Document:

Prepared by MERRILL CORPORATION

(Multicurrency—Cross Border)

 

ISDA®

 

International Swap Dealers

Association, Inc.

 

MASTER AGREEMENT

 

dated as of December 20, 2000

 

	

  SunTrust

  Bank

  	

   

  	

  and

  	

   

  	

  F.Y.I.,

  Incorporated

  
	

  Party A

  	

   

  	

   

  	

   

  	

  Party B

  

 

have entered and/or anticipate entering into one or more

transactions (each a “Transaction”) that are or will be governed by this Master

Agreement, which includes the schedule (the “Schedule”), and the documents and

other confirming evidence (each a “Confirmation”) exchanged between the parties

confirming those Transactions.

 

Accordingly,

the parties agree as follows:—

 

1.                Interpretation

 

(a)                Definitions.  The terms defined in Section 14 and in the Schedule will have

the meanings therein specified for the purpose of this Master Agreement.

 

(b)                Inconsistency.  In the event of any inconsistency between the provisions of

the Schedule and the other provisions of this Master Agreement, the Schedule

will prevail.  In the event of any

inconsistency between the provisions of any Confirmation and this Master

Agreement (including the Schedule), such Confirmation will prevail for the

purpose of the relevant Transaction.

 

(c)           Single Agreement.  All

Transactions are entered into in reliance on the fact that this Master

Agreement and all Confirmations form a single agreement between the parties

(collectively referred to as this “Agreement”), and the parties would not

otherwise enter into any Transactions.

 

2.                Obligations

 

(a)           General Conditions.

 

(i)  Each party will make each payment or delivery specified in each

Confirmation to be made by it, subject to the other provisions of this

Agreement.

 

(ii)  Payments under this Agreement will be made on the due date for

value on that date in the place of the account specified in the relevant

Confirmation or otherwise pursuant to this Agreement, in freely transferable

funds and in the manner customary for payments in the required currency.  Where settlement is by delivery (that is,

other than by payment), such delivery will be made for receipt on the due date

in the manner customary for the relevant obligation unless otherwise specified

in the relevant Confirmation or elsewhere in this Agreement.

 

(iii)  Each obligation of each party under Section 2(a)(i) is subject to

(1) the condition precedent that no Event of Default or Potential Event of Default

with respect to the other party has occurred and is continuing, (2) the

condition precedent that no Early Termination Date in respect of the relevant

Transaction has occurred or been effectively designated and (3) each other

applicable condition precedent specified in this Agreement.

 

Copyright ©  1992 by

International Swap Dealers Association, Inc.

 

(b)           Change of Account.  Either party may

change its account for receiving a payment or delivery by giving notice to the

other party at least five Local Business Days prior to the scheduled date for

the payment or delivery to which such change applies unless such other party

gives timely notice of a reasonable objection to such change.

 

(c)           Netting.  If on any date amounts would otherwise be payable:—

 

(i)  in the same currency; and

 

(ii)  in respect of the same Transaction,

 

by

each party to the other, then, on such date, each party’s obligation to make

payment of any such amount will be automatically satisfied and discharged and,

if the aggregate amount that would otherwise have been payable by one party

exceeds the aggregate amount that would otherwise have been payable by the

other party, replaced by an obligation upon the party by whom the larger

aggregate amount would have been payable to pay to the other party the excess

of the larger aggregate amount over the smaller aggregate amount.

 

The parties may elect in respect of

two or more Transactions that a net amount will be determined in respect of all

amounts payable on the same date in the same currency in respect of such

Transactions, regardless of whether such amounts are payable in respect of the

same Transaction.  The election may be

made in the Schedule or a Confirmation by specifying that subparagraph (ii)

above will not apply to the Transactions identified as being subject to the

election, together with the starting date (in which case subparagraph (ii)

above will not, or will cease to, apply to such Transactions from such

date).  This election may be made

separately for different groups of Transactions and will apply separately to

each pairing of Offices through which the parties make and receive payments or

deliveries.

 

(d)                Deduction or Withholding for Tax.

 

(i)                Gross-Up. 

All payments under this Agreement will be made without any deduction or

withholding for or on account of any Tax unless such deduction or withholding

is required by any applicable law, as modified by the practice of any relevant

governmental revenue authority, then in effect.  If a party is so required to deduct or withhold, then that party

(“X”) will:—

 

(1)  promptly notify the other party (“Y”) of such requirement;

 

(2)  pay to the relevant authorities the full amount required to be

deducted or withheld (including the full amount required to be deducted or

withheld from any additional amount paid by X to Y under this Section 2(d))

promptly upon the earlier of determining that such deduction or withholding is

required or receiving notice that such amount has been assessed against Y;

 

(3)  promptly forward to Y an official receipt (or a certified copy),

or other documentation reasonably acceptable to Y, evidencing such payment to

such authorities; and

 

(4)  if such Tax is an Indemnifiable Tax, pay to Y, in addition to the

payment to which Y is otherwise entitled under this Agreement, such additional

amount as is necessary to ensure that the net amount actually received by Y

(free and clear of Indemnifiable Taxes, whether assessed against X or Y) will

equal the full amount Y would have received had no such deduction or

withholding been required.  However, X

will not be required to pay any additional amount to Y to the extent that it

would not be required to be paid but for:—

 

(A)  the failure by Y to comply with or perform any agreement

contained in Section 4(a)(i), 4(a)(iii) or 4(d); or

 

(B)  the failure

of a representation made by Y pursuant to Section 3(f) to be accurate and true

unless such failure would not have occurred but for (I) any action taken by a

taxing authority, or brought in a court of competent jurisdiction, on or after

the date on which a Transaction is entered into (regardless of whether such

action is taken or brought with respect to a party to this Agreement) or (II) a

Change in Tax Law.

(ii)  Liability.  If:—

 

(1)  X is required by any applicable law, as modified by the practice

of any relevant governmental revenue authority, to make any deduction or

withholding in respect of which X would not be required to pay an additional

amount to Y under Section 2(d)(i)(4);

 

(2)  X does not so deduct or withhold; and

 

(3)  a liability resulting from such Tax is assessed directly against

X,

 

then, except to the extent Y has

satisfied or then satisfies the liability resulting from such Tax, Y will

promptly pay to X the amount of such liability (including any related liability

for interest, but including any related liability for penalties only if Y has

failed to comply with or perform any agreement contained in Section 4(a)(i),

4(a)(iii) or 4(d)).

 

(e)           Default Interest; Other Amounts.  Prior

to the occurrence or effective designation of an Early Termination Date in

respect of the relevant Transaction, a party that defaults in the performance

of any payment obligation will, to the extent permitted by law and subject to

Section 6(c), be required to pay interest (before as well as after judgment) on

the overdue amount to the other party on demand in the same currency as such

overdue amount, for the period from (and including) the original due date for

payment to (but excluding) the date of actual payment, at the Default Rate.  Such interest will be calculated on the

basis of daily compounding and the actual number of days elapsed.  If, prior to the occurrence or effective

designation of an Early Termination Date in respect of the relevant Transaction,

a party defaults in the performance of any obligation required to be settled by

delivery, it will compensate the other party on demand if and to the extent

provided for in the relevant Confirmation or elsewhere in this Agreement.

 

3.                Representations

 

Each

party represents to the other party (which representations will be deemed to be

repeated by each party on each date on which a Transaction is entered into and,

in the case of the representations in Section 3(f), at all times until the

termination of this Agreement) that:—

 

(a)           Basic Representations.

 

(i)  Status. 

It is duly organized and validly existing under the laws of the

jurisdiction of its organization or incorporation and, if relevant under such

laws, in good standing;

 

(ii)  Powers. 

It has the power to execute this Agreement and any other documentation

relating to this Agreement to which it is a party, to deliver this Agreement

and any other documentation relating to this Agreement that it is required by

this Agreement to deliver and to perform its obligations under this Agreement

and any obligations it has under any Credit Support Document to which it is a

party and has taken all necessary action to authorize such execution, delivery

and performance;

 

(iii)  No

Violation or Conflict.  Such execution, delivery and performance do

not violate or conflict with any law applicable to it, any provision of its

constitutional documents, any order or judgment of any court or other agency of

government applicable to it or any of its assets or any contractual restriction

binding on or affecting it or any of its assets;

 

(iv)  Consents.  All governmental and other consents that are required to have been

obtained by it with respect to this Agreement or any Credit Support Document to

which it is a party have been obtained and are in full force and effect and all

conditions of any such consents have been complied with; and

 

(v)  Obligations

Binding.  Its obligations under this Agreement and any

Credit Support Document to which it is a party constitute its legal, valid and

binding obligations, enforceable in accordance with their respective terms

(subject to applicable bankruptcy, reorganization, insolvency, moratorium or

similar laws affecting creditors’ rights generally and subject, as to

enforceability, to equitable principles of general application (regardless of

whether enforcement is sought in a proceeding in equity or at law)).

(b)           Absence of Certain Events.  No Event of Default or Potential Event of Default or, to its

knowledge, Termination Event with respect to it has occurred and is continuing

and no such event or circumstance would occur as a result of its entering into

or performing its obligations under this Agreement or any Credit Support

Document to which it is a party.

 

(c)           Absence of Litigation. There is not pending or, to its knowledge, threatened against it

or any of its Affiliates any action, suit or proceeding at law or in equity or

before any court, tribunal, governmental body, agency or official or any

arbitrator that is likely to affect the legality, validity or enforceability against

it of this Agreement or any Credit Support Document to which it is a party or

its ability to perform its obligations under this Agreement or such Credit

Support Document.

 

(d)                Accuracy of Specified Information.  All applicable information that is furnished in writing by or on

behalf of it to the other party and is identified for the purpose of this

Section 3(d) in the Schedule is, as of the date of the information, true,

accurate and complete in every material respect.

 

(e)           Payer Tax Representation. Each representation specified in the Schedule as being made by it

for the purpose of this Section 3(e) is accurate and true.

 

(f)            Payee Tax Representations. Each representation specified in the Schedule as being made by it

for the purpose of this Section 3(f) is accurate and true.

 

4.                Agreements

 

Each

party agrees with the other that, so long as either party has or may have any

obligation under this Agreement or under any Credit Support Document to which

it is a party:—

 

(a)           Furnish Specified Information.  It will deliver to the other party or, in certain cases under

subparagraph (iii) below, to such government or taxing authority as the other

party reasonably directs:—

 

(i)  any forms, documents or certificates relating to taxation

specified in the Schedule or any Confirmation;

 

(ii)  any other documents specified in the Schedule or any

Confirmation; and

 

(iii)  upon reasonable demand by such other party, any form or document

that may be required or reasonably requested in writing in order to allow such

other party or its Credit Support Provider to make a payment under this

Agreement or any applicable Credit Support Document without any deduction or

withholding for or on account of any Tax or with such deduction or withholding

at a reduced rate (so long as the completion, execution or submission of such

form or document would not materially prejudice the legal or commercial

position of the party in receipt of such demand), with any such form or

document to be accurate and completed in a manner reasonably satisfactory to

such other party and to be executed and to be delivered with any reasonably

required certification,

 

in

each case by the date specified in the Schedule or such Confirmation or, if

none is specified, as soon as reasonably practicable.

 

(b)                Maintain Authorizations.  It will use all reasonable efforts to maintain in full force and

effect all consents of any governmental or other authority that are required to

be obtained by it with respect to this Agreement or any Credit Support Document

to which it is a party and will use all reasonable efforts to obtain any that

may become necessary in the future.

 

(c)           Comply with Laws. It will comply in

all material respects with all applicable laws and orders to which it may be

subject if failure so to comply would materially impair its ability to perform

its obligations under this Agreement or any Credit Support Document to which it

is a party.

 

(d)           Tax Agreement. It will give notice

of any failure of a representation made by it under Section 3(f) to be accurate

and true promptly upon learning of such failure.

(e)           Payment of Stamp Tax.  Subject to Section 11, it will pay any Stamp Tax levied or imposed

upon it or in respect of its execution or performance of this Agreement by a

jurisdiction in which it is incorporated, organized, managed and controlled, or

considered to have its seat, or in which a branch or office through which it is

acting for the purpose of this Agreement is located (“Stamp Tax Jurisdiction”)

and will indemnify the other party against any Stamp Tax levied or imposed upon

the other party or in respect of the other party’s execution or performance of

this Agreement by any such Stamp Tax Jurisdiction which is not also a Stamp Tax

Jurisdiction with respect to the other party.

 

5.             Events of

Default and Termination Events

 

(a)           Events of Default.  The occurrence at

any time with respect to a party or, if applicable, any Credit Support Provider

of such party or any Specified Entity of such party of any of the following

events constitutes an event of default (an “Event of Default”) with respect to

such party:—

 

(i)  Failure to

Pay or Deliver. Failure by the party to make, when due, any

payment under this Agreement or delivery under Section 2(a)(i) or 2(e) required

to be made by it if such failure is not remedied on or before the third Local

Business Day after notice of such failure is given to the party;

 

(ii)  Breach of

Agreement.  Failure by

the party to comply with or perform any agreement or obligation (other than an

obligation to make any payment under this Agreement or delivery under Section

2(a)(i) or 2(e) or to give notice of a Termination Event or any agreement or

obligation under Section 4(a)(i), 4(a)(iii) or 4(d)) to be complied with or

performed by the party in accordance with this Agreement if such failure is not

remedied on or before the thirtieth day after notice of such failure is given

to the party;

 

(iii)  Credit

Support Default.

 

(1)  Failure by the party or any Credit Support Provider of such party

to comply with or perform any agreement or obligation to be complied with or

performed by it in accordance with any Credit Support Document if such failure

is continuing after any applicable grace period has elapsed;

 

(2)  the expiration or termination of such Credit Support Document or

the failing or ceasing of such Credit Support Document to be in full force and

effect for the purpose of this Agreement (in either case other than in

accordance with its terms) prior to the satisfaction of all obligations of such

party under each Transaction to which such Credit Support Document relates

without the written consent of the other party; or

 

(3)  the party or such Credit Support Provider disaffirms, disclaims,

repudiates or rejects, in whole or in part, or challenges the validity of, such

Credit Support Document;

 

(iv)  Misrepresentation.  A representation (other than a

representation under Section 3(e) or (f)) made or repeated or deemed to have

been made or repeated by the party or any Credit Support Provider of such party

in this Agreement or any Credit Support Document proves to have been incorrect

or misleading in any material respect when made or repeated or deemed to have

been made or repeated;

 

(v)  Default

under Specified Transaction.  The party, any Credit Support Provider of

such party or any applicable Specified Entity of such party (1) defaults under

a Specified Transaction and, after giving effect to any applicable notice

requirement or grace period, there occurs a liquidation of, an acceleration of

obligations under, or an early termination of, that Specified Transaction, (2)

defaults, after giving effect to any applicable notice requirement or grace

period, in making any payment or delivery due on the last payment, delivery or

exchange date of, or any payment on early termination of, a Specified

Transaction (or such default continues for at least three Local Business Days

if there is no applicable notice requirement or grace period) or (3)

disaffirms, disclaims, repudiates or rejects in whole or in part, a Specified

Transaction (or such action is taken by any person or entity appointed or

empowered to operate it or act on its behalf);

(vi)  Cross Default.  If  “Cross Default” is

specified in the Schedule as applying to the party, the occurrence or existence

of (1) a default, event of default or other similar condition or event (however

described) in respect of such party, any Credit Support Provider of such party

or any applicable Specified Entity of such party under one or more agreements

or instruments relating to Specified Indebtedness of any of them (individually

or collectively) in an aggregate amount of not less than the applicable

Threshold Amount (as specified in the Schedule) which has resulted in such

Specified Indebtedness becoming, or becoming capable at such time of being declared,

due and payable under such agreements or instruments, before it would otherwise

have been due and payable or (2) a default by such party, such Credit Support

Provider or such Specified Entity (individually or collectively) in making one

or more payments on the due date thereof in an aggregate amount of not less

than the applicable Threshold Amount under such agreements or instruments

(after giving effect to any applicable notice requirement or grace period);

 

(vii)  Bankruptcy. The party, any Credit Support Provider of such party or any

applicable Specified Entity of such party:—

 

(1) is dissolved (other than

pursuant to a consolidation, amalgamation or merger); (2) becomes insolvent or

is unable to pay its debts or fails or admits in writing its inability

generally to pay its debts as they become due; (3) makes a general assignment,

arrangement or composition with or for the benefit of its creditors; (4)

institutes or has instituted against it a proceeding seeking a judgment of

insolvency or bankruptcy or any other relief under any bankruptcy or insolvency

law or other similar law affecting creditors’ rights, or a petition is

presented for its winding-up or liquidation, and, in the case of any such

proceeding or petition instituted or presented against it, such proceeding or

petition (A) results in a judgment of insolvency or bankruptcy or the entry of

an order for relief or the making of an order for its winding-up or liquidation

or (B) is not dismissed, discharged, stayed or restrained in each case within

30 days of the institution or presentation thereof; (5) has a resolution passed

for its winding-up, official management or liquidation (other than pursuant to

a consolidation, amalgamation or merger); (6) seeks or becomes subject to the

appointment of an administrator, provisional liquidator, conservator, receiver,

trustee, custodian or other similar official for it or for all or substantially

all its assets; (7) has a secured party take possession of all or substantially

all its assets or has a distress, execution, attachment, sequestration or other

legal process levied, enforced or sued on or against all or substantially all

its assets and such secured party maintains possession, or any such process is

not dismissed, discharged, stayed or restrained, in each case within 30 days

thereafter: (8) causes or is subject to any event with respect to it which,

under the applicable laws of any jurisdiction, has an analogous effect to any

of the events specified in clauses (1) to (7) (inclusive); or (9) takes any

action in furtherance of, or indicating its consent to, approval of, or

acquiescence in, any of the foregoing acts; or

 

(viii)  Merger

Without Assumption.  The party or any Credit Support Provider of

such party consolidates or amalgamates with, or merges with or into, or

transfers all or substantially all its assets to, another entity and, at the

time of such consolidation, amalgamation, merger or transfer:—

 

(1)  the resulting, surviving or transferee entity fails to assume all

the obligations of such party or such Credit Support Provider under this

Agreement or any Credit Support Document to which it or its predecessor was a

party by operation of law or pursuant to an agreement reasonably satisfactory

to the other party to this Agreement; or

 

(2)  the benefits of any Credit Support Document fail to extend

(without the consent of the other party) to the performance by such resulting,

surviving or transferee entity of its obligations under this Agreement.

 

(b)                Termination Events.  The occurrence at any time with respect to a party or, if

applicable, any Credit Support Provider of such party or any Specified Entity

of such party of any event specified below constitutes an Illegality if the

event is specified in (i) below, a Tax Event if the event is specified in (ii)

below or a Tax Event Upon Merger if the event is specified in (iii) below, and,

if specified to be applicable, a Credit Event Upon Merger if the event is

specified pursuant to (iv) below or an Additional Termination Event if the

event is specified pursuant to (v) below:—

(i)  Illegality. Due to the adoption of, or any change in, any applicable law after

the date on which a Transaction is entered into, or due to the promulgation of,

or any change in, the interpretation by any court, tribunal or regulatory

authority with competent jurisdiction of any applicable law after such date, it

becomes unlawful (other than as a result of a breach by the party of Section

4(b)) for such party (which will be the Affected Party):—

 

(1)  to perform any absolute or contingent obligation to make a

payment or delivery or to receive a payment or delivery in respect of such

Transaction or to comply with any other material provision of this Agreement

relating to such Transaction; or

 

(2)  to perform, or for any Credit Support Provider of such party to

perform, any contingent or other obligation which the party (or such Credit

Support Provider) has under any Credit Support Document relating to such

Transaction;

 

(ii)  Tax Event.  Due to (x) any action taken by a taxing authority, or brought in a

court of competent jurisdiction, on or after the date on which a Transaction is

entered into (regardless of whether such action is taken or brought with

respect to a party to this Agreement) or (y) a Change in Tax Law, the party (which

will be the Affected Party) will, or there is a substantial likelihood that it

will, on the next succeeding Scheduled Payment Date (1) be required to pay to

the other party an additional amount in respect of an Indemnifiable Tax under

Section 2(d)(i)(4) (except in respect of interest under Section 2(e), 6(d)(ii)

or 6(e)) or (2) receive a payment from which an amount is required to be

deducted or withheld for or on account of a Tax (except in respect of interest

under Section 2(e), 6(d)(ii) or 6(e)) and no additional amount is required to

be paid in respect of such Tax under Section 2(d)(i)(4) (other than by reason

of Section 2(d)(i)(4)(A) or (B));

 

(iii)  Tax Event

Upon Merger.  The party (the “Burdened Party”) on the next

succeeding Scheduled Payment Date will either (1) be required to pay an

additional amount in respect of an Indemnifiable Tax under Section 2(d)(i)(4)

(except in respect of interest under Section 2(e), 6(d)(ii) or 6(e)) or (2)

receive a payment from which an amount has been deducted or withheld for or on

account of any Indemnifiable Tax in respect of which the other party is not

required to pay an additional amount (other than by reason of Section

2(d)(i)(4)(A) or (B)), in either case as a result of a party consolidating or

amalgamating with, or merging with or into, or transferring all or

substantially all its assets to, another entity (which will be the Affected

Party) where such action does not constitute an event described in Section

5(a)(viii);

 

(iv)  Credit

Event Upon Merger. If “Credit Event Upon Merger” is specified in

the Schedule as applying to the party, such party (“X”), any Credit Support

Provider of X or any applicable Specified Entity of X consolidates or

amalgamates with, or merges with or into, or transfers all or substantially all

its assets to, another entity and such action does not constitute an event

described in Section 5(a)(viii) but the creditworthiness of the resulting,

surviving or transferee entity is materially weaker than that of X, such Credit

Support Provider or such Specified Entity, as the case may be, immediately

prior to such action (and, in such event, X or its successor or transferee, as

appropriate, will be the Affected Party); or

 

(v)  Additional

Termination Event.  If any “Additional Termination Event” is

specified in the Schedule or any Confirmation as applying, the occurrence of

such event (and, in such event, the Affected Party or Affected Parties shall be

as specified for such Additional Termination Event in the Schedule or such

Confirmation).

 

(c)           Event of Default and Illegality. If an event or circumstance which would otherwise constitute or

give rise to an Event of Default also constitutes an Illegality, it will be

treated as an Illegality and will not constitute an Event of Default.

6.             Early Termination

 

(a)           Right to Terminate Following Event of Default.  If at any time an Event of Default with

respect to a party (the “Defaulting Party”) has occurred and is then

continuing, the other party (the “Non-defaulting Party”) may, by not more than

20 days notice to the Defaulting Party specifying the relevant Event of

Default, designate a day not earlier than the day such notice is effective as

an Early Termination Date in respect of all outstanding Transactions.  If, however, “Automatic Early Termination”

is specified in the Schedule as applying to a party, then an Early Termination

Date in respect of all outstanding Transactions will occur immediately upon the

occurrence with respect to such party of an Event of Default specified in

Section 5(a)(vii)(l), (3), (5), (6) or, to the extent analogous thereto, (8),

and as of the time immediately preceding the institution of the relevant

proceeding or the presentation of the relevant petition upon the occurrence

with respect to such party of an Event of Default specified in Section

5(a)(vii)(4) or, to the extent analogous thereto, (8).

 

(b)           Right to Terminate Following Termination Event.

 

(i)  Notice.  If a Termination Event occurs, an Affected Party will, promptly

upon becoming aware of it, notify the other party, specifying the nature of

that Termination Event and each Affected Transaction and will also give such

other information about that Termination Event as the other party may

reasonably require.

 

(ii)  Transfer

to Avoid Termination Event.   If either an Illegality under Section 5(b)(i)(1) or a Tax Event

occurs and there is only one Affected Party, or if a Tax Event Upon Merger

occurs and the Burdened Party is the Affected Party, the Affected Party will,

as a condition to its right to designate an Early Termination Date under

Section 6(b)(iv), use all reasonable efforts (which will not require such party

to incur a loss, excluding immaterial, incidental expenses) to transfer within

20 days after it gives notice under Section 6(b)(i) all its rights and obligations

under this Agreement in respect of the Affected Transactions to another of its

Offices or Affiliates so that such Termination Event ceases to exist.

 

If the Affected Party is not able

to make such a transfer it will give notice to the other party to that effect

within such 20 day period, whereupon the other party may effect such a transfer

within 30 days after the notice is given under Section 6(b)(i).

 

Any such transfer by a party under

this Section 6(b)(ii) will be subject to and conditional upon the prior written

consent of the other party, which consent will not be withheld if such other

party’s policies in effect at such time would permit it to enter into

transactions with the transferee on the terms proposed.

 

(iii)  Two

Affected Parties.  If an Illegality under Section 5(b)(i)(1) or

a Tax Event occurs and there are two Affected Parties, each party will use all

reasonable efforts to reach agreement within 30 days after notice thereof is

given under Section 6(b)(i) on action to avoid that Termination Event.

 

(iv)  Right to

Terminate. If:—

 

(1)  a transfer under Section 6(b)(ii) or an agreement under Section

6(b)(iii), as the case may be, has not been effected with respect to all

Affected Transactions within 30 days after an Affected Party gives notice under

Section 6(b)(i); or

 

(2)  an Illegality under Section 5(b)(i)(2), a Credit Event Upon

Merger or an Additional Termination Event occurs, or a Tax Event Upon Merger

occurs and the Burdened Party is not the Affected Party,

 

either party in the case of an

Illegality, the Burdened Party in the case of a Tax Event Upon Merger, any

Affected Party in the case of a Tax Event or an Additional Termination Event if

there is more than one Affected Party, or the party which is not the Affected

Party in the case of a Credit Event Upon Merger or an Additional Termination Event if there is only one

Affected Party may, by not more than 20 days notice to the other party and

provided that the relevant Termination Event is then continuing, designate a

day not earlier than the day such notice is effective as an Early Termination

Date in respect of all Affected Transactions.

(c)           Effect of Designation.

 

(i)  If notice designating an Early Termination Date is given under

Section 6(a) or (b), the Early Termination Date will occur on the date so

designated, whether or not the relevant Event of Default or Termination Event

is then continuing.

 

(ii)  Upon the occurrence or effective designation of an Early

Termination Date, no further payments or deliveries under Section 2(a)(i) or

2(e) in respect of the Terminated Transactions will be required to be made, but

without prejudice to the other provisions of this Agreement.  The amount, if any, payable in respect of an

Early Termination Date shall be determined pursuant to Section 6(e).

 

(d)                Calculations.

 

(i)  Statement. 

On or as soon as reasonably practicable following the occurrence of an

Early Termination Date, each party will make the calculations on its part, if

any, contemplated by Section 6(e) and will provide to the other party a

statement (1) showing, in reasonable detail, such calculations (including all

relevant quotations and specifying any amount payable under Section 6(e)) and

(2) giving details of the relevant account to which any amount payable to it is

to be paid.  In the absence of written

confirmation from the source of a quotation obtained in determining a Market

Quotation, the records of the party obtaining such quotation will be conclusive

evidence of the existence and accuracy of such quotation.

 

(ii)  Payment Date. An amount calculated as being due in respect of any Early

Termination Date under Section 6(e) will be payable on the day that notice of

the amount payable is effective (in the case of an Early Termination Date which

is designated or occurs as a result of an Event of Default) and on the day

which is two Local Business Days after the day on which notice of the amount

payable is effective (in the case of an Early Termination Date which is

designated as a result of a Termination Event).  Such amount will be paid together with (to the extent permitted

under applicable law) interest thereon (before as well as after judgment) in

the Termination Currency, from (and including) the relevant Early Termination

Date to (but excluding) the date such amount is paid, at the Applicable

Rate.  Such interest will be calculated

on the basis of daily compounding and the actual number of days elapsed.

 

(e)                Payments on Early Termination.  If an Early Termination Date occurs, the

following provisions shall apply based on the parties’ election in the Schedule

of a payment measure, either “Market Quotation” or “Loss”, and a payment

method, either the “First Method” or the “Second Method”.  If the parties fail to designate a payment

measure or payment method in the Schedule, it will be deemed that “Market

Quotation” or the “Second Method”, as the case may be, shall apply.  The amount, if any, payable in respect of an

Early Termination Date and determined pursuant to this Section will be subject

to any Set-off.

 

(i)  Events of

Default. If the Early Termination Date results from an

Event of Default:—

 

(1)  First Method and Market

Quotation.  If the First

Method and Market Quotation apply, the Defaulting Party will pay to the

Non-defaulting Party the excess, if a positive number, of (A) the sum of the

Settlement Amount (determined by the Non-defaulting Party) in respect of the

Terminated Transactions and the Termination Currency Equivalent of the Unpaid

Amounts owing to the Non-defaulting Party over (B) the Termination Currency

Equivalent of the Unpaid Amounts owing to the Defaulting Party.

 

(2)  First Method and Loss.  If the First Method and Loss apply, the

Defaulting Party will pay to the Non-defaulting Party, if a positive number,

the Non-defaulting Party’s Loss in respect of this Agreement.

(3)  Second Method and Market

Quotation.  If the Second

Method and Market Quotation apply, an amount will be payable equal to (A) the

sum of the Settlement Amount (determined by the Non-defaulting Party) in

respect of the Terminated Transactions and the Termination Currency Equivalent

of the Unpaid Amounts owing to the Non-defaulting Party less (B) the

Termination Currency Equivalent of the Unpaid Amounts owing to the Defaulting

Party.  If that amount is a positive

number, the Defaulting Party will pay it to the Non-defaulting Party; if it is

a negative number, the Non-defaulting Party will pay the absolute value of that

amount to the Defaulting Party.

 

(4)  Second Method and Loss.  If the Second Method and Loss apply, an

amount will be payable equal to the Non-defaulting Party’s Loss in respect of

this Agreement.  If that amount is a

positive number, the Defaulting Party will pay it to the Non-defaulting Party;

if it is a negative number, the Non-defaulting Party will pay the absolute

value of that amount to the Defaulting Party.

 

(ii)  Termination

Events.  If the Early Termination Date results from a

Termination Event:—

 

(1)  One Affected Party.  If there is one Affected Party, the amount

payable will be determined in accordance with Section 6(e)(i)(3), if Market

Quotation applies, or Section 6(e)(i)(4), if Loss applies, except that, in

either case, references to the Defaulting Party and to the Non-defaulting Party

will be deemed to be references to the Affected Party and the party which is

not the Affected Party, respectively, and, if Loss applies and fewer than all

the Transactions are being terminated, Loss shall be calculated in respect of

all Terminated Transactions.

 

(2)  Two Affected Parties.  If there are two Affected

Parties:—

 

(A)  if Market Quotation applies, each party will determine a

Settlement Amount in respect of the Terminated Transactions, and an amount will

be payable equal to (I) the sum of (a) one-half of the difference between the

Settlement Amount of the party with the higher Settlement Amount (“X”) and the

Settlement Amount of the party with the lower Settlement Amount (“Y”) and (b)

the Termination Currency Equivalent of the Unpaid Amounts owing to X less (II)

the Termination Currency Equivalent of the Unpaid Amounts owing to Y; and

 

(B)  if Loss applies, each party will determine its Loss in respect of

this Agreement (or, if fewer than all the Transactions are being terminated, in

respect of all Terminated Transactions) and an amount will be payable equal to

one-half of the difference between the Loss of the party with the higher Loss

(“X”) and the Loss of the party with the lower Loss (“Y”).

 

If the amount payable is a positive

number, Y will pay it to X; if it is a negative number, X will pay the absolute

value of that amount to Y.

 

(iii)  Adjustment

for Bankruptcy.  In

circumstances where an Early Termination Date occurs because “Automatic Early

Termination” applies in respect of a party, the amount determined under this

Section 6(e) will be subject to such adjustments as are appropriate and

permitted by law to reflect any payments or deliveries made by one party to the

other under this Agreement (and retained by such other party) during the period

from the relevant Early Termination Date to the date for payment determined under

Section 6(d)(ii).

 

(iv)  Pre-Estimate.  The parties agree that if Market Quotation

applies an amount recoverable under this Section 6(e) is a reasonable

pre-estimate of loss and not a penalty. 

Such amount is payable for the loss of bargain and the loss of

protection against future risks and except as otherwise provided in this

Agreement neither party will be entitled to recover any additional damages as a

consequence of such losses.

7.             Transfer

 

Subject to Section 6(b)(ii), neither this Agreement nor

any interest or obligation in or under this Agreement may be transferred

(whether by way of security or otherwise) by either party without the prior

written consent of the other party, except that:—

 

(a)  a party may make such a transfer of this

Agreement pursuant to a consolidation or amalgamation with, or merger with or

into, or transfer of all or substantially all its assets to, another entity

(but without prejudice to any other right or remedy under this Agreement); and

 

(b)  a party may make such a transfer of all or

any part of its interest in any amount payable to it from a Defaulting Party

under Section 6(e).

 

Any

purported transfer that is not in compliance with this Section will be void.

 

8.                Contractual Currency

 

(a)           Payment in the Contractual Currency.  Each payment under this Agreement will be made in the relevant

currency specified in this Agreement for that payment (the “Contractual

Currency”).  To the extent permitted by applicable

law, any obligation to make payments under this Agreement in the Contractual

Currency will not be discharged or satisfied by any tender in any currency

other than the Contractual Currency, except to the extent such tender results

in the actual receipt by the party to which payment is owed, acting in a

reasonable manner and in good faith in converting the currency so tendered into

the Contractual Currency, of the full amount in the Contractual Currency of all

amounts payable in respect of this Agreement. 

If for any reason the amount in the Contractual Currency so received

falls short of the amount in the Contractual Currency payable in respect of

this Agreement, the party required to make the payment will, to the extent

permitted by applicable law, immediately pay such additional amount in the

Contractual Currency as may be necessary to compensate for the shortfall.  If for any reason the amount in the

Contractual Currency so received exceeds the amount in the Contractual Currency

payable in respect of this Agreement, the party receiving the payment will

refund promptly the amount of such excess.

 

(b)                Judgments.  To the extent

permitted by applicable law, if any judgment or order expressed in a currency

other than the Contractual Currency is rendered (i) for the payment of any

amount owing in respect of this Agreement, (ii) for the payment of any amount

relating to any early termination in respect of this Agreement or (iii) in

respect of a judgment or order of another court for the payment of any amount

described in (i) or (ii) above, the party seeking recovery, after recovery in

full of the aggregate amount to which such party is entitled pursuant to the

judgment or order, will be entitled to receive immediately from the other party

the amount of any shortfall of the Contractual Currency received by such party

as a consequence of sums paid in such other currency and will refund promptly

to the other party any excess of the Contractual Currency received by such

party as a consequence of sums paid in such other currency if such shortfall or

such excess arises or results from any variation between the rate of exchange

at which the Contractual Currency is converted into the currency of the

judgment or order for the purposes of such judgment or order and the rate of

exchange at which such party is able, acting in a reasonable manner and in good

faith in converting the currency received into the Contractual Currency, to

purchase the Contractual Currency with the amount of the currency of the

judgment or order actually received by such party. The term “rate of exchange”

includes, without limitation, any premiums and costs of exchange payable in

connection with the purchase of or conversion into the Contractual Currency.

 

(c)                Separate Indemnities.  To the extent permitted by applicable law, these indemnities

constitute separate and independent obligations from the other obligations in

this Agreement, will be enforceable as separate and independent causes of

action, will apply notwithstanding any indulgence granted by the party to which

any payment is owed and will not be affected by judgment being obtained or

claim or proof being made for any other sums payable in respect of this

Agreement.

 

(d)                Evidence of Loss. For the purpose of this Section 8, it will be sufficient for a

party to demonstrate that it would have suffered a loss had an actual exchange

or purchase been made.

9.                Miscellaneous

 

(a)           Entire Agreement.  This Agreement

constitutes the entire agreement and understanding of the parties with respect

to its subject matter and supersedes all oral communication and prior writings

with respect thereto.

 

(b)                Amendments.  No amendment, modification or waiver in respect of this Agreement

will be effective unless in writing (including a writing evidenced by a

facsimile transmission) and executed by each of the parties or confirmed by an exchange

of telexes or electronic messages on an electronic messaging system.

 

(c)           Survival of Obligations.  Without prejudice to Sections 2(a)(iii) and

6(c)(ii), the obligations of the parties under this Agreement will survive the

termination of any Transaction.

 

(d)                Remedies Cumulative.  Except as provided in this Agreement, the

rights, powers, remedies and privileges provided in this Agreement are

cumulative and not exclusive of any rights, powers, remedies and privileges

provided by law.

 

(e)                Counterparts and Confirmations.

 

(i)  This Agreement (and each amendment, modification and waiver in

respect of it) may be executed and delivered in counterparts (including by

facsimile transmission), each of which will be deemed an original.

 

(ii)  The parties intend that they are legally bound by the terms of

each Transaction from the moment they agree to those terms (whether orally or

otherwise).  A Confirmation shall be

entered into as soon as practicable and may be executed and delivered in

counterparts (including by facsimile transmission) or be created by an exchange

of telexes or by an exchange of electronic messages on an electronic messaging

system, which in each case will be sufficient for all purposes to evidence a

binding supplement to this Agreement. 

The parties will specify therein or through another effective means that

any such counterpart, telex or electronic message constitutes a Confirmation.

 

(f)            No Waiver of Rights.  A failure or delay

in exercising any right, power or privilege in respect of this Agreement will

not be presumed to operate as a waiver, and a single or partial exercise of any

right, power or privilege will not be presumed to preclude any subsequent or

further exercise, of that right, power or privilege or the exercise of any

other right, power or privilege.

 

(g)                Headings.

 The headings used in this

Agreement are for convenience of reference only and are not to affect the

construction of or to be taken into consideration in interpreting this

Agreement.

 

10.           Offices;

Multibranch Parties

 

(a)           If Section 10(a) is specified in the

Schedule as applying, each party that enters into a Transaction through an

Office other than its head or home office represents to the other party that,

notwithstanding the place of booking office or jurisdiction of incorporation or

organization of such party, the obligations of such party are the same as if it

had entered into the Transaction through its head or home office.  This representation will be deemed to be

repeated by such party on each date on which a Transaction is entered into.

 

(b)           Neither party may change the Office

through which it makes and receives payments or deliveries for the purpose of a

Transaction without the prior written consent of the other party.

 

(c)           If a party is specified as a Multibranch

Party in the Schedule, such Multibranch Party may make and receive payments or

deliveries under any Transaction through any Office listed in the Schedule, and

the Office through which it makes and receives payments or deliveries with

respect to a Transaction will be specified in the relevant Confirmation.

11.                Expenses

 

A Defaulting Party will, on demand, indemnify and hold

harmless the other party for and against all reasonable out-of-pocket expenses,

including legal fees and Stamp Tax, incurred by such other party by reason of

the enforcement and protection of its rights under this Agreement or any Credit

Support Document to which the Defaulting Party is a party or by reason of the

early termination of any Transaction, including, but not limited to, costs of

collection.

 

12.          Notices

 

(a)                Effectiveness.  Any notice or other communication in respect of this Agreement

may be given in any manner set forth below (except that a notice or other

communication under Section 5 or 6 may not be given by facsimile transmission

or electronic messaging system) to the address or number or in accordance with

the electronic messaging system details provided (see the Schedule) and will be

deemed effective as indicated:—

(i)  if in writing and delivered in person or by courier, on the date

it is delivered;

 

(ii)  if sent by telex, on the date the recipient’s answerback is

received;

 

(iii)  if sent by facsimile transmission, on the date that transmission

is received by a responsible employee of the recipient in legible form (it

being agreed that the burden of proving receipt will be on the sender and will

not be met by a transmission report generated by the sender’s facsimile

machine);

 

(iv)  if sent by certified or registered mail (airmail, if overseas) or

the equivalent (return receipt requested), on the date that mail is delivered

or its delivery is attempted; or

 

(v)  if sent by electronic messaging system, on the date that

electronic message is received,

 

unless

the date of that delivery (or attempted delivery) or that receipt, as

applicable, is not a Local Business Day or that communication is delivered (or

attempted) or received, as applicable, after the close of business on a Local

Business Day, in which case that communication shall be deemed given and

effective on the first following day that is a Local Business Day.

 

(b)           Change of Addresses.  Either party may

by notice to the other change the address, telex or facsimile number or

electronic messaging system details at which notices or other communications

are to be given to it.

 

13.                Governing

Law and Jurisdiction

 

(a)                Governing Law.  This Agreement will be governed by and construed in accordance

with the law specified in the Schedule.

 

(b)                Jurisdiction.  With respect to any suit, action or proceedings relating to this

Agreement (“Proceedings”), each party irrevocably:—

 

(i)  submits to the jurisdiction of the English courts, if this

Agreement is expressed to be governed by English law, or to the nonexclusive

jurisdiction of the courts of the State of New York and the United States

District Court located in the Borough of Manhattan in New York City, if this

Agreement is expressed to be governed by the laws of the State of New York; and

 

(ii)  waives any objection which it may have at any time to the laying

of venue of any Proceedings brought in any such court, waives any claim that

such Proceedings have been brought in an inconvenient forum and further waives

the right to object, with respect to such Proceedings, that such court does not

have any jurisdiction over such party.

Nothing

in this Agreement precludes either party from bringing Proceedings in any other

jurisdiction (outside, if this Agreement is expressed to be governed by English

law, the Contracting States, as defined in Section 1(3) of the Civil

Jurisdiction and Judgments Act 1982 or any modification, extension or

re-enactment thereof for the time being in force) nor will the bringing of

Proceedings in any one or more jurisdictions preclude the bringing of

Proceedings in any other jurisdiction.

 

(c)           Service of Process.  Each party

irrevocably appoints the Process Agent (if any) specified opposite its name in

the Schedule to receive, for it and on its behalf, service of process in any

Proceedings.  If for any reason any

party’s Process Agent is unable to act as such, such party will promptly notify

the other party and within 30 days appoint a substitute process agent

acceptable to the other party.  The

parties irrevocably consent to service of process given in the manner provided

for notices in Section 12.  Nothing in

this Agreement will affect the right of either party to serve process in any

other manner permitted by law.

 

(d)           Waiver of Immunities. 

Each party irrevocably waives, to the fullest extent permitted by

applicable law, with respect to itself and its revenues and assets

(irrespective of their use or intended use), all immunity on the grounds of

sovereignty or other similar grounds from (i) suit, (ii) jurisdiction of any

court, (iii) relief by way of injunction, order for specific performance or for

recovery of property, (iv) attachment of its assets (whether before or after

judgment) and (v) execution or enforcement of any judgment to which it or its

revenues or assets might otherwise be entitled in any Proceedings in the courts

of any jurisdiction and irrevocably agrees, to the extent permitted by

applicable law, that it will not claim any such immunity in any Proceedings.

 

14.                Definitions

 

As

used in this Agreement:—

 

“Additional Termination Event” has the meaning specified in

Section 5(b).

 

“Affected Party” has the meaning specified in

Section 5(b).

 

“Affected Transactions” means (a) with respect to any

Termination Event consisting of an Illegality, Tax Event or Tax Event Upon

Merger, all Transactions affected by the occurrence of such Termination Event

and (b) with respect to any other Termination Event, all Transactions.

 

“Affiliate” means, subject to the Schedule, in

relation to any person, any entity controlled, directly or indirectly, by the

person, any entity that controls, directly or indirectly, the person or any

entity directly or indirectly under common control with the person.  For this purpose, “control” of any entity or

person means ownership of a majority of the voting power of the entity or

person.

 

“Applicable Rate” means:—

 

(a)  in respect of obligations payable or

deliverable (or which would have been but for Section 2(a)(iii)) by a

Defaulting Party, the Default Rate;

 

(b)  in respect of an obligation to pay an amount

under Section 6(e) of either party from and after the date (determined in

accordance with Section 6(d)(ii)) on which that amount is payable, the Default

Rate;

 

(c)  in respect of all other obligations payable

or deliverable (or which would have been but for Section 2(a)(iii)) by a

Non-defaulting Party, the Non-default Rate; and

 

(d)  in all other cases, the Termination Rate.

 

“Burdened Party” has the meaning specified in

Section 5(b).

 

“Change in Tax Law” means the enactment, promulgation,

execution or ratification of, or any change in or amendment to, any law (or in

the application or official interpretation of any law) that occurs on or after

the date on which the relevant Transaction is entered into.

“consent” includes a consent, approval, action, authorization, exemption,

notice, filing, registration or exchange control consent.

 

“Credit Event Upon Merger” has the meaning specified in

Section 5(b).

 

“Credit Support Document” means any agreement or instrument

that is specified as such in this Agreement.

 

“Credit Support Provider” has the meaning specified in the

Schedule.

 

“Default Rate” means a rate per annum equal to

the cost (without proof or evidence of any actual cost) to the relevant payee

(as certified by it) if it were to fund or of funding the relevant amount plus

1% per annum.

 

“Defaulting Party” has the meaning specified in

Section 6(a).

 

“Early Termination Date” means the date determined in

accordance with Section 6(a) or 6(b)(iv).

 

“Event of Default” has the meaning specified in

Section 5(a) and, if applicable, in the Schedule.

 

“Illegality” has the meaning specified in

Section 5(b).

 

“Indemnifiable Tax” means any Tax other than a Tax

that would not be imposed in respect of a payment under this Agreement but for

a present or former connection between the jurisdiction of the government or

taxation authority imposing such Tax and the recipient of such payment or a

person related to such recipient (including, without limitation, a connection

arising from such recipient or related person being or having been a citizen or

resident of such jurisdiction, or being or having been organized, present or

engaged in a trade or business in such jurisdiction, or having or having had a

permanent establishment or fixed place of business in such jurisdiction, but

excluding a connection arising solely from such recipient or related person

having executed, delivered, performed its obligations or received a payment

under, or enforced, this Agreement or a Credit Support Document).

 

“law” includes any treaty, law, rule or

regulation (as modified, in the case of tax matters, by the practice of any

relevant governmental revenue authority) and “lawful”

and “unlawful” will be construed

accordingly.

 

“Local Business Day” means, subject to the Schedule, a

day on which commercial banks are open for business (including dealings in

foreign exchange and foreign currency deposits) (a) in relation to any

obligation under Section 2(a)(i), in the place(s) specified in the relevant

Confirmation or, if not so specified, as otherwise agreed by the parties in

writing or determined pursuant to provisions contained, or incorporated by

reference, in this Agreement, (b) in relation to any other payment, in the

place where the relevant account is located and, if different, in the principal

financial centre, if any, of the currency of such payment, (c) in relation to

any notice or other communication, including notice contemplated under Section

5(a)(i), in the city specified in the address for notice provided by the

recipient and, in the case of a notice contemplated by Section 2(b), in the

place where the relevant new account is to be located and (d) in relation to

Section 5(a)(v)(2), in the relevant locations for performance with respect to

such Specified Transaction.

 

“Loss” means, with respect to this

Agreement or one or more Terminated Transactions, as the case may be, and a

party, the Termination Currency Equivalent of an amount that party reasonably

determines in good faith to be its total losses and costs (or gain, in which

case expressed as a negative number) in connection with this Agreement or that

Terminated Transaction or group of Terminated Transactions, as the case may be,

including any loss of bargain, cost of funding or, at the election of such

party but without duplication, loss or cost incurred as a result of its

terminating, liquidating, obtaining or reestablishing any hedge or related

trading position (or any gain resulting from any of them).  Loss includes losses and costs (or gains) in

respect of any payment or delivery required to have been made (assuming satisfaction

of each applicable condition precedent) on or before the relevant Early

Termination Date and not made, except, so as to avoid duplication, if Section

6(e)(i)(1) or (3) or 6(e)(ii)(2)(A) applies. 

Loss does not include a party’s legal fees and out-of-pocket expenses

referred to under Section 11.  A party

will determine its Loss as of the relevant Early Termination Date, or, if that

is not reasonably practicable, as of the earliest date thereafter as is

reasonably practicable.  A party may

(but need not) determine its Loss by reference to quotations of relevant rates

or prices from one or more leading dealers in the relevant markets.

“Market Quotation” means, with respect to one or more

Terminated Transactions and a party making the determination, an amount

determined on the basis of quotations from Reference Market-makers.  Each quotation will be for an amount, if

any, that would be paid to such party (expressed as a negative number) or by

such party (expressed as a positive number) in consideration of an agreement

between such party (taking into account any existing Credit Support Document

with respect to the obligations of such party) and the quoting Reference

Market-maker to enter into a transaction (the “Replacement Transaction”) that

would have the effect of preserving for such party the economic equivalent of

any payment or delivery (whether the underlying obligation was absolute or

contingent and assuming the satisfaction of each applicable condition

precedent) by the parties under Section 2(a)(i) in respect of such Terminated

Transaction or group of Terminated Transactions that would, but for the

occurrence of the relevant Early Termination Date, have been required after

that date.  For this purpose, Unpaid

Amounts in respect of the Terminated Transaction or group of Terminated Transactions

are to be excluded but, without limitation, any payment or delivery that would,

but for the relevant Early Termination Date, have been required (assuming

satisfaction of each applicable condition precedent) after that Early

Termination Date is to be included.  The

Replacement Transaction would be subject to such documentation as such party

and the Reference Market-maker may, in good faith, agree.  The party making the determination (or its

agent) will request each Reference Market-maker to provide its quotation to the

extent reasonably practicable as of the same day and time (without regard to

different time zones) on or as soon as reasonably practicable after the

relevant Early Termination Date.  The

day and time as of which those quotations are to be obtained will be selected

in good faith by the party obliged to make a determination under Section 6(e),

and, if each party is so obliged, after consultation with the other.  If more than three quotations are provided,

the Market Quotation will be the arithmetic mean of the quotations, without

regard to the quotations having the highest and lowest values.  If exactly three such quotations are

provided, the Market Quotation will be the quotation remaining after disregarding

the highest and lowest quotations.  For

this purpose, if more than one quotation has the same highest value or lowest

value, then one of such quotations shall be disregarded.  If fewer than three quotations are provided,

it will be deemed that the Market Quotation in respect of such Terminated

Transaction or group of Terminated Transactions cannot be determined.

 

“Non-default Rate” means a rate per annum equal to

the cost (without proof or evidence of any actual cost) to the Non-defaulting

Party (as certified by it) if it were to fund the relevant amount.

 

“Non-defaulting Party” has the meaning specified in

Section 6(a).

 

“Office” means a branch or office of a

party, which may be such party’s head or home office.

 

“Potential Event of Default” means any event which, with the

giving of notice or the lapse of time or both, would constitute an Event of

Default.

 

“Reference Market-makers” means four leading dealers in the

relevant market selected by the party determining a Market Quotation in good

faith (a) from among dealers of the highest credit standing which satisfy all

the criteria that such party applies generally at the time in deciding whether

to offer or to make an extension of credit and (b) to the extent practicable,

from among such dealers having an office in the same city.

 

“Relevant Jurisdiction” means, with respect to a party,

the jurisdictions (a) in which the party is incorporated, organized, managed

and controlled or considered to have its seat, (b) where an Office through

which the party is acting for purposes of this Agreement is located, (c) in

which the party executes this Agreement and (d) in relation to any payment,

from or through which such payment is made.

 

“Scheduled Payment Date” means a date on which a payment or

delivery is to be made under Section 2(a)(i) with respect to a Transaction.

 

“Set-off” means set-off, offset, combination

of accounts, right of retention or withholding or similar right or requirement

to which the payer of an amount under Section 6 is entitled or subject (whether

arising under this Agreement, another contract, applicable law or otherwise)

that is exercised by, or imposed on, such payer.

 

“Settlement Amount” means, with respect to a party and

any Early Termination Date, the sum of:—

 

(a)  the Termination Currency Equivalent of the

Market Quotations (whether positive or negative) for each Terminated

Transaction or group of Terminated Transactions for which a Market Quotation is

determined; and

(b)  such party’s Loss (whether positive or

negative and without reference to any Unpaid Amounts) for each Terminated

Transaction or group of Terminated Transactions for which a Market Quotation

cannot be determined or would not (in the reasonable belief of the party making

the determination) produce a commercially reasonable result.

 

“Specified Entity” has the meaning specified in the

Schedule.

 

“Specified Indebtedness” means, subject to the Schedule,

any obligation (whether present or future, contingent or otherwise, as

principal or surety or otherwise) in respect of borrowed money.

 

“Specified Transaction” means, subject to the Schedule,

(a) any transaction (including an agreement with respect thereto) now existing

or hereafter entered into between one party to this Agreement (or any Credit

Support  Provider of such party or any

applicable Specified Entity of such party) and the other party to this

Agreement (or  any Credit Support

Provider of such other party or any applicable Specified Entity of such other

party) which is a rate swap transaction, basis swap, forward rate transaction,

commodity swap, commodity option, equity or equity index swap, equity or equity

index option, bond option, interest rate option, foreign exchange transaction,

cap transaction, floor transaction, collar transaction, currency swap

transaction, cross-currency rate swap transaction, currency option or any other

similar transaction (including any option with respect to any of these

transactions), (b) any combination of these transactions and (c) any other

transaction identified as a Specified Transaction in this Agreement or the relevant

confirmation.

 

“Stamp Tax” means any stamp, registration,

documentation or similar tax.

 

“Tax” means any present or future tax,

levy, impost, duty, charge, assessment or fee of any nature (including

interest, penalties and additions thereto) that is imposed by any government or

other taxing authority in respect of any payment under this Agreement other

than a stamp, registration, documentation or similar tax.

 

“Tax Event” has the meaning specified in

Section 5(b).

 

“Tax Event Upon Merger” has the meaning specified in

Section 5(b).

 

“Terminated Transactions” means with respect to any Early

Termination Date (a) if resulting from a Termination Event, all Affected

Transactions and (b) if resulting from an Event of Default, all Transactions

(in either case) in effect immediately before the effectiveness of the notice

designating that Early Termination Date (or, if “Automatic Early Termination”

applies, immediately before that Early Termination Date).

 

“Termination Currency” has the meaning specified in the Schedule.

 

“Termination Currency Equivalent” means, in respect of any amount

denominated in the Termination Currency, such Termination Currency amount and,

in respect of any amount denominated in a currency other than the Termination

Currency (the “Other Currency”), the amount in the Termination Currency

determined by the party making the relevant determination as being required to

purchase such amount of such Other Currency as at the relevant Early

Termination Date, or, if the relevant Market Quotation or Loss (as the case may

be), is determined as of a later date, that later date, with the Termination

Currency at the rate equal to the spot exchange rate of the foreign exchange

agent (selected as provided below) for the purchase of such Other Currency with

the Terminated Currency at or about 11:00 a.m. (in the city in which such

foreign exchange agent is located) on such date as would be customary for the

determination of such a rate for the purchase of such Other Currency for value

on the relevant Early Termination Date or that later date.  The foreign exchange agent will, if only one

party is obliged to make a determination under Section 6(e), be selected in

good faith by that party and otherwise will be agreed by the parties.

 

“Termination Event” means an Illegality, a Tax Event

or a Tax Event Upon Merger or, if specified to be applicable, a Credit Event

Upon Merger or an Additional Termination Event.

 

“Termination Rate” means a rate per annum equal to

the arithmetic mean of the cost (without proof or evidence of any actual cost)

to each party (as certified by such party) if it were to fund or of funding

such amounts.

“Unpaid Amounts” owing to any party means, with

respect to an Early Termination Date, the aggregate of (a) in respect of all

Terminated Transactions, the amounts that became payable (or that would have

become payable but for Section 2(a)(iii)) to such party under Section 2(a)(i)

on or prior to such Early Termination Date and which remain unpaid as at such

Early Termination Date and (b) in respect of each Terminated Transaction, for

each obligation under Section 2(a)(i) which was (or would have been but for

Section 2(a)(iii)) required to be settled by delivery to such party on or prior

to such Early Termination Date and which has not been so settled as at such

Early Termination Date, an amount equal to the fair market value of that which

was (or would have been) required to be delivered as of the originally

scheduled date for delivery, in each case together with (to the extent

permitted under applicable law) interest, in the currency of such amounts, from

(and including) the date such amounts or obligations were or would have been

required to have been paid or performed to (but excluding) such Early

Termination Date, at the Applicable Rate. 

Such amounts of interest will be calculated on the basis of daily

compounding and the actual number of days elapsed.  The fair market value of any obligation referred to in clause (b)

above shall be reasonably determined by the party obliged to make the determination

under Section 6(e) or, if each party is so obliged, it shall be the average of

the Termination Currency Equivalents of the fair market values reasonably

determined by both parties.

 

IN

WITNESS WHEREOF the parties have executed this document on the respective dates

specified below with effect from the date specified on the first page of this

document.

 

 

	

   

  	

   

  	

  SUNTRUST BANK

  	

   

  	

   

  	

  F.Y.I., Incorporated

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Fred D. Woolf

  	

   

  	

  By:

  	

  /s/ Barry Edwards

  
	

   

  	

  Name:

  	

  Fred D. Woolf

  	

   

  	

  Name:

  	

  Barry Edwards

  
	

   

  	

  Title:

  	

  Vice President

  	

   

  	

  Title:

  	

  Executive Vice President and

  
	

   

  	

  Date:

  	

  3/26/01

  	

   

  	

   

  	

  Chief Financial Officer

  
	

   

  	

   

  	

   

  	

   

  	

  Date:

  	

  3/22/01

  

 

SCHEDULE

TO THE

ISDA MASTER AGREEMENT

DATED AS OF DECEMBER 20, 2000, BETWEEN

SUNTRUST BANK

(“PARTY A”)

AND

F.Y.I., INCORPORATED

(“PARTY B”)

 

Part 1

Definitions

 

1.  “Affiliate” shall have the meaning assigned to

such term in Section 14 of this Agreement.

 

2.                “Calculation

Agent” shall mean Party A.

 

3.                “Shareholders’ Equity” means

with respect to any entity, at any time, the sum (as shown in the most recent

annual audited financial statements of such entity) of (i) its capital stock

(including preferred stock) outstanding, taken at par value, (ii) its capital

surplus and (iii) its retained earnings, minus (iv) treasury stock, each to be

determined in accordance with generally accepted accounting principles.

 

4.                “Specified

Entity” shall mean for the purposes of Sections 5(a)(v), (vi), and (vii), and

Section 5(b)(iv) of this Agreement, in the case of Party A, not applicable, and

in the case of Party B, any Affiliate of Party B, with the exception of any

Nonmaterial Subsidiary as such term is defined in the Credit Agreement

(“$297,500,000,000 Revolving Credit Loan Facility”), dated as of March 2001, by

and among Party B and Bank of America, N.A., as Administrative Agent, Banc of

America Securities LLC, as Sole Lead Arranger and Sole Book Manager, Party A as

Syndication Agent, Wells Fargo Bank, N.A., as Documentation Agent, and the

Lenders named therein.

 

5.                “Specified

Indebtedness” shall have the meaning assigned to such term in Section 14 of

this Agreement, but shall not include indebtedness in respect of deposits

received.

 

6.                “Specified

Transaction” shall have the meaning assigned to such term in Section 14 of this

Agreement.

 

7.                “Termination

Currency” shall mean United States Dollars.

 

8.                “Threshold

Amount” shall mean, for purposes of Section 5(a)(vi) of this Agreement, (a)

with respect to Party A, an amount equal to three percent (3%) of its

Shareholders’ Equity, determined in accordance with generally accepted

accounting principles in such party’s jurisdiction of incorporation or

organization, consistently applied, as at the end of such party’s most recently

completed fiscal year, and (b) with respect to Party B, an amount equal to

$1,000,000 (or the equivalent thereof in any other currencies), except that

with respect to indebtedness under the Loan Agreement, the Threshold Amount

shall be $0.00.

 

Part

2

Representations

 

1.             Tax

Representations.  None.

 

2.             The

following paragraph is added as Section 3(g) of this Agreement:

 

“(g) Eligible Swap Participant.  It is an “eligible swap participant” within

the meaning of 17 C.F.R. sec. 35.1(b)(2).”

 

Part 3

Agreements

 

1.                Documents

to be delivered.  For purposes of

Section 4(a) of this Agreement, each party agrees to deliver the following

documents as applicable:

 

(a)                Certified

copies of all documents evidencing necessary corporate authorizations, as well

as other authorizations and approvals with respect to the execution, delivery

and performance by the party of this Agreement and any Credit Support Document.

 

	

  Party required to deliver:

  	

   

  	

  Party B

  
	

   

  	

   

  	

   

  
	

  Date by which to be delivered:

  	

   

  	

  Upon execution of this Agreement

  
	

   

  	

   

  	

   

  
	

  Covered by Section 3(d) Representation:

  	

   

  	

  Yes

  

 

(b)An incumbency certificate of an authorized

officer of the party certifying the names, true signatures and authority of the

officers of the party signing this Agreement and any Credit Support Document.

 

	

  Party required to deliver:

  	

   

  	

  Party B

  
	

   

  	

   

  	

   

  
	

  Date by which to be delivered:

  	

   

  	

  Upon execution of this Agreement

  
	

   

  	

   

  	

   

  
	

  Covered by Section 3(d) Representation:

  	

   

  	

  Yes

  

 

(c)Such other document as the other party may

reasonably request in connection with each Transaction.

 

	

  Party required to deliver:

  	

   

  	

  Party A and Party B

  
	

   

  	

   

  	

   

  
	

  Date by which to be delivered:

  	

   

  	

  Promptly upon request

  
	

   

  	

   

  	

   

  
	

  Covered by Section 3(d) Representation:

  	

   

  	

  Yes

  

 

(d)Such other written information respecting the

condition or operations, financial or otherwise, as the other party A may

reasonably request from time to time.

 

	

  Party required to deliver:

  	

   

  	

  Party A and Party B

  
	

   

  	

   

  	

   

  
	

  Date by which to be delivered:

  	

   

  	

  Promptly upon request

  
	

   

  	

   

  	

   

  
	

  Covered by Section 3(d) Representation:

  	

   

  	

  Yes

  

 

Part

4

Termination Provisions

 

1.           Cross Default.  The “Cross Default” provisions of Section

5(a)(vi) of this Agreement shall apply to each of Party A and Party B.

 

2.           Credit Event Upon Merger.  The “Credit Event Upon Merger” provisions of

Section 5(b)(iv) of this Agreement shall apply to each of Party A and Party B.

 

3.  Automatic Early Termination.  The “Automatic Early Termination” provision

of Section 6(a) of this Agreement shall not apply to either Party A or Party B.

 

4.           Payments on Early Termination.  For purposes of Section 6(e) of this

Agreement, Second Method and Loss shall apply.

 

5.  Additional Termination Event shall not

apply.

 

Part 5

Miscellaneous

 

1.           Notices.  For purposes of Section 12 of this

Agreement:

 

(a)                The

address for notice or communication to Party A is:

 

SunTrust Equitable Securities Corporation

Financial Risk Management, Operations

303 Peachtree Street, N.E.

23rd Floor, Center Code 3913

Atlanta, GA 

30308

404-575-2696 (phone)

404-532-0514 (fax)

 

(b)                The

address for notice or communication to Party B is:

 

Mr. Barry Edwards

Chief Financial Officer

F.Y.I., Incorporated

3232 McKinney Ave.

Suite 900

Dallas, TX 

75204

214-953-7690 (phone)

214-953-7556 (fax)

 

2.  Governing Law.  Section 13(a) of this Agreement is hereby

restated as follows:

 

“(a) Governing Law.  This Agreement will be governed by and construed in accordance

with the laws of the State of New York without reference to choice of law

doctrine.”

 

3.  Jurisdiction.  Section 13(b)(i) of this Agreement is hereby restated as follows:

 

“(i) submits to the nonexclusive jurisdiction

of the courts of the State of Georgia and the United States District Court located

in Atlanta, Georgia; and”

4.           Process

Agent.  Process Agent shall not

apply to this Agreement.

 

5.           Offices.  The provisions of Section 10(a) of this

Agreement shall not apply to either party.

 

6.  Multibranch Party.  For purposes of Section 10(c) of this

Agreement, neither Party A nor Party B is a Multibranch Party.

 

7.           Credit

Support Provider.

 

Credit Support Provider means in relation to Party A:  Not applicable.

Credit Support Provider means in relation to Party

B:  Not applicable.

 

8.           Credit Support Document.

 

Credit Support Document means in relation to

Party A:  Not applicable.

Credit Support

Document means in relation to Party B: 

Any guaranty, letter of credit, credit agreement, security agreement,

mortgage, deed of trust, pledge agreement, assignment agreement, investment

agreement, surety bond, or other credit enhancement device, or any combination

thereof issued as security for the timely performance of Party B’s obligations

under this Agreement, as may be acceptable to Party A, including, without

limitation, any amendments, supplements, restatements, or other modifications,

or any substitutions or replacements thereto in form and substance satisfactory

to Party A.

 

Part 6

Additional Agreements

 

1.                Recording of Conversations.  Each party (i) consents to the monitoring or

recording, at any time and from time to time, by the other party of any and all

communications between officers or employees of the parties, (ii) waives any

further notice of such monitoring or recording, and (iii) agrees to notify

(and, if required by law, obtain the consent of) its officers and employees

with respect to such monitoring or recording.

 

2.           Jury Trial.  Each party hereby waives, to the fullest

extent lawful, its respective right to jury trial with respect to any legal

proceeding arising under, or in connection with, this Agreement or any

Confirmation.

 

3.  Mediation and Arbitration.  Notwithstanding anything to the contrary

contained herein, the parties agree to submit to mediation and, should

settlement through mediation not occur, to arbitration any and all claims,

disputes, and controversies between them (and their respective employees,

officers, directors, affiliates, attorneys, and other agents) resulting from or

arising out of this Agreement.  Such

mediation and arbitration shall proceed in the jurisdiction where Party A is

located, shall be governed by the law specified in this Agreement, and shall be

conducted (a) in accordance with such rules as may be agreed upon by the

parties or (b) in the event the parties do not reach an agreement as to such

rules within thirty (30) days after a notice of dispute, in accordance with the

Commercial Mediation Rules and Commercial Arbitration Rules of the American

Arbitration Association.  If, within

thirty (30) days after service of a written demand for mediation, the mediation

does not result in settlement of the dispute, then any party may demand

arbitration, and the decision of the arbitrator(s) shall be binding on the

parties.  Judgment upon the award

rendered by the arbitrator(s) may be entered in any court having

jurisdiction.  It is agreed that the

arbitrators shall have no authority to award treble, exemplary, or punitive

damages of any type under any circumstances, whether or not such damages may be

available under state or federal law, or under the Federal Arbitration Act, or

under the Commercial Arbitration Rules of the American Arbitration Association,

the parties hereby waiving their right, if any, to recover any such damages.

 

4.             Set

Off.  Section 6 of the Agreement is

amended by adding the following new subsection 6(f):

“(f)  Right

of Set-Off. 

Upon the occurrence of an Event of Default with respect to Party B, or

an Illegality or Credit Event Upon Merger where Party B is the Affected Party,

Party A will have the right (but not the obligation), without prior notice to

Party B or any other person, to set-off any obligation of Party A or any of

Party A’s present or future Affiliates, branches, or offices owing to Party B,

against any obligation of Party B owing to Party A or any of Party A’s present

or future Affiliates, branches, or offices (whether or not such obligations

arise under this Agreement, whether or not matured, whether or not contingent,

and regardless of the place of payment or booking office of the obligations).  In order to enable Party A to exercise its

rights of set-off, if an obligation is unascertained, Party A may in good faith

estimate that obligation and set-off in respect of the estimate, subject to Party

A accounting to Party B when the obligation is ascertained.

 

Nothing in this Section 6(f) shall be

effective to create a charge or other security interest. 

This Section 6(f) shall be without prejudice and in addition to any right of

set-off, 

combination of accounts, lien, or other right to which any party is at any time

otherwise entitled 

(whether by operation of law, contract, or otherwise).”

 

5.           By signing this Schedule, Party B

acknowledges that it has received and understands the SunTrust Bank “Terms of

Dealing for OTC Risk Management Transactions” and the “Risk Disclosure

Statement for OTC Risk Management Transactions” (each attached hereto and

incorporated by reference into this Agreement).

 

Please confirm your agreement to the terms of

the foregoing Schedule by signing below.

 

SUNTRUST BANK                                                                                    F.Y.I.,

INCORPORATED

 

	

  By: 

  	

  /s/ Fred D. Woolf

  	

   

  	

  By: 

  	

  /s/ Barry Edwards

  	

   

  
	

  Name:   

  Fred D. Woolf

  	

   

  	

   

  	

  Name:   

  Barry Edwards

  	

   

  
	

  Title:     

  Vice President

  	

   

  	

   

  	

  Title:     

  Executive Vice President and

  	

   

  
	

   

  	

   

  	

   

  	

                 Chief Financial Officer

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
							

 

SunTrust Bank

(“SunTrust”)

Terms of Dealing for

OTC Risk Management Transactions

 

 

In connection with the negotiation, entry

into, and performance from time to time of over-the-counter (“OTC”) risk

management transactions, please be advised that:

 

SunTrust acts as principal only and does not

act as advisor, agent, broker, or fiduciary for or with respect to any

counterparty (unless otherwise expressly agreed in a written engagement

letter).

 

SunTrust expects that its counterparties have

the authority and capacity to enter into and perform their obligations under

their OTC risk management transactions with SunTrust, and SunTrust relies on

the express and implied representations of its counterparties with respect

thereto.

 

SunTrust expects that its counterparties

possess adequate knowledge and experience to assess independently, or with the

assistance of their own advisors, the merits and risks of each OTC risk

management transaction that the counterparty may from time to time enter into,

amend, or terminate.

 

SunTrust endeavors to maintain the

confidentiality of all confidential counterparty information and expects its

counterparties to do the same.  Unless a

counterparty gives SunTrust written notice to the contrary, each counterparty

authorizes SunTrust and all SunTrust affiliates, including SunTrust Equitable

Securities Corporation (STES), to share with each other confidential

information concerning a counterparty and/or its accounts for marketing or

other purposes from time to time.   Any

trade ideas, term sheets, and other similar documents sent to counterparties by

SunTrust are not to be shared with others.

 

SunTrust may pay fees, commissions, and other

amounts to agents, brokers, and/or other third parties in connection with OTC

risk management transactions entered into with counterparties.  SunTrust considers the amount of such fees,

commissions, and other amounts to be confidential and does not disclose the

same to its counterparties.

 

SunTrust may from time to time receive orders

for similar or identical transactions, and SunTrust makes no representation

with respect to execution priorities.

 

STES’s Authorized Officers have the authority

to bind SunTrust in connection with OTC risk management transactions.  A current list of Authorized Officers may be

obtained from STES upon request.

 

OTC risk management obligations of SunTrust

are not FDIC insured.

 

SunTrust Bank

(“SunTrust”)

Risk Disclosure

Statement for OTC Risk management Transactions

 

Over-the-counter (“OTC”) risk management

transactions, like other financial transactions, involve a variety of

significant potential risks.  OTC risk

management transactions generally include options, forwards, swaps, swaptions,

caps, floors, collars, combination and variations of such instruments, and

other executory contractual arrangements, and may involve interest rates,

currencies, securities, commodities, equities, credit, indices, and other

underlying interests.

 

Before entering into any OTC risk management

transaction, you should carefully consider whether the transaction is

appropriate for you in light of your experience, objectives, financial and

operational resources, and other relevant circumstances.  You should also ensure that you fully

understand the nature of the transaction and contractual relationship into

which you are entering and the nature and extent of your exposure to risk of

loss, which may significantly exceed the amount of any initial payment or

investment by you.

 

The specific risks presented by a particular

OTC risk management transaction necessarily depend upon the character of the

specific transaction and your circumstances. 

In general, however, all OTC risk management transactions involve the

risk of adverse or unanticipated market developments, risk of illiquidity and

credit risk, and may involve other material risks.  Equity risk management transactions may increase or decrease in

value with a change in, among other things, stock prices and interest rates

which could result in unlimited loss. 

In addition, you may be subject to internal operational risks in the

event that appropriate internal systems and controls are not in place to

monitor the various risks and funding requirements to which you are subject by

virtue of your activities in the OTC risk management and related markets.  OTC risk management transactions frequently

are tailored to permit parties to customize transactions to accomplish complex

financial and risk management objectives. 

Such customization can also introduce significant risk factors of a

complex character.

 

As in any financial transaction, you must

understand the requirements (including investment restrictions), if any,

applicable to you that are established by your regulators or by your Board of

Directors or other governing body.  You

should also consider the tax and accounting implications of entering into any

risk management or other transaction. 

To the extent appropriate in light of the specific transaction and your

circumstances, you should consider consulting such advisers as may be

appropriate to assist you in understanding the risks involved.  If you are acting in the capacity of

financial adviser or agent, you must evaluate the foregoing matters in light of

the circumstances applicable to your principal.

 

In entering into any OTC risk management

transaction, you should also take into consideration that, unless you and

SunTrust have established in writing an express financial advisory or other

fiduciary relationship or you and SunTrust have expressly agreed in writing

that you will be relying on SunTrust’s recommendations as the primary basis for

making your trading or investment decisions, SunTrust is acting solely in the

capacity of an arm’s-length contractual counterparty and not in the capacity of

your financial advisor or fiduciary.  In

addition, SunTrust or its affiliates may from time to time have substantial

long or short positions in and may make a market in or otherwise buy or sell

instruments identical or economically related to the OTC risk management

transaction entered into with you or may have an investment banking or other

commercial relationship with the issuer of any security or financial instrument

underlying an OTC risk management transaction entered into with you.

 

THIS BRIEF STATEMENT DOES NOT DISCLOSE ALL OF THE RISKS AND OTHER

SIGNIFICANT ASPECTS OF ENTERING INTO OTC RISK MANAGEMENT TRANSACTIONS.  YOU SHOULD REFRAIN FROM ENTERING INTO ANY

SUCH TRANSACTION UNLESS YOU FULLY UNDERSTAND ALL SUCH RISK AND HAVE

INDEPENDENTLY DETERMINED THAT THE TRANSACTION IS APPROPRIATE FOR YOU.Prepared by MERRILL CORPORATION

SunTrust Equitable Securities Corporation

303 Peachtree Street, N.E., 23rd Floor,

Center Code 3913

Atlanta, Georgia  30308

Member NASD and SIPC

	

   

  

 

	

   

  	

  December 21, 2000

  

 

Confirmation of Interest Rate Transaction

 

THIS LETTER

AGREEMENT SHOULD BE REVIEWED, EXECUTED BY AN AUTHORIZED PERSON(S), AND RETURNED

IMMEDIATELY VIA FAX TO 404-532-0514.

(Please direct

any questions to Ken Kuykendall at 404-532-0303.)

 

Barry

Edwards

Chief

Financial Officer

F.Y.I.,

Incorporated

3232

McKinney Ave.

Suite

900

Dallas,

Texas  75204

Ph#:        214-953-7690

Fax#:

      214-953-7556

 

REF:        11674/13660

 

Dear

Mr. Edwards:

 

The

purpose of this letter agreement is to set forth the terms and conditions of

the Rate Transaction entered into between F.Y.I., Incorporated (“Counterparty”

or “you”) and SunTrust Bank (“SunTrust” or “us”) on the Trade Date specified

below (the “Transaction”).  SunTrust

Equitable Securities Corporation acts as agent on behalf of SunTrust with

respect to this Transaction.  This

letter agreement constitutes a “Confirmation” as referred to in the ISDA Master

Agreement to be entered into by the parties hereto.

 

The

definitions and provisions contained in the 1991 ISDA Definitions published by

the International Swap and Derivatives Association, Inc. (“ISDA”), as amended

and supplemented by the 1998 Supplement to the 1991 ISDA Definitions (the

“Definitions”), are incorporated by reference into this Confirmation.  In the event of any inconsistency between

the Definitions and this Confirmation, this Confirmation shall govern.

 

This

Confirmation supplements, forms a part of, and is subject to the ISDA Master

Agreement, as amended and supplemented from time to time (the “Swap

Agreement”), between you and us.  All

provisions contained or incorporated by reference in the Swap Agreement shall

govern this Confirmation except as expressly modified below.  Prior to the execution and delivery of such

Swap Agreement, this Confirmation alone shall constitute a complete and binding

agreement with respect to the Transaction.

 

Each

party is hereby advised, and each such party acknowledges, that the other party

has engaged in (or refrained from engaging in) substantial financial

transactions and has taken other material actions in reliance upon the parties’

entry in the Transaction to which this Confirmation relates on the terms and

conditions set forth below.

 

This Confirmation shall be

governed by and construed in accordance with the laws of the State of New York

without reference to choice of law doctrine.

 

	

  1.

  	

  The

  terms of the particular Transaction to which this Confirmation relates are as

  follows:

  
	

   

  	

   

  	

   

  
	

  Type of Transaction:

  	

   

  	

  Swap

  Transaction

  
	

   

  	

   

  	

   

  
	

  Notional Amount:

  	

   

  	

  $50,000,000.00

  
	

   

  	

   

  	

   

  
	

  Trade Date:

  	

   

  	

  December

  20, 2000

  
	

   

  	

   

  	

   

  
	

  Effective Date:

  	

   

  	

  December

  22, 2000

  
	

   

  	

   

  	

   

  
	

  Termination Date:

  	

   

  	

  March

  31, 2003, with adjustment in accordance with the Modified Following Business

  Day Convention

  
	

   

  	

   

  	

   

  
	

  Fixed

  Amounts:

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

  Fixed Rate Payer:

  	

   

  	

  Counterparty

  
	

   

  	

   

  	

   

  
	

  Fixed Rate Payer Payment

  Dates:

  	

   

  	

  The

  last day of each month, beginning January 31, 2001, through and including the

  Termination Date, subject to adjustment in accordance with the Modified

  Following Business Day Convention

  
	

  Fixed Rate:

  	

   

  	

  5.775%

  per annum

  
	

   

  	

   

  	

   

  
	

  Fixed Rate Day Count

  Fraction:

  	

   

  	

  Actual/360

  
	

   

  	

   

  	

   

  
	

  Adjustment to Period End

  Dates:

  	

   

  	

  Applicable

  
	

   

  	

   

  	

   

  
	

  Floating

  Amounts:

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

  Floating Rate Payer:

  	

   

  	

  SunTrust

  
	

   

  	

   

  	

   

  
	

  Floating Rate Payer

  Payment Dates:

  	

   

  	

  The

  last day of each month, beginning January 31, 2000, through and including the

  Termination Date, subject to adjustment in accordance with the Modified Following

  Business Day Convention

  
	

   

  	

   

  	

   

  
	

  Floating Rate for initial

  Calculation Period:

  	

   

  	

  6.66375%

  
	

   

  	

   

  	

   

  
	

  Floating Rate Day Count

  Fraction:

  	

   

  	

  Actual/360

  
	

   

  	

   

  	

   

  
	

  Designated Maturity:

  	

   

  	

  1

  month 

  
	

   

  	

   

  	

   

  
	

  Floating Rate Option:

  	

   

  	

  USD-LIBOR-BBA

  
	

   

  	

   

  	

   

  
	

  Spread:

  	

   

  	

  Inapplicable

  
	

   

  	

   

  	

   

  
	

  Adjustment to Period End

  Dates:

  	

   

  	

  Applicable

  
	

   

  	

   

  	

   

  
	

  Reset Dates:

  	

   

  	

  The

  first day of each Floating Rate Payer Calculation Period

  
	

   

  	

   

  	

   

  
	

  Calculation Agent:

  	

   

  	

  SunTrust

  
	

   

  	

   

  	

   

  
	

  Business Days:

  	

   

  	

  New

  York

  
				

 

 

2.             Other Provisions

 

(a)           You

agree to provide us (i) Corporate Resolutions, and (ii) a Certificate of

Incumbency with respect to the individual(s) executing this Confirmation, both

documents evidencing your authority to enter into this Transaction.  This Provision (2)(a) shall constitute an

additional Agreement for the purpose of Section 4 of the Swap Agreement.

 

(b)          By

signing this Confirmation, you acknowledge that you have received and

understand the SunTrust Bank “Terms of Dealing for OTC Risk Management

Transactions” and the “Risk Disclosure Statement for OTC Risk Management

Transactions” (each attached hereto and incorporated by reference into this

Confirmation).

 

(c)           “Loan

Agreement” shall mean each agreement, related by its terms to this Transaction,

to which you (as borrower) and SunTrust (or one of its Affiliates) are or

hereafter become parties (and to which other lenders may be parties) involving

the making of loans, extensions of credit or financial accommodations

thereunder or commitments therefor, in the form existing on the date when that

agreement is executed and without regard to any termination or cancellation

thereof, whether by reason of payment of all indebtedness incurred thereunder

or otherwise, as such Loan Agreement may be amended, supplemented, otherwise

modified, replaced, or substituted.

 

3.             Account Details

 

Payment to Counterparty:

 

Depository: Bank One, Chicago

ABA # 071000013

Favor of: F.Y.I. Incorporated

Account # 10-50780

 

Payments to SunTrust:

 

SunTrust Bank

ABA # 061000104

FBO:  Bond Wire Clearing

Account # 9088-0000-95

Attn: Financial Risk Management,

Operations

 

4.             Offices

 

(a)           The

Office of Counterparty for the Transaction is its Dallas office; and

 

(b)          The

Office of SunTrust for the Transaction is its Atlanta office.

 

By signing below, you also

acknowledge and agree that we have explained to you the risks involved in this

Transaction, which risks include but are not limited to the following:

 

•               Market Risk: 

The risk that the Transaction may increase or decrease in value with a

change in, among other things, interest rates or the yield curve; and

 

•               Liquidity Risk: 

The risk that the Transaction cannot be closed out or disposed of

quickly at or near its value.

 

You further acknowledge and agree

that you understand these risks and the Transaction as a whole, that you are

capable of managing the risks associated with this Transaction, that the risks

involved in this Transaction are consistent with your financial goals, policies

and procedures, and risk tolerance, and that you have determined that this

Transaction is appropriate for you.

 

Please

confirm that the foregoing correctly sets forth the terms of our agreement by

signing this copy of this Confirmation and immediately returning it to SunTrust

Equitable Securities Corporation via fax at the number indicated on Page 1.

 

	

  Very

  truly yours,

  	

   

  	

  Accepted

  and Confirmed as of the date first written:

  
	

   

  	

   

  	

   

  
	

  SUNTRUST BANK

  	

   

  	

  F.Y.I., INCORPORATED

  
	

   

  	

   

  	

   

  
	

  By:

  	

  /s/  Fred D. Woolf

  	

   

  	

   

  	

  By:

  	

  /s/  Barry Edwards

  
	

   

  	

  Fred D. Woolf

  	

   

  	

  Name:

  	

  Barry

  Edwards

  
	

   

  	

  Vice President

  	

   

  	

  Title:

  	

  Executive

  Vice President and

  
	

   

  	

   

  	

   

  	

  Chief

  Financial Officer

  
							

 

SunTrust Bank (“SunTrust”)

Terms of Dealing for OTC Risk

Management Transactions

 

In connection with the

negotiation, entry into, and performance from time to time of over-the-counter

(“OTC”) risk management transactions, please be advised that:

 

SunTrust acts as principal

only and does not act as advisor, agent, broker, or fiduciary for or with

respect to any counterparty (unless otherwise expressly agreed in a written

engagement letter).

 

SunTrust expects that its

counterparties have the authority and capacity to enter into and perform their

obligations under their OTC risk management transactions with SunTrust, and

SunTrust relies on the express and implied representations of its

counterparties with respect thereto.

 

SunTrust expects that its counterparties

possess adequate knowledge and experience to assess independently, or with the

assistance of their own advisors, the merits and risks of each OTC risk

management transaction that the counterparty may from time to time enter into,

amend, or terminate.

 

SunTrust endeavors to

maintain the confidentiality of all confidential counterparty information and

expects its counterparties to do the same. 

Unless a counterparty gives SunTrust written notice to the contrary, each

counterparty authorizes SunTrust and all SunTrust affiliates, including

SunTrust Equitable Securities Corporation (STES), to share with each other

confidential information concerning a counterparty and/or its accounts for

marketing or other purposes from time to time.   Any trade ideas, term sheets, and other similar documents sent

to counterparties by SunTrust are not to be shared with others.

 

SunTrust may pay fees,

commissions, and other amounts to agents, brokers, and/or other third parties

in connection with OTC risk management transactions entered into with

counterparties.  SunTrust considers the

amount of such fees, commissions, and other amounts to be confidential and does

not disclose the same to its counterparties.

 

SunTrust may from time to

time receive orders for similar or identical transactions, and SunTrust makes

no representation with respect to execution priorities.

 

STES’s Authorized Officers

have the authority to bind SunTrust in connection with OTC risk management

transactions.  A current list of

Authorized Officers may be obtained from STES upon request.

 

OTC risk management

obligations of SunTrust are not FDIC insured.

 

SunTrust Bank (“SunTrust”)

Risk Disclosure Statement for OTC

Risk management Transactions

 

Over-the-counter (“OTC”)

risk management transactions, like other financial transactions, involve a

variety of significant potential risks. 

OTC risk management transactions generally include options, forwards,

swaps, swaptions, caps, floors, collars, combination and variations of such

instruments, and other executory contractual arrangements, and may involve

interest rates, currencies, securities, commodities, equities, credit, indices,

and other underlying interests.

 

Before entering into any OTC

risk management transaction, you should carefully consider whether the

transaction is appropriate for you in light of your experience, objectives,

financial and operational resources, and other relevant circumstances.  You should also ensure that you fully

understand the nature of the transaction and contractual relationship into

which you are entering and the nature and extent of your exposure to risk of

loss, which may significantly exceed the amount of any initial payment or

investment by you.

 

The specific risks presented

by a particular OTC risk management transaction necessarily depend upon the

character of the specific transaction and your circumstances.  In general, however, all OTC risk management

transactions involve the risk of adverse or unanticipated market developments,

risk of illiquidity and credit risk, and may involve other material risks.  Equity risk management transactions may

increase or decrease in value with a change in, among other things, stock

prices and interest rates which could result in unlimited loss.  In addition, you may be subject to internal

operational risks in the event that appropriate internal systems and controls

are not in place to monitor the various risks and funding requirements to which

you are subject by virtue of your activities in the OTC risk management and

related markets.  OTC risk management

transactions frequently are tailored to permit parties to customize

transactions to accomplish complex financial and risk management

objectives.  Such customization can also

introduce significant risk factors of a complex character.

 

As in any financial

transaction, you must understand the requirements (including investment

restrictions), if any, applicable to you that are established by your

regulators or by your Board of Directors or other governing body.  You should also consider the tax and

accounting implications of entering into any risk management or other

transaction.  To the extent appropriate

in light of the specific transaction and your circumstances, you should

consider consulting such advisers as may be appropriate to assist you in

understanding the risks involved.  If

you are acting in the capacity of financial adviser or agent, you must evaluate

the foregoing matters in light of the circumstances applicable to your

principal.

 

In entering into any OTC

risk management transaction, you should also take into consideration that,

unless you and SunTrust have established in writing an express financial

advisory or other fiduciary relationship or you and SunTrust have expressly

agreed in writing that you will be relying on SunTrust’s recommendations as the

primary basis for making your trading or investment decisions, SunTrust is

acting solely in the capacity of an arm’s-length contractual counterparty and

not in the capacity of your financial advisor or fiduciary.  In addition, SunTrust or its affiliates may

from time to time have substantial long or short positions in and may make a

market in or otherwise buy or sell instruments identical or economically

related to the OTC risk management transaction entered into with you or may have

an investment banking or other commercial relationship with the issuer of any

security or financial instrument underlying an OTC risk management transaction

entered into with you.

 

THIS BRIEF STATEMENT DOES NOT DISCLOSE ALL OF THE RISKS AND OTHER SIGNIFICANT

ASPECTS OF ENTERING INTO OTC RISK MANAGEMENT TRANSACTIONS.  YOU SHOULD REFRAIN FROM ENTERING INTO ANY

SUCH TRANSACTION UNLESS YOU FULLY UNDERSTAND ALL SUCH RISK AND HAVE

INDEPENDENTLY DETERMINED THAT THE TRANSACTION IS APPROPRIATE FOR YOU.

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