Document:

Exhibit 10.1

ISDAÒ

 

International Swaps and Derivatives Association, Inc.

 

2002
MASTER AGREEMENT

 

dated as of  March 20, 2008

 

	
  JPMORGAN CHASE BANK,

  NATIONAL ASSOCIATION

  	
   

  	
  and

  	
   

  	
  LKQ CORPORATION

  

 

have entered and/or anticipate
entering into one or more transactions (each a “Transaction”) that are or will
be

governed by this 2002 Master Agreement, which includes the schedule (the
“Schedule”), and the documents and

other confirming evidence (each a “Confirmation”) exchanged between the parties
or otherwise effective for the

purpose of confirming or evidencing those Transactions. This 2002 Master
Agreement and the Schedule are together

referred to as this “Master Agreement”.

 

Accordingly, the parties agree as follows:—

 

1.             Interpretation

 

(a)           Definitions. The
terms defined in Section 14 and elsewhere in this Master Agreement will
have the

meanings therein specified for the purpose of this Master Agreement.

 

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

provisions of this Master Agreement, the Schedule will prevail. In the
event of any inconsistency between the

provisions of any Confirmation and this Master Agreement, such
Confirmation will prevail for the purpose of the

relevant Transaction.

 

(c)           Single Agreement.
All Transactions are entered into in reliance on the fact that this
Master Agreement and

all Confirmations form a single agreement between the parties
(collectively referred to as this “Agreement”), and the

parties would not otherwise enter into any Transactions.

 

2.             Obligations

 

(a)           General Conditions.

 

(i)      Each party will make each payment or delivery specified in each
Confirmation to be made by it,

subject to the other provisions of this Agreement.

 

(ii)     Payments
under this Agreement will be made on the due date for value on that date in the
place of

the account specified
in the relevant Confirmation or otherwise pursuant to this Agreement, in freely

transferable funds
and in the manner customary for payments in the required currency. Where settlement
is

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

manner customary for
the relevant obligation unless otherwise specified in the relevant Confirmation
or

elsewhere in this
Agreement.

 

 

(iii)    Each obligation of each party under Section 2(a)(i) is
subject to (1) the condition precedent that no

Event of Default or
Potential Event of Default with respect to the other party has occurred and is
continuing

(2) the
condition precedent that no Early Termination Date in respect of the relevant
Transaction has

occurred or been
effectively designated and (3) each other condition specified in this
Agreement to be a

condition precedent
for the purpose of this Section 2(a)(iii).

 

(b)           Change of Account. Either party may change its account for receiving a
payment or delivery by giving

notice
to the other party at least five Local Business Days prior to the Scheduled
Settlement Date for the payment or

delivery
to which such change applies unless such other party gives timely notice of a
reasonable objection to such

change.

 

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

 

(i)      in the same currency; and

 

(ii)     in respect of the same Transaction,

 

by each party to the other,
then, on such date, each party’s obligation to make payment of any such amount
will be

automatically
satisfied and discharged and, if the aggregate amount that would otherwise have
been payable by one

party
exceeds the aggregate amount that would otherwise have been payable by the
other  party, replaced by an

obligation
upon the party by which the larger aggregate amount would have been payable to
pay to the other party the

excess
of the larger aggregate amount over the smaller aggregate amount.

 

The parties may elect in respect
of two or more Transactions that a net amount and payment obligation will be

determined
in respect of all amounts payable on the same date in the same currency in
respect of those Transactions,

regardless
of whether such amounts are payable in respect of the same Transaction. The
election may be made in the

Schedule or any Confirmation by specifying that “Multiple Transaction Payment
Netting” applies to the Transactions

identified as being subject to the election (in which case clause (ii) above will
not apply to such Transactions). If

Multiple Transaction Payment Netting is applicable to Transactions, it will
apply to those Transactions with effect

from the starting date specified in the Schedule or such Confirmation, or, if
a starting date is not specified in the

Schedule
or such Confirmation, the starting date otherwise agreed by the parties in
writing.  This election may be

made
separately for different groups of Transactions and will apply separately to
each pairing of Offices through

which the parties make and receive payments or deliveries.

 

(d)           Deduction or Withholding for Tax.

 

(i)      Gross-Up. All payments
under this Agreement will be made without any deduction or withholding

for or on account of any Tax unless such deduction or withholding is required
by any applicable law, as

modified by the practice of any relevant governmental revenue authority, then
in effect. If a party is so

required to deduct or withhold, then that party (“X”) will:—

 

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

 

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

(including the full amount required to be deducted or withheld from any
additional amount paid by

X to Y under this Section 2(d))
promptly upon the earlier of determining that such deduction or

withholding is
required or receiving notice that such amount has been assessed

against Y;

 

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

reasonably acceptable to Y, evidencing such payment to such authorities; and

 

2

 

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

otherwise entitled under this Agreement, such additional amount as is necessary
to ensure that the

net amount actually received by Y (free and
clear of Indemnifiable Taxes, whether assessed against

X or Y) will equal the full amount Y would have received had no such deduction
or withholding

been required. However, X will not be required to pay any additional amount to
Y to the extent that

it would not be required to be paid but for:—

 

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

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

 

(B)    the
failure of a representation made by Y pursuant to Section 3(f) to be
accurate

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

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

entered into (regardless of whether such action is taken or brought with
respect to a party

to this Agreement) or (II) a Change in Tax Law.

 

(ii)     Liability. If:—

 

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

governmental revenue authority, to make any deduction or withholding in respect
of which X would

not
be required to pay an additional amount to Y under Section 2(d)(i)(4);

 

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

 

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

 

then, except to the extent Y has satisfied or then
satisfies the liability resulting from such Tax, Y will

promptly pay to X the amount of such liability (including any related liability
for interest, but including any

related liability for penalties only if Y has failed to comply with or perform
any agreement contained in

Section 4(a)(i), 4(a)(iii) or 4(d)).

 

3.             Representations

 

Each party makes the
representations contained in Sections 3(a), 3(b), 3(c), 3(d), 3(e) and 3(f) and,
if specified in the

Schedule as applying, 3(g) to the other party (which representations will
be deemed to be repeated by each party on

each date on which a Transaction is entered into and, in the case of the
representations in Section 3(f), at all times

until the termination of this Agreement). 
If any “Additional Representation” is specified in the Schedule or any

Confirmation as applying, the party or parties specified for such Additional
Representation will make and, if

applicable, be deemed to repeat such Additional Representation at the time or
times specified for such Additional Representation.

 

(a)           Basic Representations.

 

(i)      Status.
It is duly organised and validly existing under the laws of the jurisdiction of
its organisation

or incorporation and, if relevant under such laws, in good standing;

 

(ii)     Powers. It has the power to
execute this Agreement and any other documentation relating to this

Agreement
to which it is a party, to deliver this Agreement and any other documentation
relating to this

Agreement
that it is required by this Agreement to deliver and to perform its obligations
under this

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

taken
all necessary action to authorise such execution, delivery and performance;

 

3

 

(iii)    No Violation or Conflict. Such
execution, delivery and performance do not violate or conflict with

any law applicable to it, any provision of its constitutional documents, any
order or judgment of any court or

other agency of government applicable to it or any of its assets or any
contractual restriction binding on or

affecting it or any of its assets;

 

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

respect to this Agreement or any Credit Support Document to which it is a party
have been obtained and are

in full force and effect and all conditions of any such consents have been
complied with; and

 

(v)     Obligations Binding.  Its
obligations under this Agreement and any Credit Support Document to

which it is a party constitute its legal, valid and binding obligations,
enforceable in accordance with their

respective terms (subject to applicable bankruptcy, reorganisation, insolvency,
moratorium or similar laws

affecting creditors’ rights generally and subject, as to enforceability, to
equitable principles of general

application (regardless of whether enforcement is sought in a proceeding in
equity or at law)).

 

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

Termination Event with respect to it has occurred and is continuing and no such
event or circumstance would occur

as a result of its entering into or
performing its obligations under this Agreement or any Credit Support Document
to

which it is a party.

 

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

Support Providers or any of its applicable Specified Entities any action, suit
or proceeding at law or in equity or

before any court, tribunal, governmental body, agency or official or any
arbitrator that is likely to affect the legality,

validity or enforceability against it of this Agreement or any Credit Support
Document to which it is a party or its

ability to perform its obligations under this Agreement or such Credit Support
Document.

 

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

of it to the other party and is identified
for the purpose of this Section 3(d) in the Schedule is, as of the
date of the

information, true, accurate and complete in
every material respect.

 

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

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

 

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

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

 

(g)           No Agency. It is entering into this
Agreement, including each Transaction, as principal and not as agent of

any person or entity.

 

4.             Agreements

 

Each party agrees with the other that, so long as
either party has or may have any obligation under this Agreement or

under any Credit Support Document to which it is a party:—

 

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

below, to such government or taxing authority as the other party reasonably
directs:—

 

(i)      any
forms, documents or certificates relating to taxation specified in the Schedule
or any

Confirmation;

 

(ii)     any
other documents specified in the Schedule or any Confirmation; and

 

 

4

 

(iii)    upon reasonable demand by
such other party, any form or document that may be required or

reasonably requested in writing in order to allow such other party or its
Credit Support Provider to make a

payment under this Agreement or any applicable Credit Support Document without
any deduction or

withholding for or on account of any Tax or with such deduction or withholding
at a reduced rate (so long as

the completion, execution or submission of such form or document would not
materially prejudice the legal

or commercial position of the party in receipt of such demand), with any such
form or document to be

accurate and completed in a manner reasonably satisfactory to such other party
and to be executed and to be

delivered with any reasonably required certification,

 

in each case by the date specified in the Schedule or
such Confirmation or, if none is specified, as soon as reasonably

practicable.

 

(b)           Maintain Authorisations.  It will use all reasonable efforts
to maintain in full force and effect all consents of

any governmental or other authority that are required to be obtained by it with
respect to this Agreement or any

Credit Support Document to which it is a
party and will use all reasonable efforts to obtain any that may become

necessary in the future.

 

(c)           Comply
with Laws. It will comply in all material respects with all
applicable laws and orders to which it may

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

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

 

(d)           Tax Agreement.
It will give notice of any failure of a representation made by it under Section 3(f) to
be

accurate and true promptly upon learning of such failure.

 

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

respect of its execution or performance of this Agreement by a jurisdiction in
which it is incorporated, organised,

managed and controlled, or considered to
have its seat, or where an Office through which it is acting for the purpose

of this Agreement is located (“Stamp Tax Jurisdiction”), and will indemnify the
other party against any Stamp Tax

levied or imposed upon the other party or in respect of the other party’s
execution or performance of this Agreement

by any such Stamp Tax Jurisdiction which is not also a Stamp Tax Jurisdiction
with respect to the other party.

 

5.             Events of Default and Termination Events

 

(a)           Events
of Default. The
occurrence at any time with respect to a party or, if applicable, any Credit
Support

Provider of such party or any Specified Entity of such party of any of the
following events constitutes (subject to

Sections 5(c) and 6(e)(iv)) an event of default (an “Event of Default”)
with respect to such party:—

 

(i)      Failure to Pay or Deliver. Failure by
the party to make, when due, any payment under this

Agreement or delivery under Section 2(a)(i) or 9(h)(i)(2) or (4) required
to be made by it if such failure is

not
remedied on or before the first Local Business Day in the case of any such
payment or the first Local

Delivery Day in the case of any such delivery after, in each case, notice of such
failure is given to the party;

 

(ii)     Breach
of Agreement; Repudiation of Agreement..

 

(1)       Failure
by the party to comply with or perform any agreement or obligation (other than
an

obligation to make any payment under this Agreement or delivery under Section 2(a)(i) or
9(h)(i)(2)

or (4) or to give notice of a Termination Event or any agreement or
obligation under Section 4(a)(i),

4(a)(iii) or 4(d)) to be complied with or performed by the party in
accordance with this Agreement

if such failure is not remedied within 30 days after notice of such failure is
given to the party; or

 

(2)       the
party disaffirms, disclaims, repudiates or rejects, in whole or in part, or
challenges

the validity of, this Master Agreement, any Confirmation executed and delivered
by that party or any

 

 

5

 

Transaction evidenced by such a Confirmation (or such
action is taken by any person or entity

appointed or empowered to operate it or act on its behalf);

 

(iii)      Credit Support Default.

 

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

perform any agreement or obligation to be complied with or performed by it in
accordance with any

Credit Support Document if such failure is continuing after any applicable
grace period has elapsed;

 

 

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

such
Credit Support Document, or any security interest granted by such party or such
Credit

Support Provider to the other party pursuant to any such Credit
Support Document, to be in full

force
and effect for the purpose of this Agreement (in each case other than in
accordance with its

terms)
prior to the satisfaction of all obligations of such party under each
Transaction to which such

Credit
Support Document relates without the written consent of the other party; or

 

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

whole or in part, or challenges the validity of, such Credit Support Document
(or such action is

taken by any person or entity appointed or empowered to operate it or act on
its behalf);

 

(iv)    Misrepresentation. A representation (other than a representation under Section 3(e) or
3(f)) made

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

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

material
respect when made or repeated or deemed to have been made or repeated;

 

(v)     Default under Specified Transaction.  The party, any Credit Support Provider of
such party or any

applicable
Specified Entity of such party:—

 

                             (1)           defaults (other than by failing to
make a delivery) under a Specified Transaction or any

credit support arrangement relating to a Specified Transaction and, after
giving effect to any

applicable
notice requirement or grace period, such default results in a liquidation of,
an

acceleration of obligations under, or an early termination of, that Specified
Transaction;

 

                                    (2)           defaults, after giving effect to any
applicable notice requirement or grace period, in making

any
payment due on the
last payment or exchange date of, or any payment on early termination of, a

Specified Transaction (or, if there is no applicable notice requirement or
grace period, such default

continues for at least one Local Business Day);

 

                                    (3)           defaults in making any delivery due
under (including any delivery due on the last delivery

or exchange date of) a Specified Transaction or any credit support arrangement
relating to a

Specified Transaction and, after giving effect to any applicable notice
requirement or grace period,

such default results in a liquidation of, an acceleration of obligations under,
or any early termination

of, all transactions outstanding under the documentation applicable to that
Specified Transaction; or

 

                                    (4)           disaffirms,
disclaims, repudiates or rejects, in whole or in part, or challenges the
validity

of, a Specified Transaction or any credit support arrangement relating to a
Specified Transaction

that is, in either case, confirmed or evidenced by a document or other
confirming evidence executed

and delivered by that party, Credit Support Provider or Specified Entity (or
such action is taken by

any person or entity appointed or empowered to operate it or act on its
behalf);

 

 

6

 

(vi)    Cross Default.  If “Cross Default” is specified in
the Schedule as applying to the party, the

occurrence or existence of:—

 

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

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

of
such party under one or more agreements or instruments relating to Specified
Indebtedness of

any
of them (individually or collectively) where the aggregate principal amount of
such agreements

or instruments, either alone or together with the amount, if any, referred to
in clause (2) below is

not less than the applicable Threshold Amount (as specified in the Schedule)
which has resulted in

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

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

payable; or

 

                             (2)          a default by such party, such Credit
Support Provider or such Specified Entity

(individually
or collectively) in making one or more payments under such agreements or

instruments
on the due date for payment (after giving effect to any applicable notice
requirement or

grace
period) in an aggregate amount, either alone or together with the amount, if
any, referred to in

clause
(1) above, of not less than the applicable Threshold Amount;

 

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

Entity of such party:—

 

(1) is dissolved (other than pursuant to a
consolidation, amalgamation or merger); (2) becomes

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

debts
as they become due; (3) makes a general assignment, arrangement or
composition with or for

the
benefit of its creditors; (4)(A) institutes or has instituted against it,
by a regulator, supervisor or

any
similar official with primary insolvency, rehabilitative or regulatory
jurisdiction over it in the

jurisdiction of its incorporation or organisation or the jurisdiction of its
head or home office, a

proceeding
seeking a judgment of insolvency or bankruptcy or any other relief under any

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

presented
for its winding-up or liquidation, by it or such regulator, supervisor or
similar official, or

(B) has instituted against it a proceeding seeking a judgment of
insolvency or bankruptcy or any

other relief under any bankruptcy or insolvency law or other similar law
affecting creditors’ rights,

or a petition is presented for its winding-up or liquidation, and such
proceeding or petition is

instituted or presented by a person or entity not described in clause (A) above
and either (I) results

in a judgment of insolvency or bankruptcy or the entry of an order for relief
or the making of an

order for its winding-up or liquidation or (II) is not dismissed,
discharged, stayed or restrained

in each case within 15 days of the institution or presentation thereof; (5) has
a resolution passed for its

winding-up, official management or liquidation (other than pursuant to a
consolidation

amalgamation or merger); (6) seeks or becomes subject to the
appointment of an administrator,

provisional
liquidator, conservator, receiver, trustee, custodian or other similar official
for it or for

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

assets
or has a distress, execution, attachment, sequestration or other legal process
levied, enforced or sued

on or against all or substantially all its assets and such secured party
maintains possession,

or
any such process is not dismissed, discharged, stayed or restrained, in each
case within 15 days

thereafter;
(8) causes or is subject to any event with respect to it which, under the
applicable laws of

any
jurisdiction, has an analogous effect to any of the events specified in clauses
(1) to (7) above

(inclusive); or (9) takes any action in furtherance of, or
indicating its consent to, approval of, or

acquiescence
in, any of the foregoing acts; or

 

 

7

 

(viii)   Merger
Without Assumption. The party or
any Credit Support Provider of such party consolidates

or amalgamates with, or merges with or into, or transfers all or substantially
all its assets to, or reorganises,

reincorporates or reconstitutes into or as, another entity and, at the time of
such consolidation,

amalgamation, merger, transfer, reorganisation, reincorporation or
reconstitution:—

 

(1)           the
resulting, surviving or transferee entity fails to assume all the obligations
of such party

or such Credit Support Provider under this Agreement or any Credit Support
Document to which it

or
its predecessor was a party; or

 

(2)           the
benefits of any Credit Support Document fail to extend (without the consent of
the

other party) to the performance by such resulting, surviving or transferee
entity of its obligations

under this Agreement.

 

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

Support Provider of such party or any Specified Entity of such party of any
event specified below constitutes (subject

to Section 5(c)) an Illegality if the
event is specified in clause (i) below, a Force Majeure Event if the event
is

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

the event is specified in clause (iv) below,
and, if specified to be applicable, a Credit Event Upon Merger if the event

is specified pursuant to clause (v) below
or an Additional Termination Event if the event is specified pursuant to

clause (vi) below:—

 

(i)      Illegality. After giving effect to any applicable
provision, disruption fallback or remedy specified

in, or pursuant to, the relevant Confirmation or elsewhere in this Agreement,
due to an event or circumstance

(other than any action taken by a party or, if applicable, any Credit Support
Provider of such party)

occurring after a Transaction is entered into, it becomes unlawful under any
applicable law (including

without limitation the laws of any country in which payment, delivery or
compliance is required by either

party or any Credit Support Provider, as the case may be), on any day, or it
would be unlawful if the relevant

payment, delivery or compliance were required on that day (in each case, other
than as a result of a breach

by the party of Section 4(b)):—

 

(1)       for the Office through
which such party (which will be the Affected Party) makes and

receives payments or deliveries with respect to such Transaction to perform any
absolute or

contingent obligation to make a payment or delivery in respect of such
Transaction, to receive a

payment or delivery in respect of such Transaction or to comply with any other

material provision of this Agreement relating to such Transaction; or

 

(2)       for such party or any Credit
Support Provider of such party (which will be the Affected

Party) to perform any absolute or contingent obligation to make a payment or
delivery which such

party or Credit Support Provider has under any Credit Support Document relating
to such

Transaction, to receive a payment or delivery under such Credit Support
Document or to comply

with any other material provision of such Credit Support Document;

 

(ii)     Force Majeure Event. After giving
effect to any applicable provision, disruption fallback or

remedy
specified in, or pursuant to, the relevant Confirmation or elsewhere in this
Agreement, by reason of

force
majeure or act of state occurring after a Transaction is entered into, on any
day:—

 

(1)       the Office through which such party (which will be the Affected
Party) makes and receives

payments
or deliveries with respect to such Transaction is prevented from performing any
absolute

or contingent obligation to make a payment or delivery in respect of such
Transaction, from

receiving a payment or delivery in respect of such Transaction or from
complying with any other

material provision of this Agreement relating to such Transaction (or would be
so prevented if such

payment, delivery or compliance were required on that day), or it becomes
impossible or

 

 

8

 

impracticable for such Office so to perform, receive
or comply (or it would be impossible or

impracticable for such Office so to perform, receive or comply if such payment,
delivery or

compliance were required on that day); or

 

(2)       such
party or any Credit Support Provider of such party (which will be the Affected
Party)

is prevented from performing any absolute or contingent obligation to make a
payment or delivery

which such party or Credit Support Provider has under any Credit Support
Document relating to

such Transaction, from receiving a payment or delivery under such Credit
Support Document or

from complying with any other material provision of such Credit Support
Document (or would be

so prevented if such payment, delivery or compliance were required on that
day), or it becomes

impossible or impracticable for such party or Credit Support Provider so to
perform, receive or

comply (or it would be impossible or impracticable for such party or Credit
Support Provider so to

perform, receive or comply if such payment, delivery or compliance were
required on that day),

 

so long as the force majeure or
act of state is beyond the control of such Office, such party or such Credit

Support Provider, as appropriate, and such Office, party or Credit Support
Provider could not, after using all

reasonable efforts (which will not require such party or Credit Support
Provider to incur a loss, other than

immaterial, incidental expenses), overcome such prevention, impossibility or
impracticability;

 

(iii)    Tax Event.  Due to (1) any action taken
by a taxing authority, or brought in a court of competent

jurisdiction, after a Transaction is entered into (regardless of whether such
action is taken or brought with

respect to a party to this Agreement) or (2) a Change in Tax Law, the
party (which will be the Affected

Party) will, or there is a substantial likelihood that it will, on the next
succeeding Scheduled Settlement Date

(A) be required to pay to the other party an additional amount in respect
of an Indemnifiable Tax under

Section 2(d)(i)(4) (except in respect of interest under Section 9(h) or
(B) receive a payment from which an

amount is required to be deducted or withheld for or on account of a Tax
(except in respect of interest under

Section 9(h) and no additional amount is required to be paid in
respect of such Tax under Section 2(d)(i)(4)

(other than by reason of Section 2(d)(i)(4)(A) or (B));

 

(iv)    Tax Event Upon Merger. The party (the “Burdened Party”) on the next succeeding
Scheduled

Settlement Date will either (1) be required to pay an additional amount in
respect of an Indemnifiable Tax

under
Section 2(d)(i)(4) (except in respect of interest under Section 9(h))
or (2) receive a payment from

which
an amount has been deducted or withheld for or on account of any Tax in respect
of which the other

party
is not required to pay an additional amount (other than by reason of Section 2(d)(i)(4)(A) or
(B)), in

either
case as a result of a party consolidating or amalgamating with, or merging with
or into, or transferring

all
or substantially all its assets (or any substantial part of the assets
comprising the business conducted by it

as of the date of this Master Agreement) to or reorganising, reincorporating or
reconstituting into or as, 

another entity (which will be the Affected Party) where such action does not
constitute a Merger Without

Assumption;

 

(v)     Credit Event Upon Merger. If “Credit Event Upon Merger” is specified in the Schedule
as

applying
to the party, a Designated Event (as defined below) occurs with respect to such
party, any Credit

Support
Provider of such party or any applicable Specified Entity of such party (in
each case, “X”) and such

Designated Event does not constitute a Merger Without Assumption, and the creditworthiness
of X or, if

applicable, the successor, surviving or transferee entity of X, after taking
into account any applicable Credit

Support Document, is materially weaker immediately after the occurrence of such
Designated Event than

that of X immediately prior to the occurrence of such Designated Event (and, in
any such event, such party

or its successor, surviving or transferee entity, as appropriate, will be the
Affected Party). A “Designated

Event” with respect to X means that:—

 

(1)       X consolidates or amalgamates with, or merges with or into, or
transfers all or substantially

all
its assets (or any substantial part of the assets comprising the business
conducted by X as of the

 

 

9

 

date of this Master Agreement) to, or reorganises,
reincorporates or reconstitutes into or as, another

entity;

 

(2)       any
person, related group of persons or entity acquires directly or indirectly the
beneficial

ownership of (A) equity securities having the power to elect a majority of
the board of directors (or

its equivalent) of X or (B) any other ownership interest enabling it to
exercise control of X; or

 

(3)       X effects any substantial change in its capital structure by
means of the issuance,

incurrence or guarantee of debt or the issuance of (A) preferred stock or
other securities convertible

into or exchangeable for debt or preferred stock or (B) in the case of
entities other than

corporations, any other form of ownership interest; or

 

(vi)          Additional Termination Event. If any “Additional Termination Event” is specified in the
Schedule

or any Confirmation as applying, the occurrence of such event (and, in such
event, the Affected Party or

Affected
Parties will be as specified for such Additional Termination Event in the Schedule
or such

Confirmation).

 

(c)           Hierarchy
of Events.

 

(i)            An
event or circumstance that constitutes or gives rise to an Illegality or a
Force Majeure Event will

not, for so long as that is the case, also constitute or give rise to an Event
of Default under Section 5(a)(i),

5(a)(ii)(1) or 5(a)(iii)(1) insofar as such event or circumstance
relates to the failure to make any payment or

delivery or a failure to comply with any other material provision of this
Agreement or a Credit Support

Document, as the case may be.

 

(ii)           Except
in circumstances contemplated by clause (i) above, if an event or
circumstance which would

otherwise constitute or give rise to an Illegality or a Force Majeure Event
also constitutes an Event of

Default or any other Termination Event, it will be treated as an Event of
Default or such other Termination

Event, as the case may be, and will not constitute or give rise to an
Illegality or a Force Majeure Event.

 

(iii)          If
an event or circumstance which would otherwise constitute or give rise to a
Force Majeure Event

also constitutes an Illegality, it will be treated as an Illegality, except as
described in clause (ii) above, and

not a Force Majeure Event.

 

(d)           Deferral
of Payments and Deliveries During Waiting Period.  If an Illegality or a Force Majeure Event has

occurred and is continuing with respect to a Transaction, each payment or
delivery which would otherwise be

required to be made under that Transaction will be deferred to, and will not be
due until:—

 

(i)            the
first Local Business Day or, in the case of a delivery, the first Local
Delivery Day (or the first

day that would have been a Local Business Day or Local Delivery Day, as
appropriate, but for the

occurrence of the event or circumstance constituting or giving rise to that
Illegality or Force Majeure Event)

following the end of any applicable Waiting Period in respect of that
Illegality or Force Majeure Event, as

the case may be; or

 

(ii)           if
earlier, the date on which the event or circumstance constituting or giving
rise to that Illegality or

Force Majeure Event ceases to exist or, if such date is not a Local Business
Day or, in the case of a delivery,

a Local Delivery Day, the first following day that is a Local Business Day or
Local Delivery Day, as

appropriate.

 

(e)           Inability of Head or Home
Office to Perform Obligations of Branch. If (i) an
Illegality or a Force

Majeure Event occurs under Section 5(b)(i)(1) or 5(b)(ii)(1) and
the relevant Office is not the Affected Party’s head

or home office, (ii) Section 10(a) applies, (iii) the other
party seeks performance of the relevant obligation or

 

 

10

 

compliance with the
relevant provision by the Affected Party’s head or home office and (iv) the
Affected Party’s head

or home office fails so to perform or comply due to the occurrence of an event
or circumstance which would, if that

head or home office were the Office through which the Affected Party makes and
receives payments and deliveries

with respect to the relevant Transaction, constitute or give rise to an
Illegality or a Force Majeure Event, and such

failure would otherwise constitute an Event of Default under Section 5(a)(i) or
5(a)(iii)(1) with respect to such party

then, for so long as the relevant event or circumstance continues to exist with
respect to both the Office referred to in

Section 5(b)(i)(1) or 5(b)(ii)(1), as the case may be, and the
Affected Party’s head or home office, such failure will

not constitute an Event of Default under Section 5(a)(i) or
5(a)(iii)(1).

 

6.             Early Termination; Close-Out Netting

 

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

(the “Defaulting Party”) has occurred and is
then continuing, the other party (the “Non-defaulting Party”) may, by not

more than 20 days notice to the Defaulting
Party specifying the relevant Event of Default, designate a day not earlier

than the day such notice is effective as an
Early Termination Date in respect of all outstanding Transactions. If,

however, “Automatic Early Termination” is
specified in the Schedule as applying to a party, then an Early

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

to such party of an Event of Default
specified in Section 5(a)(vii)(1), (3), (5), (6) or, to the extent
analogous thereto,

(8),  and as of the time immediately preceding the institution of the relevant
proceeding or the presentation of the

relevant petition upon the occurrence with
respect to such party of an Event of Default specified in

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

 

(b)           Right to Terminate
Following Termination Event.

 

(i)      Notice. If a Termination Event other
than a Force Majeure Event occurs, an Affected Party will,

promptly
upon becoming aware of it, notify the other party, specifying the nature of that
Termination Event

and
each Affected Transaction, and will also give the other party such other
information about that

Termination
Event as the other party may reasonably require. If a Force Majeure Event
occurs, each party

will, promptly upon becoming aware of it, use all reasonable efforts to notify
the other party, specifying the

nature of that Force Majeure Event, and will also give the other party such
other information about that

Force Majeure Event as the other party may reasonably require.

 

(ii)     Transfer to Avoid Termination Event.  If a Tax Event occurs and there is only one
Affected Party

or if a Tax Event Upon Merger occurs and the Burdened Party is the Affected
Party, the Affected Party will,

as a condition to its right to designate an Early Termination Date under Section 6(b)(iv),
use all reasonable

efforts (which will not require such party to incur a loss, other than
immaterial, incidental expenses) to

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

Agreement in respect of the Affected Transactions to another of its Offices or
Affiliates so that such

Termination Event ceases to exist.

 

If the Affected Party is not able to make such a
transfer it will give notice to the other party to that effect

within such 20 day period, whereupon the other party may effect such a transfer
within 30 days after the

notice is given under Section 6(b)(i).

 

Any such transfer by a party under this Section 6(b)(ii) will
be subject to and conditional upon the prior

written consent of the other party, which consent will not be withheld if such
other party’s policies in effect

at such time would permit it to enter into Transactions with the transferee on
the

terms proposed.

 

(iii)    Two Affected Parties. If a Tax Event
occurs and there are two Affected Parties, each party will use

all reasonable efforts to reach agreement within 30 days after notice of such
occurrence is given under

Section 6(b)(i) to avoid that Termination Event.

 

 

11

 

(iv)    Right to Terminate.

 

(1)               If:—

 

(A)      a
transfer under Section 6(b)(ii) or an agreement under Section 6(b)(iii),
as the
  case may be, has not been effected with
respect to all Affected Transactions within 30 days
  after an Affected Party gives notice
under Section 6(b)(i); or

 

(B)       a
Credit Event Upon Merger or an Additional Termination Event occurs, or a Tax

Event Upon Merger occurs and the Burdened Party is not the Affected Party,

 

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

Tax Event or an Additional Termination Event if there are two Affected Parties,
or the Non-

affected Party in the case of a Credit Event Upon Merger or an Additional
Termination Event if

there is only one Affected Party may, if the relevant Termination Event is then
continuing, by not

more than 20 days notice to the other party, designate a day not earlier than
the day such notice is

effective as an Early Termination Date in respect of all Affected Transactions.

 

(2)     If at any time an Illegality or Force Majeure Event has occurred
and is then continuing

and any applicable Waiting Period has expired:—

 

(A)        Subject to clause (B) below, either party may, by not
more than 20 days notice to

the other party, designate (I) a day not earlier than the day on which
such notice becomes

effective as an Early Termination Date in respect of all Affected Transactions
or (II) by

specifying in that notice the Affected Transactions in respect of which it is
designating the

relevant day as an Early Termination Date, a day not earlier than two Local
Business Days

following the day on which such notice becomes effective as an Early
Termination Date in

respect of less than all Affected Transactions. 
Upon receipt of a notice designating an

Early Termination Date in respect of less than all Affected Transactions, the
other party

may, by notice to the designating party, if such notice is effective on or before
the day so

designated, designate that same day as an Early Termination Date in respect of
any or all

other Affected Transactions.

 

(b)         An Affected Party (if the Illegality or Force Majeure Event
relates to performance

by such party or any Credit Support Provider of such party of an obligation to
make any

payment or delivery under, or to compliance with any other material provision
of, the 

relevant Credit Support Document) will only have the right to designate an
Early

Termination Date under Section 6(b)(iv)(2)(A) as a result of an
Illegality under

Section 5(b)(i)(2) or a Force Majeure Event under Section 5(b)(ii)(2) following
the prior

designation by the other party of an Early Termination Date, pursuant to

Section 6(b)(iv)(2)(A), in respect of less than all Affected Transactions.

 

(c)           Effect of Designation.

 

(i)      If notice designating an Early Termination Date is given under Section 6(a) or
6(b), the Early

Termination Date will occur on the date so designated, whether or not the
relevant Event of Default or

Termination Event is then continuing.

 

(ii)     Upon the occurrence or effective designation of an Early
Termination Date, no further payments or

deliveries under Section 2(a)(i) or 9(h)(i) in respect of the
Terminated Transactions will be required to be

made, but without prejudice to the other provisions of this Agreement. The
amount,

if any, payable in respect of an Early Termination Date shall be determined
pursuant to Sections 6(e) and 9(h)(ii).

 

 

12

 

(d)           Calculations; Payment Date.

 

(i)      Statement.  On or as soon as reasonably practicable following the
occurrence of an Early

Termination Date, each party will make the calculations on its part, if any,
contemplated by Section 6(e) and

will
provide to the other party a statement (1) showing, in reasonable detail,
such calculations (including any

quotations,
market data or information from internal sources used in making such
calculations),

(2) specifying (except where there are two Affected Parties) any Early Termination
Amount payable and

(3) giving details of the relevant account to which any
amount payable to it is to be paid. In the absence of

written
confirmation from the source of a quotation or market data obtained in
determining a Close-out

Amount, the records of the party obtaining such quotation or market
data will be conclusive evidence of the

existence
and accuracy of such quotation or market data.

 

(ii)     Payment Date. An
Early Termination Amount due in respect of any Early Termination Date will,

together with any amount of interest payable pursuant to Section 9(h)(ii)(2),
be payable (1) on the day on

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

or occurs as a result of an Event of Default and (2) on the day which is
two Local Business Days after the

day on which notice of the amount payable is effective (or if there are two
Affected Parties, after the day on

which the statement provided pursuant to clause (i) above by the second
party to provide such a statement is

effective) in the case of an Early Termination Date which is designated as a
result of a Termination Event.

 

(e)           Payments on Early
Termination. If an Early
Termination Date occurs, the amount, if any, payable in

respect of that Early Termination Date (the “Early Termination Amount”) will be
determined pursuant to this

Section 6(e) and will be subject to Section 6(f).

 

(i)      Events of Default. If the Early Termination Date results from an Event of
Default, the Early

Termination Amount will be an amount equal to (1) the sum of (A) the
Termination Currency Equivalent of

the Close-out Amount or Close-out Amounts (whether positive or negative)
determined by the Non-

defaulting Party for each Terminated Transaction or group of Terminated Transactions,
as the case may be,

and (B) the Termination Currency Equivalent of the Unpaid Amounts owing to
the Non-defaulting Party less

(2) the Termination Currency Equivalent of the Unpaid Amounts owing to the
Defaulting Party. If the Early

Termination Amount is a
positive number, the Defaulting Party will pay it to the Non-defaulting Party;
if it

is a negative number, the Non-defaulting Party will pay the absolute value of
the Early Termination Amount

to the Defaulting Party.

 

(ii)     Termination Events.  If the Early Termination Date results from a
Termination Event:—

 

(1)      One Affected Party. Subject to
clause (3) below, if there is one Affected Party, the Early

Termination Amount will be determined in accordance with Section 6(e)(i),
except that references

to the Defaulting Party and to the Non-defaulting Party will be deemed to be
references to the

Affected Party and to the Non-affected Party, respectively.

 

(2)      Two Affected Parties. Subject to
clause (3) below, if there are two Affected Parties, each

party will determine an amount equal to the Termination Currency Equivalent of
the sum of the

Close-out Amount or Close-out Amounts (whether positive or negative) for each
Terminated

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

Amount will be an amount equal to (A) the sum of (I) one-half of the
difference between the higher

amount so determined (by party “X”) and the lower amount so determined (by
party “Y”) and

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

Termination Currency Equivalent of the Unpaid Amounts owing to Y.  If the Early Termination

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

value of the Early Termination Amount to Y.

 

 

13

 

(3)      Mid-Market Events. If that
Termination Event is an Illegality or a Force Majeure Event, 

then the Early Termination Amount will be determined in accordance with clause (1) or
(2) above, 

as appropriate, except that, for the purpose of determining a Close-out Amount
or Close-out 

Amounts, the Determining Party will:—

 

(A) if obtaining quotations
from one or more third parties (or from any of the 

Determining Party’s Affiliates), ask each third party or Affiliate (I) not
to take account of

the current creditworthiness of the Determining Party or any existing Credit
Support

Document and (II) to provide mid-market quotations; and

 

(B)   in any other case, use mid market values without regard to the
creditworthiness of

the Determining Party.

 

(iii)    Adjustment for Bankruptcy. In circumstances where an Early Termination Date occurs
because

Automatic Early Termination applies in respect of a party, the Early
Termination Amount will be subject to

such adjustments as are appropriate and permitted by law to reflect any
payments or deliveries

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

from the relevant Early Termination Date to the date for payment determined
under Section 6(d)(ii).

 

(iv)   Adjust for Illegality or Force Majeure Event. The failure by a
party or any Credit Support

Provider of such party to pay, when due, any Early Termination Amount will not
constitute an Event of

Default under Section 5(a)(i) or 5(a)(iii)(1) if such failure is
due to the occurrence of an event or

circumstance which would, if it occurred with respect to payment, delivery or
compliance related to a

Transaction, constitute or give rise to an Illegality or a Force Majeure
Event.  Such amount will (1) accrue

interest and otherwise be treated as an Unpaid Amount owing to the other party
if subsequently an Early

Termination Date results from an Event of Default, a Credit Event Upon Merger
or an Additional

Termination Event in respect of which all outstanding Transactions are Affected
Transactions and

(2) otherwise accrue interest in accordance with Section 9(h)(ii)(2).

 

(v)     Pre-Estimate. The parties agree that an amount recoverable under this Section 6(e) is
a reasonable

pre-estimate of loss and not a penalty. Such amount is payable for the loss of
bargain and the loss of

protection against future risks and except as otherwise provided in this
Agreement, neither party will be

entitled to recover any additional damages as a consequence of the termination
of the Terminated

Transactions.

 

(f)            Set-Off.  Any Early Termination Amount
payable to one party (the “Payee”) by the other party (the

“Payer”), in circumstances where there is a Defaulting Party or where there is
one Affected Party in the case where

either a Credit Event Upon Merger has occurred or any other Termination Event
in respect of which all outstanding

Transactions are Affected Transactions has occurred, will, at the option of the
Non-defaulting Party or the Non-

affected Party, as the case may be (“X”) (and without prior notice to the
Defaulting Party or the Affected Party, as the

case may be), be reduced by its set-off against any other amounts (“Other
Amounts”) payable by the Payee to the

Payer (whether or not arising under this Agreement, matured or contingent and
irrespective of the currency, place of

payment or place of booking of the obligation). 
To the extent that any Other Amounts are so set off, those Other

Amounts will be discharged promptly and in all respects.  X will give notice to the other party of any
set-off effected

under this Section 6(f).

 

For this purpose, either the
Early Termination Amount or the Other Amounts (or the relevant portion of such

amounts) may be converted by X into the currency in which the other is
denominated at the rate of exchange at which

such party would be able, in good faith and using commercially reasonable
procedures, to purchase the relevant

amount of such currency.

 

 

14

 

 

If an
obligation is unascertained, X may in good faith estimate that obligation and
set off in respect of the estimate,

subject to the relevant party accounting to the other when
the obligation is ascertained.

 

Nothing in
this Section 6(f) will be effective to create a charge or other
security interest.  This Section 6(f) will
be

without prejudice and in addition to any right of set-off,
offset, combination of accounts, lien, right of retention or

withholding or similar right or requirement to which any party
is at any time otherwise entitled or subject (whether by

operation of law, contract or otherwise).

 

7.             Transfer

 

Subject to Section 6(b)(ii),
and to the extent permitted by applicable law, neither this Agreement nor any
interest or

obligation in or under this Agreement may be transferred (whether by way of
security or otherwise) by either party

without the prior written consent of the other party, except that:—

 

(a)           a party may make such a transfer of this Agreement
pursuant to a consolidation or amalgamation with, or

merger with or into, or transfer of all or substantially all its assets to,
another entity (but without prejudice to any

other right or remedy under this Agreement); and

 

(b)           a party may make such a transfer of all or any part of its
interest in any Early Termination Amount payable

to it by a Defaulting Party, together with any amounts payable on or with
respect to that interest and any other rights

associated with that interest pursuant to Sections 8, 9(h) and 11.

 

Any purported transfer that is
not in compliance with this Section 7 will be void.

 

8.             Contractual Currency

 

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

currency specified in this Agreement for
that payment (the “Contractual Currency”). To the extent permitted by

applicable law, any obligation to make
payments under this Agreement in the Contractual Currency will not be

discharged or satisfied by any tender in any
currency other than the Contractual Currency, except to the extent such

tender results in the actual receipt by the
party to which payment is owed, acting in good faith and using

commercially reasonable procedures in converting the currency so tendered into
the Contractual Currency, of the full

amount in the Contractual Currency of all
amounts payable in respect of this Agreement. If for any reason the

amount in the Contractual Currency so
received falls short of the amount in the Contractual Currency payable in

respect of this Agreement, the party
required to make the payment will, to the extent permitted by applicable law,

immediately pay such additional amount in
the Contractual Currency as may be necessary to compensate for the

shortfall. If for any reason the amount in
the Contractual Currency so received exceeds the amount in the Contractual

Currency payable in respect of this
Agreement, the party receiving the payment will refund promptly the amount of

such excess.

 

(b)           Judgments. To the extent permitted by applicable law, if any judgment
or order expressed in a currency

other than the Contractual Currency is
rendered (i) for the payment of any amount owing in respect of this

Agreement, (ii) for the payment of any
amount relating to any early termination in respect of this Agreement or (iii) in

respect of a judgment or order of another
court for the payment of any amount described in (i) or (ii) above,

the party seeking recovery, after recovery
in full of the aggregate amount to which such party is entitled pursuant to

the judgment or order, will be entitled to
receive immediately from the other party the amount of any shortfall of the

Contractual Currency received by such party
as a consequence of sums paid in such other currency and will refund

promptly to the other party any excess of
the Contractual  Currency received by
such party as a consequence of sums

paid in such other currency if such
shortfall or such excess arises or results from any variation between the rate
of

exchange at which the Contractual Currency
is converted into the currency of the judgment or order for the purpose

of such judgment or order and the rate of
exchange at which such party is able, acting in good faith and using

 

 

15

commercially reasonable
procedures in converting the currency received into the Contractual Currency,
to purchase

the Contractual Currency with the amount of
the currency of the judgment or order actually received by such party.

 

 (c)          Separate Indemnities. To the extent
permitted by applicable law, the indemnities in this Section 8

constitute separate and independent
obligations from the other obligations in this Agreement, will be enforceable
as

separate and independent causes of action, will apply notwithstanding any
indulgence granted by the party to which

any payment is owed and will not be affected
by judgment being obtained or claim or proof being made for any other

sums payable in respect of this Agreement.

 

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

would have suffered a loss had an actual
exchange or purchase been made.

 

9.             Miscellaneous

 

(a)           Entire Agreement. This Agreement constitutes the entire agreement and
understanding of the parties with

respect to its subject matter. Each of the
parties acknowledges that in entering into this Agreement it has not relied

on any oral or written representation, warranty or other assurance (except as
provided for or referred to in this

Agreement) and waives all rights and
remedies which might otherwise be available to it in respect thereof, except
that

nothing in this Agreement will limit or
exclude any liability of a party for fraud.

 

(b)           Amendments. An amendment, modification or waiver in respect of this
Agreement will only be effective if

in writing (including a writing evidenced by a facsimile transmission) and
executed by each of the parties or

confirmed by an exchange of telexes or by an
exchange of electronic messages on an electronic messaging system.

 

(c)           Survival of Obligations. Without prejudice to Sections 2(a)(iii) and 6(c)(ii),
the obligations of the parties

under this Agreement will survive the
termination of any Transaction.

 

(d)           Remedies Cumulative. Except as provided in this Agreement, the rights, powers,
remedies and privileges

provided in this Agreement are cumulative
and not exclusive of any rights, powers, remedies and privileges provided

by law.

 

(e)           Counterparts and
Confirmations.

 

(i)      This Agreement (and each amendment, modification and waiver in
respect of it) may be executed

and
delivered in counterparts (including by facsimile transmission and by
electronic messaging system), each

of
which will be deemed an original.

 

(ii)     The parties intend that they are legally bound by the terms of
each Transaction from the moment

they agree to those terms (whether orally or otherwise). A Confirmation shall
be entered into as soon as

practicable
and may be executed and delivered in counterparts (including by facsimile
transmission) or be

created
by an exchange of telexes, by an exchange of electronic messages on an
electronic messaging system

or
by an exchange of e-mails, which in each case will be sufficient for all
purposes to evidence a binding

supplement
to this Agreement. The parties will specify therein or through another
effective means that any

such
counterpart, telex or electronic message or e-mail constitutes a Confirmation.

 

(f)            No Waiver of Rights. A failure or delay in exercising any right, power or
privilege in respect of this

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

privilege will not be presumed to preclude
any subsequent or further exercise, of that right, power or privilege or the

exercise of any other right, power or
privilege.

 

(g)           Headings. The headings used in this Agreement are for convenience of
reference only and are not to affect

the construction of or to be taken into
consideration in interpreting this Agreement.

 

 

16

 

(h)           Interest and Compensation.

 

                                                (i)            Prior to Early
Termination. Prior to the occurrence or effective designation of
an Early

Termination Date in respect of the relevant Transaction:—

 

                                                                                                (1)           Interest on Defaulted
Payments. If a party defaults in the performance of any payment

obligation, it will, to the extent permitted by applicable law and subject to Section 6(c),
pay interest

(before as well as after judgment) on the overdue amount to the other party on
demand in the same

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

payment to (but excluding) the date of actual payment (and excluding any period
in respect of

which interest or compensation in respect of the overdue amount is due pursuant
to clause (3)(B) or

(C) below), at the Default Rate.

 

                                                                                                (2)           Compensation for Defaulted
Deliveries. If a party defaults in the performance of any

obligation required to be settled by delivery, it will on demand (A) compensate
the other party to

the extent provided for in the relevant Confirmation or elsewhere in this
Agreement and (B) unless

otherwise provided in the relevant Confirmation or elsewhere in this Agreement,
to the extent

permitted by applicable law and subject to Section 6(c), pay to the other
party interest (before as

well as after judgment) on an amount equal to the fair market value of that
which was required to be

delivered in the same currency as that amount, for the period from (and
including) the originally

scheduled date for delivery to (but excluding) the date of actual delivery (and
excluding any period

in respect of which interest or compensation in respect of that amount is due
pursuant to clause (4)

below), at the Default Rate. The fair market value of any obligation referred
to above will be

determined as of the originally scheduled date for delivery, in good faith and
using commercially

reasonable procedures, by the party that was entitled to take delivery.

 

                                                                                                (3)           Interest on Deferred
Payment. If:—

 

(A)          a party does not pay
any amount that, but for Section 2(a)(iii), would have been

payable, it will, to the extent permitted by applicable law and subject to Section 6(c) and

clauses (B) and (C) below, pay interest (before as well as after
judgment) on that amount

to the other party on demand (after such amount becomes payable) in the same
currency as

that amount, for the period from (and including) the date the amount would, but
for

Section 2(a)(iii), have been payable to (but excluding) the date the
amount actually

becomes payable, at the Applicable Deferral Rate;

 

(B)           a payment is deferred
pursuant to Section 5(d), the party which would otherwise

have been required to make that payment will, to the extent permitted by
applicable law,

subject to Section 6(c) and for so long as no Event of Default or
Potential Event of Default

with respect to that party has occurred and is continuing, pay interest
(before  as well as

after judgment) on the amount of the deferred payment to the other party on
demand (after

such amount becomes payable) in the same currency as the deferred payment, for
the

period from (and including) the date the amount would, but for Section 5(d),
have been

payable to (but excluding) the earlier of the date the payment is no longer
deferred

pursuant to Section 5(d) and the date during the deferral period upon
which an Event of

Default or Potential Event of Default with respect to that party occurs, at the
Applicable

Deferral Rate; or

 

(C)           a party fails to make
any payment due to the occurrence of an Illegality or a Force

Majeure Event (after giving effect to any deferral period contemplated by
clause (B)

above), it will, to the extent permitted by applicable law, subject to Section 6(c) and
for so

long as the event or circumstance giving rise to that Illegality or Force Majeure
Event

 

 

17

 

continues and no Event of Default or Potential Event of Default with
respect to that party

has occurred and is continuing, pay interest (before as well as after judgment)
on the

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

for the period from (and including) the date the party fails to make the
payment due to the

occurrence of the relevant Illegality or Force Majeure Event (or, if later, the
date the

payment is no longer deferred pursuant to Section 5(d)) to (but excluding)
the earlier of the

date the event or circumstance giving rise to that Illegality or Force Majeure
Event ceases

to exist and the date during the period upon which an Event of Default or
Potential Event

of Default with respect to that party occurs (and excluding any period in
respect of which

interest or compensation in respect of the overdue amount is due pursuant to
clause (B)

above), at the Applicable Deferral Rate.

 

                                                                                                (4)           Compensation for Deferred
Deliveries. If:—

 

(A)          a party does not
perform any obligation that, but for Section 2(a)(iii), would have

been required to be settled by delivery;

 

(B)           a delivery is
deferred pursuant to Section 5(d); or

 

(C)           a party fails to make
a delivery due to the occurrence of an Illegality or a Force

Majeure Event at a time when any applicable Waiting Period has expired,

 

                                                                                                the party required
(or that would otherwise have been required) to make the delivery will, to the

extent permitted by applicable law and subject to Section 6(c), compensate
and pay interest to the

other party on demand (after, in the case of clauses (A) and (B) above,
such delivery is required) if

and to the extent provided for in the relevant Confirmation or elsewhere in
this Agreement

 

                                                (ii)           Early Termination.
Upon the occurrence or effective designation of an Early Termination Date in

respect of a Transaction:—

 

                                                                                                (1)           Unpaid Amounts. For
the purpose of determining an Unpaid Amount in respect of the

relevant Transaction, and to the extent permitted by applicable law, interest
will accrue on the

amount of any payment obligation or the amount equal to the fair market value
of any obligation

required to be settled by delivery included in such determination the same
currency as that

amount, for the period from (and including) the date the relevant obligation
was (or would have

been but for Section 2(a)(iii) or 5(d)) required to have been
performed to (but excluding) the

relevant Early Termination Date, at the Applicable Close-out Rate.

 

                                                                                                (2)           Interest on Early
Termination Amounts. If an Early Termination Amount is due in
respect

of such Early Termination Date, that amount will, to the extent permitted by
applicable law, be paid

together with interest (before as well as after judgment) on that amount in the
Termination

Currency, for the period from (and including) such Early Termination Date to
(but excluding) the

date the amount is paid, at the Applicable Close-out Rate.

 

                                                (iii)          Interest Calculation.  Any interest pursuant to this Section 9(h) will
be calculated on the basis of

daily compounding and the actual number of days elapsed.

 

 

18

 

 10.         Offices;
Multibranch Parties

 

(a)           If Section 10(a) is specified in the Schedule as
applying, each party that enters into a Transaction through an

Office other than its head or home office represents to and agrees with the
other party that, notwithstanding the place

of booking office or its jurisdiction of incorporation or organisation, its
obligations are the same in terms of recourse against

it as if it had entered into the Transaction through its head or home office,
except that a party will not have recourse

to the head or home office of the other party in respect of any payment or
delivery deferred pursuant to Section 5(d)

for so long as the payment or delivery is so deferred. This representation and
agreement will be deemed to be

repeated by each party on each date on which the parties enter into a
Transaction.

 

 (b)          If
a party is specified as a Multibranch Party in the Schedule, such party may,
subject to clause (c) below,

enter into a Transaction through, book a Transaction in and make and receive
payments and deliveries with respect to

a Transaction through any Office listed in respect of that party in the
Schedule (but not any other Office unless

otherwise agreed by the parties in writing).

 

(c)           The Office through which a party enters into a Transaction
will be the Office specified for that party in the

relevant Confirmation or as otherwise agreed by the parties in writing, and, if
an Office for that party is not specified

in the Confirmation or otherwise agreed by the parties in writing, its head or
home office. Unless the parties

otherwise agree in writing, the Office through which a party enters into a
Transaction will also be the Office in which

it books the Transaction and the Office through which it makes and receives
payments and deliveries with respect to

the Transaction. Subject to Section 6(b)(ii), neither party may change the
Office in which it books the Transaction or

the Office through which it makes and receives payments or deliveries with
respect to a Transaction without the prior

written consent of the other party.

 

11.          Expenses

 

A Defaulting Party will on demand
indemnify and hold harmless the other party for and against all reasonable
out-of-pocket expenses, including legal fees, execution fees and Stamp Tax,
incurred by such other party by reason of the

enforcement and protection of its rights under this Agreement or any Credit
Support Document to which the

Defaulting Party is a party or by reason of the early termination of any
Transaction, including, but not limited to, 

costs of collection.

 

12.          Notices

 

(a)           Effectiveness. Any notice or other communication in respect of this
Agreement may be given in any manner

described below (except that a notice or other communication under Section 5
or 6 may not be given by electronic

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

e-mail details provided (see the Schedule) and will be deemed effective as
indicated:—

 

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

 

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

 

(iii)    if sent by facsimile transmission, on the date it is received by
a responsible employee of the

recipient in legible form (it being agreed that the burden of proving receipt
will be on the sender and will not

be met by a transmission report generated by the sender’s facsimile machine);

 

(iv)    if sent by certified or registered mail (airmail, if overseas) or
the equivalent (return receipt

requested), on the date it is delivered or its delivery is attempted;

 

(v)     if sent by electronic messaging system, on the date it is
received, or

 

 

19

 

(vi)    if sent by e-mail, on the date it is delivered,

 

unless the date of that delivery
(or attempted delivery) or that receipt, as applicable, is not a Local Business
Day or

that communication is delivered (or attempted) or received, as applicable,
after the close of business on a Local

Business Day, in which case that communication will be deemed given and
effective on the first following day that is

a Local Business Day.

 

(b)           Change of Details. Either party may by notice to the other change the
address, telex or facsimile number or

electronic messaging system or e-mail details at which notices or other
communications are to be given to it.

 

13.          Governing Law and Jurisdiction

 

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

specified in the Schedule.

 

(b)           Jurisdiction. With respect to any suit, action or proceedings relating
to any dispute arising out of or in

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

 

(i)      submits:—

 

(1)         if this Agreement is expressed to be governed by English
law, to (A) the non-exclusive

jurisdiction of the English courts if the Proceedings do not involve a
Convention Court and (B) the

exclusive jurisdiction of the English courts if the Proceedings do involve a
Convention Court; or

 

(2)         if this Agreement is expressed to be governed by the laws of
the State of New York, to the

non-exclusive jurisdiction of the courts of the State of New York and the
United States District

Court located in the Borough of Manhattan in New York City.

 

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

brought in any such court, waives any claim that such Proceedings have been
brought in an inconvenient

forum and further waives the right to object, with respect to such Proceedings,
that such court does not have

any jurisdiction over such party; and

 

(iii)    agrees, to the extent permitted by applicable law, that the
bringing of Proceedings in any one or

more jurisdictions will not preclude the bringing of Proceedings in any other
jurisdiction.

 

(c)           Service of Process. Each party irrevocably appoints the Process Agent (if any)
specified opposite its name

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

party’s Process Agent is unable to act as such, such party will promptly notify
the other party and within 30 days

appoint a substitute process agent acceptable to the other party. The parties
irrevocably consent to service of process

given in the manner provided for notices in Section 12(a)(i), 12(a)(iii) or
12(a)(iv). Nothing in this Agreement will

affect the right of either party to serve process in any other manner permitted
by applicable law.

 

(d)           Waiver of Immunities. Each party irrevocably waives, to the extent permitted by
applicable law, with

respect to itself and its revenues and assets (irrespective of their use or
intended use), all immunity on the grounds of

sovereignty or other similar grounds from (i) suit, (ii) jurisdiction
of any court, (iii) relief by way of injunction, or

order for specific performance or recovery of property, (iv) attachment of
its assets (whether before or after

judgment) and (v) execution or enforcement of any judgment to which it or
its revenues or assets might otherwise be

entitled in any Proceedings in the courts of any jurisdiction and irrevocably
agrees, to the extent permitted by

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

 

 

20

 

14.          Definitions

 

As used in this Agreement:—

 

“Additional
Representation” has the meaning specified in Section 3.

 

“Additional Termination
Event” has the meaning specified in Section 5(b).

 

“Affected Party” has the meaning
specified in Section 5(b).

 

“Affected Transactions” means (a) with
respect to any Termination Event consisting of an Illegality, Force Majeure

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

(which, in the case of an Illegality under Section 5(b)(i)(2) or a
Force Majeure Event under Section 5(b)(ii)(2), means

all Transactions unless the relevant Credit Support Document references only
certain Transactions, in which case

those Transactions and, if the relevant Credit Support Document constitutes a
Confirmation for a Transaction, that

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

 

“Affiliate” means, subject to
the Schedule, in relation to any person, any entity controlled, directly or
indirectly, by

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

control with the person. For this purpose, “control” of any entity or person
means ownership of a majority of the

voting power of the entity or person.

 

“Agreement” has the meaning
specified in Section 1(c).

 

“Applicable Close-out
Rate” means:—

 

(a)     in respect of the determination of an
Unpaid Amount:—

 

(i)          in respect of obligations payable or deliverable (or which
would have been but for Section 2(a)(iii))

by a Defaulting Party, the Default Rate;

 

(ii)         in respect of obligations payable or deliverable (or which
would have been but for Section 2(a)(iii)) 

by a Non-defaulting Party, the Non-default Rate;

 

(iii)        in respect of obligations deferred pursuant to Section 5(d),
if there is no Defaulting Party and for so

long as the deferral period continues, the Applicable Deferral Rate; and

 

(iv)        in all other cases following the occurrence of a Termination
Event (except where interest accrues

pursuant to clause (iii) above), the Applicable Deferral Rate; and

 

(b)     in respect of an Early Termination Amount:—

 

(i)          for the period from (and including) the relevant Early
Termination Date to (but excluding) the date

(determined in accordance with Section 6(d)(ii)) on which that amount is
payable:—

 

(1)           if the Early Termination Amount is payable by a Defaulting
Party, the Default Rate;

 

(2)           if the Early Termination Amount is payable by a
Non-defaulting Party, the Non-default

Rate; and

 

(3)           in all other cases, the Applicable Deferral Rate; and

 

 

 

21

 

 

(ii)         for the period from (and including) the date (determined in
accordance with Section 6(d)(ii)) on

which that amount is payable to (but excluding) the date of actual payment:—

 

(1)           if a party fails to pay the Early Termination Amount due
to the occurrence of an event or

circumstance which would, if it occurred with respect to a payment or delivery
under a Transaction,

constitute or give rise to an Illegality or a Force Majeure Event, and for so
long as the Early

Termination Amount remains unpaid due to the continuing existence of such event
or circumstance,

the Applicable Deferral Rate;

 

(2)           if the Early Termination Amount is payable by a Defaulting
Party (but excluding any

period in respect of which clause (1) above applies), the Default Rate;

 

(3)           if the Early Termination Amount is payable by a
Non-defaulting Party (but excluding any

period in respect of which clause (1) above applies), the Non-default
Rate; and

 

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

 

“Applicable Deferral Rate” means:—

 

(a)           for the purpose of Section 9(h)(i)(3)(A),
the rate certified by the relevant payer to be a rate offered to the

payer by a major bank in a relevant interbank market for overnight deposits in
the applicable currency, such bank to

be selected in good faith by the payer for the purpose of obtaining a
representative rate that will reasonably reflect 

conditions prevailing at the time in that relevant market;

 

(b)           for purposes of Section 9(h)(i)(3)(B) and
clause (a)(iii) of the definition of Applicable Close-out Rate, the

rate certified by the relevant payer to be a rate offered to prime banks by a
major bank in a relevant interbank market

for overnight deposits in the applicable currency, such bank to be selected in
good faith by the payer after

consultation with the other party, if practicable, for the purpose of obtaining
a representative rate that will reasonably

reflect conditions prevailing at the time in that relevant market; and

 

(c)           for purposes of Section 9(h)(i)(3)(C) and
clauses (a)(iv), (b)(i)(3) and (b)(i)(3) and (b)(ii)(1) of the
definition of

Applicable Close-out Rate, a rate equal to the arithmetic mean of the rate
determined pursuant to clause (a) above and a rate per annum equal to the
cost (without proof or evidence of any actual cost) to the relevant payee (as
certified by it) if it were to fund or of funding the relevant amount.

 

“Automatic Early Termination” has the meaning specified in Section 6(a).

 

“Burdened Party” has the meaning
specified in Section 5(b)(iv).

 

“Change in Tax Law” means the
enactment, promulgation, execution or ratification of, or any change in or

amendment to, any law (or in the application or official interpretation of any
law) that occurs on or after the parties enter

into the relevant Transaction.

 

“Close-out Amount” means, with respect
to each Terminated Transaction or each group of Terminated Transactions

and a Determining Party, the amount of the losses or costs of the Determining
Party that are or would be incurred

under then prevailing circumstances (expressed as a positive number) or gains
of the Determining Party that are or

would be realised under then prevailing circumstances (expressed as a negative
number) in replacing, or in providing

for the Determining Party the economic equivalent of, (a) the material
terms of that Terminated Transaction or group

of Terminated Transactions, including the payments and deliveries by the
parties under Section 2(a)(i) in respect of

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

Early Termination Date, have been required after that date (assuming
satisfaction of the conditions precedent in

 

 

22

 

Section 2(a)(iii) and (b) the
option rights of the parties in respect of that Terminated Transaction or group
of

Terminated Transactions.

 

Any Close-out Amount will be
determined by the Determining Party (or its agent), which will act in good
faith and

use commercially reasonable procedures in order to produce a commercially
reasonable result. The Determining

Party may determine a Close-out Amount for any group of Terminated Transactions
or any individual Terminated

Transaction but, in the aggregate, for not less than all Terminated
Transactions. Each Close-out Amount will be

determined as of the Early Termination Date or, if that would not be commercially
reasonable, as of the date or dates

following the Early Termination Date as would be commercially reasonable.

 

Unpaid Amounts in respect of a
Terminated Transaction or group of Terminated Transactions and legal fees and
out-

of-pocket expenses referred to in Section 11 are to be excluded in all
determinations of Close-out Amounts.

 

In determining a Close-out
Amount, the Determining Party may consider any relevant information, including,
without

limitation, one or more of the following types of information:—

 

(i)            quotations (either firm or indicative) for replacement
transactions supplied by one or more third parties that

may take into account the creditworthiness of the Determining Party at the time
the quotation is provided and the

terms of any relevant documentation, including credit support documentation,
between the Determining Party and the

third party providing the quotation;

 

(ii)           information consisting of relevant market data in the
relevant market supplied by one or more third parties

including, without limitation, relevant rates, prices, yields, yield curves,
volatilities, spreads, correlations or other

relevant market data in the relevant market; or

 

(iii)          information of the types described in clause (i) or (ii) above
from internal sources (including any of the

Determining Party’s Affiliates) if that information is of the same type used by
the Determining Party in the regular

course of its business for the valuation of similar transactions.

 

The Determining Party will
consider, taking into account the standards and procedures described in this
definition,

quotations pursuant to clause (i) above or relevant market data pursuant
to clause (ii) above unless the Determining

Party reasonably believes in good faith that such quotations or relevant market
data are not readily available or would

produce a result that would not satisfy those standards. When considering
information described in clause (i), (ii) or

(iii) above, the Determining Party may include costs of funding, to the
extent costs of funding are not and would not

be a component of the other information being utilised. Third parties supplying
quotations pursuant to clause (i)

above or market data pursuant to clause (ii) above may include, without
limitation, dealers in the relevant markets,

end-users of the relevant product, information vendors, brokers and other
sources of market information.

 

Without duplication of amounts
calculated based on information described in clause (i), (ii) or (iii) above,
or other

relevant information, and when it is commercially reasonable to do so, the
Determining Party may in addition

consider in calculating a Close-out Amount any loss or cost incurred in
connection with its terminating, liquidating or

re-establishing any hedge related to a Terminated Transaction or group of
Terminated Transactions (or any gain

resulting from any of them).

 

Commercially reasonable
procedures used in determining a Close-out Amount may include the following:—

 

(1)           application to relevant market data from third parties
pursuant to clause (ii) above or information from

internal sources pursuant to clause (iii) above of pricing or other
valuation models that are, at the time of the

determination of the Close-out Amount, used by the Determining Party in the
regular course of its business in pricing

or valuing transactions between the Determining Party and unrelated third
parties that are similar to the Terminated

Transaction or group of Terminated Transactions; and

 

 

23

 

(2)           application of different valuation methods to Terminated
Transactions or groups of Terminated Transactions

depending on the type, complexity, size or number of the Terminated
Transactions or group of Terminated

Transactions.

 

“Confirmation” has the meaning
specified in the preamble.

 

“consent” includes a consent,
approval, action, authorisation, exemption, notice, filing, registration or
exchange

control consent.

 

“Contractual Currency” has the meaning
specified in Section 8(a).

 

“Convention Court” means any court
which is bound to apply to the Proceedings either Article 17 of the 1968

Brussels Convention on Jurisdiction and the Enforcement of Judgments in Civil
and Commercial Matters or

Article 17 of the 1988 Lugano Convention on Jurisdiction and the
Enforcement of Judgments in Civil and

Commercial Matters.

 

“Credit Event Upon Merger” has the meaning
specified in Section 5(b).

 

“Credit Support Document” means any agreement
or instrument that is specified as such in this Agreement.

 

“Credit Support Provider” has the meaning
specified in the Schedule.

 

“Cross-Default” means the event
specified in Section 5(a)(vi).

 

“Default Rate” means a rate per
annum equal to the cost (without proof or evidence of any actual cost) to the

relevant payee (as certified by it) if it were to fund or of funding the
relevant amount plus 1% per annum.

 

“Defaulting Party” has the meaning
specified in Section 6(a).

 

“Designated Event” has the meaning
specified in Section 5(b)(v).

 

“Determining Party” means the party
determining a Close-out Amount.

 

“Early Termination Amount”
has the meaning specified in Section 6(e).

 

“Early Termination Date” means the date
determined in accordance with Section 6(a) or 6(b)(iv).

 

“electronic messages” does not include
e-mails but does include documents expressed in markup languages, and

“electronic messaging system” will
be construed accordingly.

 

“English Law” means the law of
England and Wales, and “English” will
be construed accordingly.

 

“Event of Default” has the meaning
specified in Section 5(a) and, if applicable, in the Schedule.

 

“Force Majeure Event” has the meaning
specified in Section 5(b).

 

“General Business Day” means a day on which
commercial banks are open for general business (including dealings

in foreign exchange and foreign currency deposits).

 

“Illegality” has the meaning
specified in Section 5(b).

 

 

24

 

“Indemnifiable Tax” means any Tax other
than a Tax that would not be imposed in respect of a payment under this

Agreement but for a present or former connection between the jurisdiction of
the government or taxation authority

imposing such Tax and the recipient of such payment or a person related to such
recipient (including, without

limitation, a connection arising from such recipient or related person being or
having been a citizen or resident of

such jurisdiction, or being or having been organised, present or engaged in a
trade or business in such jurisdiction, or

having or having had a permanent establishment or fixed place of business in
such jurisdiction, but excluding a

connection arising solely from such recipient or related person having
executed, delivered, performed its obligations

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

 

“law” includes any treaty,
law, rule or regulation (as modified, in the case of tax matters, by the
practice of any

relevant governmental revenue authority) and “unlawful”
will be construed accordingly.

 

“Local Business Day” means, (a) in
relation to any obligation under Section 2(a)(i), a General Business Day
in the

place or places specified in the relevant Confirmation and a day on which a
relevant settlement system is open or

operating as specified in the relevant Confirmation or, if a place or a
settlement system is not so specified, as

otherwise agreed by the parties in writing or determined pursuant to provisions
contained, or incorporated by

reference, in this Agreement, (b) for the purpose of determining when a
Waiting Period expires, a General Business

Day in the place where the event or circumstance that constitutes or gives rise
to the Illegality or Force Majeure

Event, as the case may be, occurs, (c) in relation to any other payment, a
General Business Day in the place where the

relevant account is located and, if different, in the principal financial
centre, if any, of the currency of such payment,

and, if that currency does not have a single recognised principal financial
centre, a day on which the settlement

system necessary to accomplish such payment is open, (d) in relation to
any notice or other communication, including

notice contemplated under Section 5(a)(i), a General Business Day (or a
day that would have been a General

Business Day but for the occurrence of an event or circumstance which would, if
it occurred with respect to payment,

delivery or compliance related to a Transaction, constitute or give rise to an
Illegality or a Force Majeure Event) in

the place specified in the address for notice provided by the recipient and, in
the case of a notice contemplated by

Section 2(b), in the place where the relevant new account is to be located
and (e) in relation to Section 5(a)(v)(2), a

General Business Day in the relevant locations for performance with respect to
such Specified Transaction.

 

“Local Delivery Day” means, for purposes
of Sections 5(a)(i) and 5(d), a day on which settlement systems necessary

to accomplish the relevant delivery are generally open for business so that the
delivery is capable of being

accomplished in accordance with customary market price, in the place specified
in the relevant Confirmation or, if

not so specified, in a location as determined in accordance with customary
market practice for the relevant delivery.

 

“Master Agreement” has the meaning
specified in the preamble.

 

“Merger Without Assumption”
means the event specified in Section 5(a)(viii).

 

“Multiple Transaction
Payment Netting” has the meaning specified in Section 2(c).

 

“Non-affected Party” means, so long as
there is one Affected Party, the other party.

 

“Non-default Rate” means the rate
certified by the Non-defaulting Party to be a rate offered to the
Non-defaulting

Party by a major bank in a relevant interbank market for overnight deposits in
the applicable currency, such bank to

be selected in good faith by the Non-defaulting Party for the purpose of
obtaining a representative rate that will

reasonably reflect conditions prevailing at the time in that relevant market.

 

“Non-defaulting Party” has the meaning
specified in Section 6(a).

 

“Office” means a branch or
office of a party, which may be such party’s head or home office.

 

“Other Amounts” has the meaning
specified in Section 6(f).

 

 

25

 

“Payee” has the meaning
specified in Section 6(f).

 

“Payer” has the meaning
specified in Section 6(f).

 

“Potential Event of
Default” means any event which, with the giving of notice or the
lapse of time or both, would

constitute an Event of Default.

 

“Proceedings” has the meaning
specified in Section 13(b).

 

“Process Agent” has the meaning
specified in the Schedule.

 

“rate of exchange” includes, without
limitation, any premiums and costs of exchange payable in connection with the

purchase of or conversion into the Contractual Currency.

 

“Relevant Jurisdiction” means, with respect
to a party, the jurisdictions (a) in which the party is incorporated,

organised, managed and controlled or considered to have its seat, (b) where
an Office through which the party is

acting for purposes of this Agreement is located, (c) in which the party
executes this Agreement and (d) in relation to

any payment, from or through which such payment is made.

 

“Schedule” has the meaning
specified in the preamble.

 

“Scheduled Settlement
Date” means a date on which a payment or delivery is to be
made under Section 2(a)(i) with

respect to a Transaction.

 

“Specified Entity” has the meaning
specified in the Schedule.

 

“Specified Indebtedness” means, subject to
the Schedule, any obligation (whether present or future, contingent or

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

 

“Specified Transaction” means, subject to
the Schedule, (a) any transaction (including an agreement with respect to

any such transaction) now existing or hereafter entered into between one party
to this Agreement (or any Credit

Support
Provider of such party or any applicable Specified Entity of such party) and
the other party to this Agreement

(or
any Credit Support Provider of such other party or any applicable Specified
Entity of such other party) which is

not a Transaction under this Agreement but (i) which is a rate swap
transaction, swap option, basis swap, forward rate

transaction,
commodity swap, commodity option, equity or equity index swap, equity or equity
index option, bond

option,
interest rate option, foreign exchange transaction, cap transaction, floor
transaction, collar transaction,

currency
swap transaction, cross-currency rate swap transaction, currency option, credit
protection transaction, credit

swap, credit default swap, credit default option, total return swap, credit
spread transaction, repurchase transaction,

reverse repurchase transaction, buy/sell-back transaction, securities lending
transaction, weather index transaction or

forward purchase or sale of a security, commodity or other financial instrument
or interest (including any option with

respect to any of these transactions) or (ii) which is a type of
transaction that is similar to any transaction referred to

in clause (i) above that is currently, or in the future becomes,
recurrently entered into in the financial markets

(including terms and conditions incorporated by reference in such agreement)
and which is a forward, swap, future,

option or other derivative on one or more rates, currencies, commodities,
equity securities or other equity

instruments, debt securities or other debt instruments, economic indices or
measures of economic risk or value, or

other benchmarks against which payments or deliveries are to be made, (b) any
combination of these transactions and

(c) any other transaction identified as a Specified Transaction in this
Agreement or the relevant confirmation.

 

“Stamp Tax” means any stamp,
registration, documentation or similar tax.

 

“Stamp Tax Jurisdiction” has the meaning
specified in Section 4(e).

 

 

26

 

“Tax” means any present
or future tax, levy, impost, duty, charge, assessment or fee of any nature
(including interest,

penalties and additions thereto) that is imposed by any government or other
taxing authority in respect of any

payment under this Agreement other than a stamp, registration, documentation or
similar tax.

 

“Tax Event” has the meaning
specified in Section 5(b).

 

“Tax Event Upon Merger” has the meaning
specified in Section 5(b).

 

“Terminated Transactions” means with respect
to any Early Termination Date (a) if resulting from an Illegality or

a Force Majeure Event, all Affected Transactions specified in the notice given
pursuant to Section 6(b)(iv), (b) if

resulting from any other Termination Event, all Affected Transactions and (c) if
resulting from an Event of Default,

all Transactions in effect either immediately before the effectiveness of the
notice designating that Early Termination

Date or, if Automatic Early Termination applies, immediately before that Early
Termination Date.

 

“Termination Currency” means (a) if a
Termination Currency is specified in the Schedule and that currency is freely

available, that currency, and (b) otherwise, euro if this Agreement is
expressed to be governed by English law or

United States Dollars if this Agreement is expressed to be governed by the laws
of the State of New York.

 

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

such Termination Currency amount and, in respect of any amount denominated in a
currency other than the

Termination Currency (the “Other Currency”), the amount in the Termination
Currency determined by the party

making the relevant determination as being required to purchase such amount of
such Other Currency as at the

relevant Early Termination Date, or, if the relevant Close-out Amount is
determined as of a later date, that later date,

with the Termination Currency at the rate equal to the spot exchange rate of
the foreign exchange agent (selected as

provided below) for the purchase of such Other Currency with the Termination
Currency at or about 11:00 a.m. (in

the city in which such foreign exchange agent is located) on such date as would
be customary for the determination of

such a rate for the purchase of such Other Currency for value on the relevant
Early Termination Date or that later

date. The foreign exchange agent will, if only one party is obliged to make a
determination under Section 6(e), be

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

 

“Termination Event” means an
Illegality, a Force Majeure Event, a Tax Event, a Tax Event Upon Merger or, if

specified to be applicable, a Credit Event Upon Merger or an Additional
Termination Event.

 

“Termination Rate” means a rate per
annum equal to the arithmetic mean of the cost (without proof or evidence of

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

amounts.

 

“Threshold Amount” means the amount, if
any, specified as such in the Schedule.

 

“Transaction” has the meaning
specified in the preamble.

 

“Unpaid Amounts” owing to any party
means, with respect to an Early Termination Date, the aggregate of (a) in

respect of all Terminated Transactions, the amounts that became payable (or
that would have become payable but for

Section 2(a)(iii) or due but for Section 5(d)) to such party
under Section 2(a)(i) or 2(d)(i)(4) on or prior to such Early

Termination Date and which remain unpaid as at such Early Termination Date, and
(b) in respect of each Terminated

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

5(d)) required to be settled by delivery to such party on or prior to such
Early Termination Date and which has not

been so settled as at such Early Termination Date, an amount equal to the fair
market value of that which was (or

would have been) required to be delivered and (c) if the Early Termination
Date results from an Event of Default, a

Credit Event Upon Merger or an Additional Termination Event in respect of which
all outstanding Transactions are

Affected Transactions, any Early Termination Amount due prior to such Early
Termination Date and which remains

unpaid as of such Early Termination Date, in each case together with any amount
of interest accrued or other

 

 

27

 

compensation in respect of that
obligation or deferred obligation, as the case may be, pursuant to Section 9(h)(ii)(1)

or (2), as appropriate.  The fair market
value of any obligation referred to in clause (b) above will be determined
as of

the originally scheduled date for delivery, in good faith and using
commercially reasonable procedures, by the party

obliged to make the determination under section 6(e) or, if each party is
so obliged, it will be the average of the

Termination Currency Equivalents of the fair market values so determined by
both parties.

 

“Waiting Period” means:—

 

(a)           in respect of an event or circumstance under Section 5(b)(i),
other than in the case of Section 5(b)(i)(2)

where the relevant payment, delivery or compliance is actually required on the
relevant day (in which case no

Waiting Period will apply), a period of three Local Business Days (or days that
would have been Local Business

Days but for the occurrence of that event or circumstance) following the
occurrence of that event or circumstance; and

 

(b)           in respect of an event or circumstance under Section 5(b)(ii),
other than in the case of Section 5(b)(ii)(2)

where the relevant payment, delivery or compliance is actually required on the
relevant day (in which case no

Waiting Period will apply), a period of three Local Business Days (or days that
would have been Local Business

Days but for the occurrence of that event or circumstance) following the
occurrence of that event or circumstance.

 

IN WITNESS WHEREOF the parties
have executed this document on the respective dates specified below

with effect from the date specified on the first page of this document.

 

	
  JPMORGAN
  CHASE BANK,

  NATIONAL ASSOCIATION 

  	
   

  	
  LKQ
  CORPORATION  

  
	
   

  	
   

  	
   

  
	
  By:
  

  	
  /s/
  Eric W. Bonatz

  	
   

  	
  By:

  	
  /s/
  Frank P. Erlain

  
	
   

  	
  Name:
  

  	
  Eric
  W. Bonatz

  	
   

  	
   

  	
  Name:

  	
  Frank
  P. Erlain

  
	
   

  	
  Title:

  	
  Vice
  President

  	
   

  	
   

  	
  Title:

  	
  V.
  P. — Finance & Controller

  

 

 

28

SCHEDULE

to the

2002 MASTER AGREEMENT

 

dated as of March 20, 2008

 

between

 

	
  JPMORGAN
  CHASE BANK, NATIONAL ASSOCIATION

  (“Party
  A”)

  	
   

  	
  and

  	
   

  	
  LKQ
  CORPORATION

  (“Party
  B”)

  

 

PART 1

Termination Provisions

 

(1)                                  “Specified
Entity” means, in relation to Party A, for the purpose of:

 

                                                Section 5(a)(v), any Affiliate of
Party A;

                                                Section 5(a)(vi), none;

                                                Section 5(a)(vii), none; and

                                                Section 5(b)(v), none;

 

                                                                                                and, in relation to
Party B, for the purpose of:

 

                                                Section 5(a)(v), any Credit
Support Provider of Party B;

                                                Section 5(a)(vi), none;

                                                Section 5(a)(vii), none; and

                                                Section 5(b)(v), none.

 

(2)                                  “Specified
Transaction” will have the meaning specified in Section 14 of
this Agreement.

 

(3)                                  The “Cross-Default”
provisions of Section 5(a)(vi) will apply to Party A and Party B, and for such
purpose:

 

(a)                                  “Specified Indebtedness”
will have the meaning specified in Section 14 of this Agreement, except
that such term shall not include obligations in respect of deposits received in
the ordinary course of party’s banking business.

 

(b)                                 “Threshold Amount”
means, with respect to Party A, an amount equal to three percent of the
shareholder’s equity of Party A (in the case of Party A, of JPMorgan Chase &
Co.); and with respect to Party B USD 15,000,000 or the equivalent thereof in
any currency or currencies.  For purpose
of this definition, any Specified Indebtedness denominated in a currency other
than the currency in which the Threshold Amount is expressed shall be converted
into the currency in which the Threshold Amount is expressed of the exchange
rate therefor as of the time of any determination reasonably chosen by the
other party.

 

 

(4)                                  The “Credit
Event Upon Merger” provisions of Section 5(b)(v) will
apply to Party A and Party B; provided, however, that if the applicable party has
long term, unsecured and unsubordinated indebtedness or deposits which is or
are publicly rated (such rating, a “Credit Rating”) by Moody’s Investor
Services, Inc. (“Moody’s”), 
Standard and Poors Ratings Group (“S&P”) or any other
internationally recognized rating agency (a “Rating Agency”), then the words
“materially weaker” in line 6 of Section 5(b)(v) shall mean that the
Credit Rating of such party (or, if applicable, the Credit Support Provider of
such party) shall be rated lower than Baa3 by Moody’s, or lower than BBB- by
S&P or, in the event that there is no Credit Rating by either Moody’s or
S&P applicable to such party (or, if applicable, the Credit Support
Provider of such party) but such party’s long-term indebtedness or deposits is
or are rated by a Rating Agency, lower than a rating equivalent to the
foregoing by such Rating Agency.

 

(5)                                  The “Automatic
Early Termination” provision of Section 6(a) will not
apply to Party A or Party B.

 

(6)                                  “Termination
Currency” will have the meaning set forth in Section 14 of
this Agreement.

 

(7)                                  Additional Termination Event   It shall be an Additional Termination Event hereunder
with respect to Party B as the Affected Party if at any time:  (i) a default (however described) occurs
under the Loan Agreement (hereinafter defined); or (ii) the Loan Agreement
shall be paid or prepaid in full, expire, terminate or otherwise cease to be in
full force and effect.

 

(8)                                  Additional Condition Precedent.  For the purposes of Section 2(a)(iii) it
shall be a condition precedent that no Additional Termination Event with
respect to such party shall have occurred and be continuing.

 

PART 2

Tax Representations

 

For the purpose of Section 3(f) of this
Agreement:

 

(i)                                     Party A and
Party B each represent, respectively, that it is a United States Person for
U.S. federal income tax purposes and either (a) is a financial institution
or (b) is not acting as an agent for a person that is not a United States
Person for U.S. federal income tax purposes.

 

PART 3

Agreement to Deliver
Documents

 

For
the purpose of Sections 4(a)(i) and 4(a)(ii) of this Agreement, each
party agrees to deliver the following documents:

 

                (a)           Tax forms, documents or certificates to be delivered are:

 

Party B agrees to deliver a complete and accurate United States Internal
Revenue Service Form W-9 (or any applicable successor form), in a manner
reasonably satisfactory to Party 

 

 

2

 

A, (i) upon execution of this Agreement; (ii) promptly upon
reasonable demand of Party A, and (iii) promptly upon learning that any
such form previously provided by Party B has become obsolete or incorrect (and
each such form is hereby identified for purposes of Section 3(d) of
this Agreement.

 

(b)                                 Other documents to
be delivered are:

 

	
  Party required

  to deliver

  document

  	
   

  	
  

  Form/Document/

  Certificate

  	
   

  	
  

  Date by which

  to be delivered

  	
   

  	
  Covered by

  Section 3(d)

  Representation

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Party B

  	
   

  	
  Most recently completed
  Annual Report of Party B and of its Credit Support Provider (as applicable)
  containing consolidated financial statements certified by independent
  certified public accountants and prepared in accordance with accounting
  principles that are generally accepted in the country or countries in which
  Party B and its Credit Support Provider (as applicable) is organized

  	
   

  	
  Upon request

  	
   

  	
  Yes

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Party B

  	
   

  	
  Most recently
  completed, unaudited consolidated financial statements of Party B and of its
  Credit Support Provider (as applicable) for a fiscal quarter prepared in
  accordance with accounting principles that are generally accepted in the
  country or countries in which Party B and its Credit Support Provider (as
  applicable) is organized

  	
   

  	
  Upon request

  	
   

  	
  Yes

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Party B

  	
   

  	
  Certified copies of all
  corporate authorizations and any other documents with respect to the
  execution, delivery and performance of this Agreement

  	
   

  	
  Upon execution and
  delivery of this Agreement

  	
   

  	
  Yes

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Party A and

  Party B

  	
   

  	
  Certificate of
  authority and specimen signatures of individuals executing this Agreement,
  Confirmations and each Credit Support Document (as applicable)

  	
   

  	
  Upon execution and
  delivery of this Agreement and thereafter upon request of the other party

  	
   

  	
  Yes

  

 

 

3

 

PART 4

Miscellaneous

 

(1)                                  Addresses
for Notices.  For the purpose
of Section 12(a) of this Agreement:

 

Address
for notice or communications to Party A:

 

Any
notice relating to a particular Transaction shall be delivered to the address
or facsimile number specified in the Confirmation of such Transaction.  Any notice delivered for purposes of Sections
5 and 6 of this Agreement shall be delivered to the following address:

 

                                                JPMorgan Chase
Bank, National Association

                                                Attention:  Legal Department- Derivatives Practice Group

                                                270 Park Avenue, 41st
Floor

                                                New York, New York
10017-2070

                                                Facsimile No.:  (212) 270-3625

 

Address
for notice or communications to Party B:

 

                                                LKQ Corporation

                                                120 N. LaSalle
Street

                                                Suite 3300

                                                Chicago, Illinois
60602

                                                Attention: Mark
Spears

                                                Telephone No.:  (312) 621-2730

                                                Facsimile No.:   (312) 621-1969

                                                Email Address:   MTSpears@LKQCORP.com

 

(2)                                  Process Agent.  For the purpose of Section 13(c) of
this Agreement:

 

                                                Party A appoints as
its Process Agent:  Not applicable.

                                                Party B appoints as
its Process Agent:  Not applicable.

 

(3)                                  Offices.  The provisions of Section 10(a) will
apply to this Agreement.

 

(4)                                  Multibranch
Party.  For the purpose
of Section 10 of this Agreement:

 

Party
A is a Multibranch Party and may act through any Office specified in a
Confirmation.

 

                                                Party B is not a
Multibranch Party.

 

(5)                                  Credit
Support Document.  With respect to Party A does not apply, and
with respect to Party B, means the Loan Documents as defined in the Loan
Agreement, and any other document which by its terms secures, guarantees or
otherwise supports the full and timely performance of Party B’s obligations
under this Agreement from time to time.

 

Party B represents to
Party A at all times hereunder that its obligations under this Agreement remain
secured under the Credit Support Document(s), to the extent provided in such
documents.

 

 

4

 

(6)                                  Credit Support Provider. With respect to Party A does not apply,
and with respect to Party B means each party to any Credit Support Document of
Party B other than (i) Party A or Party B, (ii) any Affiliate of
Party A, or (iii) any other secured party under any such Credit Support
Document.

 

(7)                                  Governing Law.  This Agreement will be governed by and
construed in accordance with the laws of the State of New York (without reference
to choice of law doctrine).

 

(8)                                  Netting of Payments. “Multiple
Transaction Payment Netting” will apply for the purpose of Section 2(c) of
this Agreement to all Transactions starting from the date of this Agreement.

 

(9)           Absence of Litigation.  For the purpose of Section 3(c) of
this Agreement:

 

“Specified Entity” means, in relation to Party A,
any Affiliate of Party A.

“Specified Entity” means, in relation to Party B, any
Affiliate of Party B.

 

(10)                            No Agency.  The provisions of Section 3(g) of
this Agreement will apply to this Agreement.

 

(11)                            Additional Representation will apply.  For the purpose of Section 3 of this
Agreement, the following will each constitute an Additional Representation:

 

(h)           Relationship Between
Parties.  Each party will be
deemed to represent to the other party on the date on which it enters into a
Transaction that (absent a written agreement between the parties that expressly
imposes affirmative obligations to the contrary for that Transaction):

 

                                                                (i)            Non-Reliance.  It is acting for its own account, and it has
made its own independent decisions to enter into that Transaction and as to
whether that Transaction is appropriate or proper for it based upon its own
judgment and upon advice from such advisers as it has deemed necessary.  It is not relying on any communication
(written or oral) of the other party as investment advice or as a
recommendation to enter into that Transaction, it being understood that
information and explanations related to the terms and conditions of a Transaction
will not be considered investment advice or a recommendation to enter into that
Transaction.  No communication (written
or oral) received from the other party will be deemed to be an assurance or
guarantee as to the expected results of that Transaction.

 

                                                                (ii)           Assessment and
Understanding.  It is capable
of assessing the merits of and understanding (on its own behalf or through
independent professional advice), and understands and accepts, the terms,
conditions and risks of that Transaction. 
It is also capable of assuming, and assumes, the risks of that
Transaction.

 

                                                                (iii)          Status of Parties.  The other party is not acting as a fiduciary
for or an adviser to it in respect of that Transaction.

 

 

5

 

                                                                (iv)          Other Transactions.  It understands and acknowledges that the
other party may, either in connection with entering into a Transaction or from
time to time thereafter, engage in open market transactions that are designed
to hedge or reduce the risks incurred by it in connection with such Transaction
and that the effect of such open market transactions may be to affect or reduce
the value of such Transaction.

 

(12)                            Eligible Contract Participant. Each  party represents to the other party (which representation will
be deemed to be repeated by each party on each date on which a Transaction is
entered into) that it is an “eligible contract participant”, as defined in the
Commodity Futures Modernization Act of 2000.

 

(13)                            Recording of Conversations.  Each party (i) consents to the recording
of telephone conversations between the trading, marketing and other relevant
personnel of the parties and their Affiliates in connection with this Agreement
or any potential Transaction, (ii) agrees to obtain any necessary consent
of, and give any necessary notice of such recording to, its relevant personnel
and (iii) agrees, to the extent permitted by applicable law, that
recordings may be submitted in evidence in any Proceedings.

 

PART 5

Other Provisions

 

(1)                                  Waiver of Jury Trial.  Each party waives, to the fullest extent permitted by applicable law,
any right it may have to a trial by jury in respect of any suit, action or
proceeding relating to this Agreement or any Credit Support Document.  Each party (i) certifies that no representative,
agent or attorney of the other party or any Credit Support Provider has
represented, expressly or otherwise, that such other party would not, in the
event of such a suit, action or proceeding, seek to enforce the foregoing
waiver and (ii) acknowledges that it and the other party have been induced
to enter into this Agreement and provide for any Credit Support Document, as
applicable, by, among other things, the mutual waivers and certifications in
this Section.

 

(2)                                  ISDA Definitions. 
Reference is hereby made to the 2000 ISDA Definitions (the “2000
Definitions”) and the 1998 FX and Currency Option Definitions (the “FX
Definitions”) (collectively the “ISDA Definitions”) each as published by the
International Swaps and Derivatives Association, Inc., which are hereby
incorporated by reference herein.  Any
terms used and not otherwise defined herein which are contained in the ISDA
Definitions shall have the meaning set forth therein.

 

(3)                                  Scope of Agreement. 
Notwithstanding anything contained in this Agreement to the contrary,
any transaction (other than a repurchase transaction, reverse repurchase
transaction, buy/sell-back transaction or securities lending transaction) which
may otherwise constitute a “Specified Transaction” (without regard to the phrase
“which is not a Transaction under this Agreement but” in the definition of
“Specified Transaction”) for purposes of this Agreement which has been or will
be entered into between the parties shall constitute a “Transaction” which is
subject to, governed by, and construed in accordance with the terms of this
Agreement, unless any Confirmation with 

 

 

6

 

respect to a
Transaction entered into after the execution of this Agreement expressly
provides otherwise.

 

(4)                                  Inconsistency. 
In the event of any inconsistency between any of the following
documents, the relevant document first listed below shall govern:  (i) a Confirmation; (ii) the
Schedule and Paragraph 13 of an ISDA Credit Support Annex (as applicable); (iii) the
ISDA Definitions; and (iv) the printed form of ISDA Master Agreement and
ISDA Credit Support Annex (as applicable). 
In the event of any inconsistency
between provisions contained in the 2000 Definitions and the FX
Definitions, the FX Definitions shall
prevail.

 

(5)                                  Loan
Agreement.  Until all of Party B’s obligations
(whether absolute or contingent) under this Agreement have been satisfied in
full, Party B will at all times perform, comply with and observe all covenants
and agreements of the Loan Agreement applicable to it, which covenants and
agreements, together with related definitions and ancillary provisions, are
hereby incorporated by reference (mutatis mutandis) and, for the avoidance of
doubt, shall be construed to apply hereunder for the benefit of Party A as
though (i) all references therein to the party or parties making loans,
extensions of credit or financial accommodations thereunder or commitments
therefor (“Financings”) were to Party A and (ii) to the extent that such
covenants and agreements are conditioned on or relate to the existence of such
Financings or Party B having any obligations arising out of or in connection
therewith, all references to such Financings or obligations were to Party B’s
obligations under this Agreement.

 

“Loan Agreement” means
that certain Credit Agreement dated as of October 12, 2007 by and among
Party B, LKQ Delaware LLP, several banks and financial institutions party
thereto, as the Lenders, Lehman Brothers Inc. and Deutsche Bank Securities
Inc., as joint Lead Arrangers and Joint Bookrunners, Deutsche Bank Securities
Inc, as Syndication Agent, Lehman Commercial Paper Inc., as Administrative
Agent, Deutsche Bank AG New York Branch, as US Dual Currency  RCF Agent and Deutsche Bank AG Canada Branch,
as Canadian Agent and together with the Administration Agent and the US Dual
Currency RCF Agent, the Facility Agents, as the same may be amended, modified,
and supplemented from time to time, including by waiver or consent thereunder
or pursuant thereto, but without regard to any termination or cancellation
thereof, whether by reason of payment of all indebtedness incurred thereunder
or otherwise.

 

Please confirm
your agreement to the terms of the foregoing Schedule by signing below.

 

	
  JPMORGAN CHASE BANK,

  NATIONAL ASSOCIATION 

  	
   

  	
  LKQ CORPORATION 
  

  
	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ Eric W. Bonatz

  	
   

  	
  By:

  	
  /s/ Frank P. Erlain

  
	
   

  	
  Name: 

  	
  Eric W. Bonatz

  	
   

  	
   

  	
  Name:

  	
  Frank P. Erlain

  
	
   

  	
  Title:

  	
  Vice President

  	
   

  	
   

  	
  Title:

  	
  V. P. — Finance &
  Controller

  

 

 

7Exhibit 10.1

 

INVESTMENT TECHNOLOGY GROUP, INC.

STOCK UNIT GRANT AGREEMENT

 

THIS GRANT AGREEMENT, dated as
of March 24, 2008 (the “Date of Grant”), is entered into by and
between Investment Technology Group, Inc. (the “Company”), a
Delaware corporation, and Robert C. Gasser, an employee of the Company (the “Employee”).

 

WHEREAS, the Employee has been awarded
the following Grant under the Investment Technology Group, Inc. 2007
Omnibus Equity Compensation Plan (the “Plan”) in satisfaction of the Company’s
obligations under that certain employment agreement entered into by and between
the Company and the Employee dated September 15, 2006 (the “Employment
Agreement”).  Capitalized terms used
herein and not defined herein shall have the meanings set forth in the Plan.  In the event of any conflict between this
Grant Agreement and the Plan, the Plan shall control.

 

NOW, THEREFORE, in
consideration of the premises and mutual covenants contained herein, and for
other good and valuable consideration, the parties hereto agree as follows:

 

1.                                       Grant
of Stock Units.  Subject to the terms and conditions set forth in
this Grant Agreement and the Plan, the Employee is hereby awarded 19,503 Stock Units,
representing a number of hypothetical shares of Company Stock on a one-for-one basis equal to $925,000, based
on the closing price of a share of Company Stock on the Date of Grant (the “Stock
Unit Grant”).

 

2.                                       Grant Subject to Plan Provisions.  This Stock
Unit Grant is granted pursuant to the Plan, the terms of which are incorporated
herein by reference, and in all respects shall be interpreted in accordance
with the Plan.  The Plan and the Plan
prospectus are available at http://assetlib.itginc.com/stellent/groups/public/documents/itginc/047794.pdf
and http://assetlib.itginc.com/stellent/groups/public/documents/itginc/047867.pdf, respectively; provided that paper copies of the Plan
and the Plan prospectus are available upon request by contacting the Legal
Department of the Company at ITG_Legal or 212.444.6378.  This Stock Unit Grant is subject to
interpretations, regulations and determinations concerning the Plan established
from time to time by the Committee in accordance with the provisions of the
Plan, including, but not limited to, provisions pertaining to (a) the
registration, qualification or listing of the shares issued under the Plan, (b) changes
in capitalization, (c) requirements of applicable law and (d) all other
Plan provisions.  The Committee has the
authority to interpret and construe this Grant Agreement pursuant to the terms
of the Plan, and its decisions are conclusive as to any questions arising
hereunder.

 

3.                                       Stock
Unit Account.  The Company shall
establish and maintain a Stock Unit bookkeeping account (the “Account”)
on its records for the Employee and shall record in the Account the number of Stock
Units awarded to the Employee.  No shares
of Company Stock shall be issued to the Employee at the time the Stock Unit
Grant is made.

 

4.                                       Vesting
and Distribution of the Stock Unit Grant.

 

(a)                                Vesting
and Distribution of Stock Unit Grant. 
Subject to Sections 4(b), 4(c), 4(d) and 4(e) below and
the other terms and conditions of this Grant 

 

 

Agreement and the Plan, this Stock
Unit Grant shall vest and be distributed on the dates set forth on Exhibit A;
provided that the performance goal set forth on Exhibit A has been
achieved and the Employee has remained continuously employed by the Employer from
the Date of Grant through each applicable date set forth on Exhibit A.

 

(b)                               Termination
Prior to a Change in Control.  Notwithstanding
Section 4(a) above and subject to Sections 4(d) and 4(e) below,
in the event the Employee incurs a Termination of Service for Good Reason (as
defined in the Employment Agreement) or not for Cause (as defined in the
Employment Agreement) prior to a Change in Control (as defined in the
Employment Agreement) (for purposes of this Agreement, “Change in Control”),
this Stock Unit Grant shall continue to vest and be distributed as if (i) the
performance goal set forth in Exhibit A has been achieved and (ii) the
Employee remained employed by the Company through the first anniversary of the
date of his Termination of Service; provided that the Employee executes (and
does not revoke) a Release (as defined in the Employment Agreement).

 

(c)                                Change
in Control; Death or Disability. 
Notwithstanding Section 4(a) above, this Stock Unit Grant shall
become immediately vested (as if the performance goal set forth in Exhibit A
has been achieved) and distributed in full within thirty (30)  days following (i) a Change in Control, (ii) the
Employee’s Termination of Service due to the Employee’s Permanent Disability
(as defined in the Employment Agreement) or (iii) the Employee’s
death.  Notwithstanding the foregoing, distribution
shall only be made in accordance with (A) clause (i) of the preceding
sentence if the transaction constituting a Change in Control under this
Agreement is also a “change in control event” within the meaning of such term
under Treas. Reg. section 1.409A-3(i)(5) and (B) clause (ii) of
the preceding sentence if the Employee’s Permanent Disability would cause the
Employee to be considered “disabled” within the meaning of such term under
Treas. Reg. section 1.409A-3(i)(4).

 

(d)                               409A
Six-Month Delay.  Notwithstanding any
provision of this Grant Agreement to the contrary, if, at the time of the
Employee’s Termination of Service, the Company has securities which are
publicly traded on an established securities market and the Employee is a “specified
employee” (as defined in section 409A of the Code) and it is necessary to
postpone the commencement of any distributions otherwise distributable pursuant
to this Grant Agreement as a result of such termination of employment to
prevent any accelerated or additional tax under section 409A of the Code, then
the Company will postpone the commencement of the distributions hereunder
(without any reduction in such distributions ultimately made to the Employee),
until the first business day following the date that is six months following
the Employee’s “separation of service” with the Company (within the meaning of
such term under Code Section 409A). 
If any distributions are postponed due to such requirements, such distributions
will be made in a lump sum to the Employee on the first business day following
the date that is six months following the Employee’s “separation of service”
with the Company.  If the Employee dies
during the postponement period prior to the distribution of the postponed distribution
amount, the distribution of the postponed distribution amount shall be made to
the personal representative of the Employee’s estate within sixty (60) days
after the date of the Employee’s death.

 

2

 

(e)                                Other
Termination; Forfeiture of Award.  Except
as otherwise provided in this Section 4, in the event of Termination of
Service of the Employee prior to the date the Stock Unit Grant otherwise
becomes vested, the Stock Unit Grant shall immediately be forfeited by the
Employee and become the property of the Company.

 

(f)                                  “Termination
of Service” means the Employee’s “separation from service” (within the
meaning of such term under section 409A of the Code and the regulations
promulgated thereunder) with the Company and its Subsidiaries.  An employee employed by a Subsidiary of the
Company shall be deemed to incur a Termination of Service if the Subsidiary of
the Company ceases to be such a Subsidiary and the employee does not
immediately thereafter become an employee of the Company or another Subsidiary
of the Company.  Temporary absences from
employment because of illness, vacation or leave of absence and transfers among
the Company and its Subsidiaries shall not be considered a Termination of
Service.

 

(g)                               Adjustments.  Unless otherwise provided by the Committee,
all amounts receivable in connection with any adjustments to the Company Stock
under Section 5(d) of the Plan shall be subject to the vesting
schedule in this Section 4.

 

5.                                       Distribution
of Shares.  The Company shall
distribute to the Employee (or the Employee’s heirs in the event of the
Employee’s death) at the time of vesting of the Stock Unit Grant in accordance
with Section 4 above (but not later than March 15 of the calendar
year following the calendar year in which the Stock Units vest), a number of
shares of Company Stock equal to the number of Stock Units then held by the
Employee that became vested at such time, subject to reduction for withholding
of shares pursuant to Section 8 below.

 

6.                                       Rights
and Restrictions.  The Stock Unit
Grant shall not be transferable, other than by will or under the laws of
descent and distribution (or pursuant to a beneficiary designation authorized
by the Committee).  Prior to vesting of
the Stock Unit Grant and distribution of the shares of Company Stock to the
Employee, the Employee shall not have any rights or privileges of a stockholder
as to the shares of Company Stock subject to the Stock Unit Grant.  Specifically, the Employee shall not have the
right to receive dividends or the right to vote such shares of Company Stock, nor
shall the Employee have the right to sell, assign, pledge, hypothecate,
encumber, transfer or otherwise dispose of, in whole or in part, the Stock Unit
Grant, prior to vesting of the Stock Unit Grant and delivery of the shares of Company
Stock.  The Employee shall not have any
interest in any fund or specific assets of the Employer by reason of this Stock
Unit Grant or the Account established for the Employee.

 

7.                                       Limitations.  Nothing herein shall limit the Company’s
right to issue Company Stock, or Stock Units or other rights to purchase
Company Stock subject to vesting, expiration and other terms and conditions
deemed appropriate by the Company and its affiliates.  Nothing expressed or implied herein is
intended or shall be construed to confer upon or give to any Person, other than
the parties hereto, any right, remedy or claim under or by reason of this Grant
Agreement or of any term, covenant or condition hereof.

 

3

 

8.                                       Withholding.  The Employee shall pay to the Employer or
make arrangements satisfactory to the Committee regarding payment of any
federal, state or local taxes of any kind required by law to be withheld at any
time with respect to the Stock Unit Grant and the Employer shall, to the extent
permitted or required by law, have the right to deduct from any payment of any
kind otherwise due to the Employee, federal, state and local taxes of any kind
required by law to be withheld.  To the
extent permitted by the Committee, the Employee may elect to have the Employer
withhold Company Stock to pay any applicable withholding taxes resulting from
the Stock Unit Grant, in accordance with any rules or regulations of the
Committee then in effect.

 

9.                                       Expenses
of Issuance of Company Stock.  The
issuance of stock certificates hereunder shall be without charge to the
Employee.  The Company shall pay, and
indemnify the Employee from and against any issuance, stamp or documentary
taxes (other than transfer taxes) or charges imposed by any governmental body,
agency or official (other than income taxes) by reason of the issuance of
Company Stock.

 

10.                                 Terms
are Binding. The terms of this Grant Agreement shall be binding upon
the executors, administrators, heirs, successors, transferees and assignees of
the Employee and the Company.

 

11.                                 Compliance
with Law.  The transfer of Company Stock
hereunder shall be subject to the terms, conditions and restrictions as set
forth in the governing instruments of the Company, Company policies, applicable
federal and state securities laws or any other applicable laws or regulations,
and approvals by any governmental or regulatory agency as may be required.  By signing this Grant Agreement, the Employee
agrees not to sell any Company Stock at a time when applicable laws or the Company
policies prohibit a sale.

 

12.                                 References.  References
herein to rights and obligations of the Employee shall apply, where
appropriate, to the Employee’s legal representative or estate without regard to
whether specific reference to such legal representative or estate is contained
in a particular provision of this Grant Agreement.

 

13.                                 Notices.  Any
notice required or permitted to be given under this Grant Agreement shall be in
writing and shall be deemed to have been given when delivered personally or by
courier, or sent by certified or registered mail, postage prepaid, return
receipt requested, duly addressed to the party concerned at the address
indicated below or to such changed address as such party may subsequently, by
similar process, give notice of:

 

If to the Company:

 

Investment Technology Group, Inc.

380 Madison Avenue

New York, NY 10017

Attention: General Counsel

 

4

 

If to the Employee:

 

At the Employee’s most recent address shown
on the Employer’s corporate records, or at any other address at which the
Employee may specify in a notice delivered to the Company in the manner set
forth herein.

 

14.                                 No
Right to Continued Employment.  This
Stock Unit Grant shall not confer upon the Employee any right to continue in
the employ of the Employer nor shall this Stock Unit Grant interfere with the
right of the Employer to terminate the Employee’s employment at any time.

 

15.                                 Application
of Section 409A.  This Agreement
is intended to comply with the applicable requirements of section 409A of the
Code and the regulations promulgated thereunder, and shall be administered in
accordance with section 409A of the Code. 
Notwithstanding any provision of this Agreement to the contrary, distributions
made under this Agreement may only be made in a manner and upon an event
permitted by section 409A of the Code and all distributions to be made upon a
termination of employment under this Agreement may only be made upon a “separation
from service” (within the meaning of such term under section 409A of the
Code).  To the extent that any provision
of this Agreement would cause a conflict with the requirements of section 409A
of the Code, or would cause the administration of this Agreement to fail to
satisfy the requirements of section 409A of the Code, such provision shall be
deemed null and void to the extent permitted by applicable law.  In no event shall the Employee, directly or
indirectly, designate the calendar year of distribution.  This Grant Agreement may be amended without
the consent of the Employee in any respect deemed by the Committee to be
necessary in order to preserve compliance with Section 409A of the Code.

 

16.                                 Costs.  In any action at law or in equity to enforce
any of the provisions or rights under this Grant Agreement, including any
arbitration proceedings to enforce such provisions or rights, the unsuccessful
party to such litigation or arbitration, as determined by the court in a final
judgment or decree, or by the panel of arbitrators in its award, shall pay the
successful party or parties all costs, expenses and reasonable attorneys’ fees
incurred by the successful party or parties (including without limitation
costs, expenses and fees on any appeals), and if the successful party recovers
judgment in any such action or proceeding such costs, expenses and attorneys’
fees shall be included as part of the judgment.

 

17.                                 Further
Assurances.  The Employee agrees to
perform all acts and execute and deliver any documents that may be reasonably
necessary to carry out the provisions of this Grant Agreement, including but
not limited to all acts and documents related to compliance with federal and/or
state securities laws.

 

18.                                 Counterparts.  For convenience, this Grant Agreement may be
executed in any number of identical counterparts, each of which shall be deemed
a complete original in itself and may be introduced in evidence or used for any
other purposes without the production of any other counterparts.

 

19.                                 Governing
Law.  This Grant Agreement shall be
construed and enforced in accordance with Section 19(h) of the Plan.

 

5

 

20.                                 Entire
Agreement.  This Grant Agreement,
together with the Plan, sets forth the entire agreement between the parties
with reference to the subject matter hereof, and there are no agreements,
understandings, warranties, or representations, written, express, or implied,
between them with respect to the Stock Unit Grant other than as set forth
herein or therein, all prior agreements, promises, representations and
understandings relative thereto being herein merged.

 

21.                                 Amendment;
Waiver.  Except as set forth in Section 15,
this Grant Agreement may be amended, modified, superseded, canceled, renewed or
extended and the terms or covenants hereof may be waived only by a written
instrument executed by the parties hereto or, in the case of a waiver, by the
party waiving compliance.  Any such
written instrument must be approved by the Committee to be effective as against
the Company.  The failure of any party at
any time or times to require performance of any provision hereof shall in no
manner affect the right at a later time to enforce the same.  No waiver by any party of the breach of any
term or provision contained in this Grant Agreement, whether by conduct or
otherwise, in any one or more instances, shall be deemed to be, or construed
as, a further or continuing waiver of any such breach, or a waiver of the
breach of any other term or covenant contained in this Grant Agreement.

 

22.                                 Severability.  Any provision of this Grant Agreement that is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

 

[SIGNATURE PAGE FOLLOWS]

 

6

 

IN WITNESS WHEREOF, the
undersigned have executed this Grant Agreement as of the date first above
written.

 

 

	
   

  	
  INVESTMENT TECHNOLOGY GROUP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/Maureen O’Hara

  
	
   

  	
  Name: 

  	
  Maureen O’Hara

  
	
   

  	
  Title:

  	
  Chairman of the Board of Directors

  

 

 

I hereby
accept the Stock Unit Grant described in this Grant Agreement, and I agree to
be bound by the terms of the Plan and this Grant Agreement.  I hereby further agree that all the decisions
and determinations of the Committee shall be final and binding.

 

 

	
   

  	
   

  	
  /s/Robert C. Gasser

  
	
   

  	
   

  	
   Robert C. Gasser

  

 

7

 

Exhibit A

 

Performance
Objectives and Vesting and Distribution Schedule for the Stock Unit Grant

 

The Committee
has set Performance Objectives (as defined in the Company’s Amended and Restated
Pay-for-Performance Incentive Plan (the “Pay-for-Performance Plan”)) for
the period January 1, 2008 through December 31, 2008 which will
result, if achieved, in the creation of an incentive pool, up to 35% of which
will be allocated by the Committee to the Employee.  The Employee’s share of the pool (not in
excess of the first $925,000), as determined and awarded to the Employee by the
Committee, shall be allocated to determine the number of Stock Units earned by
the Employee based on the amount of the pool awarded to the Employee divided by
the closing price of a share of Company Stock on the Date of Grant.  The Employee’s Stock Units, so earned, shall vest
and be distributed as follows:

 

	
  Vesting and Distribution Date

  	
   

  	
  Percentage of Award that Shall Vest

  	
   

  
	
  January 31,
  2009

  	
   

  	
  33 1/3

  	
  %

  
	
  January 1,
  2010

  	
   

  	
  33 1/3

  	
  %

  
	
  January 1,
  2011

  	
   

  	
  33 1/3

  	
  %

  

 

To the extent
the Employee’s share of the pool, as determined and awarded to the Employee by
the Committee, is less than $925,000, all or a part of this Stock Unit Grant
shall be forfeited, as determined by the Committee.  If a part of the Stock Unit Grant is
forfeited, the Stock Unit Grant shall terminate as to the forfeited Stock
Units, no distribution shall be made with respect to the forfeited Stock Units
and the Employee shall have no further rights with respect thereto.  The remaining part shall vest and be distributed
according to the schedule above.  If all
of the Stock Unit Grant is forfeited, the Stock Unit Grant shall terminate in
its entirety, no distribution shall be made hereunder and the Employee shall
have no further rights with respect hereto.

 

8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}]]