Document:

exhibit101.htm

 

Exhibit 10.1

EXECUTIVE

 

FORM OF AMENDMENT TO

CHANGE OF CONTROL EXECUTIVE SEVERANCE AGREEMENT

 

This Amendment (the “Amendment“) to the Change of Control Executive Severance Agreement (the “Agreement”) dated the _______ day of __________________, _______, by and between SM Energy Company (f/k/a St. Mary Land & Exploration Company), a Delaware corporation (the “Company”), and [an executive referred to on Attachment A] (the “Executive”), is executed by the Company and the Executive on this _____ day of December, 2010.

 

RECITALS

 

A.           The Company and the Executive desire to amend certain provisions of the Agreement in order to conform such provisions to the provisions of Section 409A of the Internal Revenue Code and related guidance published by the Internal Revenue Service through the date of this Amendment; and

 

B.           All capitalized terms used but not defined in this Amendment shall have the meanings given to them in the Agreement.

 

NOW, THEREFORE, in consideration of the Executive’s continued employment with the Company and the mutual agreements set forth herein, the parties agree as follows:

 

AGREEMENT

 

Section 1. Amendments to Agreement.

 

(a)           Section 1.(a) shall be amended by deleting, “(ii) any compensation previously deferred by the Executive (together with any accrued interest or earnings thereon),” and by renumbering clauses (iii), (iv) and (v) as (ii), (iii) and (iv), respectively.

 

(b)           Section 3(d) is amended in its entirety to read as follows:

 

Section 409A of the Code.  This Agreement is intended in all respects to comply with the provisions of Section 409A of the Code and in particular, those provisions of Section 409A dealing with distributions.  This Agreement shall be interpreted and applied in a manner consistent with Section 409A of the Code and any ambiguity shall be resolved in favor of compliance with Section 409A of the Code.  In the event any payments or benefits pursuant to the other provisions of this Agreement would result in the imposition on the Executive of any additional taxes or interest pursuant to the provisions of Section 409A of the Code and final Treasury Regulations, Internal Revenue Service guidance or other provisions of law, the amount of such payments shall be appropriately and equitably adjusted in order that the Executive may receive the same economic benefits as provided under this Agreement and in compliance with Section 409A of the Code and without the imposition on the Executive of any additional taxes and interest thereunder.  Any payments to the Executive under this Agreement which Section 409A(a)(2)(B)(i) of the Code indicates may not be made before the date which is six months after the date of Executive’s separation from employment service (the “Section 409A Six-Month Waiting Period”) shall not be made during the Section 409A Six-Month Waiting Period but rather shall be delayed and shall be paid upon the expiration of the Section 409A Six-Month Waiting Period.  In particular, with respect to severance payments provided for under Section 3(a)(ii) of this Agreement, such severance payments that would otherwise be paid during the Section 409A Six-Month Waiting Period shall be paid in lump sum upon the expiration of the Section 409A Six-Month Waiting Period, together with simple interest on the amount of each deferred payment at the short term applicable federal rate as of the date of termination of employment.  For purposes of this Agreement, “termination of employment,” “separation from service” or similar language means separation from service by the Executive from the Company for any reason whatsoever within the meaning of Code Section 409A and Treasury Regulation § 1.409A-1(h).

 

Section 2. Incorporation of Amendment and Remainder of Agreement.  The terms and provisions of Section 1 of this Amendment are hereby incorporated into the Agreement and, except for the amendment provisions herein contained, all of the terms and provisions of the Agreement shall remain in full force and effect, unaltered and unchanged by this Amendment.  To the extent that the terms and provisions of this Amendment conflict with the terms and provisions of the Agreement, the terms and provisions of this Amendment shall control.

 

Section 3. Execution in Counterparts and Delivery of Signature Pages.  This Amendment may be executed in counterparts and signature pages may be delivered by email or facsimile transmission.

 

IN WITNESS WHEREOF, this Amendment to the Change of Control Executive Severance Agreement is hereby duly executed by each party on this ______ day of December, 2010.

 

THE COMPANY:

SM ENERGY COMPANY,

a Delaware corporation

By: _______________________________________

Anthony J. Best, Chief Executive Officer and President

EXECUTIVE:

___________________________________________

Printed name:________________________________

 

  

  

 

  

 

EXECUTIVE

ATTACHMENT A

TO

FORM OF AMENDMENT TO

CHANGE OF CONTROL EXECUTIVE SEVERANCE AGREEMENT

Executives with Change of Control Executive Severance Agreements:

All employees of SM Energy Company who have an officer title of Vice President or an officer title which is senior to a Vice President.exhibit102.htm

Exhibit 10.2

 

FORM OF AMENDMENT TO

EMPLOYMENT AGREEMENT

 

This Amendment to Employment Agreement is entered into this ____ day of December, 2010 between SM Energy Company (f/k/a St. Mary Land & Exploration Company), a Delaware corporation (“SM Energy”), and A. J. “Tony” Best (“Best”).  It amends the Employment Agreement between SM Energy and Best dated May 1, 2006.

 

1. Amendment to Agreement.  The last sentence of Section 10 is hereby deleted and replaced with the following two sentences:

 

In particular, with respect to the severance payments provided for under Section 9 of this Agreement, such severance payments that would otherwise be made during the Section 409A Six-Month Waiting Period shall be paid in one lump sum upon the expiration of the Section 409A Six-Month Waiting Period, together with simple interest on the amount of each deferred payment at the short term applicable federal rate as of the date of the separation of Best from employment.  For purposes of this Agreement, “termination of employment,” “separation from service” or similar language means separation from service by Best from SM Energy for any reason whatsoever within the meaning of Code Section 409A and Treasury Regulation § 1.409A-1(h).

 

2. Incorporation of Amendment and Remainder of Agreement.  The terms and provisions of Section 1 of this Amendment are hereby incorporated into the Agreement and, except for the amendment provisions herein contained, all of the terms and provisions of the Agreement shall remain in full force and effect, unaltered and unchanged by this Amendment.  To the extent that the terms and provisions of this Amendment conflict with the terms and provisions of the Agreement, the terms and provisions of this Amendment shall control.

 

3. Execution in Counterparts and Delivery of Signature Pages.  This Amendment may be executed in counterparts and signature pages may be delivered by email or facsimile transmission.

 

IN WITNESS WHEREOF, this Amendment to the Employment Agreement is hereby duly executed by each party on this ______ day of December, 2010.

 

AGREED:

SM ENERGY COMPANY,

a Delaware corporation

By:                                                                           

John R. Monark, Vice President-Human Resources

By:                                                                          

A. J. “Tony” BestExhibit 10.1

EXECUTION VERSION 

Published CUSIP Number: 85230DAL8

MULTI-YEAR 

$1,500,000,000 

CREDIT AGREEMENT

Dated as of December 22, 2010 

among

 

ST. JUDE MEDICAL, INC., 
as the Borrower,

BANK OF AMERICA, N.A., 
as Administrative Agent, L/C Issuer and Lender,

THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.

and

WELLS FARGO BANK, N. A., 

as Co-Syndication Agents 

U.S. BANK NATIONAL ASSOCIATION 
and 

THE ROYAL BANK OF SCOTLAND, PLC, 

as Co-Documentation Agents 

and 

The Other Lenders Party Hereto

MERRILL LYNCH, PIERCE, FENNER & SMITH
INCORPORATED, 

WELLS FARGO SECURITIES, LLC, 
and

THE BANK OF TOKYO-MITSUBISHI UFJ, LTD., 

as
Joint Lead Arrangers and Joint Book Managers 

 

TABLE OF CONTENTS

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Section

 	
  

 	
  

 	
  

 	
 Page

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE I.

 	
 DEFINITIONS AND ACCOUNTING TERMS

 	
  

 	
 1

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 1.01

 	
  

 	
 Defined
 Terms

 	
  

 	
 1

 	
  

 
	
  

 	
 1.02

 	
  

 	
 Other
 Interpretive Provisions

 	
  

 	
 20

 	
  

 
	
  

 	
 1.03

 	
  

 	
 Accounting
 Terms

 	
  

 	
 21

 	
  

 
	
  

 	
 1.04

 	
  

 	
 Rounding

 	
  

 	
 21

 	
  

 
	
  

 	
 1.05

 	
  

 	
 References
 to Agreements and Laws

 	
  

 	
 21

 	
  

 
	
  

 	
 1.06

 	
  

 	
 Times of Day

 	
  

 	
 22

 	
  

 
	
  

 	
 1.07

 	
  

 	
 Letter of
 Credit Amounts

 	
  

 	
 22

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE II.

 	
 THE COMMITMENTS AND CREDIT EXTENSIONS

 	
  

 	
 22

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 2.01

 	
  

 	
 Loans

 	
  

 	
 22

 	
  

 
	
  

 	
 2.02

 	
  

 	
 Borrowings,
 Conversions and Continuations of Loans

 	
  

 	
 22

 	
  

 
	
  

 	
 2.03

 	
  

 	
 Letters of
 Credit

 	
  

 	
 24

 	
  

 
	
  

 	
 2.04

 	
  

 	
 Prepayments

 	
  

 	
 31

 	
  

 
	
  

 	
 2.05

 	
  

 	
 Termination
 or Reduction of Commitments

 	
  

 	
 31

 	
  

 
	
  

 	
 2.06

 	
  

 	
 Repayment of
 Loans

 	
  

 	
 32

 	
  

 
	
  

 	
 2.07

 	
  

 	
 Interest

 	
  

 	
 32

 	
  

 
	
  

 	
 2.08

 	
  

 	
 Fees

 	
  

 	
 32

 	
  

 
	
  

 	
 2.09

 	
  

 	
 Computation
 of Interest and Fees

 	
  

 	
 33

 	
  

 
	
  

 	
 2.10

 	
  

 	
 Evidence of
 Debt

 	
  

 	
 33

 	
  

 
	
  

 	
 2.11

 	
  

 	
 Payments
 Generally

 	
  

 	
 34

 	
  

 
	
  

 	
 2.12

 	
  

 	
 Sharing of
 Payments

 	
  

 	
 35

 	
  

 
	
  

 	
 2.13

 	
  

 	
 Increase in
 Commitments

 	
  

 	
 36

 	
  

 
	
  

 	
 2.14

 	
  

 	
 Cash Collateral

 	
  

 	
 37

 	
  

 
	
  

 	
 2.15

 	
  

 	
 Defaulting
 Lenders

 	
  

 	
 38

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE III.

 	
 TAXES, YIELD PROTECTION AND ILLEGALITY

 	
  

 	
 40

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 3.01

 	
  

 	
 Taxes

 	
  

 	
 40

 	
  

 
	
  

 	
 3.02

 	
  

 	
 Illegality

 	
  

 	
 43

 	
  

 
	
  

 	
 3.03

 	
  

 	
 Inability to
 Determine Rates

 	
  

 	
 44

 	
  

 
	
  

 	
 3.04

 	
  

 	
 Increased
 Costs; Reserves on Eurodollar Rate Loans

 	
  

 	
 44

 	
  

 
	
  

 	
 3.05

 	
  

 	
 Compensation
 for Losses

 	
  

 	
 46

 	
  

 
	
  

 	
 3.06

 	
  

 	
 Mitigation
 Obligations; Replacement of Lenders

 	
  

 	
 47

 	
  

 
	
  

 	
 3.07

 	
  

 	
 Survival

 	
  

 	
 47

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE IV. 

 	
 CONDITIONS PRECEDENT TO CREDIT EXTENSIONS

 	
  

 	
 47

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 4.01

 	
  

 	
 Conditions
 of Initial Credit Extension

 	
  

 	
 47

 	
  

 
	
  

 	
 4.02

 	
  

 	
 Conditions
 to all Credit Extensions

 	
  

 	
 49

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE V.

 	
 REPRESENTATIONS AND WARRANTIES

 	
  

 	
 50

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 5.01

 	
  

 	
 Existence
 and Power

 	
  

 	
 50

 	
  

 
	
  

 	
 5.02

 	
  

 	
 Authorization;
 No Contravention

 	
  

 	
 50

 	
  

 
	
  

 	
 5.03

 	
  

 	
 Governmental
 Authorization

 	
  

 	
 50

 	
  

 

i

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 5.04

 	
  

 	
 Binding
 Effect

 	
  

 	
 50

 	
  

 
	
  

 	
 5.05

 	
  

 	
 Litigation

 	
  

 	
 51

 	
  

 
	
  

 	
 5.06

 	
  

 	
 No Default

 	
  

 	
 51

 	
  

 
	
  

 	
 5.07

 	
  

 	
 ERISA
 Compliance

 	
  

 	
 51

 	
  

 
	
  

 	
 5.08

 	
  

 	
 Use of
 Proceeds; Margin Regulations

 	
  

 	
 52

 	
  

 
	
  

 	
 5.09

 	
  

 	
 Title to
 Properties

 	
  

 	
 52

 	
  

 
	
  

 	
 5.10

 	
  

 	
 Taxes

 	
  

 	
 52

 	
  

 
	
  

 	
 5.11

 	
  

 	
 Financial
 Condition

 	
  

 	
 52

 	
  

 
	
  

 	
 5.12

 	
  

 	
 Environmental
 Matters

 	
  

 	
 53

 	
  

 
	
  

 	
 5.13

 	
  

 	
 Regulated
 Entities

 	
  

 	
 53

 	
  

 
	
  

 	
 5.14

 	
  

 	
 No
 Burdensome Restrictions

 	
  

 	
 53

 	
  

 
	
  

 	
 5.15

 	
  

 	
 Copyrights,
 Patents, Trademarks and Licenses, Etc

 	
  

 	
 53

 	
  

 
	
  

 	
 5.16

 	
  

 	
 Subsidiaries

 	
  

 	
 53

 	
  

 
	
  

 	
 5.17

 	
  

 	
 Insurance

 	
  

 	
 54

 	
  

 
	
  

 	
 5.18

 	
  

 	
 Full
 Disclosure

 	
  

 	
 54

 	
  

 
	
  

 	
 5.19

 	
  

 	
 Taxpayer
 Identification Number

 	
  

 	
 54

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE VI.

 	
 AFFIRMATIVE COVENANTS

 	
  

 	
 54

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 6.01

 	
  

 	
 Financial
 Statements

 	
  

 	
 54

 	
  

 
	
  

 	
 6.02

 	
  

 	
 Certificates;
 Other Information

 	
  

 	
 55

 	
  

 
	
  

 	
 6.03

 	
  

 	
 Notices

 	
  

 	
 56

 	
  

 
	
  

 	
 6.04

 	
  

 	
 Preservation
 of Corporate Existence, Etc

 	
  

 	
 57

 	
  

 
	
  

 	
 6.05

 	
  

 	
 Maintenance
 of Property

 	
  

 	
 58

 	
  

 
	
  

 	
 6.06

 	
  

 	
 Insurance

 	
  

 	
 58

 	
  

 
	
  

 	
 6.07

 	
  

 	
 Payment of
 Obligations

 	
  

 	
 58

 	
  

 
	
  

 	
 6.08

 	
  

 	
 Compliance
 with Laws

 	
  

 	
 58

 	
  

 
	
  

 	
 6.09

 	
  

 	
 Inspection
 of Property and Books and Records

 	
  

 	
 58

 	
  

 
	
  

 	
 6.10

 	
  

 	
 Environmental
 Laws

 	
  

 	
 59

 	
  

 
	
  

 	
 6.11

 	
  

 	
 Use of
 Proceeds

 	
  

 	
 59

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE VII.

 	
 NEGATIVE COVENANTS

 	
  

 	
 59

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 7.01

 	
  

 	
 Limitation
 on Liens

 	
  

 	
 59

 	
  

 
	
  

 	
 7.02

 	
  

 	
 Disposition
 of Assets

 	
  

 	
 61

 	
  

 
	
  

 	
 7.03

 	
  

 	
 Consolidations
 and Mergers

 	
  

 	
 61

 	
  

 
	
  

 	
 7.04

 	
  

 	
 Loans and
 Investments

 	
  

 	
 62

 	
  

 
	
  

 	
 7.05

 	
  

 	
 Limitation
 on Subsidiary Indebtedness

 	
  

 	
 63

 	
  

 
	
  

 	
 7.06

 	
  

 	
 Transactions
 with Affiliates

 	
  

 	
 64

 	
  

 
	
  

 	
 7.07

 	
  

 	
 Use of
 Proceeds; Regulation U

 	
  

 	
 64

 	
  

 
	
  

 	
 7.08

 	
  

 	
 Limitation
 on Subsidiary Dividends

 	
  

 	
 64

 	
  

 
	
  

 	
 7.09

 	
  

 	
 Joint
 Ventures

 	
  

 	
 64

 	
  

 
	
  

 	
 7.10

 	
  

 	
 Restricted
 Payments

 	
  

 	
 64

 	
  

 
	
  

 	
 7.11

 	
  

 	
 Change in
 Business

 	
  

 	
 65

 	
  

 
	
  

 	
 7.12

 	
  

 	
 Accounting
 Changes

 	
  

 	
 65

 	
  

 
	
  

 	
 7.13

 	
  

 	
 Consolidated
 Leverage Ratio

 	
  

 	
 65

 	
  

 

ii

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE
 VIII. 

 	
 EVENTS OF DEFAULT AND REMEDIES

 	
  

 	
 65

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.01

 	
  

 	
 Events of
 Default

 	
  

 	
 65

 	
  

 
	
  

 	
 8.02

 	
  

 	
 Remedies
 Upon Event of Default

 	
  

 	
 67

 	
  

 
	
  

 	
 8.03

 	
  

 	
 Application
 of Funds

 	
  

 	
 68

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE IX. 

 	
  

 	
 ADMINISTRATIVE AGENT

 	
  

 	
 69

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 9.01

 	
  

 	
 Appointment
 and Authority

 	
  

 	
 69

 	
  

 
	
  

 	
 9.02

 	
  

 	
 Rights as a
 Lender

 	
  

 	
 69

 	
  

 
	
  

 	
 9.03

 	
  

 	
 Exculpatory
 Provisions

 	
  

 	
 69

 	
  

 
	
  

 	
 9.04

 	
  

 	
 Reliance by
 Administrative Agent

 	
  

 	
 70

 	
  

 
	
  

 	
 9.05

 	
  

 	
 Delegation
 of Duties

 	
  

 	
 70

 	
  

 
	
  

 	
 9.06

 	
  

 	
 Resignation
 of Administrative Agent

 	
  

 	
 70

 	
  

 
	
  

 	
 9.07

 	
  

 	
 Non-Reliance
 on Administrative Agent and Other Lenders

 	
  

 	
 71

 	
  

 
	
  

 	
 9.08

 	
  

 	
 No Other
 Duties, Etc

 	
  

 	
 71

 	
  

 
	
  

 	
 9.09

 	
  

 	
 Administrative
 Agent May File Proofs of Claim

 	
  

 	
 72

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE X.

 	
  

 	
 MISCELLANEOUS

 	
  

 	
 72

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 10.01

 	
  

 	
 Amendments,
 Etc

 	
  

 	
 72

 	
  

 
	
  

 	
 10.02

 	
  

 	
 Notices;
 Effectiveness; Electronic Communication

 	
  

 	
 74

 	
  

 
	
  

 	
 10.03

 	
  

 	
 No Waiver;
 Cumulative Remedies

 	
  

 	
 75

 	
  

 
	
  

 	
 10.04

 	
  

 	
 Expenses;
 Indemnity; Damage Waiver

 	
  

 	
 76

 	
  

 
	
  

 	
 10.05

 	
  

 	
 Payments Set
 Aside

 	
  

 	
 78

 	
  

 
	
  

 	
 10.06

 	
  

 	
 Successors
 and Assigns

 	
  

 	
 78

 	
  

 
	
  

 	
 10.07

 	
  

 	
 Treatment of
 Certain Information; Confidentiality

 	
  

 	
 83

 	
  

 
	
  

 	
 10.08

 	
  

 	
 Set-off

 	
  

 	
 84

 	
  

 
	
  

 	
 10.09

 	
  

 	
 Interest
 Rate Limitation

 	
  

 	
 85

 	
  

 
	
  

 	
 10.10

 	
  

 	
 Counterparts

 	
  

 	
 85

 	
  

 
	
  

 	
 10.11

 	
  

 	
 Integration

 	
  

 	
 85

 	
  

 
	
  

 	
 10.12

 	
  

 	
 Survival of
 Representations and Warranties

 	
  

 	
 85

 	
  

 
	
  

 	
 10.13

 	
  

 	
 Severability

 	
  

 	
 85

 	
  

 
	
  

 	
 10.14

 	
  

 	
 Replacement
 of Lenders

 	
  

 	
 86

 	
  

 
	
  

 	
 10.15

 	
  

 	
 Governing
 Law

 	
  

 	
 87

 	
  

 
	
  

 	
 10.16

 	
  

 	
 Waiver of
 Right to Trial by Jury

 	
  

 	
 87

 	
  

 
	
  

 	
 10.17

 	
  

 	
 No Advisory
 or Fiduciary Responsibility

 	
  

 	
 88

 	
  

 
	
  

 	
 10.18

 	
  

 	
 USA PATRIOT
 Act Notice

 	
  

 	
 89

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SIGNATURES

 	
  

 	
  

 	
  

 	
 S-1

 

iii

SCHEDULES

	
  

 	
  

 	
  

 
	
  

 	
 1.01

 	
 Excluded
 Subsidiaries

 
	
  

 	
 2.01

 	
 Commitments
 and Pro Rata Shares

 
	
  

 	
 5.05

 	
 Litigation

 
	
  

 	
 5.07

 	
 ERISA
 Matters

 
	
  

 	
 5.10

 	
 Taxes

 
	
  

 	
 5.11

 	
 Material
 Indebtedness

 
	
  

 	
 5.12

 	
 Environmental
 Matters

 
	
  

 	
 5.16

 	
 Subsidiaries

 
	
  

 	
 6.06

 	
 Insurance
 Coverage

 
	
  

 	
 7.01

 	
 Existing
 Liens

 
	
  

 	
 7.04(a)

 	
 Investment
 Policy

 
	
  

 	
 7.05

 	
 Existing
 Indebtedness

 
	
  

 	
 10.02

 	
 Administrative
 Agent’s Office, Certain Addresses for Notices

 
	
  

 	
  

 	
  

 
	
 EXHIBITS

 	
  

 
	
  

 	
  

 
	
  

 	
  

 	
 Form of

 
	
  

 	
  

 	
  

 
	
  

 	
 A

 	
 Loan Notice

 
	
  

 	
 B

 	
 Note

 
	
  

 	
 C

 	
 Compliance
 Certificate

 
	
  

 	
 D

 	
 Assignment
 and Assumption Agreement

 
	
  

 	
 E

 	
 Opinions

 

iv

MULTI-YEAR $1,500,000,000 CREDIT AGREEMENT

          This MULTI-YEAR
$1,500,000,000 CREDIT AGREEMENT (the “Agreement”) is entered
into as of December 22, 2010, among ST. JUDE MEDICAL, INC.,
a Minnesota corporation (the “Borrower”), each lender from time
to time party hereto (collectively, the “Lenders” and individually, a “Lender”),
and BANK
OF AMERICA, N.A., as Administrative Agent, LC Issuer and Lender.

          The
Borrower has requested that the Lenders provide a multi-year revolving credit
facility, with a letter of credit subfacility, and the Lenders are willing to
do so on the terms and conditions set forth herein. In consideration of the
mutual covenants and agreements herein contained, the parties hereto covenant
and agree as follows:

ARTICLE I.

DEFINITIONS AND ACCOUNTING TERMS

          1.01     Defined
Terms. As used in this Agreement, the following terms
shall have the meanings set forth below:

          “Acquisition”
means any transaction or series of related transactions for the purpose of or resulting,
directly or indirectly, in (a) the acquisition of all or substantially all of
the assets of a Person, or of any business or division of a Person, (b) the
acquisition of in excess of 50% of the capital stock, partnership interests or
equity of any Person or otherwise causing any Person, to become a Subsidiary,
or (c) a merger or consolidation or any other combination with another Person
(other than a Person that is a Subsidiary) provided that the Borrower or
a Subsidiary is the surviving entity.

          “Administrative
Agent” means Bank of America in its capacity as administrative agent under
any of the Loan Documents, or any successor administrative agent.

          “Administrative
Agent’s Office” means the Administrative Agent’s address and, as appropriate,
account as set forth on Schedule 10.02, or such other address or account
as the Administrative Agent may from time to time notify the Borrower and the
Lenders.

          “Administrative
Questionnaire” means an Administrative Questionnaire in a form supplied by
the Administrative Agent.

          “Affiliate”
means, with respect to any Person, another Person that directly, or indirectly
through one or more intermediaries, Controls or is Controlled by or is under
common Control with the Person specified. “Control” means the
possession, directly or indirectly, of the power to direct or cause the
direction of the management or policies of a Person, whether through the
ability to exercise voting power, by contract or otherwise. “Controlling”
and “Controlled” have meanings correlative thereto. Without limiting the
generality of the foregoing, a Person shall be deemed to be Controlled by
another Person if such other Person possesses, directly or indirectly, power to
vote 20% or more of the securities having ordinary voting power for the
election of directors, managing general partners or the equivalent.

1

          “Aggregate
Commitments” means the Commitments of all the Lenders, which on the Closing
Date equal the sum of $1,500,000,000.

          “Agreement”
means this Credit Agreement.

          “Applicable
Rate” means, from time to time, the following percentages per annum, based
upon the Debt Rating as set forth below:

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Level

 	
  

 	
  

 	
 Debt Rating

 	
  

 	
  

 	
 Facility Fee

 	
  

 	
  

 	
 LIBOR Loans

 	
  

 	
  

 	
 Letter of 

 Credit Fee

 	
  

 	
  

 	
 Base Rate Loans

 
	
  

 	
 I

 	
  

 	
  

 	
 A+  /  A1  /  A+  or
 higher

 	
  

 	
  

 	
 0.100%

 	
  

 	
  

 	
 0.775%

 	
  

 	
  

 	
 0.775%

 	
  

 	
  

 	
 0.000%

 
	
  

 	
 II

 	
  

 	
  

 	
 A / A2 / A

 	
  

 	
  

 	
 0.125%

 	
  

 	
  

 	
 0.875%

 	
  

 	
  

 	
 0.875%

 	
  

 	
  

 	
 0.000%

 
	
  

 	
 III

 	
  

 	
  

 	
 A- / A3 / A-

 	
  

 	
  

 	
 0.150%

 	
  

 	
  

 	
 1.100%

 	
  

 	
  

 	
 1.100%

 	
  

 	
  

 	
 0.100%

 
	
  

 	
 IV

 	
  

 	
  

 	
 BBB+  /  Baa1  /  BBB+

 	
  

 	
  

 	
 0.200%

 	
  

 	
  

 	
 1.300%

 	
  

 	
  

 	
 1.300%

 	
  

 	
  

 	
 0.300%

 
	
  

 	
 V

 	
  

 	
  

 	
 BBB / Baa2 / BBB

 	
  

 	
  

 	
 0.250%

 	
  

 	
  

 	
 1.500%

 	
  

 	
  

 	
 1.500%

 	
  

 	
  

 	
 0.500%

 
	
  

 	
 VI

 	
  

 	
  

 	
 BBB-  /  Baa3  /  BBB-

 	
  

 	
  

 	
 0.300%

 	
  

 	
  

 	
 1.700%

 	
  

 	
  

 	
 1.700%

 	
  

 	
  

 	
 0.700%

 

	
  

 	
  

 
	
  

 	
 “Debt Rating” means, as of any date of determination, the
 rating as determined by S&P, Moody’s, or Fitch (collectively, the “Debt
 Ratings”) of the Borrower’s non-credit-enhanced, senior unsecured
 long-term debt; provided that, (a) if the Borrower is split-rated and
 all three Debt Ratings fall in different Levels, the applicable Level shall
 be based upon the Level indicated by the middle Debt Rating; (b) if the
 Borrower is split-rated and two of the Debt Ratings fall in the same Level
 (the “Majority Level”) and the third Debt Rating is in a different
 Level, the applicable Level shall be based upon the Majority Level; (c) if
 the Borrower shall maintain Debt Ratings from only two of Moody’s, S&P
 and Fitch, the applicable Level shall be based on (i) if the two Debt Ratings
 are one Level apart, the higher of the two Debt Ratings (the lower pricing);
 (ii) if the two Debt Ratings are two or three Levels apart, the applicable
 Level shall be determined by reference to the Level one Debt Rating lower
 than the higher of the two Debt Ratings; and (iii) if the two Debt Ratings
 are four or five Levels apart, the applicable Level shall be determined by
 reference to the Level two Debt Ratings lower than the higher of the two Debt
 Ratings; (d) if there is only one Debt Rating, the Debt Rating one Level
 lower than such Debt Rating shall apply; and (e) if there is no Debt Rating, the
 lowest Debt Rating and Level set forth above shall apply.

 

Initially as of the Closing Date, the Applicable Rate shall be set at
Level II. Thereafter, each change in the Applicable Rate resulting from a
publicly announced change in the Debt Rating shall be effective during the
period commencing on the date of the public announcement thereof and ending on
the date immediately preceding the effective date of the next such change.

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

2

          “Arranger”
means each of Merrill Lynch, Pierce, Fenner & Smith Incorporated, The Bank
of Tokyo-Mitsubishi UFJ, Ltd. and Wells Fargo Securities, LLC, in its capacity
as a joint lead arranger and a joint book manager.

          “Assignee
Group” means two or more Eligible Assignees that are Affiliates of one
another or two or more Approved Funds managed by the same investment advisor

          “Assignment
and Assumption” means an Assignment and Assumption Agreement substantially
in the form of Exhibit D.

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

          “Attributable
Indebtedness” means, on any date, (a) in respect of any capital lease of
any Person, the capitalized amount thereof that would appear on a balance sheet
of such Person prepared as of such date in accordance with GAAP, and (b) in
respect of any Synthetic Lease Obligation, the capitalized amount of the
remaining lease payments under the relevant lease that would appear on a
balance sheet of such Person prepared as of such date in accordance with GAAP
if such lease were accounted for as a capital lease.

          “Audited
Financial Statements” means the audited consolidated balance sheet of the
Borrower and its Subsidiaries for the fiscal year ended January 2, 2010, and the related consolidated
statements of income or operations, shareholders’ equity and cash flows for
such fiscal year of the Borrower and its Subsidiaries, including the notes
thereto and the accompanying Management’s Discussion and Analysis of Financial
Condition and Results of Operations.

          “Availability
Period” means the period from and including the Closing Date to the
earliest of (a) the Maturity Date, (b) the date of termination of the Aggregate
Commitments pursuant to Section 2.05, and (c) the date of termination of
the commitment of each Lender to make Loans and of the obligation of the L/C
Issuer to make L/C Credit Extensions pursuant to Section 8.02.

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

          “Bank of
America Fee Letter” means the letter agreement dated as of November 22,
2010 among the Borrower, Bank of America and Merrill Lynch. 

          “Base
Rate” means for any day a fluctuating rate per annum equal to the highest
of (a) the Federal Funds Rate plus 1/2 of 1%, (b) the rate of interest
in effect for such day as publicly announced from time to time by Bank of
America as its “prime rate,” and (c) the Eurodollar Rate plus 1.00%. The
“prime rate” is a rate set by Bank of America based upon various factors
including Bank of America’s costs and desired return, general economic
conditions and other factors, and is used as a reference point for pricing some
loans, which may be priced at, above, or below such announced rate. Any change
in such prime rate announced by Bank of America shall take effect at the
opening of business on the day specified in the public announcement of such
change. 

3

          “Base
Rate Loan” means a Loan that bears interest based on the Base Rate.

          “Borrower”
has the meaning specified in the introductory paragraph hereto.

          “Borrower
Materials” has the meaning specified in Section 6.02.

          “Borrowing”
means a borrowing consisting of simultaneous Loans of the same Type and, in the
case of Eurodollar Rate Loans, having the same Interest Period made by each of
the Lenders pursuant to Section 2.01.

          “BTMU”
means The Bank of Tokyo-Mitsubishi UFJ, Ltd. and its successors. 

          “BTMU
Fee Letter” means the letter agreement dated as of November 22, 2010
between the Borrower and BTMU. 

          “Business
Day” means any day other than a Saturday, Sunday or other day on which
commercial banks are authorized to close under the Laws of, or are in fact
closed in, the state where the Administrative Agent’s Office is located and, if
such day relates to any Eurodollar Rate Loan, means any such day on which
dealings in Dollar deposits are conducted by and between banks in the London interbank
eurodollar market. 

          “Cash
Collateralize” means to pledge and deposit with or deliver to the
Administrative Agent, for the benefit of the Administrative Agent or L/C Issuer
(as applicable) and the Lenders, as collateral for L/C Obligations or
obligations of Lenders to fund participations in respect thereof, cash or
deposit account balances or, if the L/C Issuer benefitting from such collateral
shall agree in its sole discretion, other credit support, in each case pursuant
to documentation in form and substance satisfactory to (a) the Administrative
Agent and (b) the L/C Issuer. “Cash Collateral” shall have a meaning
correlative to the foregoing and shall include the proceeds of such cash
collateral and other credit support.

          “Change
in Law” means (a) any change arising from the enactment or enforcement of
the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, as
amended, or any rules, regulations, interpretations, guidelines or directives
promulgated thereunder, or (b) the occurrence, after the date of this
Agreement, of any of the following: (i) the adoption or taking effect of any
law, rule, regulation or treaty, (ii) any change in any law, rule, regulation
or treaty or in the administration, interpretation or application thereof by
any Governmental Authority or (iii) the making or issuance of any request,
guideline or directive (whether or not having the force of law) by any
Governmental Authority. 

          “Change
of Control” means, with respect to any Person, an event or series of events
by which:

	
  

 	
  

 
	
  

 	
           (a)     any
 “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of
 the Securities Exchange Act of 1934, but excluding any employee benefit plan
 of such person or its subsidiaries, and any person or entity acting in its
 capacity as trustee, agent or other fiduciary or administrator of any such
 plan) becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5
 under the Securities Exchange Act of 1934, except that a person or group shall
 be deemed to have “beneficial ownership” of all 

 

4

	
  

 	
  

 
	
  

 	
 securities that such person or group has the right to acquire (such
 right, an “option right”), whether such right is exercisable
 immediately or only after the passage of time), directly or indirectly, of 20% or more of the equity securities
 of such Person entitled to vote for members of the board of directors or
 equivalent governing body of such Person on a fully-diluted basis (and taking
 into account all such securities that such person or group has the right to
 acquire pursuant to any option right); or

 
	
  

 	
  

 
	
  

 	
           (b)     during
 any period of 24 consecutive
 months, a majority of the members of the board of directors or other
 equivalent governing body of such Person cease to be composed of individuals
 (i) who were members of that board or equivalent governing body on the first
 day of such period, (ii) whose election or nomination to that board or
 equivalent governing body was approved by individuals referred to in clause
 (i) above constituting at the time of such election or nomination at
 least a majority of that board or equivalent governing body or (iii) whose
 election or nomination to that board or other equivalent governing body was
 approved by individuals referred to in clauses (i) and (ii) above
 constituting at the time of such election or nomination at least a majority
 of that board or equivalent governing body (excluding, in the case of both clause
 (ii) and clause (iii), any individual whose initial
 nomination for, or assumption of office as, a member of that board or
 equivalent governing body occurs as a result of an actual or threatened
 solicitation of proxies or consents for the election or removal of one or
 more directors by any person or group other than a solicitation for the
 election of one or more directors by or on behalf of the board of directors).

 

          “Closing
Date” means the first date all the conditions precedent in Section 4.01
are satisfied or waived in accordance with Section 10.01 (or, in the
case of Section 4.01(b), waived by the Person entitled to receive the
applicable payment).

          “Code”
means the Internal Revenue Code of 1986.

          “Commitment”
means, as to each Lender, its obligation to (a) make Loans to the Borrower
pursuant to Section 2.01, and (b) purchase participations in L/C
Obligations in an aggregate principal amount at any one time outstanding not to
exceed the amount set forth opposite such Lender’s name on Schedule 2.01
or in the Assignment and Assumption pursuant to which such Lender becomes a
party hereto, as applicable, as such amount may be adjusted from time to time
in accordance with this Agreement.

          “Compliance
Certificate” means a certificate substantially in the form of Exhibit C.

          “Consolidated
EBITDA” means, for any period, for the Borrower and its Subsidiaries on a
consolidated basis, an amount equal to Consolidated Net Income for such period plus
(a) the following to the extent deducted in calculating such Consolidated Net
Income: (i) Consolidated Interest Charges for such period, (ii) the provision
for federal, state, local and foreign income taxes payable by the Borrower and
its Subsidiaries for such period, (iii) the amount of depreciation and
amortization expense deducted in determining such Consolidated Net Income and
(iv) other expenses of the Borrower and its Subsidiaries reducing such
Consolidated Net Income which do not represent a cash item in such period or
any future period and minus (b) all non-cash items increasing
Consolidated Net Income for such period.

5

          “Consolidated
Funded Indebtedness” means, as of any date of determination, for the
Borrower and its Subsidiaries on a consolidated basis, the sum of (a) the
outstanding principal amount of all obligations, whether current or long-term,
for borrowed money (including Obligations hereunder) and all obligations
evidenced by bonds, debentures, notes, loan agreements or other similar
instruments, (b) all purchase money Indebtedness, (c) all direct obligations
arising under letters of credit (including standby and commercial), bankers’
acceptances, bank guaranties, surety bonds and similar instruments, (d) all
obligations in respect of the deferred purchase price of property or services
(other than trade accounts payable in the ordinary course of business), (e)
Attributable Indebtedness in respect of capital leases and Synthetic Lease
Obligations, (f) without duplication, all Guarantees with respect to
outstanding Indebtedness of the types specified in clauses (a) through (e)
above of Persons other than the Borrower or any Subsidiary, and (g) all
Indebtedness of the types referred to in clauses (a) through (f)
above of any partnership or joint venture (other than a joint venture that is
itself a corporation or limited liability company) in which the Borrower or a
Subsidiary is a general partner or joint venturer, unless such Indebtedness is
expressly made non-recourse to the Borrower or such Subsidiary.

          “Consolidated
Interest Charges” means, for any period, for the Borrower and its Subsidiaries
on a consolidated basis, the sum of (a) all interest, premium payments, debt
discount, fees, charges and related expenses of the Borrower and its
Subsidiaries in connection with borrowed money (including capitalized interest)
or in connection with the deferred purchase price of assets, in each case to
the extent treated as interest in accordance with GAAP, and (b) the portion of
rent expense of the Borrower and its Subsidiaries with respect to such period
under capital leases that is treated as interest in accordance with GAAP.

          “Consolidated
Leverage Ratio” means, as of any date of determination, the ratio of (a)
Consolidated Funded Indebtedness as of such date to (b) Consolidated
EBITDA for the period of the four fiscal quarters most recently ended for which
the Borrower has delivered financial statements pursuant to Section 6.01(a)
or (b).

          “Consolidated
Net Income” means, for any period, for the Borrower and its Subsidiaries on
a consolidated basis, the net income of the Borrower and its Subsidiaries
(excluding extraordinary gains but including extraordinary losses) for that
period.

          “Consolidated
Tangible Net Worth” means, as of any date of determination, for the
Borrower and its Subsidiaries on a consolidated basis, Shareholders’ Equity of
the Borrower and its Subsidiaries on that date minus the Intangible
Assets of the Borrower and its Subsidiaries on that date.

          “Contingent
Obligation” means, as to any Person, any direct or indirect liability of
that Person with respect to any Indebtedness, lease, dividend, guaranty, letter
of credit or other financial obligation (each a “primary obligation”) of
another Person (the “primary obligor”), whether or not contingent, (a)
to purchase, repurchase or otherwise acquire any such primary obligation or any
property constituting direct or indirect security therefor, or (b) to advance
or provide funds (i) for the payment or discharge of any such primary
obligation, or (ii) to maintain working capital or equity capital of the primary
obligor in respect of any such primary obligation or otherwise to maintain the
net worth or solvency or any balance sheet item, level of income or 

6

financial condition of such primary obligor, or (c) to purchase
property, securities or services primarily for the purpose of assuring the
owner of any such primary obligation of the ability of the primary obligor
thereof to make payment of such primary obligation, or (d) otherwise to assure
or hold harmless the owner of any such primary obligation against loss or
failure or inability to perform in respect thereof. The amount of any
Contingent Obligation shall be deemed to be an amount equal to the stated or
determinable amount of the primary obligation in respect of which such
Contingent Obligation is made or, if not stated or determinable, the maximum
reasonably anticipated liability in respect thereof.

          “Contractual
Obligation” means, as to any Person, any provision of any security issued
by such Person or of any agreement, instrument or other undertaking to which
such Person is a party or by which it or any of its property is bound.

          “Control”
has the meaning specified in the definition of “Affiliate”.

          “Credit
Extension” means each of the following: (a) a Borrowing and (b) an L/C
Credit Extension.

          “Debt
Rating” has the meaning set forth in the definition of “Applicable Rate”.

          “Debtor
Relief Laws” means the Bankruptcy Code of the United States, and all other
liquidation, conservatorship, bankruptcy, assignment for the benefit of
creditors, moratorium, rearrangement, receivership, insolvency, reorganization,
or similar debtor relief Laws of the United States or other applicable
jurisdictions from time to time in effect and affecting the rights of creditors
generally.

          “Default”
means any event or condition that constitutes an Event of Default or that, with
the giving of any notice, the passage of time, or both, would be an Event of
Default.

          “Default
Rate” means (a) when used with respect to Obligations other than Letter of
Credit Fees, an interest rate equal to (i) the Base Rate plus (ii) the
Applicable Rate, if any, applicable to Base Rate Loans plus (iii) 2% per
annum; provided, however, that with respect to a Eurodollar Rate
Loan, the Default Rate shall be an interest rate equal to the interest rate
(including any Applicable Rate) otherwise applicable to such Loan plus
2% per annum, in each case to the fullest extent permitted by applicable Laws,
and (b) when used with respect to Letter of Credit Fees, a rate equal to the
Applicable Rate applicable to Letter of Credit Fees plus 2% per annum.

          “Defaulting
Lender” means, subject to Section 2.15(b), any Lender that, as
reasonably determined by the Administrative Agent, (a) has failed to perform
any of its funding obligations hereunder, including in respect of its Loans or
participations in respect of Letters of Credit, within two Business Days of the
date required to be funded by it hereunder, (b) has notified the Borrower, or
the Administrative Agent that it does not intend to comply with its funding
obligations or has made a public statement to that effect with respect to its
funding obligations hereunder or generally under other agreements in which it
commits to extend credit, (c) has failed, within three Business Days after
written request by the Administrative Agent, to confirm that it will comply
with its funding obligations, or (d) has, or has a direct or indirect parent
company that has, (i) become the subject of a proceeding under any Debtor
Relief Law, (ii) had a 

7

receiver, conservator, trustee, administrator, assignee for the benefit
of creditors or similar Person charged with reorganization or liquidation of
its business or a custodian appointed for it, or (iii) taken any action in
furtherance of, or indicated its consent to, approval of or acquiescence in any
such proceeding or appointment; provided that a Lender shall not be a
Defaulting Lender solely by virtue of the ownership or acquisition of any
equity interest in that Lender or any direct or indirect parent company thereof
or exercise of control over such Lender or any direct or indirect parent
company thereof by a Governmental Authority. 

          “Dollar”
and “$” mean lawful money of the United States.

          “Eligible
Assignee” means any Person that meets the requirements to be an assignee
under Section 10.06(b)(iii), (v) and (vi) (subject to such
consents, if any, as may be required under Section 10.06(b)(iii)).

          “Environmental
Laws” means any and all Federal, state, local, and foreign statutes, laws,
regulations, ordinances, rules, judgments, orders, decrees, permits,
concessions, grants, franchises, licenses, agreements or governmental
restrictions relating to pollution and the protection of the environment or the
release of any materials into the environment, including those related to
hazardous substances or wastes, air emissions and discharges to waste or public
systems.

          “Environmental
Liability” means any liability, contingent or otherwise (including any
liability for damages, costs of environmental remediation, fines, penalties or
indemnities), of the Borrower or any of its Subsidiaries directly or indirectly
resulting from or based upon (a) violation of any Environmental Law, (b) the generation,
use, handling, transportation, storage, treatment or disposal of any Hazardous
Materials, (c) exposure to any Hazardous Materials, (d) the release or
threatened release of any Hazardous Materials into the environment or (e) any
contract, agreement or other consensual arrangement pursuant to which liability
is assumed or imposed with respect to any of the foregoing.

          “ERISA”
means the Employee Retirement Income Security Act of 1974.

          “ERISA
Affiliate” means any trade or business (whether or not incorporated) under
common control with the Borrower within the meaning of Section 414(b) or (c) of
the Code (and Sections 414(m) and (o) of the Code for purposes of provisions
relating to Section 412 of the Code).

          “ERISA
Event” means (a) a Reportable Event with respect to a Pension Plan; (b) the
withdrawal of the Borrower or any ERISA Affiliate from a Pension Plan subject
to Section 4063 of ERISA during a plan year in which such entity was a
“substantial employer” as defined in Section 4001(a)(2) of ERISA or a cessation
of operations that is treated as such a withdrawal under Section 4062(e) of
ERISA; (c) a complete or partial withdrawal by the Borrower or any ERISA
Affiliate from a Multiemployer Plan or notification that a Multiemployer Plan
is in reorganization; (d) the filing of a notice of intent to terminate, the
treatment of a Pension Plan amendment as a termination under Section 4041 or
4041A of ERISA; (e) the institution by the PBGC of proceedings to terminate a
Pension Plan; (f) any event or condition which constitutes grounds under
Section 4042 of ERISA for the termination of, or the appointment of a trustee
to 

8

administer, any Pension Plan; (g) the determination that any Pension
Plan is considered an at-risk plan or a plan in endangered or critical status
within the meaning of Sections 430, 431 and 432 of the Code or Sections 303,
304 and 305 of ERISA; or (h) the imposition of any liability under Title IV of
ERISA, other than for PBGC premiums due but not delinquent under Section 4007
of ERISA, upon the Borrower or any ERISA Affiliate.

          “Eurodollar
Base Rate” has the meaning set forth in the definition of Eurodollar Rate.

          “Eurodollar
Rate” means: 

	
  

 	
  

 
	
  

 	
           (a)     for
 any Interest Period with respect to any Eurodollar Rate Loan, or (b) for any
 interest calculation with respect to a Base Rate Loan, the rate per annum
 determined by the Administrative Agent pursuant to the following formula:

 

	
  

 	
  

 	
  

 
	
  

 	
 Eurodollar
 Rate =

 	
 Eurodollar Base Rate

 
	
  

 	
 1.00 – Eurodollar Reserve Percentage

 

	
  

 	
  

 
	
  

 	
           Where “Eurodollar Base Rate” means (a) for any Interest Period
 with respect to a Eurodollar Rate Loan, the rate per annum equal to (i) the
 British Bankers Association LIBOR Rate (“BBA LIBOR”), as published by
 Reuters (or such other commercially available source providing quotations of
 BBA LIBOR as may be designated by the Administrative Agent from time to time)
 at approximately 11:00 a.m., London time, two London Banking Days prior to
 the commencement of such Interest Period, for Dollar deposits (for delivery
 on the first day of such Interest Period) with a term equivalent to such
 Interest Period or, (ii) if such rate is not available at such time for any
 reason, the rate per annum determined by the Administrative Agent to be the
 rate at which deposits in Dollars for delivery on the first day of such
 Interest Period in same day funds in the approximate amount of the Eurodollar
 Rate Loan being made, continued or converted and with a term equivalent to
 such Interest Period would be offered by Bank of America’s London Branch to
 major banks in the London interbank eurodollar market at their request at
 approximately 11:00 a.m. (London time) two London Banking Days prior to the
 commencement of such Interest Period; and (b) for any interest calculation
 with respect to a Base Rate Loan on any date, the rate per annum equal to (i)
 BBA LIBOR, at approximately 11:00 a.m., London time determined two London
 Banking Days prior to such date for Dollar deposits being delivered in the
 London interbank market for a term of one month commencing that day or (ii)
 if such published rate is not available at such time for any reason, the rate
 per annum determined by the Administrative Agent to be the rate at which
 deposits in Dollars for delivery on the date of determination in same day
 funds in the approximate amount of the Base Rate Loan being made or
 maintained and with a term equal to one month would be offered by Bank of
 America’s London Branch to major banks in the London interbank Eurodollar
 market at their request at the date and time of determination.

 

          “Eurodollar
Rate Loan” means a Loan that bears interest at a rate based on clause
(a) of the definition of “Eurodollar Rate”.

9

          “Eurodollar
Reserve Percentage” means, for any day during any Interest Period of any
Eurodollar Rate Loan, the reserve percentage (expressed as a decimal, carried
out to five decimal places) in effect on such day, whether or not applicable to
any Lender, under regulations issued from time to time by the FRB for
determining the maximum reserve requirement (including any emergency,
supplemental or other marginal reserve requirement) with respect to
Eurocurrency funding (currently referred to as “Eurocurrency liabilities”). The
Eurodollar Rate for each outstanding Eurodollar Rate Loan shall be adjusted
automatically as of the effective date of any change in the Eurodollar Reserve
Percentage.

          “Event
of Default” has the meaning specified in Section 8.01. 

          “Excluded Subsidiary” means each
Subsidiary listed on Schedule 1.01 by reason that such Subsidiary no
longer actively conducts any business or operations, including as a holding or
investment company, and has been, will be after the Closing Date, or likely
will be after the Closing Date, liquidated, and in the event that any such
Subsidiary shall after the Closing Date conduct any business or operations,
including as a holding or investment company, such that after three consecutive
fiscal quarters of the Borrower and its Subsidiaries, such Subsidiary has
income equal to or greater than 1% of Consolidated Net Income determined for
the same such period, then such Subsidiary shall no longer be an Excluded
Subsidiary as of the date of delivery, or date delivery is required (whichever
is earlier), of the financial statements of the Borrower and its Subsidiaries
pursuant to Section 6.01(a) or (b) with respect to the third such
consecutive fiscal quarter and a Responsible Officer shall notify the
Administrative Agent thereof. 

          “Excluded Taxes” means, with respect
to the Administrative Agent, any Lender or any other recipient of any payment
to be made by or on account of any Obligation hereunder, (a) taxes imposed on
or measured by its overall net income (however denominated), and franchise
taxes imposed on it (in lieu of net income taxes), by the jurisdiction (or any
political subdivision thereof) under the Laws of which such recipient is
organized or in which its principal office is located or, in the case of any
Lender, in which its applicable Lending Office is located, (b) any branch
profits taxes imposed by the United States or any similar tax imposed by any
other jurisdiction in which the Borrower is located, (c) any backup withholding
tax that is required by the Code to be withheld from amounts payable to a
Lender that has failed to comply with clause (A) of Section
3.01(e)(ii), and (d) in the case of a Foreign Lender (other than an
assignee pursuant to a request by the Borrower under Section 10.14), any
United States withholding tax that (i) is required to be imposed on amounts
payable to such Foreign Lender pursuant to the Laws in force at the time such
Foreign Lender becomes a party hereto (or designates a new Lending Office) or
(ii) is attributable to such Foreign Lender’s failure or inability (other than
as a result of a Change in Law) to comply with clause (B) of Section
3.01(e)(ii), except to the extent that such Foreign Lender (or its
assignor, if any) was entitled, at the time of designation of a new Lending
Office (or assignment), to receive additional amounts from the Borrower with
respect to such withholding tax pursuant to Section 3.01(a)(i) or (ii).

          “Existing
2006 Multi-Year Credit Agreement” means that certain Multi-Year
$1,000,000,000 Credit Agreement dated as of December 13, 2006 (as amended,
modified, supplemented or amended and restated from time to time) by and among
the Borrower, Bank of America as administrative agent, and the lenders from
time to time party thereto.

10

          “FASB
ASC” means the Accounting Standards Codification of the Financial
Accounting Standards Board.

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

          “Fee
Letter” means the Bank of America Fee Letter, the BTMU Fee Letter or the
Wells Fargo Fee Letter, as the context may require. 

          “Fitch”
means Fitch Ratings Ltd. and any successor thereto. 

          “Foreign
Lender” means any Lender that is organized under the Laws of a jurisdiction
other than that in which the Borrower is resident for tax purposes (including
such a Lender when acting in the capacity of the L/C Issuer). For purposes of
this definition, the United States, each State thereof and the District of
Columbia shall be deemed to constitute a single jurisdiction. 

          “FRB”
means the Board of Governors of the Federal Reserve System of the United
States.

          “Fronting
Exposure” means, at any time there is a Defaulting Lender, with respect to
the L/C Issuer, such Defaulting Lender’s Pro Rata Share of the outstanding L/C
Obligations other than L/C Obligations as to which such Defaulting Lender’s
participation obligation has been reallocated to other Lenders or Cash
Collateralized in accordance with the terms hereof.

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

          “GAAP”
means generally accepted accounting principles in the United States set forth
in the opinions and pronouncements of the Accounting Principles Board and the
American Institute of Certified Public Accountants and statements and pronouncements
of the Financial Accounting Standards Board or such other principles as may be
approved by a significant segment of the accounting profession in the United
States, that are applicable to the circumstances as of the date of
determination, consistently applied.

          “Governmental
Authority” means any nation or government, any state or other political
subdivision thereof, any agency, authority, instrumentality, regulatory body,
court, administrative tribunal, central bank or other entity exercising
executive, legislative, judicial, taxing, regulatory or administrative powers
or functions of or pertaining to government.

11

          “Granting Lender” has the meaning
specified in Section 10.06(h).

          “Guarantee”
means, as to any Person, any (a) any obligation, contingent or otherwise, of
such Person guaranteeing or having the economic effect of guaranteeing any
Indebtedness or other obligation payable or performable by another Person (the
“primary obligor”) in any manner, whether directly or indirectly, and including
any obligation of such Person, direct or indirect, (i) to purchase or pay (or
advance or supply funds for the purchase or payment of) such Indebtedness or
other obligation, (ii) to purchase or lease property, securities or services
for the purpose of assuring the obligee in respect of such Indebtedness or
other obligation of the payment or performance of such Indebtedness or other
obligation, (iii) to maintain working capital, equity capital or any other
financial statement condition or liquidity or level of income or cash flow of
the primary obligor so as to enable the primary obligor to pay such
Indebtedness or other obligation, or (iv) entered into for the purpose of
assuring in any other manner the obligee in respect of such Indebtedness or
other obligation of the payment or performance thereof or to protect such
obligee against loss in respect thereof (in whole or in part), or (b) any Lien
on any assets of such Person securing any Indebtedness or other obligation of
any other Person, whether or not such Indebtedness or other obligation is
assumed by such Person. The amount of any Guarantee shall be deemed to be an
amount equal to the stated or determinable amount of the related primary
obligation, or portion thereof, in respect of which such Guarantee is made or,
if not stated or determinable, the maximum reasonably anticipated liability in
respect thereof as determined by the guaranteeing Person in good faith. The
term “Guarantee” as a verb has a corresponding meaning.

          “Hazardous Materials” means all
explosive or radioactive substances or wastes and all hazardous or toxic
substances, wastes or other pollutants, including petroleum or petroleum
distillates, asbestos or asbestos-containing materials, polychlorinated biphenyls,
radon gas, infectious or medical wastes and all other substances or wastes of
any nature regulated pursuant to any Environmental Law.

          “Indebtedness”
means, as to any Person at a particular time, without duplication, all of the
following, whether or not included as indebtedness or liabilities in accordance
with GAAP:

	
  

 	
  

 
	
  

 	
           (a)     all
 obligations of such Person for borrowed money and all obligations of such
 Person evidenced by bonds, debentures, notes, loan agreements or other similar
 instruments;

 
	
  

 	
  

 
	
  

 	
           (b)     all
 direct or contingent obligations of such Person arising under letters of
 credit (including standby and commercial), bankers’ acceptances, bank
 guaranties, surety bonds and similar instruments;

 
	
  

 	
  

 
	
  

 	
           (c)     net
 obligations of such Person under any Swap Contract;

 
	
  

 	
  

 
	
  

 	
           (d)     all
 obligations of such Person to pay the deferred purchase price of property or
 services (other than trade accounts payable in the ordinary course of
 business);

 
	
  

 	
  

 
	
  

 	
           (e)     indebtedness
 (excluding prepaid interest thereon) secured by a Lien on property owned or
 being purchased by such Person (including indebtedness arising under 

 

12

	
  

 	
  

 
	
  

 	
 conditional sales or other title retention agreements), whether or
 not such indebtedness shall have been assumed by such Person or is limited in
 recourse;

 
	
  

 
	
  

 	
           (f)     capital
 leases and Synthetic Lease Obligations; and

 
	
  

 	
  

 
	
  

 	
           (g)     all
 Guarantees of such Person in respect of any of the foregoing.

 

          For all
purposes hereof, the Indebtedness of any Person shall include the Indebtedness
of any partnership or joint venture (other than a joint venture that is itself
a corporation or limited liability company) in which such Person is a general
partner or a joint venturer, unless such Indebtedness is expressly made
non-recourse to such Person. The amount of any net obligation under any Swap
Contract on any date shall be deemed to be the Swap Termination Value thereof
as of such date. The amount of any capital lease or Synthetic Lease Obligation
as of any date shall be deemed to be the amount of Attributable Indebtedness in
respect thereof as of such date.

          “Indemnified
Taxes” means Taxes other than Excluded Taxes.

          “Indemnitees”
has the meaning set forth in Section 10.04(b).

          “Independent
Auditor” has the meaning set forth in Section 6.01(a).

          “Intangible
Assets” means assets that are considered to be intangible assets under
GAAP, including customer lists, goodwill, computer software, copyrights, trade
names, trademarks, patents, franchises, licenses, unamortized deferred charges,
unamortized debt discount and capitalized research and development costs.

          “Interest
Payment Date” means, (a) as to any Loan other than a Base Rate Loan, the
last day of each Interest Period applicable to such Loan and the Maturity Date;
provided, however, that if any Interest Period for a Eurodollar
Rate Loan exceeds three months, the respective dates that fall every three
months after the beginning of such Interest Period shall also be Interest
Payment Dates; and (b) as to any Base Rate Loan, the last Business Day of each March, June, September and December
and the Maturity Date.

          “Interest
Period” means, as to each Eurodollar Rate Loan, the period commencing on
the date such Eurodollar Rate Loan is disbursed or converted to or continued as
a Eurodollar Rate Loan and ending on the date one, two, three or six months
thereafter, as selected by the Borrower in its Loan Notice; provided that:

	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

 	
           (b)     any
 Interest Period that begins on the last Business Day of a calendar month (or
 on a day for which there is no numerically corresponding day in the calendar
 month at the end of such Interest Period) shall end on the last Business Day
 of the calendar month at the end of such Interest Period; and

 

13

	
  

 	
  

 
	
  

 	
           (c)     no
 Interest Period shall extend beyond the Maturity Date.

 

          “Investment”
means, as to any Person, any direct or indirect acquisition or investment by
such Person, whether by means of (a) the purchase or other acquisition of
capital stock or other securities of another Person, (b) a loan, advance or
capital contribution to, Guarantee or assumption of debt of, or purchase or
other acquisition of any other debt or equity participation or interest in,
another Person, including any partnership or joint venture interest in such
other Person, or (c) the purchase or other acquisition (in one transaction or a
series of transactions) of assets of another Person that constitute a business
unit. For purposes of covenant compliance, the amount of any Investment shall
be the amount actually invested, without adjustment for subsequent increases or
decreases in the value of such Investment.

          “Investment Transaction” has the
meaning set forth in Section 7.04.

          “IRS”
means the United States Internal Revenue Service.

          “ISP”
means, with respect to any Letter of Credit, the “International Standby
Practices 1998” published by the Institute of International Banking Law &
Practice (or such later version thereof as may be in effect at the time of
issuance).

          “Issuer
Documents” means with respect to any Letter of Credit, the Letter of Credit
Application, and any other document, agreement and instrument entered into by
the L/C Issuer and the Borrower (or any Subsidiary) or in favor of the L/C
Issuer and relating to any such Letter of Credit.

          “Joint
Venture” means a corporation, partnership, joint venture or other similar
legal arrangement (whether created by contract or conducted through a separate
legal entity) now or hereafter formed by the Borrower or any of its
Subsidiaries with another Person in order to conduct a common venture or
enterprise with such Person.

          “Laws”
means, collectively, all international, foreign, Federal, state and local
statutes, treaties, rules, guidelines, regulations, ordinances, codes and
administrative or judicial precedents or authorities, including the interpretation
or administration thereof by any Governmental Authority charged with the
enforcement, interpretation or administration thereof, and all applicable
administrative orders, directed duties, requests, licenses, authorizations and
permits of, and agreements with, any Governmental Authority, in each case
whether or not having the force of law.

          “L/C
Advance” means, with respect to each Lender, such Lender’s funding of its
participation in any L/C Borrowing in accordance with its Pro Rata Share.

          “L/C
Borrowing” means an extension of credit resulting from a drawing under any
Letter of Credit which has not been reimbursed on the date when made or
refinanced as a Borrowing.

          “L/C
Credit Extension” means, with respect to any Letter of Credit, the issuance
thereof or extension of the expiry date thereof, or the renewal or increase of
the amount thereof.

14

          “L/C
Issuer” means Bank of America in its capacity as issuer of Letters of
Credit hereunder, or any successor issuer of Letters of Credit hereunder. 

          “L/C
Obligations” means, as at any date of determination, the aggregate amount
available to be drawn under all outstanding Letters of Credit plus the
aggregate of all Unreimbursed Amounts, including all L/C Borrowings. For
purposes of computing the amount available to be drawn under any Letter of
Credit, the amount of such Letter of Credit shall be determined in accordance
with Section 1.07. For all purposes of this Agreement, if on any date of
determination a Letter of Credit has expired by its terms but any amount may
still be drawn thereunder by reason of the operation of Rule 3.14 of the ISP,
such Letter of Credit shall be deemed to be “outstanding” in the amount so
remaining available to be drawn.

          “Lender”
has the meaning specified in the introductory paragraph hereto and, as the
context requires, includes the L/C Issuer.

          “Lending
Office” means, as to any Lender, the office or offices of such Lender
described as such in such Lender’s Administrative Questionnaire, or such other
office or offices as a Lender may from time to time notify the Borrower and the
Administrative Agent.

          “Letter
of Credit” means any letter of credit issued hereunder. A Letter of Credit may only be a standby
letter of credit.

          “Letter
of Credit Application” means an application and agreement for the issuance
or amendment of a Letter of Credit in the form from time to time in use by the
L/C Issuer.

          “Letter
of Credit Expiration Date” means the day that is seven days prior to the
Maturity Date then in effect (or, if such day is not a Business Day, the next
preceding Business Day).

          “Letter
of Credit Sublimit” means an amount equal to $250,000,000. The Letter of Credit Sublimit is part of, and not in
addition to, the Aggregate Commitments.

          “Lien”
means any mortgage, pledge, hypothecation, assignment, deposit arrangement,
encumbrance, lien (statutory or other), charge, or preference, priority or
other security interest or preferential arrangement of any kind or nature
whatsoever (including any conditional sale or other title retention agreement,
and any financing lease having substantially the same economic effect as any of
the foregoing).

          “Loan”
has the meaning specified in Section 2.01.

          “Loan
Documents” means this Agreement, each Note, any agreement creating or
perfecting rights in Cash Collateral pursuant to the provisions of Section
2.14 and the Fee Letters. 

          “Loan
Notice” means a notice of (a) a Borrowing, (b) a conversion of Loans from
one Type to the other, or (c) a continuation of Eurodollar Rate Loans, pursuant
to Section 2.02(a), which, if in writing, shall be substantially in the
form of Exhibit A.

15

          “London
Banking Day” means any day on which dealings in Dollar deposits are
conducted by and between banks in the London interbank eurodollar market. 

          “Margin
Stock” means “margin stock” as such term is defined in Regulation U or X of
the FRB.

          “Material
Adverse Effect” means (a) a material adverse change in, or a material
adverse effect upon, the operations, business, properties, liabilities (actual
or contingent), condition (financial or otherwise) or prospects of the Borrower
and its Subsidiaries taken as a whole; (b) a material impairment of the ability
of the Borrower to perform its obligations under any Loan Document to which it
is a party; or (c) a material adverse effect upon the legality, validity,
binding effect or enforceability against the Borrower of any Loan Document to
which it is a party.

          “Maturity
Date” means February 28, 2015.

          “Merrill Lynch” means Merrill Lynch,
Pierce, Fenner & Smith Incorporated and its successors. 

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

          “Multiemployer
Plan” means any employee benefit plan of the type described in Section
4001(a)(3) of ERISA, to which the Borrower or any ERISA Affiliate makes or is
obligated to make contributions, or during the preceding five plan years, has
made or been obligated to make contributions.

          “Multiple
Employer Plan” means a Plan which has two or more contributing sponsors
(including the Borrower or any ERISA Affiliate) at least two of whom are not
under common control, as such a plan is described in Section 4064 of
ERISA.

          “Note”
means a promissory note made by the Borrower in favor of a Lender evidencing
Loans made by such Lender, substantially in the form of Exhibit B.

          “Obligations”
means all advances to, and debts, liabilities, obligations, covenants and
duties of, the Borrower arising under any Loan Document or otherwise with
respect to any Loan or Letter of Credit, whether direct or indirect (including
those acquired by assumption), absolute or contingent, due or to become due,
now existing or hereafter arising and including interest and fees that accrue
after the commencement by or against the Borrower or any Affiliate thereof of
any proceeding under any Debtor Relief Laws naming such Person as the debtor in
such proceeding, regardless of whether such interest and fees are allowed
claims in such proceeding. 

          “Organization
Documents” means, (a) with respect to any corporation, the certificate or
articles of incorporation and the bylaws (or equivalent or comparable
constitutive documents with respect to any non-U.S. jurisdiction); (b) with
respect to any limited liability company, the certificate or articles of
formation or organization and operating agreement; and (c) with respect to any
partnership, joint venture, trust or other form of business entity, the
partnership, joint venture or other applicable agreement of formation or
organization and any agreement, instrument, filing or notice with respect
thereto filed in connection with its formation or 

16

organization with the applicable Governmental Authority in the
jurisdiction of its formation or organization and, if applicable, any
certificate or articles of formation or organization of such entity.

          “Other
Taxes” means all present or future stamp or documentary taxes or any other
excise or property taxes, charges or similar levies arising from any payment
made hereunder or under any other Loan Document or from the execution, delivery
or enforcement of, or otherwise with respect to, this Agreement or any other
Loan Document. 

          “Outstanding
Amount” means (i) with respect to Loans on any date, the aggregate
outstanding principal amount thereof after giving effect to any borrowings and
prepayments or repayments of Loans occurring on such date; and (ii) with
respect to any L/C Obligations on any date, the amount of such L/C Obligations
on such date after giving effect to any L/C Credit Extension occurring on such
date and any other changes in the aggregate amount of the L/C Obligations as of
such date, including as a result of any reimbursements of outstanding unpaid
drawings under any Letters of Credit or any reductions in the maximum amount
available for drawing under Letters of Credit taking effect on such date.

          “Participant”
has the meaning specified in Section 10.06(d).

          “PBGC”
means the Pension Benefit Guaranty Corporation.

          “Pension
Act” means the Pension Protection Act of 2006.

          “Pension
Funding Rules” means the rules of the Code and ERISA regarding minimum
required contributions (including any installment payment thereof) to Pension
Plans and set forth in, with respect to plan years ending prior to the
effective date of the Pension Act, Section 412 of the Code and Section 302 of
ERISA, each as in effect prior to the Pension Act and, thereafter, Section 412,
430, 431, 432 and 436 of the Code and Sections 302, 303, 304 and 305 of ERISA.

          “Pension
Plan” means any employee pension benefit plan (including a Multiple
Employer Plan or a Multiemployer Plan) that is maintained or is contributed to
by the Borrower and any ERISA Affiliate and is either covered by Title IV of
ERISA or is subject to the minimum funding standards under Section 412 of
the Code.

          “Permitted
Liens” has the meaning specified in Section 7.01.

          “Permitted
Receivables Facility” means one or more accounts receivable securitization
arrangements which provide for (a) the sale of accounts receivable and any
related property by the Borrower and/or any of its Subsidiaries to a financing
party or a special purpose vehicle
and (b) if a special purpose
vehicle is used in any such arrangements, the granting of a security interest
in accounts receivables and any related property by such special purpose
vehicle and/or the granting of a security interest by the Borrower or such
Subsidiary in any such related property; provided however, that the sum
of the aggregate net unrecovered investment and the aggregate outstanding
advances from the financing parties under such accounts receivable
securitization arrangements shall not exceed $150,000,000.

17

          “Person”
means any natural person, corporation, limited liability company, trust, joint
venture, association, company, partnership, Governmental Authority or other entity.

          “Plan”
means any employee benefit plan within the meaning of Section 3(3) of
ERISA (including a Pension Plan), maintained for employees of the Borrower or
any ERISA Affiliate or any such Plan to which the Borrower or any ERISA
Affiliate is required to contribute on behalf of any of its employees.

          “Platform”
has the meaning specified in Section 6.02.

          “Pro
Rata Share” means, with respect to each Lender at any time, a fraction
(expressed as a percentage, carried out to the ninth decimal place), the
numerator of which is the amount of the Commitment of such Lender at such time,
subject to adjustment as provided in Section 2.15, and the denominator
of which is the amount of the Aggregate Commitments at such time; provided
that if the commitment of each Lender to make Loans and the obligation of the
L/C Issuer to make L/C Credit Extensions have been terminated pursuant to Section
8.02, then the Pro Rata Share of each Lender shall be determined based on
the Pro Rata Share of such Lender immediately prior to such termination and
after giving effect to any subsequent assignments made pursuant to the terms
hereof. The initial Pro Rata Share of each Lender is set forth opposite the
name of such Lender on Schedule 2.01 or in the Assignment and Assumption
pursuant to which such Lender becomes a party hereto, as applicable.

          “Register”
has the meaning set forth in Section 10.06(c).

          “Related
Parties” means, with respect to any Person, such Person’s Affiliates and
the partners, directors, officers, employees, agents and advisors of such
Person and of such Person’s Affiliates.

          “Reportable
Event” means any of the events set forth in Section 4043(c) of ERISA, other
than events for which the 30 day notice period has been waived.

          “Request
for Credit Extension” means (a) with respect to a Borrowing, conversion or
continuation of Loans, a Loan Notice, and (b) with respect to an L/C Credit
Extension, a Letter of Credit Application.

          “Required
Lenders” means, as of any date of determination, Lenders having more than
50% of the Aggregate Commitments or, if the commitment of each Lender to make
Loans and the obligation of the L/C Issuer to make L/C Credit Extensions have
been terminated pursuant to Section 8.02, Lenders holding in the
aggregate more than 50% of the
Total Outstandings (with the aggregate amount of each Lender’s risk
participation and funded participation in L/C Obligations being deemed “held”
by such Lender for purposes of this definition); provided that the
Commitment of, and the portion of the Total Outstandings held or deemed held
by, any Defaulting Lender shall be excluded for purposes of making a
determination of Required Lenders.

          “Responsible
Officer” means the chief executive officer, president, chief financial
officer, treasurer or assistant treasurer of the Borrower. Any document
delivered hereunder that is signed by a Responsible Officer shall be
conclusively presumed to have been authorized by all 

18

necessary corporate, partnership and/or other action on the part of the
Borrower and such Responsible Officer shall be conclusively presumed to have
acted on behalf of the Borrower.

          “Restricted
Payment” means any dividend or other distribution (whether in cash, securities
or other property) with respect to any capital stock or other equity interest
of the Borrower or any Subsidiary, or any payment (whether in cash, securities
or other property), including any sinking fund or similar deposit, on account
of the purchase, redemption, retirement, acquisition, cancellation or
termination of any such capital stock or other equity interest or of any
option, warrant or other right to acquire any such capital stock or other
equity interest.

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

          “SEC”
means the Securities and Exchange Commission, or any Governmental Authority
succeeding to any of its principal functions.

          “Shareholders’
Equity” means, as of any date of determination, consolidated shareholders’
equity of the Borrower and its Subsidiaries as of that date determined in
accordance with GAAP.

          “SPC” has the meaning specified in Section
10.06(h).

          “Subsidiary”
of a Person means a corporation, partnership, joint venture, limited liability
company or other business entity of which a majority of the shares of
securities or other interests having ordinary voting power for the election of
directors or other governing body (other than securities or interests having
such power only by reason of the happening of a contingency) are at the time
beneficially owned, or the management of which is otherwise controlled,
directly, or indirectly through one or more intermediaries, or both, by such
Person. Unless otherwise specified, all references herein to a “Subsidiary”
or to “Subsidiaries” shall refer to a Subsidiary or Subsidiaries of the
Borrower.

          “Swap
Contract” means (a) any and all rate swap transactions, basis swaps, credit
derivative transactions, forward rate transactions, commodity swaps, commodity
options, forward commodity contracts, equity or equity index swaps or options,
bond or bond price or bond index swaps or options or forward bond or forward
bond price or forward bond index transactions, interest rate options, forward
foreign exchange transactions, cap transactions, floor transactions, collar
transactions, currency swap transactions, cross-currency rate swap
transactions, currency options, spot contracts, or any other similar
transactions or any combination of any of the foregoing (including any options
to enter into any of the foregoing), whether or not any such transaction is
governed by or subject to any master agreement, and (b) any and all transactions
of any kind, and the related confirmations, which are subject to the terms and
conditions of, or governed by, any form of master agreement published by the
International Swaps and Derivatives Association, Inc., any International
Foreign Exchange Master Agreement, or any other master agreement (any such
master agreement, together with any related schedules, a “Master Agreement”),
including any such obligations or liabilities under any Master Agreement.

19

          “Swap
Termination Value” means, in respect of any one or more Swap Contracts,
after taking into account the effect of any legally enforceable netting
agreement relating to such Swap Contracts, (a) for any date on or after the
date such Swap Contracts have been closed out and termination value(s)
determined in accordance therewith, such termination value(s), and (b) for any
date prior to the date referenced in clause (a), the amount(s)
determined as the mark-to-market value(s) for such Swap Contracts, as
determined based upon one or more mid-market or other readily available
quotations provided by any recognized dealer in such Swap Contracts (which may
include a Lender or any Affiliate of a Lender).

          “Synthetic
Lease Obligation” means the monetary obligation of a Person under (a) a so-called
synthetic, off-balance sheet or tax retention lease, or (b) an agreement for
the use or possession of property creating obligations that do not appear on
the balance sheet of such Person but which, upon the insolvency or bankruptcy
of such Person, would be characterized as the indebtedness of such Person
(without regard to accounting treatment). 

          “Taxes”
has the meaning set forth in Section 3.01(a).

          “Total
Outstandings” means the aggregate Outstanding Amount of all Loans and all
L/C Obligations.

          “Type”
means, with respect to a Loan, its character as a Base Rate Loan or a
Eurodollar Rate Loan.

          “United
States” and “U.S.” mean the United States of America.

          “Unreimbursed
Amount” has the meaning set forth in Section 2.03(c)(i).

          “Wells
Fargo” means Wells Fargo Bank, N.A. and its successors. 

          “Wells
Fargo Securities” means Wells Fargo Securities, LLC and its successors. 

          “Wells
Fargo Fee Letter” means the letter agreement dated as of November 22, 2010
among the Borrower, Wells Fargo and Wells Fargo Securities. 

          1.02     Other
Interpretive Provisions. With reference to this Agreement and each
other Loan Document, unless otherwise specified herein or in such other Loan Document:

          (a)     The
meanings of defined terms are equally applicable to the singular and plural
forms of the defined terms.

	
  

 	
  

 
	
  

 	
  (b)     (i)     The
 words “herein,” “hereto,” “hereof” and “hereunder”
 and words of similar import when used in any Loan Document shall refer to
 such Loan Document as a whole and not to any particular provision thereof.

 
	
  

 	
  

 
	
  

 	
           (ii)      Article,
 Section, Exhibit and Schedule references are to the Loan Document in which
 such reference appears.

 
	
  

 	
  

 
	
  

 	
           (iii)     The
 term “including” is by way of example and not limitation.

 

20

	
  

 	
  

 
	
  

 	
           (iv)    The
 term “documents” includes any and all instruments, documents,
 agreements, certificates, notices, reports, financial statements and other
 writings, however evidenced, whether in physical or electronic form.

 

          (c)     In
the computation of periods of time from a specified date to a later specified
date, the word “from” means “from and including”; the words “to”
and “until” each mean “to but excluding”; and the word “through”
means “to and including”.

          (d)     Section
headings herein and in the other Loan Documents are included for convenience of
reference only and shall not affect the interpretation of this Agreement or any
other Loan Document.

          1.03   Accounting
Terms. (a) All accounting terms not specifically or completely
defined herein shall be construed in conformity with, and all financial data
(including financial ratios and other financial calculations) required to be
submitted pursuant to this Agreement shall be prepared in conformity with, GAAP
applied on a consistent basis, as in effect from time to time, applied in a
manner consistent with that used in preparing the Audited Financial Statements,
except as otherwise specifically prescribed herein. Notwithstanding the
foregoing, for purposes of determining compliance with any covenant (including
the computation of any financial covenant) contained herein, Indebtedness of
the Borrower and its Subsidiaries shall be deemed to be carried at 100% of the
outstanding principal amount thereof, and the effects of FASB ASC 825 on
financial liabilities shall be disregarded.

          (b)     If
at any time any change in GAAP would affect the computation of any financial
ratio or requirement set forth in any Loan Document, and either the Borrower or
the Required Lenders shall so request, the Administrative Agent, the Lenders
and the Borrower shall negotiate in good faith to amend such ratio or
requirement to preserve the original intent thereof in light of such change in
GAAP (subject to the approval of the Required Lenders); provided that,
until so amended, (i) such ratio or requirement shall continue to be computed
in accordance with GAAP prior to such change therein and (ii) the Borrower shall
provide to the Administrative Agent and the Lenders financial statements and
other documents required under this Agreement or as reasonably requested
hereunder setting forth a reconciliation between calculations of such ratio or
requirement made before and after giving effect to such change in GAAP.

          1.04   Rounding.
Any financial ratios required to be maintained by the Borrower pursuant to this
Agreement shall be calculated by dividing the appropriate component by the
other component, carrying the result to one place more than the number of
places by which such ratio is expressed herein and rounding the result up or
down to the nearest number (with a rounding-up if there is no nearest number).

          1.05   References
to Agreements and Laws. Unless otherwise expressly provided herein,
(a) references to Organization Documents, agreements (including the Loan
Documents) and other contractual instruments shall be deemed to include all
subsequent amendments, restatements, extensions, supplements and other
modifications thereto, but only to the extent that such amendments,
restatements, extensions, supplements and other modifications are not
prohibited by any Loan Document; and (b) references to any Law shall include
all statutory and 

21

regulatory provisions consolidating, amending, replacing, supplementing
or interpreting such Law.

          1.06     Times
of Day. Unless otherwise specified, all references herein to times
of day shall be references to Eastern
time (daylight or standard, as applicable).

          1.07     Letter
of Credit Amounts. Unless otherwise specified herein, the amount of
a Letter of Credit at any time shall be deemed to be the stated amount of such
Letter of Credit in effect at such time; provided, however, that
with respect to any Letter of Credit that, by its terms or the terms of any
Issuer Documents related thereto, provides for one or more automatic increases
in the stated amount thereof, the amount of such Letter of Credit shall be
deemed to be the maximum stated amount of such Letter of Credit after giving
effect to all such increases, whether or not such maximum stated amount is in
effect at such time.

ARTICLE II.

THE COMMITMENTS AND CREDIT EXTENSIONS

          2.01     Loans.
Subject to the terms and conditions set forth herein, each Lender severally
agrees to make loans (each such loan, a “Loan”) to the Borrower from
time to time, on any Business Day during the Availability Period, in an
aggregate amount not to exceed at any time outstanding the amount of such Lender’s
Commitment; provided, however, that after giving effect to any
Borrowing, (i) the Total Outstandings shall not exceed the Aggregate
Commitments, and (ii) the aggregate Outstanding Amount of the Loans of
any Lender, plus such Lender’s Pro Rata Share of the Outstanding Amount
of all L/C Obligations shall not exceed such Lender’s Commitment. Within the
limits of each Lender’s Commitment, and subject to the other terms and
conditions hereof, the Borrower may borrow under this Section 2.01,
prepay under Section 2.04, and reborrow under this Section 2.01.
Loans may be Base Rate Loans or Eurodollar Rate Loans, as further provided
herein.

          2.02     Borrowings,
Conversions and Continuations of Loans. 

          (a)     Each
Borrowing, each conversion of Loans
from one Type to the other, and each continuation of Eurodollar Rate Loans
shall be made upon the Borrower’s irrevocable notice to the Administrative
Agent, which may be given by telephone. Each such notice must be received by
the Administrative Agent not later than 11:00 a.m., (i) three Business Days
prior to the requested date of any Borrowing of, conversion to or continuation
of Eurodollar Rate Loans or of any conversion of Eurodollar Rate Loans to Base
Rate Loans, and (ii) on the requested date of any Borrowing of Base Rate Loans. Each telephonic notice by the
Borrower pursuant to this Section 2.02(b) must be confirmed promptly by
delivery to the Administrative Agent of a written Loan Notice, appropriately completed and signed by a Responsible
Officer. Each Borrowing of, conversion to or continuation of Eurodollar Rate
Loans shall be in a principal amount of $5,000,000 or a whole multiple of
$1,000,000 in excess thereof. Except as provided in Section 2.03(c),
each Borrowing of or conversion to Base Rate Loans shall be in a principal
amount of $500,000 or a whole multiple of $100,000 in excess thereof. Each Loan Notice (whether telephonic or
written) shall specify (i) whether the Borrower is requesting a Borrowing, a
conversion of Loans from one Type to the other, or a continuation of Eurodollar
Rate Loans, (ii) the requested date of the Borrowing, conversion or
continuation, as the case may be (which shall 

22

be a Business Day), (iii) the principal amount of Loans to be borrowed,
converted or continued, (iv) the Type of Loans to be borrowed or to which
existing Loans are to be converted, and (v) if applicable, the duration of the
Interest Period with respect thereto. If the Borrower fails to specify a Type
of Loan in a Loan Notice or if the Borrower fails to give a timely notice
requesting a conversion or continuation, then the applicable Loans shall be
made as, or converted to, Base Rate Loans. Any such automatic conversion to
Base Rate Loans shall be effective as of the last day of the Interest Period
then in effect with respect to the applicable Eurodollar Rate Loans. If the
Borrower requests a Borrowing of, conversion to, or continuation of Eurodollar
Rate Loans in any such Loan Notice, but fails to specify an Interest Period, it
will be deemed to have specified an Interest Period of one month.

          (b)     Following
receipt of a Loan Notice, the Administrative Agent shall promptly notify each
Lender of the amount of its Pro Rata Share of the applicable Loans, and if no
timely notice of a conversion or continuation is provided by the Borrower, the
Administrative Agent shall notify each Lender of the details of any automatic
conversion to Base Rate Loans described in the preceding subsection. In the
case of a Borrowing, each Lender shall make the amount of its Loan available to
the Administrative Agent in immediately available funds at the Administrative
Agent’s Office not later than 1:00 p.m. on the Business Day specified in the
applicable Loan Notice. Upon satisfaction of the applicable conditions set
forth in Section 4.02 (and, if such Borrowing is the initial Credit
Extension, Section 4.01), the Administrative Agent shall make all funds
so received available to the Borrower in like funds as received by the
Administrative Agent either by (i) crediting the account of the Borrower on the
books of Bank of America with the amount of such funds or (ii) wire transfer of
such funds, in each case in accordance with instructions provided to (and
reasonably acceptable to) the Administrative Agent by the Borrower; provided,
however, that if, on the date the Loan Notice with respect to such
Borrowing is given by the Borrower, there are L/C Borrowings outstanding, then
the proceeds of such Borrowing, first, shall be applied to the payment
in full of any such L/C Borrowings, and second, shall be made available
to the Borrower as provided above.

          (c)     Except
as otherwise provided herein, a Eurodollar Rate Loan may be continued or
converted only on the last day of an Interest Period for such Eurodollar Rate
Loan. During the existence of a Default, no Loans may be requested as,
converted to or continued as Eurodollar Rate Loans without the consent of the
Required Lenders.

          (d)     The
Administrative Agent shall promptly notify the Borrower and the Lenders of the
interest rate applicable to any Interest Period for Eurodollar Rate Loans upon
determination of such interest rate. The determination of the Eurodollar Rate
by the Administrative Agent shall be conclusive in the absence of manifest error.
At any time that Base Rate Loans are outstanding, the Administrative Agent
shall notify the Borrower and the Lenders of any change in Bank of America’s
prime rate used in determining the Base Rate promptly following the public
announcement of such change.

          (e)     After
giving effect to all Borrowings, all conversions of Loans from one Type to the
other, and all continuations of Loans as the same Type, there shall not be more
than ten Interest Periods in
effect with respect to Loans.

23

          2.03     Letters
of Credit.

          (a)     The
Letter of Credit Commitment.

	
  

 	
  

 	
  

 
	
  

 	
           (i)     Subject
 to the terms and conditions set forth herein, (A) the L/C Issuer agrees, in
 reliance upon the agreements of the other Lenders set forth in this Section
 2.03, (1) from time to time on any Business Day during the period from
 the Closing Date until the Letter of Credit Expiration Date, to issue Letters
 of Credit for the account of the Borrower, and to amend Letters of Credit
 previously issued by it, in accordance with subsection (b) below, and
 (2) to honor drafts under the Letters of Credit; and (B) the Lenders
 severally agree to participate in Letters of Credit issued for the account of
 the Borrower; provided that the L/C Issuer shall not be obligated to
 make any L/C Credit Extension with respect to any Letter of Credit, and no
 Lender shall be obligated to participate in any Letter of Credit if as of the
 date of such L/C Credit Extension, (x) the Total Outstandings would exceed
 the Aggregate Commitments, (y) the aggregate Outstanding Amount of the Loans
 of any Lender, plus such Lender’s Pro Rata Share of the Outstanding
 Amount of all L/C Obligations would exceed such Lender’s Commitment, or (z)
 the Outstanding Amount of the L/C Obligations would exceed the Letter of
 Credit Sublimit. Within the foregoing limits, and subject to the terms and
 conditions hereof, the Borrower’s ability to obtain Letters of Credit shall
 be fully revolving, and accordingly the Borrower may, during the foregoing
 period, obtain Letters of Credit to replace Letters of Credit that have
 expired or that have been drawn upon and reimbursed.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii)    The
 L/C Issuer shall be under no obligation to issue any Letter of Credit if:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (A)    any
 order, judgment or decree of any Governmental Authority or arbitrator shall
 by its terms purport to enjoin or restrain the L/C Issuer from issuing such
 Letter of Credit, or any Law applicable to the L/C Issuer or any request or
 directive (whether or not having the force of law) from any Governmental
 Authority with jurisdiction over the L/C Issuer shall prohibit, or request
 that the L/C Issuer refrain from, the issuance of letters of credit generally
 or such Letter of Credit in particular or shall impose upon the L/C Issuer
 with respect to such Letter of Credit any restriction, reserve or capital
 requirement (for which the L/C Issuer is not otherwise compensated hereunder)
 not in effect on the Closing Date, or shall impose upon the L/C Issuer any
 unreimbursed loss, cost or expense which was not applicable on the Closing
 Date and which the L/C Issuer in good faith deems material to it; 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (B)    the
 expiry date of such requested Letter of Credit would occur more than twelve
 months after the date of issuance, unless the Required Lenders have approved
 such expiry date;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (C)    the
 expiry date of such requested Letter of Credit would occur after the Letter
 of Credit Expiration Date, unless all the Lenders have approved such expiry
 date;

 

24

	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (D)     the
 issuance of such Letter of Credit would violate one or more policies of the
 L/C Issuer applicable to letters of credit generally; 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (E)     such
 Letter of Credit is in an initial amount less than $500,000 or is to be
 denominated in a currency other than Dollars; or

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (F)     any
 Lender is at that time a Defaulting Lender, unless the L/C Issuer has entered
 into arrangements, including the delivery of Cash Collateral, satisfactory to
 the L/C Issuer (in its sole discretion) with the Borrower or such Lender to
 eliminate the L/C Issuer’s Fronting Exposure (after giving effect to Section
 2.15(a)(iv)) with respect to the Defaulting Lender arising from either
 the Letter of Credit then proposed to be issued or that Letter of Credit and
 all other L/C Obligations as to which the L/C Issuer has Fronting Exposure,
 as it may elect in its sole discretion.

 
	
  

 	
  

 	
  

 
	
  

 	
           (iii)   The
 L/C Issuer shall be under no obligation to amend any Letter of Credit if (A) the
 L/C Issuer would have no obligation at such time to issue such Letter of
 Credit in its amended form under the terms hereof, or (B) the beneficiary of
 such Letter of Credit does not accept the proposed amendment to such Letter
 of Credit.

 
	
  

 	
  

 
	
  

 	
 (b)     Procedures
 for Issuance and Amendment of Letters of Credit.

 
	
  

 	
  

 
	
  

 	
           (i)     Each
 Letter of Credit shall be issued or amended, as the case may be, upon the
 request of the Borrower delivered to the L/C Issuer (with a copy to the
 Administrative Agent) in the form of a Letter of Credit Application,
 appropriately completed and signed by a Responsible Officer. Such Letter of
 Credit Application must be received by the L/C Issuer and the Administrative
 Agent not later than 11:00 a.m. at least two Business Days (or such later
 date and time as the Administrative Agent and the L/C Issuer may agree in a
 particular instance in their sole discretion) prior to the proposed issuance
 date or date of amendment, as the case may be. In the case of a request for
 an initial issuance of a Letter of Credit, such Letter of Credit Application
 shall specify in form and detail satisfactory to the L/C Issuer: (A) the
 proposed issuance date of the requested Letter of Credit (which shall be a
 Business Day); (B) the amount thereof; (C) the expiry date thereof; (D) the
 name and address of the beneficiary thereof; (E) the documents to be
 presented by such beneficiary in case of any drawing thereunder; (F) the full
 text of any certificate to be presented by such beneficiary in case of any drawing
 thereunder; and (G) the purpose and nature of the requested Letter of Credit;
 and (H) such other matters as the L/C Issuer may require. In the case of a
 request for an amendment of any outstanding Letter of Credit, such Letter of
 Credit Application shall specify in form and detail satisfactory to the L/C
 Issuer (A) the Letter of Credit to be amended; (B) the proposed date of
 amendment thereof (which shall be a Business Day); (C) the nature of the
 proposed amendment; and (D) such other matters as the L/C Issuer may require.
 Additionally, the Borrower shall furnish to the L/C Issuer and the
 Administrative Agent such other documents and information pertaining to such
 requested Letter of Credit issuance or amendment, including any Issuer
 Documents, as the L/C Issuer or the Administrative Agent may require.

 

25

	
  

 	
  

 
	
  

 	
           (ii)     Promptly
 after receipt of any Letter of Credit Application, the L/C Issuer will
 confirm with the Administrative Agent (by telephone or in writing) that the
 Administrative Agent has received a copy of such Letter of Credit Application
 from the Borrower and, if not, the L/C Issuer will provide the Administrative
 Agent with a copy thereof. Unless the L/C Issuer has received written notice
 from any Lender or the Administrative Agent, at least one Business Day prior
 to the requested date of issuance or amendment of the applicable Letter of
 Credit, that one or more applicable conditions contained in Article IV
 shall not then be satisfied, then, subject to the terms and conditions hereof,
 the L/C Issuer shall, on the requested date, issue a Letter of Credit for the
 account of the Borrower or enter into the applicable amendment, as the case
 may be, in each case in accordance with the L/C Issuer’s usual and customary
 business practices. Immediately upon the issuance of each Letter of Credit,
 each Lender shall be deemed to, and hereby irrevocably and unconditionally
 agrees to, purchase from the L/C Issuer a risk participation in such Letter
 of Credit in an amount equal to the product of such Lender’s Pro Rata Share times
 the amount of such Letter of Credit.

 
	
  

 	
  

 
	
  

 	
           (iii)    Promptly
 after its delivery of any Letter of Credit or any amendment to a Letter of
 Credit to an advising bank with respect thereto or to the beneficiary thereof,
 the L/C Issuer will also deliver to the Borrower and the Administrative Agent
 a true and complete copy of such Letter of Credit or amendment.

 
	
  

 	
  

 
	
  

 	
 (c)     Drawings and Reimbursements;
 Funding of Participations.

 
	
  

 	
  

 
	
  

 	
           (i)      Upon
 receipt from the beneficiary of any Letter of Credit of any notice of a
 drawing under such Letter of Credit, the L/C Issuer shall notify the Borrower
 and the Administrative Agent thereof. Not later than 11:00 a.m. on the date
 of any payment by the L/C Issuer under a Letter of Credit (each such date, an
 “Honor Date”), the Borrower shall reimburse the L/C Issuer through the
 Administrative Agent in an amount equal to the amount of such drawing. If the
 Borrower fails to so reimburse the L/C Issuer by such time, the Administrative
 Agent shall promptly notify each Lender of the Honor Date, the amount of the
 unreimbursed drawing (the “Unreimbursed Amount”), and the amount of
 such Lender’s Pro Rata Share thereof. In such event, the Borrower shall be
 deemed to have requested a Borrowing of Base Rate Loans to be disbursed on
 the Honor Date in an amount equal to the Unreimbursed Amount, without regard
 to the minimum and multiples specified in Section 2.02 for the
 principal amount of Base Rate Loans, but subject to the amount of the unutilized
 portion of the Aggregate Commitments and the conditions set forth in Section
 4.02 (other than the delivery of a Loan Notice). Any notice given by the
 L/C Issuer or the Administrative Agent pursuant to this Section 2.03(c)(i)
 may be given by telephone if immediately confirmed in writing; provided
 that the lack of such an immediate confirmation shall not affect the
 conclusiveness or binding effect of such notice.

 
	
  

 	
  

 
	
  

 	
           (ii)     Each
 Lender shall upon any notice pursuant to Section 2.03(c)(i) make funds
 available (and the Administrative Agent may apply Cash Collateral provided
 for this purpose) for the account of the L/C Issuer at the Administrative
 Agent’s Office in an amount equal to its Pro Rata Share of the Unreimbursed
 Amount not later than 1:00 p.m. on the Business Day specified in such notice
 by the Administrative Agent, whereupon, 

 

26

	
  

 	
  

 
	
  

 	
 subject to the provisions of Section 2.03(c)(iii), each Lender
 that so makes funds available shall be deemed to have made a Base Rate Loan
 to the Borrower in such amount. The Administrative Agent shall remit the
 funds so received to the L/C Issuer.

 
	
  

 	
  

 
	
  

 	
           (iii)     With
 respect to any Unreimbursed Amount that is not fully refinanced by a
 Borrowing of Base Rate Loans because the conditions set forth in Section
 4.02 cannot be satisfied or for any other reason, the Borrower shall be
 deemed to have incurred from the L/C Issuer an L/C Borrowing in the amount of
 the Unreimbursed Amount that is not so refinanced, which L/C Borrowing shall
 be due and payable on demand (together with interest) and shall bear interest
 at the Default Rate. In such event, each Lender’s payment to the
 Administrative Agent for the account of the L/C Issuer pursuant to Section
 2.03(c)(ii) shall be deemed payment in respect of its participation in
 such L/C Borrowing and shall constitute an L/C Advance from such Lender in
 satisfaction of its participation obligation under this Section 2.03.

 
	
  

 	
  

 
	
  

 	
           (iv)     Until
 each Lender funds its Loan or L/C Advance pursuant to this Section 2.03(c)
 to reimburse the L/C Issuer for any amount drawn under any Letter of Credit,
 interest in respect of such Lender’s Pro Rata Share of such amount shall be
 solely for the account of the L/C Issuer.

 
	
  

 	
  

 
	
  

 	
           (v)      Each
 Lender’s obligation to make Loans or L/C Advances to reimburse the L/C Issuer
 for amounts drawn under Letters of Credit, as contemplated by this Section
 2.03(c), shall be absolute and unconditional and shall not be affected by
 any circumstance, including (A) any set-off, counterclaim, recoupment,
 defense or other right which such Lender may have against the L/C Issuer, the
 Borrower or any other Person for any reason whatsoever; (B) the occurrence or
 continuance of a Default, or (C) any other occurrence, event or condition,
 whether or not similar to any of the foregoing; provided, however,
 that each Lender’s obligation to make Loans pursuant to this Section
 2.03(c) is subject to the conditions set forth in Section 4.02
 (other than delivery by the Borrower of a Loan Notice). No such making of an
 L/C Advance shall relieve or otherwise impair the obligation of the Borrower
 to reimburse the L/C Issuer for the amount of any payment made by the L/C
 Issuer under any Letter of Credit, together with interest as provided herein.

 
	
  

 	
  

 
	
  

 	
           (vi)     If
 any Lender fails to make available to the Administrative Agent for the
 account of the L/C Issuer any amount required to be paid by such Lender
 pursuant to the foregoing provisions of this Section 2.03(c) by the
 time specified in Section 2.03(c)(ii), then, without limiting the
 other provisions of this Agreement, the L/C Issuer shall be entitled to
 recover from such Lender (acting through the Administrative Agent), on
 demand, such amount with interest thereon for the period from the date such
 payment is required to the date on which such payment is immediately
 available to the L/C Issuer at a rate per annum equal to the greater of the
 Federal Funds Rate and a rate determined by the L/C Issuer in accordance with
 banking industry rules on interbank compensation, plus any
 administrative, processing or similar fees customarily charged by the L/C
 Issuer in connection with the foregoing. If such Lender pays such amount
 (with interest and fees as aforesaid), the amount so paid shall constitute
 such Lender’s Loan included in the relevant Borrowing or L/C Advance in
 respect of the relevant L/C Borrowing, as the case 

 

27

	
  

 	
  

 
	
  

 	
 may be. A certificate of the L/C Issuer submitted to any Lender
 (through the Administrative Agent) with respect to any amounts owing under
 this clause (vi) shall be conclusive absent manifest error.

 
	
  

 	
  

 
	
  

 	
 (d)     Repayment of Participations. 

 
	
  

 	
  

 
	
  

 	
           (i)     At
 any time after the L/C Issuer has made a payment under any Letter of Credit
 and has received from any Lender such Lender’s L/C Advance in respect of such
 payment in accordance with Section 2.03(c), if the Administrative
 Agent receives for the account of the L/C Issuer any payment in respect of
 the related Unreimbursed Amount or interest thereon (whether directly from the
 Borrower or otherwise, including proceeds of Cash Collateral applied thereto
 by the Administrative Agent), the Administrative Agent will distribute to
 such Lender its Pro Rata Share thereof in the same funds as those received by
 the Administrative Agent.

 
	
  

 	
  

 
	
  

 	
           (ii)     If
 any payment received by the Administrative Agent for the account of the L/C
 Issuer pursuant to Section 2.03(c)(i) is required to be returned under
 any of the circumstances described in Section 10.05 (including
 pursuant to any settlement entered into by the L/C Issuer in its discretion),
 each Lender shall pay to the Administrative Agent for the account of the L/C
 Issuer its Pro Rata Share thereof on demand of the Administrative Agent, plus
 interest thereon from the date of such demand to the date such amount is
 returned by such Lender, at a rate per annum equal to the Federal Funds Rate
 from time to time in effect. The obligations of the Lenders under this clause
 shall survive the payment in full of the Obligations and the termination of
 this Agreement.

 

          (e)     Obligations
Absolute. The obligation of
the Borrower to reimburse the L/C Issuer for each drawing under each Letter of
Credit and to repay each L/C Borrowing shall be absolute, unconditional and
irrevocable, and shall be paid strictly in accordance with the terms of this
Agreement under all circumstances, including the following:

	
  

 	
  

 
	
  

 	
           (i)     any
 lack of validity or enforceability of such Letter of Credit, this Agreement,
 or any other Loan Document;

 
	
  

 	
  

 
	
  

 	
           (ii)    the
 existence of any claim, counterclaim, set-off, defense or other right that
 the Borrower may have at any time against any beneficiary or any transferee
 of such Letter of Credit (or any Person for whom any such beneficiary or any
 such transferee may be acting), the L/C Issuer or any other Person, whether
 in connection with this Agreement, the transactions contemplated hereby or by
 such Letter of Credit or any agreement or instrument relating thereto, or any
 unrelated transaction;

 
	
  

 	
  

 
	
  

 	
           (iii)   any
 draft, demand, certificate or other document presented under such Letter of
 Credit proving to be forged, fraudulent, invalid or insufficient in any
 respect or any statement therein being untrue or inaccurate in any respect;
 or any loss or delay in the transmission or otherwise of any document
 required in order to make a drawing under such Letter of Credit;

 
	
  

 	
  

 
	
  

 	
           (iv)    any
 payment by the L/C Issuer under such Letter of Credit against presentation of
 a draft or certificate that does not strictly comply with the terms of such 

 

28

	
  

 	
  

 
	
  

 	
 Letter of Credit; or any payment made by the L/C Issuer under such
 Letter of Credit to any Person purporting to be a trustee in bankruptcy,
 debtor-in-possession, assignee for the benefit of creditors, liquidator,
 receiver or other representative of or successor to any beneficiary or any
 transferee of such Letter of Credit, including any arising in connection with
 any proceeding under any Debtor Relief Law; or

 
	
  

 	
  

 
	
  

 	
           (v)     any
 other circumstance or happening whatsoever, whether or not similar to any of
 the foregoing, including any other circumstance that might otherwise
 constitute a defense available to, or a discharge of, the Borrower.

 

          The
Borrower shall promptly examine a copy of each Letter of Credit and each
amendment thereto that is delivered to it and, in the event of any claim of
noncompliance with the Borrower’s instructions or other irregularity, the
Borrower will immediately notify the L/C Issuer. The Borrower shall be conclusively
deemed to have waived any such claim against the L/C Issuer and its
correspondents unless such notice is given as aforesaid.

          (f)     Role
of L/C Issuer. Each Lender and
the Borrower agree that, in paying any drawing under a Letter of Credit, the
L/C Issuer shall not have any responsibility to obtain any document (other than
any sight draft, certificates and documents expressly required by the Letter of
Credit) or to ascertain or inquire as to the validity or accuracy of any such
document or the authority of the Person executing or delivering any such
document. None of the L/C Issuer, the Administrative Agent, any of their
respective Related Parties nor any correspondent, participant or assignee of
the L/C Issuer shall be liable to any Lender for (i) any action taken or
omitted in connection herewith at the request or with the approval of the
Lenders or the Required Lenders, as applicable; (ii) any action taken or
omitted in the absence of gross negligence or willful misconduct; or (iii) the
due execution, effectiveness, validity or enforceability of any document or
instrument related to any Letter of Credit or Issuer Document. The Borrower
hereby assumes all risks of the acts or omissions of any beneficiary or
transferee with respect to its use of any Letter of Credit; provided, however,
that this assumption is not intended to, and shall not, preclude the Borrower’s
pursuing such rights and remedies as it may have against the beneficiary or
transferee at law or under any other agreement. None of the L/C Issuer, the
Administrative Agent, any of their respective Related Parties nor any
correspondent, participant or assignee of the L/C Issuer shall be liable or
responsible for any of the matters described in clauses (i) through (v)
of Section 2.03(e); provided, however, that anything in
such clauses to the contrary notwithstanding, the Borrower may have a claim
against the L/C Issuer, and the L/C Issuer may be liable to the Borrower, to
the extent, but only to the extent, of any direct, as opposed to consequential
or exemplary, damages suffered by the Borrower which the Borrower proves were
caused by the L/C Issuer’s willful misconduct or gross negligence or the L/C
Issuer’s willful failure to pay under any Letter of Credit after the presentation
to it by the beneficiary or transferee at law or under any other agreement of a
sight draft and certificate(s) strictly complying with the terms and conditions
of a Letter of Credit. In
furtherance and not in limitation of the foregoing, the L/C Issuer may accept
documents that appear on their face to be in order, without responsibility for
further investigation, regardless of any notice or information to the contrary,
and the L/C Issuer shall not be responsible for the validity or sufficiency of
any instrument transferring or assigning or purporting to transfer or assign a
Letter of Credit or the rights or benefits thereunder or proceeds thereof, in
whole or in part, which may prove to be invalid or ineffective for any reason.

29

          (g)     Applicability
of ISP. Unless otherwise
expressly agreed by the L/C Issuer and the Borrower when a Letter of Credit is
issued, the rules of the ISP shall apply to each Letter of Credit.

          (h)     Letter
of Credit Fees. The Borrower shall pay to the Administrative Agent for the
account of each Lender in accordance with its Pro Rata Share a Letter of Credit
fee (the “Letter of Credit Fee”)for each Letter of Credit equal to the Applicable Rate times the
daily maximum amount available to be drawn under such Letter of Credit; provided,
however, any Letter of Credit Fees otherwise payable for the account of a
Defaulting Lender with respect to any Letter of Credit as to which such
Defaulting Lender has not provided Cash Collateral satisfactory to the L/C
Issuer pursuant to this Section 2.03 or Section 2.15 shall be
payable, to the maximum extent permitted by applicable Law, to the other
Lenders in accordance with the upward adjustments in their respective Pro Rata
Share allocable to such Letter of Credit pursuant to Section 2.15(a)(iv),
with the balance of such fee, if any, payable to the L/C Issuer for its own
account unless the Borrower has provided Cash Collateral pursuant to Section
2.14(a), in which case the balance thereof shall be remitted to the
Borrower. For purposes of computing the daily amount available to be drawn
under any Letter of Credit, the amount of such Letter of Credit shall be
determined in accordance with Section 1.07. Letter of Credit Fees shall
be (i) computed on a quarterly basis in arrears and (ii) due and payable on the
first Business Day after the end of each March, June, September and December, commencing with the first
such date to occur after the issuance of such Letter of Credit, on the Letter
of Credit Expiration Date and thereafter on demand. If there is any change in
the Applicable Rate during any quarter, the daily amount available to be drawn
under each Letter of Credit shall be computed and multiplied by the Applicable
Rate separately for each period during such quarter that such Applicable Rate
was in effect. Notwithstanding anything to the contrary contained herein, upon
the request of the Required Lenders, while any Event of Default exists, all
Letter of Credit Fees shall accrue at the Default Rate.

          (i)      Fronting
Fee and Documentary and Processing Charges Payable to L/C Issuer. The Borrower shall pay directly to the L/C
Issuer for its own account a fronting fee with respect to each Letter of
Credit, at the rate per annum specified in the Fee Letter, computed on the
daily amount available to be drawn under such Letter of Credit and on a
quarterly basis in arrears, and due and payable on the first Business Day after
the end of each March, June, September
and December, commencing with the first such date to occur after the
issuance of such Letter of Credit, on the Letter of Credit Expiration Date and
thereafter on demand until no amounts remain to be drawn under such Letter of
Credit. For purposes of computing the daily amount available to be drawn under
any Letter of Credit, the amount of such Letter of Credit shall be determined
in accordance with Section 1.07. In addition, the Borrower shall pay
directly to the L/C Issuer for its own account the customary issuance,
presentation, amendment and other processing fees, and other standard costs and
charges, of the L/C Issuer relating to letters of credit as from time to time
in effect. Such customary fees and standard costs and charges are due and
payable on demand and are nonrefundable.

          (j)      Conflict
with Issuer Documents. In the event of any conflict between the terms
hereof and the terms of any Issuer Document, the terms hereof shall control.

30

          2.04     Prepayments.

          (a)       The
Borrower may, upon notice to the Administrative Agent, at any time or from time
to time voluntarily prepay Loans in whole or in part without premium or
penalty; provided that (i) such notice must be received by the
Administrative Agent not later than 12:00 noon; (A) three Business Days prior
to any date of prepayment of Eurodollar Rate Loans and (B) on the date of
prepayment of Base Rate Loans; (ii) any prepayment of Eurodollar Rate Loans
shall be in a principal amount of $5,000,000 or a whole multiple of $1,000,000
in excess thereof; and (iii) any prepayment of Base Rate Loans shall be in a
principal amount of $500,000 or a whole multiple of $100,000 in excess thereof
or, in each case, if less, the entire principal amount thereof then
outstanding. Each such notice shall specify the date and amount of such prepayment
and the Type(s) of Loans to be prepaid. The Administrative Agent will promptly
notify each Lender of its receipt of each such notice, and of the amount of
such Lender’s Pro Rata Share of such prepayment. If such notice is given by the
Borrower, the Borrower shall make such prepayment and the payment amount
specified in such notice shall be due and payable on the date specified
therein. Any prepayment of a Eurodollar Rate Loan shall be accompanied by all
accrued interest thereon, together with any additional amounts required
pursuant to Section 3.05. Each such prepayment shall be applied to the
Loans of the Lenders in accordance with their respective Pro Rata Shares.

          (b)       If
for any reason the Total Outstandings at any time exceed the Aggregate
Commitments then in effect, the Borrower shall immediately prepay Loans and/or
Cash Collateralize the L/C Obligations in an aggregate amount equal to such
excess; provided, however, that the Borrower shall not be
required to Cash Collateralize the L/C Obligations pursuant to this Section
2.04(b) unless after the prepayment in full of the Loans the Total
Outstandings exceed the Aggregate Commitments then in effect.

          2.05     Termination
or Reduction of Commitments. The Borrower may, upon notice to the
Administrative Agent, terminate the Aggregate Commitments, or from time to time
permanently reduce the Aggregate Commitments; provided that (i) any such
notice shall be received by the Administrative Agent not later than 12:00 noon
five Business Days prior to the date of termination or reduction, (ii) any such
partial reduction shall be in an aggregate amount of $5,000,000 or any whole
multiple of $1,000,000 in excess thereof, (iii) the Borrower shall not
terminate or reduce the Aggregate Commitments if, after giving effect thereto
and to any concurrent prepayments hereunder, the Total Outstandings would
exceed the Aggregate Commitments, and (iv) if, after giving effect to any
reduction of the Aggregate Commitments, the Letter of Credit Sublimit exceeds
the amount of the Aggregate Commitments, the Letter of Credit Sublimit shall be
automatically reduced by the amount of such excess. The Administrative Agent
will promptly notify the Lenders of any such notice of termination or reduction
of the Aggregate Commitments. Any reduction of the Aggregate Commitments shall
be applied to the Commitment of each Lender according to its Pro Rata Share.
All facility and utilization
fees accrued until the effective date of any termination of the Aggregate
Commitments shall be paid on the effective date of such termination.

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          2.06     Repayment
of Loans. The Borrower shall repay to the Lenders on the Maturity
Date the aggregate principal amount of Loans outstanding on such date.

          2.07     Interest.

          (a)       Subject
to the provisions of subsection (b) below, (i) each Eurodollar Rate Loan
shall bear interest on the outstanding principal amount thereof for each
Interest Period at a rate per annum equal to the Eurodollar Rate for such
Interest Period plus the Applicable Rate; and (ii) each Base Rate Loan
shall bear interest on the outstanding principal amount thereof from the
applicable borrowing date at a rate per annum equal to the Base Rate.

          (b)       If
any amount payable by the Borrower under any Loan Document is not paid when due
(without regard to any applicable grace periods), whether at stated maturity,
by acceleration or otherwise, such amount shall thereafter bear interest at a
fluctuating interest rate per annum at all times equal to the Default Rate to
the fullest extent permitted by applicable Laws. Furthermore, if required by
the Required Lenders and after written notice to the Borrower, while any Event
of Default exists, the Borrower shall pay interest on the principal amount of
all outstanding Obligations hereunder at a fluctuating interest rate per annum
at all times equal to the Default Rate to the fullest extent permitted by
applicable Laws. Accrued and unpaid interest on past due amounts (including
interest on past due interest) shall be due and payable upon demand.

          (c)       Interest
on each Loan shall be due and payable in arrears on each Interest Payment Date
applicable thereto and at such other times as may be specified herein. Interest
hereunder shall be due and payable in accordance with the terms hereof before
and after judgment, and before and after the commencement of any proceeding
under any Debtor Relief Law.

          2.08     Fees.
In addition to certain fees described in subsections (h) and (i)
of Section 2.03:

          (a)       Facility
Fee. The Borrower shall pay to the Administrative Agent for the account of
each Lender in accordance with its Pro Rata Share, a facility fee equal to the
Applicable Rate times the actual daily amount of the Aggregate Commitments
(or, if the Aggregate Commitments have terminated, on the Outstanding Amount of
all Loans and L/C Obligations), regardless of usage, subject to adjustment as
provided in Section 2.15. The facility fee shall accrue at all times
during the Availability Period (and thereafter so long as any Loans or L/C
Obligations remain outstanding), including at any time during which one or more
of the conditions in Article IV is not met, and shall be due and payable
quarterly in arrears on the last Business Day of each March, June, September
and December, commencing with the first such date to occur after the Closing
Date, and on the last day of the Availability Period (and, if applicable,
thereafter on demand). The facility fee shall be calculated quarterly in arrears,
and if there is any change in the Applicable Rate during any quarter, the
actual daily amount shall be computed and multiplied by the Applicable Rate
separately for each period during such quarter that such Applicable Rate was in
effect.

32

          (b)       Other
Fees. (i) The Borrower shall pay to the Arranger and the Administrative
Agent for their own respective accounts fees in the amounts and at the times
specified in the Fee Letter. Such fees shall be fully earned when paid and
shall not be refundable for any reason whatsoever.

                      (ii)     The
Borrower shall pay to the Lenders such fees as shall have been separately
agreed upon in writing in the amounts and at the times so specified. Such fees
shall be fully earned when paid and shall not be refundable for any reason
whatsoever.

          2.09     Computation
of Interest and Fees. All computations of interest for Base Rate
Loans (including Base Rate Loans determined by reference to the Eurodollar
Rate) shall be made on the basis of a year of 365 or 366 days, as the case may
be, and actual days elapsed. All other computations of fees and interest shall
be made on the basis of a 360-day year and actual days elapsed (which results
in more fees or interest, as applicable, being paid than if computed on the
basis of a 365-day year). Interest shall accrue on each Loan for the day on
which the Loan is made, and shall not accrue on a Loan, or any portion thereof,
for the day on which the Loan or such portion is paid, provided that any
Loan that is repaid on the same day on which it is made shall, subject to Section
2.11(a), bear interest for one day.

          2.10     Evidence
of Debt. 

          (a)       The
Credit Extensions made by each Lender shall be evidenced by one or more
accounts or records maintained by such Lender and by the Administrative Agent
in the ordinary course of business. The accounts or records maintained by the
Administrative Agent and each Lender shall be conclusive absent manifest error
of the amount of the Credit Extensions made by the Lenders to the Borrower and
the interest and payments thereon. Any failure to so record or any error in
doing so shall not, however, limit or otherwise affect the obligation of the
Borrower hereunder to pay any amount owing with respect to the Obligations. In
the event of any conflict between the accounts and records maintained by any
Lender and the accounts and records of the Administrative Agent in respect of
such matters, the accounts and records of the Administrative Agent shall control
in the absence of manifest error. Upon the request of any Lender made through
the Administrative Agent, the Borrower shall execute and deliver to such Lender
(through the Administrative Agent) a Note, which shall evidence such Lender’s
Loans in addition to such accounts or records. Each Lender may attach schedules
to its Note and endorse thereon the date, Type (if applicable), amount and
maturity of its Loans and payments with respect thereto.

          (b)       In
addition to the accounts and records referred to in subsection (a), each
Lender and the Administrative Agent shall maintain in accordance with its usual
practice accounts or records evidencing the purchases and sales by such Lender
of participations in Letters of Credit. In the event of any conflict between
the accounts and records maintained by the Administrative Agent and the
accounts and records of any Lender in respect of such matters, the accounts and
records of the Administrative Agent shall control in the absence of manifest
error.

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          2.11     Payments
Generally. 

          (a)       All
payments to be made by the Borrower shall be made without condition or
deduction for any counterclaim, defense, recoupment or set-off. Except as
otherwise expressly provided herein, all payments by the Borrower hereunder
shall be made to the Administrative Agent, for the account of the respective
Lenders to which such payment is owed, at the Administrative Agent’s Office in
Dollars and in immediately available funds not later than 2:00 p.m. on the date
specified herein. The Administrative Agent will promptly distribute to each
Lender its Pro Rata Share (or other applicable share as provided herein) of
such payment in like funds as received by wire transfer to such Lender’s
Lending Office. All payments received by the Administrative Agent after 2:00
p.m. shall be deemed received on the next succeeding Business Day and any
applicable interest or fee shall continue to accrue. If any payment to be made
by the Borrower shall come due on a day other than a Business Day, payment
shall be made on the next following Business Day, and such extension of time
shall be reflected in computing interest or fees, as the case may be.

	
  

 	
  

 
	
  

 	
 (b)       (i) Funding by Lenders;
 Presumption by Administrative Agent. Unless the Administrative Agent
 shall have received notice from a Lender prior to the proposed date of any
 Borrowing of Eurodollar Rate Loans (or, in the case of any Borrowing of Base
 Rate Loans, prior to 12:00 noon on the date of such Borrowing) that such
 Lender will not make available to the Administrative Agent such Lender’s
 share of such Borrowing, the Administrative Agent may assume that such Lender
 has made such share available on such date in accordance with Section 2.02
 (or, in the case of a Borrowing of Base Rate Loans, that such Lender has made
 such share available in accordance with and at the time required by Section
 2.02) and may, in reliance upon such assumption, make available to the
 Borrower a corresponding amount. In such event, if a Lender has not in fact made
 its share of the applicable Borrowing available to the Administrative Agent,
 then the applicable Lender and the Borrower severally agree to pay to the
 Administrative Agent forthwith on demand such corresponding amount in
 immediately available funds with interest thereon, for each day from and
 including the date such amount is made available to the Borrower to but
 excluding the date of payment to the Administrative Agent, at (A) in the case
 of a payment to be made by such Lender, the greater of the Federal Funds Rate
 and a rate determined by the Administrative Agent in accordance with banking
 industry rules on interbank compensation, plus any administrative,
 processing or similar fees customarily charged by the Administrative Agent in
 connection with the foregoing, and (B) in the case of a payment to be made by
 the Borrower, the interest rate applicable to Base Rate Loans. If the
 Borrower and such Lender shall pay such interest to the Administrative Agent
 for the same or an overlapping period, the Administrative Agent shall
 promptly remit to the Borrower the amount of such interest paid by the
 Borrower for such period. If such Lender pays its share of the applicable
 Borrowing to the Administrative Agent, then the amount so paid shall
 constitute such Lender’s Loan included in such Borrowing. Any payment by the
 Borrower shall be without prejudice to any claim the Borrower may have
 against a Lender that shall have failed to make such payment to the
 Administrative Agent.

 
	
  

 	
  

 
	
  

 	
             (ii)     Payments
 by Borrower; Presumptions by Administrative Agent. Unless the
 Administrative Agent shall have received notice from the Borrower prior to
 the date 

 

34

	
  

 	
  

 
	
  

 	
 on which any payment is due to the Administrative Agent for the
 account of the Lenders or the L/C Issuer hereunder that the Borrower will not
 make such payment, the Administrative Agent may assume that the Borrower has
 made such payment on such date in accordance herewith and may, in reliance
 upon such assumption, distribute to the Lenders or the L/C Issuer, as the
 case may be, the amount due. In such event, if the Borrower has not in fact
 made such payment, then each of the Lenders or the L/C Issuer, as the case
 may be, severally agrees to repay to the Administrative Agent forthwith on
 demand the amount so distributed to such Lender or the L/C Issuer, in
 immediately available funds with interest thereon, for each day from and
 including the date such amount is distributed to it to but excluding the date
 of payment to the Administrative Agent, at the greater of the Federal Funds
 Rate and a rate determined by the Administrative Agent in accordance with
 banking industry rules on interbank compensation.

 

          A notice of
the Administrative Agent to any Lender or the Borrower with respect to any
amount owing under this subsection (b) shall be conclusive, absent
manifest error.

          (c)       If
any Lender makes available to the Administrative Agent funds for any Loan to be
made by such Lender as provided in the foregoing provisions of this Article
II, and such funds are not made available to the Borrower by the
Administrative Agent because the conditions to the applicable Credit Extension
set forth in Article IV are not satisfied or waived in accordance with
the terms hereof, the Administrative Agent shall return such funds (in like
funds as received from such Lender) to such Lender, without interest.

          (d)       The
obligations of the Lenders hereunder to make Loans, to fund participations in
Letters of Credit and to make payments pursuant to Section 10.04(c) are
several and not joint. The failure of any Lender to make any Loan, to fund any
such participation or to make any payment under Section 10.04(c) on any
date required hereunder shall not relieve any other Lender of its corresponding
obligation to do so on such date, and no Lender shall be responsible for the
failure of any other Lender to so make its Loan, to purchase its participation
or to make its payment under Section 10.04(c).

          (e)       Nothing
herein shall be deemed to obligate any Lender to obtain the funds for any Loan
in any particular place or manner or to constitute a representation by any
Lender that it has obtained or will obtain the funds for any Loan in any
particular place or manner.

          2.12       Sharing
of Payments. If, other than as expressly provided elsewhere herein,
any Lender shall obtain on account of the Loans made by it, or the
participations in L/C Obligations held by it, any payment (whether voluntary,
involuntary, through the exercise of any right of set-off, or otherwise) in
excess of its ratable share (or other share contemplated hereunder) thereof,
such Lender shall immediately (a) notify the Administrative Agent of such fact,
and (b) purchase from the other Lenders such participations in the Loans made
by them and/or such subparticipations in the participations in L/C Obligations
held by them, as the case may be, as shall be necessary to cause such
purchasing Lender to share the excess payment in respect of such Loans or such
participations, as the case may be, pro rata with each of them; provided,
however, that if all or any portion of such excess payment is thereafter
recovered from the purchasing Lender under any of the circumstances described
in Section 10.05 (including 

35

pursuant to any settlement entered into by the purchasing Lender in its
discretion), such purchase shall to that extent be rescinded and each other
Lender shall repay to the purchasing Lender the purchase price paid therefor,
together with an amount equal to such paying Lender’s ratable share (according
to the proportion of (i) the amount of such paying Lender’s required repayment
to (ii) the total amount so recovered from the purchasing Lender) of any
interest or other amount paid or payable by the purchasing Lender in respect of
the total amount so recovered, without further interest thereon. The Borrower
agrees that any Lender so purchasing a participation from another Lender may,
to the fullest extent permitted by law, exercise all its rights of payment
(including the right of set-off, but subject to Section 10.08) with
respect to such participation as fully as if such Lender were the direct
creditor of the Borrower in the amount of such participation. The
Administrative Agent will keep records (which shall be conclusive and binding
in the absence of manifest error) of participations purchased under this
Section and will in each case notify the Lenders following any such purchases
or repayments. Each Lender that purchases a participation pursuant to this
Section shall from and after such purchase have the right to give all notices,
requests, demands, directions and other communications under this Agreement
with respect to the portion of the Obligations purchased to the same extent as
though the purchasing Lender were the original owner of the Obligations
purchased.

          2.13     Increase in Commitments.

          (a)       Request
for Increase. Provided that no Default or Event of Default has occurred and
is continuing, upon notice to the Administrative Agent (which shall promptly
notify the Lenders), the Borrower may, from time to time, request an increase
in the Aggregate Commitments by an amount (for all such requests) not exceeding
$250,000,000; provided that (i) any such request for an increase shall
be in a minimum amount of $50,000,000, and (ii) there shall have been no prior
voluntary reduction by the Borrower of the Aggregate Commitments. At the time
of sending such notice, the Borrower (in consultation with the Administrative
Agent) shall specify the time period within which each Lender is requested to
respond (which shall in no event be less than ten Business Days from the date
of delivery of such notice to the Lenders).

          (b)       Lender
Elections to Increase. Each Lender shall notify the Administrative Agent
within such time period whether or not it agrees to increase its Commitment
and, if so, whether by an amount equal to, greater than, or less than its Pro
Rata Share of such requested increase. Any Lender not responding within such
time period shall be deemed to have declined to increase its Commitment. 

          (c)       Notification
by Administrative Agent; Additional Lenders. The Administrative Agent shall
notify the Borrower and each Lender of the Lenders’ responses to each request
made hereunder. To achieve the full amount of a requested increase and subject
to the approval of the Administrative Agent and each L/C Issuer (which
approvals shall not be unreasonably withheld), the Borrower may also invite
additional Eligible Assignees to become Lenders pursuant to a joinder agreement
in form and substance reasonably satisfactory to the Administrative Agent.

          (d)       Effective
Date and Allocations. If the Aggregate Commitments are increased in
accordance with this Section, the Administrative Agent and the Borrower shall
determine the effective date (the “Increase Effective Date”) and the
final allocation of such increase; provided, however, that any
increase pursuant to this Section 2.13 shall not increase the Letter of
Credit 

36

Sublimit. The Administrative Agent shall promptly notify the Borrower
and the Lenders of the final allocation of such increase and the Increase
Effective Date. 

          (e)       Conditions
to Effectiveness of Increase. As a condition precedent to such increase,
the Borrower shall deliver to the Administrative Agent a certificate dated as
of the Increase Effective Date (in sufficient copies for each Lender) signed by
a Responsible Officer (i) certifying and attaching the resolutions adopted by
the Borrower approving or consenting to such increase, and (ii) certifying
that, before and after giving effect to such increase, (A) the representations
and warranties contained in Article V of this Agreement, but excluding
the representation and warranty as to no Material Adverse Effect contained in Section
5.11(b) of this Agreement, or any other Loan Document are true and correct
on and as of the Increase Effective Date, except to the extent that such
representations and warranties specifically refer to an earlier date, in which
case they are true and correct as of such earlier date, and except that for
purposes of this Section 2.13, the representations and warranties
contained in subsection (a) of Section 5.11 shall be deemed to
refer to the most recent statements furnished pursuant to clauses (a)
and (b), respectively, of Section 6.01, and (B) no Default
exists. The Borrower shall prepay any Loans outstanding on the Increase
Effective Date (and pay any additional amounts required pursuant to Section
3.05) to the extent necessary to keep the outstanding Loans ratable with
any revised Pro Rata Shares of the Lenders arising from any nonratable increase
in the Commitments under this Section.

          (f)       Conflicting
Provisions. This Section shall supersede any provisions in Sections 2.12
or 10.01 to the contrary.

          2.14     Cash
Collateral. 

          (a)       Certain
Credit Support Events. Upon the request of the Administrative Agent or the
L/C Issuer (i) if the L/C Issuer has honored any full or partial drawing
request under any Letter of Credit and such drawing has resulted in an L/C
Borrowing, or (ii) if, as of the Letter of Credit Expiration Date, any L/C
Obligation for any reason remains outstanding, the Borrower shall, in each
case, immediately Cash Collateralize the then Outstanding Amount of all L/C
Obligations. At any time that there shall exist a Defaulting Lender and the
Fronting Exposure in respect of such Defaulting Lender has not been reallocated
in full pursuant to Section 2.15(a)(iv), within one Business Day
following the request of the Administrative Agent or the L/C Issuer, the
Borrower shall deliver to the Administrative Agent Cash Collateral in an amount
sufficient to cover all remaining Fronting Exposure (after giving effect to Section
2.15(a)(iv) and any Cash Collateral provided by the Defaulting Lender). 

          (b)       Grant
of Security Interest. All Cash Collateral (other than credit support not
constituting funds subject to deposit) shall be maintained in blocked,
non-interest bearing deposit accounts at Bank of America. The Borrower, and to
the extent provided by any Lender, such Lender, hereby grants to (and subjects
to the control of) the Administrative Agent, for the benefit of the
Administrative Agent, the L/C Issuer and the Lenders, and agrees to maintain, a
first priority security interest in all such cash, deposit accounts and all
balances therein, and all other property so provided as collateral pursuant
hereto, and in all proceeds of the foregoing, all as security for the
obligations to which such Cash Collateral may be applied pursuant to Section
2.14(c). If at any time the Administrative Agent determines that Cash
Collateral is subject to any 

37

right or claim of any Person other than the Administrative Agent as
herein provided, or that the total amount of such Cash Collateral is less than
the applicable Fronting Exposure and other obligations secured thereby, the Borrower
or the relevant Defaulting Lender will, promptly upon demand by the
Administrative Agent, pay or provide to the Administrative Agent additional
Cash Collateral in an amount sufficient to eliminate such deficiency.

          (c)       Application.
Notwithstanding anything to the contrary contained in this Agreement, Cash
Collateral provided under any of this Section 2.14 or Sections 2.03,
2.15 or 8.02 in respect of Letters of Credit shall be held and
applied to
the satisfaction of the specific L/C Obligations, obligations to fund
participations therein (including, as to Cash Collateral provided by a
Defaulting Lender, any interest accrued on such obligation) and other
obligations for which the Cash Collateral was so provided, prior to any other
application of such property as may be provided for herein.

          (d)       Release.
Cash Collateral (or the appropriate portion thereof) provided to reduce
Fronting Exposure or other obligations shall be released promptly following (i)
the elimination of the applicable Fronting Exposure or other obligations giving
rise thereto (including by the termination of Defaulting Lender status of the
applicable Lender (or, as appropriate, its assignee following compliance with Section
10.06(b)(vi))) or (ii) the Administrative Agent’s good faith determination
that there exists excess Cash Collateral; provided, however, (x)
that Cash Collateral furnished by or on behalf of a Loan Party shall not be
released during the continuance of a Default or Event of Default (and following
application as provided in this Section 2.14 may be otherwise applied in
accordance with Section 8.03), and (y) the Person providing Cash
Collateral and the L/C Issuer may agree that Cash Collateral shall not be
released but instead held to support future anticipated Fronting Exposure or
other obligations.

          2.15     Defaulting
Lenders.      

          (a)       Adjustments.
Notwithstanding anything to the contrary contained in this Agreement, if any
Lender becomes a Defaulting Lender, then, until such time as that Lender is no
longer a Defaulting Lender, to the extent permitted by applicable Law:

	
  

 	
  

 
	
  

 	
             (i)     Waivers
 and Amendments. That Defaulting Lender’s right to approve or disapprove
 any amendment, waiver or consent with respect to this Agreement shall be
 restricted as set forth in Section 10.01.

 
	
  

 	
  

 
	
  

 	
             (ii)    Reallocation
 of Payments. Any payment of principal, interest, fees or other amounts
 received by the Administrative Agent for the account of that Defaulting
 Lender hereunder (whether voluntary or mandatory, at maturity, pursuant to Article
 VIII or otherwise, and including any amounts made available to the Administrative
 Agent by that Defaulting Lender pursuant to Section 10.08), shall be
 applied at such time or times as may be determined by the Administrative
 Agent as follows: first, to the payment of any amounts
 owing by that Defaulting Lender to the Administrative Agent hereunder; second,
 to the payment on a pro rata basis of any amounts owing by that Defaulting
 Lender to the L/C Issuer hereunder; third, if so determined by the
 Administrative Agent or requested by the L/C Issuer, to be held as Cash
 Collateral to cover Fronting Exposure or for future funding obligations of
 that Defaulting Lender of any participation in any 

 

38

	
  

 	
  

 
	
  

 	
 Letter of Credit; fourth, as the Borrower may request (so
 long as no Default or Event of Default exists), to the funding of any Loan in
 respect of which that Defaulting Lender has failed to fund its portion
 thereof as required by this Agreement, as determined by the Administrative
 Agent; fifth,
 if so determined by the Administrative Agent and the Borrower, to be held in
 a non-interest bearing deposit account and released in order to satisfy
 obligations of that Defaulting Lender to fund Loans under this Agreement; sixth,
 to the payment of any amounts then owing to the Lenders or the L/C Issuer as
 a result of any judgment of a court of competent jurisdiction obtained by any
 Lender or the L/C Issuer against that Defaulting Lender as a result of that
 Defaulting Lender’s breach of its obligations under this Agreement; seventh,
 so long as no Default or Event of Default exists, to the payment of any
 amounts then owing to the Borrower as a result of any judgment of a court of
 competent jurisdiction obtained by the Borrower against that Defaulting
 Lender as a result of that Defaulting Lender’s breach of its obligations
 under this Agreement; and eighth, to that Defaulting Lender or as
 otherwise directed by a court of competent jurisdiction; provided that
 if (x) such payment is a payment of the principal amount of any Loans or L/C
 Borrowings in respect of which that Defaulting Lender has not fully funded
 its appropriate share and (y) such Loans or L/C Borrowings were made at a
 time when the conditions set forth in Section 4.02 were satisfied or
 waived, such payment shall be applied solely to pay the Loans of, and L/C
 Borrowings owed to, all non-Defaulting Lenders on a pro rata basis prior to
 being applied to the payment of any Loans of, or L/C Borrowings owed to, that
 Defaulting Lender. Any payments, prepayments or other amounts paid or payable
 to a Defaulting Lender that are applied (or held) to pay amounts owed by a
 Defaulting Lender or to post Cash Collateral pursuant to this Section
 2.15(a)(ii) shall be deemed paid to and redirected by that Defaulting
 Lender, and each Lender irrevocably consents hereto. 

 
	
  

 	
  

 
	
  

 	
           (iii)    
 Certain Fees. That Defaulting Lender (x) shall be entitled to receive
 any facility fee pursuant to Section 2.08(a) for any period during
 which that Lender is a Defaulting Lender only to extent allocable to the sum
 of (1) the Outstanding Amount of the Loans funded by it and (2) its Pro Rata
 Share of the stated amount of Letters of Credit for which it has provided
 Cash Collateral pursuant to Section 2.03, Section 2.14, or Section
 2.15(a)(ii), as applicable (and the Borrower shall (A) be required to pay
 to the L/C Issuer the amount of such fee allocable to its Fronting Exposure
 arising from that Defaulting Lender and (B) not be required to pay the
 remaining amount of such fee that otherwise would have been required to have
 been paid to that Defaulting Lender) and (y) shall be limited in its right to
 receive Letter of Credit Fees as provided in Section 2.03(h).

 
	
  

 	
  

 
	
  

 	
           (iv)     Reallocation
 of Pro Rata Shares to Reduce Fronting Exposure. During any period in
 which there is a Defaulting Lender, for purposes of computing the amount of
 the obligation of each non-Defaulting Lender to acquire, refinance or fund
 participations in Letters of Credit pursuant to Sections 2.03, the
 “Pro Rata Share” of each non-Defaulting Lender shall be computed without
 giving effect to the Commitment of that Defaulting Lender; provided,
 that, (i) each such reallocation shall be given effect only if, at the date
 the applicable Lender becomes a Defaulting Lender, no Default or Event of
 Default exists; and (ii) the aggregate obligation of each non-Defaulting
 Lender to acquire, refinance or fund participations in Letters of Credit
 shall not exceed the 

 

39

	
  

 	
  

 
	
  

 	
 positive difference, if any, of (1) the Commitment of that
 non-Defaulting Lender minus (2) the aggregate Outstanding Amount of
 the Loans of that Lender.

 

          (b)      
Defaulting
Lender Cure. If the Borrower, the Administrative Agent and the
L/C Issuer agree in writing in their sole discretion that a Defaulting Lender
should no longer be deemed to be a Defaulting Lender, the Administrative Agent
will so notify the parties hereto, whereupon as of the effective date specified
in such notice and subject to any conditions set forth therein (which may
include arrangements with respect to any Cash Collateral), that Lender will, to
the extent applicable, purchase that portion of outstanding Loans of the other
Lenders or take such other actions as the Administrative Agent may determine to
be necessary to cause the Loans and funded and unfunded participations in
Letters of Credit to be held on a pro rata basis by the Lenders in accordance
with their Pro Rata Shares (without giving effect to Section 2.15(a)(iv)),
whereupon that Lender will cease to be a Defaulting Lender; provided
that no adjustments will be made retroactively with respect to fees accrued or
payments made by or on behalf of the Borrower while that Lender was a
Defaulting Lender; and provided, further, that except to the
extent otherwise expressly agreed by the affected parties, no change hereunder
from Defaulting Lender to Lender will constitute a waiver or release of any
claim of any party hereunder arising from that Lender’s having been a
Defaulting Lender.

ARTICLE III.

TAXES, YIELD PROTECTION AND ILLEGALITY

          3.01     Taxes.

          (a)       Payments
Free of Taxes; Obligation to Withhold; Payments on Account of Taxes. (i)
Any and all payments by or on account of any obligation of the Borrower
hereunder or under any other Loan Document shall to the extent permitted by
applicable Laws be made free and clear of and without reduction or withholding
for any Taxes. If, however, applicable Laws require the Borrower or the
Administrative Agent to withhold or deduct any Tax, such Tax shall be withheld
or deducted in accordance with such Laws as determined by the Borrower or the
Administrative Agent, as the case may be, upon the basis of the information and
documentation to be delivered pursuant to subsection (e) below.

	
  

 	
  

 
	
  

 	
             (ii)     If
 the Borrower or the Administrative Agent shall be required by the Code to
 withhold or deduct any Taxes, including both United States Federal
 backup withholding and withholding taxes, from any payment, then (A) the
 Administrative Agent shall withhold or make such deductions as are determined
 by the Administrative Agent to be required based upon the information and
 documentation it has received pursuant to subsection (e) below, (B)
 the Administrative Agent shall timely pay the full amount withheld or
 deducted to the relevant Governmental Authority in accordance with the Code,
 and (C) to the extent that the withholding or deduction is made on account of
 Indemnified Taxes or Other Taxes, the sum payable by the Borrower shall be
 increased as necessary so that after any required withholding or the making
 of all required deductions (including deductions applicable to additional
 sums payable under this Section) the Administrative Agent, Lender or L/C
 Issuer, as the case may be, receives an amount equal to the sum it would have
 received had no such withholding or deduction been made.

 

40

          (b)     Payment
of Other Taxes by the Borrower. Without limiting the provisions of subsection
(a) above, the Borrower shall timely pay any Other Taxes to the relevant
Governmental Authority in accordance with applicable Laws.

          (c)     Tax
Indemnifications. (i) Without limiting the provisions of subsection (a)
or (b) above, the Borrower shall, and does hereby, indemnify the
Administrative Agent, each Lender and the L/C Issuer, and shall make payment in
respect thereof within thirty days after demand therefor, for the full amount
of any Indemnified Taxes or Other Taxes (including Indemnified Taxes or Other
Taxes imposed or asserted on or attributable to amounts payable under this
Section) by the Administrative Agent, such Lender or the L/C Issuer, as the
case may be, and any penalties, interest and reasonable expenses arising
therefrom or with respect thereto, whether or not such Indemnified Taxes or
Other Taxes were correctly or legally imposed or asserted by the relevant
Governmental Authority. A certificate as to the amount of any such payment or
liability delivered to the Borrower by a Lender or the L/C Issuer (with a copy
to the Administrative Agent), or by the Administrative Agent on its own behalf
or on behalf of a Lender or the L/C Issuer, shall be conclusive absent manifest
error.

	
  

 	
  

 
	
  

 	
           (ii)     Without
 limiting the provisions of subsection (a) or (b) above, each
 Lender and the L/C Issuer shall, and does hereby, indemnify the Borrower and
 the Administrative Agent, and shall make payable in respect thereof within
 thirty days after demand therefor, against any and all Taxes and any and all
 related losses, claims, liabilities, penalties, interest and expenses
 (including the fees, charges and disbursements of any counsel for the
 Borrower or the Administrative Agent) incurred by or asserted against
 the Borrower or the Administrative Agent by any Governmental Authority as a
 result of the failure by such Lender or the L/C Issuer, as the case may be,
 to deliver, or as a result of the inaccuracy of, any documentation required
 to be delivered by such Lender or the L/C Issuer, as the case may be, to the
 Borrower or the Administrative Agent pursuant to subsection (e). Each
 Lender and the L/C Issuer hereby authorizes the Administrative Agent to set
 off and apply any and all amounts at any time owing to such Lender or the L/C
 Issuer, as the case may be, under this Agreement or any other Loan Document
 against any amount due to the Administrative Agent under this clause (ii).
 The agreements in this clause (ii) shall survive the resignation
 and/or replacement of the Administrative Agent, any assignment of rights by,
 or the replacement of, a Lender or the L/C Issuer, and the repayment,
 satisfaction or discharge of all other Obligations.

 

          (d)     Evidence
of Payments. Upon request by the Borrower or the Administrative Agent, as
the case may be, after any payment of Taxes by the Borrower or by the
Administrative Agent to a Governmental Authority as provided in this Section
3.01, the Borrower shall deliver to the Administrative Agent or the
Administrative Agent shall deliver to the Borrower, as the case may be, the
original or a certified copy of a receipt issued by such Governmental Authority
evidencing such payment, a copy of any return required by Laws to report such
payment or other evidence of such payment reasonably satisfactory to the
Borrower or the Administrative Agent, as the case may be.

          (e)     Status
of Lenders; Tax Documentation. (i) Each Lender shall deliver to the
Borrower and to the Administrative Agent, at the time or times prescribed by
applicable Laws or when reasonably requested by the Borrower or the
Administrative Agent, such properly 

41

completed and executed documentation prescribed by applicable Laws or
by the taxing authorities of any jurisdiction and such other reasonably
requested information as will permit the Borrower or the Administrative Agent,
as the case may be, to determine (A) whether or not payments made by the
Borrower hereunder or under any other Loan Document are subject to Taxes, (B)
if applicable, the required rate of withholding or deduction, and (C) such
Lender’s entitlement to any available exemption from, or reduction of,
applicable Taxes in respect of all payments to be made to such Lender by the
Borrower pursuant to this Agreement or otherwise to establish such Lender’s
status for withholding tax purposes in the applicable jurisdictions.

	
  

 	
  

 
	
  

 	
           (ii)   Without
 limiting the generality of the foregoing, if the Borrower is resident for tax
 purposes in the United States:

 

	
  

 	
  

 	
  

 
	
  

 	
           (A)     
 any Lender that is a “United States person” within the meaning of Section
 7701(a)(30) of the Code shall deliver to the Borrower and the Administrative
 Agent executed originals of Internal Revenue Service Form W-9 or such other
 documentation or information prescribed by applicable Laws or reasonably
 requested by the Borrower or the Administrative Agent as will enable the
 Borrower or the Administrative Agent, as the case may be, to determine
 whether or not such Lender is subject to backup withholding or information
 reporting requirements; and

 
	
  

 	
  

 
	
  

 	
           (B)     
 each Foreign Lender that is entitled under the Code or any applicable treaty
 to an exemption from or reduction of withholding tax with respect to payments
 hereunder or under any other Loan Document shall deliver to the Borrower and
 the Administrative Agent (in such number of copies as shall be requested by
 the recipient) on or prior to the date on which such Foreign Lender becomes a
 Lender under this Agreement (and from time to time thereafter upon the
 request of the Borrower or the Administrative Agent, but only if such Foreign
 Lender is legally entitled to do so), whichever of the following is
 applicable:

 
	
  

 	
  

 
	
  

 	
  

 	
 (I) executed originals of Internal Revenue Service Form W-8BEN
 claiming eligibility for benefits of an income tax treaty to which the United
 States is a party,

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (II)      executed originals of Internal
 Revenue Service Form W-8ECI,

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (III)     executed originals of Internal
 Revenue Service Form W-8IMY and all required supporting documentation,

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (IV)     in the case of a Foreign Lender
 claiming the benefits of the exemption for portfolio interest under section
 881(c) of the Code, (x) a certificate to the effect that such Foreign Lender
 is not (A) a “bank” within the meaning of section 881(c)(3)(A) of the Code,
 (B) a “10 percent shareholder” of the Borrower within the meaning of section
 881(c)(3)(B) of the Code, or (C) a “controlled foreign corporation” described
 in section 881(c)(3)(C) of the Code and (y) executed originals of Internal
 Revenue Service Form W-8BEN, or

 

42

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (V)     executed originals of any other form
 prescribed by applicable Laws as a basis for claiming exemption from or a
 reduction in United States Federal withholding tax together with such
 supplementary documentation as may be prescribed by applicable Laws to permit
 the Borrower or the Administrative Agent to determine the withholding or
 deduction required to be made.

 
	
  

 	
  

 	
  

 
	
  

 	
           (iii)     Each
 Lender shall promptly (A) notify the Borrower and the Administrative Agent of
 any change in circumstances which would modify or render invalid any claimed
 exemption or reduction, and (B) take such steps as shall not be materially
 disadvantageous to it, in the reasonable judgment of such Lender, and as may
 be reasonably necessary (including the re-designation of its Lending Office)
 to avoid any requirement of applicable Laws of any jurisdiction that the
 Borrower or the Administrative Agent make any withholding or deduction for
 taxes from amounts payable to such Lender.

 

          (f)       Treatment
of Certain Refunds. Unless required by applicable Laws, at no time shall
the Administrative Agent have any obligation to file for or otherwise pursue on
behalf of a Lender or the L/C Issuer, or have any obligation to pay to any
Lender or the L/C Issuer, any refund of Taxes withheld or deducted from funds
paid for the account of such Lender or the L/C Issuer, as the case may be. If
the Administrative Agent, any Lender or the L/C Issuer determines, in its sole
discretion, that it has received a refund of any Taxes or Other Taxes as to
which it has been indemnified by the Borrower or with respect to which the
Borrower has paid additional amounts pursuant to this Section, it shall pay to
the Borrower an amount equal to such refund (but only to the extent of
indemnity payments made, or additional amounts paid, by the Borrower under this
Section with respect to the Taxes or Other Taxes giving rise to such refund),
net of all reasonable out-of-pocket expenses incurred and documented by the
Administrative Agent, such Lender or the L/C Issuer related thereto, as the
case may be, and without interest (other than any interest paid by the relevant
Governmental Authority with respect to such refund), provided that the
Borrower, upon the request of the Administrative Agent, such Lender or the L/C
Issuer, agrees to repay the amount paid over to the Borrower (plus any
penalties, interest or other charges imposed by the relevant Governmental
Authority) to the Administrative Agent, such Lender or the L/C Issuer in the
event the Administrative Agent, such Lender or the L/C Issuer is required to
repay such refund to such Governmental Authority. This subsection shall not be
construed to require the Administrative Agent, any Lender or the L/C Issuer to
make available its tax returns (or any other information relating to its taxes
that it deems confidential) to the Borrower or any other Person.

          3.02     Illegality.
If any Lender determines that any Law has made it unlawful, or that any
Governmental Authority has asserted that it is unlawful, for any Lender or its
applicable Lending Office to make, maintain or fund Loans whose interest is
determined by reference to the Eurodollar Rate, or to determine or charge
interest rates based upon the Eurodollar Rate, or any Governmental Authority
has imposed material restrictions on the authority of such Lender to purchase
or sell, or to take deposits of, Dollars in the London interbank market, then,
on notice thereof by such Lender to the Borrower through the Administrative
Agent, (i) any obligation of such Lender to make or continue Eurodollar Rate
Loans or to convert Base Rate Loans to 

43

Eurodollar Rate Loans shall be suspended, and (ii) if such notice
asserts the illegality of such Lender making or maintaining Base Rate Loans the
interest rate on which is determined by reference to the Eurodollar Rate
component of the Base Rate, the interest rate on which Base Rate Loans of such
Lender shall, if necessary to avoid such illegality, be determined by the
Administrative Agent without reference to the Eurodollar Rate component of the
Base Rate, in each case until such Lender notifies the Administrative Agent and
the Borrower that the circumstances giving rise to such determination no longer
exist. Upon receipt of such notice, (x) the Borrower shall, upon demand from
such Lender (with a copy to the Administrative Agent), prepay or, if
applicable, convert all Eurodollar Rate Loans of such Lender to Base Rate Loans
(the interest rate on which Base Rate Loans of such Lender shall, if necessary
to avoid such illegality, be determined by the Administrative Agent without
reference to the Eurodollar Rate component of the Base Rate), either on the
last day of the Interest Period therefor, if such Lender may lawfully continue
to maintain such Eurodollar Rate Loans to such day, or immediately, if such
Lender may not lawfully continue to maintain such Eurodollar Rate Loans and (y)
if such notice asserts the illegality of such Lender determining or charging
interest rates based upon the Eurodollar Rate, the Administrative Agent shall
during the period of such suspension compute the Base Rate applicable to such
Lender without reference to the Eurodollar Rate component thereof until the
Administrative Agent is advised in writing by such Lender that it is no longer
illegal for such Lender to determine or charge interest rates based upon the
Eurodollar Rate. Upon any such prepayment or conversion, the Borrower shall
also pay accrued interest on the amount so prepaid or converted.

          3.03     Inability
to Determine Rates. If the Required Lenders determine that for any
reason in connection with any request for a Eurodollar Rate Loan or a
conversion to or continuation thereof that (a) Dollar deposits are not being
offered to banks in the London interbank eurodollar market for the applicable
amount and Interest Period of such Eurodollar Rate Loan, (b) adequate and
reasonable means do not exist for determining the Eurodollar Rate for any
requested Interest Period with respect to a proposed Eurodollar Rate Loan or in
connection with an existing or proposed Base Rate Loan, or (c) the Eurodollar
Rate for any requested Interest Period with respect to a proposed Eurodollar
Rate Loan does not adequately and fairly reflect the cost to such Lenders of
funding such Loan, the Administrative Agent will promptly so notify the
Borrower and each Lender. Thereafter, (x) the obligation of the Lenders to make
or maintain Eurodollar Rate Loans shall be suspended, and (y) in the event of a
determination described in the preceding sentence with respect to the
Eurodollar Rate component of the Base Rate, the utilization of the Eurodollar
Rate component in determining the Base Rate shall be suspended, in each case
until the Administrative Agent (upon the instruction of the Required Lenders)
revokes such notice. Upon receipt of such notice, the Borrower may revoke any
pending request for a Borrowing of, conversion to or continuation of Eurodollar
Rate Loans or, failing that, will be deemed to have converted such request into
a request for a Borrowing of Base Rate Loans in the amount specified therein.

          3.04     Increased
Costs; Reserves on Eurodollar Rate Loans.

          (a)      
Increased Costs Generally. If any Change in Law shall:

          (i)       impose,
modify or deem applicable any reserve, special deposit, compulsory loan,
insurance charge or similar requirement against assets of, deposits with 

44

	
  

 	
  

 
	
  

 	
 or for the account of, or credit extended or participated in by, any
 Lender (except any reserve requirement contemplated by Section 3.04(e)) or the L/C Issuer; 

 
	
  

 	
  

 
	
  

 	
          (ii)     subject any Lender or the L/C
 Issuer to any tax of any kind whatsoever with respect to this Agreement, any
 Letter of Credit, any participation in a Letter of Credit or any Eurodollar
 Rate Loan made by it, or change the basis of taxation of payments to such
 Lender or the L/C Issuer in respect thereof (except for Indemnified Taxes or
 Other Taxes covered by Section 3.01 and the imposition of, or any
 change in the rate of, any Excluded Tax payable by such Lender or the L/C
 Issuer); or

 
	
  

 	
  

 
	
  

 	
         (iii)    impose on any Lender or the L/C
 Issuer or the London interbank market any other condition, cost or expense
 affecting this Agreement or Eurodollar Rate Loans made by such Lender or any
 Letter of Credit or participation therein;

 

and the result of any of the foregoing shall be to increase the cost to
such Lender of making or maintaining any Loan the interest on which is
determined by reference to the Eurodollar Rate (or of maintaining its
obligation to make any such Loan), or to increase the cost to such Lender or
the L/C Issuer of participating in, issuing or maintaining any Letter of Credit
(or of maintaining its obligation to participate in or to issue any Letter of
Credit), or to reduce the amount of any sum received or receivable by such
Lender or the L/C Issuer hereunder (whether of principal, interest or any other
amount) then, upon request of such Lender or the L/C Issuer, the Borrower will
pay to such Lender or the L/C Issuer, as the case may be, such additional
amount or amounts as will compensate such Lender or the L/C Issuer, as the case
may be, for such additional costs incurred or reduction suffered.

          (b)     Capital
Requirements. If any Lender or the L/C Issuer determines that any Change in
Law affecting such Lender or the L/C Issuer or any Lending Office of such
Lender or such Lender’s or the L/C Issuer’s holding company, if any, regarding
capital requirements has or would have the effect of reducing the rate of
return on such Lender’s or the L/C Issuer’s capital or on the capital of such
Lender’s or the L/C Issuer’s holding company, if any, as a consequence of this
Agreement, the Commitments of such Lender or the Loans made by, or
participations in Letters of Credit held by, such Lender, or the Letters of
Credit issued by the L/C Issuer, to a level below that which such Lender or the
L/C Issuer or such Lender’s or the L/C Issuer’s holding company could have
achieved but for such Change in Law (taking into consideration such Lender’s or
the L/C Issuer’s policies and the policies of such Lender’s or the L/C Issuer’s
holding company with respect to capital adequacy), then from time to time the
Borrower will pay to such Lender or the L/C Issuer, as the case may be, such
additional amount or amounts as will compensate such Lender or the L/C Issuer
or such Lender’s or the L/C Issuer’s holding company for any such reduction
suffered.

          (c)     Certificates
for Reimbursement; Reimbursement Limitation. A certificate of a Lender or
the L/C Issuer (i) setting forth the amount or amounts necessary to compensate
such Lender or the L/C Issuer or its holding company, as the case may be, as
specified in subsection (a) or (b) of this Section and (ii)
stating in reasonable detail the basis for the charges and the method of
computation, and delivered to the Borrower shall be conclusive absent manifest
error. The Borrower shall pay such Lender or the L/C Issuer, as the case may
be, the amount shown as due on any such certificate within thirty days after
receipt thereof. Notwithstanding any other 

45

provisions of this Section 3.04, no Lender shall demand
compensation for any increased cost, charge or reduction under subsection
(a) and (b) of this Section if it shall not at the time be the
general policy of such Lender to demand such compensation in similar
circumstances under comparable provisions of other credit agreements, and each
Lender shall in good faith endeavor to allocate increased costs or reductions
fairly among all of its affected commitments and credit extensions (whether or
not it seeks compensation from all affected borrowers).

          (d)     Delay
in Requests. Failure or delay on the part of any Lender or the L/C Issuer to
demand compensation pursuant to the foregoing provisions of this Section shall
not constitute a waiver of such Lender’s or the L/C Issuer’s right to demand
such compensation, provided that the Borrower shall not be required to
compensate a Lender or the L/C Issuer pursuant to the foregoing provisions of
this Section for any increased costs incurred or reductions suffered more than
three months prior to the date that such Lender or the L/C Issuer, as the case
may be, notifies the Borrower of the Change in Law giving rise to such
increased costs or reductions and of such Lender’s or the L/C Issuer’s
intention to claim compensation therefor (except that, if the Change in Law
giving rise to such increased costs or reductions is retroactive, then the
three-month period referred to above shall be extended to include the period of
retroactive effect thereof, such that the three-month period shall commence
upon the date of effectiveness of such Change in Law).

          3.05   Compensation
for Losses. Upon demand of any Lender (with a copy to the
Administrative Agent) from time to time, the Borrower shall promptly compensate
such Lender for and hold such Lender harmless from any loss, cost or expense
incurred by it as a result of:

          (a)       any
continuation, conversion, payment or prepayment of any Loan other than a Base
Rate Loan on a day other than the last day of the Interest Period for such Loan
(whether voluntary, mandatory, automatic, by reason of acceleration, or
otherwise);

          (b)       any
failure by the Borrower (for a reason other than the failure of such Lender to
make a Loan) to prepay, borrow, continue or convert any Loan other than a Base
Rate Loan on the date or in the amount notified by the Borrower; or

          (c)     any
assignment of a Eurodollar Rate Loan on a day other than the last day of the
Interest Period therefor as a result of a request by the Borrower pursuant to Section 10.14;

including any loss of anticipated profits and any
loss or expense arising from the liquidation or reemployment of funds obtained
by it to maintain such Loan or from fees payable to terminate the deposits from
which such funds were obtained. The
Borrower shall also pay any customary administrative fees charged by such
Lender for services actually performed in connection with the foregoing.

For
purposes of calculating amounts payable by the Borrower to the Lenders under
this Section 3.05, each Lender
shall be deemed to have funded each Eurodollar Rate Loan made by it at the
Eurodollar Rate for such Loan by a matching deposit or other borrowing in the
London interbank eurodollar market for a comparable amount and for a comparable
period, whether or not such Eurodollar Rate Loan was in fact so funded.

46

          3.06     Mitigation
Obligations; Replacement of Lenders. 

          (a)       Designation of a Different Lending Office. If any Lender requests compensation
under Section 3.04, or the Borrower is required to pay any additional
amount to any Lender, the L/C Issuer,
or any Governmental Authority for the account of any Lender or the L/C Issuer pursuant to Section
3.01, or if any Lender gives a notice pursuant to Section 3.02, then
such Lender or the L/C Issuer shall, as applicable, use reasonable efforts to
designate a different Lending Office for funding or booking its Loans hereunder
or to assign its rights and obligations hereunder to another of its offices,
branches or affiliates, if, in the good faith judgment of such Lender or the L/C Issuer, such designation or
assignment (i) would eliminate or reduce amounts payable pursuant to Section
3.01 or 3.04, as the case may be, in the future, or eliminate the
need for the notice pursuant to Section 3.02, as applicable, and (ii) in
each case, would not subject such Lender or the L/C Issuer, as the case may be, to any unreimbursed cost or
expense and would not otherwise be materially disadvantageous to such Lender or
the L/C Issuer, as the case may be. The Borrower hereby agrees to pay all
reasonable costs and expenses incurred by any Lender or the L/C Issuer in connection with any such designation or
assignment.

          (b)     Replacement
of Lenders. If any Lender requests compensation under Section 3.04,
or if the Borrower is required to pay any additional amount to any Lender or
any Governmental Authority for the account of any Lender pursuant to Section
3.01, the Borrower may replace such Lender in accordance with Section
10.14.

          3.07     Survival.
All of the Borrower’s obligations under this Article III shall survive
termination of the Aggregate Commitments, repayment of all Obligations
hereunder, and resignation of the Administrative Agent.

ARTICLE IV.

CONDITIONS PRECEDENT TO CREDIT EXTENSIONS

          4.01     Conditions
of Initial Credit Extension. The obligation of the L/C Issuer and
each Lender to make its initial Credit Extension hereunder is subject to
satisfaction of the following conditions precedent:

          (a)       The
Administrative Agent’s receipt of the following, each of which shall be
originals or facsimiles (followed promptly by originals) unless otherwise
specified, each properly executed by a Responsible Officer, each dated the
Closing Date (or, in the case of certificates of governmental officials, a
recent date before the Closing Date) and each in form and substance
satisfactory to the Administrative Agent and each of the Lenders:

	
  

 	
  

 
	
  

 	
           (i)     executed
 counterparts of this Agreement, sufficient in number for distribution to the
 Administrative Agent, each Lender and the Borrower;

 
	
  

 	
  

 
	
  

 	
           (ii)    a
 Note executed by the Borrower in favor of each Lender requesting a Note;

 
	
  

 	
  

 
	
  

 	
           (iii)   such
 certificates of resolutions or other action, incumbency certificates and/or
 other certificates of Responsible Officers as the Administrative Agent may
 require evidencing the identity, authority and capacity of each Responsible
 Officer thereof 

 

47

	
  

 	
  

 
	
  

 	
 authorized to act as a Responsible Officer in connection with this
 Agreement and the other Loan Documents;

 
	
  

 	
  

 
	
  

 	
           (iv)     such
 documents and certifications as the Administrative Agent may reasonably
 require to evidence that the Borrower is duly organized or formed, and that
 the Borrower is validly existing, in good standing and qualified to engage in
 business in each jurisdiction where
 its ownership, lease or operation of properties or the conduct of its
 business requires such qualification, except to the extent that failure to do
 so could not reasonably be expected to have a Material Adverse Effect;

 
	
  

 	
  

 
	
  

 	
           (v)      favorable
 opinions of Pamela S. Krop, General Counsel of the Borrower, and Dorsey &
 Whitney, LLP as special counsel to the Borrower, each
 addressed to the Administrative Agent and each Lender, in the form of Exhibit
 E;

 
	
  

 	
  

 
	
  

 	
           (vi)     a
 certificate of a Responsible Officer either (A) attaching copies of all
 consents, licenses and approvals required in connection with the execution,
 delivery and performance by the Borrower and the validity against the
 Borrower of the Loan Documents to which it is a party, and such consents,
 licenses and approvals shall be in full force and effect, or (B) stating that
 no such consents, licenses or approvals are so required;

 
	
  

 	
  

 
	
  

 	
           (vii)    a
 certificate signed by a Responsible Officer certifying (A) that the
 representations and warranties of the Borrower contained in Article V
 of this Agreement, or any other Loan Document, or which are contained in any
 document furnished at any time under or in connection herewith or therewith,
 are true and correct on and as of the date hereof, except to the extent that
 such representations and warranties specifically refer to an earlier date, in
 which case they shall be true and correct as of such earlier date, and except
 that for purposes of this Section 4.01, the representations and
 warranties contained in subsection (a) of Section 5.11 shall be
 deemed to refer to the most recent statements furnished pursuant to clauses
 (a) and (b), respectively, of Section 6.01, (B) the
 condition specified in Section 4.02(b) has been satisfied, (C) that there has been no
 event or circumstance since October 2, 2010 that has had or could be
 reasonably expected to have, either individually or in the aggregate, a
 Material Adverse Effect; and (D) the
 current Debt Ratings;

 
	
  

 	
  

 
	
  

 	
           (viii)   evidence
 that all insurance required to be maintained pursuant to the Loan Documents
 has been obtained and is in effect;

 
	
  

 	
  

 
	
  

 	
           (ix)     a
 Compliance Certificate for the Borrower and its Subsidiaries, prepared as of
 the last day of the fiscal quarter thereof ended most recently prior to the
 Closing Date; 

 
	
  

 	
  

 
	
  

 	
           (x)      evidence
 that the Existing 2006 Multi-Year Credit Agreement has been or concurrently
 with the Closing Date is being terminated, all obligations and amounts owing
 to the lenders and administrative agent thereunder have been paid in full,
 and all Liens securing obligations under the Existing 2006 Multi-Year Credit
 Agreement have been or concurrently with the Closing Date are being released;
 and

 

48

	
  

 	
  

 
	
  

 	
           (xi)     such
 other assurances, certificates, documents, consents or opinions as the
 Administrative Agent and the L/C Issuer or the Required Lenders reasonably
 may require.

 
	
  

 	
  

 
	
  

 	
 (b)     Any fees required to be paid on or
 before the Closing Date shall have been paid.

 

          (c)     Unless
waived by the Administrative Agent, the Borrower shall have paid all Attorney
Costs of the Administrative Agent to the extent invoiced prior to or on the
Closing Date, plus such additional amounts of Attorney Costs as shall
constitute its reasonable estimate of Attorney Costs incurred or to be incurred
by it through the closing proceedings (provided that such estimate shall
not thereafter preclude a final settling of accounts between the Borrower and
the Administrative Agent).

          Without
limiting the generality of the provisions of Section 9.04, for purposes
of determining compliance with the conditions specified in this Section 4.01,
each Lender that has signed this Agreement shall be deemed to have consented
to, approved or accepted or to be satisfied with, each document or other matter
required thereunder to be consented to or approved by or acceptable or
satisfactory to a Lender unless the Administrative Agent shall have received
notice from such Lender prior to the proposed Closing Date specifying its
objection thereto. 

          4.02   Conditions
to all Credit Extensions. The obligation of each Lender to honor any
Request for Credit Extension (other than a Loan Notice requesting only a
conversion of Loans to the other Type, or a continuation of Eurodollar Rate
Loans) is subject to the following conditions precedent:

          (a)     The
representations and warranties of the Borrower contained in Article V of
this Agreement, but excluding the representation and warranty as to no Material
Adverse Effect contained in Section 5.11(b) of this Agreement shall be
true and correct on and as of the date of such Credit Extension, except to the
extent that such representations and warranties specifically refer to an
earlier date, in which case they shall be true and correct as of such earlier
date, and except that for purposes of this Section 4.02, the
representations and warranties contained in subsection (a) of Section
5.11 shall be deemed to refer to the most recent statements furnished
pursuant to clauses (a) and (b), respectively, of Section 6.01.

          (b)     No
Default shall exist, or would result from such proposed Credit Extension.

          (c)     The
Administrative Agent and, if applicable, the L/C Issuer shall have received a
Request for Credit Extension in accordance with the requirements hereof.

          Each
Request for Credit Extension (other than a Loan Notice requesting only a
conversion of Loans to the other Type or a continuation of Eurodollar Rate
Loans) submitted by the Borrower shall be deemed to be a representation and
warranty that the conditions specified in Sections 4.02(a) and (b)
have been satisfied on and as of the date of the applicable Credit Extension.

49

ARTICLE V.

REPRESENTATIONS AND WARRANTIES

          The Borrower
represents and warrants to the Administrative Agent and the Lenders that:

          5.01     Existence and Power. The
Borrower and each of its Subsidiaries (other than Excluded Subsidiaries):

          (a)       is
duly organized, validly existing and in good standing under the laws of the
jurisdiction of its incorporation or formation, as applicable;

          (b)       has
the power and authority and all governmental licenses, authorizations, consents
and approvals to own its assets, carry on its business and to execute, deliver,
and perform its obligations under the Loan Documents;

          (c)       is
duly qualified and is licensed and in good standing under the laws of each
jurisdiction where its ownership, lease or operation of property or the conduct
of its business requires such qualification or license; and

          (d)       is
in compliance with all Laws; except, in each case referred to in clause (a),
(b), (c) or (d), to the extent that the failure to do so
could not reasonably be expected to have a Material Adverse Effect.

          5.02     Authorization; No Contravention.
The execution, delivery and performance by the Borrower of this Agreement and
each other Loan Document have been duly authorized by all necessary corporate
or other action, and do not and will not:

          (a)       contravene
the terms of any of the Borrower’s Organization Documents;

          (b)       conflict
with or result in any breach or contravention of, or the creation of any Lien
under, any document evidencing any Contractual Obligation to which the Borrower
is a party or any order, injunction, writ or decree of any Governmental
Authority to which the Borrower or its property is subject; or

          (c)       violate
any Laws.

          5.03     Governmental Authorization.
No approval, consent, exemption, authorization, or other action by, or notice
to, or filing with, any Governmental Authority is necessary or required in
connection with the execution, delivery or performance by, or enforcement
against, the Borrower of this Agreement or any other Loan Document.

          5.04     Binding Effect. This
Agreement and each other Loan Document to which the Borrower is a party
constitute the legal, valid and binding obligations of the Borrower,
enforceable against the Borrower in accordance with their respective terms,
except as enforceability may be limited by applicable bankruptcy, insolvency,
or similar laws affecting the enforcement of creditors’ rights generally or by
equitable principles relating to enforceability.

50

          5.05     Litigation. Except as
specifically disclosed in Schedule 5.05, there are no actions, suits,
proceedings, claims or disputes pending, or to the best knowledge of the
Borrower, threatened or contemplated, at law, in equity, in arbitration or
before any Governmental Authority, against the Borrower or its Subsidiaries or
any of their respective properties which:

          (a)       purport
to affect or pertain to this Agreement or any other Loan Document, or any of
the transactions contemplated hereby or thereby; or

          (b)       if
determined adversely to the Borrower or its Subsidiaries, would reasonably be
expected to have a Material Adverse Effect. No injunction, writ, temporary
restraining order or any order of any nature has been issued by any court or
other Governmental Authority purporting to enjoin or restrain the execution,
delivery or performance of this Agreement or any other Loan Document, or
directing that the transactions provided for herein or therein not be
consummated as herein or therein provided.

          5.06     No Default. No Default or
Event of Default exists or would result from the incurring of any Obligations
by the Borrower. As of the Closing Date, neither the Borrower nor any
Subsidiary is in default under or with respect to any Contractual Obligation in
any respect which, individually or together with all such defaults, could
reasonably be expected to have a Material Adverse Effect, or that would, if
such default had occurred after the Closing Date, create an Event of Default
under Section 8.01(e). 

          5.07     ERISA Compliance. 

          (a)       Each
Plan is in compliance in all material respects with the applicable provisions
of ERISA, the Code and other Federal or state laws. Each Pension Plan that is intended
to be a qualified plan under Section 401(a) of the Code has received a
favorable determination letter from the Internal Revenue Service to the effect
that the form of such Plan is qualified under Section 401(a) of the Code and
the trust related thereto has been determined by the Internal Revenue Service
to be exempt from federal income tax under Section 501(a) of the Code, or an
application for such a letter is currently being processed by the Internal
Revenue Service. To the best knowledge of the Borrower, nothing has occurred
that would prevent or cause the loss of such tax-qualified status.

          (b)       There
are no pending or, to the best knowledge of the Borrower, threatened claims,
actions or lawsuits, or action by any Governmental Authority, with respect to
any Plan that could reasonably be expected to have a Material Adverse Effect.
There has been no prohibited transaction or violation of the fiduciary
responsibility rules with respect to any Plan that has resulted or could
reasonably be expected to result in a Material Adverse Effect.

          (c)       (i)
No ERISA Event has occurred (provided, that for purposes of this Section
5.07(c)(i), a Reportable Event shall only constitute an ERISA Event if such
Reportable Event could reasonably be expected to result in liability of the
Borrower or an ERISA Affiliate in an aggregate amount in excess of $5,000,000),
and neither the Borrower nor any ERISA Affiliate is aware of any fact, event or
circumstance that could reasonably be expected to constitute or result in an
ERISA Event with respect to any Pension Plan; (ii) the Borrower and each ERISA
Affiliate has met all applicable requirements under the Pension Funding Rules
in respect of each Pension 

51

Plan, and no waiver of the minimum funding standards under the Pension
Funding Rules has been applied for or obtained; (iii) as of the most recent
valuation date for any Pension Plan, the funding target attainment percentage
(as defined in Section 430(d)(2) of the Code) is 60% or higher and neither the
Borrower nor any ERISA Affiliate knows of any facts or circumstances that could
reasonably be expected to cause the funding target attainment percentage for
any such plan to drop below 60% as of the most recent valuation date; (iv)
neither the Borrower nor any ERISA Affiliate has incurred any liability to the
PBGC other than for the payment of premiums, and there are no premium payments
which have become due that are unpaid; (v) neither the Borrower nor any ERISA
Affiliate has engaged in a transaction that could be subject to Section 4069 or
Section 4212(c) of ERISA; and (vi) no Pension Plan has been terminated by the
plan administrator thereof nor by the PBGC, and no event or circumstance has
occurred or exists that could reasonably be expected to cause the PBGC to
institute proceedings under Title IV of ERISA to terminate any Pension Plan. 

          (d)       Neither
the Borrower or any ERISA Affiliate maintains or contributes to, or has any
unsatisfied obligation to contribute to, or liability under, any active or
terminated Pension Plan other than (A) on the Closing Date, those listed on Schedule
5.07 hereto and (B) thereafter, Pension Plans not otherwise prohibited by
this Agreement. 

          5.08     Use of Proceeds; Margin Regulations.
The proceeds of the Loans are to be used solely for the purposes set forth in
and permitted by Section 6.11 and Section 7.07. Neither the
Borrower nor any Subsidiary is generally engaged in the business of purchasing
or selling Margin Stock or extending credit for the purpose of purchasing or
carrying Margin Stock.

          5.09     Title to Properties. The
Borrower and each Subsidiary have good record and marketable title in fee
simple to, or valid leasehold interests in, all real property necessary or used
in the ordinary conduct of their respective businesses, except for such defects
in title as could not, individually or in the aggregate, have a Material
Adverse Effect. As of the Closing Date, the property of the Borrower and its
Subsidiaries (other than Excluded Subsidiaries) is subject to no Liens, other
than Permitted Liens.

          5.10     Taxes. The Borrower and its
Subsidiaries (other than Excluded Subsidiaries) have filed all federal and
other material tax returns and reports required to be filed, and have paid all
federal and other material taxes, assessments, fees and other governmental
charges levied or imposed upon them or their properties, income or assets
otherwise due and payable, except those which are being contested in good faith
by appropriate proceedings and for which adequate reserves have been provided
in accordance with GAAP. There is no proposed tax assessment against the
Borrower or any Subsidiary that would, if made, have a Material Adverse Effect
or that is not disclosed on Schedule 5.10.

          5.11     Financial Condition. 

          (a)       The
Audited Financial Statements, and the unaudited consolidated financial
statements of the Borrower and its Subsidiaries dated October 2, 2010, and the
related consolidated statements of income or operations, shareholders’ equity
and cash flows for the fiscal quarter ended on October 2, 2010 including the
notes thereto and the accompanying Management’s Discussion and Analysis of
Financial Condition and Results of Operations:

52

	
  

 	
  

 
	
  

 	
           (i)      were
 prepared in accordance with GAAP consistently applied throughout the period
 covered thereby, except as otherwise expressly noted therein, subject to
 ordinary, good faith year end audit adjustments in the case of such unaudited
 statements;

 
	
  

 	
  

 
	
  

 	
           (ii)     fairly
 present the financial condition of the Borrower and its Subsidiaries as of
 the date thereof and results of operations for the period covered thereby;
 and

 
	
  

 	
  

 
	
  

 	
           (iii)    except
 as specifically disclosed in Schedule 5.11, show all material
 Indebtedness and other liabilities, direct or contingent, of the Borrower and
 its consolidated Subsidiaries as of the date thereof, including liabilities
 for taxes, material commitments and Contingent Obligations.

 
	
  

 	
  

 
	
  

 	
 (b)      Since
 October 2, 2010, there has been no Material Adverse Effect.

 

          5.12     Environmental Matters.
Except as specifically disclosed in Schedule 5.12, existing
Environmental Laws and existing Environmental Claims could not, individually or
in the aggregate, reasonably be expected to have a Material Adverse Effect.

          5.13     Regulated Entities. Neither
the Borrower, any Person controlling the Borrower, nor any Subsidiary, is an
“Investment Company” within the meaning of the Investment Companies Act of
1940. The Borrower is not subject to any other federal or state statute or
regulation limiting its ability to incur Indebtedness.

          5.14     No Burdensome Restrictions.
Neither the Borrower nor any Subsidiary is a party to or bound by any Contractual
Obligation, or subject to any restriction in any Organization Document, or any
Requirement of Law, which could reasonably be expected to have a Material
Adverse Effect.

          5.15     Copyrights, Patents, Trademarks and Licenses,
Etc. The Borrower and its Subsidiaries (other than Excluded
Subsidiaries)own or are licensed or otherwise have the right to use all of
the patents, trademarks, service marks, trade names, copyrights, contractual
franchises, authorizations and other rights that are reasonably necessary for
the operation of their respective businesses, without any conflict with the
rights of any other Person that could reasonably be expected to have a Material
Adverse Effect. To the best knowledge of the Borrower, no slogan or other advertising
device, product, process, method, substance, part or other material now
employed, or now contemplated to be employed, by the Borrower or any Subsidiary
(other than an Excluded Subsidiary) infringes upon any rights held by any other
Person such that it could reasonably be expected to have a Material Adverse
Effect. Except as specifically disclosed in Schedule 5.05, no claim or
litigation regarding any of the foregoing is pending or threatened, and no
patent, invention, device, application, principle or any statute, law, rule,
regulation, standard or code is pending or, to the knowledge of the Borrower,
proposed, which, in either case, could reasonably be expected to have a
Material Adverse Effect.

          5.16     Subsidiaries. As of the
Closing Date, the Borrower has no Subsidiaries other than those specifically
disclosed in part (a) of Schedule 5.16 hereto and has no equity
investments in any other corporation or entity other than those permitted by Section
7.04(e) or specifically disclosed in part (b) of Schedule 5.16.

53

          5.17     Insurance. The properties
of the Borrower and its Subsidiaries (other than Excluded Subsidiaries) are
insured either with financially sound and reputable insurance companies or
under legitimate and responsible self-insurance programs, in such amounts, with
such deductibles and covering such risks as are customarily carried by
companies engaged in similar businesses and owning similar properties in
localities where the Borrower or its Subsidiaries (other than Excluded
Subsidiaries) operate.

          5.18     Full Disclosure. None of
the representations or warranties made by the Borrower or any Subsidiary in the
Loan Documents as of the date such representations and warranties are made or
deemed made, and none of the statements contained in any exhibit, report,
statement or certificate furnished by or on behalf of the Borrower or any
Subsidiary in connection with the Loan Documents (including the offering and
disclosure materials delivered by or on behalf of the Borrower to the Lenders
prior to the Closing Date), contains any untrue statement of a material fact or
omits any material fact required to be stated therein or necessary to make the
statements made therein, in light of the circumstances under which they are
made, not misleading as of the time when made or delivered.

          5.19     Taxpayer
Identification Number. The Borrower’s true and correct U.S. taxpayer
identification number is set forth on Schedule 10.02.

ARTICLE VI.

AFFIRMATIVE COVENANTS

          So long as
any Lender shall have any Commitment hereunder, any Loan or other Obligation
hereunder shall remain unpaid or unsatisfied, or any Letter of Credit shall
remain outstanding, the Borrower shall, and shall (except in the case of the covenants
set forth in Sections 6.01, 6.02, 6.03 and 6.11)
cause each Subsidiary (other than Excluded Subsidiaries) to:

          6.01     Financial
Statements. Deliver to the Administrative Agent, in form and detail
satisfactory to the Administrative Agent and the Required Lenders, with
sufficient copies for each Lender:

          (a)       as
soon as available, but not later than 90 days after the end of each fiscal year
of the Borrower, a copy of the audited consolidated balance sheet of the Borrower
and its Subsidiaries as at the end of such fiscal year and the related
consolidated statements of income or operations, shareholders’ equity and cash
flows for such fiscal year, setting forth in each case in comparative form the
figures for the previous fiscal year, all in reasonable detail and prepared in
accordance with GAAP, audited and accompanied by the opinion of Ernst &
Young LLP or another nationally-recognized independent public accounting firm
(“Independent Auditor”) which report shall state that such consolidated financial
statements present fairly the financial position for the periods indicated in
conformity with GAAP applied on a basis consistent with prior years. Such
opinion shall be prepared in accordance with generally accepted auditing
standards and shall not be subject to any “going concern” or like qualification
or be qualified or limited because of a restricted or limited examination by
the Independent Auditor of any material portion of the Borrower or any
Subsidiary’s records; and

54

          (b)       as soon as available, but not later than 45
days after the end of each of the first three fiscal quarters of each fiscal year of the Borrower, commencing with
the fiscal quarter ending April 2, 2011, a copy of the unaudited consolidated
balance sheet of the Borrower and its Subsidiaries as of the end of such fiscal
quarter and the related consolidated statements of income and cash flows for
the period commencing on the first day and ending on the last day of such
fiscal quarter, and certified by a Responsible Officer as fairly presenting, in
accordance with GAAP (subject to ordinary, good faith year-end audit
adjustments), the financial position and the results of operations of the
Borrower and its Subsidiaries. As to any information contained in
materials furnished pursuant to Section 6.02(b), the
Borrower shall not be separately required to furnish such information under clause
(a) or (b) above, but the foregoing shall not be in derogation of
the obligation of the Borrower to furnish the information and materials
described in subsections (a) and (b) above at the times specified
therein.

          6.02     Certificates;
Other Information. Deliver to the Administrative Agent with
sufficient copies for each Lender, in form and detail satisfactory to the
Administrative Agent and the Required Lenders:

          (a)       (i)
concurrently with the delivery of the financial statements referred to in subsections
6.01(a) and (b), a Compliance Certificate, executed by a Responsible
Officer, which certifies, among other things, that no Default or Event of
Default has occurred and is continuing (except as described therein);

          (b)       promptly,
copies of all financial statements and reports that the Borrower sends to its
shareholders, and copies of all financial statements and regular, periodical or
special reports (including Forms 10K, 10Q and 8K) that the Borrower or any
Subsidiary may make to, or file with, the SEC;

          (c)       promptly,
such additional information regarding the business, financial or corporate
affairs of the Borrower or any Subsidiary as the Administrative Agent, at the
request of any Lender, may from time to time reasonably request; and

          (d)       promptly,
written notice of the Borrower’s receipt of a Debt Rating or any change in such
Debt Rating.

          Documents
required to be delivered pursuant to Section 6.01(a) or (b) or Section
6.02(b) (to the extent any such documents are included in materials
otherwise filed with the SEC) may be delivered electronically and if so
delivered, shall be deemed to have been delivered on the date (i) on which the
Borrower posts such documents, or provides a link thereto on the Borrower’s
website on the Internet at the website address listed on Schedule 10.02;
or (ii) on which such documents are posted on the Borrower’s behalf on
IntraLinks/IntraAgency or another relevant website, if any, to which each
Lender and the Administrative Agent have access (whether a commercial,
third-party website or whether sponsored by the Administrative Agent); provided
that: (i) the Borrower shall deliver paper copies of such documents to the
Administrative Agent upon its request for itself and to each Lender that makes
a request to the Borrower to deliver such paper copies until a written request
to cease delivering paper copies is given by the Administrative Agent on behalf
of itself or such Lender and (ii) the Borrower shall notify (which may be by
facsimile or electronic mail) the Administrative Agent and each Lender 

55

of the posting of any such documents and provide to the Administrative
Agent by electronic mail electronic versions (i.e., soft copies) of such
documents. The Administrative Agent shall have no obligation to request the
delivery or to maintain copies of the documents referred to above, and in any event
shall have no responsibility to monitor compliance by the Borrower with any
such request for delivery, and each Lender shall be solely responsible for
requesting delivery to it or maintaining its copies of such documents.

          The Borrower hereby acknowledges that (a)
the Administrative Agent and/or the Arranger will make available to the Lenders
and the L/C Issuer materials and/or information provided by or on behalf of the
Borrower hereunder (collectively, “Borrower Materials”) by posting the Borrower
Materials on IntraLinks or another similar electronic system (the “Platform”)
and (b) certain of the Lenders (each, a “Public Lender”) may have
personnel who do not wish to receive material non-public information with
respect to the Borrower or its Affiliates, or the respective securities of any
of the foregoing, and who may be engaged in investment and other market-related
activities with respect to such Persons’ securities. The Borrower hereby agrees
that (w) all Borrower Materials that are to be made available to Public Lenders
shall be clearly and conspicuously marked “PUBLIC” which, at a minimum, shall
mean that the word “PUBLIC” shall appear prominently on the first page thereof;
(x) by marking Borrower Materials “PUBLIC,” the Borrower shall be deemed to
have authorized the Administrative Agent, the Arranger, the L/C Issuer and the
Lenders to treat such Borrower Materials as not containing any material
non-public information with respect to the Borrower or its securities for
purposes of United States Federal and state securities laws (provided, however,
that to the extent such Borrower Materials constitute Information, they shall
be treated as set forth in Section 10.07); (y) all Borrower Materials
marked “PUBLIC” are permitted to be made available through a portion of the
Platform designated “Public Side Information;” and (z) the Administrative Agent
and the Arranger shall be entitled to treat any Borrower Materials that are not
marked “PUBLIC” as being suitable only for posting on a portion of the Platform
not designated “Public Side Information.” 

          6.03     Notices.
Promptly notify the Administrative Agent and each Lender:

          (a)       of
the occurrence of any Default or Event of Default, and of the occurrence or
existence of any event or circumstance that is reasonably likely to become a
Default or Event of Default;

          (b)       of
any matter that has resulted or is reasonably likely to result in a Material
Adverse Effect, including (insofar as the same has resulted or is reasonably
likely to result in a Material Adverse Effect) (i) breach or non-performance
of, or any default under, a Contractual Obligation of the Borrower or its
Subsidiaries; (ii) any dispute, litigation, investigation, proceeding or
suspension between the Borrower or any of its Subsidiaries and any Governmental
Authority; or (iii) the commencement of, or any material development in, any
litigation or proceeding affecting the Borrower or any of its Subsidiaries,
including pursuant to any applicable Environmental Laws;

          (c)       of
any of the following events affecting the Borrower, together with a copy of any
notice with respect to such event that may be required to be filed with a Governmental
Authority 

56

and any notice delivered by a Governmental Authority to the Borrower
with respect to such event:

	
  

 	
  

 
	
  

 	
           (i)      an
 ERISA Event;

 
	
  

 	
  

 
	
  

 	
           (ii)     the
 adoption of any new Pension Plan or other Plan subject to Section 412 of the
 Code;

 
	
  

 	
  

 
	
  

 	
           (iii)    the
 adoption of any amendment to a Pension Plan or other Plan subject to Section
 412 of the Code that results in a material increase in contributions or
 Unfunded Pension Liability; or

 
	
  

 	
  

 
	
  

 	
           (iv)     the
 commencement of contributions to any Pension Plan or other Plan subject to
 Section 412 of the Code; and

 

          (d)       of
any material change in accounting policies or financial reporting practices by
the Borrower or any of its consolidated Subsidiaries.

          Each
notice under this Section shall be accompanied by a written statement by a
Responsible Officer setting forth details of the occurrence referred to
therein, and stating what action the Borrower or any affected Subsidiary
proposes to take with respect thereto and at what time. Each notice under Section
6.03(a) shall describe with particularity any and all clauses or provisions
of this Agreement or other Loan Document that have been (or reasonably
foreseeably will be) breached or violated.

          6.04     Preservation
of Corporate Existence, Etc. 

          (a)       Preserve
and maintain in full force and effect its corporate existence and good standing
under the laws of its state or jurisdiction of incorporation or formation,
except with respect to any Subsidiary that is not the continuing or surviving
Person or any Subsidiary that disposes of all of its assets to another Person,
in each case in connection with transactions permitted by Section 7.03;

          (b)       preserve
and maintain in full force and effect all governmental rights, privileges,
qualifications, permits, licenses and franchises necessary or desirable in the
normal conduct of its business except in connection with transactions permitted
by Section 7.03 and sales of assets permitted by Section 7.02;

          (c)       use
reasonable efforts, in the ordinary course of business, to preserve its
business organization and goodwill, except with respect to any Subsidiary that
is not the continuing or surviving Person or any Subsidiary that disposes of
all of its assets to another Person, in each case in connection with
transactions permitted by Section 7.03; and

          (d)       preserve
or renew, to the extent permitted by Law, all of its registered patents,
trademarks, trade names and service marks, the non-preservation of which could reasonably
be expected to have a Material Adverse Effect.

57

          6.05     Maintenance
of Property. Maintain, and preserve all its property which is used
or useful in its business in good working order and condition, ordinary wear
and tear excepted, and make all necessary repairs thereto and renewals and
replacements thereof except where the failure to do so could not reasonably be
expected to have a Material Adverse Effect. The Borrower and each Subsidiary
(other than an Excluded Subsidiary) shall use the standard of care typical in
the industry in the operation and maintenance of its facilities.

          6.06     Insurance.
Maintain, either with financially sound and reputable independent insurers or
under legitimate and responsible self-insurance programs, insurance with
respect to its properties and business against loss or damage of the kinds
customarily insured against by Persons engaged in the same or similar business,
of such types and in such amounts as are customarily carried under similar
circumstances by such other Persons; provided that at all times during
the term of this Agreement the Borrower shall maintain insurance coverage with
sound and reputable independent insurers or legitimate and responsible
self-insurance programs in substantially the same amounts and covering
substantially the same risks as the coverage existing on the Closing Date which
is specifically disclosed in Schedule 6.06. Upon request of the
Administrative Agent or any Lender, the Borrower shall furnish the
Administrative Agent, with sufficient copies for each Lender, at reasonable
intervals (but not more than once per calendar year) a certificate of the
Borrower’s insurance broker setting forth the nature, extent and such other
information as the Administrative Agent may reasonably request regarding the
independent insurance maintained by the Borrower and its Subsidiaries (other
than Excluded Subsidiaries) in accordance with this Section 6.06.

          6.07     Payment
of Obligations. Pay and discharge as the same shall become due and
payable, all their respective obligations and liabilities with respect to which
the failure to make payment could reasonably be expected to have a Material
Adverse Effect, including (insofar as the same could reasonably be expected to
have a Material Adverse Effect):

          (a)       all
tax liabilities, assessments and governmental charges or levies upon it or its
properties or assets, unless the same are being contested in good faith by appropriate
proceedings and adequate reserves in accordance with GAAP are being maintained
by the Borrower or such Subsidiary;

          (b)       all
lawful claims which, if unpaid, would by law become a Lien upon its property,
unless the same are being contested in good faith by appropriate proceedings and
adequate reserves in accordance with GAAP are being maintained by the Borrower
or such Subsidiary; and

          (c)       all
Indebtedness, as and when due and payable.

          6.08     Compliance
with Laws. Comply, in all material respects with all requirements of
Law of any Governmental Authority having jurisdiction over it or its business
(including the Federal Fair Labor Standards Act and Regulation U issued by the
FRB), except such as may be contested in good faith or as to which a bona fide
dispute may exist.

          6.09     Inspection
of Property and Books and Records.
The Borrower shall maintain and shall cause each Subsidiary (other than
Excluded Subsidiaries) to maintain proper books of 

58

record and account, in which full, true and correct entries in conformity
with GAAP consistently applied shall be made of all financial transactions and
matters involving the assets and business of the Borrower and its Subsidiaries.
The Borrower shall permit, and shall cause each Subsidiary (other than Excluded
Subsidiaries) to permit, representatives and independent contractors of the
Administrative Agent, at the expense of the Borrower for one annual visit and
inspection and at the expense of the Administrative Agent for each more
frequent visit and inspection, or any Lender, at such Lender’s expense, to
visit and inspect any of their respective properties, to examine their
respective corporate, financial and operating records, and make copies thereof
or abstracts therefrom, and to discuss their respective affairs, finances and
accounts with their respective directors, officers, and independent public
accountants, all at such reasonable times during normal business hours and as
often as may be reasonably desired, upon reasonable advance notice to the
Borrower; provided, however, when an Event of Default exists the
Administrative Agent or any other agent or representative appointed by the
Required Lenders may do any of the foregoing at the expense of the Borrower at
any time during normal business hours and without advance notice at the
Borrower’s expense.

          6.10     Environmental
Laws. The Borrower shall, and shall cause each Subsidiary to,
conduct its operations and keep and maintain its property in compliance with
all Environmental Laws (except for any noncompliance which has not resulted or
is not reasonably likely to result in a Material Adverse Effect).

          6.11     Use
of Proceeds. Use the proceeds of the Credit Extensions (a) to
refinance outstandings under the Existing 2006 Multi-Year Credit Agreement; (b)
to pay fees and expenses relating to such financings; (c) for working capital,
capital expenditures, acquisitions, share repurchases and other corporate
purposes not in contravention of any Law or of any Loan Document; and (d) to
provide liquidity to support the Borrower’s commercial paper program.

ARTICLE VII.

NEGATIVE COVENANTS

          So long as
any Lender shall have any Commitment hereunder, any Loan or other Obligation
hereunder shall remain unpaid or unsatisfied, or any Letter of Credit shall remain
outstanding, the Borrower shall not, nor shall it permit any Subsidiary (other
than an Excluded Subsidiary) to, directly or indirectly:

          7.01     Limitation
on Liens. Create, incur, assume or suffer to exist any Lien upon any
of its property, assets or revenues, whether now owned or hereafter acquired,
other than the following (“Permitted Liens”): 

          (a)       any
Lien existing on property of the Borrower or any Subsidiary on the Closing Date
and set forth in Schedule 7.01 securing Indebtedness outstanding on such
date and any renewals or extensions thereof, provided that the property
covered thereby is not increased and, in the case of any Liens on property of
any Subsidiary whose Indebtedness is secured thereby, any renewal or extension
of the obligations secured or benefited thereby, if applicable, is permitted by
Section 7.05;

          (b)       any
Lien created under any Loan Document;

59

          (c)     Liens
for taxes, fees, assessments or other governmental charges which-are not
delinquent or remain payable without penalty, or to the extent that non-payment
thereof is permitted by Section 6.07, provided that no notice of lien
has been filed or recorded under the Code;

          (d)     carriers’,
warehousemen’s, mechanics’, landlords’, materialmen’s, repairmen’s or other
similar Liens arising in the ordinary course of business which are not
delinquent or remain payable without penalty or which are being contested in
good faith and by appropriate proceedings, which proceedings have the effect of
preventing the forfeiture or sale of the property subject thereto;

          (e)     Liens
(other than any Lien imposed by ERISA) consisting of pledges or deposits
required in the ordinary course of business in connection with workers’ compensation,
unemployment insurance and other social security legislation;

          (f)     Liens
on the property of the Borrower or any of its Subsidiaries securing (i) the
non-delinquent performance of bids, trade contracts (other than for borrowed money),
leases, statutory obligations, (ii) contingent obligations on surety and appeal
bonds, and (iii) other non-delinquent obligations of a like nature; in each
case, incurred in the ordinary course of business, provided all such Liens in
the aggregate would not (even if enforced) cause a Material Adverse Effect;

          (g)     easements,
rights-of-way, restrictions and other similar encumbrances incurred in the
ordinary course of business which, in the aggregate, are not substantial in
amount, and which do not in any case materially detract from the value of the
property subject thereto or interfere with the ordinary conduct of the
businesses of the Borrower and its Subsidiaries;

          (h)     Liens
on assets of companies which become Subsidiaries after the date of this
Agreement, provided, however, that such Liens existed at the time
the respective companies became Subsidiaries and were not created in
anticipation thereof, and any renewals or extensions thereof, provided
that the property covered thereby is not increased and, in the case of any
Liens on property of any Subsidiary whose Indebtedness is secured thereby, any
renewal or extension of the obligations secured or benefited thereby, if
applicable, is permitted by Section 7.05;

          (i)      purchase
money security interests on any property acquired or held by the Borrower or
any Subsidiary in the ordinary course of business, securing Indebtedness
incurred or assumed for the purpose of financing all or any part of the cost of
acquiring such property; provided that (i) any such Lien attaches to
such property concurrently with or within 20 days after the acquisition
thereof, (ii) such Lien attaches solely to the property so acquired in such
transaction, (iii) the principal amount of the debt secured thereby does not
exceed 100% of the cost of such property, and (iv) the principal amount of the
Indebtedness secured by any and all such purchase money security interests
shall not at any time exceed $75,000,000;

          (j)     Liens
securing obligations in respect of capital leases on assets subject to such
leases, provided that such capital leases are otherwise permitted
hereunder;

          (k)     Liens
arising solely by virtue of any statutory or common law provision relating to
banker’s liens, rights of set-off or similar rights and remedies as to deposit
accounts or other 

60

funds maintained with a creditor depository institution; provided
that (i) such deposit account is not a dedicated cash collateral account and is
not subject to restrictions against access by the Borrower in excess of those
set forth by regulations promulgated by the FRB, and (ii) such deposit account
is not intended by either of the Borrower or any Subsidiary to provide
collateral to the depository institution;

          (l)       other
Liens on property, provided that the sum of the aggregate Indebtedness secured
by such Liens (exclusive of Indebtedness secured by Liens permitted by clauses
(a) through (k), (m) and (n) hereof) shall not exceed
an amount equal to 5% of Consolidated Tangible Net Worth as shown on the
Borrower’s consolidated balance sheet for its most recent prior fiscal quarter;

          (m)       Liens
on accounts receivable and related property of any Subsidiary of the Borrower
and/or on any such related property of the Borrower, in each case subject to a
Permitted Receivables Facility and created in connection with such Permitted
Receivables Facility; 

          (n)       Liens
on property existing at the time of acquisition thereof by the Borrower or any
Subsidiary; provided, such Liens were in existence prior to such
acquisition and were not created in contemplation of such acquisition; and

          (o)       Liens
securing reimbursement obligations with respect to letters of credit arising by
operation of law under Section 5-118(a) of the Uniform Commercial Code.

          7.02     Disposition
of Assets. Sell, assign, lease, convey, transfer or otherwise
dispose of (whether in one or a series of transactions) any property (including
accounts and notes receivable, with or without recourse) or enter into any
agreement to do any of the foregoing, except:

          (a)       dispositions
of inventory, or used, worn-out or surplus equipment, all in the ordinary
course of business;

          (b)       the
sale of equipment to the extent that such equipment is exchanged for credit
against the purchase price of similar replacement equipment, or the proceeds of
such sale are reasonably promptly applied to the purchase price of such
replacement equipment;

          (c)       other
dispositions of property during the term of this Agreement whose net book value
in the aggregate shall not exceed 10% of the total assets of the Borrower and
its consolidated Subsidiaries as reflected on the balance sheet of the Borrower
and its consolidated Subsidiaries for their most recent prior fiscal quarter;
and

          (d)       the
sale of notes or account receivables (or interests therein) pursuant to and in
accordance with the terms of a Permitted Receivables Facility by the Borrower or
any Subsidiary.

          7.03     Consolidations
and Mergers. Merge, consolidate with or into, or convey, transfer,
lease or otherwise dispose of (whether in one transaction or in a series of
transactions) 

61

all or substantially all of its assets (whether now owned or hereafter
acquired) to or in favor of any Person, except:

          (a)       any
Subsidiary may merge with the Borrower, provided that the Borrower shall
be the continuing or surviving corporation, or with any one or more
Subsidiaries;

          (b)       any
Subsidiary may sell all or substantially all of its assets (upon voluntary
liquidation or otherwise), to the Borrower or another Subsidiary or as
otherwise permitted by Section 7.02; and

          (c)       any
Subsidiary may merge with a third party in order to consummate an Acquisition
permitted by Section 7.04, including any merger as a result of which the
third party is the surviving entity, so long as such entity upon the
consummation of the merger is a Subsidiary.

          7.04     Loans
and Investments. Purchase or acquire, or make any commitment
therefor, any capital stock, equity interest, or any obligations or other
securities of, or any interest in, any Person, or make or commit to make any
Acquisitions, or make or commit to make any advance, loan, extension of credit
or capital contribution to or any other investment in, any Person including any
Affiliate of the Borrower, except for:

          (a)       investments
in cash equivalents and short term marketable securities in accordance with the
written investment policy approved from time to time by the Borrower’s board of
directors, a current copy of which is set forth as Schedule 7.04(a)
attached hereto and provided further, that the Borrower shall provide a copy of
such policy to any Lender upon written request given to the Administrative
Agent from time to time;

          (b)       extensions
of credit in the nature of accounts receivable or notes receivable arising from
the sale or lease of goods or services in the ordinary course of business;

          (c)       extensions
of credit by the Borrower to any of its Subsidiaries or by any of its
Subsidiaries to another of its Subsidiaries;

          (d)       Acquisitions,
including investments in a Subsidiary or a third party incurred in order to
consummate Acquisitions, provided that (i) such Acquisitions are
undertaken in accordance with all applicable Laws; and (ii) the prior,
effective written consent or approval to such Acquisition of the board of
directors or equivalent governing body of the acquiree or any owner of any
assets being acquired is obtained if such consent or approval is required to
authorize the same;

          (e)       minority
equity investments or venture capital investments, provided that such
investments are within the healthcare industry;

          (f)       loans
or other advances made during the term of this Agreement by the Borrower or any
of their Subsidiaries which in the aggregate do not exceed 1% of the total assets
of the Borrower and its consolidated Subsidiaries as reflected on the balance
sheet of the Borrower and its consolidated Subsidiaries for the most recent
fiscal quarter preceding the date of determination;

62

          (g)       Advances
to officers, directors and employees of the Borrower and Subsidiaries in an
aggregate amount not to exceed $5,000,000 at
any time outstanding, for travel, entertainment, relocation and analogous
ordinary business purposes; and 

          (h)       investments
in one or more Subsidiaries of the Borrower by the Borrower or another
Subsidiary.

The Borrower shall not, and shall not suffer or permit any of its
Subsidiaries to, use any portion of the Loan proceeds, directly or indirectly,
to acquire any securities in connection with any transaction subject to Section
13(d) (other than an Investment Transaction) or Section 14 of the Exchange Act,
unless, prior to the time such transaction becomes subject to such Section 13
or 14, the board of directors or other applicable governing body of the Person
that is the issuer of such securities has adopted a resolution approving such
transaction. For purposes of this Section 7.04, an “Investment
Transaction” means a transaction subject to Section 13(d) of the Exchange
Act, provided that in connection with such transaction the Borrower or any Subsidiary
(as the case may be) has reported and at all times continues to report to the
SEC that such transaction is undertaken for investment purposes or strategic
business purposes.

          7.05     Limitation
on Subsidiary Indebtedness. Permit any Subsidiary to create, incur,
assume, suffer to exist, or otherwise become or remain directly or indirectly
liable with respect to, any Indebtedness or Contingent Obligations, except:

          (a)       Indebtedness
outstanding on the date hereof and listed on Schedule 7.05 and any
refinancings, refundings, renewals or extensions thereof; provided that
the amount of such Indebtedness is not increased at the time of such
refinancing, refunding, renewal or extension except by an amount equal to a
reasonable premium or other reasonable amount paid, and fees and expenses
reasonably incurred, in connection therewith and by an amount equal to any
existing commitments unutilized thereunder;

          (b)       letters
of credit, bid bonds, performance guarantees and overdraft obligations
guaranteed by the Borrower so long as the aggregate Indebtedness and Contingent
Obligations under this subsection (b) is not of any time in excess of
$75,000,000;

          (c)       endorsements
for collection or deposit in the ordinary course of business;

          (d)       Indebtedness
of any Subsidiary incurred pursuant to a Permitted Receivables Facility; 

          (e)       Indebtedness
consisting of (i) the 1.58% unsecured private placement notes issued by St.
Jude Medical Japan Co. Ltd. (“SJM Japan”) in April 2010 in the original
principal amount of 8,140,500,000 Japanese Yen, guaranteed by the Borrower and
maturing April 28, 2017, (ii) the 2.04% unsecured private placement notes
issued by SJM Japan in April 2010 in the original principal amount of
12,753,450,000 Japanese Yen, guaranteed by the Borrower and maturing April 20,
2020, and (iii) all loans and other obligations incurred by SJM Japan under an
overdraft facility with Mizuho Corporate Bank in the maximum aggregate
principal amount at any time outstanding of 8,000,000,000 Japanese Yen, and,
with respect to each of clauses (i), (ii) and (iii), any
refinancings, refundings, renewals or extensions thereof; provided that
the amount of such Indebtedness is not increased at the time of such
refinancing, refunding, renewal or extension 

63

except by an amount equal to a reasonable premium or other reasonable
amount paid, and fees and expenses reasonably incurred, in connection therewith
and by an amount equal to any existing commitments unutilized thereunder;

          (f)       Indebtedness
consisting of (i) agreements by a Subsidiary in connection with an acquisition
to provide additional consideration payments upon the achievement of certain
milestones, (ii) contingent commitments by a Subsidiary to acquire various
businesses involved in the distribution of the Borrower’s or its Subsidiaries’
products, (iii) commitments by a Subsidiary to fund minority investments and
(iv) other contingent acquisition payments to be made by a Subsidiary; and 

          (g)       other
Indebtedness or Contingent Obligations, provided that the aggregate
amount of Indebtedness and Contingent Obligations permitted under subsections
(a) and (g) of this Section 7.05 shall not exceed
$250,000,000.

The restrictions
contained in this Section shall not include any Indebtedness of any Subsidiary
incurred under this Agreement.

          7.06     Transactions
with Affiliates. Enter into any transaction with any Affiliate of
the Borrower, except upon fair and reasonable terms no less favorable to the
Borrower or such Subsidiary than would obtain in a comparable arm’s-length
transaction with a Person not an Affiliate of the Borrower or such Subsidiary.

          7.07     Use
of Proceeds; Regulation U. Following the application of proceeds of
each Loan, have more than 25% of the value of assets of the Borrower, which are
subject to any arrangement with the Administrative Agent or any Lender (herein
or otherwise) whereby the Borrower’s or any Subsidiary’s right or ability to
sell, pledge or otherwise dispose of assets is in any way restricted, be Margin
Stock.

          7.08     Limitation on Subsidiary Dividends.
Permit any Subsidiary (other than an Excluded Subsidiary) to enter into any
agreement with any Person (other than the Lenders pursuant to this Agreement)
which prohibits or limits the ability of such Subsidiary (other than an
Excluded Subsidiary) to declare or pay any dividends or make other
distributions of assets, properties, cash, rights, obligations or securities on
account of any shares of any class of the capital stock of such Subsidiary
(other than an Excluded Subsidiary).

          7.09     Joint Ventures. Enter into
any Joint Venture which is not in the healthcare industry.

          7.10     Restricted
Payments. Declare or make any dividend payment or other distribution
of assets, properties, cash, rights, obligations or securities on account of
any shares of any class of its capital stock, or purchase, redeem or otherwise
acquire for value any shares of its capital stock or any warrants, rights or
options to acquire such shares, now or hereafter outstanding; except that the
Borrower and any wholly-owned Subsidiary may:

          (a)       declare
and make dividend payments or other distributions payable solely in its common
stock;

64

          (b)        purchase,
redeem or otherwise acquire shares of its common stock or warrants or options
to acquire any such shares with the proceeds received from the substantially
concurrent issue of new shares of its common stock; and

          (c)        declare
or pay cash dividends to its stockholders and purchase, redeem or otherwise
acquire shares of its capital stock or warrants, rights or options to acquire
any such shares for cash provided, that, before and immediately after
giving effect to such proposed action, no Default or Event of Default exists or
would exist.

          7.11      Change in
Business. Engage in any material line of business substantially
different from those lines of business carried on by the Borrower and its
Subsidiaries on the date hereof.

          7.12      Accounting Changes. Make any significant
change in accounting treatment or reporting practices, except as required by
GAAP, or change the fiscal year of the Borrower or of any Subsidiary. 

          7.13      Consolidated Leverage Ratio. Permit the
Consolidated Leverage Ratio at any time during any period of four fiscal
quarters of the Borrower to be greater than 3.0 to 1.0 for the four fiscal
quarters ending on such date.

ARTICLE VIII.

EVENTS OF DEFAULT AND REMEDIES

          8.01     Events of
Default. Any of the following shall constitute an “Event of
Default”:

          (a)        Non-Payment.
The Borrower fails to pay (i) when and as required to be paid herein, any
amount of principal of any Loan or any L/C Obligation, or (ii) within three
days after the same becomes due, any interest on any Loan or on any L/C
Obligation, or any facility,
utilization or other fee due hereunder, or (iii) within five days after
the same becomes due, any other amount payable hereunder or under any other
Loan Document; or

          (b)        Specific
Covenants. The Borrower fails to perform or observe any term, covenant or
agreement contained in any of Section 6.01, 6.02,
6.03, 6.09, or 6.11 or Article VII and, with
respect to any default under Section 6.01 or 6.02, such default
shall remain unremedied for a period of five days; or

          (c)        Other
Defaults. The Borrower fails to perform or observe any other covenant or
agreement (not specified in subsection (a) or (b) above)
contained in any Loan Document on its part to be performed or observed and such
failure continues unremedied for 30 days after the earlier of (i) the date upon
which a Responsible Officer knew or reasonably should have known of such
failure and (ii) the date upon which written notice thereof is given to the
Borrower by the Administrative Agent or any Lender; or

          (d)        Representations
and Warranties. Any representation, warranty, certification or statement of
fact made or deemed made by or on behalf of the Borrower herein, in any other
Loan Document, or in any document delivered in connection herewith or therewith
shall be incorrect or misleading when made or deemed made; or

65

          (e)        Cross-Default.
(i) The Borrower or any Subsidiary (other than an Excluded Subsidiary) (A)
fails to make any payment when due (whether by scheduled maturity, required
prepayment, acceleration, demand, or otherwise) in respect of any Indebtedness
or Guarantee (other than Indebtedness hereunder and Indebtedness under Swap
Contracts) having an aggregate principal amount (including undrawn committed or
available amounts and including amounts owing to all creditors under any
combined or syndicated credit arrangement) of more than the $75,000,000, or (B)
fails to observe or perform any other agreement or condition relating to any
such other Indebtedness or Guarantee or contained in any instrument or
agreement evidencing, securing or relating thereto, or any other event occurs,
the effect of which default or other event is to cause, with the giving of
notice if required, such Indebtedness to be demanded or to become due or to be
repurchased, prepaid, defeased or redeemed (automatically or otherwise), or an
offer to repurchase, prepay, defease or redeem such Indebtedness to be made,
prior to its stated maturity, or such Guarantee to become payable or cash
collateral in respect thereof to be demanded; or (ii) there occurs under any
Swap Contract an Early Termination Date (as defined in such Swap Contract) resulting
from (A) any event of default under such Swap Contract as to which the Borrower
or any Subsidiary is the Defaulting Party (as defined in such Swap Contract) or
(B) any Termination Event (as so defined) under such Swap Contract as to which
the Borrower or any Subsidiary is an Affected Party (as so defined) and, in
either event, the Swap Termination Value owed by the Borrower or such
Subsidiary as a result thereof is greater than $75,000,000; or

          (f)        Insolvency
Proceedings, Etc. The Borrower or any of its Subsidiaries (other than an
Excluded Subsidiary) institutes or consents to the institution of any
proceeding under any Debtor Relief Law, or makes an assignment for the benefit
of creditors; or applies for or consents to the appointment of any receiver,
trustee, custodian, conservator, liquidator, rehabilitator or similar officer
for it or for all or any material part of its property; or any receiver,
trustee, custodian, conservator, liquidator, rehabilitator or similar officer
is appointed without the application or consent of such Person and the
appointment continues undischarged or unstayed for 60 calendar days; or any
proceeding under any Debtor Relief Law relating to any such Person or to all or
any material part of its property is instituted without the consent of such
Person and continues undismissed or unstayed for 60 calendar days, or an order
for relief is entered in any such proceeding; or

          (g)        Inability
to Pay Debts; Attachment. (i) The Borrower or any Subsidiary (other than an
Excluded Subsidiary) becomes unable or admits in writing its inability or fails
generally to pay its debts as they become due, or (ii) any writ or warrant of
attachment or execution or similar process is issued or levied against all or any
material part of the property of any such Person and is not released, vacated
or fully bonded within 30 days after its issue or levy; or

          (h)        Judgments.
There is entered against the Borrower or any Subsidiary (other than an Excluded
Subsidiary) (i) a final judgment or order for the payment of money in an
aggregate amount exceeding $150,000,000 (to the extent not covered by
independent third-party insurance), or (ii) any one or more non-monetary final
judgments that have, or could reasonably be expected to have, individually or
in the aggregate, a Material Adverse Effect and, in either case, (A)
enforcement proceedings are commenced by any creditor upon such judgment or
order, or (B) there is a period of 45 consecutive days during which a stay of
enforcement of such judgment, by reason of a pending appeal or otherwise, is
not in effect; or 

66

          (i)        ERISA.
(i) An ERISA Event occurs with respect to a Pension Plan or Multiemployer Plan
which has resulted or could reasonably be expected to result in liability of
the Borrower under Title IV of ERISA to the Pension Plan, Multiemployer
Plan or the PBGC in an aggregate amount in excess of $50,000,000, or (ii) the
Borrower or any ERISA Affiliate fails to pay when due, after the expiration of
any applicable grace period, any installment payment with respect to its
withdrawal liability under Section 4201 of ERISA under a Multiemployer Plan in
an aggregate amount in excess of $125,000,000; or

          (j)        Invalidity
of Loan Documents. Any Loan Document, at any time after its execution and
delivery and for any reason other than as expressly permitted hereunder or
satisfaction in full of all the Obligations, ceases to be in full force and
effect; or the Borrower or any other Person contests in any manner the validity
or enforceability of any Loan Document; or the Borrower denies that it has any
or further liability or obligation under any Loan Document, or purports to
revoke, terminate or rescind any Loan Document; or

          (k)        Change
of Control. There occurs any Change of Control with respect to the
Borrower; or

          (l)        Loss
of Licenses. (i) The Food and Drug Administration or any other Governmental
Authority revokes or fails to renew any material license, permit, franchise,
patent, trademark, service mark, trade name, copyright, authorization or other
right of the Borrower or any Subsidiary, or the Borrower or any Subsidiary for
any reason loses any material license, permit, franchise, patent, trademark,
service mark, trade name, copyright, authorization or other right, or the
Borrower or any Subsidiary suffers the imposition of any restraining order,
escrow, suspension or impound of funds in connection with any proceeding
(judicial or administrative) with respect to any material license, permit,
franchise, patent, trademark, service mark, trade name, copyright,
authorization or other right; and (ii) any event or circumstance described in clause
(i) has resulted or is reasonably likely to result in a Material Adverse
Effect.

          8.02     Remedies
Upon Event of Default. If any Event of Default occurs and is
continuing, the Administrative Agent shall, at the request of, or may, with the
consent of, the Required Lenders, take any or all of the following actions:

          (a)        declare
the commitment of each Lender to make Loans and any obligation of the L/C
Issuer to make L/C Credit Extensions to be terminated, whereupon such
commitments and obligation shall be terminated; 

          (b)        declare
the unpaid principal amount of all outstanding Loans, all interest accrued and
unpaid thereon, and all other amounts owing or payable hereunder or under any
other Loan Document to be immediately due and payable, without presentment,
demand, protest or other notice of any kind, all of which are hereby expressly
waived by the Borrower; 

          (c)        require
that the Borrower Cash Collateralize the L/C Obligations (in an amount equal to
the then Outstanding Amount thereof); and

          (d)        exercise
on behalf of itself and the Lenders all rights and remedies available to it and
the Lenders under the Loan Documents or applicable law;

67

provided, however, that upon the
occurrence of an actual or deemed entry of an order for relief with respect to
the Borrower under the Bankruptcy Code of the United States, the obligation of
each Lender to make Loans and any obligation of the L/C Issuer to make L/C
Credit Extensions shall automatically terminate, the unpaid principal amount of
all outstanding Loans and all interest and other amounts as aforesaid shall
automatically become due and payable, and the obligation of the Borrower to
Cash Collateralize the L/C Obligations as aforesaid shall automatically become
effective, in each case without further act of the Administrative Agent or any
Lender.

          8.03     Application
of Funds. After the exercise of remedies provided for in Section
8.02 (or after the Loans have automatically become immediately due and
payable and the L/C Obligations have automatically been required to be Cash
Collateralized as set forth in the proviso to Section 8.02), any amounts
received on account of the Obligations shall, subject to the provisions of Sections
2.14 and 2.15, be applied by the Administrative Agent in the
following order:

          First,
to payment of that portion of the Obligations constituting fees, indemnities,
expenses and other amounts (including Attorney Costs and amounts payable under Article
III) payable to the Administrative Agent in its capacity as such;

          Second,
to payment of that portion of the Obligations constituting fees, indemnities
and other amounts (other than principal and interest) payable to the Lenders
(including Attorney Costs and amounts payable under Article III),
ratably among them in proportion to the amounts described in this clause Second
payable to them;

          Third,
to payment of that portion of the Obligations constituting accrued and unpaid
interest on the Loans, L/C Borrowings and other Obligations, ratably among the
Lenders and the L/C Issuer in proportion to the respective amounts described in
this clause Third payable to them;

          Fourth,
to payment of that portion of the Obligations constituting unpaid principal of
the Loans and L/C Borrowings, ratably among the Lenders and the L/C Issuer in
proportion to the respective amounts described in this clause Fourth
held by them;

          Fifth,
to the Administrative Agent for the account of the L/C Issuer, to Cash
Collateralize that portion of L/C Obligations comprised of the aggregate
undrawn amount of Letters of Credit to the extent not otherwise Cash
Collateralized by the Borrower pursuant to Sections 2.03 and 2.14;
and

          Last,
the balance, if any, after all of the Obligations have been indefeasibly paid
in full, to the Borrower or as otherwise required by Law.

Subject to Sections
2.03(c) and 2.14, amounts used to Cash Collateralize the aggregate
undrawn amount of Letters of Credit pursuant to clause Fifth above shall
be applied to satisfy drawings under such Letters of Credit as they occur. If
any amount remains on deposit as Cash Collateral after all Letters of Credit
have either been fully drawn or expired, such remaining amount shall be applied
to the other Obligations, if any, in the order set forth above.

68

ARTICLE IX.

ADMINISTRATIVE AGENT

          9.01     Appointment and Authority. Each
of the Lenders and the L/C Issuer hereby irrevocably appoints Bank of America
to act on its behalf as the Administrative Agent hereunder and under the other
Loan Documents and authorizes the Administrative Agent to take such actions on
its behalf and to exercise such powers as are delegated to the Administrative
Agent by the terms hereof or thereof, together with such actions and powers as
are reasonably incidental thereto. The provisions of this Article are solely
for the benefit of the Administrative Agent, the Lenders and the L/C Issuer,
and the Borrower shall not have rights as a third party beneficiary
of any of such provisions.

          9.02     Rights as a
Lender. The Person serving as the Administrative Agent hereunder
shall have the same rights and powers in its capacity as a Lender as any other
Lender and may exercise the same as though it were not the Administrative Agent
and the term “Lender” or “Lenders” shall, unless otherwise expressly indicated
or unless the context otherwise requires, include the Person serving as the
Administrative Agent hereunder in its individual capacity. Such Person and its
Affiliates may accept deposits from, lend money to, act as the financial
advisor or in any other advisory capacity for and generally engage in any kind
of business with the Borrower or any Subsidiary or other Affiliate thereof as
if such Person were not the Administrative Agent hereunder and without any duty
to account therefor to the Lenders.

          9.03     Exculpatory
Provisions. The Administrative Agent shall not have
any duties or obligations except those expressly set forth herein and in the
other Loan Documents. Without limiting the generality of the foregoing, the
Administrative Agent:

	
  

 	
  

 
	
  

 	
             (a)     shall
 not be subject to any fiduciary or other implied duties, regardless of
 whether a Default has occurred and is continuing;

 
	
  

 	
  

 
	
  

 	
             (b)     shall
 not have any duty to take any discretionary action or exercise any
 discretionary powers, except discretionary rights and powers expressly
 contemplated hereby or by the other Loan Documents that the Administrative
 Agent is required to exercise as directed in writing by the Required Lenders
 (or such other number or percentage of the Lenders as shall be expressly
 provided for herein or in the other Loan Documents), provided that the
 Administrative Agent shall not be required to take any action that, in its
 opinion or the opinion of its counsel, may expose the Administrative Agent to
 liability or that is contrary to any Loan Document or applicable law; and

 
	
  

 	
  

 
	
  

 	
             (c)     shall
 not, except as expressly set forth herein and in the other Loan Documents,
 have any duty to disclose, and shall not be liable for the failure to
 disclose, any information relating to the Borrower or any of its Affiliates
 that is communicated to or obtained by the Person serving as the
 Administrative Agent or any of its Affiliates in any capacity.

 

          The
Administrative Agent shall not be liable for any action taken or not taken by
it (i) with the consent or at the request of the Required Lenders (or such
other number or percentage of the Lenders as shall be necessary, or as the
Administrative Agent shall believe in good faith 

69

shall be
necessary, under the circumstances as provided in Sections 10.01 and 8.02)
or (ii) in the absence of its own gross negligence or willful misconduct. The
Administrative Agent shall be deemed not to have knowledge of any Default unless
and until notice describing such Default is given to the Administrative Agent
by the Borrower, a Lender or the L/C Issuer.

          The
Administrative Agent shall not be responsible for or have any duty to ascertain
or inquire into (i) any statement, warranty or representation made in or in
connection with this Agreement or any other Loan Document, (ii) the contents of
any certificate, report or other document delivered hereunder or thereunder or
in connection herewith or therewith, (iii) the performance or observance of any
of the covenants, agreements or other terms or conditions set forth herein or
therein or the occurrence of any Default, (iv) the validity, enforceability,
effectiveness or genuineness of this Agreement, any other Loan Document or any
other agreement, instrument or document or (v) the satisfaction of any
condition set forth in Article IV or elsewhere herein, other than to
confirm receipt of items expressly required to be delivered to the
Administrative Agent.

          9.04     Reliance by
Administrative Agent. The Administrative Agent shall be entitled to
rely upon, and shall not incur any liability for relying upon, any notice,
request, certificate, consent, statement, instrument, document or other writing
(including any electronic message, Internet or intranet website posting or
other distribution) believed by it to be genuine and to have been signed, sent
or otherwise authenticated by the proper Person. The Administrative Agent also
may rely upon any statement made to it orally or by telephone and believed by
it to have been made by the proper Person, and shall not incur any liability
for relying thereon. In determining compliance with any condition hereunder to
the making of a Loan, or the issuance of a Letter of Credit, that by its terms
must be fulfilled to the satisfaction of a Lender or the L/C Issuer, the
Administrative Agent may presume that such condition is satisfactory to such
Lender or the L/C Issuer unless the Administrative Agent shall have received
notice to the contrary from such Lender or the L/C Issuer prior to the making
of such Loan or the issuance of such Letter of Credit. The Administrative Agent
may consult with legal counsel (who may be counsel for the Borrower),
independent accountants and other experts selected by it, and shall not be
liable for any action taken or not taken by it in accordance with the advice of
any such counsel, accountants or experts.

          9.05     Delegation
of Duties. The Administrative Agent may perform any
and all of its duties and exercise its rights and powers hereunder or under any
other Loan Document by or through any one or more sub-agents appointed by the
Administrative Agent. The Administrative Agent and any such sub-agent may
perform any and all of its duties and exercise its rights and powers by or
through their respective Related Parties. The exculpatory provisions of this
Article shall apply to any such sub-agent and to the Related Parties of the
Administrative Agent and any such sub-agent, and shall apply to their respective
activities in connection with the syndication of the credit facilities provided
for herein as well as activities as Administrative Agent.

          9.06     Resignation
of Administrative Agent. (a)The Administrative Agent may at any time
give notice of its resignation to the Lenders, the L/C Issuer and the Borrower.
Upon receipt of any such notice of resignation, the Required Lenders shall have
the right, in consultation with the Borrower, to appoint a successor, which
shall be a bank with an office in the United States, or an Affiliate of any
such bank with an office in the United States. If no such 

70

successor
shall have been so appointed by the Required Lenders and shall have accepted
such appointment within 30 days after the retiring Administrative Agent gives
notice of its resignation, then the retiring Administrative Agent may on behalf
of the Lenders and the L/C Issuer, appoint a successor Administrative Agent
meeting the qualifications set forth above; provided that if the
Administrative Agent shall notify the Borrower and the Lenders that no
qualifying Person has accepted such appointment, then such resignation shall
nonetheless become effective in accordance with such notice and (1) the
retiring Administrative Agent shall be discharged from its duties and
obligations hereunder and under the other Loan Documents and (2) all payments,
communications and determinations provided to be made by, to or through the
Administrative Agent shall instead be made by or to each Lender and the L/C
Issuer directly, until such time as the Required Lenders appoint a successor
Administrative Agent as provided for above in this Section. Upon the acceptance
of a successor’s appointment as Administrative Agent hereunder, such successor
shall succeed to and become vested with all of the rights, powers, privileges
and duties of the retiring (or retired) Administrative Agent, and the retiring
Administrative Agent shall be discharged from all of its duties and obligations
hereunder or under the other Loan Documents (if not already discharged
therefrom as provided above in this Section). The fees payable by the Borrower
to a successor Administrative Agent shall be the same as those payable to its
predecessor unless otherwise agreed between the Borrower and such successor. After
the retiring Administrative Agent’s resignation hereunder and under the other
Loan Documents, the provisions of this Article and Section 10.04 shall
continue in effect for the benefit of such retiring Administrative Agent, its
sub-agents and their respective Related Parties in respect of any actions taken
or omitted to be taken by any of them while the retiring Administrative Agent
was acting as Administrative Agent.

          (b)     Any resignation by Bank of America as
Administrative Agent pursuant to this Section shall also constitute its
resignation as L/C Issuer. Upon the acceptance of a successor’s appointment as
Administrative Agent hereunder, (a) such successor shall succeed to and become
vested with all of the rights, powers, privileges and duties of the retiring
L/C Issuer, (b) the retiring L/C Issuer shall be discharged from all of its
duties and obligations hereunder or under the other Loan Documents, and (c) the
successor L/C Issuer shall issue letters of credit in substitution for the
Letters of Credit, if any, outstanding at the time of such succession or make
other arrangements satisfactory to the retiring L/C Issuer to effectively
assume the obligations of the retiring L/C Issuer with respect to such Letters
of Credit.

          9.07   Non-Reliance
on Administrative Agent and Other Lenders. Each Lender and the L/C
Issuer acknowledges that it has, independently and without reliance upon the
Administrative Agent or any other Lender or any of their Related Parties and
based on such documents and information as it has deemed appropriate, made its
own credit analysis and decision to enter into this Agreement. Each Lender and
the L/C Issuer also acknowledges that it will, independently and without
reliance upon the Administrative Agent or any other Lender or any of their
Related Parties and based on such documents and information as it shall from
time to time deem appropriate, continue to make its own decisions in taking or
not taking action under or based upon this Agreement, any other Loan Document
or any related agreement or any document furnished hereunder or thereunder.

          9.08   No Other
Duties, Etc. Anything herein to the contrary
notwithstanding, none of the Bookrunners, Arrangers, Syndication Agent or
Co-Documentation Agents listed on the cover 

71

page hereof
shall have any powers, duties or responsibilities under this Agreement or any
of the other Loan Documents, except in its capacity, as applicable, as the
Administrative Agent, a Lender or the L/C Issuer hereunder.

          9.09     Administrative Agent May File Proofs of Claim.
In case of the pendency of any proceeding under any Debtor Relief Law or any
other judicial proceeding relative to the Administrative Agent (irrespective of
whether the principal of any Loan or L/C Obligation shall then be due and
payable as herein expressed or by declaration or otherwise and irrespective of
whether the Administrative Agent shall have made any demand on the Borrower)
shall be entitled and empowered, by intervention in such proceeding or
otherwise:

	
  

 	
  

 
	
  

 	
             (a)     to
 file and prove a claim for the whole amount of the principal and interest
 owing and unpaid in respect of the Loans, L/C Obligations and all other
 Obligations that are owing and unpaid and to file such other documents as may
 be necessary or advisable in order to have the claims of the Lenders, the L/C
 Issuer and the Administrative Agent (including any claim for the reasonable
 compensation, expenses, disbursements and advances of the Lenders, the L/C
 Issuer and the Administrative Agent and their respective agents and counsel
 and all other amounts due the Lenders, the L/C Issuer and the Administrative
 Agent under Sections 2.03(h) and (i), 2.08 and 10.04)
 allowed in such judicial proceeding; and

 
	
  

 	
  

 
	
  

 	
             (b)     to
 collect and receive any monies or other property payable or deliverable on
 any such claims and to distribute the same; 

 

and any custodian, receiver, assignee, trustee, liquidator,
sequestrator or other similar official in any such judicial proceeding is hereby
authorized by each Lender and the L/C Issuer to make such payments to the
Administrative Agent and, in the event that the Administrative Agent shall
consent to the making of such payments directly to the Lenders and the L/C
Issuer, to pay to the Administrative Agent any amount due for the reasonable
compensation, expenses, disbursements and advances of the Administrative Agent
and its agents and counsel, and any other amounts due the Administrative Agent
under Sections 2.08 and 10.04.

          Nothing contained
herein shall be deemed to authorize the Administrative Agent to authorize or
consent to or accept or adopt on behalf of any Lender or the L/C Issuer any
plan of reorganization, arrangement, adjustment or composition affecting the
Obligations or the rights of any Lender or the L/C Issuer to authorize the
Administrative Agent to vote in respect of the claim of any Lender or the L/C
Issuer in any such proceeding.

ARTICLE X.

MISCELLANEOUS

          10.01   Amendments,
Etc. No amendment or waiver of any provision of this Agreement or
any other Loan Document, and no consent to any departure by the Borrower
therefrom, shall be effective unless in writing signed by the Required Lenders
and the Borrower, and acknowledged by the Administrative Agent, and each such
waiver or consent shall be effective only in the specific instance and for the
specific purpose for which given; provided, however, that no such
amendment, waiver or consent shall: 

72

          (a)     waive
any condition set forth in Section 4.01(a) without the written consent
of each Lender;

          (b)     extend
or increase the Commitment of any Lender (or reinstate any Commitment
terminated pursuant to Section 8.02) without the written consent of such
Lender;

          (c)     postpone
any date fixed by this Agreement or any other Loan Document for any payment of
principal, interest, fees or other amounts due to the Lenders (or any of them)
hereunder or under any other Loan Document without the written consent of each
Lender directly affected thereby;

          (d)     reduce
the principal of, or the rate of interest specified herein on, any Loan or L/C
Borrowing, or (subject to clause (iv) of the second proviso to this Section
10.01) any fees or other amounts payable hereunder or under any other Loan
Document, without the written consent of each Lender directly affected thereby;
provided, however, that only the consent of the Required Lenders
shall be necessary to amend the definition of “Default Rate” or to waive any
obligation of the Borrower to pay interest or Letter of Credit Fees at the
Default Rate;

          (e)     change
Section 8.03 in a manner that would alter the pro rata sharing of
payments required thereby without the written consent of each Lender;

          (f)     change
any provision of this Section or the definition of “Required Lenders” or any
other provision hereof specifying the number or percentage of Lenders required
to amend, waive or otherwise modify any rights hereunder or make any
determination or grant any consent hereunder, without the written consent of
each Lender; 

and, provided
further, that (i) no amendment, waiver or consent shall, unless in
writing and signed by the L/C Issuer in addition to the Lenders required above,
affect the rights or duties of the L/C Issuer under this Agreement or any
Issuer Document relating to any Letter of Credit issued or to be issued by it;
(ii) no amendment, waiver or consent shall, unless in writing and signed by the
Administrative Agent in addition to the Lenders required above, affect the
rights or duties of the Administrative Agent under this Agreement or any other
Loan Document; and (iii) Section 10.06(h) may not be amended, waived or otherwise
modified without the consent of each Granting Lender all or any part of whose
Loans are being funded by an SPC at the time of such amendment, waiver or other
modification; and (iv) the Fee Letter may be amended, or rights or
privileges thereunder waived, in a writing executed only by the parties
thereto. Notwithstanding anything to the contrary herein, no Defaulting Lender
shall have any right to approve or disapprove any amendment, waiver or consent
hereunder (and any amendment, waiver or consent which by its terms requires the
consent of all Lenders or each affected Lender may be effected with the consent
of the applicable Lenders other than Defaulting Lenders), except that (x) the
Commitment of any Defaulting Lender may not be increased or extended without
the consent of such Lender and (y) any waiver, amendment or modification requiring
the consent of all Lenders or each affected Lender that by its terms affects
any Defaulting Lender more adversely than other affected Lenders shall require
the consent of such Defaulting Lender.

73

          10.02     Notices;
Effectiveness; Electronic Communication.

          (a)          Notices
Generally. Except in the case of notices and other communications expressly
permitted to be given by telephone (and except as provided in subsection (b)
below), all notices and other communications provided for herein shall be in
writing and shall be delivered by hand or overnight courier service, mailed by
certified or registered mail or sent by telecopier as follows, and all notices
and other communications expressly permitted hereunder to be given by telephone
shall be made to the applicable telephone number, as follows:

	
  

 	
  

 
	
  

 	
               (i)     if
 to the Borrower, the Administrative Agent or the L/C Issuer, to the address,
 telecopier number, electronic mail address or telephone number specified for
 such Person on Schedule 10.02; and 

 
	
  

 	
  

 
	
  

 	
               (ii)     if
 to any other Lender, to the address, telecopier number, electronic mail
 address or telephone number specified in its Administrative Questionnaire
 (including, as appropriate, notices delivered solely to the Person designated
 by a Lender on its Administrative Questionnaire then in effect for the
 delivery of notices that may contain material non-public information relating
 to the Borrower).

 

          Notices
sent by hand or overnight courier service, or mailed by certified or registered
mail, shall be deemed to have been given when received; notices sent by
telecopier shall be deemed to have been given when sent (except that, if not
given during normal business hours for the recipient, shall be deemed to have
been given at the opening of business on the next business day for the
recipient). Notices delivered through electronic communications to the extent
provided in subsection (b) below, shall be effective as provided in such
subsection (b).

          (b)     Electronic
Communications. Notices and other communications to the Lenders and the L/C
Issuer hereunder may be delivered or furnished by electronic communication
(including e-mail and Internet or intranet websites) pursuant to procedures
approved by the Administrative Agent, provided that the foregoing shall
not apply to notices to any Lender or the L/C Issuer pursuant to Article II
if such Lender or the L/C Issuer, as applicable, has notified the
Administrative Agent that it is incapable of receiving notices under such
Article by electronic communication. The Administrative Agent or the Borrower
may, in its discretion, agree to accept notices and other communications to it
hereunder by electronic communications pursuant to procedures approved by it, provided
that approval of such procedures may be limited to particular notices or
communications.

          Unless
the Administrative Agent otherwise prescribes, (i) notices and other
communications sent to an e-mail address shall be deemed received upon the
sender’s receipt of an acknowledgement from the intended recipient (such as by
the “return receipt requested” function, as available, return e-mail or other
written acknowledgement), provided that if such notice or other
communication is not sent during the normal business hours of the recipient,
such notice or communication shall be deemed to have been sent at the opening
of business on the next business day for the recipient, and (ii) notices or
communications posted to an Internet or intranet website shall be deemed
received upon the deemed receipt by the intended recipient at its e-mail
address as described in the foregoing clause (i) of notification that
such notice or communication is available and identifying the website address
therefor.

74

          (c)         The
Platform. THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE.” THE AGENT
PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE
BORROWER MATERIALS OR THE ADEQUACY OF THE PLATFORM, AND EXPRESSLY DISCLAIM
LIABILITY FOR ERRORS IN OR OMISSIONS FROM THE BORROWER MATERIALS. NO WARRANTY
OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY OF
MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD
PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY ANY
AGENT PARTY IN CONNECTION WITH THE BORROWER MATERIALS OR THE PLATFORM. In no
event shall the Administrative Agent or any of its Related Parties
(collectively, the “Agent Parties”) have any liability to the Borrower,
any Lender, the L/C Issuer or any other Person for losses, claims, damages,
liabilities or expenses of any kind (whether in tort, contract or otherwise)
arising out of the Borrower’s or the Administrative Agent’s transmission of
Borrower Materials through the Internet, except to the extent that such losses,
claims, damages, liabilities or expenses are determined by a court of competent
jurisdiction by a final and nonappealable judgment to have resulted from the
gross negligence or willful misconduct of such Agent Party; provided, however,
that in no event shall any Agent Party have any liability to the Borrower, any
Lender, the L/C Issuer or any other Person for indirect, special, incidental,
consequential or punitive damages (as opposed to direct or actual damages).

          (d)         Change
of Address, Etc. Each of the Borrower, the Administrative Agent and the L/C
Issuer may change its address, telecopier or telephone number for notices and
other communications hereunder by notice to the other parties hereto. Each
other Lender may change its address, telecopier or telephone number for notices
and other communications hereunder by notice to the Borrower, the
Administrative Agent and the L/C Issuer. In addition, each Lender agrees to
notify the Administrative Agent from time to time to ensure that the
Administrative Agent has on record (i) an effective address, contact name,
telephone number, telecopier number and electronic mail address to which
notices and other communications may be sent and (ii) accurate wire
instructions for such Lender.

          (e)         Reliance
by Administrative Agent, L/C Issuer and Lenders. The Administrative Agent,
the L/C Issuer and the Lenders shall be entitled to rely and act upon any
notices (including telephonic Loan Notices) purportedly given by or on behalf
of the Borrower even if (i) such notices were not made in a manner specified
herein, were incomplete or were not preceded or followed by any other form of
notice specified herein, or (ii) the terms thereof, as understood by the
recipient, varied from any confirmation thereof. The Borrower shall indemnify
the Administrative Agent, the L/C Issuer, each Lender and the Related Parties
of each of them from all losses, costs, expenses and liabilities resulting from
the reliance by such Person on each notice purportedly given by or on behalf of
the Borrower. All telephonic notices to and other telephonic communications
with the Administrative Agent may be recorded by the Administrative Agent, and
each of the parties hereto hereby consents to such recording.

          10.03     No Waiver;
Cumulative Remedies. No failure by any Lender, the L/C Issuer or the
Administrative Agent to exercise, and no delay by any such Person in
exercising, any right, remedy, power or privilege hereunder shall operate as a
waiver thereof; nor shall any single or partial exercise of any right, remedy,
power or privilege hereunder preclude any other or further 

75

exercise
thereof or the exercise of any other right, remedy, power or privilege. The
rights, remedies, powers and privileges herein provided are cumulative and not
exclusive of any rights, remedies, powers and privileges provided by law.

          Notwithstanding
anything to the contrary contained herein or in any other Loan Document, the
authority to enforce rights and remedies hereunder and under the other Loan
Documents against the Loan Parties or any of them shall be vested exclusively
in, and all actions and proceedings at law in connection with such enforcement
shall be instituted and maintained exclusively by, the Administrative Agent in
accordance with Section 8.02 for the benefit of all the Lenders and the
L/C Issuer; provided, however, that the foregoing shall not
prohibit (a) the Administrative Agent from exercising on its own behalf the rights
and remedies that inure to its benefit (solely in its capacity as
Administrative Agent) hereunder and under the other Loan Documents, (b) the L/C
Issuer from exercising the rights and remedies that inure to its benefit
(solely in its capacity as L/C Issuer) hereunder and under the other Loan
Documents, (c) any Lender from exercising setoff rights in accordance with Section
10.08 (subject to the terms of Section 2.12), or (d) any Lender from
filing proofs of claim or appearing and filing pleadings on its own behalf
during the pendency of a proceeding relative to any Loan Party under any Debtor
Relief Law; and provided, further, that if at any time there is
no Person acting as Administrative Agent hereunder and under the other Loan
Documents, then (i) the Required Lenders shall have the rights otherwise
ascribed to the Administrative Agent pursuant to Section 8.02 and (ii)
in addition to the matters set forth in clauses (b), (c) and (d)
of the preceding proviso and subject to Section 2.12, any Lender may,
with the consent of the Required Lenders, enforce any rights and remedies
available to it and as authorized by the Required Lenders.

          10.04     Expenses;
Indemnity; Damage Waiver. 

          (a)          Costs
and Expenses. The Borrower shall pay (i) all reasonable out of pocket
expenses incurred by the Administrative Agent and its respective Affiliates
(including the reasonable fees, charges and disbursements of counsel for the
Administrative Agent), in connection with the syndication of the credit
facilities provided for herein, the preparation, negotiation, execution,
delivery and administration of this Agreement and the other Loan Documents or
any amendments, modifications or waivers of the provisions hereof or thereof
(whether or not the transactions contemplated hereby or thereby shall be
consummated), (ii) all reasonable out of pocket expenses incurred by the L/C
Issuer in connection with the issuance, amendment, renewal or extension of any
Letter of Credit or any demand for payment thereunder and (iii) all out of
pocket expenses incurred by the Administrative Agent, any Lender or the L/C
Issuer (including the fees, charges and disbursements of any counsel for the
Administrative Agent, any Lender or the L/C Issuer), in connection with the enforcement
or protection of its rights (A) in connection with this Agreement and the other
Loan Documents, including its rights under this Section, or (B) in connection
with the Loans made or Letters of Credit issued hereunder, including all such
out of pocket expenses incurred during any workout, restructuring or
negotiations in respect of such Loans or Letters of Credit.

          (b)          Indemnification
by the Borrower. The Borrower shall indemnify the Administrative Agent (and
any sub-agent thereof), each Lender and the L/C Issuer, and each Related Party
of any of the foregoing Persons (each such Person being called an “Indemnitee”)
against, and hold each Indemnitee harmless from, any and all losses, penalties,
claims, damages, 

76

liabilities
and related expenses (including the fees, charges and disbursements of any
counsel for any Indemnitee), incurred by any Indemnitee or asserted against any
Indemnitee by any third party or by the Borrower arising out of, in connection
with, or as a result of (i) the execution or delivery of this Agreement, any
other Loan Document or any agreement or instrument contemplated hereby or
thereby, the performance by the parties hereto of their respective obligations
hereunder or thereunder, the consummation of the transactions contemplated
hereby or thereby or, in the case of the Administrative Agent (and any
sub-agent thereof) and its Related Parties only, the administration of this
Agreement and the other Loan Documents (including in respect of any matters
addressed in Section 3.01), (ii) any Loan or Letter of Credit or the use
or proposed use of the proceeds therefrom (including any refusal by the L/C
Issuer to honor a demand for payment under a Letter of Credit if the documents
presented in connection with such demand do not strictly comply with the terms
of such Letter of Credit), (iii) any actual or alleged presence or release of
Hazardous Materials on or from any property owned or operated by the Borrower
or any of its Subsidiaries, or any Environmental Liability related in any way
to the Borrower or any of its Subsidiaries, or (iv) any actual or prospective
claim, penalty, litigation, investigation or proceeding relating to any of the
foregoing, whether based on contract, tort or any other theory, whether brought
by a third party or by the Borrower, and regardless of whether any Indemnitee
is a party thereto; provided that such indemnity shall not, as to any
Indemnitee, be available to the extent that such losses, claims, penalties,
damages, liabilities or related expenses (x) are determined by a court of
competent jurisdiction by final and nonappealable judgment to have resulted
from the gross negligence or willful misconduct of such Indemnitee or (y)
result from a claim brought by the Borrower against an Indemnitee for breach in
bad faith of such Indemnitee’s obligations hereunder or under any other Loan
Document, if the Borrower has obtained a final and nonappealable judgment in
its favor on such claim as determined by a court of competent jurisdiction.

          (c)     Reimbursement
by Lenders. To the extent that the Borrower for any reason fails to
indefeasibly pay any amount required under subsection (a) or (b)
of this Section to be paid by it to the Administrative Agent (or any sub-agent
thereof), the L/C Issuer or any Related Party of any of the foregoing, but
without affecting the obligations of the Borrower thereunder, each Lender
severally agrees to pay to the Administrative Agent (or any such sub-agent),
the L/C Issuer or such Related Party, as the case may be, such Lender’s Pro
Rata Share (determined as of the time that the applicable unreimbursed expense
or indemnity payment is sought) of such unpaid amount, provided that the
unreimbursed expense or indemnified loss, claim, damage, liability or related
expense, as the case may be, was incurred by or asserted against the
Administrative Agent (or any such sub-agent) or the L/C Issuer in its capacity
as such, or against any Related Party of any of the foregoing acting for the
Administrative Agent (or any such sub-agent) or L/C Issuer in connection with
such capacity. The obligations of the Lenders under this subsection (c)
are subject to the provisions of Section 2.11(d).

          (d)     Waiver
of Consequential Damages, Etc. To the fullest extent permitted by applicable
law, the Borrower shall not assert, and hereby waives, any claim against any
Indemnitee, on any theory of liability, for special, indirect, consequential or
punitive damages (as opposed to direct or actual damages) arising out of, in
connection with, or as a result of, this Agreement, any other Loan Document or
any agreement or instrument contemplated hereby, the transactions contemplated
hereby or thereby, any Loan or Letter of Credit or the use of the proceeds
thereof. No Indemnitee referred to in subsection (b) above shall be
liable for any 

77

damages
arising from the use by unintended recipients of any information or other
materials distributed to such unintended recipients by such Indemnitee through
telecommunications, electronic or other information transmission systems in
connection with this Agreement or the other Loan Documents or the transactions
contemplated hereby or thereby other than for direct or actual damages
resulting from the gross negligence or willful misconduct of such Indemnitee as
determined by a final and nonappealable judgment of a court of competent
jurisdiction.

          (e)          Payments.
All amounts due under this Section shall be payable not later than ten Business
Days after demand therefor.

          (f)          Survival.
The agreements in this Section shall survive the resignation of the
Administrative Agent and the L/C Issuer,
the replacement of any Lender, the termination of the Aggregate Commitments and
the repayment, satisfaction or discharge of all the other Obligations.

          10.05     Payments Set
Aside. To the extent that any payment by or on behalf of the
Borrower is made to the Administrative Agent, the L/C Issuer or any Lender, or
the Administrative Agent, the L/C Issuer or any Lender exercises its right of
set-off, and such payment or the proceeds of such set-off or any part thereof
is subsequently invalidated, declared to be fraudulent or preferential, set
aside or required (including pursuant to any settlement entered into by the
Administrative Agent, the L/C Issuer or such Lender in its discretion) to be
repaid to a trustee, receiver or any other party, in connection with any
proceeding under any Debtor Relief Law or otherwise, then (a) to the extent of
such recovery, the obligation or part thereof originally intended to be
satisfied shall be revived and continued in full force and effect as if such
payment had not been made or such set-off had not occurred, and (b) each Lender
and the L/C Issuer severally agrees to pay to the Administrative Agent upon
demand its applicable share (without duplication) of any amount so recovered
from or repaid by the Administrative Agent, plus interest thereon from the date
of such demand to the date such payment is made at a rate per annum equal to
the Federal Funds Rate from time to time in effect. The obligations of the
Lenders and the L/C Issuer under clause (b) of the preceding sentence
shall survive the payment in full of the Obligations and the termination of
this Agreement.

          10.06     Successors
and Assigns. 

          (a)          Successors
and Assigns Generally. The provisions of this Agreement shall be binding
upon and inure to the benefit of the parties hereto and their respective
successors and assigns permitted hereby, except that the Borrower may not
assign or otherwise transfer any of its rights or obligations hereunder without
the prior written consent of the Administrative Agent and each Lender and no
Lender may assign or otherwise transfer any of its rights or obligations
hereunder except (i) to an assignee in accordance with the provisions of subsection
(b) of this Section, (ii) by way of participation in accordance with the
provisions of subsection (d) of this Section, (iii) by way of pledge or
assignment of a security interest subject to the restrictions of subsection
(f) of this Section, or (iv) to an SPC in accordance with the provisions of
subsection (h) of this Section (and any other attempted assignment or
transfer by any party hereto shall be null and void). Nothing in this Agreement,
expressed or implied, shall be construed to confer upon any Person (other than
the parties hereto, their respective successors and assigns permitted hereby,
Participants to the extent provided in subsection (d) of this Section
and, to the extent 

78

expressly
contemplated hereby, the Related Parties of each of the Administrative Agent,
the L/C Issuer and the Lenders) any legal or equitable right, remedy or claim
under or by reason of this Agreement.

          (b)     Assignments
by Lenders. Any Lender may at any time assign to one or more assignees all
or a portion of its rights and obligations under this Agreement (including all
or a portion of its Commitment and the Loans (including for purposes of this subsection
(b), participations in L/C Obligations) at the time owing to it); provided
that any such assignment shall be subject to the following conditions: 

	
  

 	
  

 	
  

 
	
  

 	
 (i)      Minimum
 Amounts.

 
	
  

 	
  

 
	
  

 	
           (A)     in
 the case of an assignment of the entire remaining amount of the assigning
 Lender’s Commitment and the Loans at the time owing to it or in the case of
 an assignment to a Lender, an Affiliate of a Lender or an Approved Fund, no
 minimum amount need be assigned; and

 
	
  

 	
  

 
	
  

 	
           (B)     in
 any case not described in subsection (b)(i)(A) of this Section, the
 aggregate amount of the Commitment (which for this purpose includes Loans
 outstanding thereunder) or, if the Commitment is not then in effect, the
 principal outstanding balance of the Loans of the assigning Lender subject to
 each such assignment, determined as of the date the Assignment and Assumption
 with respect to such assignment is delivered to the Administrative Agent or,
 if “Trade Date” is specified in the Assignment and Assumption, as of the
 Trade Date, shall not be less than $10,000,000 unless each of the
 Administrative Agent and, so long as no Event of Default has occurred and is
 continuing, the Borrower otherwise consents (each such consent not to be
 unreasonably withheld or delayed); provided, however, that
 concurrent assignments to members of an Assignee Group and concurrent
 assignments from members of an Assignee Group to a single Eligible Assignee
 (or to an Eligible Assignee and members of its Assignee Group) will be
 treated as a single assignment for purposes of determining whether such
 minimum amount has been met. 

 
	
  

 	
  

 	
  

 
	
  

 	
           (ii)     Proportionate
 Amounts. Each partial assignment shall be made as an assignment of a
 proportionate part of all the assigning Lender’s rights and obligations under
 this Agreement with respect to the Loans or the Commitment assigned. 

 
	
  

 	
  

 
	
  

 	
           (iii)    Required
 Consents. No consent shall be required for any assignment except to the
 extent required by subsection (b)(i)(B) of this Section and, in
 addition: 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (A)     the
 consent of the Borrower (such consent not to be unreasonably withheld or
 delayed) shall be required unless (1) an Event of Default has occurred and is
 continuing at the time of such assignment or (2) such assignment is to a
 Lender, an Affiliate of a Lender or an Approved Fund;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (B)     the
 consent of the Administrative Agent (such consent not to be unreasonably
 withheld or delayed) shall be required if such assignment is to a

 

79

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Person that
 is not a Lender, an Affiliate of such Lender or an Approved Fund with respect
 to such Lender; and

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (C)     the
 consent of the L/C Issuer (such consent not to be unreasonably withheld or
 delayed) shall be required for any assignment that increases the obligation
 of the assignee to participate in exposure under one or more Letters of
 Credit (whether or not then outstanding).

 
	
  

 	
  

 	
  

 
	
  

 	
           (iv)     Assignment
 and Assumption. The parties to each assignment shall execute and deliver
 to the Administrative Agent an Assignment and Assumption, together with a
 processing and recordation fee in the amount of $3,500; provided, however,
 that the Administrative Agent may, in its sole discretion, elect to waive
 such processing and recordation fee in the case of any assignment. The
 assignee, if it is not a Lender, shall deliver to the Administrative Agent an
 Administrative Questionnaire.

 
	
  

 	
  

 
	
  

 	
           (v)     No
 Assignment to Certain Persons. No such assignment shall be made (A) to
 the Borrower or any of the Borrower’s Affiliates or Subsidiaries, or (B) to
 any Defaulting Lender or any of its Subsidiaries, or any Person who, upon
 becoming a Lender hereunder, would constitute any of the foregoing Persons
 described in this clause (B), or (C) to a natural person.

 
	
  

 	
  

 
	
  

 	
           (vi)     Certain
 Additional Payments. In connection with any assignment of rights and
 obligations of any Defaulting Lender hereunder, no such assignment shall be
 effective unless and until, in addition to the other conditions thereto set
 forth herein, the parties to the assignment shall make such additional
 payments to the Administrative Agent in an aggregate amount sufficient, upon
 distribution thereof as appropriate (which may be outright payment, purchases
 by the assignee of participations or subparticipations, or other compensating
 actions, including funding, with the consent of the Borrower and the
 Administrative Agent, the applicable pro rata share of Loans previously
 requested but not funded by the Defaulting Lender, to each of which the
 applicable assignee and assignor hereby irrevocably consent), to (x) pay and
 satisfy in full all payment liabilities then owed by such Defaulting Lender
 to the Administrative Agent or any Lender hereunder (and interest accrued
 thereon) and (y) acquire (and fund as appropriate) its full pro rata share of
 all Loans and participations in Letters of Credit in accordance with its Pro
 Rata Share. Notwithstanding the foregoing, in the event that any assignment
 of rights and obligations of any Defaulting Lender hereunder shall become
 effective under applicable Law without compliance with the provisions of this
 paragraph, then the assignee of such interest shall be deemed to be a
 Defaulting Lender for all purposes of this Agreement until such compliance
 occurs.

 

Subject to
acceptance and recording thereof by the Administrative Agent pursuant to subsection
(c) of this Section, from and after the effective date specified in each
Assignment and Assumption, the assignee thereunder shall be a party to this
Agreement and, to the extent of the interest assigned by such Assignment and
Assumption, have the rights and obligations of a Lender under this Agreement,
and the assigning 

80

Lender
thereunder shall, to the extent of the interest assigned by such Assignment and
Assumption, be released from its obligations under this Agreement (and, in the
case of an Assignment and Assumption covering all of the assigning Lender’s
rights and obligations under this Agreement, such Lender shall cease to be a
party hereto) but shall continue to be entitled to the benefits of Sections
3.01, 3.04, 3.05, and 10.04 with respect to facts and
circumstances occurring prior to the effective date of such assignment. Upon
request, the Borrower (at its expense) shall execute and deliver a Note to the
assignee Lender, at which time any existing Note assigned to such Lender shall
be redelivered to the Borrower. Any assignment or transfer by a Lender of
rights or obligations under this Agreement that does not comply with this
subsection shall be treated for purposes of this Agreement as a sale by such Lender
of a participation in such rights and obligations in accordance with subsection
(d) of this Section.

          (c)     Register.
The Administrative Agent, acting solely for this purpose as an agent of the
Borrower (and such agency being solely for tax purposes), shall maintain at the
Administrative Agent’s Office a copy of each Assignment and Assumption
delivered to it and a register for the recordation of the names and addresses
of the Lenders, and the Commitments of, and principal amounts of the Loans and
L/C Obligations owing to, each Lender pursuant to the terms hereof from time to
time (the “Register”). The entries in the Register shall be conclusive,
and the Borrower, the Administrative Agent and the Lenders may treat each
Person whose name is recorded in the Register pursuant to the terms hereof as a
Lender hereunder for all purposes of this Agreement, notwithstanding notice to
the contrary. In addition, the Administrative Agent shall maintain on the
Register information regarding the designation, and revocation of designation,
of any Lender as a Defaulting Lender. The Register shall be available for
inspection by the Borrower and any Lender, at any reasonable time and from time
to time upon reasonable prior notice.

          (d)     Participations.
Any Lender may at any time, without the consent of, or notice to, the Borrower
or the Administrative Agent, sell participations to any Person (other than a
natural person, a Defaulting Lender or the Borrower or any of the Borrower’s
Affiliates or Subsidiaries) (each, a “Participant”) in all or a portion
of such Lender’s rights and/or obligations under this Agreement (including all
or a portion of its Commitment and/or the Loans (including such Lender’s
participations in L/C Obligations) owing to it); provided that (i) such
Lender’s obligations under this Agreement shall remain unchanged, (ii) such
Lender shall remain solely responsible to the other parties hereto for the
performance of such obligations and (iii) the Borrower, the Administrative
Agent, the Lenders and the L/C Issuer shall continue to deal solely and
directly with such Lender in connection with such Lender’s rights and
obligations under this Agreement. 

          Any
agreement or instrument pursuant to which a Lender sells such a participation
shall provide that such Lender shall retain the sole right to enforce this
Agreement and to approve any amendment, modification or waiver of any provision
of this Agreement; provided that such agreement or instrument may
provide that such Lender will not, without the consent of the Participant,
agree to any amendment, waiver or other modification described in the first
proviso to Section 10.01 that directly affects such Participant. Subject
to subsection (e) of this Section, the Borrower agrees that each Participant
shall be entitled to the benefits of Sections 3.01, 3.04 and 3.05
to the same extent as if it were a Lender and had acquired its interest by
assignment pursuant to subsection (b) of this Section. To the extent
permitted by law, each Participant also shall be entitled to the benefits of Section
10.08 as though it were a Lender, provided such Participant agrees
to be subject to Section 2.12 as though it were a Lender.

81

          (e)     Limitations
upon Participant Rights. A Participant shall not be entitled to receive any
greater payment under Section 3.01 or 3.04 than the applicable
Lender would have been entitled to receive with respect to the participation
sold to such Participant, unless the sale of the participation to such
Participant is made with the Borrower’s prior written consent. A Participant
that would be a Foreign Lender if it were a Lender shall not be entitled to the
benefits of Section 3.01 unless the Borrower is notified of the
participation sold to such Participant and such Participant agrees, for the
benefit of the Borrower, to comply with Section 3.01(e) as though it
were a Lender.

          (f)     Certain
Pledges. Any Lender may at any time pledge or assign a security interest in
all or any portion of its rights under this Agreement (including under its
Note, if any) to secure obligations of such Lender, including any pledge or
assignment to secure obligations to a Federal Reserve Bank; provided
that no such pledge or assignment shall release such Lender from any of its obligations
hereunder or substitute any such pledgee or assignee for such Lender as a party
hereto.

          (g)     Electronic
Execution of Assignments. The words “execution”, “signed”, “signature”, and
words of like import in any Assignment and Assumption shall be deemed to
include electronic signatures or the keeping of records in electronic form,
each of which shall be of the same legal effect, validity or enforceability as
a manually executed signature or the use of a paper-based recordkeeping system,
as the case may be, to the extent and as provided for in any applicable law,
including the Federal Electronic Signatures in Global and National Commerce
Act, the New York State Electronic Signatures and Records Act, or any other
similar state laws based on the Uniform Electronic Transactions Act.

          (h)     Special
Purpose Funding Vehicles. Notwithstanding anything to the contrary
contained herein, any Lender (a “Granting Lender”) may grant to a
special purpose funding vehicle identified as such in writing from time to time
by the Granting Lender to the Administrative Agent and the Borrower (an “SPC”)
the option to provide all or any part of any Loan that such Granting Lender
would otherwise be obligated to make pursuant to this Agreement; provided
that (i) nothing herein shall constitute a commitment by any SPC to fund any
Loan, and (ii) if an SPC elects not to exercise such option or otherwise fails
to make all or any part of such Loan, the Granting Lender shall be obligated to
make such Loan pursuant to the terms hereof or, if it fails to do so, to make
such payment to the Administrative Agent as is required under Section
2.11(b). Each party hereto hereby agrees that (i) neither the grant to any
SPC nor the exercise by any SPC of such option shall increase the costs or
expenses or otherwise increase or change the obligations of the Borrower under
this Agreement (including its obligations under Section 3.04), (ii) no
SPC shall be liable for any indemnity or similar payment obligation under this
Agreement for which a Lender would be liable, and (iii) the Granting Lender
shall for all purposes, including the approval of any amendment, waiver or
other modification of any provision of any Loan Document, remain the lender of
record hereunder. The making of a Loan by an SPC hereunder shall utilize the
Commitment of the Granting Lender to the same extent, and as if, such Loan were
made by such Granting Lender. In furtherance of the foregoing, each party
hereto hereby agrees (which agreement shall survive the termination of this
Agreement) that, prior to the date that is one year and one day after the
payment in full of all outstanding commercial paper or other senior debt of any
SPC, it will not institute against, or join any other Person in instituting
against, such SPC any bankruptcy, reorganization, 

82

arrangement,
insolvency, or liquidation proceeding under the laws of the United States or
any State thereof. Notwithstanding anything to the contrary contained herein,
any SPC may (i) with notice to, but without prior consent of the Borrower and
the Administrative Agent and with the payment of a processing fee in the amount
of $3,500 (which processing fee may be waived by the Administrative Agent in
its sole discretion), assign all or any portion of its right to receive payment
with respect to any Loan to the Granting Lender and (ii) disclose on a
confidential basis any non-public information relating to its funding of Loans
to any rating agency, commercial paper dealer or provider of any surety or
Guarantee or credit or liquidity enhancement to such SPC.

          (i)          Resignation
as L/C Issuer after Assignment. Notwithstanding anything to the contrary
contained herein, if at any time Bank of America assigns all of its Commitment
and Loans pursuant to subsection (b) above, Bank of America may, upon 30 days’ notice to the Borrower and
the Lenders, resign as L/C Issuer. In the event of any such resignation as L/C
Issuer, the Borrower shall be entitled to appoint from among the Lenders a
successor L/C Issuer hereunder; provided, however, that no
failure by the Borrower to appoint any such successor shall affect the
resignation of Bank of America as L/C Issuer. If Bank of America resigns as L/C
Issuer, it shall retain all the rights, powers, privileges and duties of the
L/C Issuer hereunder with respect to all Letters of Credit outstanding as of
the effective date of its resignation as L/C Issuer and all L/C Obligations
with respect thereto (including the right to require the Lenders to make Base
Rate Loans or fund risk participations in Unreimbursed Amounts pursuant to Section
2.03(c)). Upon the acceptance of a successor’s appointment as L/C Issuer
hereunder, (a) such successor shall succeed to and become vested with all of
the rights, powers, privileges and duties of the retiring L/C Issuer, (b) the
retiring L/C Issuer shall be discharged from all of its respective duties and
obligations hereunder or under the other Loan Documents, and (c) the successor
L/C Issuer shall issue letters of credit in substitution for the Letters of
Credit, if any, outstanding at the time of such succession or make other
arrangements satisfactory to Bank of America to effectively assume the
obligations of Bank of America with respect to such Letters of Credit.

          10.07     Treatment of
Certain Information; Confidentiality. Each of the Administrative
Agent, the Lenders and the L/C Issuer agrees to maintain the confidentiality of
the Information (as defined below), except that Information may be disclosed
(a) to its Affiliates and to its and its Affiliates’ respective partners,
directors, officers, employees, agents, trustees, advisors and representatives
(it being understood that the Persons to whom such disclosure is made will be
informed of the confidential nature of such Information and instructed to keep
such Information confidential), (b) to the extent requested by any regulatory
authority purporting to have jurisdiction over it (including any
self-regulatory authority, such as the National Association of Insurance
Commissioners), (c) to the extent required by applicable laws or regulations or
by any subpoena or similar legal process, (d) to any other party hereto, (e) in
connection with the exercise of any remedies hereunder or under any other Loan
Document or any action or proceeding relating to this Agreement or any other
Loan Document or the enforcement of rights hereunder or thereunder, (f) subject
to an agreement containing provisions substantially the same as those of this
Section, to (i) any assignee of or Participant in, or any prospective assignee
of or Participant in, any of its rights or obligations under this Agreement or
(ii) any actual or prospective counterparty (or its advisors) to any swap or
derivative transaction relating to the Borrower and its obligations, (g) with
the consent of the Borrower, (h) to any credit insurance provider relating to
the Borrower and its Obligations or (i) to the extent such 

83

Information
(x) becomes publicly available other than as a result of a breach of this
Section or (y) becomes available to the Administrative Agent, any Lender, the
L/C Issuer or any of their respective Affiliates on a nonconfidential basis
from a source other than the Borrower. 

          For
purposes of this Section, “Information” means all information received
from the Borrower or any Subsidiary relating to the Borrower or any Subsidiary
or any of their respective businesses, other than any such information that is
available to the Administrative Agent, any Lender or the L/C Issuer on a
nonconfidential basis prior to disclosure by the Borrower or any Subsidiary, provided
that, in the case of information received from the Borrower or any Subsidiary
after the date hereof, such information is clearly identified at the time of
delivery as confidential. Any Person required to maintain the confidentiality
of Information as provided in this Section shall be considered to have complied
with its obligation to do so if such Person has exercised the same degree of
care to maintain the confidentiality of such Information as such Person would
accord to its own confidential information.

          Each
of the Administrative Agent, the Lenders and the L/C Issuer acknowledges that
(a) the Information may include material non-public information concerning the
Borrower or a Subsidiary, as the case may be, (b) it has developed compliance
procedures regarding the use of material non-public information and (c) it will
handle such material non-public information in accordance with applicable Law,
including United States Federal and state securities Laws

          10.08     Set-off.
If an Event of Default shall have occurred and be continuing, each Lender, the
L/C Issuer and each of their respective Affiliates is hereby authorized at any
time and from time to time, without prior notice to the Borrower, any such
notice being waived by the Borrower, to the fullest extent permitted by
applicable law, to set off and apply any and all deposits (general or special,
time or demand, provisional or final, in whatever currency) at any time held and
other obligations (in whatever currency) at any time owing by such Lender, the
L/C Issuer or any such Affiliate to or for the credit or the account of the
Borrower against any and all of the obligations of the Borrower now or
hereafter existing under this Agreement or any other Loan Document to such
Lender or the L/C Issuer, irrespective of whether or not such Lender or the L/C
Issuer shall have made any demand under this Agreement or any other Loan
Document and although such obligations of the Borrower may be contingent or
unmatured or are owed to a branch or office of such Lender or the L/C Issuer
different from the branch or office holding such deposit or obligated on such
indebtedness; provided, that in the event that any Defaulting Lender shall
exercise any such right of setoff on any amounts due on Obligations hereunder,
(x) all amounts so set off shall be paid over immediately to the Administrative
Agent for further application in accordance with the provisions of Section
2.15 and, pending such payment, shall be segregated by such Defaulting
Lender from its other funds and deemed held in trust for the benefit of the
Administrative Agent and the Lenders, and (y) the Defaulting Lender shall
provide promptly to the Administrative Agent a statement describing in
reasonable detail the Obligations owing to such Defaulting Lender as to which
it exercised such right of setoff. The rights of each Lender, the L/C Issuer
and their respective Affiliates under this Section are in addition to other
rights and remedies (including other rights of setoff) that such Lender, the
L/C Issuer or their respective Affiliates may have. Each Lender and the L/C
Issuer agrees to notify the Borrower and the Administrative Agent promptly
after any such setoff and application, provided that the failure to give
such notice shall not affect the validity of such setoff and application.

84

          10.09     Interest
Rate Limitation. Notwithstanding anything to the
contrary contained in any Loan Document, the interest paid or agreed to be paid
under the Loan Documents shall not exceed the maximum rate of non-usurious
interest permitted by applicable Law (the “Maximum Rate”). If the
Administrative Agent or any Lender shall receive interest in an amount that
exceeds the Maximum Rate, the excess interest shall be applied to the principal
of the Loans or, if it exceeds such unpaid principal, refunded to the Borrower.
In determining whether the interest contracted for, charged, or received by the
Administrative Agent or a Lender exceeds the Maximum Rate, such Person may, to
the extent permitted by applicable Law, (a) characterize any payment that is
not principal as an expense, fee, or premium rather than interest, (b) exclude
voluntary prepayments and the effects thereof, and (c) amortize, prorate,
allocate, and spread in equal or unequal parts the total amount of interest
throughout the contemplated term of the Obligations hereunder.

          10.10     Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall
be deemed an original, but all of which together shall constitute one and the
same instrument. Delivery of an executed counterpart of a signature page of
this Agreement and any other Loan Document by telecopy or electronic format
(including .pdf) shall be effective as delivery of a manually executed
counterpart of this Agreement and the other Loan Documents.

          10.11     Integration.
This Agreement, together with the other Loan Documents, comprises the complete
and integrated agreement of the parties on the subject matter hereof and
thereof and supersedes all prior agreements, written or oral, on such subject
matter. In the event of any conflict between the provisions of this Agreement
and those of any other Loan Document, the provisions of this Agreement shall
control; provided that the inclusion of supplemental rights or remedies
in favor of the Administrative Agent or the Lenders in any other Loan Document
shall not be deemed a conflict with this Agreement. Each Loan Document was
drafted with the joint participation of the respective parties thereto and
shall be construed neither against nor in favor of any party, but rather in
accordance with the fair meaning thereof.

          10.12     Survival
of Representations and Warranties. All representations
and warranties made hereunder and in any other Loan Document or other document
delivered pursuant hereto or thereto or in connection herewith or therewith
shall survive the execution and delivery hereof and thereof. Such
representations and warranties have been or will be relied upon by the
Administrative Agent and each Lender, regardless of any investigation made by
the Administrative Agent or any Lender or on their behalf and notwithstanding
that the Administrative Agent or any Lender may have had notice or knowledge of
any Default at the time of any Credit Extension, and shall continue in full
force and effect as long as any Loan or any other Obligation hereunder shall
remain unpaid or unsatisfied or any Letter of Credit shall remain outstanding.

          10.13     Severability.
If any provision of this Agreement or the other Loan Documents is held to be
illegal, invalid or unenforceable, (a) the legality, validity and
enforceability of the remaining provisions of this Agreement and the other Loan
Documents shall not be affected or impaired thereby and (b) the parties shall
endeavor in good faith negotiations to replace the illegal, invalid or
unenforceable provisions with valid provisions the economic effect of which
comes as close as possible to that of the illegal, invalid or unenforceable
provisions. The invalidity of a provision in a particular jurisdiction shall
not invalidate or render unenforceable 

85

such provision
in any other jurisdiction. Without limiting the foregoing provisions of this Section
10.13, if and to the extent that the enforceability of any provisions in
this Agreement relating to Defaulting Lenders shall be limited by Debtor Relief
Laws, as determined in good faith by the Administrative Agent or the L/C
Issuer, as applicable, then such provisions shall be deemed to be in effect
only to the extent not so limited.

          10.14     Replacement of Lenders.

          (a)          If
any Lender requests compensation under Section 3.04, or if the Borrower
is required to pay any additional amount to any Lender or any Governmental
Authority for the account of any Lender pursuant to Section 3.01, or if
any Lender is a Defaulting Lender, then the Borrower may, at its sole expense
and effort, upon notice to such Lender and the Administrative Agent, require
such Lender to assign and delegate, without recourse (in accordance with and
subject to the restrictions contained in, and consents required by, Section
10.06), all of its interests, rights and obligations under this Agreement
and the related Loan Documents to an assignee that shall assume such
obligations (which assignee may be another Lender, if a Lender accepts such
assignment), provided that:

	
  

 	
  

 
	
  

 	
               (i)     the
 Borrower shall have paid to the Administrative Agent the assignment fee
 specified in Section 10.06(b) (except as otherwise provided herein);

 
	
  

 	
  

 
	
  

 	
               (ii)     such
 Lender shall have received payment of an amount equal to 100% of the
 outstanding principal of its Loans and L/C Advances, accrued interest
 thereon, accrued fees and all other amounts payable to it hereunder and under
 the other Loan Documents (including any amounts under Section 3.05)
 from the assignee (to the extent of such outstanding principal and accrued
 interest and fees) or the Borrower (in the case of all other amounts);

 
	
  

 	
  

 
	
  

 	
               (iii)     in
 the case of any such assignment resulting from a claim for compensation under
 Section 3.04 or payments required to be made pursuant to Section
 3.01, such assignment will result in a reduction in such compensation or
 payments thereafter; and

 
	
  

 	
  

 
	
  

 	
               (iv)     such
 assignment does not conflict with applicable Laws.

 

          (b)     In
the event any Lender fails to approve any amendment, waiver or consent
requested by the Borrower pursuant to Section 10.01 that has received
the written approval of not less than the Required Lenders but also requires
the approval of such Lender (any such Lender, a “Restricted Lender”), so
long as no Default or Event of Default shall have occurred and be continuing
and the Borrower has obtained a commitment (in an amount not less than the
entire amount of such Restricted Lender’s Commitment) from one or more Lenders
or Eligible Assignees to become a Lender for all purposes hereunder (such
Lender or Lenders referred to as the “Replacement Lender”), the Borrower
may cause such Restricted Lender to be replaced by, and to assign all its
rights and obligations under this Agreement (including its Commitment and its
outstanding Credit Extensions) pursuant to Section 10.06 to, such Replacement
Lender. Such Restricted Lender agrees to execute and to deliver to the
Administrative Agent one or more Assignment and Assumptions with such
Replacement Lender as provided in Section 10.06 upon 

86

payment at par
of all principal, accrued interest, accrued fees and other amounts accrued or
owing under this Agreement to such Restricted Lender, and such Replacement
Lender shall pay to the Administrative Agent the assignment fee specified in Section
10.06(b) in connection with such assignment. The Restricted Lender making
such assignment will be entitled to compensation for any expenses or other
amounts which would be owing to such Restricted Lender pursuant to any
indemnification provision hereof (including, if applicable, Section 3.05)
as if the Borrower has prepaid the Loans of such Lender (and terminated its
Commitment, if applicable) rather than such Restricted Lender having assigned
its interest hereunder.

          A
Lender shall not be required to make any such assignment or delegation if, prior
thereto, as a result of a waiver by such Lender or otherwise, the circumstances
entitling the Borrower to require such assignment and delegation cease to
apply. 

          10.15     Governing
Law. 

          (a)         THIS
AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF
THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED
ENTIRELY WITHIN SUCH STATE; PROVIDED THAT THE ADMINISTRATIVE AGENT AND
EACH LENDER SHALL RETAIN ALL RIGHTS ARISING UNDER FEDERAL LAW.

          (b)         ANY
LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW
YORK CITY OR OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF SUCH STATE, AND BY EXECUTION AND DELIVERY OF
THIS AGREEMENT, THE BORROWER, THE ADMINISTRATIVE AGENT AND EACH LENDER
CONSENTS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE NON-EXCLUSIVE
JURISDICTION OF THOSE COURTS. THE BORROWER, THE ADMINISTRATIVE AGENT AND EACH LENDER
IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF
VENUE OR BASED ON THE GROUNDS OF FORUM NON
CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF
ANY ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT OF ANY LOAN DOCUMENT
OR OTHER DOCUMENT RELATED THERETO. THE BORROWER, THE ADMINISTRATIVE AGENT AND
EACH LENDER WAIVES PERSONAL SERVICE OF ANY SUMMONS, COMPLAINT OR OTHER PROCESS,
WHICH MAY BE MADE BY ANY OTHER MEANS PERMITTED BY THE LAW OF SUCH STATE.

          (c)         EACH
PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED
FOR NOTICES IN SECTION 10.02. NOTHING IN THIS AGREEMENT WILL AFFECT THE
RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY
APPLICABLE LAW.

          10.16     Waiver of
Right to Trial by Jury. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES,
TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A
TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING
TO THIS 

87

AGREEMENT OR
ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY
(WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A)
CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS
REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE
EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES
THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS
AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL
WAIVERS AND CERTIFICATIONS IN THIS SECTION.

          10.17     No Advisory
or Fiduciary Responsibility. In connection with all aspects of each
transaction contemplated hereby (including in connection with any amendment,
waiver or other modification hereof or of any other Loan Document), the
Borrower acknowledges and agrees, and
acknowledges its Affiliates’ understanding, that: (i) (A) the arranging
and other services regarding this Agreement provided by the Administrative
Agent and the Arrangers, are
arm’s-length commercial transactions between the Borrower and its respective Affiliates, on the one
hand, and the Administrative Agent and the
Arrangers, on the other hand, (B) the Borrower has consulted its own legal,
accounting, regulatory and tax advisors to the extent it has deemed
appropriate, and (C) the Borrower is capable of evaluating, and understands and
accepts, the terms, risks and conditions of the transactions contemplated
hereby and by the other Loan Documents; (ii) (A) the Administrative Agent and the Arrangers each is and has been
acting solely as a principal and, except as expressly agreed in writing by the
relevant parties, has not been, is not, and will not be acting as an advisor,
agent or fiduciary for the Borrower or any of its Affiliates, or any other Person and (B) neither the
Administrative Agent nor the
Arrangers has any obligation to the Borrower or any of its Affiliates with respect to the transactions contemplated
hereby except those obligations expressly set forth herein and in the other
Loan Documents; and (iii) the Administrative Agent and the Arrangers and their respective Affiliates may be engaged
in a broad range of transactions that involve interests that differ from those of
the Borrower and its Affiliates,
and neither the Administrative Agent nor
the Arrangers has any obligation to disclose any of such interests to
the Borrower or its Affiliates. To the fullest extent permitted by law, the Borrower hereby waives and releases
any claims that it may have against the Administrative Agent or any Arranger
with respect to any breach or alleged breach of agency or fiduciary duty in
connection with any aspect of any transaction contemplated hereby. 

88

          10.18     USA PATRIOT
Act Notice. Each Lender that is subject to the Act (as
hereinafter defined) and the Administrative Agent (for itself and not on behalf
of any Lender) hereby notifies the Borrower that pursuant to the requirements
of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October
26, 2001)) (the “Act”), it is required to obtain, verify and record
information that identifies the Borrower, which information includes the name
and address of the Borrower and other information that will allow such Lender
or the Administrative Agent, as applicable, to identify the Borrower in
accordance with the Act. The Borrower shall, promptly following a request by
the Administrative Agent or any Lender, provide all documentation and other
information that the Administrative Agent or such Lender requests in order to
comply with its ongoing obligations under applicable “know your customer” and
anti-money laundering rules and regulations, including the Act.

 [The remainder of
this page intentionally left blank.]

89

          IN
WITNESS WHEREOF, the parties hereto have caused this
Agreement to be duly executed as of the date first above written. 

	
  

 	
  

 	
  

 
	
  

 	
 ST. JUDE MEDICAL, INC.

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ John C.
 Heinmiller

 
	
  

 	
 Name:

 	
 John C.
 Heinmiller

 
	
  

 	
 Title:

 	
 Executive
 Vice President and Chief

 Financial Officer

 

St. Jude Medical, Inc.

Multi-Year Credit Agreement

Signature Page

	
  

 	
  

 	
  

 
	
  

 	
 BANK OF AMERICA, N.A., as Administrative
 Agent

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Angela
 Lau

 
	
  

 	
 Name:

 	
 Angela Lau

 
	
  

 	
 Title:

 	
 Vice
 President

 

St. Jude Medical, Inc.

Multi-Year Credit Agreement

Signature Page

	
  

 	
  

 	
  

 
	
  

 	
 BANK OF AMERICA, N.A., as a Lender and L/C
 Issuer

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Zubin R.
 Shroff

 
	
  

 	
 Name:

 	
 Zubin R.
 Shroff

 
	
  

 	
 Title:

 	
 Director

 

St. Jude Medical, Inc.

Multi-Year Credit Agreement

Signature Page

	
  

 	
  

 	
  

 
	
  

 	
 WELLS FARGO BANK, NATIONAL ASSOCIATION

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Scott
 Santa Cruz

 
	
  

 	
 Name:

 	
 Scott Santa
 Cruz

 
	
  

 	
 Title:

 	
 Director

 

St. Jude Medical, Inc.

Multi-Year Credit Agreement

Signature Page

	
  

 	
  

 	
  

 
	
  

 	
 THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Victor
 Pierzchalski

 
	
  

 	
 Name:

 	
 Victor
 Pierzchalski

 
	
  

 	
 Title:

 	
 Authorized
 Signatory

 

St. Jude Medical, Inc.

Multi-Year Credit Agreement

Signature Page

	
  

 	
  

 	
  

 
	
  

 	
 U.S. BANK NATIONAL ASSOCIATION

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Karen S.
 Paris

 
	
  

 	
 Name:

 	
 Karen S.
 Paris

 
	
  

 	
 Title:

 	
 Senior Vice
 President

 

St. Jude Medical, Inc.

Multi-Year Credit Agreement

Signature Page

	
  

 	
  

 	
  

 
	
  

 	
 THE ROYAL BANK OF SCOTLAND, PLC

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Timothy
 J. McNaught

 
	
  

 	
 Name:

 	
 Timothy J.
 McNaught

 
	
  

 	
 Title:

 	
 Managing
 Director

 

St. Jude Medical, Inc.

Multi-Year Credit Agreement

Signature Page

	
  

 	
  

 	
  

 
	
  

 	
 MIZUHO CORPORATE BANK (USA)

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Raymond
 Ventura

 
	
  

 	
 Name:

 	
 Raymond
 Ventura

 
	
  

 	
 Title:

 	
 Deputy
 General Manager

 

St. Jude Medical, Inc.

Multi-Year Credit Agreement

Signature Page

	
  

 	
  

 	
  

 
	
  

 	
 SVENSKA HANDELSBANKEN AB (PUBL)

 NEW YORK BRANCH

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Richard
 Johnson

 
	
  

 	
 Name:

 	
 Richard
 Johnson

 
	
  

 	
 Title:

 	
 Senior Vice
 President

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Mark
 Emmett

 
	
  

 	
 Name:

 	
 Mark Emmett

 
	
  

 	
 Title:

 	
 Vice
 President

 

St. Jude Medical, Inc.

Multi-Year Credit Agreement

Signature Page

	
  

 	
  

 	
  

 
	
  

 	
 SUMITOMO MITSUI BANKING CORPORATION

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ William
 M. Ginn

 
	
  

 	
 Name:

 	
 William M.
 Ginn

 
	
  

 	
 Title:

 	
 Executive
 Officer

 

St. Jude Medical, Inc.

Multi-Year Credit Agreement

Signature Page

	
  

 	
  

 	
  

 
	
  

 	
 TD BANK, N.A.

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Marla
 Willner

 
	
  

 	
 Name:

 	
 Marla
 Willner

 
	
  

 	
 Title:

 	
 Senior Vice
 President

 

St. Jude Medical, Inc.

Multi-Year Credit Agreement

Signature Page

	
  

 	
  

 	
  

 
	
  

 	
 BNP PARIBAS

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Michael
 Pearce

 
	
  

 	
 Name:

 	
 Michael
 Pearce

 
	
  

 	
 Title:

 	
 Director

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Andy
 Strait

 
	
  

 	
 Name:

 	
 Andy Strait

 
	
  

 	
 Title:

 	
 Managing
 Director

 

St. Jude Medical, Inc.

Multi-Year Credit Agreement

Signature Page

	
  

 	
  

 	
  

 
	
  

 	
 JPMORGAN CHASE BANK, N.A.

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Brian L.
 Grossman

 
	
  

 	
 Name:

 	
 Brian L.
 Grossman

 
	
  

 	
 Title:

 	
 Senior Vice
 President

 

St. Jude Medical, Inc.

Multi-Year Credit Agreement

Signature Page

	
  

 	
  

 	
  

 
	
  

 	
 SUNTRUST BANK

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 /s/
 Elizabeth Greene

 
	
  

 	
 Name:

 	
 Elizabeth
 Greene

 
	
  

 	
 Title:

 	
 Director

 

St. Jude Medical, Inc.

Multi-Year Credit Agreement

Signature Page

	
  

 	
  

 	
  

 
	
  

 	
 FIFTH THIRD BANK

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Joshua
 N. Livingston

 
	
  

 	
 Name:

 	
 Joshua N.
 Livingston

 
	
  

 	
 Title:

 	
 Officer

 

St. Jude Medical, Inc.

Multi-Year Credit Agreement

Signature Page

	
  

 	
  

 	
  

 
	
  

 	
 LLOYDS TSB BANK PLC

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Windsor
 R. Davies

 
	
  

 	
 Name:

 	
 Windsor R.
 Davies

 
	
  

 	
 Title:

 	
 Managing
 Director, Corporate Banking

 USA D061

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Candi
 Obrentz

 
	
  

 	
 Name:

 	
 Candi
 Obrentz

 
	
  

 	
 Title:

 	
 Vice
 President, Financial Institutions, North

 America O013

 

St. Jude Medical, Inc.

Multi-Year Credit Agreement

Signature Page

	
  

 	
  

 	
  

 
	
  

 	
 PNC BANK, NATIONAL ASSOCIATION

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Philip
 K. Liebscher

 
	
  

 	
 Name:

 	
 Philip K.
 Liebscher

 
	
  

 	
 Title:

 	
 Senior Vice
 President

 

St. Jude Medical, Inc.

Multi-Year Credit Agreement

Signature Page

	
  

 	
  

 	
  

 
	
  

 	
 COMERICA BANK

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Brandon
 Welling

 
	
  

 	
 Name:

 	
 Brandon
 Welling

 
	
  

 	
 Title:

 	
 Assistant
 Vice President

 

St. Jude Medical, Inc.

Multi-Year Credit Agreement

Signature Page

	
  

 	
  

 	
  

 
	
  

 	
 KBC BANK N.V.

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Kurt O.
 Pagon

 
	
  

 	
 Name:

 	
 Kurt O.
 Pagon

 
	
  

 	
 Title:

 	
 Vice
 President

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Robert
 Snauffer

 
	
  

 	
 Name:

 	
 Robert
 Snauffer

 
	
  

 	
 Title:

 	
 Managing
 Director

 

St. Jude Medical, Inc.
Multi-Year Credit Agreement
Signature Page 

	
  

 	
  

 	
  

 
	
  

 	
 BANK OF COMMUNICATIONS CO., LTD., NEW YORK BRANCH

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Shelley
 He

 
	
  

 	
 Name:

 	
 Shelley He

 
	
  

 	
 Title:

 	
 Deputy
 General Manager

 

St. Jude Medical, Inc.

Multi-Year Credit Agreement

Signature Page

	
  

 	
  

 	
  

 
	
  

 	
 THE NORTHERN TRUST COMPANY

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Benjamin
 Livermore

 
	
  

 	
 Name:

 	
 Benjamin
 Livermore

 
	
  

 	
 Title:

 	
 Vice
 President

 

St. Jude Medical, Inc.

Multi-Year Credit Agreement

Signature Page

	
  

 	
  

 	
  

 
	
  

 	
 CHANG HWA COMMERCIAL BANK, LTD., LOS ANGELES BRANCH

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Beverley
 Chen

 
	
  

 	
 Name:

 	
 Beverley
 Chen

 
	
  

 	
 Title:

 	
 Vice
 President & General Manager

 

St. Jude Medical, Inc.

Multi-Year Credit Agreement

Signature Page

	
  

 	
  

 	
  

 
	
  

 	
 MEGA INTERNATIONAL COMMERCIAL BANK CO., LTD., NEW YORK BRANCH

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 /s/
 Priscilla Hsing

 
	
  

 	
 Name:

 	
 Priscilla
 Hsing

 
	
  

 	
 Title:

 	
 VP & DGM

 

St. Jude Medical, Inc.

Multi-Year Credit Agreement

Signature Page

SCHEDULE 1.01

EXCLUDED SUBSIDIARIES

None

S-1

SCHEDULE 2.01

COMMITMENTS

AND PRO RATA SHARES

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Lender

 	
  

 	
 Commitment

 	
  

 	
  

 	
 Pro Rata Share

 	
  

 
	
 Bank
 of America, N.A.

 	
  

 	
 $

 	
 140,000,000.00

 	
  

 	
  

 	
  

 	
 9.333333333

 	
 %

 
	
 Wells
 Fargo Bank, National Association

 	
  

 	
 $

 	
 140,000,000.00

 	
  

 	
  

 	
  

 	
 9.333333333

 	
 %

 
	
 The
 Bank of Tokyo-Mitsubishi UFJ, Ltd.

 	
  

 	
 $

 	
 140,000,000.00

 	
  

 	
  

 	
  

 	
 9.333333333

 	
 %

 
	
 U.S.
 Bank National Association

 	
  

 	
 $

 	
 87,500,000.00

 	
  

 	
  

 	
  

 	
 5.833333333

 	
 %

 
	
 The
 Royal Bank of Scotland, plc

 	
  

 	
 $

 	
 87,500,000.00

 	
  

 	
  

 	
  

 	
 5.833333333

 	
 %

 
	
 Mizuho
 Corporate Bank (USA)

 	
  

 	
 $

 	
 70,000,000.00

 	
  

 	
  

 	
  

 	
 4.666666667

 	
 %

 
	
 Svenska
 Handelsbanken AB (PUBL) New York Branch

 	
  

 	
 $

 	
 70,000,000.00

 	
  

 	
  

 	
  

 	
 4.666666667

 	
 %

 
	
 Sumitomo
 Mitsui Banking Corporation

 	
  

 	
 $

 	
 70,000,000.00

 	
  

 	
  

 	
  

 	
 4.666666667

 	
 %

 
	
 TD
 Bank, N.A.

 	
  

 	
 $

 	
 70,000,000.00

 	
  

 	
  

 	
  

 	
 4.666666667

 	
 %

 
	
 BNP
 Paribas

 	
  

 	
 $

 	
 70,000,000.00

 	
  

 	
  

 	
  

 	
 4.666666667

 	
 %

 
	
 JPMorgan
 Chase Bank, N.A.

 	
  

 	
 $

 	
 65,000,000.00

 	
  

 	
  

 	
  

 	
 4.333333333

 	
 %

 
	
 SunTrust
 Bank

 	
  

 	
 $

 	
 65,000,000.00

 	
  

 	
  

 	
  

 	
 4.333333333

 	
 %

 
	
 Fifth
 Third Bank

 	
  

 	
 $

 	
 65,000,000.00

 	
  

 	
  

 	
  

 	
 4.333333333

 	
 %

 
	
 Lloyds
 TSB Bank plc

 	
  

 	
 $

 	
 65,000,000.00

 	
  

 	
  

 	
  

 	
 4.333333333

 	
 %

 
	
 PNC
 Bank, National Association

 	
  

 	
 $

 	
 65,000,000.00

 	
  

 	
  

 	
  

 	
 4.333333333

 	
 %

 
	
 Comerica
 Bank

 	
  

 	
 $

 	
 50,000,000.00

 	
  

 	
  

 	
  

 	
 3.333333333

 	
 %

 
	
 KBC
 Bank N.V.

 	
  

 	
 $

 	
 50,000,000.00

 	
  

 	
  

 	
  

 	
 3.333333333

 	
 %

 
	
 Bank
 of Communications Co. Ltd., New York Branch

 	
  

 	
 $

 	
 50,000,000.00

 	
  

 	
  

 	
  

 	
 3.333333333

 	
 %

 
	
 The
 Northern Trust Company

 	
  

 	
 $

 	
 40,000,000.00

 	
  

 	
  

 	
  

 	
 2.666666667

 	
 %

 
	
 Chang
 Hwa Commercial Bank, Ltd., Los Angeles Branch

 	
  

 	
 $

 	
 25,000,000.00

 	
  

 	
  

 	
  

 	
 1.666666667

 	
 %

 
	
 Mega
 International Commercial Bank Co., Ltd., New York Branch

 	
  

 	
 $

 	
      15,000,000.00

 	
  

 	
  

 	
  

 	
 1.000000000

 	
 %

 
	
 Total

 	
  

 	
 $

 	
 1,500,000,000.00

 	
  

 	
  

 	
  

 	
 100.000000000

 	
 %

 

S-2

SCHEDULE 5.05

LITIGATION

Judicial Matters:

Silzone®
Litigation and Insurance Receivables: The Borrower has been sued in various
jurisdictions beginning in March 2000 by some patients who received a heart
valve product with Silzone® coating, which the Borrower stopped selling in
January 2000. Some of these claimants allege bodily injuries as a result of an
explant or other complications, which they attribute to these products. Others,
who have not had their Silzone-coated heart valve explanted, seek compensation
for past and future costs of special monitoring they allege they need over and
above the medical monitoring all other replacement heart valve patients
receive. Some of the lawsuits seeking the cost of monitoring have been
initiated by patients who are asymptomatic and who have no apparent clinical
injury to date. The Borrower has vigorously defended against the claims that
have been asserted and expects to continue to do so with respect to any
remaining claims. While the Borrower has a small number of individual Silzone
cases in federal and state courts outstanding, based on the Borrower’s
historical experience with similar cases, the Borrower expects to resolve these
specific cases at minimal, if any, cost to the Borrower. 

The Borrower
has been able to successfully resolve class action matters relating to Silzone
in British Columbia and Quebec. As part of the British Columbia class action
settlement, the Borrower made a $2.1 million payment in March 2010. As part of
the Quebec class action settlement, the Borrower made a $5.7 million payment in
April 2010. The Quebec class action settlement also resolved the claim raised
by the Quebec Provincial health insurer seeking to recover the cost of insured
services furnished or to be furnished to class members in the Quebec class
action. 

The Borrower
has two outstanding class action cases relating to Silzone in Ontario and one
individual case in British Columbia by the Provincial health insurer. In
Ontario, a class action case involving Silzone patients has been certified, and
the trial began in February 2010. A second case seeking class action status in
Ontario has been stayed pending resolution of the other Ontario class action.
The complaints in the Ontario cases request damages up to 2.0 billion Canadian
Dollars (the equivalent of $1.9 billion at October 2, 2010). Based on the
Borrower’s historical experience, the amount ultimately paid, if any, often
does not bear any relationship to the amount claimed. The British Columbia Provincial
health insurer has a lawsuit seeking to recover the cost of insured services
furnished or to be furnished to class members in the British Columbia class
action, and that lawsuit remains pending in the British Columbia court. 

The Borrower
has recorded an accrual for probable legal costs, settlements and judgments for
Silzone related litigation. The Borrower is not aware of any unasserted claims
related to Silzone-coated products. For all Silzone legal costs incurred, the
Borrower records insurance receivables for the amounts that it expects to
recover. Any costs (the material components of which are settlements,
judgments, legal fees and other related defense costs) not covered by the
Borrower’s product liability insurance policies or existing reserves could be
material to the Borrower’s consolidated earnings, financial position and cash
flows. The following table summarizes the Borrower’s Silzone legal accrual and
related insurance receivables at October 2, 2010 and January 2, 2010 (in
thousands): 

S-3

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 October 2,

 2010

 	
  

 	
 January 2,

 2010

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Silzone
 legal accrual

 	
  

 	
 $

 	
 23,133

 	
  

 	
 $

 	
 23,326

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Silzone
 insurance receivable

 	
  

 	
 $

 	
 63,710

 	
  

 	
 $

 	
 42,538

 	
  

 

Part of the
Borrower’s remaining product liability insurance for Silzone claims consists of
a $50.0 million layer of insurance covered by American Insurance Borrower
(AIC). In December 2007, AIC initiated a lawsuit in Minnesota federal district
court seeking a court order declaring that it is not required to provide
coverage for a portion of the Silzone litigation defense and indemnity expenses
that the Borrower may incur in the future. The insurance broker that assisted
the Borrower in procuring the insurance with AIC was also added as a party to
the case on the Borrower’s behalf. The Borrower and AIC have now agreed to
settle this litigation. 

Part of the
Borrower’s final layer of insurance was covered by Lumberman’s Mutual Casualty
Insurance, a unit of the Kemper Insurance Companies (collectively referred to
as Kemper). Kemper is currently in “run off,” which means it is no longer
issuing new policies, and therefore, is not generating any new revenue that
could be used to cover claims made under previously-issued policies. In
September 2010, Kemper agreed to settle its future insurance obligations with
the Borrower, the amount of which was not material. The Borrower’s remaining
insurance for Silzone claims consists of $30 million of coverage with other
insurance carriers that are responsible for claims incurred after the AIC
insurance layer is exhausted. To the extent that the Borrower’s future Silzone
costs and expenses exceed our remaining insurance coverage, the Borrower would
be responsible for such costs. The Borrower has not accrued for any potential
losses relating to future costs as they are not probable or reasonably
estimable at this time. 

Volcano
Corporation & LightLab Imaging Litigation: The Borrower’s recently acquired
subsidiary, LightLab Imaging, Inc. (LightLab Imaging), has pending litigation
with Volcano Corporation (Volcano) and Axsun Technologies, Inc. (Axsun), a
subsidiary of Volcano, in state court in Massachusetts and Delaware. LightLab
Imaging makes and sells optical coherence tomography (OCT) imaging systems.
Volcano is a LightLab Imaging competitor in medical imaging. Axsun makes and
sells lasers and is a supplier of lasers to LightLab Imaging for use in OCT
imaging systems. The lawsuits arise out of Volcano’s acquisition of Axsun in
December 2008. Before Volcano acquired Axsun, LightLab Imaging and Axsun had
worked together to develop a tunable laser for use in OCT imaging systems.
While the laser was in development, LightLab Imaging and Axsun entered into an
agreement pursuant to which Axsun agreed to sell its tunable lasers exclusively
to LightLab in the field of human coronary artery imaging for a period of
years. 

After Volcano acquired Axsun in December 2008, LightLab Imaging sued
Axsun and Volcano 

S-4

in
Massachusetts, asserting a number of claims arising out of Volcano’s
acquisition of Axsun. In a phased trial in Massachusetts in February 2010, a
jury found Axsun had breached its contract with LightLab Imaging, Volcano had
intentionally interfered with that contract, and both Axsun and Volcano had
misappropriated certain LightLab Imaging trade secrets. The jury also found
Axsun was contractually required to sell a particular version of the laser to
LightLab Imaging, rejecting Axsun’s position that the contract only required
the sale of an earlier version of the laser. The jury also found in LightLab
Imaging’s favor that the restriction on sales of tunable lasers to Volcano
applied to all of Axsun’s tunable lasers for OCT imaging, rejecting Axsun’s and
Volcano’s position that the restriction on such sales applied only to a laser
meeting a particular specification. Following the jury’s verdict, LightLab
Imaging, Axsun, and Volcano stipulated to the amount of damages a jury could
award against Axsun and Volcano. 

In a later
phase of the Massachusetts lawsuit, the court ruled there was an insufficient
basis to enjoin Axsun and Volcano from using certain information, not
considered by the jury, that LightLab Imaging regards as trade secrets.
LightLab Imaging presently expects the court will consider other trade secret
issues in later stages, as well as considering whether Axsun’s and Volcano’s
conduct constituted knowing or willful violations of a statute that prohibits
unfair or deceptive acts or practices or acts of unfair competition, whether
damages against Axsun or Volcano should be doubled or trebled under that
statute, whether Axsun and Volcano should be ordered to reimburse LightLab
Imaging for its attorneys fees and related litigation expenses, and whether any
permanent injunctions should be entered against Axsun and Volcano. 

In Delaware,
Axsun and Volcano commenced an action in February 2010 against LightLab
Imaging, seeking a declaration as to whether Axsun may supply a certain light
source for use in OCT imaging systems to Volcano. Axsun’s and Volcano’s
position is that this light source is not a tunable laser and hence falls
outside Axsun’s exclusivity obligations to LightLab Imaging. LightLab Imaging’s
position, among other things, is that this light source is a tunable laser. The
parties are presently involved in expedited discovery, and a trial is expected
to commence in early to mid 2011. 

Volcano
Corporation & St. Jude Medical Patent Litigation: In July 2010, the
Borrower filed a lawsuit in federal district court in Delaware against Volcano
for patent infringement. The suit involves five patents and seeks injunctive
relief and monetary damages. The infringed patents are used for the St. Jude
Medical PressureWire® technology platform, which was acquired from Radi Medical
Systems in December 2008. In September 2010, Volcano filed counterclaims
against the Borrower, alleging certain St. Jude Medical patent claims are
unenforceable and that certain St. Jude Medical products infringe three Volcano
patents. The Borrower believes the assertions and claims made by Volcano are
without merit. 

Boston U.S.
Attorney Investigation: In October 2005, the U.S. Department of Justice (DOJ),
acting through the U.S. Attorney’s office in Boston, commenced an industry-wide
investigation into whether the provision of payments and/or services by makers
of implantable cardioverter-defibrillators (ICDs) and bradycardia pacemaker
systems (pacemakers) to doctors or other persons constitutes improper
inducements under the federal health care program anti-kickback law. As part of
this investigation, the Borrower has received three subpoenas from the DOJ
requesting documents regarding the Borrower’s practices related to ICDs,
pacemakers, lead systems and related products marketed by the Borrower’s
Cardiac Rhythm Management (CRM) operating segment. The Borrower has cooperated
with the investigation and has produced 

S-5

documents and
witnesses as requested. In January 2010, the U.S. District Court for the
District of Massachusetts unsealed a qui tam action (private individual
bringing suit on behalf of the U.S. Government) filed by a former employee containing
allegations relating to the issues covered by the subpoenas. Although in
December 2009, the DOJ had declined to intervene in this qui tam suit, the DOJ
filed a motion in August 2010 to intervene. The Court granted the DOJ’s motion,
without prejudice to the Borrower. The DOJ has indicated that it intends only
to pursue alleged claims related to four post-market studies conducted by the
Borrower primarily in 2004-2006. The Court also ruled that the Borrower may
file its objection to the August 2010 DOJ intervention and argue that the DOJ
has not established good cause to intervene. At a status hearing on November
29, 2010, the Court directed DOJ to file its complaint by January 31, 2011. The
Borrower will vigorously defend against the allegations in the lawsuit. It is
not possible to predict the outcome of this matter at this time. 

Additionally,
in December 2008, the U.S. Attorney’s Office in Boston delivered a subpoena
issued by the Office of Inspector General requesting the production of
documents relating to implantable cardiac rhythm device and pacemaker warranty
claims. The Borrower has cooperated with the investigation and has produced
documents as requested. 

U.S. Department of Justice -
Civil Investigative Demand: In March 2010, the Borrower received a Civil
Investigative Demand (CID) from the Civil Division of the DOJ. The CID requests
documents and sets forth interrogatories related to communications by and
within the Borrower on various indications for ICDs and a National Coverage
Decision issued by Centers for Medicare and Medicaid Services. Similar requests
were made of our major competitors. The Borrower is cooperating with the
investigation and is continuing to work with the DOJ in responding to the CID. 

Securities Class Action Litigation: On
March 18, 2010, a securities class action lawsuit was filed in federal district
court in Minnesota against the Borrower and certain officers on behalf of
purchasers of the Borrower’s common stock between April 22, 2009 and October 6,
2009. The lawsuit relates to the Borrower’s earnings announcements for the
first, second and third quarters of 2009, as well as a preliminary earnings
release dated October 6, 2009. The complaint, which seeks unspecified damages
and other relief as well as attorneys’ fees, alleges that the Borrower failed
to disclose that it was experiencing a slowdown in demand for its products and
was not receiving anticipated orders for CRM devices. Class members allege that
the Borrower’s failure to disclose the above information resulted in the class
purchasing the Borrower’s stock at an artificially inflated price. The Borrower
intends to vigorously defend against the claims asserted in this lawsuit. In
October 2010, the Borrower filed a motion to dismiss the lawsuit, which is scheduled
to be heard by the District Court in early January 2011. 

Derivative Litigation: In
September 2010, two separate derivative actions involving the Borrower were
filed in the United States District Court for the District of Minnesota. In
both of these matters, the defendants consist of members (or former members) of
the Borrower’s Board of Directors as well as various officers and former
officers of the Borrower. The plaintiffs in these actions are asserting breach
of fiduciary duty claims against the named defendants for their purported
failure to stop the alleged underlying conduct (which relates to the contents
of qui tam actions filed in Ohio and Massachusetts). In October 2010, the
plaintiffs filed a motion before the Judicial Panel on MultiDistrict Litigation
requesting that the two cases be transferred to the District of Massachusetts
and consolidated with what they claim are related actions there. The Borrower
intends to oppose the transfer request and to vigorously defend against the
claims 

S-6

asserted in
these two derivative lawsuits. 

Regulatory Matters 

The Food and
Drug Administration (FDA) inspected the Borrower’s manufacturing facility in
Minnetonka, Minnesota at various times between December 8 and December 19,
2008. On December 19, 2008, the FDA issued a Form 483 identifying certain
observed non-conformities with current Good Manufacturing Practice (cGMP)
primarily related to the manufacture and assembly of the SafireTM
ablation catheter with a 4 mm or 5 mm non-irrigated tip. Following the receipt
of the Form 483, the Borrower’s Atrial Fibrillator division provided written
responses to the FDA detailing proposed corrective actions and immediately
initiated efforts to address the FDA’s observations of non-conformity. The
Borrower subsequently received a warning letter dated April 17, 2009 from the
FDA relating to these non-conformities with respect to this facility. 

The FDA
inspected the Borrower’s Plano, Texas manufacturing facility at various times
between March 5 and April 6, 2009. On April 6, 2009, the FDA issued a Form 483
identifying certain observed nonconformities with cGMP. Following the receipt
of the Form 483, the Borrower’s Neuromodulation division provided written
responses to the FDA detailing proposed corrective actions and immediately
initiated efforts to address the FDA’s observations of nonconformity. The
Borrower subsequently received a warning letter dated June 26, 2009 from the
FDA relating to these non-conformities with respect to its Neuromodulation
division’s Plano, Texas and Hackettstown, New Jersey facilities. 

With respect
to each of these warning letters, the FDA notes that it will not grant requests
for exportation certificates to foreign governments or approve pre-market
approval applications for Class III devices to which the quality system
regulation deviations are reasonably related until the violations have been
corrected. The Borrower is working cooperatively with the FDA to resolve all of
its concerns. 

On April 23,
2010, the FDA issued a warning letter based upon a July 29, 2009 inspection of
our Sunnyvale, California facility and a review of our website. The warning
letter cites the Borrower for its promotion and marketing of the EpicorTM LP
Cardiac Ablation System and the Epicor UltraCinch LP Ablation Device based on
certain statements made in the Borrower’s marketing materials. The Borrower is
working cooperatively with the FDA to resolve all of its concerns. The warning
letter is not expected to have any material impact on the Borrower’s business. 

Customer
orders have not been and are not expected to be impacted while the Borrower
works to resolve the FDA’s concerns. The Borrower is working diligently to
respond timely and fully to the FDA’s requests. While the Borrower believes the
issues raised by the FDA can be resolved without a material impact on the
Borrower’s financial results, the FDA has recently been increasing its scrutiny
of the medical device industry and raising the threshold for compliance. The
government is expected to continue to scrutinize the industry closely with
inspections, and possibly enforcement actions, by the FDA or other agencies.
The Borrower is regularly monitoring, assessing and improving its internal
compliance systems and procedures to ensure that its activities are consistent
with applicable laws, regulations and requirements, including those of the FDA.

Other Matters 

S-7

In connection
with the pending acquisition of AGA Medical Holdings, Inc. (AGA Medical), the
Borrower, in addition to AGA Medical and other defendants, has been named as a
defendant in two putative stockholder class action complaints, one filed in the
Fourth Judicial District Court of Minnesota on October 27, 2010 and the other
filed in the Delaware Court of Chancery on October 28, 2010. The plaintiffs in
the complaints allege, among other claims, that AGA Medical’s directors
breached their fiduciary duties to AGA Medical’s stockholders by accepting an
inadequate price, failing to make full disclosure, and utilizing unreasonable
deal protection devices and further alleges that AGA Medical and the Borrower
aided and abetted the purported breaches of fiduciary duty. The complaints seek
injunctive relief, including to enjoin the transaction, in addition to
unspecified compensatory damages, attorneys’ fees, other fees and costs and
other relief. On November 8, 2010, the parties to this action entered into a
memorandum of understanding (MOU) to settle the litigation. The settlement
contemplated by the MOU is subject to several conditions, including the
negotiation and execution of a stipulation of settlement and the approval of
the Delaware Court of Chancery. 

As part of the
acquisition of AGA Medical Holdings, Inc. that closed on November 18, 2010, the
Borrower inherited a Deferred Prosecution Agreement arising from Foreign
Corrupt Practices Act issues in China. The Deferred Prosecution Agreement is
limited to AGA Medical and its subsidiaries and expires on June 8, 2011. 

On November 9,
2010, the French Competition Authorities conducted a “dawn raid” on the offices
of the Borrower’s French subsidiary as part of a CRM industry wide
investigation into certain pricing practices. The Borrower
is cooperating with the investigation.

The Borrower is also involved in various
other lawsuits, claims and proceedings that arise in the ordinary course of
business.

S-8

SCHEDULE 5.07

ERISA MATTERS

None

S-9

SCHEDULE 5.10

TAXES

The Borrower
and St. Jude Medical Puerto Rico, Inc. (SJMPR) received “30-day” letters and
examination reports on IRS Form 870 dated November 20, 2008 from the Internal
Revenue Service (IRS) proposing adjustments to each of the Borrower’s and
SJMPR’s taxes for the periods 1998-2005 and 1998-1999. The Borrower and SJMPR
each filed a protest of the proposed adjustments on January 22, 2009, and have
had a series of ongoing meetings with IRS Appeals to try to resolve the issue.
The proposed adjustments arise from transfer pricing issues related to
transactions between the Borrower and SJMPR. The Borrower and SJMPR disagree
with the proposed adjustment and intend to contest this matter through
applicable IRS and judicial procedures, as appropriate. 

S-10

SCHEDULE 5.11

MATERIAL INDEBTEDNESS

The Borrower’s
Subsidiaries in Spain and Italy have initiated letters of credit with various
banks in the ordinary course of business. These letters of credit total approximately
$35 million.

The Borrower
maintains a large deductible workers’ compensation insurance program and
foreign liability program for which insurance carriers require collateral in
the form of a standby letter of credit. These letters of credit currently total
approximately $6.5 million.

As of December
14, 2010, the Borrower has approximately $21 million outstanding under the
Borrower’s commercial paper program.

On December 6,
2010, the Borrower issued $500.0 million principal amount of 5-year, 2.50% unsecured
senior notes that mature in January 2016. Concurrent with the issuance of the
2016 Senior Notes, the Borrower entered into a 5-year, $500.0 million notional
amount interest rate swap designated as a fair value hedge of the changes in
fair value of the Borrower’s fixed-rate 2016 Senior Notes. 

S-11

SCHEDULE 5.12

ENVIRONMENTAL MATTERS

None

S-12

SCHEDULE 5.16

SUBSIDIARIES

St. Jude Medical, Inc.

Subsidiaries and Equity Investments

as of December 10, 2010

Part (a)

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 St. Jude Medical, Inc.
 Wholly Owned Subsidiaries: 

 
	
 •

 	
 AGA Medical Holdings, Inc.
 – Plymouth, Minnesota (Delaware corporation)

 
	
  

 	
  

 	
 -

 	
 AGA Medical Corporation –
 Plymouth, Minnesota (Minnesota corporation)

 
	
  

 	
  

 	
 -

 	
 Amplatzer Medical Sales
 Corporation – Plymouth, Minnesota (Minnesota corporation)

 
	
  

 	
  

 	
  

 	
  

 	
 -

 	
 AGA Medical (HK) Limited –
 (Chinese private limited Borrower)

 
	
  

 	
  

 	
  

 	
  

 	
 -

 	
 AGA Medical, LLC –
 Plymouth, Minnesota (Minnesota corporation)

 
	
  

 	
  

 	
 -

 	
 AGA Medical Switzerland
 Sárl –(Swiss limited liability Borrower)

 
	
  

 	
  

 	
 -

 	
 AGA Medical Limited –
 (United Kingdom corporation)

 
	
  

 	
  

 	
 -

 	
 AGA Medical Deutschland
 GmbH – (German corporation)

 
	
  

 	
  

 	
 -

 	
 Amplatzer Medical España,
 S.L. – (Spanish limited liability Borrower)

 
	
  

 	
  

 	
 -

 	
 Amplatzer Medical France
 SAS – (French corporation)

 
	
  

 	
  

 	
 -

 	
 AGA Medical Polska Sp.
 zo.o. – (Polish corporation) 

 
	
  

 	
  

 	
 -

 	
 AGA Medical Canada Inc. –
 (Canadian corporation)

 
	
  

 	
  

 	
 -

 	
 AGA Medical Italia S.R.L.
 – (Italian limited liability Borrower)

 
	
  

 	
  

 	
 -

 	
 Amplatzer Medical
 Portugal, Unipessoal Lda. – (Portuguese limited liability Borrower)

 
	
  

 	
  

 	
 -

 	
 AGA Medical Belgium Sprl –
 (Belgian limited liability Borrower)

 
	
 •

 	
 Pacesetter, Inc. – Sylmar,
 California, Scottsdale, Arizona, and Maven, South Carolina (Delaware
 corporation) (dba St. Jude Medical Cardiac Rhythm Management Division)

 
	
 •

 	
 St. Jude Medical S.C.,
 Inc. – Austin, Texas (Minnesota corporation)

 
	
 •

 	
 St. Jude Medical Europe,
 Inc. – St. Paul, Minnesota (Delaware corporation)

 
	
 •

 	
 St. Jude Medical Canada,
 Inc. – Mississauga, Ontario (Ontario, Canada corporation) 

 
	
 •

 	
 St. Jude Medical
 (Shanghai) Co., Ltd. – Shanghai, China (Chinese corporation)

 
	
  

 	
 -

 	
 Beijing, Shanghai and
 Guangzhou representative offices

 
	
 •

 	
 St. Jude Medical Australia
 Pty., Ltd. – Sydney, Australia (Australian corporation)

 
	
 •

 	
 St. Jude Medical Brasil,
 Ltda. – Sao Paulo and Belo Horizonte, Brazil (Brazilian corporation)

 
	
 •

 	
 St. Jude Medical, Atrial
 Fibrillation Division, Inc. (Formerly St. Jude Medical, Daig Division, Inc.)
 - Minnesota and California (Minnesota corporation)

 
	
  

 	
 -

 	
 Endocardial Solutions
 NV/SA (Belgian corporation)

 
	
  

 	
 -

 	
 EP MedSystems France
 (French corporation) 

 
	
 •

 	
 St.
 Jude Medical Colombia, Ltda. – Bogota, Colombia (Colombian corporation)

 
	
 •

 	
 Eagle
 Merger Corporation – (Delaware corporation)

 
	
 •

 	
 St. Jude Medical ATG, Inc.
 – Maple Grove, Minnesota (Minnesota corporation) (Shell)

 
	
 •

 	
 St. Jude Medical
 (Thailand) Co., Ltd. – Bangkok, Thailand (Thai corporation)

 
	
 •

 	
 Irvine Biomedical, Inc. –
 Irvine, California (California corporation)

 
	
 •

 	
 St. Jude Medical,
 Cardiology Division, Inc. (Formerly Velocimed, Inc.) - Minnesota (Delaware
 corporation) (dba St. Jude Medical Cardiovascular Division)

 
	
  

 	
 -

 	
 LightLab Imaging, Inc. –
 Westford, Massachusetts (Delaware corporation)

 
	
  

 	
  

 	
  

 	
  

 	
 -

 	
 LightLab Imaging Europe
 B.V. (Dutch corporation)

 
	
  

 	
 -

 	
 Sealing Solutions, Inc. –
 Plymouth, Minnesota (Georgia corporation)

 
	
 •

 	
 SJ
 Medical Mexico, S. de R.L. de C.V. – (Mexican corporation)

 

S-13

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 •

 	
 St. Jude Medical Argentina
 S.A. – Buenos Aires, Argentina (Argentinean corporation)

 
	
 •

 	
 Advanced Neuromodulation
 Systems, Inc. – Plano, Texas (Texas Corporation) (dba St. Jude Medical
 Neuromodulation Division)

 
	
  

 	
 -

 	
 Hi-Tronics Designs, Inc. –
 Budd Lake, New Jersey (New Jersey Corporation)

 
	
 •

 	
 SJM International, Inc. –
 St. Paul, Minnesota (Delaware corporation) 

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SJM International, Inc.
 Wholly Owned Legal Entities (Directly and Indirectly):

 
	
 •

 	
 SJM Delaware Holding, LLC –
 St. Paul, Minnesota (Delaware Limited Liability Borrower)

 
	
 •

 	
 St. Jude Medical Bermuda
 GP (Bermuda partnership) (SJM International, Inc. is the majority partner and
 SJM Delaware Holding LLC is the minority partner)

 
	
  

 	
 -

 	
 St. Jude Medical
 Luxembourg Holding S.à r.l. (Luxembourg corporation)

 
	
  

 	
  

 	
 -

 	
 U.S. Branch of St. Jude
 Medical Luxembourg Holding S.à r.l.

 
	
  

 	
  

 	
  

 	
 -

 	
 MediGuide, LLC (Delaware
 limited liability Borrower)

 
	
  

 	
  

 	
  

 	
  

 	
 -

 	
 MediGuide Ltd. (Israeli
 corporation)

 
	
  

 	
  

 	
 -

 	
 St. Jude Medical Nederland
 B.V. (Netherlands corporation) (wholly owned subsidiary of St. Jude Medical
 Luxembourg Holding S.à r.l.)

 
	
  

 	
  

 	
 -

 	
 St. Jude Medical Puerto
 Rico LLC (Puerto Rican corporation) (wholly owned subsidiary of St. Jude
 Medical Luxembourg Holding S.à r.l.)

 
	
  

 	
  

 	
 -

 	
 St. Jude Medical AB
 (Swedish corporation) (wholly owned subsidiary of St. Jude Medical Luxembourg
 Holding S.à r.l.)

 
	
  

 	
  

 	
  

 	
 -

 	
 St. Jude Medical Systems
 AB (formerly Radi Medical Systems AB) (Swedish corporation)

 
	
  

 	
  

 	
  

 	
  

 	
 -

 	
 Radi Medical Systems Ltd.
 (United Kingdom corporation)

 
	
  

 	
  

 	
  

 	
  

 	
 -

 	
 Radi Medical Systems Co.,
 Ltd. (Thai corporation)

 
	
  

 	
  

 	
  

 	
  

 	
 -

 	
 Radi Medical Systems Pte.,
 Ltd. (Singaporean corporation)

 
	
  

 	
  

 	
  

 	
 -

 	
 HB Betakonsult (Swedish
 partnership) (St. Jude Medical AB holds a 99% interest and St. Jude Medical
 Systems AB holds a 1% interest)

 
	
  

 	
  

 	
 -

 	
 SJM Coordination Center
 BVBA (Belgian corporation) (wholly owned subsidiary of St. Jude Medical
 Luxembourg Holding S.à r.l.)

 
	
  

 	
  

 	
  

 	
 -

 	
 Cardio Life Research S.A.
 (Belgian corporation)

 
	
  

 	
  

 	
  

 	
 -

 	
 St. Jude Medical Balkan
 d.o.o. (Serbian corporation)

 
	
  

 	
  

 	
  

 	
 -

 	
 St. Jude Medical Estonia
 OÜ (Estonian corporation)

 
	
  

 	
  

 	
 -

 	
 St. Jude Medical
 Operations (Malaysia) Sdn. Bhd. (Malaysian corporation) (wholly owned
 subsidiary of St. Jude Medical Luxembourg Holding S.à r.l.)

 
	
  

 	
  

 	
 -

 	
 St. Jude Medical Costa
 Rica Limitada (Costa Rica corporation) (wholly owned subsidiary of St. Jude
 Medical Luxembourg Holding S.à r.l.)

 
	
  

 	
  

 	
 -

 	
 St. Jude Medical Holdings
 B.V. (Netherlands corporation) (wholly owned subsidiary of St. Jude Medical
 Luxembourg Holding S.à r.l.)

 
	
  

 	
  

 	
  

 	
 -

 	
 St. Jude Medical Japan
 Co., Ltd. (Japanese corporation) (wholly owned subsidiary of St. Jude Medical
 Holdings B.V.)

 
	
  

 	
  

 	
  

 	
 -

 	
 St. Jude Medical India
 Private Limited (Indian corporation) (wholly owned subsidiary of St. Jude
 Medical Holdings B.V.)

 
	
  

 	
  

 	
  

 	
 -

 	
 St. Jude Medical
 (Singapore) Pte. Ltd. (Singaporean corporation) (wholly owned subsidiary of
 St. Jude Medical Holdings B.V.)

 
	
  

 	
  

 	
  

 	
 -

 	
 St. Jude Medical
 (Malaysia) Sdn Bhd (Malaysian corporation) (wholly owned subsidiary of St.
 Jude Medical Holdings B.V.)

 
	
  

 	
  

 	
  

 	
 -

 	
 St. Jude Medical Taiwan
 Co. (Taiwan corporation) (wholly owned subsidiary of St. Jude Medical
 Holdings B.V.)

 
	
  

 	
  

 	
  

 	
 -

 	
 St. Jude Medical Korea YH
 (Korean corporation) (wholly owned subsidiary of St. Jude Medical Holdings
 B.V.

 

S-14

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 -

 	
 St. Jude Medical (Hong
 Kong) Limited - Central, Hong Kong (Hong Kong corporation)

 

	
  

 	
  

 
	
 •

 	
 St. Jude Medical Sweden AB
 (Swedish corporation)

 
	
 •

 	
 St. Jude Medical Danmark
 A/S (Danish corporation)

 
	
 •

 	
 St.
 Jude Medical (Portugal) - Distribuição de Produtos Médicos, Lda. (Portuguese corporation)

 
	
 •

 	
 St. Jude Medical Export
 Ges.m.b.H. (Austrian corporation)

 
	
 •

 	
 St. Jude Medical
 Medizintechnik Ges.m.b.H. (Austrian corporation)

 
	
 •

 	
 St. Jude Medical Italia
 S.p.A. (Italian corporation)

 
	
 •

 	
 St. Jude Medical Belgium
 (Belgian corporation)

 
	
 •

 	
 St. Jude Medical España
 S.A. (Spanish corporation)

 
	
 •

 	
 St. Jude Medical France
 S.A.S. (French corporation) 

 
	
 •

 	
 St. Jude Medical Finland
 O/y (Finnish corporation)

 
	
 •

 	
 St. Jude Medical Sp.zo.o.
 (Polish corporation)

 
	
 •

 	
 St. Jude Medical GmbH
 (German corporation)

 
	
 •

 	
 St. Jude Medical Kft
 (Hungarian corporation)

 
	
 •

 	
 St. Jude Medical UK Limited
 (United Kingdom corporation)

 
	
 •

 	
 St. Jude Medical (Schweiz)
 AG (Swiss corporation)

 
	
 •

 	
 UAB “St. Jude Medical
 Baltic” (Lithuanian corporation)

 
	
 •

 	
 St. Jude Medical Norway AS
 (Norwegian corporation)

 

Part (b)

The following
sets forth, as of the Closing Date, the Borrower’s equity investments in any
other corporation or entity other than as permitted pursuant to Section
7.04(e):

None

S-15

SCHEDULE 6.06

INSURANCE COVERAGE

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Coverage

 	
  

 	
 Limits

 	
  

 	
 Retention

 	
  

 	
 Insurance Companies

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Commercial
 Property/earthquake

 	
  

 	
 Based on
 valuation

 $3 billion aggregate

 	
  

 	
 Various

 	
  

 	
 FM Global

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 General
 Liability

 	
  

 	
 $ 2 million
 aggregate

 $ 1 million/occurrence

 	
  

 	
 Various

 	
  

 	
 Sentry
 Insurance

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Auto
 Insurance

 	
  

 	
 $ 1 million

 	
  

 	
 $ 1,000

 	
  

 	
 Sentry
 Insurance

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Workers’

 Compensation

 	
  

 	
 Statutory

 	
  

 	
 $ 750,000

 	
  

 	
 Sentry
 Insurance

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Umbrella

 	
  

 	
 $ 30 million

 	
  

 	
 Underlying
 policy

 	
  

 	
 Zurich

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Foreign DIC
 etc.

 	
  

 	
 Various

 	
  

 	
 Various

 	
  

 	
 ACE

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Directors
 & Officers

 	
  

 	
 $ 75 million

 	
  

 	
 $ 10 million
 (Securities claims) $5 million other claims

 	
  

 	
 ACE

 XL

 Chartis

 Axis

 WR Berkley

 Chubb

 XL

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Crime

 	
  

 	
 $10 million

 	
  

 	
 $ 250,000

 	
  

 	
 National
 Union

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Cargo

 	
  

 	
 Various

 	
  

 	
 $ 100,000

 	
  

 	
 Ace INA

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Fiduciary

 	
  

 	
 $ 15 million

 	
  

 	
 $ 100,000

 	
  

 	
 Chubb

 

S-16

SCHEDULE 7.01

EXISTING LIENS

In December
2008, Borrower (through its affiliates) acquired a Swedish-based medical device
company, Radi Medical Systems and all of its subsidiaries, including Radi
Medical Systems Co., Ltd,. a Thailand corporation (“Radi Thailand”). As part of
such transaction, pursuant to the Amended and Restated Option Agreement, dated
as of December 9, 2009 (the “Option Agreement”), among St. Jude Medical AB, St.
Jude Medical (Thailand) Co., Ltd., Radi Medical Systems AB and Engstrom
Holdings Pte. Ltd. (“Engstrom Holdings”), Engstrom Holdings has been granted
the right and option to repurchase the stock of Radi Thailand, currently a
wholly-owned subsidiary of the Borrower, pursuant to the terms of the Option
Agreement. In addition, in connection with the Option Agreement, the stock of
Radi Thailand was placed into an escrow account and Engtrom Holdings was
granted a first priority pledge over the stock held in such escrow account. 

S-17

SCHEDULE 7.04(a)

ST.
JUDE MEDICAL, INC.

GLOBAL INVESTMENT POLICY

Effective
December 2009

	
  

 
	
 PURPOSE

 
	
 This investment
 policy (Policy) describes the objectives of and provides guidelines for
 investment of funds on behalf of St. Jude Medical, Inc. and all of its legal
 entities (Borrower). The Policy also defines the employees authorized to
 engage in investment activity (“Authorized Individuals), authorized
 investment sources (Authorized Brokers/Issuers), authorized investment
 managers (Authorized Managers), and portfolio quality, diversification and
 maturity parameters. Modification of or deviation from the Policy requires
 the approval of the Audit Committee of the Board of Directors of the Borrower
 (Audit Committee), except for changes in Authorized Individuals, Authorized
 Brokers/Issuers, or Authorized Managers, which require the prior written
 approval of the Borrower’s Chief Financial Officer and either the Treasurer
 or Assistant Treasurer.

 

This policy
does not supersede the Borrower’s Banking Resolution. Any banks listed as
Authorized Brokers/Issuers for the purpose of this Policy refer to the
investment or investment brokerage entity or function within that bank or
investment bank, but not to the depository, lending function or organization
which is the subject of the Banking Resolution.

	
  

 	
  

 
	
 Investment Objectives

 
	
 The Borrower
 has three primary investment objectives, in priority order:

 
	
  

 	
  

 
	
 1.

 	
 Preservation
 of principal

 
	
 2.

 	
 Liquidity 

 
	
 3.

 	
 Competitive
 after-tax yield

 
	
  

 	
  

 
	
 Authorized Individuals

 
	
 1.

 	
 Chief
 Executive Officer

 
	
 2.

 	
 Chief
 Operating Officer

 
	
 3.

 	
 Chief
 Financial Officer

 
	
 4.

 	
 Treasurer

 
	
 5.

 	
 Assistant
 Treasurer

 
	
 6.

 	
 Manager of
 Treasury Operations

 
	
 7.

 	
 Sr. Treasury
 Analyst

 
	
 8.

 	
 Other
 designees as approved in writing by the Chief Executive Officer or the Chief
 Financial Officer and either the Treasurer or Assistant Treasurer

 

S-18

	
  

 
	
 Authorized Investments

 
	
 Authorized
 investments, minimum quality characteristics, maximum allowable maturities
 and allowable concentration (percentage of investment portfolio) parameters
 are described in Exhibit A of the Policy. In general, investment activity is
 restricted to investment grade securities, with minimum rating(s) on trade
 date by Standard & Poor’s as outlined in Exhibit A of the Policy, or the
 equivalent rating from Moody’s, or Fitch. Investments must be currency
 neutral, i.e. investments must be made in the reporting currency or the
 currency that is already held by the entity completing the investment.

 
	
  

 
	
 Authorized Brokers/Issuers

 
	
 Authorized
 Individuals are restricted to utilizing brokers, banks and direct issuers of
 commercial paper as described in Exhibit B of the Policy. A current version
 of Exhibit B indicating all additions or deletions from the list of
 Authorized Brokers/Issuers is to be maintained by the Treasurer or Assistant
 Treasurer. A written agreement signed by the Borrower’s Chief Financial
 Officer and Treasurer or Assistant Treasurer is required for each Authorized
 Broker/Issuer prior to executing investment transactions.

 
	
  

 
	
 Authorized Managers

 
	
 Authorized
 Managers are described in Exhibit C of the Policy. Authorized Managers are
 restricted to investments as detailed in Exhibit A of the Policy. Authorized
 Managers are required to utilize broker dealers providing best execution of
 trades, “best execution” being defined as most favorable pricing at lowest
 cost. A written agreement signed by the Borrower’s Chief Financial Officer
 and Treasurer or Assistant Treasurer is required for each Authorized Manager
 prior to executing investment transactions. This written agreement will
 contain an addendum documenting selection of security custodians and
 appropriate performance benchmarks mutually chosen by the Authorized Manager
 and the Borrower.

 

	
  

 	
  

 	
  

 
	
 Responsibility

 
	
 1.

 	
 Audit
 Committee 

 
	
  

 	
 a.

 	
 Annual
 review of investment activity and results

 
	
  

 	
 b.

 	
 Annual
 review of the Borrower’s internally prepared compliance report

 
	
  

 	
  

 	
  

 
	
 2.

 	
 Chief Financial
 Officer

 
	
  

 	
 a.

 	
 Annual
 review of the Policy

 
	
  

 	
 b.

 	
 Overall
 compliance with the Policy

 
	
  

 	
 c.

 	
 Approval of
 any changes in Authorized Individuals or Authorized Brokers/Issuers or
 Authorized Managers

 
	
  

 	
 d.

 	
 Execution of
 agreements with Authorized Brokers/Issuers and Authorized Managers

 
	
  

 	
 e.

 	
 Distribution
 of annual investment and audit reports to the Audit Committee

 
	
  

 	
 f.

 	
 Decision on
 appropriate remedial strategy regarding any investment where that
 investments’ value may be affected because of a negative credit rating change
 subsequent to purchase. 

 
	
  

 	
  

 	
  

 
	
 3.

 	
 Treasurer or
 Assistant Treasurer

 
	
  

 	
 a.

 	
 Direct
 responsibility for compliance with the Policy

 
	
  

 	
 b.

 	
 On at least
 a quarterly basis, review the list of Authorized Brokers/Issuers and
 Authorized Managers and recommend revisions

 

S-19

	
  

 	
  

 	
  

 
	
  

 	
 c.

 	
 Approval of
 any changes in Authorized Individuals or Authorized Brokers/Issuers or
 Authorized Managers (also requires CFO approval)

 
	
  

 	
 d.

 	
 Execution of
 agreements with Authorized Brokers/Issuers or Authorized Managers 

 
	
  

 	
 e.

 	
 Distribution
 of periodic reports to management

 
	
  

 	
 f.

 	
 As soon as
 known by the Treasurer or Assistant Treasurer, report to the Chief Financial
 Officer any negative credit rating change that may affect any existing
 investments’ value. This report shall include viable elections with respect
 to the investment of concern

 
	
  

 	
  

 	
  

 
	
 4.

 	
 Authorized
 Individuals

 
	
  

 	
 a.

 	
 Ongoing
 compliance with the Policy

 
	
  

 	
 b.

 	
 Preparation
 of accurate and timely reports for management and the Audit Committee

 
	
  

 	
 c.

 	
 As soon as
 known by the Individual, report to the Treasurer or Assistant Treasurer any
 negative credit rating change of any existing investment 

 
	
  

 	
  

 	
  

 
	
 5.

 	
 Internal
 Audit Function

 
	
  

 	
 a.

 	
 Preparation
 and distribution of an annual compliance audit for the Audit Committee

 

S-20

	
  

 	
  

 
	
 Reporting Requirements

 
	
 1.

 	
 Annual
 investment report to the Audit Committee

 
	
 2.

 	
 Monthly
 report to Chief Financial Officer, Treasurer and Controller

 
	
 3.

 	
 Annual
 compliance audit report

 
	
 4.

 	
 Other as
 directed by management

 
	
  

 	
  

 
	
 Equity Investments

 
	
 At the
 direction of the Chief Executive Officer of the Borrower, Authorized
 Individuals are permitted to purchase up to $25 million in aggregate of the
 capital stock, or equivalent, in a non-affiliated Borrower. Amounts in excess
 of $25 million in aggregate require approval by the Board of Directors.

 
	
  

 	
  

 
	
 Without
 further approval of the Board of Directors, the Chief Executive Officer may
 direct authorized individuals to sell or otherwise dispose of investments in
 non-affiliated companies.

 
	
  

 	
  

 
	
 Management Savings Plan (MSP) Investments

 
	
 The Borrower
 maintains certain investments such as life insurance contracts and mutual
 funds that serve to hedge the Borrower’s obligations under its MSP. This
 Global Investment Policy is not intended to govern the management of the MSP
 investments.

 
	
  

 	
  

 
	
 Duration

 
	
 This Policy
 is subject to annual review by the Audit Committee.

 

S-21

ST JUDE MEDICAL, INC.

INVESTMENT POLICY

EXHIBIT A 

AUTHORIZED INVESTMENTS

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Instrument

 	
 Minimum

 Rating on

 trade date

 (S&P or

 Equiv.)

 	
 Expected

 Average

 Life

 	
 Maximum

 Exposure Per Issue/Issuer

 On trade date

 
	
  

 	
  

 	
 See Definitions and Clarifications below table

 
	
  

 	
 Bank
 certificates of deposit

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Wells Fargo

 	
 AAA

 	
 90 days

 	
 $100 million or 5% of

 
	
  

 	
 Bank of America

 	
 AA

 	
 90 days

 	
 portfolio

 
	
  

 	
 JP Morgan

 	
 AA

 	
 90 days

 	
 $75 million or 5% of

 
	
  

 	
 Bank of Tokyo Mitsubishi

 	
 A

 	
 90 days

 	
 portfolio

 
	
  

 	
 Svenska Handelsbanken

 	
 AA

 	
 90 days

 	
 $75 million or 5% of

 
	
  

 	
  

 	
  

 	
  

 	
 portfolio

 
	
  

 	
 All other
 banks:

 	
 A

 	
 90 days

 	
 $50 million or 5% of

 
	
  

 	
  

 	
  

 	
  

 	
 portfolio

 
	
  

 	
  

 	
 AA

 	
 90 days

 	
 $75 million or 5% of

 
	
  

 	
  

 	
  

 	
  

 	
 portfolio

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 A rated - $20 million or 5%

 
	
  

 	
  

 	
  

 	
  

 	
 of portfolio

 
	
  

 	
  

 	
  

 	
  

 	
 AA rated $50 million or 5%

 
	
  

 	
  

 	
  

 	
  

 	
 of portfolio

 
	
  

 	
 Yankee
 certificates of

 deposit

 	
 A

 	
 90 days

 	
 A rated - $20 million or 5%

 of portfolio

 
	
  

 	
  

 	
 AA

 	
 90 days

 	
 AA rated - $50 million or

 
	
  

 	
  

 	
  

 	
  

 	
 5% of portfolio

 
	
  

 	
 Bankers’
 acceptances

 	
 A2

 	
 180 days

 	
 $20 million or 5% of

 
	
  

 	
  

 	
  

 	
  

 	
 portfolio

 
	
  

 	
 Commercial
 paper

 	
 A1

 	
 270 days

 	
 $40 million or 5% of

 
	
  

 	
  

 	
  

 	
  

 	
 portfolio

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 A2

 	
 60 days

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 $20 million or 5% of

 
	
  

 	
  

 	
  

 	
  

 	
 portfolio

 
	
  

 	
 Asset backed
 commercial

 paper

 	
 A2

 	
 60days

 	
 $20 million or 5% of

 portfolio

 
	
  

 	
 Asset backed
 securities

 	
 AAA

 	
 1 year

 	
 $20 million or 5% of

 
	
  

 	
  

 	
  

 	
  

 	
 portfolio

 
	
  

 	
 Corporate
 bonds or notes

 	
 AA

 	
 Two years

 	
 $20 million or 5% of

 
	
  

 	
  

 	
  

 	
  

 	
 portfolio

 

S-22

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Money market
 funds

 	
 AAA

 	
 N/A

 	
 $50 million or 5% of

 
	
  

 	
  

 	
  

 	
  

 	
 portfolio

 
	
  

 	
 Liquidity
 vehicles/money

 	
 A1

 	
 90 days

 	
 $20 million or 5% of

 
	
  

 	
 market
 equivalents

 	
  

 	
  

 	
 portfolio

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Municipal
 bonds or notes

 	
 A

 	
 One year

 	
 $20 million or 5% of

 
	
  

 	
  

 	
  

 	
  

 	
 portfolio

 
	
  

 	
 Municipal
 variable rate notes

 	
 SP-2

 	
 14 days

 	
 $20 million or 5% of

 
	
  

 	
  

 	
  

 	
  

 	
 portfolio

 
	
  

 	
 Repurchase
 agreements

 	
 AA

 	
 7 days

 	
 $20 million or 5% of

 
	
  

 	
  

 	
  

 	
  

 	
 portfolio

 
	
  

 	
 U.S.
 government agencies

 	
 N/A

 	
 Three

 	
 N/A

 
	
  

 	
  

 	
  

 	
 years

 	
  

 
	
  

 	
 U.S.
 government obligations

 	
 N/A

 	
 Three

 	
 N/A

 
	
  

 	
  

 	
  

 	
 years

 	
  

 

S-23

Definitions and Clarifications 

For
Investments Managed Internally By St. Jude 

Minimum rating on trade date: 

	
  

 	
  

 	
  

 
	
  

 	
 •

 	
 For Split
 rated securities, the lowest of the ratings is used 

 
	
  

 	
 •

 	
 Repurchase
 agreements must be collateralized by U.S. Government or Agency securities 

 

Expected average
life: 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 •

 	
 Investments
 managed internally shall be governed solely by the Expected Average Life in
 the table above. For securities which have put dates or reset dates the first
 put date or first reset date will be used instead of the final legal maturity
 date. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The
 following criteria will be used for purposes of determining Expected Average
 Life:

 
	
  

 	
  

 	
  

 	
 o

 	
 The next
 reset date will be used for floating rate securities, the put date for
 putable securities, the call date for securities trading on a yield-to-call
 basis, and the average life on securities with periodic principal payments
 prior to maturity such as mortgage backed securities and asset backed securities.

 
	
  

 	
  

 	
  

 	
 o

 	
 The final
 legal maturity date of any single issue cannot exceed 3 years from the date
 of purchase. 

 

Maximum exposure per
issue/issuer on trade date: 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 •

 	
 St. Jude
 investments managed internally shall be governed solely by the $ maximum
 exposure limits per issue/issuer outlined in the table above and:

 
	
  

 	
  

 	
  

 	
 o

 	
 Shall be
 consolidated for all SJM entities

 
	
  

 	
  

 	
  

 	
 o

 	
 Shall be
 consolidated for each issue/issuer

 
	
  

 	
  

 	
  

 	
 o

 	
 Shall
 consist of principal only 

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 •

 	
 To determine
 maximum exposure per issue/issuer for investments denominated in currencies
 other than US$:

 
	
  

 	
  

 	
  

 	
 o

 	
 A spot
 exchange rate shall be obtained from Reuters on the investment trade date

 
	
  

 	
  

 	
  

 	
 o

 	
 A foreign
 currency equivalent maximum shall be calculated using the rate obtained and
 the US$ maximum from the table above 

 

For Investments Managed Externally (by
Authorized Managers): 

	
  

 	
  

 	
  

 
	
  

 	
 •

 	
 Maximum
 exposure limits [for any single issue/issuer] are 5% of the portfolio under
 management 

 

S-24

	
  

 	
  

 	
  

 
	
  

 	
 •

 	
 Investments
 shall be managed such that the final legal maturity of a security is no more
 than 5 years from date of purchase, with an overall average duration of the
 portfolio to be no longer than 18 months 

 
	
  

 	
 •

 	
 Investments
 shall be managed to an overall portfolio quality rating of AA or better 

 
	
  

 	
 •

 	
 No single
 investment shall be rated lower than A- at time of purchase 

 
	
  

 	
 •

 	
 Authorized
 investment instruments are listed in the table Exhibit A. 

 
	
  

 	
 •

 	
 Repurchase
 agreements must be collateralized by U.S. Government or Agency securities. 

 

S-25

ST. JUDE MEDICAL, INC.

INVESTMENT POLICY

EXHIBIT B

AUTHORIZED BROKERS/ISSUERS 

	
  

 	
  

 
	
  

 	
  

 
	
  

 	
 Commercial Banks / Brokers

 
	
  

 	
 Banco Popular

 
	
  

 	
 Bank of America

 
	
  

 	
 JP Morgan

 
	
  

 	
 Wells Fargo

 
	
  

 	
 KBC Bank

 
	
  

 	
 Canadian Imperial Bank of
 Commerce

 
	
  

 	
 Svenska Handelsbanken

 
	
  

 	
 Suntrust

 
	
  

 	
 Northern Trust

 
	
  

 	
 Comerica Bank

 
	
  

 	
 Sumitomo Mitsui

 
	
  

 	
 Royal Bank of Scotland

 
	
  

 	
 TD Banks

 
	
  

 	
 US Bank

 
	
  

 	
 Fifth Third

 
	
  

 	
 Piper Jaffray

 
	
  

 	
 PNC Bank

 
	
  

 	
 Mizuho Corporate Bank

 

S-26

ST. JUDE MEDICAL, INC.

INVESTMENT POLICY

EXHIBIT C

AUTHORIZED MANAGERS

Bank of
America Capital Management, Inc. 

Wells Capital
Management 

Northern Trust
Investments 

S-27

SCHEDULE 7.05 

EXISTING INDEBTEDNESS

None

S-28

SCHEDULE 10.02

ADMINISTRATIVE AGENT’S OFFICE, 

CERTAIN ADDRESSES FOR NOTICES

BORROWER:  

St. Jude Medical, Inc.
One Lillehei Plaza

St. Paul, Minnesota 55117

Attention:         Robert Frenz

Telephone:       651-481-7661

Facsimile:        651-490-4333

Electronic Mail: rfrenz@sjm.com 

U.S. Taxpayer Identification Number: 41-1276891

ADMINISTRATIVE AGENT:

Administrative Agent’s Office
(for payments and Requests for Credit Extensions):

Bank of America, N.A.

101 N. Tryon Street

Mail Code: NC1-001-04-39

Charlotte, NC 28255

Attention:         James Hood

Telephone:       980-386-4308

Telecopier:       704-409-0599

Electronic Mail: james.p.hood @baml.com

Account No.: 1366212250600

Attn: Credit Services

Ref: St. Jude Medical, Inc.

ABA# 026009593

Other Notices as Administrative Agent:

Bank of America, N.A.

Agency Management

1455 Market Street, 5th Floor

Mail Code: CA5-701-05-19

San Francisco, CA 94103

Attention:         Angela Lau

Telephone:       415-436-4000

Telecopier:       415-503-5008

Electronic Mail: angela.lau@baml.com

S-29

with a copy to:

Bank of
America, N.A.

Corporate Debt Products

100 N. Tryon Street

Mail Code: NC1-007-17-11

Charlotte, NC 28255

Attention:         Zubin Shroff

Telephone:       980-387-1340

Telecopier:       704-804-5415

Electronic Mail: zubin.r.shroff @baml.com

L/C ISSUER:

Bank of
America, N.A.

Trade Operations

1000 W. Temple Street

Mail Code: CA9-705-07-05

Los Angeles, CA 90012

Attention:         Stella Rosales

Telephone:        213-481-7828

Telecopier:        213-457-8841

Electronic Mail: stella.rosales @baml.com

S-30

EXHIBIT A

FORM OF LOAN NOTICE

Date: ___________, _____

To:     Bank
of America, N.A., as Administrative Agent

Ladies and
Gentlemen:

          Reference
is made to that certain Multi-Year $1,500,000,000 Credit Agreement, dated as of
December 22, 2010 (as amended,
restated, extended, supplemented or otherwise modified in writing from time to
time, the “Agreement”; the terms defined therein being used herein as
therein defined), among St. Jude
Medical, Inc., a Minnesota corporation (the “Borrower”), the
Lenders from time to time party thereto, and Bank of America, N.A., as
Administrative Agent and L/C Issuer.

          The
undersigned hereby requests (select one):

          o A
Borrowing of Loans     o A conversion or continuation of
Loans

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 1.

 	
 On
 ______________________________ (a Business Day).

 
	
  

 	
  

 	
  

 
	
  

 	
 2.

 	
 In the
 amount of $_______________.

 
	
  

 	
  

 	
  

 
	
  

 	
 3.

 	
 Comprised of
 ________________________________________.

 
	
  

 	
  

 	
 [Type of Loan requested]

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 4.

 	
 For
 Eurodollar Rate Loans: with an Interest Period of __________ months.

 

          The
Borrowing requested herein complies with the proviso to the first sentence of Section
2.01 of the Agreement.

	
  

 	
  

 	
  

 
	
  

 	
  ST. JUDE MEDICAL, INC.

 
	
  

 	
  

 	
  

 
	
  

 	
  By: 

 	
  

 

	
  

 	
  

 	
  

 
	
  

 	
 Name: 

 	
  

 

	
  

 	
  

 	
  

 
	
  

 	
 Title: 

 	
  

 

A-1

Form of Loan Notice

EXHIBIT B

FORM OF NOTE

____________________

          FOR VALUE
RECEIVED, the undersigned (the “Borrower”), hereby promises to pay to
_____________________ or registered assigns (the “Lender”), in
accordance with the provisions of the Agreement (as hereinafter defined), the
principal amount of each Loan from time to time made by the Lender to the
Borrower under that certain Multi-Year $1,500,000,000 Credit Agreement, dated
as of December 22, 2010 (as
amended, restated, extended, supplemented or otherwise modified in writing from
time to time, the “Agreement”; the terms defined therein being used
herein as therein defined), among the Borrower, the Lenders from time to time
party thereto, and Bank of America, N.A., as Administrative Agent and L/C
Issuer.

          The
Borrower promises to pay interest on the unpaid principal amount of each Loan
from the date of such Loan until such principal amount is paid in full, at such
interest rates and at such times as provided in the Agreement. All payments of principal and interest
shall be made to the Administrative Agent for the account of the Lender in
Dollars in immediately available funds at the Administrative Agent’s Office. If
any amount is not paid in full when due hereunder, such unpaid amount shall
bear interest, to be paid upon demand, from the due date thereof until the date
of actual payment (and before as well as after judgment) computed at the per
annum rate set forth in the Agreement.

          This Note
is one of the Notes referred to in the Agreement, is entitled to the benefits
thereof and may be prepaid in whole or in part subject to the terms and
conditions provided therein. Upon the occurrence and continuation of one or
more of the Events of Default specified in the Agreement, all amounts then remaining
unpaid on this Note shall become, or may be declared to be, immediately due and
payable all as provided in the Agreement. Loans made by the Lender shall be
evidenced by one or more loan accounts or records maintained by the Lender in
the ordinary course of business. The Lender may also attach schedules to this
Note and endorse thereon the date, amount and maturity of its Loans and
payments with respect thereto.

          The
Borrower, for itself, its successors and assigns, hereby waives diligence, presentment,
protest and demand and notice of protest, demand, dishonor and non-payment of
this Note.

          THIS NOTE
SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
NEW YORK.

	
  

 	
  

 	
  

 
	
  

 	
  ST. JUDE MEDICAL, INC.

 
	
  

 	
  

 	
  

 
	
  

 	
  By: 

 	
  

 

	
  

 	
  

 	
  

 
	
  

 	
 Name: 

 	
  

 

	
  

 	
  

 	
  

 
	
  

 	
 Title: 

 	
  

 

B-1

Form of Note

LOANS AND PAYMENTS WITH RESPECT THERETO

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Date

 	
  

 	
 Type of 

 Loan Made

 	
  

 	
 Amount of 

 Loan Made

 	
  

 	
 End of 

 Interest 

 Period

 	
  

 	
 Amount of 

 Principal or 

 Interest Paid 

 This Date

 	
  

 	
 Outstanding 

 Principal 

 Balance 

 This Date

 	
  

 	
 Notation 

 Made By

 
	
 ________

 	
  

 	
 __________

 	
  

 	
 __________

 	
  

 	
 __________

 	
  

 	
 __________

 	
  

 	
 __________

 	
  

 	
 ________

 
	
 ________

 	
  

 	
 __________

 	
  

 	
 __________

 	
  

 	
 __________

 	
  

 	
 __________

 	
  

 	
 __________

 	
  

 	
 ________

 
	
 ________

 	
  

 	
 __________

 	
  

 	
 __________

 	
  

 	
 __________

 	
  

 	
 __________

 	
  

 	
 __________

 	
  

 	
 ________

 
	
 ________

 	
  

 	
 __________

 	
  

 	
 __________

 	
  

 	
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B-2

Form of Note

EXHIBIT C 

FORM OF COMPLIANCE CERTIFICATE

Financial Statement Date: __________, _____ 

To:     Bank of
America, N.A., as Administrative Agent 

Ladies and
Gentlemen: 

          Reference is made to that certain Multi-Year $1,500,000,000 Credit
Agreement, dated as of December 22, 2010 (as amended, restated, extended,
supplemented or otherwise modified in writing from time to time, the
“Agreement”; the terms defined therein being used herein as therein defined),
among St. Jude Medical, Inc., a Minnesota corporation (the “Borrower”), the
Lenders from time to time party thereto, and Bank of America, N.A., as
Administrative Agent and L/C Issuer.  

          The
undersigned Responsible Officer hereby certifies as of the date hereof that
he/she is the _____________________________________________ of the Borrower,
and that, as such, he/she is authorized to execute and deliver this Certificate
to the Administrative Agent on the behalf of the Borrower, and that: 

 [Use following paragraph 1 for fiscal
year-end financial statements]  

          1.          Attached
hereto as Schedule 1 are the year-end audited financial statements
required by Section 6.01(a) of the Agreement for the fiscal year of the
Borrower ended as of the above date, together with the report and opinion of an
independent certified public accountant required by such section. 

 [Use following paragraph 1 for fiscal quarter-end financial statements] 

          1.          Attached
hereto as Schedule 1 are the unaudited financial statements required by Section
6.01(b) of the Agreement for the fiscal quarter of the Borrower ended as of
the above date. Such financial statements fairly present the financial
condition, results of operations and cash flows of the Borrower and its
Subsidiaries in accordance with GAAP as at such date and for such period,
subject only to normal year-end audit adjustments and the absence of footnotes.

          2.          The
undersigned has reviewed and is familiar with the terms of the Agreement and
has made, or has caused to be made under his/her supervision, a detailed review
of the transactions and condition (financial or otherwise) of the Borrower
during the accounting period covered by the attached financial statements. 

          3.          A
review of the activities of the Borrower during such fiscal period has been
made under the supervision of the undersigned with a view to determining
whether during such fiscal period the Borrower performed and observed all its
Obligations under the Loan Documents, and 

C-1
Form of Compliance
Certificate

 [select one:]

 [to the best knowledge of the undersigned
during such fiscal period, the Borrower performed and observed each covenant
and condition of the Loan Documents applicable to it.] 

--or-- 

 [the following covenants or conditions have
not been performed or observed and the following is a list of each such Default
and its nature and status:] 

          4.          The
representations and warranties of the Borrower contained in Article V of
the Agreement, but excluding the representation and warranty as to no Material
Adverse Effect contained in Section 5.11(b) of the Agreement, or any
other Loan Document, or which are contained in any document furnished at any
time under or in connection herewith or therewith, are true and correct on and
as of the date hereof, except to the extent that such representations and
warranties specifically refer to an earlier date, in which case they are true
and correct as of such earlier date, and except that for purposes of this
Compliance Certificate, the representations and warranties contained in subsection
(a) of Section 5.11 shall be deemed to refer to the most recent
statements furnished pursuant to clauses (a) and (b),
respectively, of Section 6.01 of the Agreement, including the statements
in connection with which this Compliance Certificate is delivered. 

          5.          The
financial covenant analyses and information set forth on Schedule 2
attached hereto are true and accurate on and as of the date of this
Certificate. 

          IN WITNESS WHEREOF, the undersigned has
executed this Certificate as of _______________, _____. 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 ST. JUDE MEDICAL, INC.

 
	
  

 	
  

 
	
  

 	
 By: 

 	
  

 
	
  

 	
 Name: 

 	
  

 
	
  

 	
 Title: 

 	
  

 
	
  

 	
  

 	
  

 

C-2 
Form of Compliance
Certificate

For the Quarter/Year ended
___________________ (“Statement Date”)

SCHEDULE 2 

to the Compliance Certificate 

($ in 000’s)

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 I.

 	
 Section 7.13 – Consolidated Leverage Ratio.

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 A.

 	
 Consolidated
EBITDA for four consecutive fiscal quarters ending on above date (“Subject
Period”): 

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 1.

 	
 Consolidated
 Net Income for Subject Period:

 	
  

 	
 $

 	
  

 	
  

 
	
  

 	
  

 	
 2.

 	
 Consolidated
 Interest Charges for Subject Period:

 	
  

 	
 $

 	
  

 	
  

 
	
  

 	
  

 	
 3.

 	
 Provision
 for income taxes for Subject Period:

 	
  

 	
 $

 	
  

 	
  

 
	
  

 	
  

 	
 4.

 	
 Depreciation
 expenses for Subject Period:

 	
  

 	
 $

 	
  

 	
  

 
	
  

 	
  

 	
 5.

 	
 Amortization
 expenses for intangibles for Subject Period:

 	
  

 	
 $

 	
  

 	
  

 
	
  

 	
  

 	
 6.

 	
 Non-cash
 expenses reducing Consolidated Net Income for Subject Period:

 	
  

 	
 $

 	
  

 	
  

 
	
  

 	
  

 	
 7.

 	
 Non-cash
 items increasing Consolidated Net Income for Subject Period:

 	
  

 	
 $

 	
  

 	
  

 
	
  

 	
  

 	
 8.

 	
 Consolidated
 EBITDA (Lines I.A.1 + 2 + 3 + 4 + 5 + 6 - 7):

 	
  

 	
 $

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 B.

 	
 Consolidated
 Funded Indebtedness at Statement Date:

 	
  

 	
 $

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 C.

 	
 Consolidated
 Leverage Ratio (Line I.B ÷ Line I.A):

 	
  

 	
  

 	
 _______to 1

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Maximum permitted:

 	
  

 	
  

 	
 3.0 to 1.0

 	
  

 

C-3
Form of Compliance
Certificate

EXHIBIT D 

FORM OF

ASSIGNMENT AND ASSUMPTION AGREEMENT

          This
Assignment and Assumption (this “Assignment and Assumption”) is dated as
of the Effective Date set forth below and is entered into by and between
[the][each]1 Assignor identified in item 1 below ([the][each, an] “Assignor”) and [the][each]2 Assignee identified
in item 2 below ([the][each, an] “Assignee”).
[It is understood and agreed that the rights
and obligations of [the Assignors][the Assignees]3 hereunder are
several and not joint.]4 Capitalized terms used but not
defined herein shall have the meanings given to them in the Credit Agreement
identified below (the “Credit Agreement”), receipt of a copy of which is
hereby acknowledged by the Assignee. The Standard Terms and Conditions set
forth in Annex 1 attached hereto are hereby agreed to and incorporated
herein by reference and made a part of this Assignment and Assumption as if set
forth herein in full. 

          For an
agreed consideration, [the][each]
Assignor hereby irrevocably sells and assigns to [the Assignee][the respective Assignees], and [the][each] Assignee hereby irrevocably
purchases and assumes from [the Assignor][the
respective Assignors], subject to and in accordance with the
Standard Terms and Conditions and the Credit Agreement, as of the Effective
Date inserted by the Administrative Agent as contemplated below (i) all of [the Assignor’s][the respective Assignors’]
rights and obligations in [its capacity as a
Lender][their respective capacities as Lenders] under the Credit
Agreement and any other documents or instruments delivered pursuant thereto to
the extent related to the amount and percentage interest identified below of
all of such outstanding rights and obligations of [the Assignor][the respective Assignors] under the respective
facilities identified below (including, without limitation, the Letters of
Credit included in such facilities) and (ii) to the extent permitted to be
assigned under applicable law, all claims, suits, causes of action and any
other right of [the Assignor (in its capacity
as a Lender)][the respective Assignors (in their respective capacities as
Lenders)] against any Person, whether known or unknown, arising
under or in connection with the Credit Agreement, any other documents or
instruments delivered pursuant thereto or the loan transactions governed
thereby or in any way based on or related to any of the foregoing, including,
but not limited to, contract claims, tort claims, malpractice claims, statutory
claims and all other claims at law or in equity related to the rights and
obligations sold and assigned pursuant to clause (i) above (the rights and
obligations sold and assigned by [the][any]
Assignor to [the][any] Assignee
pursuant to clauses (i) and (ii) above 

	
  

 
	 

 

          1 For bracketed
language here and elsewhere in this form relating to the Assignor(s), if the
assignment is from a single Assignor, choose the first bracketed language. If
the assignment is from multiple Assignors, choose the second bracketed
language. 

          2 For bracketed
language here and elsewhere in this form relating to the Assignee(s), if the
assignment is to a single Assignee, choose the first bracketed language. If the
assignment is to multiple Assignees, choose the second bracketed language. 

          3 Select as
appropriate. 

          4 Include bracketed
language if there are either multiple Assignors or multiple Assignees. 

D-4
Form of Assignment
and Assumption Agreement

being referred to herein collectively as [the][an] “Assigned Interest”). Each such sale and
assignment is without recourse to [the][any]
Assignor and, except as expressly provided in this Assignment and Assumption,
without representation or warranty by [the][any]
Assignor. 

	
  

 	
  

 	
  

 
	
 1.

 	
 Assignor[s]:
 

 	
  

 
	
  

 
	
  

 	
  

 	
  

 
	
  

 
	
 2.

 	
 Assignee[s]:
 

 	
  

 
	
  

 
	
  

 	
  

 	
  

 

	
  

 	
  

 	
  

 
	
  

 	
  [for each Assignee, indicate [Affiliate][Approved Fund] of [identify
 Lender]] 

 
	
  

 	
  

 	
  

 
	
 3.

 	
 Borrower:
 

 	
 St. Jude
 Medical, Inc.

 
	
  

 	
  

 	
  

 
	
 4.

 	
 Administrative
 Agent: Bank of America, N.A., as the administrative
 agent under the Credit Agreement 

 
	
  

 	
  

 
	
 5.

 	
 Credit Agreement: Multi-Year $1,500,000,000
 Credit Agreement, dated as of December 22, 2010, among St. Jude Medical,
 Inc., the Lenders from time to time party thereto, and Bank of America, N.A.,
 as Administrative Agent and L/C Issuer 

 
	
  

 	
  

 
	
 6.

 	
 Assigned
 Interest[s]:
 

 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Assignor[s]5

 	
  

 	
 Assignee[s]6

 	
  

 	
 Aggregate

 Amount of

 Commitment

 for all Lenders7

 	
  

 	
 Amount of

 Commitment

 Assigned

 	
  

 	
 Percentage

 Assigned of

 Commitment8

 	
  

 	
 CUSIP

 Number

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
 $

 	
 ________

 	
  

 	
 $

 	
 ________

 	
  

 	
 ________

 	
 %

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
 $

 	
 ________

 	
  

 	
 $

 	
 ________

 	
  

 	
 ________

 	
 %

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
 $

 	
 ________

 	
  

 	
 $

 	
 ________

 	
  

 	
 ________

 	
 %

 	
  

 	
  

 	
  

 	
  

 

	
  

 	
  

 
	
 [7.

 	
 Trade Date:
 __________________]9 

 

	
  

 
	 

 

          5 List each
Assignor, as appropriate. 

          6 List each
Assignee, as appropriate. 

          7 Amounts in this
column and in the column immediately to the right to be adjusted by the
counterparties to take into account any payments or prepayments made between
the Trade Date and the Effective Date. 

          8 Set forth, to at
least 9 decimals, as a percentage of the Commitment of all Lenders thereunder. 

          9To be completed
if the Assignor and the Assignee intend that the minimum assignment amount is
to be determined as of the Trade Date. 

D-5 
Form of Assignment
and Assumption Agreement

Effective Date: __________________, 20__ [TO BE INSERTED BY
ADMINISTRATIVE AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF
TRANSFER IN THE REGISTER THEREFOR.] 

The terms set forth in this Assignment and Assumption are hereby agreed
to: 

	
  

 	
  

 	
  

 
	
  

 	
 ASSIGNOR

 
	
  

 	
  

 	
  

 
	
  

 	
 [NAME OF
 ASSIGNOR]

 
	
  

 	
  

 	
  

 
	
  

 	
 By: 

 	
  

 
	
  

 	
  

 	
 Title:

 
	
  

 	
  

 	
  

 
	
  

 	
 ASSIGNEE

 
	
  

 	
  

 	
  

 
	
  

 	
 [NAME OF
 ASSIGNEE]

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	
 Title:

 

	
  

 	
  

 	
  

 
	
 [Consented
 to and]10 Accepted:

 	
  

 
	
  

 	
  

 	
  

 
	
 BANK OF AMERICA, N.A., as

 Administrative Agent

 	
  

 
	
  

 	
  

 
	
 By:

 	
  

 	
  

 
	
  

 	
 Title:

 	
  

 
	
  

 	
  

 	
  

 
	
 [Consented
 to:]11

 	
  

 
	
  

 	
  

 	
  

 
	
 By:

 	
  

 	
  

 
	
  

 	
 Title:

 	
  

 

	
  

 
	 

 

          10 To be added only
if the consent of the Administrative Agent is required by the terms of the
Credit Agreement. 

          11 To be added only
if the consent of the Borrower and/or other parties (e.g. L/C Issuer) is
required by the terms of the Credit Agreement. 

D-6

Form of Assignment and Assumption Agreement

ANNEX 1 TO
ASSIGNMENT AND ASSUMPTION

Multi-Year $1,500,000,000 Credit Agreement 

among St. Jude Medical, Inc., 

the Lenders party thereto and 

Bank of America, N.A., as Administrative Agent and L/C Issuer

STANDARD TERMS AND CONDITIONS FOR 

ASSIGNMENT AND ASSUMPTION

                    1.        
Representations and Warranties.

                    1.1.     Assignor.
[The][Each] Assignor (a)
represents and warrants that (i) it is the legal and beneficial owner of [the][[the relevant] Assigned Interest,
(ii) [the][such] Assigned Interest
is free and clear of any lien, encumbrance or other adverse claim and (iii) it
has full power and authority, and has taken all action necessary, to execute
and deliver this Assignment and Assumption and to consummate the transactions
contemplated hereby; and (b) assumes no responsibility with respect to (i) any
statements, warranties or representations made in or in connection with the
Credit Agreement or any other Loan Document, (ii) the execution, legality,
validity, enforceability, genuineness, sufficiency or value of the Loan
Documents or any collateral thereunder, (iii) the financial condition of the
Borrower, any of its Subsidiaries or Affiliates or any other Person obligated
in respect of any Loan Document or (iv) the performance or observance by the
Borrower, any of its Subsidiaries or Affiliates or any other Person of any of
their respective obligations under any Loan Document.

                    1.2.     Assignee.
[The][Each] Assignee (a)
represents and warrants that (i) it has full power and authority, and has taken
all action necessary, to execute and deliver this Assignment and Assumption and
to consummate the transactions contemplated hereby and to become a Lender under
the Credit Agreement, (ii) it meets all the requirements to be an assignee
under Section 10.06(b)(iii) and (v) of the Credit Agreement
(subject to such consents, if any, as may be required under Section
10.06(b)(iii) of the Credit Agreement), (iii) from and after the Effective
Date, it shall be bound by the provisions of the Credit Agreement as a Lender
thereunder and, to the extent of [the][the
relevant] Assigned Interest, shall have the obligations of a Lender
thereunder, (iv) it is sophisticated with respect to decisions to acquire
assets of the type represented by [the][such]
Assigned Interest and either it, or the Person exercising discretion in making
its decision to acquire [the][such]
Assigned Interest, is experienced in acquiring assets of such type, (v) it has
received a copy of the Credit Agreement, and has received or has been accorded
the opportunity to receive copies of the most recent financial statements
delivered pursuant to Section 6.01 thereof, as applicable, and such
other documents and information as it deems appropriate to make its own credit
analysis and decision to enter into this Assignment and Assumption and to
purchase [the][such] Assigned
Interest, (vi) it has, independently and without reliance upon the
Administrative Agent or any other Lender and based on such documents and information
as it has deemed appropriate, made its own credit analysis and decision to
enter into this Assignment and Assumption and to purchase [the][such] Assigned Interest, and (vii) if
it is a Foreign Lender, attached hereto is any documentation required to be
delivered by it pursuant to the terms of the Credit Agreement, duly completed
and

D-7

Form of Assignment and Assumption Agreement

executed by [the][such]
Assignee; and (b) agrees that (i) it will, independently and without reliance
upon the Administrative Agent, [the][any]
Assignor or any other Lender, and based on such documents and information as it
shall deem appropriate at the time, continue to make its own credit decisions
in taking or not taking action under the Loan Documents, and (ii) it will perform
in accordance with their terms all of the obligations which by the terms of the
Loan Documents are required to be performed by it as a Lender.

                    2.     Payments.
From and after the Effective Date, the Administrative Agent shall make all
payments in respect of [the][each]
Assigned Interest (including payments of principal, interest, fees and other
amounts) to [the][the relevant]
Assignor for amounts which have accrued to but excluding the Effective Date and
to [the][the relevant] Assignee
for amounts which have accrued from and after the Effective Date.

                    3.     General
Provisions. This Assignment and Assumption shall be binding upon, and inure
to the benefit of, the parties hereto and their respective successors and
assigns. This Assignment and Assumption may be executed in any number of
counterparts, which together shall constitute one instrument. Delivery of an
executed counterpart of a signature page of this Assignment and Assumption by
telecopy shall be effective as delivery of a manually executed counterpart of
this Assignment and Assumption. This Assignment and Assumption shall be
governed by, and construed in accordance with, the law of the State of New
York.

D-8

Form of Assignment and Assumption Agreement

EXHIBIT E

OPINIONS

See attached..

E-1
Opinions

December 22, 2010

The Lenders Parties to the
Credit Agreement (as defined below)

In care of Bank of America, N.A., 

as Administrative Agent

101 N. Tryon Street

Mail Code: NC1-001-04-39

Charlotte, North Carolina 28255

Ladies and Gentlemen:

          As
General Counsel to St. Jude Medical, Inc., a Minnesota corporation (the “Company”),
I am familiar with the affairs of the Company as they relate to the Multi-Year
$1,500,000,000 Credit Agreement of even date herewith (the “Credit Agreement”)
by and among the Company, Bank of America, N.A., as administrative agent (the “Agent”)
and the lenders party thereto (the “Lenders”). This opinion is being
furnished to you at the request of the Company pursuant to
Section 4.01(a)(v) of the Credit Agreement. All capitalized terms used but
not defined herein have the respective meanings given to such terms in the
Credit Agreement. 

          In
connection with this opinion, I or attorneys on my staff have examined and
relied on originals or copies (certified or otherwise identified to our
satisfaction) of all such documents, records, financial statements and papers
of the Company, and certificates or comparable documents of public officials
and officers, have consulted with such representatives of the Company and have
made such investigations of fact and law as were deemed relevant or necessary
as the basis for the opinions hereinafter expressed, and have examined executed
original copies of the Credit Agreement.

          I
have not independently examined the records of any court or public office in
any jurisdiction, and my opinion is subject to matters that examination of such
records would reveal.

          My
opinions expressed below as to certain factual matters are qualified as being
limited “to the best of my knowledge” or by other words to the same or similar
effect. Such words, as used herein, mean that no contrary information came to
my attention in connection with my representation of the Company. In rendering
such opinions, I have not conducted any independent investigation of the
Company. Finally, no inference as to my knowledge with respect to the factual
matters upon which I have so qualified my opinions should be drawn from the
fact of my representation of the Company.

The Lenders
Parties to the Credit Agreement (as defined below)

In care of Bank of America, N.A., 

as Administrative Agent

December 22, 2010

Page 2

	
  

 	
  

 
	
  

 	
 In rendering the opinions
 expressed below, I have assumed without verification:

 
	
  

 	
  

 
	
  

 	
           (a)     the
 authenticity of all documents submitted as originals;

 
	
  

 	
  

 
	
  

 	
           (b)     the
 genuineness of all signatures (other than the signatures of signatories for
 the Company);

 
	
  

 	
  

 
	
  

 	
           (c)     the
 legal capacity of natural persons executing the Credit Agreement on behalf of
 any party; and

 
	
  

 	
  

 
	
  

 	
           (d)     the
 conformity to originals of all documents submitted to me as copies and the
 authenticity of the originals of such copies.

 

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

	
  

 
	
           1.     The
 Company and its domestic Subsidiaries are corporations duly incorporated,
 validly existing and in good standing under the laws of the jurisdictions of
 their incorporation (except where the failure to be in good standing would
 not have a Material Adverse Effect), and have the power and authority to, and
 have all necessary governmental licenses, authorizations, consents and
 approvals to, own their assets and to carry on their respective businesses as
 currently conducted and as currently proposed to be conducted.

 
	
  

 
	
           2.     The
 Company has the corporate power and authority to execute, deliver and perform
 its obligations under the Credit Agreement and the Notes and to borrow under
 the Credit Agreement. Such execution, delivery and performance and the
 borrowings under the Credit Agreement and the Notes:

 

	
  

 	
  

 
	
  

 	
           (a)     have
 been duly authorized by all requisite corporate action of the Company;

 
	
  

 	
  

 
	
  

 	
           (b)     do
 not violate any provision of the articles or certificate of incorporation or
 bylaws, both as amended to date, of the Company or require approval of its
 shareholders;

 
	
  

 	
  

 
	
  

 	
           (c)     (i) to
 the best of my knowledge will not violate any order of any Governmental
 Authority, (ii) will not violate, result in a breach of or constitute
 (alone or with lapse of time or both) a default under the terms of any
 indenture, agreement, or other material instrument to which the Company is a
 party, or by which it or any of its property is bound, and (iii) will
 not result in the creation or imposition of any Lien upon, or with respect
 to, any of the properties or assets of the Company.

 

The Lenders
Parties to the Credit Agreement (as defined below)

In care of Bank of America, N.A., 

as Administrative Agent

December 22, 2010

Page 3

	
  

 	
  

 
	
  

 	
           3.     The
 Credit Agreement and the Notes have been duly authorized by the Company, and
 the Credit Agreement and the Notes delivered as of the date of this opinion
 have been executed and delivered by the Company.

 
	
  

 	
  

 
	
  

 	
           4.     No
 action, authorization, consent or approval of, registration or filing with,
 or any other action by, any Governmental Authority is required by the Company
 in connection with the execution and delivery of and performance by the
 Company of the Credit Agreement and the Notes and in connection with the loans
 made thereunder.

 
	
  

 	
  

 
	
  

 	
           5.     Neither
 the Company nor any of its Subsidiaries is an “investment company” as defined
 in or subject to regulation under the Investment Company Act of 1940 as
 amended.

 
	
  

 	
  

 
	
  

 	
           6.     To
 the best of my knowledge, there are no actions, suits or proceedings at law
 or in equity or by or before any governmental instrumentality or other agency
 now pending or threatened against or affecting the Company or any property or
 rights of the Company as to which there is a reasonable probability of an
 adverse determination and that, if adversely determined, would individually
 or in the aggregate materially impair the ability of the Company to perform
 its obligations under the terms of the Credit Agreement and the Notes or
 would reasonably be expected to have a Material Adverse Effect.

 

          The
opinions expressed above are limited to the law of the State of Minnesota and
the federal laws of the United States of America.

          This
letter is furnished solely for the benefit of the addressees hereof, and any
participants or assigns thereof permitted under Section 10.06 of the
Credit Agreement, in connection with the transactions referred to in the Credit
Agreement, may not be relied upon by such addressees or by such permitted
participants and assigns for any other purpose, and may not be relied upon or
used by, circulated to, quoted by, or referred to, nor may copies hereof be
delivered to, any other person without my prior written approval; provided,
that a copy may be provided to the extent required by applicable law or
regulation or in accordance with any auditing or oversight function or request
by regulatory authorities to which any addressee or permitted participant or
assignee is subject.

The Lenders
Parties to the Credit Agreement (as defined below)

In care of Bank of America, N.A., 

as Administrative Agent

December 22, 2010

Page 4

	
  

 	
  

 
	
  

 	
 Very truly yours,

 
	
  

 	
 
General Counsel, 

 
	
  

 	
 St. Jude Medical, Inc.

 

December 22, 2010

The Lenders Parties to the
Credit Agreement (as defined below)

In care of Bank of America, N.A., 

as Administrative Agent 

101 N. Tryon Street

Mail Code: NC1-001-04-39

Charlotte, North Carolina 28255

          Re:     Credit
Agreement

Ladies and Gentlemen:

          We
have acted as special counsel to St. Jude Medical, Inc., a Minnesota
corporation (the “Company”), in connection with a Multi-Year
$1,500,000,000 Credit Agreement of even date herewith (the “Credit Agreement”)
by and among the Company, Bank of America, N.A., as administrative agent (the “Agent”),
and the lenders party thereto (the “Lenders”). This opinion is being
furnished to you at the request of the Company pursuant to
Section 4.01(a)(v) of the Credit Agreement. All capitalized terms used but
not defined herein have the respective meanings given to such terms in the
Credit Agreement. 

          In
rendering the opinions expressed below, we have examined originals, or copies
certified or otherwise identified to our satisfaction, of the Credit Agreement
and such other documents and reviewed such questions of law as we have
considered necessary or appropriate. As to various questions of fact relevant
to such opinions we have relied exclusively, without investigation, upon
representations and certificates of officers or employees of the Company and
other appropriate persons. In rendering our opinions set forth below, we have
assumed the authenticity of all documents submitted to us as originals, the
genuineness of all signatures, and the conformity to authentic originals of all
documents submitted to us as copies. We have also assumed the legal capacity
for all purposes relevant hereto of all natural persons and that all parties to
all agreements or instruments relevant hereto (including the Company) are duly
incorporated or organized, validly existing and in good standing under the laws
of their respective states of incorporation. We have also assumed that all such
parties (including the Company) had the requisite power and authority
(corporate or otherwise) to execute, deliver and perform the Credit Agreement
and all other agreements or instruments relevant hereto, and that all such
agreements or instruments have been duly authorized by all requisite action
(corporate or otherwise) and duly executed and delivered by the parties
thereto. We have also assumed that the Credit Agreement and all other
agreements or instruments relevant hereto are the valid, binding and
enforceable obligations of all parties thereto other than the Company. We have
also assumed that (i) the Company is engaged in the business of manufacture
and sale of medical devices, (ii) the Agent and the Lenders will be
entering into the Credit Agreement in the ordinary

The Lenders
Parties to the Credit Agreement

In care of Bank of America, N.A., 

as Administrative Agent 

December 22, 2010

Page 2

course of business, and
(iii) all authorizations, approvals and consents of, and all filings and
registrations with, any Governmental Authority (other than the State of
New York) required on the part of the Company for the execution, delivery
or performance by it of the Credit Agreement and the Notes have been duly
obtained, made or effected, as the case may be, by or on behalf of it.

          Based
upon and subject to the foregoing and subject to the exceptions and
qualifications set forth below, we are of the opinion that:

	
  

 	
  

 
	
  

 	
           1.     The
 Credit Agreement constitutes and, upon execution and delivery of a Note upon
 the request therefor by a Lender, such Note will constitute, the valid and
 binding obligation of the Company, enforceable against the Company in
 accordance with its terms thereof.

 
	
  

 	
  

 
	
  

 	
           2.     No
 authorization, approval or consent of, and no filing or registration with,
 any governmental or regulatory authority or agency of the State of
 New York is required on the part of the Company for the execution,
 delivery or performance by it of the Credit Agreement and the Notes.

 
	
  

 	
  

 
	
  

 	
           3.     The
 execution, delivery and performance by the Company of the Credit Agreement do
 not, and of the Notes will not, violate any applicable statute, rule or regulation
 of the State of New York.

 
	
  

 	
  

 
	
  

 	
           4.     The
 execution and delivery of the Credit Agreement and the borrowing and
 repayment of debt pursuant to the Credit Agreement will not violate or cause
 a breach of Regulation U of the Board of Governors of the Federal Reserve
 System.

 
	
  

 	
  

 
	
  

 	
 The
 opinions set forth above are subject to the following qualifications and
 exceptions:

 
	
  

 	
  

 
	
  

 	
           (a)     Our
 opinion in paragraph 1 above is subject to the effect of applicable
 bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer or
 similar laws of general application affecting creditors’ or secured
 creditors’ rights, and to the effect of general principles of equity,
 including, without limitation, concepts of materiality, diligence,
 reasonableness, good faith and fair dealing, election of remedies, estoppel
 and other similar doctrines affecting the enforceability of agreements
 generally in any proceeding in equity or at law.

 

The Lenders
Parties to the Credit Agreement

In care of Bank of America, N.A., 

as Administrative Agent 

December 22, 2010

Page 3

	
  

 	
  

 
	
  

 	
           (b)     The
 enforceability of provisions in the Credit Agreement and the Notes to the
 effect that terms may not be waived or modified except in writing may be
 limited under certain circumstances.

 
	
  

 	
  

 
	
  

 	
           (c)     The
 availability of specific performance, injunctive relief and other equitable
 remedies is subject to the discretion of the tribunal before which any
 proceeding therefor may be brought.

 
	
  

 	
  

 
	
  

 	
           (d)     We
 express no opinion as to the enforceability of provisions of the Credit
 Agreement or the Notes (i) to the extent they contain cumulative
 remedies to the extent such cumulative remedies purport to compensate, or
 would have the effect of compensating, the party entitled to the benefits
 thereof in an amount in excess of the actual loss suffered by such party,
 (ii) to the extent they contain obligations of the Company to pay any
 prepayment premium, default interest rate or early termination fee, if the
 payment of such premium, interest rate or fee may be construed as
 unreasonable in relation to actual damages or disproportionate to actual
 damages suffered by the Lenders as a result of such prepayment, default or
 termination, or (iii) purporting to establish evidentiary standards.

 
	
  

 	
  

 
	
  

 	
           (e)     We
 express no opinion as to the enforceability of any provision contained in the
 Credit Agreement or the Notes allowing any loan participant to set off and
 apply the Company’s deposits with such participant against the Company’s
 Obligations.

 
	
  

 	
  

 
	
  

 	
           (f)     We
 express no opinion as to the enforceability of provisions of the Credit
 Agreement or the Notes to the extent they contain waivers by the Company of
 any constitutional rights or remedies (other than waivers of right to trial
 by jury).

 
	
  

 	
  

 
	
  

 	
           (g)     We
 express no opinion as to the enforceability of provisions of the Credit
 Agreement or the Notes to the extent they contain (i) choice of law or forum
 selection provisions, (ii) grants of powers of attorney, or (iii) terms
 purporting to establish evidentiary standards.

 
	
  

 	
  

 
	
  

 	
           (h)     We
 express no opinion as to compliance or the effect of noncompliance by the
 Agent and the Lenders with any state or federal laws or regulations
 applicable to any of them in connection with the transactions described in
 the Credit Agreement.

 

The Lenders Parties to the
Credit Agreement

In care of Bank of America, N.A., 

as Administrative Agent 

December 22, 2010

Page 4

	
  

 	
  

 
	
  

 	
           (i)     Notwithstanding
 certain language of the Credit Agreement, the Agent and the Lenders may be
 limited to recovery of only reasonable expenses or attorney fees and legal
 expenses with respect to the enforcement of the Credit Agreement.

 
	
  

 	
  

 
	
  

 	
           (j)     We
 express no opinion with respect to the effect of the federal securities laws
 and regulations administered by the Securities and Exchange Commission, or
 state “Blue Sky” laws and regulations, on the enforceability of the Credit
 Agreement.

 
	
  

 	
  

 
	
  

 	
           (k)     Our
 opinion in paragraph 1 above, insofar as it relates to the
 enforceability of indemnification provisions set forth in the Credit
 Agreement or the Notes, is subject to the effect of federal and state
 securities laws and public policy relating thereto. 

 
	
  

 	
  

 
	
  

 	
           (l)     We
 express no opinion with respect to the enforceability of any provision of the
 Credit Agreement or the Notes that purports to excuse the Agent or any Lender
 from liability for, or require the Company to indemnify the Agent or any
 Lender against any liability arising out of, the gross negligence or willful
 misconduct of the Agent or any Lender.

 
	
  

 	
  

 
	
  

 	
           (m)     In
 rendering our opinion in paragraph 2 above, we do not express any opinion
 with respect to any authorization, approval, consent, filing or registration
 with any governmental or regulatory authority or agency required generally in
 connection with the business or operations of the Company.

 

          The
foregoing opinions are limited to matters involving the laws of the State of
New York and, as to our opinions in paragraph 4, the federal laws of the
United States of America. We express no opinion as to any matter other than as
expressly set forth above, and no other opinion may be implied or interpreted
herefrom. Our opinions are rendered only with respect to such laws that are
currently in effect, and we disclaim any obligation to advise you of any change
in law or fact that occurs after the date hereof.

          This
letter is furnished by us solely for the benefit of the addressees hereof and
any participants or assigns thereof permitted under Section 10.06 of the
Credit Agreement, in connection with the transactions referred to in the Credit
Agreement, and may not be relied upon by such addressees or by such permitted
participants and assigns for any other purpose; such permitted reliance shall
not, however, imply or establish an attorney-client relationship between such
relying party and this firm with respect to the Credit Agreement or any Note or
the transactions contemplated therein, and such relying party, by relying on
our opinion, disclaims any such attorney-client relationship with respect to
the Credit Agreement or any Note or the

The Lenders Parties to the
Credit Agreement

In care of Bank of America, N.A., 

as Administrative Agent 

December 22, 2010

Page 5

transactions contemplated
therein. This opinion letter may not be relied upon or used by, circulated to,
quoted by, or referred to, nor may copies hereof be delivered to, any other
person without our prior written approval; provided, that a copy may be
provided to the extent required by applicable law or regulation or in accordance
with any auditing or oversight function or request by regulatory authorities to
which any addressee or permitted participant or assignee is subject.

	
  

 	
  

 
	
  

 	
 Very truly yours,

 

MKP/SK

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