so imposed as a direct consequence of
the relevant Finance Party maintaining a permanent establishment in the Republic
and of that establishment being directly involved in any Loan.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    Repeating Representations
means the representations and warranties that are then made or deemed to be
repeated under Clause 16.21 (Times for making representations and
warranties).

     

    Republic means the Slovak
Republic.

     

    Request means a request for a
Loan, substantially in the form of Schedule 3 (Form of
Request).

     

    Rollover Loan means one or
more Loans:

     

    
      	
               
      

            	
              (a)

            	
              to
      be made on the same day that a maturing Loan is due to be
      repaid;

            

    

     

    
      	
               
      

            	
              (b)

            	
              the
      aggregate amount of which is equal to or less than the maturing
      Loan;

            

    

     

    
      	
               
      

            	
              (c)

            	
              in
      the same currency as the maturing Loan;
and

            

    

     

    
      	
               
      

            	
              (d)

            	
              to
      be made for the purpose of refinancing a maturing
  Loan.

            

    

     

    Screen Rate means, for the
relevant currency and Term:

     

    
      	
               
      

            	
              (a)

            	
              for
      LIBOR, the London Interbank Offered Rate as displayed on Reuters page
      LIBOR01;

            

    

     

    
      	
               
      

            	
              (b)

            	
              for
      EURIBOR, the Euro Interbank Offered Rate as displayed on Reuters page
      LIBOR01;

            

    

     

    
      	
               
      

            	
              (c)

            	
              for
      PRIBOR, the Prague Interbank Offered Rate as displayed on Reuters page
      PRIBOR01;

            

    

     

    provided
that if the relevant page is replaced or the service ceases to be available, the
Facility Agent (after consultation with the Company and the Lenders) may specify
another page or service displaying the appropriate rate.

     

    Security Interest means any
mortgage, pledge, lien, charge (including a floating charge), assignment
(whether conditional or otherwise), hypothecation or security interest or any
other agreement or arrangement having the effect of conferring security, or any
other arrangement having a similar economic effect including (without
limitation) total transfer, 'flawed asset', sale and repurchase, buyback or
conditional transfer arrangements.

     

    Specified Lender means a
Defaulting Lender or a Downgraded Lender.

     

    Subsidiary means an entity of
which a person has direct or indirect control or owns directly or indirectly
more than 50 per cent. of the voting capital or similar right of ownership and
control for this purpose
means the power to direct the management and the policies of the entity whether
through the ownership of voting capital, by contract or otherwise.

     

    TARGET2 means the
Trans-European Automated Real-time Gross Settlement Express Transfer payment
system which utilises a single shared platform and which was launched on 19
November 2007.

     

    TARGET Day means any day on
which TARGET2 is open for the settlement of payments in euro.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    Tax means any tax, levy,
impost, duty or other charge or withholding of a similar nature (including any
related penalty or interest).

     

    Tax Deduction means a
deduction or withholding for or on account of Tax from a payment under a Finance
Document.

     

    Tax Payment means a payment
made by the Company to a Finance Party in any way relating to a Tax Deduction or
under any indemnity given by the Company in respect of Tax under any Finance
Document.

     

    Term means each period
determined under this Agreement by reference to which interest on a Loan or an
overdue amount is calculated.

     

    Total Commitments means the
aggregate of the Commitments of all the Lenders.

     

    Transfer Certificate means a
certificate, substantially in the form of Schedule 4 (Form of Transfer
Certificate), with such amendments as the Facility Agent may approve or
reasonably require or any other form agreed between the Facility Agent and the
Company.

     

    U.K. means the United
Kingdom.

     

    US Dollars or USD mean the lawful currency
for the time being of the United States of America.

     

    USGAAP means the generally
accepted accounting principles and practices in the United States of America in
effect from time to time.

     

    U. S. Steel means United
States Steel Corporation, currently a corporation organized under the laws of
the State of Delaware, U.S.A., Delaware registration number
3396733.

     

    Utilisation Date means each
date on which the Facility is utilised.

     

    
      	
              1.2

            	
              Construction

            

    

     

    
      	
              (a)

            	
              In
      this Agreement, unless the contrary intention appears, a reference
      to:

            

    

     

    
      	
               
      

            	
              (i)

            	
              an
      amendment includes
      a supplement, novation, restatement or re-enactment and amended will be
      construed accordingly;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              assets means assets as
      defined in the Latest Accounts;

            

    

     

    
      	
               
      

            	
              (iii)

            	
              an
      authorisation
      includes an authorisation, consent, approval, resolution, licence,
      exemption, filing, registration or
notarisation;

            

    

     

    
      	
               
      

            	
              (iv)

            	
              disposal means a sale,
      transfer, grant, lease or other disposal, whether voluntary or
      involuntary, and dispose will be
      construed accordingly;

            

    

     

    
      	
               
      

            	
              (v)

            	
              indebtedness includes
      any obligation (whether incurred as principal or as surety) for the
      payment or repayment of money;

            

    

     

    
      	
               
      

            	
              (vi)

            	
              know your customer requirements are the
      identification checks that a Finance Party requests in order to meet its
      obligations under any applicable law or regulation to identify a person
      who is (or is to become) its
customer;

            

    

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              (vii)

            	
              a
      person includes
      any individual, company, corporation, unincorporated association or body
      (including without limitation a partnership, trust, joint venture or
      consortium), government, state, agency, organisation or other entity
      whether or not having separate legal
  personality;

            

    

     

    
      	
               
      

            	
              (viii)

            	
              a
      regulation
      includes any regulation, rule, official directive, request or guideline
      (whether or not having the force of law but, if not having the force of
      law, being of a type with which any person to which it applies is
      accustomed to comply) of any governmental, inter-governmental or
      supranational body, agency, department or regulatory, self-regulatory or
      other authority or organisation;

            

    

     

    
      	
               
      

            	
              (ix)

            	
              a
      currency is a reference to the lawful currency for the time being of the
      relevant country;

            

    

     

    
      	
               
      

            	
              (x)

            	
              a
      Default being outstanding means that
      it has not been remedied or waived;

            

    

     

    
      	
               
      

            	
              (xi)

            	
              a
      provision of law is a reference to that provision as extended, applied,
      amended or re-enacted and includes any subordinate
      legislation;

            

    

     

    
      	
               
      

            	
              (xii)

            	
              a
      Clause, a Subclause or a Schedule is a reference to a clause or subclause
      of, or a schedule to, this
Agreement;

            

    

     

    
      	
               
      

            	
              (xiii)

            	
              a
      Party or any other person includes its successors in title, permitted
      assigns and permitted transferees;

            

    

     

    
      	
               
      

            	
              (xiv)

            	
              a
      Finance Document or another document is a reference to that Finance
      Document or other document as
amended;

            

    

     

    
      	
               
      

            	
              (xv)

            	
              the
      word “will” shall be construed to have the same meaning and effect as the
      word “shall”; and

            

    

     

    
      	
               
      

            	
              (xvi)

            	
              a
      time of day is a reference to Central European time (i.e. CET or CEST, as
      applicable in the given time of the
year).

            

    

     

    
      	
              (b)

            	
              Unless
      the contrary intention appears, a reference to a month is a reference to
      a period starting on one day in a calendar month and ending on the
      numerically corresponding day in the next calendar month or the calendar
      month in which it is to end, except
that:

            

    

     

    
      	
               
      

            	
              (i)

            	
              if
      the numerically corresponding day is not a Business Day, the period will
      end on the next Business Day in that month (if there is one) or the
      preceding Business Day (if there is
not);

            

    

     

    
      	
               
      

            	
              (ii)

            	
              if
      there is no numerically corresponding day in that month, that period will
      end on the last Business Day in that month;
and

            

    

     

    
      	
               
      

            	
              (iii)

            	
              notwithstanding
      sub-paragraph (i) of this Clause 1.2(b), a period which commences on the
      last Business Day of a month will end on the last Business Day in the next
      month or the calendar month in which it is to end, as
      appropriate.

            

    

     

    
      	
              (c)

            	
              Unless
      expressly provided to the contrary in a Finance Document, a person who is
      not a party to a Finance Document may not enforce any of its terms under
      the Contracts (Rights of Third Parties) Act 1999 and, notwithstanding any
      term of any Finance Document, no consent of any third party is required
      for any amendment (including, without limitation, any release or
      compromise of any liability) or termination of any Finance
      Document.

            

    

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    
      	
              (d)

            	
              Unless
      the contrary intention appears:

            

    

     

    
      	
               
      

            	
              (i)

            	
              a
      reference to a Party will not include that Party if it has ceased to be a
      Party under this Agreement;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              a
      word or expression used in any other Finance Document or in any notice
      given in connection with any Finance Document has the same meaning in that
      Finance Document or notice as in this
Agreement;

            

    

     

    
      	
               
      

            	
              (iii)

            	
              if
      there is an inconsistency between this Agreement and any other Finance
      Document, this Agreement will
prevail;

            

    

     

    
      	
               
      

            	
              (iv)

            	
              any
      non-payment obligations of the Company under the Finance Documents remain
      in force for so long as any payment obligation of the Company is or may be
      outstanding under the Finance Documents;
and

            

    

     

    
      	
               
      

            	
              (v)

            	
              an
      accounting term used in this Agreement is to be construed in accordance
      with USGAAP.

            

    

     

    
      	
              (e)

            	
              The
      headings in this Agreement do not affect its
    interpretation.

            

    

     

    
      	
              1.3

            	
              Slovak
      terms

            

    

     

    In this
Agreement and any other Finance Document (except if expressly stipulated
otherwise in the relevant Finance Document), a reference to:

     

    
      	
               
      

            	
              (a)

            	
              a
      novation
      includes privatívna novácia and
      kumulatívna
      novácia;

            

    

     

    
      	
               
      

            	
              (b)

            	
              a
      Security Interest
      includes záložné
      právo, zádržné
      právo, zabezpečovací
      prevod práva, and zabezpečovacie
      postúpenie pohľadávky;

            

    

     

    
      	
               
      

            	
              (c)

            	
              a
      bankruptcy, insolvency or administration
      includes konkurzné
      konanie, konkurz, reštrukturalizačné
      konanie,
      reštrukturalizácia, and
      nútená
      správa;

            

    

     

    
      	
               
      

            	
              (d)

            	
              being
      bankrupt or insolvent includes being
      v úpadku, predlžený, platobne neschopný,
      v konkurze, v reštrukturalizácii,
      and v nútenej
      správe;

            

    

     

    
      	
               
      

            	
              (e)

            	
              an
      expropriation,
      attachment, sequestration, distress, execution or analogous process
      includes vyvlastnenie, exekúcia and výkon
      rozhodnutia;

            

    

     

    
      	
               
      

            	
              (f)

            	
              winding up, administration
      or dissolution
      includes likvidácia, zrušenie s likvidáciou,
      zrušenie bez likvidácie
      bez právneho nástupcu, konkurzné konanie,
      konkurz, reštrukturalizačné
      konanie, reštrukturalizácia,
      and nútená
      správa;

            

    

     

    
      	
               
      

            	
              (g)

            	
              a
      receiver, administrator,
      administrative receiver, compulsory manager or similar officer includes
      likvidátor, konkurzný správca
      (including predbežný správca),
      reštrukturalizačný správca, nútený správca, and
      súdny
      exekútor;

            

    

     

    
      	
               
      

            	
              (h)

            	
              a
      moratorium
      includes reštrukturalizačné
      konanie and reštrukturalizácia;
      and

            

    

     

    
      	
               
      

            	
              (i)

            	
              constitutional
      documents includes
      spoločenská
      zmluva,
      zakladateľská
      listina, zakladateľská
      zmluva,
      zriaďovacia
      listina, štatút, and stanovy.

            

    

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    
      	
              2.

            	
              FACILITY

            

    

     

    
      	
              2.1

            	
              Facility

            

    

     

    Subject
to the terms of this Agreement, the Lenders make available to the Company a
revolving credit facility in an aggregate amount equal to the Total
Commitments.

     

    
      	
              2.2

            	
              Nature
      of a Finance Party's rights and
obligations

            

    

     

    Unless
all the Finance Parties agree otherwise:

     

    
      	
               
      

            	
              (a)

            	
              the
      obligations of a Finance Party under the Finance Documents are
      several;

            

    

     

    
      	
               
      

            	
              (b)

            	
              failure
      by a Finance Party to perform its obligations does not affect the
      obligations of any other person under the Finance
    Documents;

            

    

     

    
      	
               
      

            	
              (c)

            	
              no
      Finance Party is responsible for the obligations of any other Finance
      Party under the Finance Documents;

            

    

     

    
      	
               
      

            	
              (d)

            	
              the
      rights of a Finance Party under the Finance Documents are separate and
      independent rights;

            

    

     

    
      	
               
      

            	
              (e)

            	
              a
      Finance Party may, except as otherwise stated in the Finance Documents,
      separately enforce those rights;
and

            

    

     

    
      	
               
      

            	
              (f)

            	
              a
      debt arising under the Finance Documents to a Finance Party is a separate
      and independent debt.

            

    

     

    
      	
              3.

            	
              PURPOSE

            

    

     

    
      	
              3.1

            	
              Loans

            

    

     

    Each Loan
may be used for general corporate purposes.

     

    
      	
              3.2

            	
              No
      obligation to monitor

            

    

     

    No
Finance Party is bound to monitor or verify the utilisation of the
Facility.

     

    
      	
              4.

            	
              CONDITIONS
      PRECEDENT

            

    

     

    
      	
              4.1

            	
              Conditions
      precedent documents

            

    

     

    A Request
may not be given until the Facility Agent has notified the Company and the
Lenders that it has received all of the documents and evidence set out in
Schedule 2 (Conditions
precedent documents) in form and substance satisfactory to the Facility
Agent.  The Facility Agent must give this notification to the Company
and the Lenders promptly upon being so satisfied.

     

    
      	
              4.2

            	
              Further
      conditions precedent

            

    

     

    
      	
              (a)

            	
              The
      first Request may not be given:

            

    

     

    
      	
               
      

            	
              (i)

            	
              if
      there are any borrowings under the Existing Facility A outstanding or to
      be outstanding on both the date of the Request and the Utilisation Date,
      until such outstanding borrowings are repaid or prepaid in whole by the
      Company on or before the Utilisation Date in accordance with the terms of
      the Existing Facility Agreement A;
and

            

    

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              (ii)

            	
              if
      there are any amounts of any commitments of the lenders under the Existing
      Facility A unutilised on both the date of the Request and the Utilisation
      Date, until such unutilised amounts of such commitments are irrevocably
      cancelled in whole by the Company on or before the Utilisation Date in
      accordance with the terms of the Existing Facility Agreement
      A.

            

    

     

    
      	
              (b)

            	
              The
      obligations of each Lender to participate in any Loan are subject to the
      further conditions precedent that on both the date of the Request and the
      Utilisation Date for that Loan:

            

    

     

    
      	
               
      

            	
              (i)

            	
              the
      Repeating Representations are correct in all material respects;
      and

            

    

     

    
      	
               
      

            	
              (ii)

            	
              no
      Default or, in the case of a Rollover Loan, no Event of Default is
      outstanding or would result from the
Loan.

            

    

     

    
      	
              4.3

            	
              Drawstop

            

    

     

    A Request
may not be made in any case where the Company is in default under the Existing
Facility B of any payment obligation (or payment obligations in aggregate) in an
amount equal to or in excess of EUR 500,000 or its equivalent in other
currencies (a Drawstop
Event).  Following a Drawstop Event, no further Requests may be
made until the Facility Agent notifies the Company in writing that it may submit
a Request. The Facility Agent shall so notify the Company promptly after the
Facility Agent receives evidence reasonably satisfactory to it that such default
or defaults: (i) are no longer outstanding; or (ii) are waived in accordance
with the Existing Facility Agreement B; or (iii) a combination of (i) and (ii),
whereby, following such waivers (if any), such default or defaults (if any) are
in aggregate in an amount less than EUR 500,000 or its equivalent in other
currencies.

     

    
      	
              4.4

            	
              Maximum
      number of Loans

            

    

     

    Unless
the Facility Agent agrees, a Request may not be given if, as a result, there
would be more than five Loans outstanding.

     

    
      	
              5.

            	
              UTILISATION

            

    

     

    
      	
              5.1

            	
              Giving
      of Requests

            

    

     

    
      	
              (a)

            	
              The
      Company may borrow a Loan by giving to the Facility Agent a duly completed
      Request.

            

    

     

    
      	
              (b)

            	
              Unless
      the Facility Agent otherwise agrees, the latest time for receipt by the
      Facility Agent of a duly completed Request is 11.00 a.m. one Business Day
      before the Rate Fixing Day for the proposed
  borrowing.

            

    

     

    
      	
              (c)

            	
              Each
      Request is irrevocable unless otherwise agreed by the Facility Agent upon
      the approval of the Majority
Lenders.

            

    

     

    
      	
              5.2

            	
              Completion
      of Requests

            

    

     

    A Request
will not be regarded as having been duly completed unless:

     

    
      	
               
      

            	
              (a)

            	
              the
      Utilisation Date is a Business Day falling within the Availability
      Period;

            

    

     

    
      	
               
      

            	
              (b)

            	
              the
      amount of the Loan requested is:

            

    

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              (i)

            	
              a
      minimum of €5,000,000 and an integral multiple of €250,000 or an amount
      which complies with Clause 6 (Optional
      Currencies);

            

    

     

    
      	
               
      

            	
              (ii)

            	
              the
      maximum undrawn amount available under the Facility on the proposed
      Utilisation Date; or

            

    

     

    
      	
               
      

            	
              (iii)

            	
              such
      other amount as the Facility Agent may agree;
  and

            

    

     

    
      	
               
      

            	
              (c)

            	
              the
      proposed currency and Term comply with this
  Agreement.

            

    

     

    Only one
Loan may be requested in a Request.

     

    
      	
              5.3

            	
              Advance
      of Loan

            

    

     

    
      	
              (a)

            	
              The
      Facility Agent must promptly notify each Lender of the details of the
      requested Loan and the amount of its share in that
  Loan.

            

    

     

    
      	
              (b)

            	
              The
      amount of each Lender’s share of the requested Loan will be its Pro Rata
      Share on the proposed Utilisation
Date.

            

    

     

    
      	
              (c)

            	
              No
      Lender is obliged to participate in a Loan if, as a
  result:

            

    

     

    
      	
               
      

            	
              (i)

            	
              its
      share in the Loans would exceed its Commitment;
  or

            

    

     

    
      	
               
      

            	
              (ii)

            	
              the
      Loans would exceed the Total
Commitments.

            

    

     

    
      	
              (d)

            	
              If
      the conditions set out in this Agreement have been met, each Lender must
      make its share in the requested Loan available to the Facility Agent for
      the Company through its Facility Office on the Utilisation
      Date.

            

    

     

    
      	
              6.

            	
              OPTIONAL
      CURRENCIES

            

    

     

    
      	
              6.1

            	
              General

            

    

     

    In this
Clause:

     

    Agent's Spot Rate of Exchange
means the Facility Agent's spot rate of exchange for the purchase of the
relevant currency in the London foreign exchange market with euros as of noon on
a particular day.

     

    euro amount of a Loan or part of a
Loan means:

     

    
      	
               
      

            	
              (a)

            	
              if
      the Loan is denominated in euros, its amount;
or

            

    

     

    
      	
               
      

            	
              (b)

            	
              if
      the Loan is denominated in an Optional Currency, its equivalent in euros
      calculated on the basis of the Facility Agent's Spot Rate of Exchange one
      Business Day before the Rate Fixing Day for that
  Term.

            

    

     

    Optional Currency means any
currency (other than euros) in which a Loan may be denominated under this
Agreement.

     

    
      	
              6.2

            	
              Selection

            

    

     

    
      	
              (a)

            	
              The
      Company must select the currency of a Loan in its
  Request.

            

    

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    
      	
              (b)

            	
              The
      amount of a Loan requested in an Optional Currency must be a minimum
      amount of the equivalent of €5,000,000 in the Optional Currency and in
      integral multiples of the equivalent of €250,000 in the Optional
      Currency.

            

    

     

    
      	
              (c)

            	
              Unless
      the Facility Agent otherwise agrees, the Loans may not be denominated at
      any one time in more than four
currencies.

            

    

     

    
      	
              6.3

            	
              Conditions
      relating to Optional Currencies

            

    

     

    
      	
              (a)

            	
              A
      Loan may be denominated in an Optional Currency for a Term
    if:

            

    

     

    
      	
               
      

            	
              (i)

            	
              that
      Optional Currency is readily available in the amount required and freely
      convertible into euros in the relevant interbank market on the Rate Fixing
      Day and the first day of that Term;
and

            

    

     

    
      	
               
      

            	
              (ii)

            	
              that
      Optional Currency is Canadian Dollars, Czech Koruna or US Dollars or has
      been previously approved by the Facility Agent (acting on the instructions
      of all the Lenders).

            

    

     

    
      	
              (b)

            	
              If
      the Facility Agent has received a request from the Company for a currency
      (other than the Optional Currency specified in Clause 6.3(a)(ii)) to be
      approved as an Optional Currency, the Facility Agent must, within five
      Business Days, confirm to the
Company:

            

    

     

    
      	
               
      

            	
              (i)

            	
              whether
      or not the Lenders have given their approval;
  and

            

    

     

    
      	
               
      

            	
              (ii)

            	
              if
      approval has been given, the minimum amount (and, if required, integral
      multiples) for any Loan in that
currency.

            

    

     

    
      	
              6.4

            	
              Revocation
      of currency

            

    

     

    
      	
              (a)

            	
              Notwithstanding
      any other term of this Agreement, if before 9.30 a.m. on any Rate
      Fixing Day the Facility Agent receives notice from a Lender
      that:

            

    

     

    
      	
               
      

            	
              (i)

            	
              the
      Optional Currency requested is not readily available to it in the relevant
      interbank market in the amount and for the period required;
    or

            

    

     

    
      	
               
      

            	
              (ii)

            	
              participating
      in a Loan in the proposed Optional Currency might contravene any law or
      regulation applicable to it,

            

    

     

    the
Facility Agent must give notice to the Company to that effect promptly and in
any event before noon on that day.

     

    
      	
              (b)

            	
              In
      this event:

            

    

     

    
      	
               
      

            	
              (i)

            	
              that
      Lender must participate in the Loan in euros;
  and

            

    

     

    
      	
               
      

            	
              (ii)

            	
              the
      share of that Lender in the Loan and any other similarly affected
      Lender(s) will be treated as a separate Loan denominated in euros during
      that Term.

            

    

     

    
      	
              (c)

            	
              Any
      part of a Loan treated as a separate Loan under this Subclause will not be
      taken into account for the purposes of any limit on the number of Loans or
      currencies outstanding at any one
time.

            

    

     

    
      	
              (d)

            	
              A
      Loan will still be treated as a Rollover Loan if it is not denominated in
      the same currency as the maturing Loan by reason only of the operation of
      this Subclause.

            

    

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    
      	
              6.5

            	
              Optional
      Currency equivalents

            

    

     

    The
equivalent in euros of a Loan or part of a Loan in an Optional Currency for the
purposes of calculating:

     

    
      	
               
      

            	
              (a)

            	
              whether
      any limit under this Agreement has been
  exceeded;

            

    

     

    
      	
               
      

            	
              (b)

            	
              the
      amount of a Loan;

            

    

     

    
      	
               
      

            	
              (c)

            	
              the
      share of a Lender in a Loan;

            

    

     

    
      	
               
      

            	
              (d)

            	
              the
      amount of any repayment or prepayment of a Loan;
  or

            

    

     

    
      	
               
      

            	
              (e)

            	
              the
      undrawn amount of a Lender's
Commitment,

            

    

     

    is its
euro amount.

     

    
      	
              6.6

            	
              Notification

            

    

     

    The
Facility Agent must notify the Lenders and the Company of the relevant euro
amount (and the applicable Agent's Spot Rate of Exchange) promptly after they
are ascertained.

     

    
      	
              7.

            	
              REPAYMENT

            

    

     

    
      	
              (a)

            	
              The
      Company must repay each Loan made to it in full on its Maturity
      Date.

            

    

     

    
      	
              (b)

            	
              Where
      the Maturity Date for an outstanding Loan coincides with the Utilisation
      Date for a new Loan to be denominated in the same currency as the
      outstanding Loan, the Facility Agent will apply the new Loan in or towards
      repayment of the outstanding Loan so
that:

            

    

     

    
      	
               
      

            	
              (i)

            	
              where
      the amount of the outstanding Loan exceeds the amount of the new Loan, the
      Company will only be required to repay the
  excess;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              where
      the amount of the outstanding Loan is exactly the same as the amount of
      the new Loan, the Company will not be required to make any
      payment;

            

    

     

    
      	
               
      

            	
              (iii)

            	
              where
      the amount of the new Loan exceeds the amount of the outstanding Loan, the
      Company will not be required to make any payment and the excess will be
      advanced to the Company,

            

    

     

    provided
that nothing in this paragraph (b) shall have the effect or be deemed to have
the effect of converting the whole of the Loan or any part of it into a term
loan.

     

    
      	
              (c)

            	
              Subject
      to the other terms of this Agreement, any amounts repaid under paragraph
      7(a) may be re-borrowed.

            

    

     

    
      	
              8.

            	
              PREPAYMENT
      AND CANCELLATION

            

    

     

    
      	
              8.1

            	
              Mandatory
      prepayment - illegality

            

    

     

    
      	
              (a)

            	
              If
      at any time:

            

    

     

    
      	
               
      

            	
              (i)

            	
              it
      is necessary under the laws and constitution of the
    Republic:

            

    

     

    
      	
               
      

            	
              (A)

            	
              in
      order to enable any Lender to enforce its rights under the Finance
      Documents; or

            

    

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    
       

      
        	
                 
      

              	
                (B)

              	
                by
      reason only of the execution, delivery and performance of this Agreement
      by any Lender,

              

      

       

      that any
Lender should be licensed, qualified or otherwise entitled to carry on business
in the Republic;

       

      
        	
                 
      

              	
                (ii)

              	
                a
      Lender is or will be deemed to be resident, domiciled or carrying on
      business in or subject to the laws of the Republic by reason only of the
      execution, delivery, performance and/or enforcement of any Finance
      Document;

              

      

       

      
        	
                 
      

              	
                (iii)

              	
                in
      any proceedings taken in the Republic in respect of any Finance Document
      or for the enforcement of any Finance Document, the choice of English law
      as the governing law of the Finance Document will not be recognised;
      or

              

      

       

      
        	
                 
      

              	
                (iv)

              	
                it
      is or becomes unlawful in any applicable jurisdiction for a Lender to give
      effect to any of its obligations as contemplated by this Agreement or to
      fund or maintain its participation in any
Loan,

              

      

       

      and the
occurrence of any of the foregoing causes a Lender (acting reasonably) to
believe it is materially prejudiced thereby then:

       

      
        
          	 	
                  (I)

                	
                  the
      relevant Lender must notify the Company (through the Facility Agent)
      accordingly; and

                

        

      

       

      
        
          	 	
                  (II)

                	
                  the
      Company shall prepay that Lender's participation in all the Loans on the
      date specified in paragraph (b) of this Clause 8.1, together with all
      other amounts payable by it to that Lender under the Finance Documents and
      the Commitment of that Lender shall forthwith be reduced to
      zero,

                

        

      

       

      except
that paragraphs (i) and (ii) of this Clause 8.1 do not apply to any Lender
acting through its Facility Office or having a permanently established office or
branch in the Republic.

       

      
        	
                (b)

              	
                The
      date for repayment or prepayment of a Lender's share in a Loan will
      be:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                the
      last day of the current Term of that Loan;
or

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                if
      earlier, the date specified by the Lender in the notification under
      paragraph (a)(iv)(I) of this Clause 8.1 and which must not be earlier than
      the last day of any applicable grace period allowed by
  law.

              

      

       

      
        	
                8.2

              	
                Mandatory
      prepayment - change of control

              

      

       

      
        	
                (a)

              	
                The
      Company shall, within one Business Day after the occurrence of a Change of
      Control notify such to the Facility Agent, and the Facility Agent shall
      promptly notify each Lender thereof.  Such notice shall describe
      in reasonable detail the facts and circumstances giving rise thereto and
      the date of such Change of Control and each Lender may, by notice to the
      Company and the Facility Agent given not later than ten days after the
      date of such Change of Control, terminate its Commitment and declare any
      amounts payable by the Company under the Finance Documents for its account
      to be, and such amounts shall become, due and payable, in each case on the
      Business Day following the date of delivery of the termination notice
      without presentment, demand, protest or other notice of any kind, all of
      which are hereby waived by the
Company.

              

      

       

      
        	
                (b)

              	
                For
      purposes of this Clause 8.2, the following terms have the following
      meanings:

              

      

      
        
           

        

        
          20

          
            

          

        

        
           

        

      

       

      A Change of Control shall occur
if:

       

      
        	
                 
      

              	
                (i)

              	
                any
      "person" (as such term is used in Sections 13 (d) and 14(d) of the U.S.
      Securities Exchange Act of 1934, as amended, hereinafter, the "Exchange
      Act") is or becomes the "beneficial owner" (as defined in Rules 13d-3 and
      13d-5 under the Exchange Act, except that for the purposes of this
      sub-clause (i) such person shall be deemed to have "beneficial ownership"
      of all shares that any such person has the right to acquire, whether such
      right is exercisable immediately or only after the passage of time),
      directly or indirectly, of more than 35% of either the aggregate ordinary
      Voting Power or the aggregate equity value represented by the issued and
      outstanding Equity Interests of U. S.
Steel;

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                during
      any period of twenty-five consecutive months, commencing before or after
      the date of this Agreement, individuals who at the beginning of such
      twenty-five month period were directors of U. S. Steel (together with any
      replacement or additional directors whose election was recommended by the
      incumbent directors of U. S. Steel or who were elected by a majority of
      directors then in office) cease to constitute a majority of the board of
      directors of U. S. Steel;

              

      

       

      
        	
                 
      

              	
                (iii)

              	
                the
      adoption of a plan relating to the liquidation or dissolution of U. S.
      Steel;

              

      

       

      
        	
                 
      

              	
                (iv)

              	
                the
      merger or consolidation of U. S. Steel with or into another entity, or the
      merger of another entity with or into U. S. Steel, other than a merger or
      consolidation transaction in which holders of Equity Interests
      representing 100% of the ordinary Voting Power represented by the Equity
      Interests in U. S. Steel immediately prior to such transaction own
      directly or indirectly at least a majority of the ordinary Voting Power
      represented by the Equity Interests (or other securities into which such
      securities are converted as part of such merger or consolidation
      transaction) in the surviving person resulting from such merger or
      consolidation transaction, and in substantially the same proportion as
      before the transaction; or

              

      

       

      
        	
                 
      

              	
                (v)

              	
                the
      sale of all or substantially all the assets of U. S. Steel (determined on
      a consolidated basis) to another
person.

              

      

       

      Equity Interests means: (i)
shares of capital stock, partnership interests, membership interests in a
limited liability company, beneficial interests in a trust or other equity
ownership interests in a Person; or (ii) any warrants, options or other rights
to acquire such shares or interests.

       

      Voting Power as applied to the
stock of any corporation means the total voting power represented by all
outstanding Voting Stock of such corporation.

       

      Voting Stock as applied to the
stock of any corporation means stock of any class or classes (however
designated) having ordinary voting power for the election of the directors of
such corporation, other than stock having such power only by reason of the
happening of a contingency.

       

      
        	
                8.3

              	
                Voluntary
      prepayment

              

      

       

      
        	
                (a)

              	
                The
      Company may, by giving not less than 30 Business Days' prior notice to the
      Facility Agent, prepay any Loan at any time in whole or in
      part.

              

      

       

      
        	
                (b)

              	
                A
      prepayment of part of a Loan must be in a minimum amount of
      €5,000,000 and an integral multiple of €250,000 (or its equivalent in
      an Optional Currency).

              

      

      
        
           

        

        
          21

          
            

          

        

        
           

        

      

       

      
        	
                (c)

              	
                A
      prepayment of all or part of a Loan must be on an Interest Payment
      Date.

              

      

       

      
        	
                8.4

              	
                Automatic
      cancellation

              

      

       

      The
Commitment of each Lender will be automatically cancelled at the close of
business on the last day of the Availability Period.

       

      
        	
                8.5

              	
                Voluntary
      cancellation

              

      

       

      
        	
                (a)

              	
                The
      Company may, by giving not less than five Business Days' prior notice to
      the Facility Agent, cancel the unutilised amount of the Total Commitments
      in whole or in part.

              

      

       

      
        	
                (b)

              	
                Partial
      cancellation of the Total Commitments must be in a minimum amount of
      €10,000,000 and an integral multiple of
  €250,000.

              

      

       

      
        	
                (c)

              	
                Any
      cancellation in part will be applied against the Commitment of each Lender
      pro rata.

              

      

       

      
        	
                8.6

              	
                Right
      of repayment and cancellation of a single
Lender

              

      

       

      
        	
                (a)

              	
                If
      the Company is, or will be, required to pay to a
  Lender:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                a
      Tax Payment; or

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                an
      Increased Cost,

              

      

       

      the
Company may, while the requirement continues, give notice to the Facility Agent
requesting prepayment and cancellation in respect of that Lender.

       

      
        	
                (b)

              	
                After
      notification under paragraph (a) of this Clause
  8.6:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                the
      Company must repay or prepay that Lender's share in each Loan on the date
      specified in paragraph (c) of this Clause 8.6;
  and

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                the
      Commitment of that Lender will be immediately
  cancelled.

              

      

       

      
        	
                (c)

              	
                The
      date for repayment or prepayment of a Lender's share in a Loan will
      be:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                the
      last day of the Term for that Loan;
or

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                if
      earlier, the date specified by the Company in its
      notification.

              

      

       

      
        	
                8.7

              	
                Right
      of repayment and cancellation of a Specified
  Lender

              

      

       

      
        	
                (a)

              	
                If
      any Lender becomes a Specified
Lender:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                it
      must notify the Company (through the Facility Agent) immediately;
      and

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                until
      the Lender ceases to be a Specified Lender, the Company may (upon a prior
      written consent of all Lenders other than the relevant Specified Lender,
      such consent not to be unreasonably withheld or delayed) give notice to
      the Facility Agent requesting repayment or prepayment and cancellation in
      respect of that Specified Lender; provided, however,
  that:

              

      

       

      
        	
                 
      

              	
                (A)

              	
                receipt
      of the notice referred to in paragraph (i) above shall not be a condition
      precedent to the giving of notice by the Company pursuant to this
      paragraph (ii), and

              

      

      
        
           

        

        
          22

          
            

          

        

        
           

        

      

       

      
        	
                 
      

              	
                (B)

              	
                the
      Company may notify the Facility Agent of a repayment or prepayment and
      cancellation and repayment in respect of a Specified Lender pursuant to
      this Clause 8.7 without the prior written consent of the Lenders otherwise
      required under this paragraph (ii) up to an aggregate amount of EUR
      50,000,000, if on any of: (AA) the date of delivery of the repayment or
      prepayment and cancellation notice to the Facility Agent or (BB) date of
      making the repayment or prepayment (if any) there is no Default
      outstanding.

              

      

       

      
        	
                (b)

              	
                The
      Facility Agent shall as soon as practicable after receipt of a notice
      under paragraph (a)(i) above, notify all the
  Lenders.

              

      

       

      
        	
                (c)

              	
                After
      notice under paragraph (a)(ii) of this Clause
  8.7:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                the
      Company must repay or prepay that Specified Lender's share in each Loan on
      the date specified in paragraph (d) of this Clause 8.7;
  and

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                the
      Commitment of that Specified Lender will be immediately
      cancelled.

              

      

       

      
        	
                (d)

              	
                The
      date for repayment or prepayment of the Specified Lender's share in a Loan
      will be:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                the
      last day of the Term for that Loan;
or

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                if
      earlier, the date specified by the Company in its notification under
      paragraph (a)(ii) of this Clause
8.7.

              

      

       

      
        	
                8.8

              	
                Re-borrowing
      of Loans

              

      

       

      Any
voluntary prepayment of a Loan under Clause 8.3 (Voluntary prepayment) may be
re-borrowed on the terms of this Agreement. Any other prepayment of a Loan may
not be re-borrowed.

       

      
        	
                8.9

              	
                Miscellaneous
      provisions

              

      

       

      
        	
                (a)

              	
                Any
      notice of prepayment and/or cancellation under this Agreement is
      irrevocable and must specify the relevant date(s) and the affected Loans
      and Commitments. The Facility Agent must notify the Lenders promptly of
      receipt of any such notice.

              

      

       

      
        	
                (b)

              	
                All
      prepayments under this Agreement must be made with accrued interest on the
      amount prepaid. No premium or penalty is payable in respect of any
      prepayment except for Break Costs.

              

      

       

      
        	
                (c)

              	
                The
      Majority Lenders may agree a shorter notice period for a voluntary
      prepayment or a voluntary
cancellation.

              

      

       

      
        	
                (d)

              	
                No
      prepayment or cancellation is allowed except in accordance with the
      express terms of this Agreement.

              

      

       

      
        	
                (e)

              	
                No
      amount of the Total Commitments cancelled under this Agreement may
      subsequently be reinstated.

              

      

      
        
           

        

        
          23

          
            

          

        

        
           

        

      

       

      
        	
                9.

              	
                INTEREST

              

      

       

      
        	
                9.1

              	
                Calculation
      of interest

              

      

       

      The rate
of interest on each Loan for its Term is the percentage rate per annum equal to
the aggregate of the applicable:

       

      
        	
                 
      

              	
                (a)

              	
                Margin;

              

      

       

      
        	
                 
      

              	
                (b)

              	
                IBOR;
      and

              

      

       

      
        	
                 
      

              	
                (c)

              	
                Mandatory
      Cost.

              

      

       

      
        	
                9.2

              	
                Payment
      of interest

              

      

       

      Except
where it is provided to the contrary in this Agreement, the Company must pay
accrued interest on each Loan made to it on the last day of each Term and also,
if the Term is longer than six months, on the dates falling at six-month
intervals after the first day of that Term (each an Interest Payment
Date).

       

      
        	
                9.3

              	
                Interest
      on overdue amounts

              

      

       

      
        	
                (a)

              	
                If
      the Company fails to pay any amount payable by it under the Finance
      Documents, it must immediately on demand by the Facility Agent pay
      interest on the overdue amount from its due date up to the date of actual
      payment, both before, on and after
judgment.

              

      

       

      
        	
                (b)

              	
                Interest
      on an overdue amount is payable at a rate determined by the Facility Agent
      to be two per cent. per annum above the rate that would have been payable
      if the overdue amount had, during the period of non-payment, constituted a
      Loan in the currency of the overdue amount. For this purpose, the Facility
      Agent may (acting reasonably):

              

      

       

      
        	
                 
      

              	
                (i)

              	
                select
      successive Terms of any duration of up to three months;
  and

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                determine
      the appropriate Rate Fixing Day for that
Term.

              

      

       

      
        	
                (c)

              	
                Notwithstanding
      paragraph (b), if the overdue amount is a principal amount of a Loan and
      becomes due and payable before the last day of its current Term,
      then:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                the
      first Term for that overdue amount will be the unexpired portion of that
      Term; and

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                the
      rate of interest on the overdue amount for that first Term will be one per
      cent. per annum above the rate then payable on that
  Loan.

              

      

       

      After the
expiry of the first Term for that overdue amount, the rate on the overdue amount
will be calculated in accordance with paragraph (b) of this Clause
9.3.

       

      
        	
                (d)

              	
                Interest
      (if unpaid) on an overdue amount will be compounded with that overdue
      amount at the end of each of its Terms but will remain immediately due and
      payable.

              

      

       

      
        	
                9.4

              	
                Notification
      of rates of interest

              

      

       

      The
Facility Agent must promptly notify each relevant Party of the determination of
a rate of interest under this Agreement.

      
        
           

        

        
          24

          
            

          

        

        
           

        

      

       

      
        	
                9.5

              	
                Acknowledgement

              

      

       

      The
Company acknowledges and confirms for the benefit of the Finance Parties who are
banks or branches of foreign banks incorporated in the Slovak Republic that it
has been informed about the amount of the annual percentage rate of interest of
the Loan and on the fees that the Company shall pay under the Finance Documents
in compliance with section 37(2) of the Slovak Act No. 483/2001 Coll. as
amended.

       

      
        	
                10.

              	
                TERMS

              

      

       

      
        	
                10.1

              	
                Selection

              

      

       

      
        	
                (a)

              	
                Each
      Loan has one Term only.

              

      

       

      
        	
                (b)

              	
                The
      Company must select the Term for a Loan in the relevant
      Request.

              

      

       

      
        	
                (c)

              	
                Subject
      to the following provisions of this Clause, each Term for a Loan will be
      one or two weeks, or one, two, three or six
  months.

              

      

       

      
        	
                10.2

              	
                No
      overrunning the Final Maturity Date

              

      

       

      If a Term
would otherwise overrun the Final Maturity Date, it will be shortened so that it
ends on the Final Maturity Date in which case the Company will have no
obligation to pay Break Costs or other costs arising from the
shortening.

       

      
        	
                10.3

              	
                Notification

              

      

       

      The
Facility Agent must notify each relevant Party of the duration of each Term
promptly after ascertaining its duration.

       

      
        	
                11.

              	
                MARKET
      DISRUPTION

              

      

       

      
        	
                11.1

              	
                Failure
      of a Reference Bank to supply a
rate

              

      

       

      If IBOR
is to be calculated by reference to the Reference Banks but a Reference Bank
does not supply a rate by noon on a Rate Fixing Day, the applicable IBOR will,
subject as hereinafter provided, be calculated on the basis of the rates of the
remaining Reference Banks.

       

      
        	
                11.2

              	
                Market
      disruption

              

      

       

      
        	
                (a)

              	
                In
      this Clause, each of the following events is a market disruption
      event:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                IBOR
      is to be calculated by reference to the Reference Banks but no, or only
      one, Reference Bank supplies a rate by noon on the Rate Fixing Day;
      or

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                the
      Facility Agent receives by close of business on the Rate Fixing Day
      notification from Lenders whose shares in the relevant Loan exceed 30 per
      cent. of that Loan that the cost to them of obtaining matching deposits in
      the relevant interbank market is in excess of IBOR for the relevant
      Term.

              

      

       

      
        	
                (b)

              	
                The
      Facility Agent must promptly notify the Company and the Lenders of a
      market disruption event.

              

      

       

      
        	
                (c)

              	
                After
      notification under paragraph (b), the rate of interest on each Lender's
      share in the affected Loan for the relevant Term will be the aggregate of
      the applicable:

              

      

      
        
           

        

        
          25

          
            

          

        

        
           

        

      

       

      
        	
                 
      

              	
                (i)

              	
                Margin;

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                rate
      notified to the Facility Agent by that Lender as soon as practicable, and
      in any event before interest is due to be paid in respect of that Term, to
      be that which expresses as a percentage rate per annum the cost to that
      Lender of funding its share in that Loan from whatever source it may
      reasonably select; and

              

      

       

      
        	
                 
      

              	
                (iii)

              	
                Mandatory
      Cost.

              

      

       

      
        	
                11.3

              	
                Alternative
      basis of interest or funding

              

      

       

      
        	
                (a)

              	
                If
      a market disruption event occurs and the Facility Agent or the Company so
      requires, the Company and the Facility Agent must enter into negotiations
      for a period of not more than 30 days with a view to agreeing an
      alternative basis for determining the rate of interest and/or funding for
      the affected Loan.

              

      

       

      
        	
                (b)

              	
                Any
      alternative basis agreed will be, with the prior consent of all the
      Lenders, binding on all the
Parties.

              

      

       

      
        	
                12.

              	
                TAXES

              

      

       

      
        	
                12.1

              	
                Gross-up

              

      

       

      All
payments by the Company under the Finance Documents shall be made without any
deduction and free and clear of and without deduction for or on account of any
Taxes, except to the extent that the Company is required by law to make payment
subject to any Taxes.  If any Relevant Tax or amounts in respect of
any Relevant Tax must be deducted from any amounts payable or paid by the
Company, or paid or payable by the Facility Agent to a Lender, under the Finance
Documents, the Company shall, subject to Clause 12.4 (Exception to the gross-up),
pay such additional amounts as may be necessary to ensure that the relevant
Lender receives a net amount equal to the full amount which it would have
received had payment not been made subject to Relevant Tax.

       

      
        	
                12.2

              	
                Tax
      receipts

              

      

       

      All Taxes
required by law to be deducted or withheld by the Company from any amounts paid
or payable under the Finance Documents shall be paid by the Company when due and
the Company shall, within 15 days of receipt of evidence of the payment being
made, deliver the same to the Facility Agent.

       

      
        	
                12.3

              	
                Reimbursement
      of tax credit

              

      

       

      If the
Company pays a Tax Payment under Clause 12.1 (Gross-up) for the account of
a Lender, and the Lender effectively obtains, or could have effectively obtained
by taking reasonable action (in which case the Lender shall be treated as
actually having obtained), a refund of Tax, or credit against Tax, by reason of
that Tax Payment (a Tax
Credit), then the Lender shall reimburse to the Company such amount as
the Lender shall reasonably determine to be the proportion of the Tax Credit as
will leave the Lender (after that reimbursement) in no better or worse position
than it would have been in if the Tax Payment had not been
required.  Notwithstanding the foregoing, a Lender may choose not to
make or to limit the amount or alter the timing of any Tax Credit if to do
otherwise would result in a material adverse effect to the Lender or on its
relationship with the relevant Tax authority.  Upon reasonable request
from the Company, the Lender shall provide the Company with a certification
concerning whether or not a Tax Credit was obtained or was attempted to be
obtained by the Lender as well as reasonable detail concerning the amount of the
Tax Credit.  No Finance Party is obliged to disclose any information
regarding its Tax affairs or computations to any other person.

      
        
           

        

        
          26

          
            

          

        

        
           

        

      

       

      
        	
                12.4

              	
                Exception
      to the gross-up

              

      

       

      The
Company is not required to pay an additional amount for the account of a Lender
under Clause 12.1 (Gross-up):

       

      
        	
                 
      

              	
                (i)

              	
                to
      the extent that the obligation to pay the additional amount would not have
      arisen but for the failure by that Lender to provide (within a reasonable
      period after being requested to do so by the Company or the Facility Agent
      and at the cost of the Company) any form, certificate or other
      documentation:

              

      

       

      
        	
                 
      

              	
                (A)

              	
                the
      provision of which would have relieved (in whole or in part) the Company
      from the relevant withholding obligation;
and

              

      

       

      
        	
                 
      

              	
                (B)

              	
                which
      it is fully within the power of the Lender to
  provide;

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                if
      that Lender has not complied with its obligations under
      Clause 12.5(a) (Tax
      confirmation) for a period of 90 days from the date that Lender
      became aware that it could not give the confirmation referred to in
      Clause 12.5(a) (Tax
      confirmation); or

              

      

       

      
        	
                 
      

              	
                (iii)

              	
                the
      confirmation provided by that Lender under Clause 12.5(a) (Tax confirmation) is
      incorrect when made.

              

      

       

      
        	
                12.5

              	
                Tax
      confirmation

              

      

       

      
        	
                (a)

              	
                Each
      Lender (other than a Lender with its Facility Office situated in the
      Republic) confirms to the Company that on the date of this Agreement (or
      if it only subsequently becomes a Party to this Agreement, on that date)
      under the terms of a double taxation treaty between the jurisdiction in
      which that Lender is resident and the Republic payments due to it under
      the Finance Documents may be made without deduction or withholding on
      account of any Tax imposed or levied by the Republic (or any political
      subdivision or taxing authority of the Republic) under the laws of the
      Republic, as interpreted and applied at that
  time.

              

      

       

      
        	
                (b)

              	
                If
      a Lender becomes aware that it could not, on any particular day, give the
      confirmation referred to in paragraph (a) of this Clause 12.5, it shall
      promptly but in any event within 90 days, notify such to the Company
      (through the Facility Agent).

              

      

       

      
        	
                12.6

              	
                Stamp
      taxes

              

      

       

      The
Company must pay and indemnify each Finance Party against any stamp duty,
registration or other similar Tax payable in connection with the entry into,
performance or enforcement of any Finance Document, except for any such Tax
payable in connection with the entry into a Transfer Certificate.

       

      
        	
                12.7

              	
                Value
      added taxes

              

      

       

      
        	
                (a)

              	
                Any
      amount (including costs, fees and expenses) payable under a Finance
      Document by the Company is exclusive of any value added tax or similar tax
      that might be chargeable in connection with that amount.  If any
      such value added tax or similar tax is chargeable, the Company must pay
      (in addition to and at the same time as it pays that amount) an amount
      equal to the amount of that value added tax or similar
  tax.

              

      

      
        
           

        

        
          27

          
            

          

        

        
           

        

      

       

      
        	
                (b)

              	
                The
      obligation of the Company under paragraph (a) of this Clause 12.7 will be
      reduced to the extent that the Finance Party is entitled to repayment or a
      credit in respect of the relevant value added tax or similar
      tax.

              

      

       

      
        	
                13.

              	
                INCREASED
      COSTS

              

      

       

      
        	
                13.1

              	
                Increased
      Costs

              

      

       

      Except as
hereinafter provided in this Clause, the Company must pay to a Finance Party the
amount of any Increased Cost incurred by that Finance Party or its Holding
Company as a result of:

       

      
        	
                 
      

              	
                (a)

              	
                the
      introduction of, or any change in, or any change in the interpretation, or
      application of, any law or regulation;
or

              

      

       

      
        	
                 
      

              	
                (b)

              	
                compliance
      with any law or regulation made after the date of this
      Agreement.

              

      

       

      Each
Finance Party agrees to notify the Company promptly upon becoming aware that
this Clause 13.1 applies.

       

      
        	
                13.2

              	
                Exceptions

              

      

       

      The
Company need not make any payment for an Increased Cost to the extent that the
Increased Cost is:

       

      
        	
                 
      

              	
                (a)

              	
                compensated
      for under another Clause or would have been but for an exception to that
      Clause;

              

      

       

      
        	
                 
      

              	
                (b)

              	
                a
      tax on the overall net income of a Finance Party or its Holding
      Company;

              

      

       

      
        	
                 
      

              	
                (c)

              	
                attributable
      to a Finance Party or its Holding Company wilfully failing to comply with
      any law or regulation; or

              

      

       

      
        	
                 
      

              	
                (d)

              	
                attributable
      to the failure of the relevant Finance Party or its Holding Company to
      notify the Company of that increased cost within 45 days of becoming aware
      of it.

              

      

       

      
        	
                13.3

              	
                Claims

              

      

       

      
        	
                (a)

              	
                A
      Finance Party intending to make a claim for an Increased Cost must notify
      the Facility Agent of the circumstances giving rise to and the amount of
      the claim, following which the Facility Agent will promptly notify the
      Company.

              

      

       

      
        	
                (b)

              	
                Each
      Finance Party must, as soon as practicable after a demand by the Facility
      Agent, provide a certificate confirming the amount of its Increased
      Cost.

              

      

       

      
        	
                14.

              	
                MITIGATION

              

      

       

      
        	
                14.1

              	
                Mitigation

              

      

       

      If
circumstances arise that would, or would on the giving of notice, result
in:

       

      
        	
                 
      

              	
                (a)

              	
                any
      additional amounts becoming payable under Clause 12 (Taxes);
    or

              

      

       

      
        	
                 
      

              	
                (b)

              	
                any
      amount becoming payable under Clause 13 (Increased Costs);
      or

              

      

      
        
           

        

        
          28

          
            

          

        

        
           

        

      

       

      
        	
                 
      

              	
                (c)

              	
                any
      prepayment or cancellation under Clause 8 (Prepayment and
      Cancellation); or

              

      

       

      
        	
                 
      

              	
                (d)

              	
                a
      Finance Party incurring any cost of complying with the minimum reserve
      requirements of its supervising and regulating
  entity,

              

      

       

      then,
without limiting the obligations of the Company under this Agreement and without
prejudice to the terms of Clauses 12 (Taxes), 13 (Increased Costs) and 8 (Prepayment and Cancellation),
the relevant Lender shall, in consultation with the Company, take such
reasonable steps as may be open to it to mitigate or remove the relevant
circumstance, including (without limitation) changing its Facility Office to one
in another jurisdiction or the transfer of its rights and obligations under this
Agreement to another person, unless to do so might (in the reasonable opinion of
the Lender) be materially prejudicial to it.

       

      
        	
                15.

              	
                PAYMENTS

              

      

       

      
        	
                15.1

              	
                Place

              

      

       

      Unless a
Finance Document specifies that payments under it are to be made in another
manner, all payments by a Party (other than the Facility Agent) under the
Finance Documents must be made to the Facility Agent to its account at such
office or bank:

       

      
        	
                 
      

              	
                (a)

              	
                in
      the principal financial centre of the country of the relevant currency;
      or

              

      

       

      
        	
                 
      

              	
                (b)

              	
                in
      the case of euro, in the principal financial centre of a Participating
      Member State or London,

              

      

       

      as it may
notify to that Party for this purpose by not less than ten Business Days' prior
notice.

       

      
        	
                15.2

              	
                Funds

              

      

       

      Payments
under the Finance Documents to the Facility Agent must be made for value on the
due date at such times and in such funds as the Facility Agent may acting
reasonably specify to the Party concerned as being customary at the time for the
settlement of transactions in the relevant currency in the place for
payment.

       

      
        	
                15.3

              	
                Distribution

              

      

       

      
        	
                (a)

              	
                Each
      payment received by the Facility Agent under the Finance Documents for
      another Party must, except as hereinafter provided, be made available by
      the Facility Agent to that Party by payment (as soon as practicable after
      receipt) to its account with such office or
  bank:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                in
      the principal financial centre of the country of the relevant currency;
      or

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                in
      the case of euro, in the principal financial centre of a Participating
      Member State or London,

              

      

       

      as it may
notify to the Facility Agent for this purpose by not less than ten Business
Days' prior notice.

       

      
        	
                (b)

              	
                The
      Facility Agent may apply any amount received by it for the Company in or
      towards payment (as soon as practicable after receipt) of any amount due
      from the Company under the Finance Documents or in or towards the purchase
      of any amount of any currency to be so
applied.

              

      

      
        
           

        

        
          29

          
            

          

        

        
           

        

      

       

      
        	
                (c)

              	
                Where
      a sum is paid to the Facility Agent under this Agreement for another
      Party, the Facility Agent is not obliged to pay that sum to that Party
      until it has established that it has actually received
      it.  However, the Facility Agent may assume that the sum has
      been paid to it, and, in reliance on that assumption, make available to
      that Party a corresponding amount.  If it transpires that the
      sum has not been received by the Facility Agent, that Party must
      immediately on demand by the Facility Agent refund any corresponding
      amount made available to it together with interest on that amount from the
      date of payment to the date of receipt by the Facility Agent at a rate
      calculated by the Facility Agent to reflect its cost of
    funds.

              

      

       

      
        	
                15.4

              	
                Currency

              

      

       

      
        	
                (a)

              	
                Unless
      a Finance Document specifies that payments under it are to be made in a
      different manner, the currency of each amount payable under the Finance
      Documents is determined under this
Subclause.

              

      

       

      
        	
                (b)

              	
                Interest
      is payable in the currency in which the relevant amount in respect of
      which it is payable is denominated.

              

      

       

      
        	
                (c)

              	
                A
      repayment or prepayment of any principal amount is payable in the currency
      in which that principal amount is denominated on its due
    date.

              

      

       

      
        	
                (d)

              	
                Amounts
      payable in respect of Taxes, fees, costs and expenses are payable in the
      currency in which they are
incurred.

              

      

       

      
        	
                (e)

              	
                Each
      other amount payable under the Finance Documents is payable in
      euros.

              

      

       

      
        	
                15.5

              	
                No
      set-off or counterclaim

              

      

       

      All
payments made by the Company under the Finance Documents must be calculated and
made without (and free and clear of any deduction for) set-off or
counterclaim.

       

      
        	
                15.6

              	
                Business
      Days

              

      

       

      
        	
                (a)

              	
                If
      a payment under the Finance Documents is due on a day that is not a
      Business Day, the due date for that payment will instead be the next
      Business Day.

              

      

       

      
        	
                (b)

              	
                During
      any extension of the due date for payment of any principal under this
      Agreement interest is payable on that principal at the rate payable on the
      original due date.

              

      

       

      
        	
                15.7

              	
                Partial
      payments

              

      

       

      
        	
                (a)

              	
                If
      any Administrative Party receives a payment insufficient to discharge all
      the amounts then due and payable by the Company under the Finance
      Documents, the Administrative Party must apply that payment towards the
      obligations of the Company under the Finance Documents in the following
      order:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                first, in or towards
      payment pro rata of any unpaid fees, costs and expenses of the
      Administrative Parties under the Finance
  Documents;

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                secondly, in or towards
      payment pro rata of any accrued interest or fee due but unpaid under this
      Agreement;

              

      

       

      
        	
                 
      

              	
                (iii)

              	
                thirdly, in or towards
      payment pro rata of any principal amount due but unpaid under this
      Agreement; and

              

      

      
        
           

        

        
          30

          
            

          

        

        
           

        

      

       

      
        	
                 
      

              	
                (iv)

              	
                fourthly, in or towards
      payment pro rata of any other sum due but unpaid under the Finance
      Documents.

              

      

       

      
        	
                (b)

              	
                The
      Facility Agent must, if so directed by all the Lenders, vary the order set
      out in sub-paragraphs (a)(ii) to (iv) of this Clause
  15.7.

              

      

       

      
        	
                (c)

              	
                This
      Sub-clause will override any appropriation made by the
      Company.

              

      

       

      
        	
                15.8

              	
                Timing
      of payments

              

      

       

      If a
Finance Document does not provide for when a particular payment is due, that
payment will be due 30 days after receipt by the Company of a claim (accompanied
by, if available, separate invoices) signed on behalf of the relevant Finance
Party specifying the amount due, the provision of the Finance Document under
which the Company’s liability to pay arises and setting out in reasonable detail
a calculation of the amount due.

       

      
        	
                16.

              	
                REPRESENTATIONS
      AND WARRANTIES

              

      

       

      
        	
                16.1

              	
                Representations
      and warranties

              

      

       

      The
Company makes the representations and warranties set out in this Clause 16
(Representations and
warranties) to each Finance Party.

       

      
        	
                16.2

              	
                Status

              

      

       

      
        	
                (a)

              	
                It
      is a limited liability company duly organised and validly existing under
      the laws of the Republic.

              

      

       

      
        	
                (b)

              	
                It
      has the power to own its property and
Assets.

              

      

       

      
        	
                (c)

              	
                It
      has power to carry on its business as it is now being
      conducted.

              

      

       

      
        	
                16.3

              	
                Powers
      and authority

              

      

       

      It has
the power to enter into and perform, and has taken all necessary action to
authorise, the execution, delivery and performance of the Finance Documents to
which it is or will be a party and the transactions contemplated by those
Finance Documents.

       

      
        	
                16.4

              	
                Legal
      validity

              

      

       

      Each
Finance Document to which it is a party:

       

      
        	
                 
      

              	
                (a)

              	
                constitutes,
      or when executed will constitute, its legal, valid and binding obligation
      enforceable in accordance with its terms;
and

              

      

       

      
        	
                 
      

              	
                (b)

              	
                is
      in proper form for its enforcement in the Republic if accompanied by a
      certified Slovak translation;

              

      

       

      save that
enforcement of the Company’s obligations under the Finance Documents may be
affected by insolvency, bankruptcy and similar laws affecting the rights of
creditors generally.

       

      
        	
                16.5

              	
                Non-conflict

              

      

       

      The
execution, delivery and performance of the Finance Documents to which it is or
will be a party by it will not:

      
        
           

        

        
          31

          
            

          

        

        
           

        

      

       

      
        	
                 
      

              	
                (a)

              	
                violate
      in any respect any provision of:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                any
      applicable law or regulation of the Republic or any order of any
      governmental, judicial or public body or authority in the Republic binding
      on the Company; or

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                the
      laws and documents incorporating and constituting the Company;
      or

              

      

       

      
        	
                 
      

              	
                (iii)

              	
                any
      mortgage, agreement or other financial undertaking or instrument to which
      the Company is a party or which is binding upon or any Assets of the
      Company; or

              

      

       

      
        	
                 
      

              	
                (b)

              	
                to
      the best of the Company’s knowledge result in the creation or imposition
      of any Security Interest on any Assets of the Company pursuant to the
      provisions of any mortgage, agreement or other undertaking or instrument
      to which the Company is a party or which is binding upon
    it.

              

      

       

      
        	
                16.6

              	
                No
      default

              

      

       

      No
Default is outstanding.

       

      
        	
                16.7

              	
                Authorisations

              

      

       

      All
authorisations and other requirements of governmental, judicial and public
bodies and authorities required by any member of the Group or advisable in
connection with the execution, delivery, performance, validity and
enforceability of the Finance Documents have been obtained or effected and are
in full force and effect.

       

      
        	
                16.8

              	
                Litigation

              

      

       

      Except to
the extent as disclosed in writing to the Facility Agent:

       

      
        	
                 
      

              	
                (a)

              	
                there
      is no litigation, arbitration or administrative proceedings relating to
      any member of the Group that is material to the Company, the same are not
      current or pending or, to the knowledge of the Company, threatened;
      and

              

      

       

      
        	
                 
      

              	
                (b)

              	
                no
      litigation, arbitration or administrative proceedings are current or
      pending or, to the knowledge of the Company, threatened, which would
      reasonably be expected to have a material adverse effect on the ability of
      the Company to perform its obligations under the Finance
      Documents.

              

      

       

      
        	
                16.9

              	
                Title

              

      

       

      Except to
the extent disclosed in writing to the Facility Agent, it has valid leases or
good and marketable title to all its material Fixed Assets which are reflected
in the most recent audited consolidated financial statements of the Group
delivered to the Facility Agent under Clause 16.15 (Financial statements),
subject to any disposal permitted under Clause 18.6 (Disposals) and to no Security
Interest securing Financial Indebtedness over such Fixed Assets, except any
Permitted Security Interest.

       

      
        	
                16.10

              	
                Borrowing
      limits

              

      

       

      The
borrowing of the full amount available under this Agreement will not cause any
limit on its borrowing or other powers or on the exercise of such powers by its
board of directors whether imposed by the Company's Articles of Association or
similar document or by statute, regulation, or agreement, to be
exceeded.

      
        
           

        

        
          32

          
            

          

        

        
           

        

      

       

      
        	
                16.11

              	
                Immunity

              

      

       

      Subject
to any general provisions of law with respect to immunity of certain assets from
attachment and from execution, referred to in any legal opinion required under
this Agreement, it is not entitled to claim immunity from suit, attachment,
enforcement or other legal process in the Republic.

       

      
        	
                16.12

              	
                Solvency

              

      

       

      
        	
                (a)

              	
                It
      is not insolvent (in Slovak: v úpadku);
      and

              

      

       

      
        	
                (b)

              	
                it
      has not taken any action nor, so far as it is aware have any steps been
      taken or legal proceedings been started or threatened against it for
      winding-up, dissolution, reorganisation, or bankruptcy the enforcement of
      any encumbrance over its assets or for the appointment of a receiver,
      administrative receiver or administrator, trustee or similar officer of it
      or of any or all of its assets or
revenues.

              

      

       

      
        	
                16.13

              	
                Information

              

      

       

      
        	
                (a)

              	
                All
      factual information provided in writing by an officer of any member of the
      Group, U. S. Steel or any Subsidiary of U. S. Steel to the Finance Parties
      in connection with the Finance Documents was true and accurate in all
      material respects as at its date or (if appropriate) as at the date (if
      any) at which it is stated to be given by that
  person.

              

      

       

      
        	
                (b)

              	
                Nothing
      was omitted from the information referred to in paragraph (a) of this
      Clause 16.13 that, if disclosed, would make that information untrue or
      misleading in any material respect.

              

      

       

      
        	
                (c)

              	
                Nothing
      has occurred since the date of the information referred to in paragraph
      (a) of this Clause 16.13 that, if disclosed, would make that information
      untrue or mislead in any material
respect.

              

      

       

      
        	
                16.14

              	
                No
      notarial deed

              

      

       

      No member
of the Group has created any notarial deed (as referred to in section 41(2) of
the Slovak Act No. 233/1995 Coll. as amended or section 274(e) of the Slovak Act
No. 99/1963 Coll., in its wording up to 31 August 2005 respectively) in relation
to any Financial Indebtedness.

       

      
        	
                16.15

              	
                Financial
      statements

              

      

       

      Its
audited consolidated financial statements most recently delivered to the
Facility Agent (which, at the date of this Agreement, are the financial
statements of the Company for the year ended 31 December 2009):

       

      
        	
                 
      

              	
                (a)

              	
                have
      been prepared in accordance with accounting principles and practices
      generally accepted in its jurisdiction of incorporation, consistently
      applied; and

              

      

       

      
        	
                 
      

              	
                (b)

              	
                fairly
      represent its consolidated financial condition as at the date to which
      they were drawn up,

              

      

       

      except,
in each case, as disclosed to the contrary in those financial
statements.

      
        
           

        

        
          33

          
            

          

        

        
           

        

      

       

      
        	
                16.16

              	
                Slovak
      Banking Act

              

      

       

      
        	
                (a)

              	
                It
      represents that it is not a person having any special relationship (osobitný
      vzťah) as defined in the Slovak Act No. 483/2001 Coll., as amended,
      to any Lender.

              

      

       

      
        	
                (b)

              	
                When
      making any payment under or in connection with any Finance Document, it
      will use solely the funds owned by
it.

              

      

       

      
        	
                (c)

              	
                It
      is entering into each Finance Document as a principal and not as agent
      and, in its own name on its own
account.

              

      

       

      
        	
                16.17

              	
                ERISA

              

      

       

      Each Plan
of the Company and of each ERISA Affiliate of the Company complies in all
material respects with all applicable requirements of law and
regulation.  No Reportable Event has occurred with respect to any
Plan, and no steps have been taken to terminate any Plan. Neither the Company
nor any of its ERISA Affiliates has had a complete or partial withdrawal from
any Multiemployer Plan (as defined by ERISA) or initiated any steps to do
so.

       

      
        	
                16.18

              	
                Margin
      Regulations

              

      

       

      Neither
the Company nor any of its Subsidiaries is engaged principally, or as one of its
important activities, in the business of extending credit for the purpose of
purchasing or carrying Margin Stock.

       

      
        	
                16.19

              	
                Centre
      of Main Interests

              

      

       

      Its
Centre of Main Interests is situated in its jurisdiction of incorporation and it
has no Establishment in any other jurisdiction.

       

      
        	
                16.20

              	
                Material
      adverse change

              

      

       

      Since 31
December 2009, there has not been any material adverse change in the business,
Assets, regulation or financial condition of the Company that would reasonably
be expected to have a material adverse effect on the Company's ability to
perform its obligations under the Finance Documents.

       

      
        	
                16.21

              	
                Times
      for making representations and
warranties

              

      

       

      
        	
                (a)

              	
                The
      Company makes the representations and warranties set out in this Clause on
      the date of this Agreement.

              

      

       

      
        	
                (b)

              	
                Unless
      a representation and warranty is expressed to be given at a specific date,
      each representation and warranty is deemed to be repeated by the Company
      on the date of each Request and the first day of each Term except that the
      representations and warranties in Clause 16.5(a)(iii) and (b) (Non-conflict), 16.8(a)
      (Litigation) and
      16.17 (ERISA)
      shall not be repeated by the
Company.

              

      

       

      
        	
                (c)

              	
                When
      the representation and warranty in Clause 16.6 (No default) is repeated
      on a Request for a Rollover Loan or the first day of a Term for a Loan
      (other than the first Term for that Loan), the reference to a Default will
      be construed as a reference to an Event of
  Default.

              

      

       

      
        	
                (d)

              	
                When
      a representation and warranty is repeated, it is applied to the
      circumstances existing at the time of
  repetition.

              

      

      
        
           

        

        
          34

          
            

          

        

        
           

        

      

       

      
        	
                17.

              	
                INFORMATION
      COVENANTS

              

      

       

      
        	
                17.1

              	
                Duration

              

      

       

      The
undertakings in this Clause 17 (Information Covenants) remain
in force from the date of this Agreement for so long as any amount is or may be
outstanding under any Finance Document.

       

      
        	
                17.2

              	
                Financial
      Information

              

      

       

      The
Company shall furnish to the Facility Agent in sufficient copies for all
Lenders:

       

      
        	
                 
      

              	
                (a)

              	
                the
      annual audited unconsolidated financial statements of the Company
      including the report of independent auditors and accompanying notes for
      each of its financial years as soon as practicable (and in any event
      within 30 days from the date when the consolidated financial statements
      are required to be prepared by
law),

              

      

       

      and

       

      the
annual audited consolidated financial statements of the Group including the
report of independent auditors and accompanying notes for each of its financial
years as soon as practicable (and in any event within 210 days after the end of
each of its financial years),

       

      such
financial statements:

       

      
        	
                 
      

              	
                (i)

              	
                to
      be prepared in accordance with the International Financial Reporting
      Standards consistently applied;

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                to
      be audited by an internationally recognised firm of
      accountants;

              

      

       

      
        	
                 
      

              	
                (iii)

              	
                to
      give a true and fair view of the financial condition of the Company or
      Group (as applicable) and the result of its operations for the period
      ended on the date to which such financial statements were prepared;
      and

              

      

       

      
        	
                 
      

              	
                (iv)

              	
                signed
      by the chief financial officer (or equivalent), or by two senior officers
      of the Company;

              

      

       

      
        	
                 
      

              	
                (b)

              	
                the
      annual unaudited consolidated balance sheet and income statements of the
      Group to be prepared in accordance with USGAAP consistently applied,
      annually, i.e. for each of its financial years as soon as practicable (and
      in any event within 120 days after the end of each of its financial years)
      certified by the chief financial officer (or equivalent) of the Company;
      and

              

      

       

      
        	
                 
      

              	
                (c)

              	
                the
      quarterly unaudited consolidated financial statements of the Group to be
      prepared in accordance with USGAAP consistently applied for the first
      three quarters (i.e. each of the quarterly periods ending on 31 March, 30
      June, and 30 September each year) of each financial year, whereas, for the
      avoidance of doubt:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                financial
      statements submitted for the quarter ending on 31 March shall contain
      financial data for the period starting on 1 January of the given financial
      year and ending on 31 March of the given financial
  year;

              

      

      
        
           

        

        
          35

          
            

          

        

        
           

        

      

       

      
        	
                 
      

              	
                (ii)

              	
                financial
      statements submitted for the quarter ending on 30 June shall contain
      financial data for the period starting on 1 January of the given financial
      year and ending on 30 June of the given financial year;
  and

              

      

       

      
        	
                 
      

              	
                (iii)

              	
                financial
      statements submitted for the quarter ending on 30 September shall contain
      financial data for the period starting on 1 January of the given financial
      year and ending on 30 September of the given financial
    year;

              

      

       

      as soon
as practicable (and in any event within 60 days after the end of the relevant
quarter) certified by the chief financial officer (or equivalent) of the
Company; and

       

      
        	
                 
      

              	
                (d)

              	
                together
      with the financial statements referred to in paragraph (a) of this Clause
      17.2, a certificate of the Company signed by the chief financial officer
      (or equivalent) of the Company
certifying:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                that
      no Event of Default has occurred (or, if it has, specifying it and the
      steps being taken to remedy it);
and

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                the
      identity of its all Subsidiaries:

              

      

       

      
        	
                 
      

              	
                (A)

              	
                whose
      total assets (being the total of fixed assets and current assets)
      (consolidated in the case of a Subsidiary which itself has one or more
      Subsidiaries) represent not less than 7.5 per cent, of the Company's total
      consolidated fixed assets: and/or

              

      

       

      
        	
                 
      

              	
                (B)

              	
                whose
      gross revenues (being gross revenues less internal revenues (excluding
      exceptionals), before operating expenses and depreciation) (consolidated
      in the case of a Subsidiary which itself has one or more Subsidiaries)
      represent not less than 7.5 per cent, of the consolidated gross revenues
      of the Group (being gross revenues (excluding exceptionals) before
      operating expenses and depreciation on a consolidated basis as shown in
      the Latest Accounts).

              

      

       

      
        	
                17.3

              	
                Information
      - miscellaneous

              

      

       

      
        	
                (a)

              	
                The
      Company shall furnish to the Facility Agent from time to time with
      reasonable promptness, such further information regarding the business and
      financial condition of the Company as the Facility Agent may reasonably
      request.

              

      

       

      
        	
                (b)

              	
                The
      Company shall promptly notify the Facility Agent of any material business
      or financial event, including without limitation, any litigation,
      arbitration, administrative or other proceedings being commenced, which
      would reasonably be expected to adversely affect its ability to perform
      its obligations under the Finance
Documents.

              

      

       

      
        	
                (c)

              	
                Subject
      to paragraph (d) of this Clause 17.3, the Company must promptly on the
      request of any Finance Party supply to that Finance Party any
      documentation or other evidence that is reasonably requested by that
      Finance Party (whether for itself, on behalf of any Finance Party or any
      prospective new Lender) to enable a Finance Party or prospective new
      Lender to carry out and be satisfied with the results of all applicable
      know your customer requirements.

              

      

       

      
        	
                (d)

              	
                The
      Company is only required to supply any information under paragraph (a) of
      this Clause 17.3, if the necessary information is not already available to
      the relevant Finance Party and the requirement arises as a result
      of:

              

      

      
        
           

        

        
          36

          
            

          

        

        
           

        

      

       

      
        	
                 
      

              	
                (i)

              	
                the
      introduction of any change in (or in the interpretation, administration or
      application of) any law or regulation made after the date of this
      Agreement;

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                any
      change in the status of the Company or any change in the composition of
      shareholders of the Company after the date of this Agreement;
      or

              

      

       

      
        	
                 
      

              	
                (iii)

              	
                a
      proposed assignment or transfer by the Lender of any of its rights and/or
      obligations under this Agreement to a person that is not a Lender before
      that assignment or transfer.

              

      

       

      
        	
                (e)

              	
                Each
      Lender must promptly on the request of the Facility Agent supply to the
      Facility Agent any documentation or other evidence that is reasonably
      required by the Facility Agent to carry out and be satisfied with the
      results of all know your customer
requirements.

              

      

       

      
        	
                (f)

              	
                The
      Company shall make its appropriate executives and employees available for
      a conference call with the Finance Parties; such call to be held after the
      end of each quarter ending on 31 March, 30 June, 30 September, and 31
      December each year, as promptly as practicable after U. S. Steel issues
      its report on Form 10-Q for each such quarter or Form 10-K for such year,
      as the case may be. This conference call shall address the financial
      performance of the Company for the quarter most recently ended and include
      information regarding sales, capacity utilization, average realized price,
      operating income, depreciation, interest expense, operating cash flow,
      capex, cash balances inventory and
receivables.

              

      

       

      
        	
                17.4

              	
                Notification
      of Default

              

      

       

      
        	
                (a)

              	
                The
      Company must notify the Facility Agent of any Default (and the steps, if
      any, being taken to remedy it) promptly upon becoming aware of its
      occurrence.

              

      

       

      
        	
                17.5

              	
                Slovak
      banking regulations

              

      

       

      
        	
                (a)

              	
                Subject
      to paragraph (b) of this Clause 17.5, in case of any change to: (i) the
      amount of the Company's registered capital; or (ii) the participation
      interest(s) in the Company; or (iii) the voting rights attached to any and
      all participation interest(s) in the Company, the Company must supply to
      the Facility Agent in sufficient copies for all Lenders a list of its
      participants reflecting the situation after such change, promptly after
      the effectiveness of such change but in each case no later than within
      five Business Days after the effectiveness of such
  change.

              

      

       

      
        	
                (b)

              	
                The
      Company is not obliged to supply the list of participants under paragraph
      (a) of this Clause 17.5 if any such change concerns a participant (in
      Slovak: spoločník)
      holding: (i) a participation interest not exceeding 10 per cent. of the
      registered capital of the Company; or (ii) voting rights not exceeding 10
      per cent. of all voting rights in the
Company.

              

      

       

      
        	
                (c)

              	
                For
      the purposes of this Clause, a list of participants
      means a list of persons (whether individuals or legal entities) holding:
      (i) a participation interest exceeding 10 per cent. of the registered
      capital of the Company; or (ii) voting rights exceeding 10 per cent. of
      all voting rights in the Company,
containing:

              

      

       

      
        	
                 
      

              	
                (A)

              	
                in
      case of individuals, the name, family name, business name, identification
      number or birth certificate number, permanent address or place of business
      (if different from the permanent address) of that participant;
      and

              

      

       

      
        	
                 
      

              	
                (B)

              	
                in
      case of legal entities, the business name, the legal form, identification
      number and the registered seat of that
  participant.

              

      

      
        
           

        

        
          37

          
            

          

        

        
           

        

      

       

      
        	
                18.

              	
                GENERAL
      COVENANTS

              

      

       

      
        	
                18.1

              	
                Authorisations

              

      

       

      The
Company shall obtain and promptly renew from time to time all authorisations as
may be required under any applicable law or regulation to enable it to perform
its obligations under the Finance Documents, or required for the validity or
enforceability of any Finance Document, shall comply with the terms of the same
and will ensure the availability and transferability of sufficient foreign
exchange to enable it to comply with its obligations under the Finance
Documents.

       

      
        	
                18.2

              	
                Corporate
      existence

              

      

       

      
        	
                (a)

              	
                The
      Company shall maintain its corporate existence and its right to carry on
      its operations and will acquire, maintain and renew all rights, licences,
      concessions, contracts, powers, privileges, leases, lands, sanctions and
      franchises necessary or useful for the conduct of its operations except,
      in each case, where the failure to do so would not reasonably be
      expected  to materially adversely affect the Company's ability
      to perform its obligations under the Finance
  Documents.

              

      

       

      
        	
                (b)

              	
                The
      Company shall not:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                change
      its name; or

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                change
      its financial year end from 31
December.

              

      

       

      
        	
                18.3

              	
                Insurance

              

      

       

      The
Company shall effect and maintain such insurance over and in respect of its
Assets and business covering such risks and in such amounts as U. S. Steel
maintains from time to time with respect to other similar steel-making
facilities owned by U. S. Steel, subject to such deductibles and other forms of
self-insurance as from time to time are generally applicable to such other
steel-making facilities provided such coverage is available to the Company on
similar or better terms.

       

      
        	
                18.4

              	
                Pari
      passu

              

      

       

      The
Company shall procure that its obligations under the Finance Documents do and
will constitute its direct, unconditional, unsecured, unsubordinated and general
obligations and do and will rank at least pari passu with all other
present and future unsecured and unsubordinated Financial Indebtedness issued,
created or assumed by it other than amounts which are afforded priority by
applicable law.

       

      
        	
                18.5

              	
                Negative
      pledge

              

      

       

      The
Company shall not without the prior consent of the Facility Agent in writing,
create, assume or permit to exist any Security Interest over all or any of its
Assets to secure Financial Indebtedness other than a Permitted Security
Interest.

       

      
        	
                18.6

              	
                Disposals

              

      

       

      
        	
                (a)

              	
                Except
      with the prior consent of the Facility Agent in writing or as provided in
      paragraph (b) of this Clause 18.6, the Company shall not either in a
      single transaction or in a series of transactions whether related or not
      and whether voluntary or involuntary, sell, transfer, grant or lease or
      otherwise dispose of (in each case whether conditionally or otherwise) any
      of its Fixed Assets other than Permitted
  Disposals.

              

      

      
        
           

        

        
          38

          
            

          

        

        
           

        

      

       

      
        	
                (b)

              	
                Notwithstanding
      paragraph (a) of this Clause 18.6, in any financial year
      of the Company, Fixed Assets having an aggregate book value in, or
      included for the purposes of, the Latest Accounts, not exceeding the
      aggregate of 30 per cent. of all Fixed Assets (as shown in or included for
      the purposes of the Latest Accounts) may be disposed of where the disposal
      is on arm's length commercial terms; provided, however, that in no case
      shall the Company be permitted to dispose of more than 50 per cent of all
      Fixed Assets (as shown in or included for purpose of the consolidated
      financial statement of the Company for the one year period ended 31
      December 2009).

              

      

       

      
        	
                18.7

              	
                Mergers

              

      

       

      The
Company shall not, without the prior consent of the Facility Agent in writing,
enter into any merger or other arrangement of a similar nature other than a
Permitted Merger.

       

      
        	
                18.8

              	
                Change
      of business

              

      

       

      Except
with the prior consent of the Facility Agent in writing, the Company shall not
make or threaten to make any substantial change in its business as conducted on
the date of this Agreement.

       

      
        	
                18.9

              	
                Environmental
      compliance

              

      

       

      Except to
the extent disclosed in writing to the Facility Agent, the Company shall comply
with applicable Environmental Law except where failure to do so would not
reasonably be expected to have a material adverse effect on the ability of the
Company to perform its obligations under the Finance Documents.  For
this purpose, Environmental
Law means:

       

      
        	
                 
      

              	
                (a)

              	
                all
      environmental authorisations applicable to the Company;
  and

              

      

       

      
        	
                 
      

              	
                (b)

              	
                all
      other applicable environmental laws, rules and regulations concerning the
      protection of human health or the environment or the transportation of any
      substance capable of causing harm to man or any other living organism or
      the environment or public health or welfare, including, without
      limitation, hazardous, toxic, radioactive or dangerous
    waste.

              

      

       

      
        	
                18.10

              	
                Borrowing

              

      

       

      The
Company shall not, and the Company shall procure that no member of the Group
shall incur any Financial Indebtedness other than:

       

      
        	
                 
      

              	
                (a)

              	
                Financial
      Indebtedness not exceeding €600,000,000 (or its equivalent) in aggregate
      (including amounts borrowed under the Finance
  Documents);

              

      

       

      
        	
                 
      

              	
                (b)

              	
                Financial
      Indebtedness upon terms approved by the Facility Agent acting on the
      instructions of the Majority
Lenders;

              

      

       

      
        	
                 
      

              	
                (c)

              	
                currency
      and commodity hedging used only to mitigate the risks relating to
      fluctuations in currencies and commodity prices, provided each such
      hedging arrangement is entered into for a period no longer than 18
      months;

              

      

       

      
        	
                 
      

              	
                (d)

              	
                for
      the avoidance of doubt, operating lease
  obligations;

              

      

      
        
           

        

        
          39

          
            

          

        

        
           

        

      

       

      
        	
                 
      

              	
                (e)

              	
                for
      the avoidance of doubt, trade payables and other contractual obligations
      to suppliers and customers in the ordinary course of
    trading;

              

      

       

      
        	
                 
      

              	
                (f)

              	
                debt
      subordinated to the Loans under subordination agreements acceptable to the
      Facility Agent; and

              

      

       

      
        	
                 
      

              	
                (g)

              	
                any
      refinancing of any of the foregoing up to the same principal
      amount.

              

      

       

      
        	
                18.11

              	
                No
      notarial deed

              

      

       

      The
Company shall not and the Company shall procure that no other member of the
Group will, create any notarial deed (as referred to in section 41(2) of the
Slovak Act No. 233/1995 Coll., as amended) in relation to any Financial
Indebtedness.

       

      
        	
                18.12

              	
                No
      Margin Stock

              

      

       

      The
Company may not:

       

      
        	
                 
      

              	
                (a)

              	
                extend
      credit for the purpose, directly or indirectly, of buying or carrying
      Margin Stock; or

              

      

       

      
        	
                 
      

              	
                (b)

              	
                use
      any Loan or allow any Loan to be used, directly or indirectly, to buy or
      carry Margin Stock or for any other purpose in violation of the Margin
      Regulations.

              

      

       

      
        	
                18.13

              	
                Centre
      of Main Interests

              

      

       

      The
Company must not cause or allow its registered office or Centre of Main
Interests to be in, or maintain an Establishment in, any jurisdiction other than
its jurisdiction of incorporation.

       

      
        	
                19.

              	
                DEFAULT

              

      

       

      
        	
                19.1

              	
                Events
      of Default

              

      

       

      Each of
the events set out in Clauses 19.2 (Non-payment) to 19.10 (Ownership of the Company)
(both inclusive) is an Event of Default (whether or not caused by any reason
whatsoever outside the control of the Company or any other person).

       

      
        	
                19.2

              	
                Non-payment

              

      

       

      The
Company does not pay on the due date any amount payable by it under the Finance
Documents at the place at and in the currency in which it is expressed to be
payable and (if the failure to pay is caused solely by technical or
administrative error) it is not remedied within five Business Days of its due
date.

       

      
        	
                19.3

              	
                Breach
      of other obligations

              

      

       

      The
Company fails to comply with any of its obligations under the Finance Documents
(other than those referred to in Clause 19.2 (Non-payment)) and the failure
to comply (if it is capable of remedy) remains unremedied for 30 days after the
earlier of:

       

      
        	
                 
      

              	
                (a)

              	
                the
      day when the Facility Agent gives the Company notice of the failure to
      comply; and

              

      

       

      
        	
                 
      

              	
                (b)

              	
                the
      day when the Company became aware of the failure to
  comply.

              

      

      
        
           

        

        
          40

          
            

          

        

        
           

        

      

    

    
       

      
        	
                19.4

              	
                Misrepresentation

              

      

       

      Any
representation, warranty or statement made or repeated in the Finance Documents
or in any written certificate or statement delivered, made or issued by or on
behalf of the Company under the Finance Documents or in connection with the
Finance Documents shall at any time be incorrect in any respect when so made or
repeated or deemed to be made or repeated and the circumstances giving rise to
such misrepresentation would reasonably be expected to have a material adverse
effect on the ability of the Company to perform its obligations under the
Finance Documents.

       

      
        	
                19.5

              	
                Insolvency/enforcement

              

      

       

      
        	
                (a)

              	
                Any
      action shall be taken by the Company or one of its Affiliates for the
      dissolution or termination of existence or liquidation of the Company;
      or

              

      

       

      
        	
                (b)

              	
                an
      application by the Company for bankruptcy (konkurz), restructuring
      (reštrukturalizácia) or
      moratorium, or an arrangement with creditors of the Company is entered
      into, or any other proceeding or arrangement by which the Assets of the
      Company are submitted to the control of its creditors occurs or is entered
      into; or

              

      

       

      
        	
                (c)

              	
                the
      Company is adjudged bankrupt pursuant to a final non-appealable order;
      or

              

      

       

      
        	
                (d)

              	
                there
      shall be appointed a liquidator, trustee, administrator, receiver or
      similar officer of the Company or a receiver of all or substantially all
      of the Assets of the Company; or

              

      

       

      
        	
                (e)

              	
                all
      or substantially all of the Assets of the Company shall be attached or
      distrained upon or the same shall become subject at any time to any order
      of a court or other process and such attachment, distraint, order or
      process shall remain in effect and shall not be discharged within thirty
      days; or

              

      

       

      
        	
                (f)

              	
                the
      Company shall become insolvent (in Slovak: v úpadku) or be
      declared insolvent by a competent governmental or judicial authority or
      shall admit in writing its inability to pay its debts as they fall due;
      or

              

      

       

      
        	
                (g)

              	
                a
      moratorium shall be made or declared in respect of all or any Financial
      Indebtedness of the Company.

              

      

       

      
        	
                19.6

              	
                Cessation
      of business

              

      

       

      The
Company ceases or threatens to cease to carry on the whole or a substantial part
of its business, save as permitted by Clause  18.6 (Disposals) and Clause 18.7
(Mergers).

       

      
        	
                19.7

              	
                Revocation
      of authorisation

              

      

       

      
        	
                (a)

              	
                Any
      authorisation or other requirement of any governmental, judicial or public
      body or authority necessary to enable the Company under any applicable law
      or regulation to perform its obligations under the Finance Documents or
      for its businesses or required for the validity or enforceability of the
      Finance Documents shall be modified, revoked, withdrawn or withheld in any
      material respect or shall fail to remain in full force and effect for more
      than 30 days.

              

      

       

      
        	
                (b)

              	
                The
      Company fails to comply with any authorisation or other requirement set
      out in paragraph (a) of this Clause
19.7.

              

      

      
        
           

        

        
          41

          
            

          

        

        
           

        

      

       

      
        	
                19.8

              	
                Expropriation

              

      

       

      All or
any substantial part of the Assets of the Company shall be seized or
expropriated by any authority.

       

      
        	
                19.9

              	
                Unlawfulness

              

      

       

      At any
time it is unlawful for the Company to perform such of its obligations under the
Finance Document as are, in the reasonable opinion of the Facility Agent,
material.

       

      
        	
                19.10

              	
                Ownership
      of the Company

              

      

       

      The
entire commercial participation of the Company (as determined on an annualised
basis for the financial year ended 31 December 2009) after the date of this
Agreement ceases to be directly or indirectly beneficially owned by U. S. Steel,
unless such cessation results from a Permitted Merger.

       

      
        	
                19.11

              	
                Acceleration

              

      

       

      If an
Event of Default is outstanding, the Facility Agent may, and must if so
instructed by the Majority Lenders, by notice to the Company:

       

      
        	
                 
      

              	
                (a)

              	
                cancel
      all or any part of the Total Commitments;
and/or

              

      

       

      
        	
                 
      

              	
                (b)

              	
                declare
      that all or part of any amounts outstanding under the Finance Documents
      are:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                immediately
      due and payable; and/or

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                payable
      on demand by the Facility Agent acting on the instructions of the Majority
      Lenders.

              

      

       

      Any
notice given under this Subclause will take effect in accordance with its
terms.

       

      
        	
                20.

              	
                THE
      ADMINISTRATIVE PARTIES

              

      

       

      
        	
                20.1

              	
                Appointment
      and duties of the Facility Agent

              

      

       

      
        	
                (a)

              	
                Each
      Finance Party (other than the Facility Agent) irrevocably appoints the
      Facility Agent to act as its agent under and in connection with the
      Finance Documents.

              

      

       

      
        	
                (b)

              	
                Each
      Finance Party irrevocably authorises the Facility Agent
  to:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                perform
      the duties and to exercise the rights, powers and discretions that are
      specifically given to it under the Finance Documents, together with any
      other incidental rights, powers and discretions;
  and

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                enter
      into and deliver each Finance Document expressed to be entered into by the
      Facility Agent.

              

      

       

      
        	
                (c)

              	
                The
      Facility Agent has only those duties that are expressly specified in the
      Finance Documents.  Those duties are solely of a mechanical and
      administrative nature.

              

      

      
        
           

        

        
          42

          
            

          

        

        
           

        

      

       

      
        	
                20.2

              	
                Role
      of the Arranger

              

      

       

      Except as
specifically provided in the Finance Documents, the Arranger has no obligations
of any kind to any other Party in connection with any Finance
Document.

       

      
        	
                20.3

              	
                No
      fiduciary duties

              

      

       

      
        	
                (a)

              	
                Nothing
      in the Finance Documents makes an Administrative Party a trustee or
      fiduciary for any other Party or any other
  person.

              

      

       

      
        	
                (b)

              	
                No
      Administrative Party need hold in trust any moneys paid to it or recovered
      by it for a Party in connection with the Finance Documents or be liable to
      account for interest on those
moneys.

              

      

       

      
        	
                20.4

              	
                Individual
      position of an Administrative Party

              

      

       

      
        	
                (a)

              	
                If
      it is also a Lender, each Administrative Party has the same rights and
      powers under the Finance Documents as any other Lender and may exercise
      those rights and powers as though it were not an Administrative
      Party.

              

      

       

      
        	
                (b)

              	
                Each
      Administrative Party may:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                carry
      on any business with the Company or its related entities (including acting
      as an agent or a trustee for any other financing);
  and

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                retain
      any profits or remuneration it receives under the Finance Documents or in
      relation to any other business it carries on with the Company or its
      related entities.

              

      

       

      
        	
                20.5

              	
                Reliance

              

      

       

      The
Facility Agent may:

       

      
        	
                 
      

              	
                (a)

              	
                rely
      on any notice or document believed by it to be genuine and correct and to
      have been signed by, or with the authority of, the proper
      person;

              

      

       

      
        	
                 
      

              	
                (b)

              	
                rely
      on any statement made by any person regarding any matters which may
      reasonably be assumed to be within his knowledge or within his power to
      verify;

              

      

       

      
        	
                 
      

              	
                (c)

              	
                engage,
      pay for and rely on professional advisers selected by it (including those
      representing a Party other than the Facility Agent);
  and

              

      

       

      
        	
                 
      

              	
                (d)

              	
                act
      under the Finance Documents through its personnel and
    agents.

              

      

       

      
        	
                20.6

              	
                Majority
      Lenders' instructions

              

      

       

      
        	
                (a)

              	
                The
      Facility Agent is fully protected if it acts on the instructions of the
      Majority Lenders in the exercise of any right, power or discretion or any
      matter not expressly provided for in the Finance Documents.  Any
      such instructions given by the Majority Lenders will be binding on all the
      Lenders.  In the absence of instructions, the Facility Agent may
      act as it considers to be in the best interests of all the
      Lenders.

              

      

       

      
        	
                (b)

              	
                The
      Facility Agent may assume that unless it has received notice to the
      contrary, any right, power, authority or discretion vested in any Party or
      the Majority Lenders has not been
exercised.

              

      

      
        
           

        

        
          43

          
            

          

        

        
           

        

      

       

      
        	
                (c)

              	
                The
      Facility Agent may refrain from acting in accordance with the instructions
      of the Majority Lenders (or, if appropriate, the Lenders) until it has
      received security satisfactory to it, whether by way of payment in advance
      or otherwise, against any liability or loss which it may incur in
      complying with the instructions.

              

      

       

      
        	
                (d)

              	
                The
      Facility Agent is not authorised to act on behalf of a Lender (without
      first obtaining that Lender's consent) in any legal or arbitration
      proceedings in connection with any Finance
  Document.

              

      

       

      
        	
                20.7

              	
                Responsibility

              

      

       

      
        	
                (a)

              	
                No
      Administrative Party is responsible for the adequacy, accuracy or
      completeness of any statement or information (whether written or oral)
      made in or supplied in connection with any Finance
    Document.

              

      

       

      
        	
                (b)

              	
                No
      Administrative Party is responsible for the legality, validity,
      effectiveness, adequacy, completeness or enforceability of any Finance
      Document or any other document.

              

      

       

      
        	
                (c)

              	
                Without
      affecting the responsibility of the Company for information supplied by it
      or on its behalf in connection with any Finance Document, each Lender
      confirms that it:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                has
      made, and will continue to make, its own independent appraisal of all
      risks arising under or in connection with the Finance Documents
      (including, without limitation, the financial condition and affairs of the
      Company and its related entities and the nature and extent of any recourse
      against any Party or its assets);
and

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                has
      not relied exclusively on any information provided to it by any
      Administrative Party in connection with any Finance Document or agreement
      entered into in anticipation of or in connection with any Finance
      Document.

              

      

       

      
        	
                20.8

              	
                Exclusion
      of liability

              

      

       

      
        	
                (a)

              	
                The
      Facility Agent is not liable or responsible to any other Finance Party for
      any action taken or not taken by it in connection with any Finance
      Document, unless directly caused by its gross negligence or wilful
      misconduct.

              

      

       

      
        	
                (b)

              	
                No
      Party (other than the relevant Administrative Party) may take any
      proceedings against any officers, employees or agents of an Administrative
      Party in respect of any claim it might have against that Administrative
      Party or in respect of any act or omission of any kind by that officer,
      employee or agent in connection with any Finance Document.  Any
      officer, employee or agent of an Administrative Party may rely on this
      Subclause and enforce its terms under the Contracts (Rights of Third
      Parties) Act 1999.

              

      

       

      
        	
                (c)

              	
                The
      Facility Agent is not liable for any delay (or any related consequences)
      in crediting an account with an amount required under the Finance
      Documents to be paid by the Facility Agent if the Facility Agent has taken
      all necessary steps as soon as reasonably practicable to comply with the
      regulations or operating procedures of any recognised clearing or
      settlement system used by the Facility Agent for that
    purpose.

              

      

       

      
        	
                (d)

              	
                (i)

              	
                Nothing
      in this Agreement will oblige any Administrative Party to satisfy any know
      your customer requirement in relation to the identity of any person on
      behalf of any Finance Party.

              

      

      
        
           

        

        
          44

          
            

          

        

        
           

        

      

       

      
        	
                 
      

              	
                (ii)

              	
                Each
      Finance Party confirms to each Administrative Party that it is solely
      responsible for any know your customer requirements it is required to
      carry out and that it may not rely on any statement in relation to those
      requirements made by any other
person.

              

      

       

      
        	
                20.9

              	
                Default

              

      

       

      
        	
                (a)

              	
                The
      Facility Agent is not obliged to monitor or enquire whether a Default has
      occurred.  The Facility Agent is not deemed to have knowledge of
      the occurrence of a Default.

              

      

       

      
        	
                (b)

              	
                If
      the Facility Agent:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                receives
      notice from a Party referring to this Agreement, describing a Default and
      stating that the event is a Default;
or

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                is
      aware of the non-payment of any principal, interest or fee payable to a
      Finance Party (other than the Facility Agent or an Arranger) under this
      Agreement,

              

      

       

      it must
promptly notify the other Finance Parties.

       

      
        	
                20.10

              	
                Information

              

      

       

      
        	
                (a)

              	
                The
      Facility Agent must promptly forward to the person concerned the original
      or a copy of any document that is delivered to the Facility Agent by a
      Party for that person.

              

      

       

      
        	
                (b)

              	
                Except
      where a Finance Document specifically provides otherwise, the Facility
      Agent is not obliged to review or check the adequacy, accuracy or
      completeness of any document it forwards to another
  Party.

              

      

       

      
        	
                (c)

              	
                Except
      as provided in paragraphs (a) and (b) of this Clause 20.10, the Facility
      Agent has no duty:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                either
      initially or on a continuing basis to provide any Lender with any credit
      or other information concerning the risks arising under or in connection
      with the Finance Documents (including, without limitation, any information
      relating to the financial condition or affairs of the Company or its
      related entities or the nature or extent of recourse against any Party or
      its assets) whether coming into its possession before, on or after the
      date of this Agreement; or

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                unless
      specifically requested to do so by a Lender in accordance with a Finance
      Document, to request any certificate or other document from the
      Company.

              

      

       

      
        	
                (d)

              	
                In
      acting as the Facility Agent, the Facility Agent will be regarded as
      acting through its agency division which will be treated as a separate
      entity from its other divisions and departments.  Any
      information acquired by the Facility Agent which, in its opinion, is
      acquired by another division or department or otherwise than in its
      capacity as the Facility Agent may be treated as confidential by the
      Facility Agent and will not be treated as information possessed by the
      Facility Agent in its capacity as
such..

              

      

       

      
        	
                (e)

              	
                The
      Facility Agent is not obliged to disclose to any person any confidential
      information supplied to it by or on behalf of a member of the Group which
      was supplied to it solely for the purpose of evaluating whether any waiver
      or amendment is required in respect of any term of the Finance
      Documents.

              

      

      
        
           

        

        
          45

          
            

          

        

        
           

        

      

       

      
        	
                (f)

              	
                The
      Company irrevocably authorises the Facility Agent to disclose to the other
      Finance Parties any information that, in its opinion, is received by it in
      its capacity as the Facility Agent.

              

      

       

      
        	
                20.11

              	
                Indemnities

              

      

       

      
        	
                (a)

              	
                Without
      limiting the liability of the Company under the Finance Documents, each
      Lender must indemnify the Facility Agent for that Lender's Pro Rata Share
      of any loss or liability incurred by the Facility Agent in acting as the
      Facility Agent (unless the Facility Agent has been reimbursed by the
      Company under a Finance Document), except to the extent that the loss or
      liability is caused by the Facility Agent's gross negligence or wilful
      misconduct.

              

      

       

      
        	
                (b)

              	
                If
      a Party owes an amount to the Facility Agent under the Finance Documents,
      the Facility Agent may, after giving notice to that
  Party:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                deduct
      from any amount received by it for that Party any amount due to the
      Facility Agent from that Party under a Finance Document but unpaid;
      and

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                apply
      that amount in or towards satisfaction of the owed
  amount.

              

      

       

      That
Party will be regarded as having received the amount so deducted.

       

      
        	
                20.12

              	
                Compliance

              

      

       

      Each
Administrative Party may refrain from doing anything (including, without
limitation, disclosing any information) which might, in its opinion, constitute
a breach of any law or regulation or be otherwise actionable at the suit of any
person, and may do anything which, in its opinion, is necessary or desirable to
comply with any law or regulation.

       

      
        	
                20.13

              	
                Resignation
      of the Facility Agent

              

      

       

      
        	
                (a)

              	
                The
      Facility Agent may resign and appoint any of its Affiliates as successor
      Facility Agent by giving notice to the other Finance Parties and the
      Company.

              

      

       

      
        	
                (b)

              	
                Alternatively,
      the Facility Agent may resign by giving notice to the Finance Parties and
      the Company, in which case the Majority Lenders may appoint a successor
      Facility Agent.

              

      

       

      
        	
                (c)

              	
                If
      no successor Facility Agent has been appointed under paragraph (b) of
      this Clause 20.13 within 30 days after notice of resignation was
      given, the Facility Agent may appoint a successor Facility
      Agent.

              

      

       

      
        	
                (d)

              	
                The
      person(s) appointing a successor Facility Agent must, if practicable,
      consult with the Company prior to the appointment.  Any
      successor Facility Agent must have an office in the
    Republic.

              

      

       

      
        	
                (e)

              	
                The
      resignation of the Facility Agent and the appointment of any successor
      Facility Agent will both become effective only when the successor Facility
      Agent notifies all the Parties that it accepts its
      appointment.  On giving the notification the successor Facility
      Agent will succeed to the position of the Facility Agent and the term
      Facility Agent
      will thereafter mean the successor Facility
  Agent.

              

      

       

      
        	
                (f)

              	
                The
      retiring Facility Agent must, at its own
cost:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                make
      available to the successor Facility Agent those documents and records and
      provide any assistance as the successor Facility Agent may reasonably
      request for the purposes of performing its functions as the Facility Agent
      under the Finance Documents;
and

              

      

      
        
           

        

        
          46

          
            

          

        

        
           

        

      

       

      
        	
                 
      

              	
                (ii)

              	
                enter
      into and deliver to the successor Facility Agent those documents and
      effect any registrations as may be required for the transfer or assignment
      of all of its rights and benefits under the Finance Documents to the
      successor Facility Agent.

              

      

       

      
        	
                (g)

              	
                Upon
      its resignation becoming effective, this Clause will continue to
      benefit the retiring Facility Agent in respect of any action taken or not
      taken by it in connection with the Finance Documents while it was the
      Facility Agent, and, subject to paragraph (f) of this Clause 20.13,
      it will have no further obligations under any Finance
      Document.

              

      

       

      
        	
                (h)

              	
                The
      Majority Lenders may, by notice to the Facility Agent, require it to
      resign under paragraph (b) of this Clause
  20.13.

              

      

       

      
        	
                20.14

              	
                Relationship
      with Lenders

              

      

       

      
        	
                (a)

              	
                The
      Facility Agent may treat each Lender as a Lender, entitled to payments
      under this Agreement and as acting through its Facility Office(s) until it
      has received not less than five Business Days' prior notice from that
      Lender to the contrary.

              

      

       

      
        	
                (b)

              	
                The
      Facility Agent may at any time, and must if requested to do so by the
      Majority Lenders, convene a meeting of the
  Lenders.

              

      

       

      
        	
                (c)

              	
                The
      Facility Agent must keep a record of all the Parties and supply any other
      Party with a copy of the record on request.  The record will
      include each Lender's Facility Office(s) and contact details for the
      purposes of this Agreement.

              

      

       

      
        	
                20.15

              	
                Facility
      Agent's management time

              

      

       

      If the
Facility Agent requires, any amount payable to the Facility Agent by any Party
under any indemnity or in respect of any costs or expenses incurred by the
Facility Agent under the Finance Documents after the date of this Agreement may
include the cost of using its management time or other resources and will be
calculated on the basis of such reasonable daily or hourly rates as the Facility
Agent may notify to the relevant Party.  This is in addition to any
amount in respect of fees or expenses paid or payable to the Facility Agent
under any other term of the Finance Documents.

       

      
        	
                20.16

              	
                Notice
      period

              

      

       

      Where
this Agreement specifies a minimum period of notice to be given to the Facility
Agent, the Facility Agent may, at its discretion, accept a shorter notice
period.

       

      
        	
                21.

              	
                EVIDENCE
      AND CALCULATIONS

              

      

       

      
        	
                21.1

              	
                Accounts

              

      

       

      Accounts
maintained by a Finance Party in connection with this Agreement are prima facie
evidence of the matters to which they relate for the purpose of any litigation
or arbitration proceedings.

      
        
           

        

        
          47

          
            

          

        

        
           

        

      

       

      
        	
                21.2

              	
                Certificates
      and determinations

              

      

       

      Any
certification or determination by a Finance Party of a rate or amount under the
Finance Documents will be, in the absence of manifest error, conclusive evidence
of the matters to which it relates.

       

      
        	
                21.3

              	
                Calculations

              

      

       

      Any
interest or fee accruing under this Agreement accrues from day to day and is
calculated on the basis of the actual number of days elapsed and a year of 360
days or otherwise, depending on what the Facility Agent determines is market
practice.

       

      
        	
                22.

              	
                FEES

              

      

       

      
        	
                22.1

              	
                Facility
      Agent's fee

              

      

       

      The
Company must pay to the Facility Agent for its own account an agency fee in the
amount and manner agreed in the Fee Letter between the Facility Agent and the
Company.

       

      
        	
                22.2

              	
                Arrangement
      fee

              

      

       

      The
Company must pay to the Arrangers for their own account an arrangement fee in
the amount and manner agreed in the Fee Letter between the Arrangers and the
Company.

       

      
        	
                22.3

              	
                Commitment
      fee

              

      

       

      
        	
                (a)

              	
                The
      Company must pay to the Facility Agent for each Lender a commitment fee
      computed at the rate of 0.90 per cent. per annum on the unutilised,
      uncancelled amount of each Lender's
Commitment.

              

      

       

      
        	
                (b)

              	
                Accrued
      commitment fee is payable quarterly in arrear. Accrued commitment fee is
      also payable to the Facility Agent for a Lender on the date its Commitment
      is cancelled in full.

              

      

       

      
        	
                23.

              	
                INDEMNITIES
      AND BREAK COSTS

              

      

       

      
        	
                23.1

              	
                Currency
      indemnity

              

      

       

      
        	
                (a)

              	
                If
      a Finance Party receives an amount in respect of the Company's liability
      under the Finance Documents (other than by reason of the Facility Agent
      not performing its obligations under this Agreement) or if that liability
      is converted into a claim, proof, judgment or order in a currency other
      than the currency (the contractual currency) in which the liability is
      expressed to be payable under the relevant Finance
    Document:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                the
      Company shall indemnify that Finance Party as an independent obligation
      against any loss or liability arising out of or as a result of the
      conversion;

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                if
      the amount received by that Finance Party, when converted into the
      contractual currency at a market rate in the usual course of its business
      is less than the amount owed in the contractual currency, the Company
      concerned shall pay to that Finance Party an amount in the contractual
      currency equal to the deficit; and

              

      

       

      
        	
                 
      

              	
                (iii)

              	
                the
      Company shall pay to the Finance Party concerned any exchange costs and
      taxes payable in connection with any such
  conversion.

              

      

      
        
           

        

        
          48

          
            

          

        

        
           

        

      

       

      
        	
                (b)

              	
                The
      Company waives any right it may have in any jurisdiction to pay any amount
      under the Finance Documents in a currency other than that in which it is
      expressed to be payable.

              

      

       

      
        	
                23.2

              	
                Other
      indemnities

              

      

       

      
        	
                (a)

              	
                The
      Company must indemnify each Finance Party against any loss or liability
      which that Finance Party incurs as a consequence
  of:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                the
      occurrence of any Event of Default;

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                Clause
      19.11 (Acceleration);

              

      

       

      
        	
                 
      

              	
                (iii)

              	
                any
      failure by the Company to pay any amount due under a Finance Document on
      its due date, including any resulting from any distribution or
      redistribution of any amount among the Lenders under this
      Agreement;

              

      

       

      
        	
                 
      

              	
                (iv)

              	
                (other
      than by reason of negligence or default by that Finance Party) a Loan not
      being made after a Request has been delivered for that Loan;
      or

              

      

       

      
        	
                 
      

              	
                (v)

              	
                a
      Loan (or part of a Loan) not being prepaid in accordance with this
      Agreement.

              

      

       

      The
Company's liability in each case includes any loss or expense on account of
funds borrowed, contracted for or utilised to fund any amount payable under any
Finance Document or any Loan.

       

      
        	
                (b)

              	
                The
      Company must indemnify the Facility Agent against any loss or liability
      incurred by the Facility Agent as a result
of:

              

      

       

      
        
          	
                	
                  (i)

                	
                  investigating
      any event which the Facility Agent reasonably believes to be a Default;
      or

                

        

      

       

      
        
          	
                	
                  (ii)

                	
                  acting
      or relying on any notice that the Facility Agent reasonably believes to be
      genuine, correct and appropriately
authorised.

                

        

      

       

      
        	
                23.3

              	
                Break
      Costs

              

      

       

      
        	
                (a)

              	
                The
      Company must pay to each Lender its Break Costs as compensation if any
      part of a Loan is prepaid.

              

      

       

      
        	
                (b)

              	
                Break
      Costs are the amount (if any) reasonably determined by the relevant Lender
      by which:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                the
      interest which that Lender would have received for the period from the
      date of receipt of any part of its share in a Loan to the last day of the
      applicable Term for that Loan if the principal received had been paid on
      the last day of that Term;

              

      

       

      exceeds

       

      
        	
                 
      

              	
                (ii)

              	
                the
      amount which that Lender would be able to obtain by placing an amount
      equal to the amount received by it on deposit with a leading bank in the
      appropriate interbank market for a period starting on the Business Day
      following receipt and ending on the last day of the applicable
      Term.

              

      

       

      
        	
                (c)

              	
                Each
      Lender must promptly supply to the Facility Agent for the Company details
      of the amount of any Break Costs claimed by it under this Clause
      23.3.

              

      

      
        
           

        

        
          49

          
            

          

        

        
           

        

      

       

      
        	
                24.

              	
                EXPENSES

              

      

       

      
        	
                24.1

              	
                Initial
      costs

              

      

       

      
        	
                (a)

              	
                The
      Company must pay to or reimburse on demand the Facility Agent the amount
      of all reasonable and documented costs and expenses (including without
      limitation reasonable legal fees) reasonably incurred by the Facility
      Agent in connection with the negotiation, preparation, printing, entry
      into of this Agreement, and regardless of whether the Company utilises the
      facility under this Agreement.

              

      

       

      
        	
                (b)

              	
                In
      relation to the negotiation, preparation, printing, and entry into of the
      Finance Documents up until the date of this Agreement, there shall be a
      cap on legal fees of EUR 10,000 (plus VAT and reasonable and documented
      out-pf pocket disbursements, if
any).

              

      

       

      
        	
                24.2

              	
                Subsequent
      costs

              

      

       

      The
Company must pay to or reimburse on demand the Facility Agent the amount of all
costs and expenses (including legal fees) reasonably incurred by it in
connection with:

       

      
        	
                 
      

              	
                (a)

              	
                the
      negotiation, preparation, printing and entry into of any Finance Document
      (other than a Transfer Certificate) executed after the date of this
      Agreement; and

              

      

       

      
        	
                 
      

              	
                (b)

              	
                any
      amendment, waiver or consent requested by or on behalf of the Company or
      specifically allowed by this
Agreement.

              

      

       

      
        	
                24.3

              	
                Enforcement
      costs

              

      

       

      The
Company must pay to each Finance Party the amount of all costs and expenses
(including reasonable legal fees) reasonably incurred by it in connection with
the enforcement of, or the preservation of any rights under, any Finance
Document.

       

      
        	
                25.

              	
                AMENDMENTS
      AND WAIVERS

              

      

       

      
        	
                25.1

              	
                Procedure

              

      

       

      
        	
                (a)

              	
                Except
      as provided in this Clause, any term of the Finance Documents may be
      amended or waived with the agreement of the Company and the Majority
      Lenders.  The Facility Agent may effect, on behalf of any
      Finance Party, an amendment or waiver allowed under this
      Clause.

              

      

       

      
        	
                (b)

              	
                The
      Facility Agent must promptly notify the other Parties of any amendment or
      waiver effected by it under paragraph (a) of this Clause
      25.1.  Any such amendment or waiver is binding on all the
      Parties.

              

      

       

      
        	
                25.2

              	
                Exceptions

              

      

       

      
        	
                (a)

              	
                An
      amendment or waiver which relates
to:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                the
      definition of Majority
      Lenders in Clause 1.1 (Definitions);

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                an
      extension of the date of payment of any amount to a Lender under the
      Finance Documents;

              

      

       

      
        	
                 
      

              	
                (iii)

              	
                a
      reduction in the Margin or a reduction in the amount of any payment of
      principal, interest, fee or other amount payable to a Lender under the
      Finance Documents;

              

      

      
        
           

        

        
          50

          
            

          

        

        
           

        

      

       

      
        	
                 
      

              	
                (iv)

              	
                an
      increase in, or an extension of, a Commitment or the Total
      Commitments;

              

      

       

      
        	
                 
      

              	
                (v)

              	
                a
      term of a Finance Document which expressly requires the consent of each
      Lender;

              

      

       

      
        	
                 
      

              	
                (vi)

              	
                the
      right of a Lender to assign or transfer its rights or obligations under
      the Finance Documents; or

              

      

       

      
        	
                 
      

              	
                (vii)

              	
                this
      Clause 25.2,

              

      

       

      may only
be made with the consent of all the Lenders.

       

      
        	
                (b)

              	
                An
      amendment or waiver that relates to the rights or obligations of an
      Administrative Party may only be made with the consent of that
      Administrative Party.

              

      

       

      
        	
                (c)

              	
                A
      Fee Letter may be amended or waived with the agreement of the
      Administrative Party that is a party to that Fee Letter and the
      Company.

              

      

       

      
        	
                25.3

              	
                Change
      of currency

              

      

       

      If a
change in any currency of a country occurs (including where there is more than
one currency or currency unit recognised at the same time as the lawful currency
of a country), the Finance Documents will be amended to the extent the Facility
Agent (acting reasonably and after consultation with the Company) determines is
necessary to reflect the change.

       

      
        	
                25.4

              	
                Waivers
      and remedies cumulative

              

      

       

      The
rights of each Finance Party under the Finance Documents:

       

      
        	
                 
      

              	
                (a)

              	
                may
      be exercised as often as necessary;

              

      

       

      
        	
                 
      

              	
                (b)

              	
                are
      cumulative and not exclusive of its rights under the general law;
      and

              

      

       

      
        	
                 
      

              	
                (c)

              	
                may
      be waived only in writing and
specifically.

              

      

       

      Delay in
exercising or non-exercise of any right is not a waiver of that
right.

       

      
        	
                26.

              	
                CHANGES
      TO THE PARTIES

              

      

       

      
        	
                26.1

              	
                Assignments
      and transfers by the Company

              

      

       

      The
Company may not assign or transfer any of its rights and obligations under the
Finance Documents without the prior consent of all the Lenders.

       

      
        	
                26.2

              	
                Assignments
      and transfers by Lenders

              

      

       

      
        	
                (a)

              	
                Subject
      to paragraph (b) of this Clause 26.2, a Lender (the Existing Lender) may,
      with the consent of the Company (such consent not to be unreasonably
      withheld or delayed), at any time assign or transfer (including by way of
      novation) any of its rights and obligations under this Agreement to
      another bank or financial institution (the New
    Lender).

              

      

       

      
        	
                (b)

              	
                No
      consent shall be required from the Company
if:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                an
      Event of Default has occurred and is outstanding;
  or

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                if
      the proposed New Lender is an Affiliate of the Existing Lender or another
      Lender.

              

      

      
        
           

        

        
          51

          
            

          

        

        
           

        

      

       

      
        	
                (c)

              	
                A
      transfer of obligations will be effective only if
  either:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                the
      obligations are novated in accordance with the following provisions of
      this Clause; or

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                the
      New Lender confirms to the Facility Agent and the Company in form and
      substance satisfactory to the Facility Agent that it is bound by the terms
      of this Agreement as a Lender. On the transfer becoming effective in this
      manner the Existing Lender will be released from its obligations under
      this Agreement to the extent that they are transferred to the New
      Lender.

              

      

       

      
        	
                (d)

              	
                Unless
      the Facility Agent otherwise agrees, the New Lender must pay to the
      Facility Agent for its own account, on or before the date any assignment
      or transfer occurs, a fee of EUR
2,000.

              

      

       

      
        	
                (e)

              	
                Any
      reference in this Agreement to a Lender includes a New Lender but excludes
      a Lender if no amount is or may be owed to or by it under this
      Agreement.

              

      

       

      
        	
                26.3

              	
                Procedure
      for transfer by way of novations

              

      

       

      
        	
                (a)

              	
                In
      this Subclause:

              

      

       

      Transfer Date means, for a
Transfer Certificate, the later of:

       

      
        	
                 
      

              	
                (i)

              	
                the
      proposed Transfer Date specified in that Transfer Certificate;
      and

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                the
      date on which the Facility Agent executes that Transfer
      Certificate.

              

      

       

      
        	
                (b)

              	
                A
      novation is effected if:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                the
      Existing Lender and the New Lender deliver to the Facility Agent a duly
      completed Transfer Certificate; and

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                the
      Facility Agent executes it.

              

      

       

      The
Facility Agent must execute as soon as reasonably practicable a Transfer
Certificate delivered to it and which appears on its face to be in
order.

       

      
        	
                (c)

              	
                Each
      Party (other than the Existing Lender and the New Lender) irrevocably
      authorises the Facility Agent to execute any duly completed Transfer
      Certificate on its behalf.

              

      

       

      
        	
                (d)

              	
                On
      the Transfer Date:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                the
      New Lender will assume the rights and obligations of the Existing Lender
      expressed to be the subject of the novation in the Transfer Certificate in
      substitution for the Existing Lender;
and

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                the
      Existing Lender will be released from those obligations and cease to have
      those rights.

              

      

       

      
        	
                (e)

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

              

      

      
        
           

        

        
          52

          
            

          

        

        
           

        

      

       

      
        	
                26.4

              	
                Limitation
      of responsibility of Existing
Lender

              

      

       

      
        	
                (a)

              	
                Unless
      expressly agreed to the contrary, an Existing Lender makes no
      representation or warranty and assumes no responsibility to a New Lender
      for:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                the
      financial condition of the Company;
or

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                the
      legality, validity, effectiveness, enforceability, adequacy, accuracy,
      completeness or performance of:

              

      

       

      
        	
                 
      

              	
                (A)

              	
                any
      Finance Document or any other
document;

              

      

       

      
        	
                 
      

              	
                (B)

              	
                any
      statement or information (whether written or oral) made in or supplied in
      connection with any Finance Document,
or

              

      

       

      
        	
                 
      

              	
                (C)

              	
                any
      observance by the Company of its obligations under any Finance Document or
      other document,

              

      

       

      and any
representations or warranties implied by law are excluded.

       

      
        	
                (b)

              	
                Each
      New Lender confirms to the Existing Lender and the other Finance Parties
      that it:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                has
      made, and will continue to make, its own independent appraisal of all
      risks arising under or in connection with the Finance Documents
      (including, without limitation, the financial condition and affairs of the
      Company and its related entities and the nature and extent of any recourse
      against any Party or its assets) in connection with its participation in
      this Agreement; and

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                has
      not relied exclusively on any information supplied to it by the Existing
      Lender in connection with any Finance
Document.

              

      

       

      
        	
                (c)

              	
                Nothing
      in any Finance Document requires an Existing Lender
  to:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                accept
      a re-transfer from a New Lender of any of the rights and obligations
      assigned or transferred under this Clause;
or

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                support
      any losses incurred by the New Lender by reason of the non-performance by
      the Company of its obligations under any Finance Document or
      otherwise.

              

      

       

      
        	
                26.5

              	
                Costs
      resulting from change of Lender or Facility
  Office

              

      

       

      If:

       

      
        	
                 
      

              	
                (a)

              	
                a
      Lender assigns or transfers any of its rights and obligations under the
      Finance Documents or changes its Facility Office;
  and

              

      

       

      
        	
                 
      

              	
                (b)

              	
                as
      a result of circumstances existing at the date the assignment, transfer or
      change occurs, the Company would be obliged to pay a Tax Payment or an
      Increased Cost,

              

      

       

      then,
unless the assignment, transfer or change is made by a Lender to mitigate any
circumstances giving rise to the Tax Payment, Increased Cost or right to be
prepaid and/or cancelled by reason of illegality, the Company need only pay that
Tax Payment or Increased Cost to the same extent that it would have been obliged
to if no assignment, transfer or change had occurred.

      
        
           

        

        
          53

          
            

          

        

        
           

        

      

       

      
        	
                26.6

              	
                Changes
      to the Reference Banks

              

      

       

      If a
Reference Bank (or, if a Reference Bank is not a Lender, the Lender of which it
is an Affiliate) ceases to be a Lender, the Facility Agent must (in consultation
with the Company) appoint another Lender or an Affiliate of a Lender to replace
that Reference Bank.

       

      
        	
                26.7

              	
                Security
      over Lenders' rights

              

      

       

      
        	
                (a)

              	
                In
      addition to the other rights provided to Lenders under this Clause 26 and
      subject to paragraph (b) of this Clause 26.7, each Lender may at any time
      charge, assign or otherwise create Security Interest in or over (whether
      by way of collateral or otherwise) all or any of its rights under any
      Finance Document to secure obligations of that Lender including, without
      limitation:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                any
      charge, assignment or other Security Interest to secure obligations to a
      federal reserve or central bank;
and

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                in
      the case of any Lender which is a fund, any charge, assignment or other
      Security Interest granted to any holders (or trustee or representatives of
      holders) of obligations owed, or securities issued, by that Lender as
      security for those obligations or
securities,

              

      

       

      except
that no such charge, assignment or Security Interest shall:

       

      
        	
                 
      

              	
                (A)

              	
                release
      a Lender from any of its obligations under the Finance Documents or
      substitute the beneficiary of the relevant charge, assignment or Security
      Interest for the Lender as a party to any of the Finance Documents;
      or

              

      

       

      
        	
                 
      

              	
                (B)

              	
                require
      any payments to be made by the Company other than or in excess of, or
      grant to any person any more extensive rights than, those required to be
      made or granted to the relevant Lender under the Finance
      Documents.

              

      

       

      
        	
                (b)

              	
                A
      Lender may proceed pursuant to paragraph (a) of this Clause
      26.7:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                without
      consulting with, or obtaining consent from, the Company, if the charge,
      assignment, or other form of Security Interest over the rights of the
      Lender is created:

              

      

       

      
        	
                 
      

              	
                (A)

              	
                in
      favour of a federal reserve or central bank;
or

              

      

       

      
        	
                 
      

              	
                (B)

              	
                in
      connection with receipt by the Lender or any of its Affiliates of public
      aid or other form of state or international subsidy in favour
      of:

              

      

       

      
        	
                 
      

              	
                I.

              	
                any
      government, governmental entity or agency, regulatory agency,
      international or public institution or other similar entity;
      or

              

      

       

      
        	
                 
      

              	
                II.

              	
                any
      entity or institution appointed for this purpose by any institution
      specified in paragraph I. above by any such person for this purpose;
      or

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                with
      the consent of the Company (such consent not to be unreasonably withheld
      or delayed) in case other than pursuant to paragraph (i) of this Clause
      26.7(b).

              

      

      
        
           

        

        
          54

          
            

          

        

        
           

        

      

       

      
        	
                26.8

              	
                Replacement
      of a Specified Lender

              

      

       

      
        	
                (a)

              	
                Subject
      to paragraph (b) below, at any time a Lender has become and continues to
      be a Specified Lender, the Company may, by giving 10 Business Days' prior
      written notice to the Facility Agent and to such Specified Lender, replace
      such Specified Lender by requiring such Specified Lender to (and such
      Lender shall) transfer pursuant to Clause 26.2 (Assignments and transfers by
      Lenders) all (and not part only) of its rights and obligations
      under this Agreement to:

              

      

       

      
        
          	
                	
                  (i)

                	
                  another
      Lender selected by the Company that is not a Specified Lender;
      or

                

        

      

       

      
        
          	
                	
                  (ii)

                	
                  any
      other bank, financial institution, trust, fund or other entity, selected
      by the Company and acceptable to all Finance Parties (other than the
      Specified Lender that is to be replaced pursuant to this Clause
      26.8),

                

        

      

       

      (the
entity pursuant to paragraph (i) or (ii) of this Clause 26.8(a) shall be
referred to as a Replacement
Lender), which Replacement Lender confirms its willingness to assume and
does assume all the obligations or all the relevant obligations of the
transferring Specified Lender (including the assumption of the transferring
Specified Lender's participations or unfunded participations, as the case may
be, on the same basis as the transferring Specified Lender) for a purchase price
in cash payable at the time of transfer equal to the outstanding principal
amount of such Lender's participation in the outstanding Loans and all accrued
interest fees, Break Costs and other amounts payable in relation thereto under
the Finance Documents.

       

      
        	
                (b)

              	
                Any
      transfer of rights and obligations of a Specified Lender pursuant to this
      Clause 26.8 shall be subject to the following further
      conditions:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                if
      the Specified Lender to be replaced pursuant to this Clause 26.8 is also
      the Facility Agent, the Company may require such Facility Agent to resign
      pursuant to Clause 20.13(b);

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                finding
      of a suitable Replacement Lender is the responsibility of the Company and
      neither the Facility Agent nor the Specified Lender shall have any
      obligation to the Company to find a Replacement
  Lender;

              

      

       

      
        	
                 
      

              	
                (iii)

              	
                the
      transfer must take place no later than 30 Business Days after the notice
      referred to in paragraph (a) of this Clause 26.8;
  and

              

      

       

      
        	
                 
      

              	
                (iv)

              	
                in
      no event shall the Specified Lender be required to pay or surrender to the
      Replacement Lender any of the fees received by the Specified Lender
      pursuant to the Finance Documents prior to the replacement pursuant to
      paragraph (a) of this Clause 26.8 becoming
  effective.

              

      

       

      
        	
                27.

              	
                DISCLOSURE
      OF INFORMATION

              

      

       

      
        	
                (a)

              	
                Each
      Finance Party must keep confidential any information supplied to it by or
      on behalf of the Company in connection with the Finance Documents.
      However, a Finance Party is entitled to disclose
    information:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                which
      is publicly available, other than as a result of a breach by that Finance
      Party of this Clause;

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                in
      connection with any legal or arbitration
  proceedings;

              

      

      
        
           

        

        
          55

          
            

          

        

        
           

        

      

       

      
        	
                 
      

              	
                (iii)

              	
                if
      required to do so under any law or
regulation;

              

      

       

      
        	
                 
      

              	
                (iv)

              	
                to
      a governmental, banking, taxation or other regulatory
      authority;

              

      

       

      
        	
                 
      

              	
                (v)

              	
                to
      its professional advisers;

              

      

       

      
        	
                 
      

              	
                (vi)

              	
                to
      any person to whom or for whose benefit that Finance Party charges,
      assigns or otherwise creates Security Interest (or may do so) pursuant to
      Clause 26.7 (Security
      over Lenders' rights);

              

      

       

      
        	
                 
      

              	
                (vii)

              	
                to
      the extent allowed under paragraph (b) of this Clause 27;
      or

              

      

       

      
        	
                 
      

              	
                (viii)

              	
                with
      the agreement of the Company.

              

      

       

      
        	
                (b)

              	
                A
      Finance Party may disclose to an Affiliate or any person with whom it may
      enter, or has entered into, any kind of transfer, participation or other
      agreement in relation to this Agreement (a participant):

              

      

       

      
        	
                 
      

              	
                (i)

              	
                a
      copy of any Finance Document; and

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                any
      information that that Finance Party has acquired under or in connection
      with any Finance Document.

              

      

       

      However,
before a participant may receive any confidential information, it must agree
with the relevant Finance Party to keep that information confidential on the
terms of paragraph (a) of this Clause 27.

       

      
        	
                (c)

              	
                This
      Clause supersedes any previous confidentiality undertaking given by a
      Finance Party in connection with this Agreement prior to it becoming a
      Party.

              

      

       

      
        	
                28.

              	
                SET-OFF

              

      

       

      
        	
                (a)

              	
                A
      Finance Party may set off any matured obligation owed to it by the Company
      under the Finance Documents (to the extent beneficially owned by that
      Finance Party) against any obligation (whether or not matured) owed by
      that Finance Party to the Company, regardless of the place of payment,
      booking branch or currency of either obligation.  If the
      obligations are in different currencies, the Finance Party may convert
      either obligation at a market rate of exchange in its usual course of
      business for the purpose of the set-off.  If either obligation
      is unliquidated or unascertained, the Finance Party may set off in an
      amount estimated by it in good faith to be the amount of that
      obligation.

              

      

       

      
        	
                (b)

              	
                The
      Company agrees to and confirms a Lender's rights of banker's lien and
      set-off under applicable law and nothing herein shall be deemed a waiver
      or prohibition of such right.  Each Finance Party agrees to
      exercise such rights only after the Company’s failure to pay following
      proper demand and to promptly notify the Company after any such set off
      and application; provided, however, that the failure to give such notice
      shall not affect the validity of such set-off and
    application.

              

      

       

      
        	
                29.

              	
                PRO
      RATA SHARING

              

      

       

      
        	
                29.1

              	
                Redistribution

              

      

       

      If any
amount owing by the Company under this Agreement to a Finance Party (the recovering Finance Party) is
discharged by payment, set-off or any other manner other than in accordance with
this Agreement (a recovery),
then:

      
        
           

        

        
          56

          
            

          

        

        
           

        

      

       

      
        	
                 
      

              	
                (a)

              	
                the
      recovering Finance Party must, within three Business Days, supply details
      of the recovery to the Facility
Agent;

              

      

       

      
        	
                 
      

              	
                (b)

              	
                the
      Facility Agent must calculate whether the recovery is in excess of the
      amount which the recovering Finance Party would have received if the
      recovery had been received and distributed by the Facility Agent under
      this Agreement; and

              

      

       

      
        	
                 
      

              	
                (c)

              	
                the
      recovering Finance Party must pay to the Facility Agent an amount equal to
      the excess (the redistribution).

              

      

       

      
        	
                29.2

              	
                Effect
      of redistribution

              

      

       

      
        	
                (a)

              	
                The
      Facility Agent must treat a redistribution as if it were a payment by the
      Company under this Agreement and distribute it among the Finance Parties,
      other than the recovering Finance Party,
  accordingly.

              

      

       

      
        	
                (b)

              	
                When
      the Facility Agent makes a distribution under paragraph (a) of this Clause
      29.2, the recovering Finance Party will be subrogated to the rights of the
      Finance Parties that have shared in that
  redistribution.

              

      

       

      
        	
                (c)

              	
                If
      and to the extent that the recovering Finance Party is not able to rely on
      any rights of subrogation under paragraph (b) of this Clause 29.2, the
      Company will owe the recovering Finance Party a debt that is equal to the
      redistribution, immediately payable and of the type originally
      discharged.

              

      

       

      
        	
                (d)

              	
                If:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                a
      recovering Finance Party must subsequently return a recovery, or an amount
      measured by reference to a recovery, to the Company;
  and

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                the
      recovering Finance Party has paid a redistribution in relation to that
      recovery,

              

      

       

      each
Finance Party, on the request of the Facility Agent, must reimburse the
recovering Finance Party all or the appropriate portion of the redistribution
paid to that Finance Party, together with interest for the period while it held
the redistribution.  In this event, the subrogation in paragraph (b)
of this Clause 29.2 will operate in reverse to the extent of the
reimbursement.

       

      
        	
                29.3

              	
                Exceptions

              

      

       

      Notwithstanding
any other term of this Clause, a recovering Finance Party need not pay a
redistribution to the extent that:

       

      
        	
                 
      

              	
                (a)

              	
                it
      would not, after the payment, have a valid claim against the Company in
      the amount of the redistribution;
or

              

      

       

      
        	
                 
      

              	
                (b)

              	
                it
      would be sharing with another Finance Party any amount which the
      recovering Finance Party has received or recovered as a result of legal or
      arbitration proceedings, where:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                the
      recovering Finance Party notified the Facility Agent of those proceedings;
      and

              

      

      
        
           

        

        
          57

          
            

          

        

        
           

        

      

       

      
        	
                 
      

              	
                (ii)

              	
                the
      other Finance Party had an opportunity to participate in those proceedings
      but did not do so or did not take separate legal or arbitration
      proceedings as soon as reasonably practicable after receiving notice of
      them.

              

      

       

      
        	
                30.

              	
                SEVERABILITY

              

      

       

      If a term
of a Finance Document is or becomes illegal, invalid or unenforceable in any
respect under any jurisdiction, that will not affect:

       

      
        	
                 
      

              	
                (a)

              	
                the
      legality, validity or enforceability in that jurisdiction of any other
      term of the Finance Documents; or

              

      

       

      
        	
                 
      

              	
                (b)

              	
                the
      legality, validity or enforceability in other jurisdictions of that or any
      other term of the Finance
Documents.

              

      

       

      
        	
                31.

              	
                COUNTERPARTS

              

      

       

      Each
Finance Document may be executed in any number of counterparts.  This
has the same effect as if the signatures on the counterparts were on a single
copy of the Finance Document.

       

      
        	
                32.

              	
                NOTICES

              

      

       

      
        	
                32.1

              	
                Giving
      of notices

              

      

       

      All
notices or other communications under or in connection with this Agreement shall
be given in writing and, unless otherwise stated, may be made by letter or
facsimile.  Any such notice will be deemed to be given as
follows:

       

      
        	
                 
      

              	
                (a)

              	
                if
      by letter, when delivered personally or on actual receipt;
    and

              

      

       

      
        	
                 
      

              	
                (b)

              	
                if
      by facsimile, when received in legible
form.

              

      

       

      However,
a notice given in accordance with this Clause 32.1 but received on a non-working
day or after business hours in the place of receipt will only be deemed to be
given on the next working day in that place.

       

      
        	
                32.2

              	
                Addresses
      for notices

              

      

       

      
        	
                (a)

              	
                The
      address and facsimile number of the Company
are:

              

      

       

      U. S.
Steel Košice, s.r.o.

      Vstupný
areál U. S. Steel

      044 54
Košice

      The
Slovak Republic

      Attention:                    
Chief Financial Officer

      Fax:                              00421-95-673-0858

       

      and
copied to:

       

      United
States Steel Corporation

      600 Grant
Street

      Pittsburgh,
PA 15219

      Attention:                    
Assistant Treasurer - Finance & Risk Management

      Fax                               001
412 433 4756

      
        
           

        

        
          58

          
            

          

        

        
           

        

      

       

      or such
other as the Company may notify to the Facility Agent by not less than five
Business Days' notice.

       

      
        	
                (b)

              	
                The
      address and facsimile number of the Facility Agent
  are:

              

      

      

      ING Bank N. V.,
pobočka zahraničnej banky

      Jesenského
4/C

      811 02
Bratislava

      The
Slovak Republic

      

      
        
          	
                  Attention:

                	
                  Zuzana
      Chrapková / Matej Smejkal

                
	
                  With
      a copy to:

                	
                  Katarína
      Kurucová / Lucia Vladyková

                
	
                  Tel
      number:

                	
                  +421
      2 593 46 307, +421 2 593 46 324

                
	
                  Fax
      number:

                	
                  +421
      2 529 31 222

                
	
                  E-mail:

                	
                  zuzana.chrapkova@ing.sk
      / matej.smekal@ing.sk

                
	 
      	
                  katarina.kurucova@ing.sk
      / lucia.vladykova@ing.sk

                

        

      

       

      or such
other as the Facility Agent may notify to the other Parties by not less than
five Business Days' notice.

       

      
        	
                32.3

              	
                The
      Company

              

      

       

      All
formal communication under the Finance Documents to or from the Company must be
sent through the Facility Agent.

       

      
        	
                33.

              	
                LANGUAGE

              

      

       

      
        	
                (a)

              	
                Any
      notice given in connection with a Finance Document must be in
      English.

              

      

       

      
        	
                (b)

              	
                Any
      other document provided in connection with a Finance Document must
      be:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                in
      English; or

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                (unless
      the Facility Agent otherwise agrees) accompanied by a certified English
      translation.  In this case, the English translation prevails
      unless the document is a statutory or other official
    document.

              

      

       

      
        	
                34.

              	
                GOVERNING
      LAW

              

      

       

      This
Agreement is governed by English law.

       

      
        	
                35.

              	
                ENFORCEMENT

              

      

       

      
        	
                35.1

              	
                Jurisdiction

              

      

       

      
        	
                (a)

              	
                The
      English courts have jurisdiction to settle any dispute in connection with
      any Finance Document.

              

      

       

      
        	
                (b)

              	
                This
      Clause is for the benefit of the Finance Parties only.  To the
      extent allowed by law, the Finance Parties may
  take:

              

      

       

      
        
          	
                	
                  (i)

                	
                  proceedings
      in any other court; and

                

        

      

       

      
        
          	
                	
                  (ii)

                	
                  concurrent
      proceedings in any number of
jurisdictions.

                

        

      

      
        
           

        

        
          59

          
            

          

        

        
           

        

      

       

      
        	
                (c)

              	
                References
      in this Clause to a dispute in connection with a Finance Document include
      any dispute as to the existence, validity or termination of that Finance
      Document.

              

      

       

      
        	
                35.2

              	
                Service
      of process

              

      

       

      Without
prejudice to any other mode of service, the Company:

       

      
        	
                 
      

              	
                (a)

              	
                irrevocably
      appoints The London Law Agency Limited 69 Southampton Row, London WC1B
      4ET, England as its agent for
      service of process in relation to any proceedings before the English
      courts in connection with any Finance
Document;

              

      

       

      
        	
                 
      

              	
                (b)

              	
                agrees
      to maintain such an agent for service of process in England for so long as
      any amount is outstanding under this
Agreement;

              

      

       

      
        	
                 
      

              	
                (c)

              	
                agrees
      that failure by the process agent to notify the Company of the process
      will not invalidate the proceedings
concerned;

              

      

       

      
        	
                 
      

              	
                (d)

              	
                consents
      to the service of process relating to any such proceedings by the delivery
      a copy of the process at its address for the time being applying under
      Clause 32.2 (Addresses for notices);
      and

              

      

       

      
        	
                 
      

              	
                (e)

              	
                agrees
      that if the appointment of any person mentioned in paragraph (a) of
      this Clause 35.2 ceases to be effective, the Company shall immediately
      appoint a further person in England to accept service of process on its
      behalf in England and, failing such appointment within 15 days, the
      Facility Agent is entitled to appoint such a person by notice to the
      Company.

              

      

       

      
        	
                35.3

              	
                Forum
      convenience and enforcement abroad

              

      

       

      The
Company:

       

      
        	
                 
      

              	
                (a)

              	
                waives
      objection to the English courts on grounds of inconvenient forum or
      otherwise as regards proceedings in connection with a Finance Document;
      and

              

      

       

      
        	
                 
      

              	
                (b)

              	
                agrees
      that a judgment or order of an English court in connection with a Finance
      Document is conclusive and binding on it and may be enforced against it in
      the courts of any other
jurisdiction.

              

      

       

      
        	
                35.4

              	
                Non-exclusivity

              

      

       

      Nothing
in this Clause 35 limits the right of a Finance Party to bring proceedings
against the Company in connection with any Finance Document:

       

      
        	
                 
      

              	
                (a)

              	
                in
      any other court of competent jurisdiction;
or

              

      

       

      
        	
                 
      

              	
                (b)

              	
                concurrently
      in more than one jurisdiction.

              

      

       

      
        	
                35.5

              	
                Waiver
      of immunity

              

      

       

      The
Company irrevocably and unconditionally:-

       

      
        	
                 
      

              	
                (a)

              	
                agrees
      not to claim any immunity from proceedings brought by a Finance Party
      against the Company in relation to a Finance Document and to ensure that
      no such claim is made on its
behalf;

              

      

      
        
           

        

        
          60

          
            

          

        

        
           

        

      

       

      
        	
                 
      

              	
                (b)

              	
                consents
      generally to the giving of any relief or the issue of any process in
      connection with those proceedings;
and

              

      

       

      
        	
                 
      

              	
                (c)

              	
                waives
      all rights of immunity in respect of it or its
  assets.

              

      

       

      
        	
                35.6

              	
                Waiver
      of trial by jury

              

      

       

      EACH
PARTY WAIVES ANY RIGHT IT MAY HAVE TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF
ACTION IN CONNECTION WITH ANY FINANCE DOCUMENT OR ANY TRANSACTION CONTEMPLATED
BY ANY FINANCE DOCUMENT. THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO
TRIAL BY COURT.

       

      This
Agreement has been entered into on the date stated at the beginning of this
Agreement.

      
        
           

        

        
          61

          
            

          

        

        
           

        

      

    

     

    SCHEDULE
1

     

    ORIGINAL
PARTIES

    

    
      
        
          
            
              	
                      Name
      of Original Lender

                    	 	
                      Commitments

                    	 
	 
      	 	 	 
	
                      COMMERZBANK
      Aktiengesellschaft, with its registered seat at Kaiserplatz 16, 603
      11 Frankfurt am Main, Federal Republic Germany, entered in the Commercial
      Register at the District Court Frankfurt am Main under Entry HR B 32000,
      acting through its organisational unit COMMERZBANK
      Aktiengesellschaft, pobočka zahraničnej banky, Bratislava, with its
      seat at Bratislava 1, Rajská 15/A, Postcode 811 08, Ident. No.: 30847737,
      entered in the Commercial Register of the District Court Bratislava I,
      Sec. Po, Insert No. 1121/B

                    	 	€	50,000,000	 
	 
      	 	 	 	 
	
                      ING Bank N.V., with its
      registered seat at Bijlmerplein 888, 1102MG Amsterdam, The Netherlands, a
      company limited by shares, registered in the Trade Register of Chamber of
      Commerce and Industry for Amsterdam under file No. 33031431 acting through
      its organisational unit ING Bank N.V.,
      pobočka zahraničnej banky, Jesenského 4/C, 811 02 Bratislava,
      Slovak Republic, Identification No. 30 844 754, registered in the
      Commercial register maintained by the District Court of Bratislava I, in
      Section Po, inserted file No. 130/B

                    	 	€	50,000,000	 
	 
      	 	 	 	 
	
                      Slovenská
      sporiteľňa, a.s., with its registered seat at Tomášikova 48, 832 37
      Bratislava, Slovak Republic, Identification No. 00 151 653, registered in
      the Commercial register maintained by the District Court of Bratislava I,
      in Section Sa, insert No. 601/B

                    	 	€	50,000,000	 
	 
      	 	 	 	 
	
                      Citibank Europe plc,
      with its registered seat at North Wall Quay 1, Dublin 1, Republic of
      Ireland, registered with the Companies Registration Office under No.
      132781, acting through its organisational unit Citibank
      Europe plc, pobočka zahraničnej banky, with its registered office
      at Mlynské nivy 43, 825 01 Bratislava, Slovak Republic, Identification No.
      36 861 260, registered in the Commercial register maintained by the
      District Court of Bratislava I, in Section Po, insert No.
      1662/B

                    	 	€	25,000,000	 
	 
      	 	 	 	 
	
                      HSBC
      Bank plc, with its
      registered office at 8 Canada Square, London, E14 5HQ, United Kingdom of
      Great Britain and Northern Ireland, registered by the Companies House
      under number 14259 and acting through its organisational unit HSBC
      Bank plc, pobočka
      zahraničnej banky, with its registered office at Europeum Business
      Center, Suché Mýto 1, 811 03 Bratislava, Identification number (IČO): 35
      929 979, registered in the Commercial Register kept by the District Court
      Bratislava I, section: Po, insert No.:
      1258/B

                    	 	€	25,000,000	 
	 
      	 	 	 	 
	
                      Total
      Commitments

                    	 	€	200,000,000	 

            

          

        

      

    

    
      
         

      

      
        62

        
          

        

      

      
         

      

    

    
       

      SCHEDULE
2

       

      CONDITIONS
PRECEDENT DOCUMENTS

       

      
        
          	
                  1.

                	
                  A
      copy of the constitutional documents of the Company.

                
	 
      	 
      
	
                  2.

                	
                  A
      specimen of the signature of each person authorised to sign this Agreement
      on behalf of the Company and to sign and/or despatch all documents and
      notices to be signed and/or despatched by the Company under or in
      connection with this Agreement.

                
	 
      	 
      
	
                  3.

                	
                  Evidence
      that the process agent referred to in Clause 35.2 (Service of process) has
      accepted its appointment under that Clause.

                
	 
      	 
      
	
                  4.

                	
                  An
      extract from the Company's entry in the Commercial Registry,
      sealed/stamped by the Košice Commercial Registry, as at a date no earlier
      than one week prior to the date of the Agreement and certified by an
      authorised signatory of the Company, as at a date no earlier than the date
      of this Agreement, confirming the accuracy of all facts shown in the
      extract, except with respect to the attached amendments which have been
      filed with the Commercial Registry.

                
	 
      	 
      
	
                  5.

                	
                  A
      copy of any other authorisation or other document, opinion or assurance
      that the Facility Agent, acting reasonably, considers to be necessary or
      desirable in connection with the entry into and performance of, and the
      transactions contemplated by, any Finance Document or for the validity and
      enforceability of any Finance Document.

                
	 
      	 
      
	
                  6.

                	
                  A
      certificate of an authorised signatory of U. S. Steel certifying that the
      Company is a 100% owned Subsidiary of U. S. Steel.

                
	 
      	 
      
	
                  7.

                	
                  A
      certificate of an authorised signatory of the Company certifying that each
      copy document delivered under this Schedule 2 is correct, complete and in
      full force and effect as at a date no earlier than the date of this
      Agreement.

                
	 
      	 
      
	
                  8.

                	
                  (a)

                	
                  A
      legal opinion of a legal adviser to the Company in the Republic,
      substantially in the form of Schedule 5, addressed to the Finance
      Parties;

                
	 
      	 
      	 
      
	 
      	
                  (b)

                	
                  a
      legal opinion of Morley Allen & Overy Iroda, Budapest, legal advisers
      to the Lenders in relation to the laws of England, substantially in the
      form of Schedule 6, addressed to the Finance Parties;
  and

                
	 
      	 
      	 
      
	 
      	
                  (c)

                	
                  a
      legal opinion of Allen & Overy Bratislava, s.r.o., legal advisers to
      the Lenders in relation to the laws of the Republic, substantially in the
      form of Schedule 7, addressed to the Finance Parties;
  and

                
	 
      	 
      	 
      
	
                  9.

                	
                  Fee
      Letter in relation to the arrangement fees.

                
	 
      	 
      
	
                  10.

                	
                  Fee
      Letter in relation to the Facility Agent's fees.

                
	 
      	 
      
	
                  11.

                	
                  Evidence
      that all fees and expenses then due and payable from the Company under
      this Agreement have been or will be paid by the first Utilisation
      Date.

                

        

      

      
        
           

        

        
          63

          
            

          

        

        
           

        

      

       

      SCHEDULE
3

       

      FORM
OF REQUEST

       

      
        	
                To:

              	
                ING
      Bank N.V., pobočka zahraničnej
      banky as Facility Agent

              

      

       

      
        	
                From:

              	
                U.S.
      Steel Košice, s.r.o.

              

      

       

      
        	
                Date:

              	
                [                               ]

              

      

       

      U.
S. Steel Košice, s.r.o. - €200,000,000 Credit Agreement

      dated 6 August, 2010 (the Agreement)

       

      
        	
                1.

              	
                We
      refer to the Agreement.  This is a
  Request.

              

      

       

      
        	
                2.

              	
                We
      wish to borrow a Loan on the following
terms:

              

      

       

      
        
          
            	 	
                    (a)

                  	
                    Utilisation
      Date:

                  	
                    [

                  	
                    ];

                  
	 	 
      	 
      	 
      	 
      
	 	
                    (b)

                  	
                    Amount/currency:

                  	
                    [

                  	
                          
      ];

                  
	 	 
      	 
      	 
      	 
      
	 	
                    (c)

                  	
                    Term:

                  	
                    [

                  	
                          
      ].

                  

          

        

      

       

      
        
          	
                  3.

                	
                  Our
      payment instructions
      are:               
       [                                    ].

                

        

      

       

      
        	
                4.

              	
                We
      confirm that each condition precedent under the Agreement that must be
      satisfied on the date of this Request is so
  satisfied.

              

      

       

      
        	
                5.

              	
                This
      Request is irrevocable.

              

      

       

      
        	
                6.

              	
                With
      reference to Clause 17.5, we [confirm that no change referred to in Clause
      17.5 has occurred since [the date of the Agreement/the date of our
      preceding Request]1
      /attach the up-to-date list of participants of the Company].2

              

      

       

      By:

       

      [                               ]

      
         

        
          

        

      

      
        	
                1

              	
                Delete
      as applicable.

              

      

      
        	
                2

              	
                Delete
      as applicable.

              

      

      
        
           

        

        
          64

          
            

          

        

        
           

        

      

       

      SCHEDULE
4

       

      FORM
OF TRANSFER CERTIFICATE

       

      
        	
                To:

              	
                ING
      Bank N.V., pobočka zahraničnej
      banky as Facility Agent

              

      

       

      
        	
                From:

              	
                [EXISTING
      LENDER] (the Existing
      Lender) and [NEW LENDER] (the New
    Lender)

              

      

       

      
        	
                Date:

              	
                [          ]

              

      

       

      U.
S. Steel Košice, s.r.o. - €200,000,000 Credit Agreement

      dated 6 August, 2010 (the Agreement)

       

      We refer
to the Agreement.  This is a Transfer Certificate.

       

      
        	
                1.

              	
                The
      Existing Lender transfers by novation to the New Lender the Existing
      Lender's rights and obligations referred to in the following Schedule in
      accordance with the terms of the
Agreement.

              

      

       

      
        	
                2.

              	
                The
      proposed Transfer Date is
      [          ].

              

      

       

      
        	
                3.

              	
                The
      administrative details of the New Lender for the purposes of the Agreement
      are set out in the Schedule.

              

      

       

      
        	
                4.

              	
                [The
      New Lender is a UK Non-Bank
Lender.]

              

      

       

      
        	
                5.

              	
                The
      New Lender expressly acknowledges the limitations on the Existing Lender's
      obligations in respect of this Transfer Certificate contained in the
      Agreement.

              

      

       

      
        	
                6.

              	
                This
      Transfer Certificate may be executed in any number of counterparts and
      this has the same effect as if the signatures on the counterparts were on
      a single copy of the Transfer
Certificate.

              

      

       

      
        	
                7.

              	
                This
      Transfer Certificate is governed by English
law.

              

      

      
        
           

        

        
          65

          
            

          

        

        
           

        

      

       

      THE
SCHEDULE

       

      Rights
and obligations to be transferred by novation

      [insert
relevant details, including applicable Commitment (or part)]

       

      Administrative
details of the New Lender

      [insert
details of Facility Office, address for notices and payment details
etc.]

      

      
        	
                [EXISTING
      LENDER]

              	
                [NEW
    LENDER]

              
	 
      	 
      
	
                By:

              	
                By:

              

      

       

      The
Transfer Date is confirmed by the Facility Agent as
[          ].

       

      ING Bank N.V.,
pobočka zahraničnej banky

       

      By:

       

      Accepted:

       

      U. S.
Steel Košice, s.r.o.

       

      By: ________________

       

      By: ________________

       

      Note:
It is the responsibility of each New Lender to ascertain whether any other
document or formality is required to perfect the transfer contemplated by this
Transfer Certificate or to take the benefit of any interest in any
security.

      
        
           

        

        
          66

          
            

          

        

        
           

        

      

       

      SCHEDULE
5

       

      FORM
OF LEGAL OPINION OF LEGAL ADVISER TO THE COMPANY

       

      [letterhead of the United States
Steel Corporation]

       

      Pittsburgh,
[date]

       

      
        	
                To:

              	
                The
      Finance Parties named as original parties to the Agreement (as defined
      below)

              

      

       

      Ladies
and Gentlemen:

       

      
        	
                Re:

              	
                €200,000,000 Credit Agreement
      dated 6 August 2010 with U. S. Steel Košice, s.r.o. as the borrower
      (the "Agreement")

              

      

       

      I am
currently a General Attorney International of United States Steel Corporation
(the "Corporation") and have been educated and practice in the Slovak Republic.
My most recent previous position was Assistant General Counsel of U. S. Steel
Košice, s.r.o., a company organized and existing under the laws of the Slovak
Republic (the "Company"). This opinion is being delivered in connection with the
execution and delivery of the Agreement.

       

      Capitalized
terms that are used in this opinion letter that are not defined have the same
meanings given to them in the Agreement.

       

      In giving
this opinion I have examined the following documents:

       

      
        	
                 
      

              	
                1.

              	
                an
      executed copy of the Agreement; and

              

      

       

      
        	
                 
      

              	
                2.

              	
                the
      following corporate documents of the
Company:

              

      

       

      
        	
                 
      

              	
                a.

              	
                an
      extract of the Company Register of the District Court Košice 1, Section
      Sro, insert No. 11711/V of [***] 2010 in respect of the
      Company;

              

      

       

      
        	
                 
      

              	
                b.

              	
                a
      copy of the foundation agreement of the Company dated 7th June 2000;
      and

              

      

       

      
        	
                 
      

              	
                c.

              	
                a
      copy of the Memorandum of Association of the Company in full wording dated
      [***].

              

      

       

      I or
persons under my supervision have examined originals or copies of all such
documents, corporate records, certificates of public officials and other
instruments and have conducted such other investigations of fact and law as they
and I have deemed necessary or advisable for purposes of this
opinion

       

      In
rendering this opinion I made the following assumptions:

       

      
        	
                 
      

              	
                1.

              	
                that
      the Agreement has been duly authorised, executed and delivered by or on
      behalf of each of the parties thereto other than the
    Company;

              

      

       

      
        	
                 
      

              	
                2.

              	
                the
      genuineness of all signatures on all documents, the authenticity and
      completeness of all documents submitted to me as originals and the
      completeness and conformity to the original documents of all documents
      submitted to me as copies; and

              

      

       

      
        
           

        

        
          67

          
            

          

        

        
           

        

      

       

      
        	
                 
      

              	
                3.

              	
                that
      the Agreement constitutes a legal, valid, binding and enforceable
      obligation of the Company in accordance with its terms under English law,
      and is binding on the Parties in accordance with English
    law.

              

      

       

      This
opinion is limited to the laws of the Slovak Republic currently in force and I
have made no investigation and no opinion is expressed or implied as to the laws
of any other jurisdiction.  I express no opinion as to matters of
fact.  This opinion is given subject to matters not disclosed to me
and about which I have no knowledge. I assume that there are no facts that would
affect the conclusions in this opinion.

       

      Based on
the foregoing and subject to the foregoing assumptions and the following
qualifications, I am of the opinion that, so far as the laws of the Slovak
Republic is concerned at the date of this opinion:

       

      
        	
                1.

              	
                Status. The Company is a
      limited liability company organised under the laws of the Slovak
      Republic.

              

      

       

      
        	
                2.

              	
                Powers and
      authority.  The Company has the corporate power and
      authority to enter into and perform the obligations expressed to be
      assumed by it under the Agreement and to borrow thereunder and has taken
      all necessary corporate action to authorise the execution and performance
      by the Company of the Agreement and the borrowing by the Company of the
      Loans.  According to Section 13(4) and 133(3) of the Slovak
      Commercial Code (Act No. 513/1991 Coll., as amended), any restriction of
      the authority of a company’s statutory body to act for the company shall
      be ineffective vis-à-vis third parties
      (any disclosure of that restriction
  notwithstanding).

              

      

       

      
        	
                3.

              	
                Execution.  The
      Agreement has been duly executed and delivered by the
    Company.

              

      

       

      
        	
                4.

              	
                Legal
      validity.  The Agreement constitutes a legal, valid,
      binding and enforceable obligation of the Company in accordance with its
      terms and (subject to the preparation of the official translation into the
      Slovak language) is in the proper form for its enforcement in the courts
      of the Slovak Republic.

              

      

       

      
        	
                5.

              	
                Non-conflict. The
      execution by the Company of the Agreement does not, and its performance of
      the Agreement will not, violate: (i) any mandatory provision of any Slovak
      law or regulation or the Constitution of the Slovak Republic; (ii) the
      constitutional documents of the Company or (iii) any other agreement,
      document or obligation that is binding upon the Company or any of its
      Assets.

              

      

       

      
        	
                6.

              	
                Consents. No
      authorisations, approvals, consents, licences, exemptions, filings,
      registrations, notarisations or other requirements of governmental,
      judicial or public bodies and authorities of the Slovak Republic are
      required in connection with the Company's entry into or performance of the
      Agreement, or for its validity or enforceability against the
      Company.

              

      

       

      
        	
                7.

              	
                Signatories. [***] and [***] have the
      right and power to execute the Agreement and to give any notices to the
      Facility Agent under the Agreement.

              

      

       

      
        	
                8.

              	
                Pari passu
      ranking.  The obligations of the Company under the
      Agreement rank at least pari passu with all its
      other present or future unsecured and unsubordinated obligations save as
      provided under mandatory provisions of Slovak
  law.

              

      

       

      
        
           

        

        
          68

          
            

          

        

        
           

        

      

       

      
        	
                9.

              	
                Borrowing limits. The
      borrowing of the full amount available under the Agreement will not cause
      any limit on the Company's borrowing or other powers or on the exercise of
      such powers by its executives, whether imposed by the Company's Memorandum
      of Association or similar document or by statute, regulation, or
      agreement, to be exceeded.

              

      

       

      
        	
                10.

              	
                Stamp duties. Except for
      court fees and sworn translators' fees payable in connection with
      proceedings to enforce the Agreement and for any applicable notarial
      charges, there are no stamp, transfer or registration fees or similar
      taxes, charges or duties payable in the Slovak Republic in connection with
      the execution or enforcement of the
Agreement.

              

      

       

      
        	
                11.

              	
                No
    immunity.

              

      

       

      
        	
                 
      

              	
                a.

              	
                The
      Company is subject to civil and commercial law with respect to its
      obligations under the Agreement, and its entry into and performance of the
      Agreement constitutes private and commercial acts;
  and

              

      

       

      
        	
                 
      

              	
                b.

              	
                neither
      the Company nor any of its assets located in the Slovak Republic enjoys
      any right of immunity from suit, attachment prior to judgment or other
      legal process in respect of its obligations under the
      Agreement.

              

      

       

      
        	
                12.

              	
                Bankruptcy. The Company
      has not been declared bankrupt and no step has been or is being taken by
      the Company nor am I aware of any other step being taken in respect of the
      Company, for bankruptcy or any similar proceedings in relation to the
      Company or any of its Assets.

              

      

       

      
        	
                13.

              	
                Application of governing
      law.  The choice of English law as the governing law of
      the Agreement would be upheld as a valid choice of law by the courts of
      the Slovak Republic.

              

      

       

      
        	
                14.

              	
                Jurisdiction.  The
      submission by the Company to the jurisdiction of the English courts under
      Clause 35 of the Agreement is a valid and binding submission to
      jurisdiction in respect of the Agreement and is not subject to
      revocation.

              

      

       

      
        	
                15.

              	
                Enforcement of foreign
      judgments. A judgment duly obtained in the English courts shall be
      recognised and enforced in the Slovak Republic
  unless:

              

      

       

      
        	
                 
      

              	
                a.

              	
                the
      matter is one within the exclusive jurisdiction of the courts of a Member
      State of the European Union other than the courts of England pursuant to
      the Council Regulation (EC) No. 44/2001 of 22 December 2000 on
      jurisdiction and the recognition and enforcement of judgments in civil and
      commercial matters, as amended; or

              

      

       

      
        	
                 
      

              	
                b.

              	
                the
      decision is not final or enforceable in the state where it has been
      issued; or

              

      

       

      
        	
                 
      

              	
                c.

              	
                the
      party against whom such judgment is sought to be enforced has been
      deprived of an opportunity to participate in the foreign proceedings,
      especially if the summons or notice of the commencement of the foreign
      proceedings has not been duly served on the party; this exception does not
      apply if the party has not filed an appeal against the foreign judgment
      which has been duly served on it or if the party has waived the
      applicability of this exception; or

              

      

       

      
        
           

        

        
          69

          
            

          

        

        
           

        

      

       

      
        	
                 
      

              	
                d.

              	
                a
      final decision in the same matter has previously been reached by a court
      of the Slovak Republic or by a foreign authority if that foreign
      authority's decision has been, or would be, enforced in the Slovak
      Republic; or

              

      

       

      
        	
                 
      

              	
                e.

              	
                recognition
      of the foreign judgment would be contrary to public policy (ordre public) of the
      Slovak Republic.

              

      

       

      
        	
                16.

              	
                Foreign currency
      judgments.  A judgment duly obtained in the courts of
      England in respect of the Agreement given in Euros, Canadian Dollars,
      Czech Korunas or USD, and being enforced in the Slovak Republic in Euros,
      Canadian Dollars, Czech Korunas or USD respectively, would be implemented
      in Euros, Canadian Dollars, Czech Korunas or USD
    respectively.

              

      

       

      This
opinion is subject to the following qualifications:

       

      
        	
                 
      

              	
                1.

              	
                The
      validity, enforceability and effectiveness of the Agreement against the
      Company are limited by all bankruptcy, insolvency, moratorium and other
      laws affecting creditors' rights
generally.

              

      

       

      
        	
                 
      

              	
                2.

              	
                References
      in this opinion to the term "enforceable" mean that each obligation or
      document is of a type and form that the Slovak courts would enforce. It is
      not certain, however, that each obligation or document will be enforced in
      accordance with its terms in every circumstance, enforcement being subject
      to inter alia the
      nature of the remedies available in the Slovak courts, the acceptance by
      such courts of jurisdiction, the power of such courts to stay proceedings,
      the provisions of other principles of law of general application (such as
      e.g. the concept of fair business conduct) and all limitations resulting
      from the laws of bankruptcy, insolvency, liquidation, forced
      administration, any statutes of limitation and lapse of time or other laws
      affecting generally the enforcement of creditors'
  rights.

              

      

       

      
        	
                 
      

              	
                3.

              	
                Any
      subsidies or other funds obtained by the Company from the state budget or
      from the budget of the European Union or any assets purchased from funds
      originated from the state budget are immune from attachment and from
      execution and would not be available to creditors in any enforcement
      proceedings.

              

      

       

      
        	
                 
      

              	
                4.

              	
                Under
      the Foreign Exchange Act No. 202/1995 Coll., as amended, if the Government
      of the Slovak Republic declares a foreign exchange emergency, payments in
      foreign currency or abroad generally may be suspended for the duration of
      such emergency (not to exceed three months at any one
    time).

              

      

       

      
        	
                 
      

              	
                5.

              	
                The
      effectiveness of terms exculpating a party from a liability or duty
      otherwise owed is limited by law.

              

      

       

      
        	
                 
      

              	
                6.

              	
                Slovak
      courts may not give effect to any indemnity for legal costs incurred by a
      litigant in proceedings before Slovak
courts.

              

      

       

      
        	
                 
      

              	
                7.

              	
                There
      could be circumstances in which a Slovak court would not treat as
      conclusive those certificates and determinations which the Agreement
      states to be so treated.

              

      

       

      
        	
                 

              	
                8.

              	
                Slovak
      court may declare that it does not have jurisdiction if the civil
      proceedings concerning the same or a similar matter have already been
      commenced by a foreign court or an arbitration
  tribunal.

              

      

       

      
        
           

        

        
          70

          
            

          

        

        
           

        

      

       

      
        	
                 
      

              	
                9.

              	
                Under
      the provisions of the Regulation (EC) No. 593/2008 of 17 June 2008 on the
      law applicable to contractual obligations (Rome I) and Regulation (EC) No
      864/2007 of 11 July 2007 on the law applicable to non-contractual
      obligations (Rome II), a foreign law may not be applied as the governing
      law of a particular contractual or non-contractual obligation agreed to be
      governed by a foreign law, or enforced, if such application is manifestly
      incompatible with the public policy (in Slovak: verejný
      poriadok).

              

      

       

      
        	
                 
      

              	
                10.

              	
                Pursuant
      to Article 3(3) of the Regulation (EC) No. 593/2008 of 17 June 2008 on the
      law applicable to contractual obligations (Rome I), the fact that the
      parties to a contract have chosen a foreign law to govern their contract,
      whether or not accompanied by the choice of a foreign tribunal, shall not,
      where all the other elements relevant to the situation at the time of the
      choice are connected with one country only, prejudice the application of
      rules of the law of that country, which cannot be derogated from by
      contract.

              

      

       

      This
opinion expresses Slovak legal concepts in English.  Such concepts are
not always capable of precise expression in English without an extensive
comparative law analysis that would not be appropriate for an opinion of this
kind.

       

      This
opinion is given exclusively in connection with the Agreement and for no other
purpose. It is strictly limited to the matters set forth herein and no opinion
may be inferred or implied beyond that expressly stated herein.

       

      This
opinion is given for the sole benefit of the persons to whom the opinion is
addressed. This opinion may not be disclosed to anyone else except that it may
be disclosed, but only on the express basis that they may not rely on it, to any
professional adviser or to any potential assignee, transferee and
sub-participant of the Facility or as required by law or
regulation.

       

      Yours
faithfully,

       

      Elena
Petrášková

      General
Attorney International, United States Steel Corporation

       

      
        
           

        

        
          71

          
            

          

        

        
           

        

      

       

      SCHEDULE
6

       

      FORM
OF ENGLISH LEGAL OPINION

       

      
        	
                To:

              	
                The
      Finance Parties named original parties to the Agreement (as defined
      below).

              

      

       

      [DATE]

       

      Dear
Sirs,

      U.
S. Steel Košice, s.r.o. - €200,000,000 Credit Agreement

      dated 6 August, 2010 (the
Agreement)

       

      We have
acted as legal advisers as to the laws of England to ING Bank N.V., with its
registered seat at Bijlmerplein 888, 1102MG Amsterdam, The Netherlands, a
company limited by shares, registered in the Trade Register of Chamber of
Commerce and Industry for Amsterdam under file No. 33031431 acting through its
organisational unit ING
Bank N.V., pobočka zahraničnej banky, Jesenského 4/C, 811 02 Bratislava,
Slovak Republic, Identification No. 30 844 754, registered in the Commercial
register maintained by the District Court of Bratislava I, in Section Po,
inserted file No. 130/B (the Client) in connection with the
Agreement. In this matter we have taken instructions solely from the
Client.

       

      Terms
defined in the Agreement and not defined otherwise herein shall have the same
meanings when used in this opinion as they have in the Agreement.

       

      We have
examined copies of the executed Agreement and of the executed legal opinions
referred to in paragraphs 7(a) and (b) of Schedule 2 to the Agreement (contained
in Schedules 5 and 7 to the Agreement).

       

      We have
not examined any other document entered into by or affecting the Company or any
corporate or other records of the Company and have not made any other inquiries
concerning it.

       

      This
opinion is limited to the substantive laws of England currently in force and we
have made no investigation and no opinion is expressed or implied as to the laws
of any other jurisdiction. We express no opinion as to matters of fact. This
opinion is given subject to matters not disclosed to use and about which we have
no knowledge. We assume that there are no facts that would affect the
conclusions in this opinion.

       

      Subject
to the qualifications set out below and to any matters not disclosed to us, we
are of the opinion that, so far as the present laws of England are
concerned:

       

      
        	
                1.

              	
                Legal validity: The
      Agreement constitutes a legally binding, valid and enforceable obligation
      of the Company.

              

      

       

      
        	
                2.

              	
                Consents: No
      authorisations of governmental, judicial or public bodies or authorities
      in England are required by the Company in connection with the performance,
      validity or enforceability of its payment obligations under the
      Agreement.

              

      

       

      
        	
                3.

              	
                Registration
      requirements: It is not necessary or advisable to file, register or
      record the Agreement in any public place or elsewhere in
      England.

              

      

      
        
           

        

        
          72

          
            

          

        

        
           

        

      

       

      
        	
                4.

              	
                Stamp duties: No stamp,
      registration or similar tax or charge is payable in England in respect of
      the execution or delivery of the
Agreement.

              

      

       

      
        	
                5.

              	
                Choice of law: The
      choice of English law as the governing law of the Agreement would be
      upheld as a valid choice by the courts of England subject to and in
      accordance with Regulation (EC) No. 593/2008 of 17 June 2008 on the law
      applicable to contractual obligations (Rome I) and provided
      that the relevant contractual obligation is within the scope of and the
      parties' choice is permitted by Rome
I.

              

      

       

      The
qualifications to which this opinion is subject are as follows:

       

      
        	
                (a)

              	
                We
      assume that the Agreement has been duly authorised and entered into by
      each party to it.

              

      

       

      
        	
                (b)

              	
                We
      assume the genuineness of all signatures on all documents, the
      authenticity and completeness of all documents submitted to us as
      originals, and the completeness and conformity to the original documents
      of all documents submitted to us as
copies

              

      

       

      
        	
                (c)

              	
                This
      opinion is subject to all insolvency and other laws affecting the rights
      of creditors generally.

              

      

       

      
        	
                (d)

              	
                We
      assume that no foreign law affects the conclusions stated
      above.  We assume, in particular, that, so far as the laws of
      Slovakia are concerned, the obligations of the Company under the Agreement
      are its legal, valid, binding and enforceable obligations.  In
      this regard we have relied on copies of the legal opinions referred to in
      paragraphs 8(a) and (c) of Schedule 2 to the Agreement (contained in
      Schedules 5 and 7 to the Agreement), subject to any limitations or
      qualifications expressed therein.

              

      

       

      
        	
                (e)

              	
                An
      English court may stay proceedings if concurrent proceedings are being
      brought elsewhere.

              

      

       

      
        	
                (f)

              	
                The
      term enforceable
      means that a document is of a type and form enforced by the English
      courts.  It does not mean that each obligation will be enforced
      in accordance with its terms.  Certain rights and obligations of
      the Company may be qualified by the non-conclusivity of certificates,
      doctrines of good faith and fair conduct, the availability of equitable
      remedies and other matters, but in our view these qualifications would not
      defeat your legitimate expectations in any material
    respect.

              

      

       

      This
opinion is given for the sole benefit of the persons to whom the opinion is
addressed. This opinion may not be disclosed to anyone else except that it may
be disclosed, but only on the express basis that they may not rely on it, to any
professional adviser or to any potential assignee, transferee and
sub-participant of the Facility or as required by law or
regulation.

       

      Yours
faithfully,

       

      [           ]

       

      Morley
Allen & Overy Iroda

      
        
           

        

        
          73

          
            

          

        

        
           

        

      

       

      SCHEDULE
7

       

      FORM
OF SLOVAK LEGAL OPINION

       

      
        	
                To:

              	
                The
      Finance Parties named original parties to the Agreement (as defined
      below).

              

      

       

      [DATE]

       

      Dear
Sirs,

      U.
S. Steel Košice, s.r.o. - €200,000,000 Credit Agreement

      dated 6 August, 2010 (the
Agreement)

       

      We have
acted as legal advisers as to the laws of the Slovak Republic to ING Bank N.V., with its
registered seat at Bijlmerplein 888, 1102MG Amsterdam, The Netherlands, a
company limited by shares, registered in the Trade Register of Chamber of
Commerce and Industry for Amsterdam under file No. 33031431 acting through its
organisational unit ING
Bank N.V., pobočka zahraničnej banky, Jesenského 4/C, 811 02 Bratislava,
Slovak Republic, Identification No. 30 844 754, registered in the Commercial
register maintained by the District Court of Bratislava I, in Section Po,
inserted file No. 130/B (the Client) in connection with the
Agreement. In this matter we have taken instructions solely from the
Client.

       

      Terms
defined in the Agreement and not defined otherwise herein shall have the same
meanings when used in this opinion as they have in the Agreement.

       

      DOCUMENTS

       

      For the
purposes of this opinion, we have examined the copies of following
documents:

       

      
        	
                1.

              	
                the
      Agreement;

              

      

       

      
        	
                2.

              	
                the
      following corporate documents of the Company, certified by an authorised
      signatory for and on behalf of the Company as being true, correct and
      complete and in full force and effect as at a date no earlier than the
      date of the Agreement:

              

      

       

      
        	
                 
      

              	
                (a)

              	
                an
      extract of the Company Register of the District Court Košice 1, Section
      Sro, insert No. 11711/V dated [***] in respect of the
    Company;

              

      

       

      
        	
                 
      

              	
                (b)

              	
                a
      copy of the Memorandum of Association (zakladateľská
      listina) of the Company dated 7 June 2000 (original wording);
      and

              

      

       

      
        	
                 
      

              	
                (c)

              	
                a
      copy of the Memorandum of Association (zakladateľská
      listina) of the Company in full wording dated [***] (consolidated
      wording).

              

      

       

      Except as
stated above, we have not examined any other contracts or documents or any
corporate or other records.

       

      ASSUMPTIONS

       

      In giving
this opinion we have assumed:

      
        
           

        

        
          74

          
            

          

        

        
           

        

      

       

      
        	
                (a)

              	
                that
      the Parties (other than the Company) have taken all necessary actions
      (including corporate action) to authorise the entry into and performance
      of the Agreement and that the Agreement has been duly authorised, executed
      and delivered by or on behalf of the Parties (other than the Company) in
      accordance with all applicable laws and their respective constitutional
      documents;

              

      

       

      
        	
                (b)

              	
                the
      genuineness of all signatures on all documents, the authenticity and
      completeness of all documents submitted to us as originals and the
      completeness and conformity to the original documents of all documents
      submitted to us as copies;

              

      

       

      
        	
                (c)

              	
                that
      the documents referred to in paragraph 2 above were at their date, and
      remain, accurate and are in full force and
  effect;

              

      

       

      
        	
                (d)

              	
                that
      the Agreement, and the transactions contemplated thereby, constitutes a
      legal, valid, binding and enforceable obligation of the Parties (including
      the Company) in accordance with its terms under English
    law;

              

      

       

      
        	
                (e)

              	
                that
      the Parties (other than the Company) have the requisite power, capacity
      and authority to enter into and perform the
  Agreement;

              

      

       

      
        	
                (f)

              	
                that
      the authorisation, execution, delivery and performance of the Agreement
      will not contravene any of the provisions of the constitutional documents
      of any Party (other than the
Company);

              

      

       

      
        	
                (g)

              	
                that
      no provision of the laws of any jurisdiction other than the Slovak
      Republic affects the conclusions of the opinion (e.g. insofar as any
      obligation is to be performed in any jurisdiction outside the Slovak
      Republic, its performance will not be illegal or ineffective by virtue of
      the law of, or contrary to public policy in, that
      jurisdiction);

              

      

       

      
        	
                (h)

              	
                that
      no petition has been filed to declare bankruptcy with respect to the
      Company or over its assets or to permit restructuring of the Company and
      that the Company is not insolvent (in Slovak: v úpadku);
      and

              

      

       

      
        	
                (i)

              	
                that
      all relevant documents for the purposes of our giving this opinion have
      been properly disclosed to us and that the Parties have acted in good
      faith whilst entering into the
Agreement.

              

      

       

      This
opinion is limited to the law of the Slovak Republic currently in force and we
have made no investigation and no opinion is expressed or implied as to the laws
of any other jurisdiction. We express no opinion on any EU Directives not
implemented in the Slovak domestic law. We express no opinion as to matters of
fact and/or commercial facts. This opinion is given subject to matters not
disclosed to us and about which we have no knowledge.  We assume that
there are no matters of fact that would affect the conclusions in this
opinion.

       

      We have
not advised as to matters of taxation law and practice.

       

      OPINION

       

      Based on
the foregoing and subject to the assumptions set out above and the
qualifications set out below, we are of the opinion that, so far as the laws of
the Slovak Republic are concerned at the date of this opinion:

       

      
        	
                1.

              	
                Status. The Company is a
      limited liability company (in Slovak: spoločnosť
      s ručením obmedzeným), incorporated with limited liability under
      the laws of the Slovak
Republic.

              

      

      
        
           

        

        
          75

          
            

          

        

        
           

        

      

       

      
        	
                2.

              	
                Powers and authority.
      The Company has the corporate power to enter into and perform the
      obligations expressed to be assumed by it under the Agreement and to
      borrow under the Agreement and, subject to a duly passed resolution of the
      executives of the Company approving the terms of, and the transactions
      contemplated by the Agreement and authorising the relevant members of the
      Company's statutory body to execute the Agreement on behalf of the
      Company, has taken all necessary corporate action to authorise the
      execution and performance of the Agreement. According to Section 13(4) and
      133(3) of the Slovak Commercial Code (Act No. 513/1991 Coll., as amended),
      any restriction of the authority of a company’s statutory body to act for
      the company shall be ineffective vis-à-vis third parties (any disclosure
      of that restriction
notwithstanding).

              

      

       

      
        	
                3.

              	
                Legal validity. The
      Agreement constitutes legal, valid, binding and enforceable obligations of
      the Company in accordance with its terms and (subject to the preparation
      of the official translation into the Slovak language) is in the proper
      form for its enforcement in the courts of the Slovak
    Republic.

              

      

       

      
        	
                4.

              	
                Non-conflict. The
      execution by the Company of the Agreement does not, and its performance of
      the Agreement will not, violate: (i) any mandatory provision of any Slovak
      law or regulation or the Constitution of the Slovak Republic; or (ii) the
      constitutional documents of the Company referred to in paragraphs 2(a) to
      (c) of the section "Documents"
above.

              

      

       

      
        	
                5.

              	
                Consents. No
      authorisations, approvals, consents, licences, exemptions, filings,
      registrations, notarisations or other requirements of governmental,
      judicial or public bodies and authorities of the Slovak Republic are
      required in connection with the Company’s entry into or performance of the
      Agreement, or for its validity or enforceability against the
      Company.

              

      

       

      
        	
                6.

              	
                No immunity. Neither the
      Company nor any of its assets located in the Slovak Republic enjoys any
      right of immunity from suit, attachment prior to judgment or other legal
      process in respect of its obligations under the
  Agreement.

              

      

       

      
        	
                7.

              	
                Stamp duties. Except for
      court fees and sworn translators' fees payable in connection with
      proceedings to enforce the Agreement and for any applicable notarial
      charges, there are no stamp, transfer or registration fees or similar
      taxes, charges or duties payable in the Slovak Republic in connection with
      the execution or enforcement of the
Agreement.

              

      

       

      
        	
                8.

              	
                Governing law. The
      choice of English law as the governing law of the Agreement would be
      upheld as a valid choice of law by the courts of the Slovak
      Republic.

              

      

       

      
        	
                9.

              	
                Enforcement of foreign
      judgments. A judgment duly obtained in the English courts shall be
      recognised and enforced in the Slovak Republic
  unless:

              

      

       

      
        	
                 
      

              	
                (a)

              	
                the
      matter is one within the exclusive jurisdiction of the courts of a Member
      State of the European Union other than the courts of England pursuant to
      the Council Regulation (EC) No. 44/2001 of 22 December 2000 on
      jurisdiction and the recognition and enforcement of judgments in civil and
      commercial matters, as amended; or

              

      

       

      
        	
                 
      

              	
                (b)

              	
                the
      decision is not final or enforceable in the state where it has been
      issued; or

              

      

       

      
        	
                 
      

              	
                (c)

              	
                the
      party against whom such judgment is sought to be enforced has been
      deprived of an opportunity to participate in the foreign proceedings,
      especially if the summons or notice of the commencement of the foreign
      proceedings has not been duly served on the party; this exception does not
      apply if the party has not filed an appeal against the foreign judgment
      which has been duly served on it or if the party has waived the
      applicability of this exception;
or

              

      

      
        
           

        

        
          76

          
            

          

        

        
           

        

      

       

      
        	
                 
      

              	
                (d)

              	
                a
      final decision in the same matter has previously been reached by a court
      of the Slovak Republic or by a foreign authority if that foreign
      authority's decision has been, or would be, enforced in the Slovak
      Republic; or

              

      

       

      
        	
                 
      

              	
                (e)

              	
                recognition
      of the foreign judgment would be contrary to public policy (ordre public) of the
      Slovak Republic.

              

      

       

      
        	
                10.

              	
                Foreign currency
      judgments. A judgment duly obtained in the courts of England in
      respect of the Agreement given in Canadian Dollars, US Dollars, Czech
      Korunas or euros and being enforced in the Slovak Republic in Canadian
      Dollars, US Dollars, Czech Korunas or euros respectively, would be
      implemented in Canadian Dollars, US Dollars, Czech Korunas or euros
      respectively.

              

      

       

      
        	
                11.

              	
                Submission to
      jurisdiction. The submission by the Company to the jurisdiction of
      English courts will be recognised as a valid and binding submission to
      jurisdiction in respect of the
Agreement.

              

      

       

      QUALIFICATIONS

       

      The
qualifications to which this opinion is subject are as follows:

       

      
        	
                (a)

              	
                The
      validity, enforceability and effectiveness of the Agreement against the
      Company are limited by all bankruptcy, insolvency, moratorium and other
      laws affecting creditors' rights
generally.

              

      

       

      
        	
                (b)

              	
                References
      in this opinion to the term "enforceable" mean that each obligation or
      document is of a type and form which the Slovak courts would enforce. It
      is not certain, however, that each obligation or document will be enforced
      in accordance with its terms in every circumstance, enforcement being
      subject to inter alia the nature of the remedies available in the Slovak
      courts, the acceptance by such courts of jurisdiction, the power of such
      courts to stay proceedings, the provisions of other principles of law of
      general application (such as e.g. the concept of fair business conduct)
      and all limitations resulting from the laws of bankruptcy, insolvency,
      restructuring, liquidation, forced administration, any statutes of
      limitation and lapse of time or other laws affecting generally the
      enforcement of creditors' rights.

              

      

       

      
        	
                (c)

              	
                Any
      subsidies or other funds obtained from the state budget or from the budget
      of European Union or any assets purchased from funds originated from the
      state budget or from the budget of European Union are immune from
      attachment and from execution and would not be available to creditors in
      any enforcement proceedings.

              

      

       

      
        	
                (d)

              	
                Under
      the Foreign Exchange Act No. 202/1995 Coll., as amended, if a foreign
      exchange emergency is declared by the Government of the Slovak Republic,
      payments in foreign currency or abroad generally may be suspended for the
      duration of such emergency (not to exceed three months at any one
      time).

              

      

       

      
        	
                (e)

              	
                The
      effectiveness of terms exculpating a party from a liability or duty
      otherwise owed is limited by law.

              

      

       

      
        	
                (f)

              	
                Slovak
      courts may not give effect to any indemnity for legal costs incurred by a
      litigant in proceedings before Slovak
courts.

              

      

       

      
        	
                (g)

              	
                Under
      the provisions of the Regulation (EC) No. 593/2008 of 17 June 2008 on the
      law applicable to contractual obligations (Rome I) and Regulation (EC) No
      864/2007 of 11 July 2007 on the law applicable to non-contractual
      obligations (Rome II), a foreign law may not be applied as the governing
      law of a particular contractual or non-contractual obligation agreed to be
      governed by a foreign law, or enforced, if such application is manifestly
      incompatible with the public policy (in Slovak: verejný
      poriadok).

              

      

      
        
           

        

        
          77

          
            

          

        

        
           

        

      

       

      
        	
                (h)

              	
                Pursuant
      to Article 3(3) of the Regulation (EC) No. 593/2008 of 17 June 2008 on the
      law applicable to contractual obligations (Rome I), the fact that the
      parties to a contract have chosen a foreign law to govern their contract,
      whether or not accompanied by the choice of a foreign tribunal, shall not,
      where all the other elements relevant to the situation at the time of the
      choice are connected with one country only, prejudice the application of
      rules of the law of that country, which cannot be derogated from by
      contract.

              

      

       

      GENERAL

       

      This
opinion expresses Slovak legal concepts in English. Such concepts are not always
capable of precise expression in English without the extensive comparative law
analysis which would not be appropriate for an opinion of this
kind.

       

      This
opinion is given exclusively in connection with the Agreement and for no other
purpose. It is strictly limited to the matters set forth herein and no opinion
may be inferred or implied beyond that expressly stated herein. This opinion is
issued in understanding that we have no duty to notify any addressees of this
opinion or any other person of any changes in Slovak law or its interpretation
after the date of this opinion.

       

      This
opinion is given for the sole benefit of the persons to whom the opinion is
addressed. This opinion may not be disclosed to anyone else except that it may
be disclosed, but only on the express basis that they may not rely on it, to any
professional adviser or to any potential assignee, transferee and
sub-participant of the Facility or as required by law or
regulation.

       

      Yours
faithfully,

      

      [         ]

      

      Allen
& Overy Bratislava, s.r.o.

      
        
           

        

        
          78

          
            

          

        

        
           

        

      

       

      SIGNATORIES

       

      U. S. Steel Košice, s.r.o. as
Company

       

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              	
                                      By:          
      /s/ Joseph Anthony
      Napoli             

                                    	 
      	
                                      By:          
      /s/ Martin
      Pitorák                          

                                    
	Name:      Joseph
      Anthony Napoli	 
      	Name:      Ing.
      Martin Pitorák
	Title:        executive	
                                        

                                    	Title:        executive

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

       

      COMMERZBANK Aktiengesellschaft, pobočka
zahraničnej banky, Bratislava as Mandated Lead
Arranger

       

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  	
                                          By:           /s/ Peter
      Dávid                                   

                                        	 
      	
                                          By:          
      /s/ Miriam
      Stilhammerová             

                                        
	Name:      Mgr.
      Peter Dávid	 
      	Name:      Ing.
      Miriam Stilhammerová
	Title:        Head
      of the Branch	
                                            

                                        	Title:        Vice
      President &
Prokurist

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

       

      ING Bank N.V., pobočka
zahraničnej banky as Mandated Lead
Arranger

       

      
        
          
            
              
                	
                        By:           /s/ Jaroslav
      Vittek                             

                      	 
      	
                        By:          
      /s/ Katarína
      Kurucová                  

                      
	
                        Name:      Jaroslav
      Vittek

                      	 
      	
                        Name:      Katarína
      Kurucová

                      
	
                        Title:        Director
      of Strategy & Business Management

                      	
                          

                      	
                        Title:        Vice
      President, Client Relationship
Management

                      

              

            

          

        

      

       

      Slovenská sporiteľňa,
a.s. as Mandated Lead
Arranger

       

      
        
          
            
              
                	
                        By:           /s/ Peter
      Gramblička                           

                      	 
      	
                        By:        
        /s/ Dominika
      Vasiľová                  

                      
	
                        Name:      Peter
      Gramblička

                      	 
      	
                        Name:      Dominika
      Vasiľová

                      
	
                        Title:        Head
      of Large Corporate Clients

                      	
                          

                      	
                        Title:        Senior
      Relationship
Manager

                      

              

            

          

        

      

       

      Citibank Europe plc, pobočka
zahraničnej banky as Lead
Arranger

       

      
        
          
            
              
                	
                        By:           /s/ Martin
      Magda                               

                      	 
      	
                        By:         
      /s/ Filip Záhořík                                

                      
	
                        Name:    
      Martin Magda

                      	 
      	
                        Name:    
      Filip Záhořík

                      
	
                        Title:      
      general proxy (prokurista)

                      	
                          

                      	
                        Title:       general
      proxy (prokurista)

                      

              

            

          

        

      

      
        
           

        

        
          79

          
            

          

        

        
           

        

      

       

      HSBC Bank plc, pobočka zahraničnej
banky as Lead
Arranger

       

      
        
          
            
              
                	
                        By:           /s/ Patrik
      Mozola                                         

                      	 
      	
                        By:           /s/ Radoslav
      Ratkovský                              

                      
	
                        Name:      Patrik
      Mozola

                      	 
      	
                        Name:      Radoslav
      Ratkovský

                      
	
                        Title:        CEO
      & Head of Corporate Banking

                      	
                          

                      	
                        Title:        Senior
      Relationship Manager – Team
Leader

                      

              

            

          

        

      

       

      COMMERZBANK Aktiengesellschaft,
pobočka zahraničnej
banky, Bratislava as Original
Lender

       

      
        
          
            
              
                	
                        By:           /s/ Peter
      Dávid                                            

                      	 
      	
                        By:           /s/ Miriam
      Stilhammerová                          

                      
	
                        Name:      Mgr.
      Peter Dávid

                      	 
      	
                        Name:      Ing.
      Miriam Stilhammerová

                      
	
                        Title:        Head
      of the Branch

                      	
                          

                      	
                        Title:        Vice
      President &
Prokurist

                      

              

            

          

        

      

       

      ING Bank N.V., pobočka zahraničnej
banky as Original
Lender

       

      
        
          
            
              
                	
                        By:           /s/ Jaroslav
      Vittek                                        

                      	 
      	
                        By:           /s/ Katarína
      Kurucová                                

                      
	
                        Name:      Jaroslav
      Vittek

                      	 
      	
                        Name:      Katarína
      Kurucová

                      
	
                        Title:        Director
      of Strategy & Business Management

                      	
                          

                      	
                        Title:        Vice
      President, Client Relationship
Management

                      

              

            

          

        

      

       

      Slovenská sporiteľňa,
a.s. as Original
Lender

       

      
        
          
            
              
                	
                        By:           /s/ Peter
      Gramblička                                     

                      	 
      	
                        By:           /s/ Dominika
      Vasiľová                                

                      
	
                        Name:      Peter
      Gramblička

                      	 
      	
                        Name:      Dominika
      Vasiľová

                      
	
                        Title:        Head
      of Large Corporate Clients

                      	
                          

                      	
                        Title:        Senior
      Relationship
Manager

                      

              

            

          

        

      

       

      Citibank Europe plc, pobočka
zahraničnej banky as Original
Lender

       

      
        
          
            
              
                	
                        By:           /s/ Martin
      Magda                                        

                      	 
      	
                        By:           /s/ Filip Záhořík                                            

                      
	
                        Name:      Martin
      Magda

                      	 
      	
                        Name:      Filip
      Záhořík

                      
	
                        Title:        general
      proxy (prokurista)

                      	
                          

                      	
                        Title:        general
      proxy (prokurista)

                      

              

            

          

        

      

      
        
           

        

        
          80

          
            

          

        

        
           

        

      

       

      HSBC Bank plc, pobočka zahraničnej
banky as
Lender

       

      
        
          
            
              
                	
                        By:           /s/ Patrik
      Mozola                                        

                      	 
      	
                        By:           /s/ Radoslav
      Ratkovský                                

                      
	
                        Name:      Patrik
      Mozola

                      	 
      	
                        Name:      Radoslav
      Ratkovský

                      
	
                        Title:        CEO
      & Head of Corporate Banking

                      	
                          

                      	
                        Title:        Senior
      Relationship Manager – Team
Leader

                      

              

            

          

        

      

       

      ING Bank N.V., pobočka zahraničnej
banky as Facility
Agent

       

      
        
          
            
              
                	
                        By:           /s/ Zuzana
      Chrapková                                

                      	 
      	
                        By:           /s/ Elena
      Sennešová                                       

                      
	
                        Name:      Zuzana
      Chrapková

                      	 
      	
                        Name:      Elena
      Sennešová

                      
	
                        Title:        Head
      of Front Office Support

                      	
                          

                      	
                        Title:        F/O
      Support Trade Finance
Specialist

                      

              

            

          

        

      

      
        
           

        

        
          81Exhibit
4.1

     

    EXECUTION
COPY

    

    NOTE
AND WARRANT PURCHASE AGREEMENT

    

    Dated
as of August 6, 2010

    

    among

    

    JUMA
TECHNOLOGY CORP.

    

    and

    

    THE
PURCHASERS LISTED ON EXHIBIT A

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      
        
          
            	
                    TABLE OF CONTENTS

                  
	 
      	
                    Page

                  
	
                    ARTICLE
      I   Purchase and Sale of the Notes and
    Warrants

                  	 
      
	
                    Section
      1.1

                  	 	
                    Purchase
      and Sale of Notes

                  	
                    1

                  
	
                    Section
      1.2

                  	 	
                    Warrants

                  	
                    1

                  
	
                    Section
      1.3

                  	 	
                    Conversion
      Shares

                  	
                    1

                  
	
                    Section
      1.4

                  	 	
                    Purchase
      Price and Closing

                  	
                    1

                  
	 
      	 	 
      	 
      
	
                    ARTICLE
      II  Representations and Warranties

                  	 
      
	
                    Section
      2.1

                  	 	
                    Representations
      and Warranties of the Company

                  	
                    2

                  
	
                    Section
      2.2

                  	 	
                    Representations
      and Warranties of the Purchasers

                  	
                    12

                  
	 
      	 
      
	
                    ARTICLE
      III  Covenants

                  	 
      
	
                    Section
      3.1

                  	 	
                    Securities
      Compliance

                  	
                    14

                  
	
                    Section
      3.2

                  	 	
                    Registration
      and Listing

                  	
                    15

                  
	
                    Section
      3.3

                  	 	
                    Inspection
      Rights

                  	
                    15

                  
	
                    Section
      3.4

                  	 	
                    Compliance
      with Laws

                  	
                    15

                  
	
                    Section
      3.5

                  	 	
                    Keeping
      of Records and Books of Account

                  	
                    15

                  
	
                    Section
      3.6

                  	 	
                    Furnishing
      of Information

                  	
                    15

                  
	
                    Section
      3.7

                  	 	
                    Reporting
      Requirements

                  	
                    16

                  
	
                    Section
      3.8

                  	 	
                    Amendments

                  	
                    16

                  
	
                    Section
      3.9

                  	 	
                    Other
      Agreements

                  	
                    16

                  
	
                    Section
      3.10

                  	 	
                    Distributions

                  	
                    16

                  
	
                    Section
      3.11

                  	 	
                    Use
      of Proceeds

                  	
                    16

                  
	
                    Section
      3.12

                  	 	
                    Reservation
      of Shares

                  	
                    16

                  
	
                    Section
      3.13

                  	 	
                    Transfer
      Agent Instructions

                  	
                    17

                  
	
                    Section
      3.14

                  	 	
                    Disposition
      of Assets

                  	
                    17

                  
	
                    Section
      3.15

                  	 	
                    Reporting
      Status

                  	
                    17

                  
	
                    Section
      3.16

                  	 	
                    Disclosure
      of Transaction

                  	
                    17

                  
	
                    Section
      3.17

                  	 	
                    Disclosure
      of Material Information

                  	
                    18

                  
	
                    Section
      3.18

                  	 	
                    Pledge
      of Securities

                  	
                    18

                  
	
                    Section
      3.19

                  	 	
                    Form
      S-1 Eligibility

                  	
                    18

                  
	
                    Section
      3.20

                  	 	
                    DTC

                  	
                    18

                  
	
                    Section
      3.21

                  	 	
                    Issuance
      of Variable Securities

                  	
                    18

                  
	
                    Section
      3.22

                  	 	
                    Approval
      of Acquisitions.

                  	
                    18

                  
	
                    Section
      3.23

                  	 	
                    Most
      Favored Nations

                  	
                    18

                  

          

        

      

    

    
      
         

      

      
        i

        
          

        

      

      
         

      

    

    

    
      
        
          	
                  ARTICLE
      IV  Conditions

                	 
      
	
                  Section
      4.1

                	 	
                  Conditions
      Precedent to the Obligation of the Company to Sell the
    Shares

                	
                  19

                
	
                  Section
      4.2

                	 	
                  Conditions
      Precedent to the Obligation of the Purchasers to Purchase the
      Shares

                	
                  19

                
	 
      	 
      
	
                  ARTICLE
      V  Stock Certificate Legend

                	 
      
	
                  Section
      5.1

                	 	
                  Legend

                	
                  21

                
	 
      	 
      
	
                  ARTICLE
      VI  Indemnification

                	 
      
	
                  Section
      6.1

                	 	
                  General
      Indemnity

                	
                  22

                
	
                  Section
      6.2

                	 	
                  Indemnification
      Procedure

                	
                  22

                
	 
      	 
      
	
                  ARTICLE
      VII  Registration Rights

                	 
      
	
                  Section
      7.1

                	 	
                  Piggyback
      Registration Rights

                	
                  23

                
	
                  Section
      7.2

                	 	
                  Assignment
      of Registration Rights

                	
                  24

                
	
                  Section
      7.3

                	 	
                  Underwriter
      Status

                	
                  24

                
	 
      	 
      
	
                  ARTICLE
      VIII  Miscellaneous

                	 
      
	
                  Section
      8.1

                	 	
                  Specific
      Enforcement

                	
                  24

                
	
                  Section
      8.2

                	 	
                  Entire
      Agreement; Amendment

                	
                  25

                
	
                  Section
      8.3

                	 	
                  Rescission
      and Withdrawal Right

                	
                  25

                
	
                  Section
      8.4

                	 	
                  Notices

                	
                  26

                
	
                  Section
      8.5

                	 	
                  Waivers

                	
                  26

                
	
                  Section
      8.6

                	 	
                  Headings

                	
                  26

                
	
                  Section
      8.7

                	 	
                  Successors
      and Assigns

                	
                  27

                
	
                  Section
      8.8

                	 	
                  No
      Third Party Beneficiaries

                	
                  27

                
	
                  Section
      8.9

                	 	
                  Governing
      Law; Consent to Jurisdiction

                	
                  27

                
	
                  Section
      8.10

                	 	
                  Survival

                	
                  27

                
	
                  Section
      8.11

                	 	
                  Counterparts

                	
                  27

                
	
                  Section
      8.12

                	 	
                  Publicity

                	
                  27

                
	
                  Section
      8.13

                	 	
                  Severability

                	
                  27

                
	
                  Section
      8.14

                	 	
                  Further
      Assurances

                	
                  28

                

        

      

    

     

    
      
         

      

      
        ii

        
          

        

      

      
         

      

    

     

    
      
        
          	
                  EXHIBITS

                
	
                  Exhibit
      A

                	 	
                  List
      of Purchasers

                
	
                  Exhibit
      B

                	 	
                  Form
      of 10% bridge note

                
	
                  Exhibit
      C

                	 	
                  Series
      A Warrant

                
	
                  Exhibit
      D

                	 	
                  Irrevocable
      Transfer Agent Instructions

                
	
                  Exhibit
      E

                	 	
                  Opinion
      of Counsel

                

        

      

    

    
      
         

      

      
        iii

        
          

        

      

      
         

      

    

    NOTE
AND WARRANT PURCHASE AGREEMENT

    

    This NOTE
AND WARRANT PURCHASE AGREEMENT (this “Agreement”)
is dated as of August 6, 2010 by and among Juma Technology Corp., a Delaware
corporation (the “Company”),
and each of the Purchasers whose names are set forth on Exhibit
A hereto (individually, a “Purchaser”
and collectively, the “Purchasers”).

    

    NOW, THEREFORE, in
consideration of the covenants, promises and representations set forth herein,
and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties agree as follows:

    

    ARTICLE
I

    Purchase
and Sale of Note and Warrants

    

    Section
1.1      Purchase and Sale of
Note.
Upon the following terms and conditions, (a) the Company and one of its
subsidiaries, Nectar Services Corp., a Delaware Corporation (“Nectar”
and together with the Company, the “Issuers”)
shall jointly issue and sell to the Purchasers and each of the Purchasers shall
purchase from the Company, 10% bridge notes in the aggregate principal amount of
five hundred thousand ($500,000.00) (the “Note”).
The Note shall be substantially in the form attached hereto as Exhibit
B.  The
Company and the Purchasers are executing and delivering this Agreement in
accordance with and in reliance upon the exemption from securities registration
afforded by Rule 506 of Regulation D (“Regulation
D”) as promulgated by the United States Securities and Exchange
Commission (the “Commission”)
under the Securities Act of 1933, as amended (the “Securities
Act”) or Section 4(2) of the Securities Act.

    

    Section
1.2       Warrants. Upon the
following terms and conditions and for no additional consideration, each of the
Purchasers shall be issued Series A Warrants, in substantially the form attached
hereto as Exhibit
C (the “Series A
Warrants”
and/or the “Warrants”)
to purchase up to one hundred percent (100%) of that number of shares of the
Company’s Common Stock into which the Note issued to the applicable Purchaser
would convert assuming that the principal sum of the Note were convertible at
fifteen cents ($0.15) per share of Common Stock.  Any shares of Common
Stock issuable upon exercise of the Warrants (and such shares when issued) are
herein referred to as the “Warrant
Shares.” The Warrants shall expire on March 31, 2015 and shall have an
initial exercise price equal to fifteen cents ($0.15) per share.

    

    Section 1.3       Conversion Shares. The Company
has authorized and will reserve and covenants to continue to reserve, free of
preemptive rights and other similar contractual rights of stockholders, as of
the date hereof, such number of shares of Common Stock equal to one hundred
twenty percent (120%) of the number of shares of Common Stock as shall from time
to time be sufficient to effect the exercise of the Warrants then outstanding.
The Notes, the Warrants, and the Warrant Shares are sometimes collectively
referred to as the “Securities.”

    

    Section 1.4       Purchase Price and
Closing. Subject to the terms and conditions hereof, the Issuers agree to
issue and sell to the Purchasers and, in consideration of and in express
reliance upon the representations, warranties, covenants, terms and conditions
of this Agreement, the Purchasers, severally but not jointly, agree to purchase
the Notes and the Warrants for an aggregate purchase price of five hundred
thousand ($500,000.00) (the “Purchase
Price”). The closing under this Agreement (the “Closing”)
shall take place on or about August 6, 2010 (the “Closing
Date”).  The Closing under this Agreement shall take place at
the offices of Vision Opportunity Master Fund, Ltd., 20 West 55th Street,
5th
Floor, New York, New York 10019 at 10:00 a.m., New York time; provided, that all of the
conditions set forth in Article
IV hereof and applicable to the Closing shall have been fulfilled or
waived in accordance herewith.  Subject to the terms and conditions of
this Agreement, at the Closing the Company shall deliver or cause to be
delivered to each Purchaser (x) its Notes for the principal amount set forth
opposite the name of such Purchaser on Exhibit
A hereto, (y) its Warrants to purchase such number of shares of Common
Stock as is set forth opposite the name of such Purchaser on Exhibit
A attached hereto and (z) any other documents required to be
delivered pursuant to Article
IV hereof. At the Closing, each Purchaser shall deliver the applicable
Purchase Price by wire transfer to the Company.

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    

    ARTICLE
II

    Representations
and Warranties

    

    Section
2.1       Representations and
Warranties of the Company. Each of the Issuers hereby represents and
warrants to the Purchasers, as of the date hereof and as of the Closing Date
(except as set forth on the Schedule of Exceptions attached hereto with each
numbered Schedule corresponding to the section number herein), as follows
(unless otherwise specifically stated herein this Section
2.1 to the contrary, all references to the Company shall be deemed to
refer collectively to the Issuers):

    

    (a)      Organization, Good Standing
and Power. The Company is a corporation duly incorporated, validly
existing and, upon payment of its franchise taxes, in good standing under the
laws of the State of Delaware and has the requisite corporate power to own,
lease and operate its properties and assets and to conduct its business as it is
now being conducted. Nectar is a corporation duly incorporated, validly existing
and in good standing under the laws of the State of Delaware and has the
requisite corporate power to own, lease and operate its properties and assets
and to conduct its business as it is now being conducted. Except as set forth in
Schedule
2.1(g) hereto, the Company does not have any Subsidiaries. Except as set
forth on Schedule
2.1(a), each of the Company and each such Subsidiary is duly qualified as
a foreign corporation to do business and is in good standing in every
jurisdiction in which the nature of the business conducted or property owned by
it makes such qualification necessary except for any jurisdiction(s) (alone or
in the aggregate) in which the failure to be so qualified will not have a
Material Adverse Effect (as defined in Section
2.1(c) hereof) on the Company’s financial condition.

    

    (b)      Authorization;
Enforcement. The Company has the requisite corporate power and authority
to enter into and perform this Agreement, the Notes, the Warrants and the
Irrevocable Transfer Agent Instructions (as defined in Section
3.13) substantially
in the form of Exhibit
D attached hereto (collectively, the “Transaction
Documents”) and to issue and sell the Securities in accordance with the
terms hereof. The execution, delivery and performance of the Transaction
Documents by the Company and the consummation by it of the transactions
contemplated hereby and thereby have been duly and validly authorized by all
necessary corporate action, and except as set forth on Schedule
2.1(b), no further consent or authorization of the Company or its board
of directors or stockholders is required. This Agreement has been duly executed
and delivered by the Company. The other Transaction Documents will have been
duly executed and delivered by the Company at the Closing. Each of the
Transaction Documents constitutes, or shall constitute when executed and
delivered, a valid and binding obligation of the Company enforceable against the
Company in accordance with its terms, except as such enforceability may be
limited by applicable bankruptcy, insolvency, reorganization, moratorium,
liquidation, conservatorship, receivership or similar laws relating to, or
affecting generally the enforcement of, creditor’s rights and remedies or by
other equitable principles of general application.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    (c)      Capitalization. The
authorized capital stock of the Company and the shares thereof currently issued
and outstanding as of the date hereof are set forth on Schedule
2.1(c) hereto. All of the outstanding shares of capital stock have been
duly and validly authorized and issued in compliance with all securities
laws.  Except as set forth on Schedule
2.1(c) hereto, no shares of Common Stock are entitled to preemptive
rights or registration rights and there are no outstanding options, warrants,
scrip, rights to subscribe to, call or commitments of any character whatsoever
relating to, or securities or rights convertible into, any shares of capital
stock of the Company. There are no contracts, commitments, understandings, or
arrangements by which the Company is or may become bound to issue additional
shares of the capital stock of the Company or options, securities or rights
convertible into shares of capital stock of the Company. Except as set forth on
Schedule
2.1(c) hereto, the Company is not a party to any agreement granting
registration or anti-dilution rights to any person with respect to any of its
equity or debt securities. The Company is not a party to, and it has no
knowledge of, any agreement restricting the voting or transfer of any shares of
the capital stock of the Company. The offer and sale of all capital stock,
convertible securities, rights, warrants, or options of the Company issued prior
to the Closing complied with all applicable Federal and state securities laws,
and no stockholder has a right of rescission or claim for damages with respect
thereto. The Company has furnished or made available to the Purchasers true and
correct copies of the Company’s Certificate of Incorporation as in effect on the
date hereof (the “Certificate”) and
the Company’s Bylaws as in effect on the date hereof (the “Bylaws”).
For the purposes of this Agreement, “Material
Adverse Effect” means any material adverse effect on the business,
operations, properties, prospects, or financial condition of the Company and its
Subsidiaries, taken as a whole, and/or any condition, circumstance, or situation
that would prohibit or otherwise materially interfere with the ability of the
Company to perform any of its obligations under this Agreement.

    

    (d)      Issuance of Securities. The Notes
and the Warrants to be issued at the Closing have been duly authorized by all
necessary corporate action and when paid for or issued in accordance with the
terms hereof, the Notes and Warrants shall be validly issued and outstanding,
free and clear of all liens, encumbrances and rights of refusal of any
kind.  When the Warrant Shares are issued in accordance with the terms
of this Agreement, such shares will be duly authorized by all necessary
corporate action and validly issued and outstanding, fully paid and
non-assessable, free and clear of all liens, encumbrances and rights of refusal
of any kind and the holders shall be entitled to all rights accorded to a holder
of Common Stock.

    

    (e)      No Conflicts. The
execution, delivery and performance of the Transaction Documents by the Company,
the performance by the Company of its obligations under the Notes and/or the
Warrants and the consummation by the Company of the transactions contemplated
herein and therein do not and will not (i) violate any provision of the
Company’s Certificate or Bylaws, (ii) conflict with, or constitute a default (or
an event which with notice or lapse of time or both would become a default)
under, or give to others any rights of termination, amendment, acceleration or
cancellation of, any agreement, mortgage, deed of trust, indenture, note, bond,
license, lease agreement, instrument or obligation to which the Company is a
party or by which it or its properties or assets are bound, except for conflicts
or defaults, which singularly or in the aggregate do not and will not have a
Material Adverse Effect, (iii) create or impose a lien, mortgage, security
interest, charge or encumbrance of any nature on any property of the Company
under any agreement or any commitment to which the Company is a party or by
which the Company is bound or by which any of its respective properties or
assets are bound, except for liens, mortgages, security interests, charges or
encumbrances which singularly or in the aggregate do not and will not have a
Material Adverse Effect, or (iv) result in a violation of any federal, state,
local or foreign statute, rule, regulation, order, judgment or decree (including
Federal and state securities laws and regulations) applicable to the Company or
any of its Subsidiaries or by which any property or asset of the Company or any
of its Subsidiaries are bound or affected, except for violations, which
singularly or in the aggregate, do not and will not have a Material Adverse
Effect. The business of the Company and its Subsidiaries is not being conducted
in violation of any laws, ordinances or regulations of any governmental entity,
except for possible violations which singularly or in the aggregate do not and
will not have a Material Adverse Effect. The Company is not required under
Federal, state or local law, rule or regulation to obtain any consent,
authorization or order of, or make any filing or registration with, any court or
governmental agency in order for it to execute, deliver or perform any of its
obligations under the Transaction Documents, or issue and sell the Notes, the
Warrants and the Warrant Shares in accordance with the terms hereof or thereof
(other than (x) any consent, authorization or order that has been obtained as of
the date hereof, (y) any filing or registration that has been made as of the
date hereof or (z) any filings which may be required to be made by the Company
with the Commission or state securities administrators subsequent to the
Closing, any registration statement which may be filed pursuant hereto or any
other Transaction Document); provided, that for purposes
of the representation made in this sentence, the Company is assuming and relying
upon the accuracy of the relevant representations and agreements of the
Purchasers herein.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

    (f)      Commission Documents,
Financial Statements. The Company has timely filed all reports,
schedules, forms, statements and other documents required to be filed by it with
the Commission pursuant to the reporting requirements of the Securities Exchange
Act of 1934, as amended the (“Exchange
Act”), including material filed pursuant to Section 13(a) or 15(d) of the
Exchange Act (all of the foregoing including filings incorporated by reference
therein being referred to herein as the “Commission
Documents”). The Company has delivered or made available via EDGAR or
another Internet web-site to each of the Purchasers true and complete copies of
the Commission Documents. Except for any information provided to Robert Thomson,
the Company has not provided to the Purchasers any material non-public
information or other information which, according to applicable law, rule or
regulation, was required to have been disclosed publicly by the Company but
which has not been so disclosed, other than with respect to the transactions
contemplated by this Agreement. At the times of their respective filings, the
Commission Documents complied in all material respects with the requirements of
the Exchange Act and the rules and regulations of the Commission promulgated
thereunder and other federal, state and local laws, rules and regulations
applicable to such documents, and, as of their respective dates, none of the
Commission Documents contained any untrue statement of a material fact or
omitted to state a material fact required to be stated therein or necessary in
order to make the statements therein, in light of the circumstances under which
they were made, not misleading. The financial statements of the Company included
in the Commission Documents comply as to form in all material respects with
applicable accounting requirements and the published rules and regulations of
the Commission or other applicable rules and regulations with respect thereto.
Such financial statements have been prepared in accordance with U.S. generally
accepted accounting principles (“GAAP”)
applied on a consistent basis during the periods involved (except (i) as may be
otherwise indicated in such financial statements or the notes thereto or (ii) in
the case of unaudited interim statements, to the extent they may not include
footnotes or may be condensed or summary statements), and fairly present in all
material respects the financial position of the Company and its Subsidiaries as
of the dates thereof and the results of operations and cash flows for the
periods then ended (subject, in the case of unaudited statements, to normal
year-end audit adjustments).

    

    (g)      Subsidiaries. Schedule
2.1(g) hereto sets forth each Subsidiary of the Company, showing the
jurisdiction of its incorporation or organization and showing the percentage of
each person’s ownership. Each Subsidiary is a corporation duly incorporated,
validly existing and in good standing under the laws of its state of
incorporation and has the requisite corporate power to own, lease and operate
its properties and assets and to conduct its business as it is now being
conducted. For the purposes of this Agreement, “Subsidiary”
shall mean any corporation or other entity of which at least a majority of the
securities or other ownership interest having ordinary voting power (absolutely
or contingently) for the election of directors or other persons performing
similar functions are at the time owned directly or indirectly by the Company
and/or any of its other Subsidiaries. All of the outstanding shares of capital
stock of each Subsidiary have been duly authorized and validly issued, and are
fully paid and nonassessable. There are no outstanding preemptive, conversion or
other rights, options, warrants or agreements granted or issued by or binding
upon any Subsidiary for the purchase or acquisition of any shares of capital
stock of any Subsidiary or any other securities convertible into, exchangeable
for or evidencing the rights to subscribe for any shares of such capital stock.
Neither the Company nor any Subsidiary is subject to any obligation (contingent
or otherwise) to repurchase or otherwise acquire or retire any shares of the
capital stock of any Subsidiary or any convertible securities, rights, warrants
or options of the type described in the preceding sentence. Neither the Company
nor any Subsidiary is party to, nor has any knowledge of, any agreement
restricting the voting or transfer of any shares of the capital stock of any
Subsidiary.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

    (h)    No Material Adverse
Change. Other than as disclosed in the Company’s Commission Documents,
since December 31, 2008 the Company has not experienced or suffered any Material
Adverse Effect.

    

    (i)     No Undisclosed
Liabilities. Except as set forth on Schedule
2.1(i), since December 31, 2008 neither the Company nor any of its
Subsidiaries has any liabilities, obligations, claims or losses (whether
liquidated or unliquidated, secured or unsecured, absolute, accrued, contingent
or otherwise) other than those incurred in the ordinary course of the Company’s
or its Subsidiaries’ respective businesses and which, individually or in the
aggregate, do not or would not have a Material Adverse Effect on the Company or
its Subsidiaries, as the case may be.

    

    (j)     Off Balance Sheet
Arrangements.  There is no transaction, arrangement, or other
relationship between the Company and an unconsolidated or other off balance
sheet entity that is required to be disclosed by the Company in its Commission
Documents and is not so disclosed or that otherwise would be reasonably likely
to have a Material Adverse Effect.

    

    (k)    No Undisclosed Events or
Circumstances. No event or circumstance has occurred or exists with
respect to the Company or its Subsidiaries or their respective businesses,
properties, prospects, operations or financial condition, which, under
applicable law, rule or regulation, requires public disclosure or announcement
by the Company but which has not been so publicly announced or
disclosed.

    

    (l)     Indebtedness. Schedule
2.1(l) hereto sets forth as of the date hereof all outstanding secured
and unsecured Indebtedness of the Company or any Subsidiary, or for which the
Company or any Subsidiary has commitments. For the purposes of this Agreement,
“Indebtedness”
shall mean (a) any liabilities for borrowed money or amounts owed, whether
individually or in aggregate, in excess of $100,000 (other than trade accounts
payable incurred in the ordinary course of business), (b) all guaranties,
endorsements and other contingent obligations in respect of Indebtedness of
others, whether or not the same are or should be reflected in the Company’s
balance sheet (or the notes thereto), except guaranties by endorsement of
negotiable instruments for deposit or collection or similar transactions in the
ordinary course of business; and (c) the present value of any lease payments in
excess of $25,000 due under leases required to be capitalized in accordance with
GAAP. Except as set forth on Schedule
2.1(l), neither the Company nor any Subsidiary is in default with respect
to any Indebtedness.

    

    (m)   Title to Assets.
Except as set forth on Schedule
2.1(m), each of the Company and the Subsidiaries has good and marketable
title to all of its real and personal property, free and clear of any mortgages,
pledges, charges, liens, security interests or other encumbrances. Except as set
forth on Schedule
2.1(m), all leases of the Company and each of its Subsidiaries are valid
and subsisting and in full force and effect.

    

    (n)    Insurance. The
Company and the Subsidiaries are insured by insurers of recognized financial
responsibility against such losses and risks and in such amounts as are prudent
and customary in the businesses and location in which the Company and the
Subsidiaries are engaged. Neither the Company nor any Subsidiary has any
knowledge that it will be unable to renew its existing insurance coverage for
the Company and the Subsidiaries as and when such coverage expires or to obtain
similar coverage from similar insurers as may be necessary to continue its
business without a significant increase in cost.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

    (o)    Actions Pending.
There is no action, suit, claim, investigation, arbitration, alternate dispute
resolution proceeding or any other proceeding pending or, to the knowledge of
the Company, threatened against the Company or any Subsidiary which questions
the validity of this Agreement or any of the other Transaction Documents or the
transactions contemplated hereby or thereby or any action taken or to be taken
pursuant hereto or thereto. There is no action, suit, claim, investigation,
arbitration, alternate dispute resolution proceeding or any other proceeding
pending or, to the knowledge of the Company, threatened, against or involving
the Company, any Subsidiary or any of their respective properties or assets.
There are no outstanding orders, judgments, injunctions, awards or decrees of
any court, arbitrator or governmental or regulatory body against the Company or
any Subsidiary or any officers or directors of the Company or Subsidiary in
their capacities as such.

    

    (p)    Compliance with Law.
The business of the Company and the Subsidiaries has been and is presently being
conducted in accordance with all applicable federal, state and local
governmental laws, rules, regulations and ordinances, except for such
noncompliance that, individually or in the aggregate, would not cause a Material
Adverse Effect. The Company and each of its Subsidiaries have all franchises,
permits, licenses, consents and other governmental or regulatory authorizations
and approvals necessary for the conduct of its business as now being conducted
by it unless the failure to possess such franchises, permits, licenses, consents
and other governmental or regulatory authorizations and approvals, individually
or in the aggregate, would not have a Material Adverse Effect.

    

    (q)    Taxes. The Company
and each of the Subsidiaries has accurately prepared and filed all federal,
state and other tax returns required by law to be filed by it, has paid or made
provisions for the payment of all taxes shown to be due and all additional
assessments, and adequate provisions have been and are reflected in the
financial statements of the Company and the Subsidiaries for all current taxes
and other charges to which the Company or any Subsidiary is subject and which
are not currently due and payable. None of the federal income tax returns of the
Company or any Subsidiary have been audited by the Internal Revenue Service. The
Company has no knowledge of any additional assessments, adjustments or
contingent tax liability (whether federal or state) of any nature whatsoever,
whether pending or threatened against the Company or any Subsidiary for any
period, nor of any basis for any such assessment, adjustment or
contingency.

    

    (r)     Certain Fees. No
brokers, finders or financial advisory fees or commissions will be payable by
the Company or any Subsidiary or any Purchaser with respect to the transactions
contemplated by this Agreement.

    

    (s)    Disclosure. Neither
this Agreement or the Schedules hereto nor any other documents, certificates or
instruments furnished to the Purchasers by or on behalf of the Company or any
Subsidiary in connection with the transactions contemplated by this Agreement
contain any untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements made herein or therein, in the light
of the circumstances under which they were made herein or therein, not
misleading.

    

    (t)     Operation of
Business. Except as set forth in Schedule
2.1(t),
the Company and each of the Subsidiaries owns or possesses all patents,
trademarks, domain names (whether or not registered) and any patentable
improvements or copyrightable derivative works thereof, websites and
intellectual property rights relating thereto, service marks, trade names,
copyrights, licenses and authorizations, and all rights with respect to the
foregoing, which are necessary for the conduct of its business as now conducted
without any conflict with the rights of others.

    
      
         

      

      
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    (u)    Environmental
Compliance. The Company and each of its Subsidiaries have obtained all
material approvals, authorization, certificates, consents, licenses, orders and
permits or other similar authorizations of all governmental authorities, or from
any other person, that are required under any Environmental Laws. Except as set
forth on Schedule
2.1(u),
the Commission Documents describe all material permits, licenses and other
authorizations issued under any Environmental Laws to the Company or its
Subsidiaries. “Environmental
Laws” shall mean all applicable laws relating to the protection of the
environment including, without limitation, all requirements pertaining to
reporting, licensing, permitting, controlling, investigating or remediating
emissions, discharges, releases or threatened releases of hazardous substances,
chemical substances, pollutants, contaminants or toxic substances, materials or
wastes, whether solid, liquid or gaseous in nature, into the air, surface water,
groundwater or land, or relating to the manufacture, processing, distribution,
use, treatment, storage, disposal, transport or handling of hazardous
substances, chemical substances, pollutants, contaminants or toxic substances,
material or wastes, whether solid, liquid or gaseous in nature. The Company has
all necessary governmental approvals required under all Environmental Laws and
used in its business or in the business of any of its Subsidiaries. The Company
and each of its Subsidiaries are also in compliance with all other limitations,
restrictions, conditions, standards, requirements, schedules and timetables
required or imposed under all Environmental Laws. Except for such instances as
would not individually or in the aggregate have a Material Adverse Effect, there
are no past or present events, conditions, circumstances, incidents, actions or
omissions relating to or in any way affecting the Company or its Subsidiaries
that violate or may violate any Environmental Law after the Closing Date or that
may give rise to any environmental liability, or otherwise form the basis of any
claim, action, demand, suit, proceeding, hearing, study or investigation (i)
under any Environmental Law, or (ii) based on or related to the manufacture,
processing, distribution, use, treatment, storage (including without limitation
underground storage tanks), disposal, transport or handling, or the emission,
discharge, release or threatened release of any hazardous
substance.

    

    (v)    Books and Record Internal
Accounting Controls. The books and records of the Company and its
Subsidiaries accurately reflect in all material respects the information
relating to the business of the Company and the Subsidiaries, the location and
collection of their assets, and the nature of all transactions giving rise to
the obligations or accounts receivable of the Company or any Subsidiary. The
Company and each of its Subsidiaries maintain a system of internal accounting
controls sufficient, in the judgment of the Company, to provide reasonable
assurance that (i) transactions are executed in accordance with management’s
general or specific authorizations, (ii) transactions are recorded as necessary
to permit preparation of financial statements in conformity with GAAP and to
maintain asset accountability, (iii) access to assets is permitted only in
accordance with management’s general or specific authorization and (iv) the
recorded accountability for assets is compared with the existing assets at
reasonable intervals and appropriate action is taken with respect to any
differences.

    

    (w)   Material Agreements.
Except for the Transaction Documents (with respect to clause (i) only), as
disclosed in the Commission Documents or as set forth on Schedule
2.1(w) hereto, or as would not be reasonably likely to have a Material
Adverse Effect, (i) the Company and each of its Subsidiaries have performed all
obligations required to be performed by them to date under any written or oral
contract, instrument, agreement, commitment, obligation, plan or arrangement,
filed or required to be filed with the Commission (the “Material
Agreements”), (ii) neither the Company nor any of its Subsidiaries has
received any notice of default under any Material Agreement and, (iii) to the
best of the Company’s knowledge, neither the Company nor any of its Subsidiaries
is in default under any Material Agreement now in effect.

    
      
         

      

      
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    (x)     Intellectual
Property.  The Company and its Subsidiaries own, or have rights
to use, all inventions, know-how, patents, patent applications, trademarks,
trademark applications, service marks, trade names, copyrights, licenses, trade
secrets and other similar rights that are necessary or material for use in
connection with their respective businesses now operated by them and presently
contemplated to be operated by them which the failure to so have would have or
reasonably be expected to result in a Material Adverse Effect (collectively, the
“Intellectual
Property Rights”).  None of the Company’s or any Subsidiary’s
Intellectual Property Rights have expired or terminated, or are expected to
expire or terminate, within three years from the date of this
Agreement.  None of the Company’s nor any Subsidiary has received
written notice that the Intellectual Property Rights used by the Company or any
Subsidiary violates or infringes upon the rights of any Person (as defined
below).  To the knowledge of the Company, the Company and its
Subsidiaries’ patents and other Intellectual Property Rights and the present
activities of the Company and its Subsidiaries do not infringe any patent,
copyright, trademark, trade name or other proprietary rights of any third party,
and there is no claim, action or proceeding being made or brought against, or to
the Company’s knowledge, being threatened against, the Company or any Subsidiary
regarding any of the Intellectual Property Rights.  The Company does
not have any knowledge of an infringement by another Person of any of the
Intellectual Property Rights by third parties and has no reason to believe that
any of its Intellectual Property Rights is unenforceable.  The Company
has taken commercially reasonable security measures to protect the secrecy,
confidentiality and value of all of their intellectual properties. “Person”
means an individual or a corporation, partnership, trust, incorporated or
unincorporated association, joint venture, limited liability company, joint
stock company, government (or an agency or political subdivision thereof) or
other entity of any kind.

    

    (y)    Transactions with
Affiliates. Except as set forth in the Commission Documents, there are no
loans, leases, agreements, contracts, royalty agreements, management contracts
or arrangements or other continuing transactions between (a) the Company or any
Subsidiary on the one hand, and (b) on the other hand, any officer, employee,
consultant or director of the Company or any of its Subsidiaries, or any person
owning any capital stock of the Company or any Subsidiary or any member of the
immediate family of such officer, employee, consultant, director or stockholder,
or any corporation or other entity controlled by such officer, employee,
consultant, director or stockholder, or a member of the immediate family of such
officer, employee, consultant, director or stockholder.

    

    (z)     Sarbanes-Oxley; Disclosure
Controls. The Company is in compliance in all material respects with all
of the provisions of the Sarbanes-Oxley Act of 2002 which are applicable to it
as of the Closing Date. The Company has established disclosure controls and
procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the
Company and designed such disclosure controls and procedures to ensure that
material information relating to the Company is made known to the certifying
officers by others within those entities, particularly during the period in
which the Company’s most recently filed periodic report under the Exchange Act
is being prepared. The Company’s certifying officers have evaluated the
effectiveness of the Company’s disclosure controls and procedures as of the end
of the most recent periodic reporting period under the Exchange Act (such date,
the “Evaluation
Date”). The Company presented in its most recently filed periodic report
under the Exchange Act the conclusions of the certifying officers about the
effectiveness of the disclosure controls and procedures based on their
evaluations as of the Evaluation Date. Since the Evaluation Date, there have
been no significant changes in the Company’s internal controls over financial
reporting (as such term is defined in Exchange Act Rules 13a-15(f) and
15d-15(f)) or, to the Company’s knowledge, in other factors that could
reasonably be expected to materially affect the Company’s internal controls over
financial reporting

    
      
         

      

      
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    (aa)  Securities Act of
1933. Based in material part upon the representations herein of the
Purchasers, the Company has complied and will comply with all applicable federal
and state securities laws in connection with the offer, issuance and sale of the
Securities hereunder. Neither the Company nor anyone acting on its behalf,
directly or indirectly, has or will sell, offer to sell or solicit offers to buy
any of the Securities or similar securities to, or solicit offers with respect
thereto from, or enter into any preliminary conversations or negotiations
relating thereto with, any person, or has taken or will take any action so as to
bring the issuance and sale of any of the Securities under the registration
provisions of the Securities Act and applicable state securities laws, and
neither the Company nor any of its affiliates, nor any person acting on its or
their behalf, has engaged in any form of general solicitation or general
advertising (within the meaning of Regulation D under the Securities Act) in
connection with the offer or sale of any of the Securities.

    

    (bb)  Governmental
Approvals. Except for the filing of any notice prior or subsequent to the
Closing Date that may be required under applicable state and/or Federal
securities laws (which if required, shall be filed on a timely basis), including
the filing of a Form D and a registration statement or statements pursuant to
Section
7.1 herein, no authorization, consent, approval, license, exemption of,
filing or registration with any court or governmental department, commission,
board, bureau, agency or instrumentality, domestic or foreign, is or will be
necessary for, or in connection with, the execution or delivery of the Notes and
the Warrants, or for the performance by the Company of its obligations under the
Transaction Documents.

    

    (cc)  Employees. Neither
the Company nor any Subsidiary has any collective bargaining arrangements or
agreements covering any of its employees. Except as set forth on Schedule
2.1(cc),
neither the Company nor any Subsidiary has any employment contract, agreement,
regarding proprietary information, non-competition agreement, non-solicitation
agreement, confidentiality agreement, or any other similar contract or
restrictive covenant, relating to the right of any officer, employee or
consultant to be employed or engaged by the Company or such Subsidiary. No
officer, consultant or key employee of the Company or any Subsidiary whose
termination, either individually or in the aggregate, could have a Material
Adverse Effect, has terminated or, to the knowledge of the Company, has any
present intention of terminating his or her employment or engagement with the
Company or any Subsidiary.

    

    (dd)  Absence of Certain
Developments. Except as set forth on Schedule
2.1(dd), since December 31, 2008, neither the Company nor any Subsidiary
has:

    

    (i)        issued
any stock, bonds or other corporate securities or any rights, options or
warrants with respect thereto;

    

    (ii)       borrowed
any amount or incurred or become subject to any liabilities (absolute or
contingent) except current liabilities incurred in the ordinary course of
business which are comparable in nature and amount to the current liabilities
incurred in the ordinary course of business during the comparable portion of its
prior fiscal year;

    

    (iii)     
discharged or satisfied any lien or encumbrance or paid any obligation or
liability (absolute or contingent), other than current liabilities paid in the
ordinary course of business;

    

    (iv)      declared
or made any payment or distribution of cash or other property to stockholders
with respect to its stock, or purchased or redeemed, or made any agreements so
to purchase or redeem, any shares of its capital stock;

    

    (v)       sold,
assigned or transferred any other tangible assets, or canceled any debts or
claims, except in the ordinary course of business;

    

    (vi)      sold,
assigned or transferred any patent rights, trademarks, trade names, copyrights,
trade secrets or other intangible assets or intellectual property rights, or
disclosed any proprietary confidential information to any person except to
customers in the ordinary course of business;

    
      
         

      

      
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    (vii)    suffered
any substantial losses or waived any rights of material value, whether or not in
the ordinary course of business, or suffered the loss of any material amount of
prospective business;

    

    (viii)   made any
changes in employee compensation except in the ordinary course of business and
consistent with past practices;

    

    (ix)      made
capital expenditures or commitments therefor that aggregate in excess of
$100,000;

    

    (x)       entered
into any other transaction other than in the ordinary course of business, or
entered into any other material transaction, whether or not in the ordinary
course of business;

    

    (xi)      made
charitable contributions or pledges in excess of $25,000;

    

    (xii)     suffered any
material damage, destruction or casualty loss, whether or not covered by
insurance;

    

    (xiii)    experienced any
material problems with labor or management in connection with the terms and
conditions of their employment;

    

    (xiv)    effected
any two or more events of the foregoing kind which in the aggregate would be
material to the Company or its Subsidiaries; or

    

    (xv)     entered into
an agreement, written or otherwise, to take any of the foregoing
actions.

    

    (ee)  Public Utility Holding
Company Act and Investment Company Act Status. The Company is not a
“holding company” or a “public utility company” as such terms are defined in the
Public Utility Holding Company Act of 1935, as amended. The Company is not, and
as a result of and immediately upon the Closing will not be, an “investment
company” or a company “controlled” by an “investment company,” within the
meaning of the Investment Company Act of 1940, as amended.

    

    (ff)    ERISA. No liability
to the Pension Benefit Guaranty Corporation has been incurred with respect to
any Plan (as defined below) by the Company or any of its Subsidiaries which is
or would be materially adverse to the Company and its Subsidiaries. The
execution and delivery of this Agreement and the issuance and sale of the
Securities will not involve any transaction which is subject to the prohibitions
of Section 406 of ERISA or in connection with which a tax could be imposed
pursuant to Section 4975 of the Internal Revenue Code of 1986, as amended (the
“Code”);
provided that if any of
the Purchasers, or any person or entity that owns a beneficial interest in any
of the Purchasers, is an “employee pension benefit plan” (within the meaning of
Section 3(2) of ERISA) with respect to which the Company is a “party in
interest” (within the meaning of Section 3(14) of ERISA), the requirements of
Sections 407(d)(5) and 408(e) of ERISA, if applicable, are met. As used in this
Section
2.1(ff),
the term “Plan”
shall mean an “employee pension benefit plan” (as defined in Section 3 of ERISA)
which is or has been established or maintained, or to which contributions are or
have been made, by the Company or any Subsidiary or by any trade or business,
whether or not incorporated, which, together with the Company or any Subsidiary,
is under common control, as described in Section 414(b) or (c) of the
Code.

    
      
         

      

      
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    (gg)  Dilutive Effect. The
Company understands and acknowledges that its obligation to issue the Warrant
Shares upon the exercise of the Warrants in accordance with this Agreement and
the Warrants are absolute and unconditional regardless of the dilutive effect
that such issuance may have on the ownership interest of other stockholders of
the Company.

    

    (hh)  No Integrated
Offering. Neither the Company, nor any of its affiliates, nor any person
acting on its or their behalf, has directly or indirectly made any offers or
sales of any security or solicited any offers to buy any security under
circumstances that would cause the offering of the Securities pursuant to this
Agreement to be integrated with prior offerings by the Company for purposes of
the Securities Act which would prevent the Company from selling the Securities
pursuant to Rule 506 under the Securities Act, or any applicable
exchange-related stockholder approval provisions, nor will the Company or any of
its affiliates or Subsidiaries take any action or steps that would cause the
offering of the Securities to be integrated with other offerings.

    

    (ii)    Listing and Maintenance
Requirements.  Except as set forth in the Commission Documents,
the Company has not, in the two (2) years preceding the date hereof, received
notice (written or oral) from any Trading Market on which the Common Stock is or
has been listed or quoted to the effect that the Company is not in compliance
with the listing or maintenance requirements of such Trading
Market.  Except as set forth in the Commission Documents, the Company
is, and has no reason to believe that it will not in the foreseeable future
continue to be, in compliance with all such listing and maintenance
requirements. “Trading
Market” means the OTC Bulletin Board or any other Eligible Market, or any
other national securities exchange, market or trading or quotation facility on
which the Common Stock is then listed or quoted. “Eligible
Market” means any of the New York Stock Exchange, the American Stock
Exchange, the NASDAQ Global Select Market, the NASDAQ Global Market, the NASDAQ
Capital Market or the Over-the-Counter Bulletin Board.

    

    (jj)    Independent Nature of
Purchasers. The Company acknowledges that the obligations of each
Purchaser under the Transaction Documents are several and not joint with the
obligations of any other Purchaser, and no Purchaser shall be responsible in any
way for the performance of the obligations of any other Purchaser under the
Transaction Documents. The Company acknowledges that the decision of each
Purchaser to purchase securities pursuant to this Agreement has been made by
such Purchaser independently of any other purchase and independently of any
information, materials, statements or opinions as to the business, affairs,
operations, assets, properties, liabilities, results of operations, condition
(financial or otherwise) or prospects of the Company or of its Subsidiaries
which may have made or given by any other Purchaser or by any agent or employee
of any other Purchaser, and no Purchaser or any of its agents or employees shall
have any liability to any Purchaser (or any other person) relating to or arising
from any such information, materials, statements or opinions. The Company
acknowledges that nothing contained herein, or in any Transaction Document, and
no action taken by any Purchaser pursuant hereto or thereto, shall be deemed to
constitute the Purchasers as a partnership, an association, a joint venture or
any other kind of entity, or create a presumption that the Purchasers are in any
way acting in concert or as a group with respect to such obligations or the
transactions contemplated by the Transaction Documents. The Company acknowledges
that each Purchaser shall be entitled to independently protect and enforce its
rights, including without limitation, the rights arising out of this Agreement
or out of the other Transaction Documents, and it shall not be necessary for any
other Purchaser to be joined as an additional party in any proceeding for such
purpose. The Company acknowledges that for reasons of administrative convenience
only, the Transaction Documents have been prepared by counsel for one of the
Purchasers and such counsel does not represent all of the Purchasers but only
such Purchaser and the other Purchasers have retained their own individual
counsel with respect to the transactions contemplated hereby. The Company
acknowledges that it has elected to provide all Purchasers with the same terms
and Transaction Documents for the convenience of the Company and not because it
was required or requested to do so by the Purchasers.

    
      
         

      

      
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    (kk)   Questionable
Payments. Neither the Company nor any of its Subsidiaries, nor, to the
Company’s knowledge, any directors, officers, employees, agents or other Persons
acting on behalf of the Company or any of its Subsidiaries has, in the course of
its actions for, or on behalf of, the Company: (a) directly or indirectly, used
any corporate funds for unlawful contributions, gifts, entertainment or other
unlawful expenses relating to foreign or domestic political activity; (b) made
any direct or indirect unlawful payments to any foreign or domestic governmental
officials or employees or to any foreign or domestic political parties or
campaigns from corporate funds; (c) violated in any material respect any
provision of the Foreign Corrupt Practices Act of 1977, as amended; or (d) made
any other unlawful bribe, rebate, payoff, influence payment, kickback or other
unlawful payment to any foreign or domestic government official or
employee.

    

    (ll)     Application of Takeover
Protections. The Company and its board of directors have taken all
necessary action, if any, in order to render inapplicable any control share
acquisition, business combination, poison pill (including any distribution under
a rights agreement) or other similar anti-takeover provision under the Company’s
charter documents or the laws of its state of incorporation that is or could
reasonably be expected to become applicable to any of the Purchasers as a result
of the Purchasers and the Company fulfilling their obligations or exercising
their rights under the Transaction Documents, including, without limitation, the
Company’s issuance of the Securities and the Purchasers’ ownership of the
Securities.

    

    (mm) Transfer Agent. The
name, address, telephone number, fax number, contact person and email address of
the Company’s current transfer agent is set forth on Schedule
2.1(mm)
hereto.

    

    Section
2.2       Representations and
Warranties of the Purchasers. Each Purchaser hereby makes the following
representations and warranties to the Company (with respect solely to itself and
not with respect to any other Purchaser), as of the date hereof, and as of the
Closing Date:

    

    (a)    Organization and Standing of
the Purchasers. If such Purchaser is an entity, such Purchaser is a
corporation, partnership or limited liability company duly incorporated or
organized, validly existing and in good standing under the laws of the
jurisdiction of its incorporation or organization.

    

    (b)    Authorization and
Power. Such Purchaser has the requisite power and authority to enter into
and perform this Agreement and to purchase the Notes and Warrants being sold to
it hereunder. The execution, delivery and performance of this Agreement by such
Purchaser and the consummation by it of the transactions contemplated hereby and
thereby have been duly authorized by all necessary corporate or partnership
action, and no further consent or authorization of such Purchaser or its board
of directors, stockholders or partners, as the case may be, is required. This
Agreement has been duly authorized, executed and delivered by such Purchaser and
constitutes, or shall constitute when executed and delivered, a valid and
binding obligation of the Purchaser enforceable against the Purchaser in
accordance with the terms thereof, except as such enforceability may be limited
by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation,
conservatorship, receivership or similar laws relating to, or affecting
generally the enforcement of, creditor’s rights and remedies or by other
equitable principles of general application.

    
      
         

      

      
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    (c)    No Conflicts. The
execution, delivery and performance of this Agreement and the consummation by
such Purchaser of the transactions contemplated hereby or relating hereto do not
and will not (i) result in a violation of such Purchaser’s charter documents or
bylaws or other organizational documents or (ii) conflict with, or constitute a
default (or an event which with notice or lapse of time or both would become a
default) under, or give to others any rights of termination, amendment,
acceleration or cancellation of any agreement, indenture or instrument or
obligation to which such Purchaser is a party or by which its properties or
assets are bound, or result in a violation of any law, rule, or regulation, or
any order, judgment or decree of any court or governmental agency applicable to
such Purchaser or its properties (except for such conflicts, defaults and
violations as would not, individually or in the aggregate, have a material
adverse effect on such Purchaser). Such Purchaser is not required to obtain any
consent, authorization or order of, or make any filing or registration with, any
court or governmental agency in order for it to execute, deliver or perform any
of its obligations under this Agreement or to purchase the Notes or acquire the
Warrants in accordance with the terms hereof; provided that for purposes of
the representation made in this sentence, such Purchaser is assuming and relying
upon the accuracy of the relevant representations and agreements of the Company
herein.

    

    (d)    Acquisition for
Investment. Such Purchaser is acquiring the Securities solely for its own
account for the purpose of investment and not with a view to or for sale in
connection with distribution. Each Purchaser does not have a present intention
to sell the Securities, nor a present arrangement (whether or not legally
binding) or intention to effect any distribution of the Securities to or through
any person or entity; provided, however, that by
making the representations herein and subject to Section
2.2(h)
below, such Purchaser does not agree to hold the Securities for any minimum or
other specific term and reserves the right to dispose of the Securities at any
time in accordance with Federal and state securities laws applicable to such
disposition. Such Purchaser acknowledges that it is able to bear the financial
risks associated with an investment in the Securities and that it has been given
full access to such records of the Company and the Subsidiaries and to the
officers of the Company and the Subsidiaries and received such information as it
has deemed necessary or appropriate to conduct its due diligence investigation
and has sufficient knowledge and experience in investing in companies similar to
the Company in terms of the Company’s stage of development so as to be able to
evaluate the risks and merits of its investment in the Company.

    

    (e)    Status of Purchasers.
Such Purchaser is an “accredited investor” as defined in Regulation D
promulgated under the Securities Act. Such Purchaser is not required to be
registered as a broker-dealer under Section 15 of the Exchange Act and such
Purchaser is not a broker-dealer.

    

    (f)     Opportunities for Additional
Information. Such Purchaser acknowledges that such Purchaser has had the
opportunity to ask questions of and receive answers from, or obtain additional
information from, the executive officers of the Company concerning the financial
and other affairs of the Company, and to the extent deemed necessary in light of
such Purchaser’s personal knowledge of the Company’s affairs, such Purchaser has
asked such questions and received answers to the full satisfaction of such
Purchaser, and such Purchaser desires to invest in the Company.

    

    (g)    No General
Solicitation. Such Purchaser acknowledges that the Securities were not
offered to such Purchaser by means of any form of general or public solicitation
or general advertising, or publicly disseminated advertisements or sales
literature, including (i) any advertisement, article, notice or other
communication published in any newspaper, magazine, or similar media, or
broadcast over television or radio, or (ii) any seminar or meeting to which such
Purchaser was invited by any of the foregoing means of
communications.

    

    (h)    Rule 144. Such
Purchaser understands that the Securities must be held indefinitely unless such
Securities are registered under the Securities Act or an exemption from
registration is available. Such Purchaser acknowledges that such Purchaser is
familiar with Rule 144 of the rules and regulations of the Commission, as
amended, promulgated pursuant to the Securities Act (“Rule
144”), and that such Purchaser has been advised that Rule 144 permits
resales only under certain circumstances. Such Purchaser understands that to the
extent that Rule 144 is not available, such Purchaser will be unable to sell
any Securities without either registration under the Securities Act or the
existence of another exemption from such registration
requirement.

    
      
         

      

      
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    (i)     General. Such
Purchaser understands that the Securities are being offered and sold in reliance
on a transactional exemption from the registration requirement of Federal and
state securities laws and the Company is relying upon the truth and accuracy of
the representations, warranties, agreements, acknowledgments and understandings
of such Purchaser set forth herein in order to determine the applicability of
such exemptions and the suitability of such Purchaser to acquire the
Securities.

    

    (j)     Independent
Investment. Except as may be disclosed in any filings with the Commission
by it under Section 13 and/or Section 16 of the Exchange Act, such Purchaser has
not agreed to act with any other Purchaser for the purpose of acquiring,
holding, voting or disposing of the Securities purchased hereunder for purposes
of Section 13(d) under the Exchange Act, and such Purchaser is acting
independently with respect to its investment in the Securities.

    

    (k)    Short Sales.
Purchaser has not, during the last thirty (30) days prior to the date hereof,
directly or indirectly, nor has any party acting on behalf of or pursuant to any
understanding with such Purchaser, effected or agreed to effect any short sale,
whether or not against the box, established any “put equivalent position” (as
defined in Rule 16(a)-1(h) under the Exchange Act) with respect to any security
of the Company, granted any other right (including, without limitation, any put
or call option) with respect to any security of the Company or with respect to
any security that includes, relates to, or derives any significant part of its
value from any security of the Company or otherwise sought to hedge its
positioning of the Company’s securities.  Such Purchaser shall not,
and shall cause any affiliates not to, engage, directly or indirectly, in any
short sale transactions in the securities of the Company during the period from
the date hereof until such time as one (1) year from the date of effectiveness
of the Registration Statement (as defined in Section
7.1). Such Purchaser understands and acknowledges, severally and not
jointly with any other Purchaser, that the Commission currently takes the
position that covering a short position established prior to effectiveness of a
resale registration statement with shares included in such registration
statement would be a violation of Section 5 of the Securities Act, as set forth
in Item 65, Section 5 under Section A, of the Manual of Publicly Available
Telephone Interpretations, dated July 1997, compiled by the Office of Chief
Counsel, Division of Corporation Finance

    

    ARTICLE
III

    Covenants

    

    The
Company covenants with each of the Purchasers as follows, which covenants are
for the benefit of each Purchaser and its permitted assignees (as defined
herein):

    

    Section
3.1       Securities
Compliance. The Company shall notify the Commission in accordance with
their rules and regulations, of the transactions contemplated by any of the
Transaction Documents, including filing a Form D with respect to the Notes,
Warrants and the Warrant Shares as required under Regulation D and
applicable “blue sky” laws, and shall take all other necessary action and
proceedings as may be required and permitted by applicable law, rule and
regulation, for the legal and valid issuance of the Notes, the Warrants and
the Warrant Shares to the Purchasers or subsequent holders.

    
      
         

      

      
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    Section
3.2       Registration and
Listing. The Company shall (a) comply in all respects with its reporting
and filing obligations under the Exchange Act, (b) comply with all requirements
related to any registration statement filed pursuant to this Agreement, and (c)
not take any action or file any document (whether or not permitted by the
Securities Act or the rules promulgated thereunder) to terminate or suspend such
registration or to terminate or suspend its reporting and filing obligations
under the Exchange Act or Securities Act, except as permitted herein. The
Company will take all action necessary to continue the listing or trading of its
Common Stock on the OTC Bulletin Board or other exchange or market on which the
Common Stock is trading or may be traded in the future. Subject to the terms of
the Transaction Documents, the Company further covenants that it will take such
further action as the Purchasers may reasonably request, all to the extent
required from time to time to enable the Purchasers to sell the Securities
without registration under the Securities Act within the limitation of the
exemptions provided by Rule 144 promulgated under the Securities Act. Upon the
request of the Purchasers, the Company shall deliver to the Purchasers a written
certification of a duly authorized officer as to whether it has complied with
such requirements.

     

    Section
3.3       Inspection
Rights. In
the event that the Purchaser no longer has a representative on the Company’s
board of directors, the Company shall permit, during normal business hours and
upon reasonable request and reasonable notice, each Purchaser or any employees,
agents or representatives thereof, so long as any Notes remain outstanding, for
purposes reasonably related to such Purchaser’s interests as a convertible
debtholder, to examine and make reasonable copies of and extracts from the
records and books of account of, and visit and inspect the properties, assets,
operations and business of the Company and any Subsidiary, and to discuss the
affairs, finances and accounts of the Company and any Subsidiary with any of its
officers, consultants, directors, and key employees.  As a condition
to such inspection, Purchasers shall keep such information confidential; provided that such
information may be disclosed (i) to the extent required by applicable law,
regulation or legal process, subpoena, civil investigative demand or other
similar process, (ii) to the extent reasonably necessary in connection with the
enforcement of rights under this Agreement, (iii) to any governmental, judicial
or regulatory authority requiring or requesting such information, and (iv) to
its directors, officers, employees, agents, managers and general partners,
consultants, accountants, financial advisers, legal counsel and other
professional advisers.

     

    Section
3.4      Compliance with Laws.
The Company shall comply, and cause each Subsidiary, whether such Subsidiary is
in existence as of the date of this agreement or formed or acquired subsequent
to the date of this agreement, to comply, with all applicable laws, rules,
regulations and orders, noncompliance with which could have a Material Adverse
Effect.

    

    Section
3.5       Keeping of Records and Books
of Account. The Company shall keep and cause each Subsidiary to keep
adequate records and books of account, in which complete entries will be made in
accordance with GAAP consistently applied, reflecting all financial transactions
of the Company and its Subsidiaries, and in which, for each fiscal year, all
proper reserves for depreciation, depletion, obsolescence, amortization, taxes,
bad debts and other purposes in connection with its business shall be
made.

    

     Section
3.6      Furnishing of
Information. Until all of the Securities are eligible for sale
without limitations concerning the availability of current public information
under Rule 144 promulgated under the Securities Act, the Company covenants to
timely file (or obtain extensions in respect thereof and file within the
applicable grace period) all reports required to be filed by the Company after
the date hereof pursuant to the Exchange Act. Until all of the Securities are
eligible for sale without limitations concerning the availability of current
public information under Rule 144 promulgated under the Securities Act, if the
Company is not required to file reports pursuant to such laws, it will prepare
and furnish to the Purchasers and make publicly available in accordance with
Rule 144(c) such information as is required for the Purchasers to sell the
Securities under Rule 144. The Company further covenants that it will take such
further action as any holder of Securities may reasonably request, all to the
extent required from time to time to enable such Person to sell the Securities
without registration under the Securities Act within the limitation of the
exemptions provided by Rule 144.

    
      
         

      

      
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    Section 3.7      Reporting
Requirements. If the Commission ceases making periodic reports filed
under the Exchange Act available via the Internet, then at a Purchaser’s request
the Company shall furnish the following to such Purchaser so long as such
Purchaser shall be obligated hereunder to purchase the Notes or shall
beneficially own any Securities:

    

    (a)    quarterly
reports filed with the Commission on Form 10-Q as soon as practical after the
document is filed with the Commission, and in any event within five (5) days
after the document is filed with the Commission;

    

    (b)    annual
reports filed with the Commission on Form 10-K as soon as practical after the
document is filed with the Commission, and in any event within five (5) days
after the document is filed with the Commission; and

    

    (c)    copies of
all notices and information, including without limitation notices and proxy
statements in connection with any meetings, that are provided to holders of
shares of Common Stock, contemporaneously with the delivery of such notices or
information to such holders of Common Stock.

    

    Section
3.8       Amendments. The
Company shall not amend or waive any provision of the Certificate or Bylaws of
the Company in any way that would materially and adversely affect the rights of
the holders of the Notes and/or Warrants. No consideration shall be offered or
paid to any holders of the Notes or the Warrants to amend or consent to a waiver
or modification of any provision of any of the Transaction Documents unless the
same consideration also is offered to all of the parties to the Transaction
Documents, holders of Notes or Warrants, as the case may be.  The
Company has not, directly or indirectly, made any agreements with any Purchasers
relating to the terms or conditions of the transactions contemplated by the
Transaction Documents except as set forth in the Transaction
Documents.  Without limiting the foregoing, the Company confirms that,
except as set forth in this Agreement, no Purchaser has made any commitment or
promise or has any other obligation to provide any financing to the Company or
otherwise.

    

    Section 3.9      Other Agreements. The
Company shall not enter into any agreement in which the terms of such agreement
would materially restrict or impair the right or ability to perform of the
Company or any Subsidiary under any Transaction Document.

    

    Section 3.10    Distributions. So
long as any Notes remain outstanding, the Company agrees that it shall not
(i) declare or pay any dividends or make any distributions to any holder(s) of
Common Stock or (ii) purchase or otherwise acquire for value, directly or
indirectly, any Common Stock or other equity security of the
Company.

    

    Section 3.11    Use of Proceeds. The
net proceeds from the sale of the Notes and Warrants hereunder shall be used by
the Company for general corporate purposes, and not to redeem any Common
Stock or securities convertible, exercisable or exchangeable into Common
Stock, to settle any outstanding litigation or to cause any increase in
management’s compensation, direct or otherwise, in a manner other than in the
ordinary course of business.  An estimated allocation of the net
proceeds from the sale of the Securities hereunder is set forth on Schedule
3.11
hereto.

    

    Section 3.12    Reservation of
Shares. So long as any of the Notes or Warrants remain outstanding, the
Company shall take all action necessary to at all times have authorized, and
reserved for the purpose of issuance, no less than one hundred twenty percent
(120%) of the aggregate number of shares of Common Stock needed to provide for
the issuance of the Warrant Shares.

    
      
         

      

      
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    Section 3.13    Transfer Agent
Instructions. The Company shall issue irrevocable instructions to its
transfer agent, and any subsequent transfer agent, to issue certificates,
registered in the name of each Purchaser or its respective nominee(s), for the
Warrant Shares in such amounts as specified from time to time by each Purchaser
to the Company upon exercise of the Warrants in the form of Exhibit
D
attached hereto (the “Irrevocable
Transfer Agent Instructions”). Prior to registration of the Warrant
Shares under the Securities Act, all such certificates shall bear the
restrictive legend specified in Section
5.1 of this Agreement. The Company warrants that no instruction other
than the Irrevocable Transfer Agent Instructions referred to in this Section
3.13
will be given by the Company to its transfer agent and that the Warrant Shares
shall otherwise be freely transferable on the books and records of the Company
as and to the extent provided in this Agreement. If a Purchaser provides the
Company with an opinion of counsel, in a generally acceptable form, to the
effect that a public sale, assignment or transfer of theWarrant Shares may be
made without registration under the Securities Act or the Purchaser provides the
Company with reasonable assurances that such Warrant Shares can be sold pursuant
to Rule 144 without any restriction as to the number of securities acquired as
of a particular date that can then be immediately sold, the Company shall permit
the transfer, and, in the case of the Warrant Shares, promptly instruct its
transfer agent to issue one or more certificates in such name and in such
denominations as specified by such Purchaser and without any restrictive legend.
The Company acknowledges that a breach by it of its obligations under this Section
3.13
will cause irreparable harm to the Purchasers by vitiating the intent and
purpose of the transaction contemplated hereby. Accordingly, the Company
acknowledges that the remedy at law for a breach of its obligations under this
Section
3.13
will be inadequate and agrees, in the event of a breach or threatened breach by
the Company of the provisions of this Section
3.13,
that the Purchasers shall be entitled, in addition to all other available
remedies, to an order and/or injunction restraining any breach and requiring
immediate issuance and transfer, without the necessity of showing economic loss
and without any bond or other security being required.

    

    Section 3.14    Disposition of
Assets. So long as any Notes remain outstanding, neither the Company nor
any Subsidiary shall sell, transfer or otherwise dispose of any of its
properties, assets and rights including, without limitation, its software and
intellectual property, to any person except for (A) sales to customers in the
ordinary course of business; (B) sales of assets not in excess of 25% of the
Company’s total assets as shown on its balance sheet; or (C) with the prior
written consent of the holders of a majority of the holders of the Notes and
Warrants then outstanding.

    

    Section 3.15    Reporting
Status. So
long as a Purchaser beneficially owns any of the Securities, the Company shall
timely file all reports required to be filed with the Commission pursuant to the
Exchange Act, and the Company shall not cease filing reports under the Exchange
Act even if the Exchange Act or the rules and regulations thereunder would
permit such termination.

    

    Section 3.16    Disclosure of
Transaction. The Company shall issue a press release describing the
material terms of the transactions contemplated hereby (the “Press
Release”) as soon as practicable after the Closing but in no event later
than four (4) business days after the Closing has been consummated. The Company
shall also file with the Commission a Current Report on Form 8-K (the “Form
8-K”) describing the material terms of the transactions contemplated
hereby (and attaching as exhibits thereto this Agreement, the form of Note, the
form of Warrant and the Press Release) as soon as practicable following the
Closing Date but in no event more than four (4) Trading Days following the
Closing Date, which Press Release and Form 8-K shall be subject to prior review
and comment by counsel for the Purchasers. “Trading
Day” means any day during which the OTC Bulletin Board (or other
quotation venue or principal exchange on which the Common Stock is traded) shall
be open for trading.

    
      
         

      

      
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    Section 3.17    Disclosure of Material
Information. Except for any information disclosed to Robert Thomson, the
Company represents, covenants and agrees that neither it nor any other person
acting on its behalf has provided or will provide any Purchaser or its agents or
counsel with any information that the Company believes constitutes material
non-public information (other than with respect to the transactions contemplated
by this Agreement), unless prior thereto such Purchaser shall have executed a
written agreement regarding the confidentiality and use of such information. The
Company understands and confirms that each Purchaser shall be relying on the
foregoing representations in effecting transactions in securities of the
Company.

    

    Section 3.18    Pledge of Securities.
The Company acknowledges and agrees that the Securities may be pledged by a
Purchaser in connection with a bona fide margin agreement or
other loan or financing arrangement that is secured by the Securities. The
pledge of Securities shall not be deemed to be a transfer, sale or assignment of
the Securities hereunder, and no Purchaser effecting a pledge of Securities
shall be required to provide the Company with any notice thereof or otherwise
make any delivery to the Company pursuant to this Agreement or any other
Transaction Document; provided that a Purchaser and
its pledgee shall be required to comply with the provisions of Article
V hereof in order to effect a sale, transfer or assignment of Securities
to such pledgee. At the Purchasers’ expense, the Company hereby agrees to
execute and deliver such documentation as a pledgee of the Securities may
reasonably request in connection with a pledge of the Securities to such pledgee
by a Purchaser.

    

    Section 3.19    Form S-1 Eligibility. The
Company currently meets the “registrant eligibility” and transaction
requirements set forth in the general instructions to Form S-1 applicable to
“resale” registrations on Form S-1 and the Company shall file all reports
required to be filed by the Company with the Commission in a timely
manner.

    

    Section 3.20    DTC. Not later than
the effective date of the Registration Statement, the Company shall cause its
Common Stock to be eligible for transfer with its transfer agent pursuant to the
Depository Trust Company Automated Securities Transfer Program.

    

    Section
3.21    Issuance of Variable
Securities. The Company shall not
issue any Options or Convertible Securities (each as defined in the Note) with
an exercise price or a conversion price or a number of underlying shares that
floats or resets or otherwise varies or is subject to adjustment based (directly
or indirectly) on market prices of the Common Stock.

    

    Section
3.22    Approval of
Acquisitions.  So long as any Notes remain outstanding, the
Company shall not effect, or agree to effect, an acquisition or buy out of or
with any entity (including without limitation the acquisition of a substantial
portion of the outstanding securities or assets of another entity other than in
the ordinary course of business), or a consolidation or merger of the Company
with or into any other corporation or corporations (or other entity or
entities), or a sale of all or substantially all of the assets of the Company,
or the effectuation by the Company of a transaction or series of related
transactions in which more than 50% of the voting shares of the Company is
disposed of or conveyed, without providing the holders of the Notes with ten
(10) days’ notice of such transaction.

    

    Section
3.23    Most Favored Nations.
If the Company has, on or prior to the date of this Agreement, entered into, or
shall in the future enter into, any agreement with any purchaser or holder of
capital stock of the Company, by providing such purchaser or holder with any
terms that are more favorable than the rights made available to the Purchasers
pursuant any terms set out in the Transaction Documents in issue as of the date
hereof, the Company shall promptly notify the Purchasers of such terms in
writing and Purchasers shall have the right to elect in writing within thirty
(30) days of the receipt of such notice to elect to have such terms apply to
such Transaction Documents.  This provision shall only apply to an
equity or convertible debt investment by one or more investors in excess of $3.0
million and shall terminate upon the earlier to occur of (A) one (1) year from
the date of this Agreement or (B) at any time Purchasers own in the aggregate
less than four (4%) percent of the Company’s outstanding common stock on a fully
diluted basis.

    
      
         

      

      
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    ARTICLE
IV

    Conditions

    

    Section
4.1       Conditions Precedent to the
Obligation of the Company to Sell the Securities. The
obligation hereunder of the Company to issue and sell the Securities to the
Purchasers at the Closing is subject to the satisfaction or waiver, at or before
the Closing, of each of the conditions set forth below. These conditions are for
the Company’s sole benefit and may be waived by the Company at any time in its
sole discretion.

    

    (a)    Accuracy of Each
Purchaser’s Representations and
Warranties. The representations and warranties of each Purchaser shall be
true and correct in all material respects as of the date when made and as of the
Closing Date as though made at that time, except for representations and
warranties that are expressly made as of a particular date, which shall be true
and correct in all material respects as of such date.

    

    (b)    Performance by the
Purchasers. Each Purchaser shall have performed, satisfied and complied
in all respects with all covenants, agreements and conditions required by this
Agreement to be performed, satisfied or complied with by such Purchaser at or
prior to the Closing.

    

    (c)    No Injunction. No
statute, rule, regulation, executive order, decree, ruling or injunction shall
have been enacted, entered, promulgated or endorsed by any court or governmental
authority of competent jurisdiction which prohibits the consummation of any of
the transactions contemplated by this Agreement.

    

    (d)    Delivery of Purchase
Price. The Purchase Price for the Securities to be issued at the
Closing has been delivered to the Company.

    

    (e)    Delivery of Transaction
Documents. The Transaction Documents have been duly executed and
delivered by the Purchasers to the Company (as of the Closing).

    

    Section
4.2       Conditions Precedent to the
Obligation of the Purchasers to Purchase the Securities. The
obligation hereunder of each Purchaser to acquire and pay for the Securities is
subject to the satisfaction or waiver, at or before the Closing, of each of the
conditions set forth below. These conditions are for each Purchaser’s sole
benefit and may be waived by such Purchaser at any time in its sole
discretion.

    

    (a)    Accuracy of the
Company’s and Nectar’s Representations and
Warranties. Each of the representations and warranties of the Company and
Nectar in this Agreement shall be true and correct in all respects as of the
date when made and as of the Closing Date, except for representations and
warranties that are expressly made as of a particular date, which shall be true
and correct in all respects as of such date.

    

    (b)    Performance by the
Company and
Nectar. The Company and Nectar shall have performed, satisfied and
complied in all respects with all covenants, agreements and conditions required
by this Agreement to be performed, satisfied or complied with by the Company and
Nectar at or prior to the Closing.

    
      
         

      

      
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    (c)    No Suspension, Etc.
Trading in the Company’s Common Stock shall not have been suspended by the
Commission or the OTC Bulletin Board (except for any suspension of trading of
limited duration agreed to by the Company, which suspension shall be terminated
prior to the Closing), and, at any time prior to the Closing Date, trading in
securities generally as reported by Bloomberg Financial Markets (“Bloomberg”)
shall not have been suspended or limited, or minimum prices shall not have been
established on securities whose trades are reported by Bloomberg, or on the New
York Stock Exchange, nor shall a banking moratorium have been declared either by
the United States or New York State authorities, nor shall there have occurred
any material outbreak or escalation of hostilities or other national or
international calamity or crisis of such magnitude in its effect on, or any
material adverse change in any financial market which, in each case, in the
judgment of such Purchaser, makes it impracticable or inadvisable to purchase
the Securities to be issued as of the Closing.

    

    (d)    No Injunction. No
statute, rule, regulation, executive order, decree, ruling or injunction shall
have been enacted, entered, promulgated or endorsed by any court or governmental
authority of competent jurisdiction which prohibits the consummation of any of
the transactions contemplated by this Agreement.

    

    (e)    No Proceedings or
Litigation. No action, suit or proceeding before any arbitrator or any
governmental authority shall have been commenced, and no investigation by any
governmental authority shall have been threatened, against the Company or any
Subsidiary, or any of the officers, directors or affiliates of the Company or
any Subsidiary seeking to restrain, prevent or change the transactions
contemplated by this Agreement, or seeking damages in connection with such
transactions.

    

    (f)     Opinion of Counsel,
Etc. At the Closing, the Purchasers shall have received an opinion of
counsel to the Company, dated the date of the Closing, in substantially the form
of Exhibit
E
hereto, and such other certificates and documents as the Purchasers or its
counsel shall reasonably require incident to the Closing.

    

    (g)    Intentionally
omitted.

    

    (h)    Notes and Warrants.
The Company and Nectar, as applicable, shall have executed and delivered to the
Purchasers the certificates (in such denominations as such Purchaser shall
request) for the Notes and Warrants being acquired by such Purchaser at the
Closing (in such denominations as such Purchaser shall request).

    

    (i)     Resolutions. The
board of directors of the Company and Nectar shall have adopted resolutions
consistent with Section
2.1(b) hereof in a form reasonably acceptable to such Purchaser (the
“Resolutions”).

    

    (j)     Reservation of
Shares. So long as any of the Notes or Warrants remain outstanding, the
Company shall take all action necessary to at all times have authorized, and
reserved for the purpose of issuance, no less than, as of the date hereof, such
number of shares of Common Stock equal to one hundred twenty percent (120%) of
the number of shares of Common Stock as shall from time to time be sufficient to
effect the exercise of the Warrants then outstanding.

    

    (k)    Transfer Agent
Instructions. As of the Closing Date, the Irrevocable Transfer Agent
Instructions, in the form of Exhibit
D attached
hereto, shall have been delivered to and acknowledged in writing by the
Company’s transfer agent.

    

    (l)     [Intentionally
omitted].

    
      
         

      

      
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    (m)   Good Standing
Certificates.  The Company and Nectar shall have delivered to
the Purchasers good standing certificates showing it and any subsidiary are
validly existing and in good standing under the laws of the state of their
incorporation and as a foreign corporation in each jurisdiction in which the
nature of the business conducted or property owned by such entity makes such
qualification necessary, except where the failure to be so qualified or in good
standing, as the case may be, would not result in a direct and/or indirect
Material Adverse Effect.

    

    (n)    Secretary’s Certificate. The
Company and Nectar shall have delivered to such Purchaser a secretary’s
certificate, dated as of the Closing Date, as to (i) the Resolutions, (ii) the
Certificate, (iii) the Bylaws, and (iv) the authority and incumbency of the
officers of the Company executing the Transaction Documents, the Securities and
any other documents required to be executed or delivered in connection
therewith.

    

    (o)    Officer’s Certificate. The
Company and Nectar shall have delivered to the Purchasers a certificate of an
executive officer of the Company, dated as of the Closing Date, confirming the
accuracy of the Company’s representations, warranties and covenants as of the
Closing Date and confirming the compliance by the Company with the conditions
precedent set forth in this Section
4.2 as of the Closing Date.

    

    (p)    Material Adverse
Effect. No Material Adverse Effect shall have occurred at or before the
Closing Date.

    

    ARTICLE
V

    Stock
Certificate Legend

    

    Section
5.1       Legend. Each
certificate representing the Notes and the Warrants, and, if appropriate,
securities issued upon the exercise thereof, shall be stamped or otherwise
imprinted with a legend substantially in the following form (in addition to any
legend required by applicable state securities or “blue sky” laws):

    

    THE
SECURITIES REPRESENTED BY THIS CERTIFICATE (THE “SECURITIES”) HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR
APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE SOLD, TRANSFERRED, OR OTHERWISE
DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR RECEIPT BY THE COMPANY OF A
WRITTEN OPINION OF COUNSEL IN FORM, SUBSTANCE AND SCOPE REASONABLY SATISFACTORY
TO THE COMPANY THAT SUCH SECURITIES MAY BE SOLD, TRANSFERRED,  OR
OTHERWISE DISPOSED OF, UNDER AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES
ACT AND SUCH STATE SECURITIES LAWS.

    
      
         

      

      
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    The
Company agrees to reissue certificates representing any of the Warrant Shares,
without the legend set forth above if at such time, prior to making any transfer
of any such securities, such holder thereof shall give written notice to the
Company describing the manner and terms of such transfer and removal as the
Company may reasonably request. Such proposed transfer and removal will not be
effected until: (a) either (i) the Company has received an opinion of counsel
reasonably satisfactory to the Company, to the effect that the registration of
the Warrant Shares under the Securities Act is not required in connection with
such proposed transfer, (ii) a registration statement under the Securities Act
covering such proposed disposition has been filed by the Company with the
Commission and has become effective under the Securities Act, (iii) the Company
has received other evidence reasonably satisfactory to the Company that such
registration and qualification under the Securities Act and state securities
laws are not required, or (iv) the holder provides the Company with reasonable
assurances that such security can be sold pursuant to Rule 144 under the
Securities Act; and (b) either (i) the Company has received an opinion of
counsel reasonably satisfactory to the Company, to the effect that registration
or qualification under the securities or “blue sky” laws of any state is not
required in connection with such proposed disposition, or (ii) compliance with
applicable state securities or “blue sky” laws has been effected or a valid
exemption exists with respect thereto. The Company will respond to any such
notice from a holder within five (5) business days. In the case of any proposed
transfer under this Section
5.1, the Company will use reasonable efforts to comply with any such
applicable state securities or “blue sky” laws, but shall in no event be
required, (x) to qualify to do business in any state where it is not then
qualified, (y) to take any action that would subject it to tax or to the general
service of process in any state where it is not then subject, or (z) to comply
with state securities or “blue sky” laws of any state for which registration by
coordination is unavailable to the Company. The restrictions on transfer
contained in this Section
5.1 shall be in addition to, and not by way of limitation of, any other
restrictions on transfer contained in any other section of this Agreement.
Whenever a certificate representing the Warrant Shares is required to be issued
to a Purchaser without a legend, in lieu of delivering physical certificates
representing the Warrant Shares (provided that a registration statement under
the Securities Act providing for the resale of the Warrant Shares is then in
effect), the Company shall cause its transfer agent to electronically transmit
the Warrant Shares to a Purchaser by crediting the account of such Purchaser or
such Purchaser’s Prime Broker with the Depository Trust Company (“DTC”)
through its Deposit Withdrawal Agent Commission (“DWAC”)
system (to the extent not inconsistent with any provisions of this
Agreement).

    

    ARTICLE VI

    Indemnification

    

    Section
6.1      General Indemnity.
The Company agrees to indemnify and hold harmless the Purchasers (and their
respective directors, officers, managers, partners, members, shareholders,
affiliates, agents, attorneys, successors and assigns) from and against any and
all losses, liabilities, deficiencies, costs, damages and expenses (including,
without limitation, reasonable attorneys’ fees, charges and disbursements)
incurred by the Purchasers as a result of any inaccuracy in or breach of the
representations, warranties or covenants made by the Company
herein.

    

    Section
6.2       Indemnification
Procedure. Any party entitled to indemnification under this Article
VI (an “indemnified
party”) will give written notice to the indemnifying party of any matters
giving rise to a claim for indemnification; provided that the failure of
any party entitled to indemnification hereunder to give notice as provided
herein shall not relieve the indemnifying party of its obligations under this
Article
VI except to the extent that the indemnifying party is actually
prejudiced by such failure to give notice. In case any action, proceeding or
claim is brought against an indemnified party in respect of which
indemnification is sought hereunder, the indemnifying party shall be entitled to
participate in and, unless in the reasonable judgment of the indemnified party a
conflict of interest between it and the indemnifying party may exist with
respect of such action, proceeding or claim, to assume the defense thereof with
counsel reasonably satisfactory to the indemnified party. In the event that the
indemnifying party advises an indemnified party that it will contest such a
claim for indemnification hereunder, or fails, within thirty (30) days of
receipt of any indemnification notice to notify, in writing, such person of its
election to defend, settle or compromise, at its sole cost and expense, any
action, proceeding or claim (or discontinues its defense at any time after it
commences such defense), then the indemnified party may, at its option, defend,
settle or otherwise compromise or pay such action or claim. In any event, unless
and until the indemnifying party elects in writing to assume and does so assume
the defense of any such claim, proceeding or action, the indemnified party’s
costs and expenses arising out of the defense, settlement or compromise of any
such action, claim or proceeding shall be losses subject to indemnification
hereunder. The indemnified party shall cooperate fully with the indemnifying
party in connection with any negotiation or defense of any such action or claim
by the indemnifying party and shall furnish to the indemnifying party all
information reasonably available to the indemnified party which relates to such
action or claim. The indemnifying party shall keep the indemnified party fully
apprised at all times as to the status of the defense or any settlement
negotiations with respect thereto. If the indemnifying party elects to defend
any such action or claim, then the indemnified party shall be entitled to
participate in such defense with counsel of its choice at its sole cost and
expense. The indemnifying party shall not be liable for any settlement of any
action, claim or proceeding effected without its prior written consent.
Notwithstanding anything in this Article
VI to the contrary, the indemnifying party shall not, without the
indemnified party’s prior written consent, settle or compromise any claim or
consent to entry of any judgment in respect thereof which imposes any future
obligation on the indemnified party or which does not include, as an
unconditional term thereof, the giving by the claimant or the plaintiff to the
indemnified party of a release from all liability in respect of such claim. The
indemnification required by this Article
VI shall be made by periodic payments of the amount thereof during the
course of investigation or defense, as and when bills are received or expense,
loss, damage or liability is incurred, so long as the indemnified party
irrevocably agrees to refund such moneys if it is ultimately determined by a
court of competent jurisdiction that such party was not entitled to
indemnification. The indemnity agreements contained herein shall be in addition
to (a) any cause of action or similar rights of the indemnified party against
the indemnifying party or others, and (b) any liabilities the indemnifying party
may be subject to pursuant to the law.

    
      
         

      

      
        22

        
          

        

      

      
         

      

    

    

    ARTICLE VII

    Registration
Rights

    

    Section
7.1       Piggyback Registration
Rights.  If at any time the Company shall determine to prepare
and file with the Commission a registration statement (a “Registration
Statement”) relating to an offering for its own account or the account of
others under the Securities Act of any of its equity securities, other than on
Form S-4 or Form S-8 (each as promulgated under the Securities Act) or their
then equivalents relating to equity securities to be issued solely in connection
with any acquisition of any entity or business or equity securities issuable in
connection with stock option or other employee benefit plans, the Company shall
send to each holder of the Notes and Warrants written notice of such
determination and, if within thirty (30) days after receipt of such notice, or
within such shorter period of time as may be specified by the Company in such
written notice as may be necessary for the Company to comply with its
obligations with respect to the timing of the filing of such Registration
Statement, any such holder shall so request in writing (which request shall
specify the Warrant Shares intended to be disposed of by the Purchasers, if
any), the Company will cause the registration under the Securities Act of all
the Warrant Shares which the Company has been so requested to register by the
holder, to the extent required to permit the disposition of the Warrant Shares
so to be registered; provided that if at any time
after giving written notice of its intention to register any securities and
prior to the effective date of the Registration Statement filed in connection
with such registration, the Company shall determine for any reason not to
register or to delay registration of such securities, the Company may, at its
election, give written notice of such determination to such holder and,
thereupon, (i) in the case of a determination not to register, shall be relieved
of its obligation to register any Warrant Shares in connection with such
registration (but not from its obligation to pay fees and expenses in accordance
with Section
8.1 hereof), and (ii) in the case of a determination to delay
registering, shall be permitted to delay registering any Warrant Shares being
registered pursuant to this Section
7.1 for the same period as the delay in registering such other
securities. The Company shall include in such Registration Statement all or any
part of such Warrant Shares such holder requests to be registered; provided, however, that the
Company shall not be required to register any Warrant Shares pursuant to this
Section
7.1 that are eligible for resale without limitations concerning the
availability of current public information pursuant to Rule 144 of the
Securities Act. In the case of an underwritten public offering, if the managing
underwriter(s) or underwriter(s) should reasonably object to the inclusion of
the Warrant Shares in such Registration Statement, then if the Company after
consultation with the managing underwriter should reasonably determine that the
inclusion of the Warrant Shares would materially adversely affect the offering
contemplated in such Registration Statement, and based on such determination
recommends inclusion in such Registration Statement of fewer or none of the
Warrant Shares of the holders, then (x) the number of Warrant Shares of the
holders included in such Registration Statement shall be reduced pro-rata among
such holders (based
upon the number of Warrant Shares requested to be included in the registration),
if the Company after consultation with the underwriter(s) recommends the
inclusion of fewer Warrant Shares, or (y) none of the Warrant Shares of the
Holders shall be included in such Registration Statement, if the Company after
consultation with the underwriter(s) recommends the inclusion of none of such
Warrant Shares; provided,
however, that if securities are being offered for the account of other
persons or entities as well as the Company, such reduction shall not represent a
greater fraction of the number of Warrant Shares intended to be offered by the
holders than the fraction of similar reductions imposed on such other persons or
entities (other than the Company).

    
      
         

      

      
        23

        
          

        

      

      
         

      

    

    

    Section
7.2       Assignment of Registration
Rights. The rights of each Purchaser hereunder, including the right to
have the Company register for resale the Warrant Shares in accordance with the
terms of this Agreement, shall be automatically assignable by each Purchaser to
any Person who acquires all or a portion of the Warrant Shares
if: (i) the Purchaser agrees in writing with the transferee or assignee to
assign such rights, and a copy of such agreement is furnished to the Company
within a reasonable time after such assignment, (ii) the Company is, within a
reasonable time after such transfer or assignment, furnished with written notice
of (A) the name and address of such transferee or assignee, and (B) the
securities with respect to which such registration rights are being transferred
or assigned, (iii) following such transfer or assignment the further disposition
of such securities by the transferee or assignees is restricted under the
Securities Act and applicable state securities laws unless such securities are
registered in a Registration Statement pursuant to Section
7.1 (in
which case the Company shall be obligated to amend such Registration Statement
to reflect such transfer or assignment) or are otherwise exempt from
registration, (iv) at or before the time the Company receives the written notice
contemplated by clause (ii) of this Section
7.2, the transferee or assignee agrees in writing with the Company to be
bound by all of the provisions of this Agreement, and (v) such transfer shall
have been made in accordance with the applicable requirements of this Agreement.
In addition, each Purchaser shall have the right to assign its rights hereunder
to any other person with the prior written consent of the Company, which consent
shall not unreasonably be withheld.  The rights to assignment shall
apply to the Purchasers (and to subsequent) successors and assigns.

    

    Section
7.3       Underwriter Status.
Subject to compliance with applicable law, the Company may not deem any
Purchaser to be an “underwriter” within the meaning of the Securities Act within
any Registration Statement nor file any such Registration Statement without the
prior written consent of such Purchaser.

    

    ARTICLE VIII

    Miscellaneous

    

    Section 8.1       Specific Enforcement.
The Company and the Purchasers acknowledge and agree that irreparable damage
would occur in the event that any of the provisions of this Agreement or the
other Transaction Documents were not performed in accordance with their specific
terms or were otherwise breached. It is accordingly agreed that the parties
shall be entitled to an injunction or injunctions to prevent or cure breaches of
the provisions of this Agreement and to enforce specifically the terms and
provisions hereof or thereof, this being in addition to any other remedy to
which any of them may be entitled by law or equity.

    
      
         

      

      
        24

        
          

        

      

      
         

      

    

     

    Section 8.2      Entire Agreement;
Amendment. This Agreement and the Transaction Documents contains the
entire understanding and agreement of the parties with respect to the matters
covered hereby and, except as specifically set forth herein or in the
Transaction Documents, neither the Company nor any of the Purchasers makes any
representations, warranty, covenant or undertaking with respect to such matters
and they supersede all prior understandings and agreements with respect to said
subject matter, all of which are merged herein. No provision of this Agreement
may be waived or amended other than by a written instrument signed by the
Company and the holders of at least a majority of the Notes then outstanding,
and no provision hereof may be waived other than by an a written instrument
signed by the party against whom enforcement of any such amendment or waiver is
sought. No such amendment shall be effective to the extent that it applies to
less than all of the holders of the Notes then outstanding. No consideration
shall be offered or paid to any person to amend or consent to a waiver or
modification of any provision of any of the Transaction Documents unless the
same consideration is also offered to all of the parties to the Transaction
Documents or holders of the Notes, as the case may be.

    

    Section
8.3      Rescission and Withdrawal
Right.  Notwithstanding anything to the contrary contained in
(and without limiting any similar provisions of) the Transaction Documents,
whenever any Purchaser exercises a material right, election, demand or option
under a Transaction Document and the Company does not timely perform its related
obligations within the periods therein provided, then such Purchaser may rescind
or withdraw, in its sole discretion from time to time upon written notice to the
Company, any relevant notice, demand or election in whole or in part without
prejudice to its future actions and rights.

    
      
         

      

      
        25

        
          

        

      

      
         

      

    

     

    Section 8.4       Notices. Any notice,
demand, request, waiver or other communication required or permitted to be given
hereunder shall be in writing and shall be effective (a) upon hand delivery or
facsimile at the address or number designated below (if delivered on a business
day during normal business hours where such notice is to be received), or the
first business day following such delivery (if delivered other than on a
business day during normal business hours where such notice is to be received)
or (b) on the second business day following the date of mailing by express
courier service, fully prepaid, addressed to such address, or upon actual
receipt of such mailing, whichever shall first occur. The addresses for such
communications shall be:

     

    
      	
              If
      to the Company:

            	
              Juma
      Technology Corp.

              154
      Toledo Street

              Farmingdale,
      New York 11735

              Attention:
      Chief Executive Officer

              Tel.
      No.: (631) 300-1000

              Fax
      No.: (631) 270-1105

            
	 
      	 
      
	
              with
      copies to:

            	
              Gersten
      Savage LLP

              600
      Lexington Avenue, 9th
      Floor

              New
      York, New York 10022

              Attention:
      Jay Kaplowitz, Esq.

              Tel.
      No.: (212) 752-9700

              Fax
      No.: (212) 980-5192

            
	 
      	 
      
	
              If
      to any Purchaser:

            	
              At
      the address of such Purchaser set forth on Exhibit
      A to this Agreement, with copies to Purchaser’s counsel (which
      copies shall not constitute notice to such purchaser) as set forth on
      Exhibit
      A or as specified in writing by such Purchaser.

            
	 
      	 
      
	
              with
      copies to:

            	
              Sadis
      & Goldberg LLP

              551
      Fifth Avenue, 21st
      Floor

              New
      York, New York 10176

              Attention:
      Paul Fasciano, Esq.

              Tel.
      No.: (212) 573-8025

              Fax
      No.: (212) 573-8026

            

    

     

    Any party
hereto may from time to time change its address for notices by giving at least
ten (10) days written notice of such changed address to the other parties
hereto.

    

    Section 8.5       Waivers. No waiver by
either party of any default with respect to any provision, condition or
requirement of this Agreement shall be deemed to be a continuing waiver in the
future or a waiver of any other provisions, condition or requirement hereof, nor
shall any delay or omission of any party to exercise any right hereunder in any
manner impair the exercise of any such right accruing to it
thereafter.

    

    Section 8.6       Headings. The
article, section and subsection headings in this Agreement are for convenience
only and shall not constitute a part of this Agreement for any other purpose and
shall not be deemed to limit or affect any of the provisions
hereof.

    
      
         

      

      
        26

        
          

        

      

      
         

      

    

    

    Section 8.7       Successors and
Assigns. This Agreement shall be binding upon and inure to the benefit of
the parties and their successors and assigns. 

    

    Section 8.8       No Third Party
Beneficiaries. This Agreement is intended for the benefit of the parties
hereto and their respective permitted successors and assigns and is not for the
benefit of, nor may any provision hereof be enforced by, any other person
(except as otherwise provided in Article
VI).

    

    Section 8.9       Governing Law; Consent to
Jurisdiction. The parties acknowledge and agree that any claim,
controversy, dispute or action relating in any way to this agreement or the
subject matter of this agreement shall be governed solely by the laws of the
State of New York, without regard to any conflict of laws
doctrines.  The parties irrevocably consent to being served with legal
process issued from the state and federal courts located in New York and
irrevocably consent to the exclusive personal jurisdiction of the federal and
state courts situated in the State of New York.  The parties
irrevocably waive any objections to the personal jurisdiction of these
courts.  Said courts shall have sole and exclusive jurisdiction over
any and all claims, controversies, disputes and actions which in any way relate
to this agreement or the subject matter of this agreement.  The
parties also irrevocably waive any objections that these courts constitute an
oppressive, unfair, or inconvenient forum and agree not to seek to change venue
on these grounds or any other grounds. The parties hereby agree that the
prevailing party in any suit, action or proceeding arising out of or relating to
this Agreement, shall be entitled to reimbursement for reasonable legal fees
from the non-prevailing party. The parties hereby waive all rights to a trial by
jury. Nothing in this Section
8.9 shall affect or limit
any right to serve process in any other manner permitted by law.

    

    Section 8.10     Survival. The
representations and warranties of the Company and the Purchasers shall survive
the execution and delivery hereof and the Closing hereunder.

    

    Section 8.11    Counterparts. This
Agreement may be executed in any number of counterparts, each of which when so
executed shall be deemed to be an original and all of which taken together shall
constitute one and the same Agreement, and shall become effective when
counterparts have been signed by each party and delivered to the other parties
hereto, it being understood that all parties need not sign the same counterpart.
In the event that any signature is delivered by facsimile or electronic mail
transmission, such signature shall create a valid binding obligation of the
party executing (or on whose behalf such signature is executed) the same with
the same force and effect as if such facsimile signature were the original
thereof.

    

    Section 8.12    Publicity. The
Company agrees that it will not disclose, and will not include in any public
announcement, the name of the Purchasers without the consent of the Purchasers
unless and until such disclosure is required by law or applicable regulation,
and then only to the extent of such requirement.

    

    Section 8.13    Severability. The
provisions of this Agreement and the Transaction Documents are severable and, in
the event that any court of competent jurisdiction shall determine that any one
or more of the provisions or part of the provisions contained in this Agreement
or the Transaction Documents shall, for any reason, be held to be invalid,
illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provision or part of a provision of
this Agreement or the Transaction Documents and such provision shall be reformed
and construed as if such invalid or illegal or unenforceable provision, or part
of such provision, had never been contained herein, so that such provisions
would be valid, legal and enforceable to the maximum extent
possible.

    
      
         

      

      
        27

        
          

        

      

      
         

      

    

    Section 8.14    Further Assurances.
From and after the date of this Agreement, upon the request of any Purchaser or
the Company, each of the Company and the Purchasers shall execute and deliver
such instrument, documents and other writings as may be reasonably necessary or
desirable to confirm and carry out and to effectuate fully the intent and
purposes of this Agreement, the Notes, the Warrants and the Warrant Shares and
any other Transaction Documents.

    

    [remainder of page intentionally left
blank]

    
      
         

      

      
        28

        
          

        

      

      
         

      

    

    

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

    

    
      
        
          
            
              	 
      	
                      JUMA
      TECHNOLOGY CORP.

                    
	 
      	 
      
	 
      	
                      By:

                    	 
      
	 
      	 
      	
                      Name:

                    
	 
      	 
      	
                      Title:

                    
	 
      	 
      
	 
      	
                      NECTAR
      SERVICES CORP.

                    
	 
      	 
      
	 
      	
                      By:

                    	 
      
	 
      	 
      	
                      Name:

                    
	 
      	 
      	
                      Title:

                    
	 
      	 
      
	 
      	
                      VISION OPPORTUNITY MASTER FUND,
      LTD.

                    
	 
      	 
      
	 
      	
                      By:

                    	 
      
	 
      	 
      	
                      Name:

                    
	 
      	 
      	
                      Title:

                    

            

          

        

      

    

    
      
         

      

      
        29

        
          

        

      

      
         

      

    

    

    EXHIBIT
A

    to
the

    NOTE
AND WARRANT STOCK PURCHASE AGREEMENT FOR

    JUMA
TECHNOLOGY CORP.

    

    
      
        	
                Names and Addresses of the Purchasers

              	 
      	
                Purchase Price

              	 
      	
                Notes & Warrants Purchased

              
	 	 	 	 	 
	
                Vision
      Opportunity Master Fund, Ltd.

                c/o
      Vision Capital Advisors, LLC

                20
      West 55th
      Street

                New
      York, NY 10019

                Attn:
      Robert Thomson

              	 
      	
                $500,000.00

              	 
      	
                $500,000.00
      principal amount of Note

                 

                Series
      A Warrants: 3,333,333

              

      

    

    

    Exhibit A to Note and
Warrant Purchase Agreement

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
B

    to
the

    NOTE
AND WARRANT STOCK PURCHASE AGREEMENT FOR

    JUMA
TECHNOLOGY CORP.

    

    FORM
OF NOTE

    

    Exhibit B to Note and
Warrant Purchase Agreement

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
C

    to
the

    NOTE
AND WARRANT STOCK PURCHASE AGREEMENT FOR

    JUMA
TECHNOLOGY CORP.

    

    FORM
OF SERIES A WARRANT

    

    Exhibit C to Note and
Warrant Purchase Agreement

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
D

    to
the

    NOTE
AND WARRANT PURCHASE AGREEMENT FOR

    JUMA
TECHNOLOGY CORP.

    

    FORM OF IRREVOCABLE TRANSFER
AGENT INSTRUCTIONS

    

    [NAME AND ADDRESS OF TRANSFER
AGENT]

    Attn:
____________________________

    

    Re:  Juma
Technology Corp.

    

    Ladies
and Gentlemen:

    

    Reference
is made to that certain Note and Warrant Purchase Agreement (the “Purchase
Agreement”), dated as of August 6, 2010, by and among Juma Technology
Corp., a Delaware corporation (the “Company”),
and the purchasers named therein (collectively, the “Purchasers”)
pursuant to which the Company is issuing to the Purchasers 10% bridge notes (the
“Notes”)
and warrants (the “Warrants”)
to purchase shares of the Company’s common stock, par value $0.0001 per share
(the “Common
Stock”). This letter shall serve as our irrevocable authorization and
direction to you provided that you are the transfer agent of the Company at such
time)  to issue shares of Common Stock upon exercise of the Warrants
(the “Warrant
Shares”) to or upon the order of a Purchaser from time to time upon (i)
surrender to you of a properly completed and duly executed Exercise Notice, as
the case may be, in the form attached hereto as Exhibit I and Exhibit II,
respectively, (ii) in the case of the Warrants being exercised, a copy of the
Warrants (with the original Warrants delivered to the Company) being exercised
(or, in each case, an indemnification undertaking with respect to such share
certificates or the warrants in the case of their loss, theft or destruction),
and (iii) delivery of a treasury order or other appropriate order duly executed
by a duly authorized officer of the Company. So long as you have previously
received (x) written confirmation from counsel to the Company that a
registration statement covering resales of the Warrant Shares, as applicable,
has been declared effective by the Securities and Exchange Commission (the
“SEC”)
under the Securities Act of 1933, as amended (the “1933
Act”), and no subsequent notice by the Company or its counsel of the
suspension or termination of its effectiveness and (y) a copy of such
registration statement, and if the Purchaser represents in writing that the
Warrant Shares, as the case may be, were sold pursuant to the Registration
Statement, then certificates representing the Warrant Shares, as the case may
be, shall not bear any legend restricting transfer of the Warrant Shares, as the
case may be, thereby and should not be subject to any stop-transfer restriction.
Provided, however, that if you have not previously received those items and
representations listed above, then the certificates for the Warrant Shares shall
bear the following legend:

    

    “THE
SECURITIES REPRESENTED BY THIS CERTIFICATE (THE “SECURITIES”) HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR
APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE SOLD, TRANSFERRED, OR OTHERWISE
DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR RECEIPT BY THE COMPANY OF A
WRITTEN OPINION OF COUNSEL IN FORM, SUBSTANCE AND SCOPE REASONABLY SATISFACTORY
TO THE COMPANY THAT SUCH SECURITIES MAY BE SOLD, TRANSFERRED,  OR
OTHERWISE DISPOSED OF, UNDER AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES
ACT AND SUCH STATE SECURITIES LAWS.”

    

    Exhibit D to Note and
Warrant Purchase Agreement

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

    and,
provided further, that the Company may from time to time notify you to place
stop-transfer restrictions on the certificates the Warrant Shares in the event a
registration statement covering the Warrant Shares is subject to amendment for
events then current.

    

    A form of
written confirmation from counsel to the Company that a registration statement
covering resales of the Warrant Shares has been declared effective by the SEC
under the 1933 Act is attached hereto as Exhibit III.

    

    Please be
advised that the Purchasers are relying upon this letter as an inducement to
enter into the Purchase Agreement and, accordingly, each Purchaser is a third
party beneficiary to these instructions.

    

    Please
execute this letter in the space indicated to acknowledge your agreement to act
in accordance with these instructions. Should you have any questions concerning
this matter, please contact me at ___________.

    

    
      
        
          	 
      	
                  Very
      truly yours,

                
	 
      	 
      
	 
      	
                  JUMA
      TECHNOLOGY CORP.

                
	 
      	 
      
	 
      	
                  By:

                	 
      
	 
      	 
      	
                  Name:

                
	 
      	 
      	
                  Title:

                

        

      

    

    

    
      
        
          	
                  ACKNOWLEDGED
      AND AGREED:

                	 
      
	 
      	 
      
	
                  [TRANSFER
      AGENT]

                	 
      
	 
      	 
      
	
                  By:

                	 
      	 
      
	 
      	
                  Name:

                	 
      
	 
      	
                  Title:

                	 
      
	 
      	
                  Date:

                	 
      

        

      

    

    

    Exhibit D to Note and
Warrant Purchase Agreement

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

    EXHIBIT
I

    CONVERSION
NOTICE

    JUMA
TECHNOLOGY CORP.

    [Intentionally
omitted].

    

    Exhibit D to Note and
Warrant Purchase Agreement

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

      EXHIBIT
II

      

      FORM
OF EXERCISE NOTICE

      JUMA
TECHNOLOGY CORP.

      

      The
undersigned_______________, pursuant to the provisions of the within Warrant,
hereby elects to purchase ______ shares of Common Stock of Juma Technology Corp.
covered by the within Warrant.

      

      
        
          
            
              
                
                  
                    
                      	
                              Dated:
      _____________

                            	 	
                              Signature:

                            	 
      	 
	 
      	 	 
      	 
      	 
	 
      	 	
                              Address:

                            	 
      	 
	 
      	 	 
      	 
      	 
	 
      	 	 
      	 
      	 

                    

                  

                

              

            

          

        

      

      

      Number of
shares of Common Stock beneficially owned or deemed beneficially owned by the
Holder on the date of Exercise: ____________________

      

      ASSIGNMENT

      

      FOR VALUE
RECEIVED, ______________________ hereby sells, assigns and transfers unto
_____________________ the within Warrant and all rights evidenced thereby and
does irrevocably constitute and appoint __________________________, attorney, to
transfer the said Warrant on the books of the within named
corporation.

      

      
        
          
            
              
                
                  
                    	
                            Dated:
      _____________

                          	 	
                            Signature:

                          	 
      	 
	 
      	 	 
      	 
      	 
	 
      	 	
                            Address:

                          	 
      	 
	 
      	 	 
      	 
      	 
	 
      	 	 
      	 
      	 

                  

                

              

            

          

        

      

      

      PARTIAL
ASSIGNMENT

      

      FOR VALUE
RECEIVED, ______________________ hereby sells, assigns and transfers unto
_____________________ the right to purchase ___________________ shares of
Warrant Stock evidenced by the within Warrant together with all rights therein,
and does irrevocably constitute and appoint __________________________,
attorney, to transfer that part of the said Warrant on the books of the within
named corporation.

      

      
        
          
            
              
                
                  
                    	
                            Dated:
      _____________

                          	 	
                            Signature:

                          	 
      	 
	 
      	 	 
      	 
      	 
	 
      	 	
                            Address:

                          	 
      	 
	 
      	 	 
      	 
      	 
	 
      	 	 
      	 
      	 

                  

                

              

            

          

        

      

      

      Exhibit D to Note and
Warrant Purchase Agreement

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    FOR
USE BY THE ISSUER ONLY:

    

    This
Warrant No. W-__________ canceled (or transferred or exchanged) this _______ day
of ______________, _______, shares of Common Stock issued therefor in the name
of __________________________, Warrant No. W-_________ issued for ______________
shares of Common Stock in the name of ______________________.

    

    Exhibit D to Note and
Warrant Purchase Agreement

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
III

    

    FORM
OF NOTICE OF EFFECTIVENESS

    OF
REGISTRATION STATEMENT

    

    [NAME AND ADDRESS OF TRANSFER
AGENT]

    Attn:
____________________________

    

    Re:  Juma
Technology Corp.

    

    Ladies
and Gentlemen:

    

    We are
special counsel to Juma Technology Corp., a Delaware corporation (the “Company”),
and have represented the Company in connection with that certain Note and
Warrant Purchase Agreement (the “Purchase
Agreement”), dated as of August 6, 2010, by and among the Company, Nectar
Services Corp. and the purchasers named therein (collectively, the “Purchasers”)
pursuant to which the Company issued to the Purchasers 10% bridge notes (the
“Notes”)
and warrants (the “Warrants”)
to purchase shares of the Company’s common stock, par value $0.0001 per share
(the “Common
Stock”). Pursuant to the Purchase Agreement, the Company agreed, among
other things, in certain circumstances, to register the shares of Common Stock
issuable upon exercise of the Warrants (the “Registrable
Securities”), under the Securities Act of 1933, as amended (the “1933
Act”). In connection with the Company’s obligations under the Purchase
Agreement, on ________________, 200_, the Company filed a Registration Statement
on Form S-1 (File No. 333-________) (the “Registration
Statement”) with the Securities and Exchange Commission (the “SEC”)
relating to the resale of the Registrable Securities which names each of the
present Purchasers as a selling stockholder thereunder.

    

    In
connection with the foregoing, we advise you that a member of the SEC’s staff
has advised us by telephone that the SEC has entered an order declaring the
Registration Statement effective under the 1933 Act at [ENTER TIME OF EFFECTIVENESS]
on [ENTER DATE OF
EFFECTIVENESS] and we have no knowledge, after telephonic inquiry of a
member of the SEC’s staff, that any stop order suspending its effectiveness has
been issued or that any proceedings for that purpose are pending before, or
threatened by, the SEC and accordingly, the Registrable Securities are available
for resale under the 1933 Act pursuant to the Registration
Statement.

    

    
      
        
          
            	 
      	
                    Very
      truly yours,

                  
	 
      	 
      
	 
      	
                    [COMPANY
      COUNSEL]

                  
	 
      	 
      
	 
      	
                    By:

                  	 
      

          

        

      

    

    

    cc: [LIST
NAMES OF PURCHASERS]

    

    Exhibit D to Note and
Warrant Purchase Agreement

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
E

    to
the

    NOTE
AND WARRANT PURCHASE AGREEMENT FOR

    JUMA
TECHNOLOGY CORP.

    

    FORM OF OPINION OF
COUNSEL

    

    1. The
Company is a corporation duly incorporated, validly existing and, upon the
payment of its franchise taxes,  in good standing under the laws of
the State of Delaware and has the requisite corporate power to own, lease and
operate its properties and assets, and to carry on its business as presently
conducted. The Company is duly qualified as a foreign corporation to do business
and is in good standing in every jurisdiction in which the nature of the
business conducted or property owned by it makes such qualification necessary,
which the failure to so qualify could have a Material Adverse Effect on the
Company.

    

    2.  Each
of the Subsidiaries of the Company (the “Subsidiaries”)
set forth on Schedule
2.1(g) of the Note Purchase Agreement is a corporation or limited
liability company, as applicable, duly incorporated or organized and in good
standing under the laws of its state of incorporation or
organization.

    

    3.  The
Issuers have the requisite corporate power and authority to enter into and
perform its obligations under the Transaction Documents and, as applicable, to
issue the Notes, the Warrants and the Common Stock issuable upon exercise of the
Warrants. The execution, delivery and performance of each of the Transaction
Documents by the Issuers, as applicable, and the consummation by it of the
transactions contemplated thereby have been duly and validly authorized by all
necessary corporate action and no further consent or authorization of any Issuer
or its board of directors or stockholders is required. Each of the Transaction
Documents have been duly executed and delivered, and the Notes and the Warrants
have been duly executed, issued and delivered by the Issuers party thereto and
each of the Transaction Documents constitutes a legal, valid and binding
obligation of the Issuers enforceable against it in accordance with its
respective terms. The Common Stock issuable upon the exercise of the Warrants
are not subject to any preemptive rights under the Certificate of Incorporation
or the Bylaws.

    

    4. The
Notes and the Warrants have been duly authorized and, when delivered against
payment in full as provided in the Note Purchase Agreement, will be validly
issued, fully paid and nonassessable. The shares of Common Stock issuable upon
the exercise of the Warrants, have been duly authorized and reserved for
issuance, and, based on the facts and circumstance as they exist on the date of
this opinion and the qualifications contained herein, when delivered
upon  exercise or payment in full as provided in the Warrants, will be
validly issued, fully paid and nonassessable.

    

    5. The
execution, delivery and performance of and compliance with the terms of the
Transaction Documents and the issuance of Notes, the Warrants and the Common
Stock issuable upon the exercise of the Warrants, do not (i) violate any
provision of the Certificate of Incorporation or By-Laws of such Issuer, as
applicable, (ii) conflict with, or constitute a default (or an event which with
notice or lapse of time or both would become a default) under, or give to others
any rights of termination, amendment, acceleration or cancellation of, any
material agreement, mortgage, deed of trust, indenture, note, bond, license,
lease agreement, instrument or obligation to which such Issuer is a party, and
which agreement, mortgage, deed of trust, indenture, note, bond, license, lease
agreement, instrument or obligation has been disclosed in the Commission
Documents, (iii) to our knowledge, create or impose a lien, charge or
encumbrance on any property of such Issuer under any agreement or any commitment
to which such Issuer is a party or by which such Issuer is bound or by which any
of its respective properties or assets are bound and, in each case, which
agreement or commitment has been disclosed in the Commission Documents, or (iv)
result in a violation of any federal, state, or local statute, rule, regulation
(including federal and state securities laws and regulations) or any order,
judgment, injunction or decree known to us applicable to such Issuer or by which
any property or asset of such Issuer is bound or affected, except, in all of the
foregoing cases (other than (i)) for such conflicts, default, terminations,
amendments, acceleration, cancellations and violations as would not,
individually or in the aggregate, have a Material Adverse Effect.

    

    Exhibit E to Note and
Warrant Purchase Agreement

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

    6. Based
on the representations of Purchaser contained in the Note Purchase Agreement and
subject to compliance with the filing requirements under the applicable “blue
sky” laws and Regulation D promulgated under the Securities Act of 1933, as
amended, no consent, approval or authorization of or designation, declaration or
filing with any governmental authority on the part of the Company is required
under federal, state or local law, rule or regulation in connection with the
valid execution and delivery of the Transaction Documents, or the offer, sale or
issuance of the Notes, the Warrants or the Common Stock issuable upon the
exercise of the Warrants or the consummation of the transactions contemplated by
the Note Purchase Agreement other than as may be required under the Registration
Statement.

    

    7. To our
knowledge, there is no action, suit, claim, or proceeding pending or threatened
against any Issuer which questions the validity of the Transaction Documents or
the transactions contemplated thereby or any action taken or to be taken
pursuant thereto. To our knowledge, there is no action, suit, claim, or
proceeding pending or threatened against such Issuer or any of its properties or
assets and which, if adversely determined, is reasonably likely to result in a
Material Adverse Effect. To our knowledge, there are no outstanding orders,
judgments, injunctions, awards or decrees of any court, arbitrator or
governmental or regulatory body against such Issuer or any officers or directors
of any Issuer in their capacities as such.

     

    8. Based
upon the representations of the Purchaser, the offer, issuance and sale of the
Notes and the Warrants and, based on the facts and circumstances as they exist
on the date of this opinion, the offer, issuance and sale of the Common Stock
issuable upon exercise of the Warrants pursuant to the Note Purchase Agreement,
the Notes, and the Warrants, as applicable, are exempt from the registration
requirements of the Securities Act.

    

    9. No
Issuer is, and as a result of and immediately upon the Closing no Issuer will
be, an “investment company” or a company “controlled” by an “investment
company,” within the meaning of the Investment Company Act of 1940, as
amended.

    

    
      
        
          	 
      	
                  Very
      truly yours,

                
	 
      	 
      
	 
      	
                  [COMPANY
      COUNSEL]

                
	 
      	 
      
	 
      	
                  By:

                	 
      

        

      

    

    

    Exhibit E to Note and
Warrant Purchase Agreement

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