Document:

EXHIBIT 10.20

 

 

July 20, 2006

 

Darrel Posegate

Executive Vice President/Chief Financial Officer

HF Financial Corp.

P.O. Box 5000

Sioux Falls, SD  57117 – 5000

 

Dear Darrel:

 

I am pleased to announce
that First Tennessee Bank National Association has reaffirmed HF Financial
Corporation’s existing Revolving Line of Credit with First Tennessee Bank in
the amount of Six Million Dollars ($6,000,000.00). HFC may
use advances under this line of credit for: 
i) capital infusion to its subsidiaries to support growth and/or bank or
branch acquisitions, ii) acquisition of bank holding companies, and iii) other
liquidity needs. At or near maturity, FTB will review the line of credit for
the possibility of another one-year extension.

 

The interest on the outstanding balance will be payable quarterly at a
variable rate per annum on the outstanding balance. The variable rate of
interest shall be 1⁄4% discount to First Tennessee’s Base Rate, which is
currently 8.25%. Thus, your borrowing rate today would equal 8.00%. The maturity date of this commitment is May 29, 2007. This
indebtedness shall be governed by the original covenants and conditions set
forth in the commitment letter dated June 3, 2003.

 

Additionally, this letter confirms the renewal of Home Federal Bank’s
Fed Funds accommodation in the amount of Fifteen Million Dollars
($15,000,000.00). This accommodation will
cover the period from June 30, 2006 to June 30, 2007 and is subject to the
following:

 

•                  In accordance with First Tennessee Policy, this is not a confirmed line
and is subject to cancellation at any time. Reasons for cancellation include,
but are not limited to changes in the financial condition, in the senior
management or the liquidity position of Home Federal Bank or the funding mix of
First Tennessee Bank.

 

•                  Requests for
borrowing over the pre-approved limit will be considered on a case-to-case
basis. Fed Funds purchases need not be renewed on a daily basis. Continuous
borrowings in excess of fourteen (14) days must be secured in full by U. S.
Government or Agency Securities.

 

•                  Requests to
borrow Fed Funds can be made by calling the Financial Institutions Division at
1-800-934-8937 Extension 7981. The cutoff time for borrowing Fed Funds is 3:00
P.M. (CST).

 

Darrel, it is a pleasure of First Tennessee Bank to provide these
commitments/accommodations to your institution and look forward to servicing
the financial needs of the company in the future. Please do not hesitate to
call if you have any questions or concerns.

 

Sincerely,

 

	
  /s/ David House

  	
   

  
	
   

  
	
  David House

  
	
  Vice President

  
	
  Correspondent ServicesExhibit
10.1

priceline.com Incorporated

0.50%
Convertible Senior Notes due 2011

0.75% Convertible Senior Notes due 2013

 

 

Purchase
Agreement

September 21, 2006

Goldman, Sachs & Co.,

As
representative of the several Purchasers

named in Schedule I hereto,

c/o
Goldman, Sachs & Co.

85 Broad Street,

New York, New York 10004.

Ladies and Gentlemen:

Priceline.com Incorporated, a Delaware corporation (the “Company”),
proposes, subject to the terms and conditions stated herein, to issue and sell
to the Purchasers named in Schedule I hereto (the “Purchasers”) an aggregate of
$150,000,000 principal amount of its 0.50% Convertible Senior Notes due
September 30, 2011 (“2011 Notes”) and an aggregate of $150,000,000 principal
amount of its 0.75% Convertible Senior Notes due September 30, 2013 (“2013
Notes” and, together with the 2011 Notes, the “Firm Securities”), convertible
into shares of the Company’s common stock, par value $0.008 per share (“Stock”),
and, at the election of the Purchasers, up to an aggregate of $22,500,000
additional principal amount of the 2011 Notes (“Optional 2011 Notes”) and up to
an aggregate of $22,500,000 additional principal amount of the 2013 Notes (“Optional
2013 Notes” and, together with the Optional 2011 Notes, the “Optional
Securities”) (the Firm Securities and the Optional Securities which the
Purchasers elect to purchase pursuant to Section 2 hereof are herein
collectively called the “Securities”).

1.         The Company represents and warrants to,
and agrees with each of the Purchasers that:

(a)       A preliminary
offering circular, dated September 21, 2006 (the “Preliminary Offering
Circular”), and an offering
circular, dated September 21, 2006 (the “Offering Circular”), have been
prepared in connection with the offering of the Securities and shares of the Stock issuable upon conversion thereof.  The Preliminary Offering Circular, as amended
and supplemented immediately prior to the Applicable Time (as defined in
Section 1(b)), is hereinafter referred to as the “Pricing Circular”.  Any reference to the Preliminary Offering Circular, the Pricing
Circular or the Offering Circular shall be deemed to refer to and
include

 

the Company’s most recent Annual Report on Form 10-K
and all subsequent documents filed with the United States Securities and
Exchange Commission (the “Commission”) pursuant to Section 13(a), 13(c) or
15(d) of the United States Securities Exchange Act of 1934, as amended (the “Exchange
Act”) on or prior to the date of such circular, and any reference to the
Preliminary Offering Circular or the Offering Circular, as the case may be, as
amended or supplemented, as of any specified date, shall be deemed to include
(i) any documents filed with the Commission pursuant to Section 13(a), 13(c) or
15(d) of the Exchange Act after the date of the Preliminary Offering Circular
or the Offering Circular, as the case may be, and prior to such specified date
and (ii) any Additional Issuer
Information (as defined in Section 5(f)) furnished by the Company prior to the
completion of the distribution of the Securities; and all documents filed under the Exchange Act and so deemed to be
included in the Preliminary Offering Circular, the Pricing Circular or the
Offering Circular, as the case may be, or any amendment or supplement thereto
are hereinafter called the “Exchange Act Reports.”  The Exchange Act Reports, when they were or
are filed with the Commission, conformed or will conform in all material
respects to the applicable requirements of the Exchange Act and the applicable
rules and regulations of the Commission thereunder; and no such documents were
filed with the Commission since the Commission’s close of business on the
business day immediately prior to the date of this Agreement and prior to the
execution of this Agreement, except as set forth on Schedule II-A(a) hereof.
The Preliminary Offering Circular or
the Offering Circular and any amendments or supplements thereto and the Exchange Act Reports did not and will not, as of their respective dates, contain
an untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading; provided,
however, that this representation and
warranty shall not apply to any statements or omissions made in reliance upon
and in conformity with information furnished in writing to the Company by a
Purchaser through Goldman, Sachs & Co. expressly for use therein;

(b)       For the purposes of this Agreement, the “Applicable
Time” is 4:15 p.m. (Eastern time) on the date of this Agreement; the Pricing
Circular as supplemented by the information set forth in Schedule V hereto,
taken together (collectively, the “Pricing Disclosure Package”) as of the
Applicable Time, did not include any untrue statement of a material fact or
omit to state any material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not
misleading; and each Company Supplemental Disclosure Document (as defined in
Section 6(a)(ii)) listed on Schedule II-A(b) hereto does not conflict with
the information contained in the Pricing Circular or the Offering Circular and
each such Company Supplemental Disclosure Document, as supplemented by and
taken together with the Pricing Disclosure Package as of the Applicable Time,
did not include any untrue statement of a material fact or omit to state any
material fact necessary in order to make the statements therein, in the light
of the circumstances under which they were made, not misleading; provided,
however, that this representation and warranty shall not apply to statements or
omissions made in a Company Supplemental Disclosure Document in reliance upon
and in conformity with information furnished in writing to the Company by a
Purchaser through Goldman, Sachs & Co. expressly for use therein;

(c)       Neither the Company nor any of its
subsidiaries has sustained since the date of the latest audited financial
statements included in the Pricing Circular any material loss or interference
with its business from fire, explosion, flood or other calamity, whether or not
covered by insurance, or from any labor dispute or court or governmental
action, order or decree, otherwise than as set forth or contemplated in the
Pricing Circular; and, since the

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respective
dates as of which information is given in the Pricing Circular, there has not
been any change in the capital stock (except for changes or adjustments made in
the ordinary course of business pursuant to employee equity plans in existence
on the date of this Agreement, and other than the exercise of options
outstanding on the date of this Agreement) or long-term debt of the Company or
any of its subsidiaries or any material adverse change, or any development
involving a prospective material adverse change, in or affecting the general
affairs, management, financial position, stockholders’ equity or results of operations of the Company and
its subsidiaries, taken as a whole, otherwise than as set forth or contemplated
in the Pricing Circular;

(d)       The Company and its subsidiaries have
good and marketable title in fee simple to all real property and good and
marketable title to all personal property owned by them, in each case free and
clear of all liens, encumbrances and defects except such as are described in
the Pricing Circular or such as do not materially affect the value of such
property and do not interfere with the use made and proposed to be made of such
property by the Company and its subsidiaries; and any real property and
buildings held under lease by the Company and its subsidiaries are held by them
under valid, subsisting and enforceable leases with such exceptions as are not
material and do not interfere with the use made and proposed to be made of such
property and buildings by the Company and its subsidiaries;

(e)       The Company has been duly incorporated
and is validly existing as a corporation in good standing under the laws of the
State of Delaware, with power and authority (corporate and other) to own its
properties and conduct its business as described in the Pricing Circular, and
has been duly qualified as a foreign corporation for the transaction of
business and is in good standing under the laws of each other jurisdiction in
which it owns or leases properties or conducts any business so as to require
such qualification, or is subject to no material liability or disability by
reason of the failure to be so qualified in any such jurisdiction; and each
subsidiary of the Company has been duly incorporated and is validly existing as
an entity, and where such concept applies, in good standing under the laws of
its jurisdiction of organization;

(f)        The Company has an authorized
capitalization as set forth in the Pricing Circular, and all of the issued
shares of capital stock of the Company have been duly and validly authorized
and issued and are fully paid and non-assessable; the shares of Stock initially issuable upon conversion of the Securities
have been duly and validly authorized and reserved for issuance and, when
issued and delivered in accordance with the provisions of the Securities and
the Indenture referred to below, will be duly and validly issued, fully paid
and non-assessable and will conform to the description of the Stock
contained in the Pricing Disclosure Package and the Offering Circular;
and all of the issued shares of capital stock of each subsidiary of the Company
have been duly and validly authorized and issued, are fully paid and non-assessable
and (except for directors’ qualifying shares) are owned directly or indirectly
by the Company, free and clear of all liens, encumbrances, equities or claims;

(g)       The Securities have been duly authorized
and, when issued and delivered pursuant to this Agreement, will have been duly
executed, authenticated, issued and delivered and will constitute valid and
legally binding obligations of the Company entitled to the benefits provided by
the indenture to be dated as of
September 27, 2006 (the “Indenture”)
between the Company and American Stock Transfer and Trust Company, as Trustee (the “Trustee”), under which they are to be issued; the Indenture, which will be substantially in the
form previously delivered to you, has been duly authorized and, when
executed and delivered by the Company and the Trustee, the Indenture
will constitute a valid and legally binding instrument,

 3
 

 

enforceable
in accordance with its terms, subject, as to enforcement, to bankruptcy,
insolvency, reorganization and other laws of general applicability relating to
or affecting creditors’ rights and to general equity principles; and the
Securities and the Indenture
will conform to the descriptions thereof in the Pricing Disclosure Package and
the Offering Circular and will be in substantially the form previously
delivered to you;

(h)       The Registration Rights Agreement to be
dated as of September 27, 2006, between the Company and the Purchasers (the “Registration
Rights Agreement”), which will be substantially in the form previously
delivered to you, has been duly authorized by the Company and, and as of the
Time of Delivery (as defined herein) will have been duly executed and delivered
by the Company, and will constitute a valid and legally binding instrument
enforceable in accordance with its terms, subject, as to enforcement, to
bankruptcy, insolvency, reorganization and other laws of general applicability
relating to or affecting creditors’ rights and to general equity principles,
except as rights to indemnification, contribution or exculpation thereunder may
not be enforceable; and the Registration Rights Agreement will conform in all
material respects to the descriptions thereof in the Pricing Disclosure Package
and the Offering Circular;

(i)        None of the transactions contemplated by
this Agreement (including, without limitation, the use of the proceeds from the
sale of the Securities) will violate or result in a violation of Section 7 of
the Exchange Act, or any regulation promulgated thereunder, including, without
limitation, Regulations T, U, and X of the Board of Governors of the Federal
Reserve System;

(j)        Prior to the date hereof, neither the
Company nor any of its affiliates has taken any action which is designed to or
which has constituted or which might have been expected to cause or result in
stabilization or manipulation of the price of any security of the Company in
connection with the offering of the Securities;

(k)       The issue and sale of the Securities, the issuance of the
Stock upon conversion of the Securities and the compliance by the Company with
all of the provisions of the Securities, the Indenture, the Registration Rights Agreement and this Agreement
and the consummation of the transactions herein and therein contemplated will
not conflict with or result in a breach or violation of any of the terms or
provisions of, or constitute a default under, any indenture, mortgage, deed of
trust, loan agreement or other agreement or instrument to which the Company or
any of its subsidiaries is a party or by which the Company or any of its
subsidiaries is bound or to which any of the property or assets of the Company
or any of its subsidiaries is subject, nor will such action result in any
violation of the provisions of the Amended and Restated Certificate of
Incorporation, as amended, or By-laws of the Company,  or any statute or any order, rule or
regulation of any court or governmental agency or body having jurisdiction over
the Company or any of its subsidiaries or any of their properties; and no
consent, approval, authorization, order, registration or qualification of or
with any such court or governmental agency or body is required for the issue
and sale of the Securities, the issue of the Stock upon conversion of the
Securities or the consummation by the Company of the transactions contemplated
by this Agreement, the Indenture or the
Registration Rights Agreement except for (1) the filing of a registration statement by the Company with the
Commission pursuant to the United States Securities Act of 1933, as amended
(the “Act”), pursuant to the Registration Rights Agreement and (2) such
consents, approvals, authorizations, registrations or qualifications as may be
required under state securities or Blue Sky laws in connection with the
purchase and distribution of the Securities by the Purchasers;

 4
 

 

(l)        Neither the Company nor any of its subsidiaries is in
violation of its Certificate of Incorporation or By-laws or in default in the
performance or observance of any material obligation, covenant or condition
contained in any indenture, mortgage, deed of trust, loan agreement, lease or
other agreement or instrument to which it is a party or by which it or any of
its properties may be bound;

(m)      The statements set forth in the Pricing Circular and the
Offering Circular under the caption “Description
of Notes” and “Description of Capital Stock,” insofar
as they purport to constitute a summary of the terms of the Securities and the Stock issuable upon conversion of the
Securities, under the caption “Certain United States Federal Income Tax
Considerations,” and under the caption “Underwriting,” insofar as they purport to describe the provisions
of the laws and documents referred to therein, are accurate, complete and fair;

(n)       Other than as set forth in the Pricing Circular, there are no
legal or governmental proceedings pending to which the Company or any of its
subsidiaries is a party or of which any property of the Company or any of its
subsidiaries is the subject which, if determined adversely to the Company or
any of its subsidiaries, would individually or in the aggregate have a material
adverse effect on the current or future financial position, stockholders’ equity or results of
operations of the Company and its subsidiaries, taken as a whole; and, to the
best of the Company’s knowledge, no such proceedings are threatened or
contemplated by governmental authorities or threatened by others;

(o)       When the Securities are issued and delivered pursuant to this
Agreement, the Securities will not be of
the same class (within the meaning of Rule 144A under the Act) as securities which are listed on
a national securities exchange registered under Section 6 of the Exchange Act
or quoted in a U.S. automated inter-dealer quotation system;

(p)       The Company is subject to Section 13 or 15(d) of the
Exchange Act; and has filed all the material required to be filed
pursuant to Section 13, 14 or 15(d) for a period of at least 36 months
immediately preceding the date hereof and has filed in a timely manner all
reports required to be filed during the 12 calendar months and any portion of a
month immediately preceding the date hereof;

(q)       The Company is not, and after giving effect to the offering
and sale of the Securities and the application of the proceeds thereof, will
not be an “investment company,” as such term is defined in the United States
Investment Company Act of 1940, as amended (the “Investment Company Act”);

(r)        Neither the Company, nor any person acting on its or their
behalf has offered or sold the Securities by means of any general solicitation
or general advertising within the meaning of Rule 502(c) under the Act;

(s)       Within the preceding six months, neither the Company nor any
other person acting on behalf of the Company has offered or sold to any person
any Securities, or any securities of the same or a similar class as the
Securities, other than Securities offered or
sold to the Purchasers hereunder.  The
Company will take reasonable precautions designed to insure that any offer or
sale, direct or indirect, in the United States or to any U.S. person (as
defined in Rule 902 under the Act) of any Securities or any substantially
similar security issued by the Company, within six months subsequent to the
date on which the distribution of the Securities has been completed (as
notified to the Company by Goldman, Sachs & Co.), is made under
restrictions and other circumstances reasonably designed not to affect the
status of the offer

 5
 

 

and
sale of the Securities in the United States and to U.S. persons contemplated by
this Agreement as transactions exempt from the registration provisions of the
Securities Act;

(t)        This Agreement has been duly authorized,
executed and delivered by the Company;

(u)       Deloitte
& Touche LLP, who have certified certain financial statements of the
Company and its subsidiaries, and have audited the Company’s internal control
over financial reporting and management’s assessment thereof is an independent
registered public accounting firm as required by the Act and the rules and
regulations of the Commission thereunder;

(v)       The Company maintains a system of
internal control over financial reporting (as such term is defined in Rule 13a-15(f)
under the Exchange Act) that complies with the requirements of the Exchange Act
and has been designed by the Company’s principal executive officer and
principal financial officer, or under their supervision, to provide reasonable
assurance regarding the reliability of financial reporting and the preparation
of financial statements for external purposes in accordance with generally
accepted accounting principles.  The
Company’s internal control over financial reporting was effective as of a
December 31, 2005 evaluation thereof. 
The Company is not aware of any material weaknesses in its internal
control over financial reporting;

(w)      Other than as set forth in the Pricing
Circular, since the date of the latest audited financial statements included or
incorporated by reference in the Pricing Circular, there has been no change in
the Company’s internal control over financial reporting that has materially
affected, or is reasonably likely to materially affect, the Company’s internal
control over financial reporting;

(x)        The Company maintains disclosure
controls and procedures (as such term is defined in Rule 13a-15(e) of the
Exchange Act) that comply with the requirements of the Exchange Act; such
disclosure controls and procedures have been designed to ensure that material
information relating to the Company and its subsidiaries is made known to the
Company’s principal executive officer and principal financial officer by others
within those entities; such disclosure controls and procedures are effective;

(y)  Neither the Company nor any of
its consolidated or unconsolidated subsidiaries have, since December 31, 2005:
(i) failed  to pay any dividend or
sinking fund installment on preferred stock; or (ii) defaulted on either any
installment or installments on indebtedness for borrowed money or on any rental
on one or more long term leases, which defaults in the aggregate are material
to the financial position of the Company and its consolidated and
unconsolidated subsidiaries, taken as a whole; and

(z)  The information included in the Company’s
press release dated September 21, 2006 and entitled “Priceline.com Increases 3rd Quarter 2006 Guidance; Establishes 4th Quarter 2006 and 2007 EPS Targets” has been
prepared by the Company’s management in good faith based upon reasonable
assumptions.

2.             Subject to the terms and conditions
herein set forth, (a) the Company agrees to issue and sell to each of the
Purchasers, and each of the Purchasers agrees, severally and not jointly, to
purchase from the Company, at a purchase price of 97.5% of the principal amount
thereof, the principal amount of Securities set forth opposite the name of such
Purchaser in Schedule I hereto, and (b) in the event and to the extent that the
Purchasers shall exercise the election to purchase

 6

 

Optional
Securities as provided below, the Company agrees to issue and sell to each of
the Purchasers, and each of the Purchasers agrees, severally and not jointly,
to purchase from the Company, at the same purchase price set forth in clause
(a) of this Section 2, that portion of the aggregate principal amount of the
applicable series of Optional Securities as to which such election shall have
been exercised (to be adjusted by you so as to eliminate fractions of $1,000)
determined by multiplying such aggregate principal amount of the applicable
series of Optional Securities by a fraction, the numerator of which is the
maximum aggregate principal amount of the applicable series of Optional
Securities which such Purchaser is entitled to purchase as set forth opposite
the name of such Purchaser in Schedule I hereto and the denominator of which is
the maximum aggregate principal amount of the applicable series of Optional
Securities which all of the Purchasers are entitled to purchase hereunder.

The Company hereby
grants to the Purchasers the right to purchase at their election up to
$22,500,000 aggregate principal amount of the Optional 2011 Notes and up to
$22,500,000 aggregate principal amount of the Optional 2013 Notes, at the
purchase price set forth in clause (a) of the first paragraph of this Section
2, for the sole purpose of covering sales of securities in excess of the
aggregate principal amount of Firm Securities. 
Any such election to purchase Optional Securities may be exercised by
written notice from you to the Company, given within a period of 30 calendar
days after the date of this Agreement, setting forth the series and aggregate
principal amount of Optional Securities to be purchased and the date on which
such Optional Securities are to be delivered, as determined by you but in no
event earlier than the First Time of Delivery (as defined in Section (4)
hereof) or, unless you and the Company otherwise agree in writing, earlier than
three or later than ten New York Business Days after the date of such notice; provided, however, that Optional
Securities may not be issued in whole or in part after the period which ends 13
days after the date hereof unless the Purchaser determines that such Optional
Securities would not be treated as having been issued with more than a “de
minimis” amount of “original issue discount” for purposes of Sections 1271-1275
of the Internal Revenue Code of 1986, as amended from time to time, and the
applicable Treasury regulations promulgated thereunder.  As used in this Agreement, “New York Business
Day” shall mean each Monday, Tuesday, Wednesday, Thursday and Friday which is
not a day on which banking institutions in New York are generally authorized or
obligated by law or executive order to close.

3.         Upon the authorization by you of the
release of the Securities, the several Purchasers propose to offer the
Securities for sale upon the terms and conditions set forth in this Agreement
and the Offering Circular and each Purchaser hereby represents and warrants to,
and agrees with the Company that:

(a)       It will offer and sell the Securities
only to persons who it reasonably believes are “qualified institutional buyers”
(“QIBs”) within the meaning of Rule 144A under the Act in transactions meeting
the requirements of Rule 144A;

(b)       It is an Accredited Investor, as defined
under Rule 501(a)(1) under the Act; and

(c)       It will not offer or sell the Securities
by any form of general solicitation or general advertising, including but not
limited to the methods described in Rule 502(c) under the Act.

4.         (a) The Securities to be purchased by
each Purchaser hereunder will be represented by one or more definitive global
Securities in book-entry form which will be deposited by or on behalf of the
Company with The Depository Trust Company (“DTC”) or its designated
custodian.  The Company will deliver the
Securities to Goldman, Sachs & Co., for the account of each Purchaser,
against payment by or on behalf of such Purchaser of the purchase price
therefore by wire transfer in

 7
 

 

immediately
available funds, by causing DTC to credit the Securities to the account of the
Purchasers at DTC.  The Company will
cause the certificates representing the Securities to be made available to the
Goldman, Sachs & Co. for checking at least 24 hours prior to the Time of Delivery
(as defined below) at the office of DTC or its designated custodian (the “Designated
Office”).  The time and date of such
delivery and payment shall be, with respect to the Firm Securities, 9:30 a.m.,
New York City time, on September 27, 2006 or such other time and date as the
Purchasers and the Company may agree upon in writing and, with respect to the
Optional Securities, 9:30 a.m., New York City time, on the date specified by
the Purchasers in the written notice given by the Purchasers of the Purchasers’
election to purchase such Optional Securities, or such other time and date as
the Purchasers and the Company may agree upon in writing.  Such time and date for delivery of the Firm
Securities is herein called the “First Time of Delivery,” such time and date
for delivery of the Optional Securities, if not the First Time of Delivery, is
herein called the “Second Time of Delivery,” and each such time and date for
delivery is herein called a “Time of Delivery.”

(b)       The documents to be delivered at the Time
of Delivery by or on behalf of the parties hereto pursuant to Section 8 hereof,
including the cross-receipt for the Securities and any additional documents
requested by the Purchasers pursuant to Section 8(j) hereof, will be delivered at such time and date at the offices
of Latham & Watkins LLP, 885 Third Avenue, New York, New York 10022 (the “Closing
Location”), and the Securities will be delivered at the Designated Office, all
at the Time of Delivery.  A meeting will
be held at the Closing Location at 5:00 p.m., New York City time, on the New
York Business Day next preceding the Time of Delivery, at which meeting the
final drafts of the documents to be delivered pursuant to the preceding
sentence will be available for review by the parties hereto.  For the purposes of this Section 4, “New York
Business Day” shall mean each Monday, Tuesday, Wednesday, Thursday and Friday
which is not a day on which banking institutions in New York are generally
authorized or obligated by law or executive order to close.

5.         The Company agrees with each of the
Purchasers:

(a)       To prepare the Offering Circular in a
form approved by you; to make no amendment or any supplement to the Offering
Circular which shall be disapproved by you promptly after reasonable notice
thereof; and to furnish you with copies thereof;

(b)       Promptly from time to time to take such
action as you may reasonably request to qualify the Securities and the shares of Stock issuable upon
conversion of the Securities for offering and sale under the securities
laws of such jurisdictions as you may request and to comply with such laws so
as to permit the continuance of sales and dealings therein in such
jurisdictions for as long as may be necessary to complete the distribution of
the Securities, provided that in
connection therewith the Company shall not be required to qualify as a foreign
corporation or to file a general consent to service of process in any
jurisdiction;

(c)       To furnish the Purchasers with written and electronic copies thereof in such quantities as you may
from time to time reasonably request, and if, at any time prior to the
expiration of nine months after the date of the Offering Circular, any event
shall have occurred as a result of which the Offering Circular as then amended
or supplemented would include an untrue statement of a material fact or omit to
state any material fact necessary in order to make the statements therein, in
the light of the circumstances under which they were made when such Offering
Circular is delivered, not misleading, or, if for any other reason it shall be
necessary or desirable during such same period to amend or supplement the
Offering Circular, to notify you and upon your request to prepare and furnish
without charge to each Purchaser and to any dealer in securities as many
written and electronic copies as you may from
time to time reasonably request of an amended Offering Circular or

 8
 

 

a
supplement to the Offering Circular which will correct such statement or
omission or effect such compliance;

(d)           During the period beginning from the
date hereof and continuing until the date 90 days after the Time of Delivery,
not to offer, sell, contract to sell or otherwise dispose of, except as
provided hereunder, any securities of the Company that are substantially
similar to the Securities or the Stock
issuable upon conversion of the Securities, including but not limited to any
securities that are convertible into or exchangeable for, or that represent the
right to receive, Stock or any such substantially similar securities (other
than pursuant to employee equity plans, stock purchase plans existing on, or
upon the conversion or exchange of convertible or exchangeable securities
outstanding as of, the date of this Agreement, dividends on the Company’s
existing Series B Redeemable Preferred Stock (as defined in the Offering
Circular) and the issuance by the Company of securities as consideration
in connection with mergers, acquisitions of companies or assets, joint
ventures, reclassifications, strategic relationships or other transactions not
primarily for financing purposes; provided that
(i) in connection with the execution of any agreement relating to any such
merger, acquisition of companies or assets, joint venture, reclassification,
strategic relationship or other transaction not primarily for financing
purposes, all persons that are either parties to such agreement or are required to file reports under Section 16 of the
Exchange Act as a result of being a director, officer or principal
stockholder of a party to such agreement shall agree in writing not to hedge or
make any short sale of such securities prior to the expiration of such 90 day
period and (ii) all persons that are issued such securities shall agree in
writing to be bound by the foregoing as if it were the Company), without your prior written consent;

(e)       Not to be or become, at any time prior to
the expiration of three years after the Time of Delivery, an open-end
investment company, unit investment trust, closed-end investment company or
face-amount certificate company that is or is required to be registered under
Section 8 of the Investment Company Act;

(f)        At any time when the Company is not
subject to Section 13 or 15(d) of the Exchange Act, for the benefit of holders
from time to time of Securities, to furnish at its expense, upon request, to
holders of Securities and prospective purchasers of securities information (the
“Additional Issuer Information”) satisfying the requirements of subsection
(d)(4)(i) of Rule 144A under the Act;

(g)       To use all commercially reasonable
efforts to cause such Securities to be eligible for the PORTAL trading system
of the National Association of Securities Dealers, Inc.;

(h)       To furnish or make available to the
holders of the Securities as soon as practicable after the end of each fiscal
year an annual report (including a balance sheet and statements of income, stockholders’ equity and cash flows of
the Company and its consolidated subsidiaries certified by independent public
accountants) and, as soon as practicable after the end of each of the first
three quarters of each fiscal year (beginning with the fiscal quarter ending
after the date of the Offering Circular), to make available to its stockholders consolidated summary
financial information of the Company and its subsidiaries for such quarter in
reasonable detail;

(i)        During a period of three years from the
date of the Offering Circular, to furnish to you copies of all reports or other
communications (financial or other) furnished to stockholders of the Company, and to deliver to you (i) as soon as
they are available, copies of any reports and financial statements furnished to
or filed with the Commission or any securities exchange on which the Securities
or any class of securities of the Company is listed; and (ii) such additional information
concerning the business and financial condition of the Company as you may from
time to time reasonably request (such financial statements to be on a
consolidated basis to the extent the

 9
 

 

accounts
of the Company and its subsidiaries are consolidated in reports furnished to
its stockholders generally or to
the Commission);

(j)        During the period of two years after the
Time of Delivery, the Company will not, and will not permit any of its “affiliates”
(as defined in Rule 144 under the Securities Act) to, resell any of the
Securities which constitute “restricted securities” under Rule 144 that have
been reacquired by any of them;

(k)         To use the net proceeds received by it from the sale of the
Securities pursuant to this Agreement in the manner specified in the Pricing
Circular under the caption “Use of Proceeds;”

(l)        To reserve and keep
available at all times, free of preemptive rights, shares of Stock for the
purpose of enabling the Company to satisfy any obligations to issue shares of
its Stock upon conversion of the Securities; and

(m)      To use its commercially
reasonable efforts to list for quotation, subject to notice of issuance, the
shares of Stock issuable upon conversion of the Securities on The Nasdaq
National Market.

6.             (a)           (i)  The Company represents and agrees that,
without the prior consent of Goldman, Sachs & Co., it has not made and will
not make any offer relating to the Securities that, if the offering of the
Securities contemplated by this Agreement were conducted as a public offering pursuant
to a registration statement filed under the Act with the Commission, would
constitute an “issuer free writing prospectus,” as defined in Rule 433 under
the Act (any such offer is hereinafter referred to as a “Company Supplemental
Disclosure Document”);

(ii)            each
Purchaser represents and agrees that, without the prior consent of the Company
and Goldman, Sachs & Co., other than one or more term sheets relating to
the Securities containing customary information and conveyed to purchasers of
securities, it has not made and will not make any offer relating to the
Securities that, if the offering of the Securities contemplated by this
Agreement were conducted as a public offering pursuant to a registration
statement filed under the Act with the Commission, would constitute a “free
writing prospectus,” as defined in Rule 405 under the Act (any such offer
(other than any such term sheets), is hereinafter referred to as a “Purchaser
Supplemental Disclosure Document”); and

(iii)           any
Company Supplemental Disclosure Document or Purchaser Supplemental Disclosure
Document the use of which has been consented to by the Company and Goldman,
Sachs & Co. is listed on Schedule II-A(b) hereto.

7.         The Company covenants and agrees with
the several Purchasers that the Company will pay or cause to be paid the
following: (i) the fees, disbursements and expenses of the Company’s counsel
and accountants in connection with the issue of the Securities and the shares of Stock issuable upon
conversion of the Securities and all other expenses in connection with
the preparation, printing, reproduction and filing of the Preliminary Offering
Circular and the Offering Circular and any amendments and supplements thereto
and the mailing and delivering of copies thereof to the Purchasers and dealers;
(ii) the cost of printing or producing this Agreement, any Agreement among
Purchasers, the Indenture, the Registration Rights Agreement, the Blue Sky
Memorandum, closing documents (including any compilations thereof) and any
other documents in connection with the offering, purchase, sale and delivery of
the Securities; (iii) all expenses in connection with the qualification of the
Securities and the shares of Stock
issuable upon conversion of the Securities for offering and sale under
state securities laws as provided in Section 5(b) hereof, including the fees
and disbursements of counsel for the Purchasers in connection with such
qualification and in connection

 10
 

 

with
the Blue Sky and legal investment surveys; (iv) any fees charged by securities
rating services for rating the Securities; (v) the cost of preparing the
Securities; (vi) the fees and expenses of the Trustee and any agent of the Trustee and the fees and disbursements of counsel for the Trustee in connection with the Indenture and the Securities; (vii) any cost incurred in connection with
the designation of the Securities for trading in PORTAL and the listing of the
shares of Stock issuable upon conversion of the Securities; and (viii)
all other costs and expenses incident to the performance of its obligations
hereunder which are not otherwise specifically provided for in this
Section.  It is understood, however,
that, except as provided in this Section, and Sections 9 and 12 hereof, the
Purchasers will pay all of their own costs and expenses, including the fees of
their counsel, transfer taxes on resale of any of the Securities  by them, and any
advertising expenses connected with any offers they may make.

8.         The obligations of the Purchasers
hereunder shall be subject, in their discretion, to the condition that all
representations and warranties and other statements of the Company herein are,
at and as of the Time of Delivery, true and correct, the condition that the
Company shall have performed all of its obligations hereunder theretofore to be
performed, and the following additional conditions:

(a)       Latham & Watkins LLP, counsel for the
Purchasers, shall have furnished to you such opinion or opinions and letter,
dated the Time of Delivery, with respect to the matters you may reasonably
request, and such counsel shall have received such papers and information as
they may reasonably request to enable them to pass upon such matters;

(b)       Sullivan & Cromwell LLP, counsel for
the Company, shall have furnished to you their written opinion and letter,
subject to the limitations and qualifications set forth in such opinion or
letter, dated the Time of Delivery, in form and substance satisfactory to you,
to the effect that:

(i)        The
Company has been duly incorporated and is an existing corporation in good
standing under the laws of the jurisdiction of its incorporation;

(ii)       The
shares
of Stock initially issuable upon conversion of the Securities have been duly
and validly authorized and reserved for issuance upon such conversion and, when
issued and delivered in accordance with the provisions of the Securities and
the Indenture, will be duly and validly issued and fully paid and non-assessable;

(iii)      This Agreement has been duly authorized,
executed and delivered by the Company;

(iv)      The Securities have been duly authorized,
executed, authenticated, issued and delivered and constitute valid and legally
binding obligations of the Company enforceable in accordance with their terms,
subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium
and similar laws of general applicability relating to or affecting creditors’
rights and to general equity principles;

(v)       The Indenture has been duly authorized, executed and delivered by the
Company and constitutes a valid and legally binding obligation of the Company,
enforceable in accordance with its terms subject to bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium and similar laws of general
applicability relating to or affecting creditors’ rights and to general equity
principles;

(vi)      The Registration Rights Agreement has been duly
authorized, executed and delivered by the Company;

(vii)     No consent, approval, authorization, order,
registration or qualification of any United States federal or New York state
governmental authority or regulatory body is required

 11
 

 

for
the consummation of the transactions contemplated by this Agreement or the
Indenture in connection with the Securities to be sold by the Company to the
Purchasers hereunder and the shares of Stock issuable upon conversion of the
Securities, except for such consents, approvals, authorizations, orders,
registrations or qualifications as have been obtained under the Act in
connection with the shares of Stock issuable upon conversion of the Securities
and such as may be required under state securities or Blue Sky laws in
connection with the purchase and distribution of such Securities by the
Purchasers;

 (viii)   The
statements contained in the Offering Circular under the captions “Description of Notes” and “Description of
Capital Stock” insofar as they relate to the terms of the Securities and the Stock, under the caption “Certain
United States Federal Income Tax Considerations” insofar as they relate
to provisions of United States Federal income tax law therein described, and
under the caption “Underwriting”
insofar as they relate to provisions of documents therein described are
accurate, complete and fair;

(ix)       No
registration of the Securities under the Act, and no qualification of the
Indenture under the United States Trust Indenture Act of 1939, as amended, is
required for (1) the offer and sale of the Securities by the Company to the
Purchasers or (2) the re-offer and resale of the Securities by the Purchasers,
in each case in the manner contemplated by this Agreement and the Offering
Circular relating to the Securities;

(x)         Nothing has caused such counsel to believe that (A) the
Pricing Disclosure Package, as of the Applicable Time (other than the financial
statements therein, as to which such counsel need express no opinion or
belief), contained any untrue statement of a material fact or omitted to state
any material fact necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not misleading; or (B)
the Offering Circular and any further amendments or supplements thereto made by
the Company prior to the Time of Delivery (other than the financial statements
therein, as to which such counsel need express no opinion or belief) contained
as of its date or contains as of the Time of Delivery an untrue statement of a
material fact or omitted or omits, as the case may be, to state any material
fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading;
and

(xi)       The
Company is not and, after giving effect to the offering and sale of the
Securities and the application of the proceeds thereof, will not be an “investment
company”, as such term is defined in the Investment Company Act of 1940, as
amended.

(c)       Peter J. Millones, Executive Vice
President and General Counsel for the Company, shall have furnished to you his
written opinion, subject to the limitations and qualifications set forth in
such opinion, dated the Time of Delivery, in form and substance satisfactory to
you, to the effect that:

(i)        The Company has such power and authority
(corporate and other) to own its properties and conduct its business as
described in the Offering Circular;

(ii)       The Company, as of the date specified in
the Offering Circular, has an authorized capitalization as set forth under the
caption “Capitalization” in the Offering Circular and all of the issued shares
of capital stock of the Company have been duly and validly authorized and
issued and are fully paid and non-assessable;

(iii)      The Company has been duly qualified as a
foreign corporation for the transaction of business and is in good standing
under the laws of each other jurisdiction in which it owns or leases properties
or conducts any business so as to require such qualification, or is subject to

 12
 

 

no
material liability or disability by reason of the failure to be so qualified in
any such jurisdiction (such counsel being entitled to rely in respect of the
opinion in this clause upon opinions of local counsel and in respect of matters
of fact upon certificates of officers of the Company, provided that such counsel shall state
that they believe that both you and they are justified in relying upon such
opinions and certificates);

(iv)      Those subsidiaries listed on Schedule II
hereto (the “Scheduled Subsidiaries”) have each been duly incorporated or
organized and each is validly existing as an entity, and where such term
applies, in good standing under the laws of its jurisdiction of incorporation
or organization; and all of the issued shares of capital stock of each such
Scheduled Subsidiary held by the Company have been duly and validly authorized
and issued, are fully paid and non-assessable and (except for directors’
qualifying shares and as otherwise set forth in the Offering Circular) are
owned directly or indirectly by the Company, free and clear of all liens,
encumbrances, equities or claims (such counsel being entitled to rely in
respect of the opinion in this clause upon opinions of local counsel and in
respect of matters of fact upon certificates of officers of the Company or such
Scheduled Subsidiaries, provided
that such counsel shall state that they believe that both you and they are
justified in relying upon such opinions and certificates);

(v)       The Company and the Scheduled
Subsidiaries have good and marketable title in fee simple to all real property
owned by them, in each case free and clear of all liens, encumbrances and
defects except such as are described in the Offering Circular or would not
individually or in the aggregate have a material adverse effect on the current
or future consolidated financial position, stockholders’ equity or results of operations of the Company and
its subsidiaries taken as a whole and do not interfere with the use made and
proposed to be made of such property by the Company and the Scheduled
Subsidiaries; and any real property and buildings held under lease by the
Company and the Scheduled Subsidiaries are held by them under valid, subsisting
and enforceable leases with such exceptions as would not individually or in the
aggregate have a material adverse effect on the current or future consolidated
financial position, stockholders’
equity or results of operations of the Company and its subsidiaries taken as a
whole and do not interfere with the use made and proposed to be made of such
property and buildings by the Company and the Scheduled Subsidiaries (in giving
the opinion in this clause, such counsel may state that no examination of
record titles for the purpose of such opinion has been made, and that they are
relying upon a general review of the titles of the Company and the Scheduled
Subsidiaries, upon opinions of local counsel and abstracts, reports and
policies of title companies rendered or issued at or subsequent to the time of
acquisition of such property by the Company or the Scheduled Subsidiaries, upon
opinions of counsel to the lessors of such property and, in respect of matters
of fact, upon certificates of officers of the Company or the Scheduled
Subsidiaries, provided that such
counsel shall state that they believe that both you and they are justified in
relying upon such opinions, abstracts, reports, policies and certificates);

(vi)      To the best of such counsel’s knowledge
and other than as set forth in the Offering Circular, there are no legal or
governmental proceedings pending to which the Company or any of the Scheduled
Subsidiaries is a party or of which any property of the Company or any of the
Scheduled Subsidiaries is the subject which, if determined adversely to the
Company or any of the Scheduled Subsidiaries, would individually or in the
aggregate have a material adverse effect on the current or future consolidated
financial position, stockholders’
equity or results of operations of the Company and its subsidiaries taken as a
whole; and, to the best of

 13
 

 

such
counsel’s knowledge and other than as set forth in the Offering Circular, no
such proceedings are threatened or contemplated by governmental authorities or
threatened by others;

(vii)     No consent, approval, authorization, order,
registration or qualification of or with any such court or governmental agency
or body is required for the issue and sale of the Securities or the
consummation by the Company of the transactions contemplated by this Agreement
or the Indenture, except, such as may
be required under the Act in connection with the shares of Stock issuable upon
conversion of the Securities and such consents, approvals,
authorizations, registrations or qualifications as may be required under state
securities or Blue Sky laws in connection with the purchase and distribution of
the Securities by the Purchasers;

(viii)    The resolutions of the Board of Directors of
the Company approving the issuance of the Securities have reserved the
Conversion Shares for issuance;

(ix)       Neither
the Company nor any of the Scheduled Subsidiaries is in violation of its
Certificate of Incorporation or By-laws or in default in the performance or
observance of any obligation, covenant or condition contained in any indenture,
mortgage, deed of trust, loan agreement, lease or other agreement or instrument
to which it is a party or by which it or any of its properties may be bound
except for such defaults which would not individually or in the aggregate have
a material adverse effect on the current or future consolidated financial
position, stockholders’ equity
or results of operations of the Company and its subsidiaries taken as a whole;

(x)        The issue and sale of the Securities and
the compliance by the Company with all of the provisions of the Securities, the
Indenture and this Agreement and
the consummation of the transactions herein and therein contemplated will not
(1) conflict with or result in a breach or violation of any of the terms or
provisions of, or constitute a default under, any indenture, mortgage, deed of
trust, loan agreement or other agreement or instrument known to such counsel to
which the Company or any of the Scheduled Subsidiaries is a party or by which
the Company or any of the Scheduled Subsidiaries is bound or to which any of
the property or assets of the Company or any of the Scheduled Subsidiaries is
subject, (2) result in any violation of the provisions of the Certificate of
Incorporation or By-laws of the Company or (3) result in any violation of
the provisions of any statute or any order, rule or regulation of any court or
governmental agency or body having jurisdiction over the Company or any of the
Scheduled Subsidiaries or any of their properties except in the case of clauses
(1) and (3) above which would not individually or in the aggregate have a
material adverse effect on the current or future consolidated financial
position, stockholders’ equity
or results of operations of the Company and its subsidiaries taken as a whole;

(xi)       The documents incorporated by reference in the
Offering Circular or any further amendment or supplement thereto, made by the
Company prior to such Time of Delivery (other than the financial statements and
related schedules therein, as to which such counsel need express no opinion), when
they were filed with the Commission, as the case may be, complied as to form in
all material respects with the requirements of the Act or the Exchange Act, as
applicable, and the rules and regulations of the Commission thereunder; and
they have no reason to believe that any of such documents, when they were so
filed, contained an untrue statement of a material fact or omitted to state a
material fact required to be stated therein or necessary in order to make the
statements therein, in the light of the circumstances under which they were
made, not misleading;

 14

(xii)            No registration of the Securities under the Act,
and no qualification of an indenture under the United States Trust Indenture
Act of 1939 with respect thereto, is required for the offer, sale and initial
resale of the Securities  by the
Purchasers in the manner contemplated by this Agreement; and

(xiii)           The Company is not, and after giving
effect to the offering and sale of the Securities to be issued and sold by the
Company under this Agreement and the Indenture and the application of the net
proceeds from such sale as described in the Offering Circular under the caption
“Use of Proceeds”, will not be required to register as an “investment company”,
as such term is defined in the Investment Company Act.

(d)       On the date of the Offering Circular
prior to the execution of this Agreement and also at the Time of Delivery,
Deloitte & Touche LLP shall have furnished to you a letter or letters,
dated the respective dates of delivery thereof, in form and substance
satisfactory to you, to the effect set forth in Annex I hereto;

(e)       (i) Neither the Company nor any of its
subsidiaries shall have sustained since the date of the latest audited
financial statements included or incorporated by reference in the Pricing
Circular any loss or interference with its business from fire, explosion, flood
or other calamity, whether or not covered by insurance, or from any labor
dispute or court or governmental action, order or decree, otherwise than as set
forth or contemplated in the Pricing Circular, and (ii) since the respective
dates as of which information is given in the Pricing Circular there shall not
have been any change in the capital stock (except for changes or adjustments
made in the ordinary course of business pursuant to employee equity plans in
existence on the date of this Agreement, and other than the exercise of options
outstanding on the date of this Agreement) or long-term debt of the
Company or any of its subsidiaries or any change, or any development involving
a prospective change, in or affecting the general affairs, management,
financial position, stockholders’
equity or results of operations of the Company and its subsidiaries, taken as a
whole, otherwise than as set forth or contemplated in the Pricing Circular, the
effect of which, in any such case described in clause (i) or (ii), is in the
judgment of Goldman, Sachs & Co. so material and adverse as to make it
impracticable or inadvisable to proceed with the offering or the delivery of
the Securities on the terms and in the manner contemplated in this Agreement
and  in the Offering Circular;

(f)        On or after the Applicable Time (i) no
downgrading shall have occurred in the rating accorded the Company’s debt
securities or preferred stock by any “nationally recognized statistical rating
organization”, as that term is defined by the Commission for purposes of Rule
436(g)(2) under the Act, and (ii) no such organization shall have publicly
announced that it has under surveillance or review, with possible negative
implications, its rating of any of the Company’s debt securities or preferred
stock;

(g)       On or after the Applicable Time, there
shall not have occurred any of the following: (i) a suspension or material
limitation in trading in securities generally on the New York Stock Exchange or on the Nasdaq National Market; (ii) a
suspension or material limitation in trading in the Company’s securities on the
Nasdaq National Market; (iii) a general moratorium on commercial banking
activities declared by either Federal or New York State authorities or a
material disruption in commercial banking or securities settlement or clearance
services in the United States; (iv) the outbreak or escalation of hostilities
involving the United States or the declaration by the United States of a
national emergency or war or (v) the occurrence of any other calamity or crisis
or any change in financial, political or economic conditions in the United
States or elsewhere, if the effect of any such event specified in clause (iv)
or (v) in the judgment of Goldman, Sachs & Co. makes it impracticable or

 15
  
 

inadvisable
to proceed with the offering or the delivery of the Securities on the terms and
in the manner contemplated in the Offering Circular;

(h)       The Securities shall have
been designated for trading on PORTAL;

(i)        The shares of Stock
issuable upon conversion of the Securities shall have been duly listed, subject
to notice of issuance, on the Nasdaq National Market;

(j)        The Company shall have furnished or caused to be furnished to
you at the Time of Delivery certificates of officers of the Company
satisfactory to you as to the accuracy of the representations and warranties of
the Company herein at and as of such Time of Delivery, as to the performance by
the Company of all of its obligations hereunder to be performed at or prior to
such Time of Delivery, as to the matters set forth in subsection (e) of this
Section and as to such other matters as you may reasonably request;

(k)       The Company shall have delivered executed
copies of the Securities, the Indenture and the Registration Rights Agreement
to the Purchasers, in each case in form and substance reasonably satisfactory
to the Company and the Purchasers;

(l)        The Company shall have obtained and
delivered to the Purchasers executed copies of a lock-up agreement from the
executive officers of the Company listed on Schedule III hereto substantially
in the forms set forth in Schedule IV hereto; and

(m)      The Company shall have furnished or caused
to be furnished to the Purchasers and Latham & Watkins LLP, counsel for the
Purchasers, a certificate from its transfer agent stating the number of
authorized, issued and outstanding shares of Stock.

9.         (a) 
The Company will indemnify and hold harmless each Purchaser against any
losses, claims, damages or liabilities, joint or several, to which such
Purchaser may become subject, under the Act or otherwise, insofar as such
losses, claims, damages or liabilities (or actions in respect thereof) arise
out of or are based upon an untrue statement or alleged untrue statement of a
material fact contained in any Preliminary Offering Circular, the Pricing
Circular, the Offering Circular, or any amendment or supplement thereto, any
Company Supplemental Disclosure Document, or arise out of or are based upon the
omission or alleged omission to state therein a material fact necessary to make
the statements therein not misleading, and will reimburse each Purchaser for
any legal or other expenses reasonably incurred by such Purchaser in connection
with investigating or defending any such action or claim as such expenses are
incurred; provided, however,
that the Company shall not be liable in any such case to the extent that any
such loss, claim, damage or liability arises out of or is based upon an untrue
statement or alleged untrue statement or omission or alleged omission made in
any Preliminary Offering Circular, the Pricing Circular, the Offering Circular
or any such amendment or supplement, or any Company Supplemental Disclosure
Document, in reliance upon and in conformity with written information furnished
to the Company by any Purchaser through Goldman, Sachs & Co. expressly for
use therein.

(b)       Each Purchaser will indemnify and hold
harmless the Company against any losses, claims, damages or liabilities to
which the Company may become subject, under the Act or otherwise, insofar as
such losses, claims, damages or liabilities (or actions in respect thereof)
arise out of or are based upon an untrue statement or alleged untrue statement
of a material fact contained in any Preliminary Offering Circular, the Pricing
Circular, the Offering Circular, or any amendment or supplement thereto, or any
Company Supplemental Disclosure Document, or arise out of or are based upon the
omission or alleged omission to state therein a material fact or necessary to
make the statements therein not misleading, in each case to the extent, but
only to the extent, that such untrue

 16
  
 

statement
or alleged untrue statement or omission or alleged omission was made in any
Preliminary Offering Circular, the Pricing Circular, or the Offering Circular
or any such amendment or supplement, or any Company Supplemental Disclosure
Document in reliance upon and in conformity with written information furnished
to the Company by such Purchaser through Goldman, Sachs & Co. expressly for
use therein; and will reimburse the Company for any legal or other expenses
reasonably incurred by the Company in connection with investigating or
defending any such action or claim as such expenses are incurred.

(c)       Promptly after receipt by an indemnified
party under subsection (a) or (b) above of notice of the commencement of any
action, such indemnified party shall, if a claim in respect thereof is to be
made against the indemnifying party under such subsection, notify the
indemnifying party in writing of the commencement thereof; but the omission so
to notify the indemnifying party shall not relieve it from any liability which
it may have to any indemnified party otherwise than under such subsection.  In case any such action shall be brought
against any indemnified party and it shall notify the indemnifying party of the
commencement thereof, the indemnifying party shall be entitled to participate
therein and, to the extent that it shall wish, jointly with any other
indemnifying party similarly notified, to assume the defense thereof, with
counsel satisfactory to such indemnified party (who shall not, except with the
consent of the indemnified party, be counsel to the indemnifying party), and,
after notice from the indemnifying party to such indemnified party of its
election so to assume the defense thereof, the indemnifying party shall not be
liable to such indemnified party under such subsection for any legal expenses
of other counsel or any other expenses, in each case subsequently incurred by
such indemnified party, in connection with the defense thereof other than
reasonable costs of investigation.  No
indemnifying party shall, without the written consent of the indemnified party,
effect the settlement or compromise of, or consent to the entry of any judgment
with respect to, any pending or threatened action or claim in respect of which
indemnification or contribution may be sought hereunder (whether or not the
indemnified party is an actual or potential party to such action or claim)
unless such settlement, compromise or judgment (i) includes an unconditional
release of the indemnified party from all liability arising out of such action
or claim and (ii) does not include a statement as to, or an admission of,
fault, culpability or a failure to act, by or on behalf of any indemnified party.

(d)       If the indemnification provided for in
this Section 9 is unavailable to or insufficient to hold harmless an
indemnified party under subsection (a) or (b) above in respect of any losses,
claims, damages or liabilities (or actions in respect thereof) referred to
therein, then each indemnifying party shall contribute to the amount paid or
payable by such indemnified party as a result of such losses, claims, damages
or liabilities (or actions in respect thereof) in such proportion as is
appropriate to reflect the relative benefits received by the Company on the one
hand and the Purchasers on the other from the offering of the Securities.  If, however, the allocation provided by the
immediately preceding sentence is not permitted by applicable law or if the
indemnified party failed to give the notice required under subsection (c)
above, then each indemnifying party shall contribute to such amount paid or
payable by such indemnified party in such proportion as is appropriate to
reflect not only such relative benefits but also the relative fault of the
Company on the one hand and the Purchasers on the other in connection with the
statements or omissions which resulted in such losses, claims, damages or
liabilities (or actions in respect thereof), as well as any other relevant
equitable considerations.  The relative
benefits received by the Company on the one hand and the Purchasers on the
other shall be deemed to be in the same proportion as the total net proceeds
from the offering (before deducting expenses) received by the Company bear to
the total underwriting discounts and commissions received by the Purchasers, in
each case as set forth in the Offering Circular.  The relative fault shall be determined by
reference to, among other things, whether the untrue or alleged

 17
  
 

untrue
statement of a material fact or the omission or alleged omission to state a
material fact relates to information supplied by the Company on the one hand or
the Purchasers on the other and the parties’ relative intent, knowledge, access
to information and opportunity to correct or prevent such statement or
omission.  The Company and the Purchasers
agree that it would not be just and equitable if contribution pursuant to this
subsection (d) were determined by pro rata allocation (even if the Purchasers
were treated as one entity for such purpose) or by any other method of
allocation which does not take account of the equitable considerations referred
to above in this subsection (d).  The
amount paid or payable by an indemnified party as a result of the losses,
claims, damages or liabilities (or actions in respect thereof) referred to
above in this subsection (d) shall be deemed to include any legal or other
expenses reasonably incurred by such indemnified party in connection with
investigating or defending any such action or claim.  Notwithstanding the provisions of this
subsection (d), no Purchaser shall be required to contribute any amount in
excess of the amount by which the total price at which the Securities
underwritten by it and distributed to investors were offered to investors
exceeds the amount of any damages which such Purchaser has otherwise been
required to pay by reason of such untrue or alleged untrue statement or
omission or alleged omission.  The
Purchasers’ obligations in this subsection (d) to contribute are several in
proportion to their respective underwriting obligations and not joint.

(e)       The obligations of the Company under this
Section 8 shall be in addition to any liability which the Company may otherwise
have and shall extend, upon the same terms and conditions, to any affiliate of
each Purchaser and each person, if any, who controls any Purchaser within the
meaning of the Act; and the obligations of the Purchasers under this Section 9
shall be in addition to any liability which the respective Purchasers may
otherwise have and shall extend, upon the same terms and conditions, to each
officer and director of the Company and to each person, if any, who controls
the Company within the meaning of the Act.

10.       (a) 
If any Purchaser shall default in its obligation to purchase the
Securities which it has agreed to purchase hereunder, you may in your
discretion arrange for you or another party or other parties to purchase such
Securities on the terms contained herein. 
If within thirty-six hours after such default by any Purchaser you
do not arrange for the purchase of such Securities, then the Company shall be
entitled to a further period of thirty-six hours within which to procure
another party or other parties satisfactory to you to purchase such Securities
on such terms.  In the event that, within
the respective prescribed periods, you notify the Company that you have so
arranged for the purchase of such Securities or the Company notifies you that
it has so arranged for the purchase of such Securities, you or the Company
shall have the right to postpone the Time of Delivery for a period of not more
than  seven days, in order to effect
whatever changes may thereby be made necessary in the Offering Circular, or in
any other documents or arrangements, and the Company agrees to prepare promptly
any amendments to the Offering Circular which in your opinion may thereby be
made necessary.  The term “Purchaser” as
used in this Agreement shall include any person substituted under this Section
with like effect as if such person had originally been a party to this
Agreement with respect to such Securities.

(b)       If, after giving effect to any
arrangements for the purchase of the Securities 
of a defaulting Purchaser or Purchasers by you and the Company as
provided in subsection (a) above, the aggregate principal amount of such
Securities which remains unpurchased does not exceed one-eleventh of the
aggregate principal amount of all the Securities, then the Company shall have
the right to require each non-defaulting Purchaser to purchase the
principal amount of Securities which such Purchaser agreed to purchase
hereunder and, in addition, to require each non-defaulting Purchaser to
purchase its pro rata share (based on the principal amount of Securities which
such

 18
  
 

Purchaser
agreed to purchase hereunder) of the Securities of such defaulting Purchaser or
Purchasers for which such arrangements have not been made; but nothing herein
shall relieve a defaulting Purchaser from liability for its default.

(c)       If, after giving effect to any
arrangements for the purchase of the Securities of a defaulting Purchaser or
Purchasers by you and the Company as provided in subsection (a) above, the
aggregate principal amount of Securities which remains unpurchased exceeds one-eleventh
of the aggregate principal amount of all the Securities, or if the Company
shall not exercise the right described in subsection (b) above to require non-defaulting
Purchasers to purchase Securities of a defaulting Purchaser or Purchasers, then
this Agreement shall thereupon terminate, without liability on the part of any
non-defaulting Purchaser or the Company, except for the expenses to be
borne by the Company and the Purchasers as provided in Section 6 hereof and the
indemnity and contribution agreements in Section 9 hereof; but nothing herein
shall relieve a defaulting Purchaser from liability for its default.

11.       The respective indemnities, agreements,
representations, warranties and other statements of the Company and the several
Purchasers, as set forth in this Agreement or made by or on behalf of them,
respectively, pursuant to this Agreement, shall remain in full force and
effect, regardless of any investigation (or any statement as to the results
thereof) made by or on behalf of any Purchaser or any controlling person of any
Purchaser, or the Company, or any officer or director or controlling person of
the Company, and shall survive delivery of and payment for the Securities.

12.       If this Agreement shall be terminated
pursuant to Section 10 hereof, the Company shall not then be under any
liability to any Purchaser except as provided in Sections 7 and 9 hereof; but,
if for any other reason, the Securities are not delivered by or on behalf of
the Company as provided herein, the Company will reimburse the Purchaser for
all out-of-pocket expenses approved in writing by you, including fees and
disbursements of counsel, reasonably incurred by the Purchasers in making
preparations for the purchase, sale and delivery of the Securities, but the
Company shall then be under no further liability to any Purchaser except as
provided in Sections 7 and 9 hereof.

13.       In all dealings hereunder, Goldman, Sachs
& Co. shall act on behalf of each of the Purchasers, and the parties hereto
shall be entitled to act and rely upon any statement, request, notice or
agreement on behalf of any Purchaser made or given by Goldman, Sachs & Co.

All statements,
requests, notices and agreements hereunder shall be in writing, and if to the
Purchasers shall be delivered or sent by mail, telex or facsimile transmission
to you at as the representatives
in care of Goldman, Sachs & Co., One New York Plaza, 42nd Floor, New York, New York 10004, Attention:
Registration Department; and if to the Company shall be delivered or sent by
mail, telex or facsimile transmission to the address of the Company set forth
in the Offering Circular, Attention: Secretary; provided,
however, that any notice to a Purchaser
pursuant to Section 8(j) hereof shall be delivered or sent by mail, telex or facsimile
transmission to such Purchaser at its address set forth in its Purchasers’
Questionnaire, or telex constituting such Questionnaire, which address will be
supplied to the Company by you upon request. 
Any such statements, requests, notices or agreements shall take effect
upon receipt thereof.

14.       This Agreement shall be binding upon, and
inure solely to the benefit of, the Purchasers, the Company and, to the extent
provided in Sections 9 and 11 hereof, the officers and directors of the Company
and each person who controls the Company or any Purchaser, and their respective
heirs, executors, administrators, successors and assigns, and no other person
shall acquire or have any right under or by virtue of this Agreement. No
purchaser of any of the Securities from any Purchaser shall be deemed a
successor or assign by reason merely of such purchase.

 19
  
 

15.       Time shall be of the essence of this
Agreement.

16.       The Company acknowledges and agrees that (i) the
purchase and sale of the Securities pursuant to this Agreement is an arm’s-length
commercial transaction between the Company, on the one hand, and the several
Purchasers, on the other, (ii) in connection therewith and with the process
leading to such transaction each Purchaser is acting solely as a principal and
not the agent or fiduciary of the Company, (iii) no Purchaser has assumed an
advisory or fiduciary responsibility in favor of the Company with respect to
the offering contemplated hereby or the process leading thereto (irrespective
of whether such Purchaser has advised or is currently advising the Company on
other matters) or any other obligation to the Company except the obligations
expressly set forth in this Agreement and (iv) the Company has consulted its
own legal and financial advisors to the extent it deemed appropriate.  The Company agrees that it will not claim
that the Purchasers, or any of them, has rendered advisory services of any
nature or respect, or owes a fiduciary or similar duty to the Company, in
connection with such transaction or the process leading thereto.

17.       This Agreement supersedes all prior agreements and
understandings (whether written or oral) between the Company and the
Purchasers, or any of them, with respect to the subject matter hereof.

18.      This Agreement shall be governed by and construed in accordance
with the laws of the State of New York.

19.       The Company and each of the Purchasers hereby
irrevocably waives, to the fullest extent permitted by applicable law, any and
all right to trial by jury in any legal proceeding arising out of or relating
to this Agreement or the transactions contemplated hereby.

20.       This Agreement may be executed by any one
or more of the parties hereto in any number of counterparts, each of which
shall be deemed to be an original, but all such respective counterparts shall
together constitute one and the same instrument.

21.           Notwithstanding anything herein to the contrary, the Company (and the
Company’s employees, representatives, and other agents) are authorized to
disclose to any and all persons, the tax treatment and tax structure of the
potential transaction and all materials of any kind (including tax opinions and
other tax analyses) provided to the Company relating to that treatment and
structure, without the Purchasers’ imposing any limitation of any kind.
However, any information relating to the tax treatment and tax structure shall
remain confidential (and the foregoing sentence shall not apply) to the extent
necessary to enable any person to comply with securities laws. For this
purpose, “tax treatment” means US federal and state income tax treatment, and “tax
structure” is limited to any facts that may be relevant to that treatment.

 20
  

 

If the foregoing is in
accordance with your understanding, please sign and return to us five
counterparts hereof, and upon the acceptance hereof by you, on behalf of each
of the Purchasers, this letter and such acceptance hereof shall constitute a
binding agreement between each of the Purchasers and the Company.  It is understood that your acceptance of this
letter on behalf of each of the Purchasers is pursuant to the authority set
forth in a form of Agreement among Purchasers, the form of which shall be submitted
to the Company for examination upon request, but without warranty on your part
as to the authority of the signers thereof.

	
  

  	
  Very truly yours,

  
	
   

  	
   

  	
   

  
	
   

  	
  priceline.com Incorporated

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jeffery H. Boyd

  
	
   

  	
   

  	
  Name: Jeffery H. Boyd

  
	
   

  	
   

  	
  Title:   Chief
  Executive Officer

  
				

 

	
  Accepted as of the date hereof:

  	
   

  	
   

  
	
  Goldman, Sachs & Co.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ Goldman, Sachs & Co.

  	
   

  	
   

  	
   

  
	
   

  	
  (Goldman, Sachs & Co.)

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