Document:

EXHIBIT 10.1

 

Exhibit 10.1

EXECUTION COUNTERPART

REVOLVING CREDIT AGREEMENT

dated as of August 20, 2004

among

CHECKFREE CORPORATION, CHECKFREE SERVICES CORPORATION, AND

CHECKFREE INVESTMENT CORPORATION,

as Borrowers

THE LENDERS FROM TIME TO TIME PARTY HERETO

SUNTRUST BANK,

as Administrative Agent

BANK OF AMERICA, N.A.,

as Syndication Agent

and

KEYBANK NATIONAL ASSOCIATION,

US BANK

and

BNP PARIBAS,

as Documentation Agents

SUNTRUST CAPITAL MARKETS, INC.

as Joint Lead Arranger and Sole Book Runner

and

BANC OF AMERICA SECURITIES, LLC

as Joint Lead Arranger

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page

	ARTICLE I DEFINITIONS; CONSTRUCTION
	 	 	1	 
	Section 1.1.Definitions
	 	 	1	 
	Section 1.2.Classifications of Loans and Borrowings
	 	 	22	 
	Section 1.3.Accounting Terms and Determination
	 	 	22	 
	Section 1.4.Terms Generally
	 	 	23	 
	ARTICLE II AMOUNT AND TERMS OF THE COMMITMENTS
	 	 	23	 
	Section 2.1.General Description of Facilities
	 	 	23	 
	Section 2.2.Revolving Loans
	 	 	23	 
	Section 2.3.Procedure for Revolving Borrowings
	 	 	24	 
	Section 2.4.Swingline Commitment
	 	 	24	 
	Section 2.5.Funding of Borrowings
	 	 	26	 
	Section 2.6.Interest Elections
	 	 	26	 
	Section 2.7.Optional Reduction and Termination of Commitments
	 	 	27	 
	Section 2.8.Repayment of Loans
	 	 	28	 
	Section 2.9.Evidence of Indebtedness
	 	 	28	 
	Section 2.10.Optional Prepayments
	 	 	29	 
	Section 2.11.Mandatory Prepayments
	 	 	29	 
	Section 2.12.Interest on Loans
	 	 	29	 
	Section 2.13.Fees
	 	 	30	 
	Section 2.14.Computation of Interest and Fees
	 	 	31	 
	Section 2.15.Inability to Determine Interest Rates
	 	 	31	 
	Section 2.16.Illegality
	 	 	32	 
	Section 2.17.Increased Costs
	 	 	32	 
	Section 2.18.Funding Indemnity
	 	 	33	 
	Section 2.19.Taxes
	 	 	34	 
	Section 2.20.Payments Generally; Pro Rata Treatment; Sharing of Set-offs
	 	 	36	 
	Section 2.21.Letters of Credit
	 	 	37	 
	Section 2.22.Increase of Commitments; Additional Lenders
	 	 	41	 
	Section 2.23.Mitigation of Obligations
	 	 	43	 
	ARTICLE III CONDITIONS PRECEDENT TO LOANS AND LETTERS OF CREDIT
	 	 	45	 
	Section 3.1.Conditions To Effectiveness
	 	 	45	 
	Section 3.2.Each Credit Event
	 	 	47	 
	Section 3.3.Delivery of Documents
	 	 	47	 
	ARTICLE IV REPRESENTATIONS AND WARRANTIES
	 	 	47	 
	Section 4.1.Existence; Power
	 	 	48	 
	Section 4.2.Organizational Power; Authorization
	 	 	48	 
	Section 4.3.Governmental Approvals; No Conflicts
	 	 	48	 
	Section 4.4.Financial Statements
	 	 	48	 
	Section 4.5.Litigation and Environmental Matters
	 	 	48	 
	Section 4.6.Compliance with Laws and Agreements
	 	 	49	 
	Section 4.7.Investment Company Act, Etc.
	 	 	49	 
	Section 4.8.Taxes
	 	 	49	 
	Section 4.9.Margin Regulations
	 	 	49	 
	Section 4.10.ERISA
	 	 	50	 

 

 

	 	 	 	 	 
	 	 	Page

	Section 4.11.Ownership of Property
	 	 	50	 
	Section 4.12.Disclosure
	 	 	50	 
	Section 4.13.Labor Relations
	 	 	51	 
	Section 4.14.Subsidiaries
	 	 	51	 
	Section 4.15.Insolvency
	 	 	51	 
	Section 4.16.OFAC
	 	 	51	 
	Section 4.17.Patriot Act
	 	 	51	 
	ARTICLE V AFFIRMATIVE COVENANTS
	 	 	52	 
	Section 5.1.Financial Statements and Other Information
	 	 	52	 
	Section 5.2.Notices of Material Events
	 	 	53	 
	Section 5.3.Existence; Conduct of Business
	 	 	54	 
	Section 5.4.Compliance with Laws, Etc.
	 	 	54	 
	Section 5.5.Payment of Obligations
	 	 	54	 
	Section 5.6.Books and Records
	 	 	54	 
	Section 5.7.Visitation, Inspection, Etc.
	 	 	54	 
	Section 5.8.Maintenance of Properties; Insurance
	 	 	55	 
	Section 5.9.Use of Proceeds and Letters of Credit
	 	 	55	 
	Section 5.10.Additional Subsidiaries
	 	 	55	 
	Section 5.11.Further Assurances
	 	 	56	 
	Section 5.12.Information Regarding Collateral
	 	 	56	 
	ARTICLE VI FINANCIAL COVENANTS
	 	 	57	 
	Section 6.1.Net Leverage Ratio
	 	 	57	 
	Section 6.2.Fixed Charge Coverage Ratio
	 	 	57	 
	Section 6.3.Consolidated Net Worth
	 	 	57	 
	Section 6.4.Minimum EBITDA
	 	 	57	 
	Section 6.5.Minimum Cash Balance
	 	 	57	 
	ARTICLE VII NEGATIVE COVENANTS
	 	 	58	 
	Section 7.1.Indebtedness.
	 	 	58	 
	Section 7.2.Negative Pledge
	 	 	59	 
	Section 7.3.Fundamental Changes
	 	 	59	 
	Section 7.4.Investments, Loans, Etc.
	 	 	60	 
	Section 7.5.Restricted Payments
	 	 	62	 
	Section 7.6.Sale of Assets
	 	 	62	 
	Section 7.7.Transactions with Affiliates
	 	 	62	 
	Section 7.8.Restrictive Agreements
	 	 	63	 
	Section 7.9.Hedging Transactions
	 	 	63	 
	Section 7.10.Amendment to Material Documents
	 	 	63	 
	Section 7.11.Accounting Changes
	 	 	64	 
	ARTICLE VIII EVENTS OF DEFAULT
	 	 	64	 
	Section 8.1.Events of Default
	 	 	64	 
	ARTICLE IX THE ADMINISTRATIVE AGENT
	 	 	66	 
	Section 9.1.Appointment of Administrative Agent
	 	 	66	 
	Section 9.2.Nature of Duties of Administrative Agent
	 	 	67	 
	Section 9.3.Lack of Reliance on the Administrative Agent
	 	 	68	 
	Section 9.4.Certain Rights of the Administrative Agent
	 	 	68	 

ii

 

	 	 	 	 	 
	 	 	Page

	Section 9.5.Reliance by Administrative Agent
	 	 	68	 
	Section 9.6.The Administrative Agent in its Individual Capacity
	 	 	68	 
	Section 9.7.Successor Administrative Agent
	 	 	68	 
	Section 9.8.Authorization to Execute other Loan Documents
	 	 	69	 
	Section 9.9.Syndication Agent; Documentation Agents
	 	 	69	 
	ARTICLE X MISCELLANEOUS
	 	 	69	 
	Section 10.1.Notices
	 	 	69	 
	Section 10.2.Waiver; Amendments
	 	 	71	 
	Section 10.3.Expenses; Indemnification
	 	 	72	 
	Section 10.4.Successors and Assigns
	 	 	74	 
	Section 10.5.Governing Law; Jurisdiction; Consent to Service of Process
	 	 	76	 
	Section 10.6.WAIVER OF JURY TRIAL
	 	 	77	 
	Section 10.7.Right of Setoff
	 	 	77	 
	Section 10.8.Counterparts; Integration
	 	 	77	 
	Section 10.9.Survival
	 	 	78	 
	Section 10.10.Severability
	 	 	78	 
	Section 10.11.Confidentiality
	 	 	78	 
	Section 10.12.Interest Rate Limitation
	 	 	79	 
	Section 10.13.Waiver of Effect of Corporate Seal
	 	 	79	 
	ARTICLE XI CROSS GUARANTY
	 	 	79	 
	Section 11.1.Cross Guaranty
	 	 	79	 
	Section 11.2.Waivers by Borrowers
	 	 	80	 
	Section 11.3.Benefit of Guaranty
	 	 	80	 
	Section 11.4.Waiver of Subrogation, Etc.
	 	 	80	 
	Section 11.5.Election of Remedies
	 	 	80	 
	Section 11.6.Limitation
	 	 	81	 
	Section 11.7.Contribution with Respect to Guaranty Obligations
	 	 	81	 
	Section 11.8.Liability Cumulative
	 	 	82	 

iii

 

Schedules

	 	 	 	 	 
	Schedule I

	 	-
	 	Applicable Margin and Applicable Percentage
	Schedule 4.5

	 	-
	 	Environmental Matters
	Schedule 4.14

	 	-
	 	Subsidiaries
	Schedule 7.1

	 	-
	 	Outstanding Indebtedness
	Schedule 7.2

	 	-
	 	Existing Liens
	Schedule 7.4

	 	-
	 	Existing Investments
	Schedule 7.7

	 	-
	 	Transactions with Affiliates
	Schedule 7.8

	 	-
	 	Agreements with Restrictive Covenants

Exhibits

	 	 	 	 	 
	Exhibit A

	 	-
	 	Form of Revolving Credit Note
	Exhibit B

	 	-
	 	Form of Swingline Note
	Exhibit C

	 	-
	 	Form of Assignment and Acceptance
	Exhibit D

	 	-
	 	Form of Subsidiary Guaranty Agreement
	 
	Exhibit 2.3

	 	-
	 	Form of Notice of Revolving Borrowing
	Exhibit 2.4

	 	-
	 	Form of Notice of Swingline Borrowing
	Exhibit 2.6

	 	-
	 	Form of Continuation/Conversion
	Exhibit 5.1(c)

	 	-
	 	Form of Compliance Certificate

iv

 

REVOLVING CREDIT AGREEMENT

          THIS REVOLVING CREDIT AGREEMENT (this “Agreement”) is made and entered
into as of August 20, 2004, by and among CHECKFREE CORPORATION, a Delaware
corporation (the “Parent”), CHECKFREE SERVICES CORPORATION, a Delaware
corporation (“Services”), and CHECKFREE INVESTMENT CORPORATION, a Nevada
corporation (“Checkfree Investment”; and together with the Parent and Services,
each a “Borrower” and collectively, the “Borrowers”), the several banks and
other financial institutions from time to time party hereto (the “Lenders”),
and SUNTRUST BANK, in its capacity as administrative agent for the Lenders (the
“Administrative Agent”), as issuing bank (the “Issuing Bank”), and as swingline
lender (the “Swingline Lender”).

W I T N E S S E T H:

          WHEREAS, the Borrowers have requested that the Lenders establish a
$185,000,000 revolving credit facility in favor of the Borrowers;

          WHEREAS, subject to the terms and conditions of this Agreement, the
Lenders, to the extent of their respective Commitments as defined herein, are
willing severally to establish the requested revolving credit facility in favor
of the Borrowers.

          NOW, THEREFORE, in consideration of the premises and the mutual covenants
herein contained, the Borrowers, the Lenders, Administrative Agent, the Issuing
Bank and the Swingline Lender agree as follows:

ARTICLE I

DEFINITIONS; CONSTRUCTION

          Section 1.1. Definitions. In addition to the other terms defined herein,
the following terms used herein shall have the meanings herein specified (to be
equally applicable to both the singular and plural forms of the terms defined):

          “Account Debtor” shall mean any Person who is obligated under an Account.

          “Accounts” shall mean, for any Person, all “accounts” (as defined in the
UCC), now or hereafter owned or acquired by such Person or in which such Person
now or hereafter has or acquires any rights and, in any event, shall mean and
include, without limitation, (a) all accounts receivable, contract rights, book
debts, notes, drafts and other obligations or indebtedness owing to such Person
arising from the sale or lease of goods or other property by it or the
performance of services by it (including, without limitation, any such
obligation which might be characterized as an account, contract right or
general intangible under the Uniform Commercial Code in effect in any
jurisdiction), (b) all of such Person’s rights in, to and under all purchase
and sales orders for goods, services or other property, and all of such
Person’s rights to any goods, services or other property represented by any of
the foregoing (including returned or repossessed goods and unpaid sellers’
rights of rescission, replevin, reclamation and rights to
stoppage in transit), (c) all monies due to or to become due to such
Person under all contracts for the sale, lease or exchange of goods or other
property or the performance of services by it

 

 

(whether or not yet earned by
performance on the part of such Person), and (d) all collateral security and
guarantees of any kind given to such Person with respect to any of the
foregoing.

          “ACH Master Agreements” shall mean, collectively, ACH Master Agreement #1
and Future ACH Master Agreements.

          “ACH Master Agreement #1” shall mean that certain Master Agreement, dated
as of August 5, 2003, by and among Services, SunTrust Bank and Bastogne.

          “ACH Program Documents” shall mean the ACH Master Agreements, and all
other documents and agreements by and among Services or one of its Affiliates
and either ACH Provider, relating to the ACH Programs.

          “ACH Programs” shall mean all programs and arrangements among Services,
its affiliates and any ACH Provider to provide ACH Services.

          “ACH Provider” shall mean either SunTrust Bank or Bank of America, N.A. or
any other Lender, as providers to Services or its affiliates of ACH Services.

          “ACH Services” shall mean the provision of access, through the use of
routing and transit numbers, to the ACH processing, clearing and settlement
capability offered by the Federal Reserve Bank.

          “Additional Lender” shall have the meaning given to such term in Section
2.22.

          “Adjusted LIBO Rate” shall mean, with respect to each Interest Period for
a Eurodollar Borrowing, the rate per annum obtained by dividing (a) LIBOR for
such Interest Period by (b) a percentage equal to 1.00 minus the Eurodollar
Reserve Percentage.

          “Administrative Questionnaire” shall mean, with respect to each Lender, an
administrative questionnaire in the form prepared by the Administrative Agent
and submitted to the Administrative Agent duly completed by such Lender.

          “Affiliate” shall mean, as to any Person, any other Person that directly,
or indirectly through one or more intermediaries, Controls, is Controlled by,
or is under common Control with, such Person. For purposes of this
definition, “Control” shall mean the power, directly or indirectly, either to
(a) vote 10% or more of securities having ordinary voting power for the
election of directors (or persons performing similar functions) of a Person or
(b) direct or cause the direction of the management and policies of a Person,
whether through the ability to exercise voting power, by control or otherwise.
The terms “Controlling”, “Controlled by”, and “under common Control with” have
meanings correlative thereto.

          “Aggregate Revolving Commitment Amount” shall mean the aggregate principal
amount of the Aggregate Revolving Commitments from time to time. On the
Closing Date, the Aggregate Revolving Commitment Amount equals $185,000,000.

          “Aggregate Revolving Commitments” shall mean, collectively, all Revolving
Commitments of all Lenders at any time outstanding.

2

 

          “Aggregate Subsidiary Threshold” shall mean (i) for Consolidated EBITDA,
an amount equal to seventy-five percent (75%) of Consolidated EBITDA of the
Parent and its Subsidiaries for the most recent Fiscal Quarter as shown on the
financial statements most recently delivered or required to be delivered
pursuant to Section 5.1(a) or (b), as the case may be and (ii) cash, Permitted
Investments, short and long term investments, accounts receivable and fixed
assets, an amount equal to seventy-five percent (75%) of the consolidated cash,
Permitted Investments, short and long term investments, accounts receivable and
fixed assets of the Parent and its Subsidiaries for the most recent Fiscal
Quarter as shown on the financial statements most recently delivered or
required to be delivered pursuant to Section 5.1(a) or (b), as
the case may be.

          “Applicable Lending Office” shall mean, for each Lender and for each Type
of Loan, the “Lending Office” of such Lender (or an Affiliate of such Lender)
designated for such Type of Loan in the Administrative Questionnaire submitted
by such Lender or such other office of such Lender (or an Affiliate of such
Lender) as such Lender may from time to time specify to the Administrative
Agent and the Borrowers as the office by which its Loans of such Type are to be
made and maintained.

          “Applicable Margin” shall mean, as of any date, with respect to interest
on all Revolving Loans outstanding on any date or the letter of credit fee, as
the case may be, a percentage per annum determined by reference to the
applicable Leverage Ratio from time to time in effect as set forth on Schedule
I; provided, that a change in the Applicable Margin resulting from a change in
the Leverage Ratio shall be effective on the second Business Day after which
the Parent delivers the financial statements required by Section 5.1(a) or (b)
and the Compliance Certificate required by Section 5.1(c); provided further,
that if at any time the Parent shall have failed to deliver such financial
statements and such Compliance Certificate when so required, the Applicable
Margin shall be at Level IV as set forth on Schedule I until such time as such
financial statements and Compliance Certificate are delivered, at which time
the Applicable Margin shall be determined as provided above. Notwithstanding
the foregoing, the Applicable Margin from the Closing Date until the financial
statements and Compliance Certificate for the Fiscal Quarter ending September
30, 2004 are required to be delivered shall be at Level II as set forth on
Schedule I.

          “Applicable Percentage” shall mean, as of any date, with respect to the
commitment fee as of any date, the percentage per annum determined by reference
to the applicable Leverage Ratio in effect on such date as set forth on
Schedule I; provided, that a change in the Applicable Percentage resulting from
a change in the Leverage Ratio shall be effective on the second Business Day
after which the Parent delivers the financial statements required by Section
5.1(a) or (b) and the Compliance Certificate required by Section 5.1(c);
provided further, that if at any time the Parent shall have failed to deliver
such financial statements and such Compliance Certificate, the Applicable
Percentage shall be at Level IV as set forth on Schedule I until such time as
such financial statements and Compliance Certificate are delivered, at which
time the Applicable Percentage shall be determined as provided above.
Notwithstanding the foregoing, the Applicable Percentage for the commitment fee
from the
Closing Date until the financial statements and Compliance Certificate for
the Fiscal Quarter ending September 30, 2004 are required to be delivered shall
be at Level II as set forth on Schedule I.

3

 

          “Approved Fund” shall mean any Person (other than a natural Person) that
is (or will be) engaged in making, purchasing, holding or otherwise investing
in commercial loans and similar extensions of credit in the ordinary course of
its business and that is administered or managed by (a) a Lender, (b) an
Affiliate of a Lender or (c) an entity or an Affiliate of an entity that
administers or manages a Lender.

          “ARC Transmission Agreement” shall mean that certain ARC Transmission
Services Agreement, dated as of August 20, 2004, between Services and SunTrust
Bank.

          “Assignment and Acceptance” shall mean an assignment and acceptance
entered into by a Lender and an assignee (with the consent of any party whose
consent is required by Section 10.4(b)) and accepted by the Administrative
Agent, in the form of Exhibit C attached hereto or any other form approved by
the Administrative Agent.

          “Availability Period” shall mean the period from the Closing Date to the
Termination Date.

          “Base Rate” shall mean the higher of (a) the per annum rate which the
Administrative Agent publicly announces from time to time to be its prime
lending rate, as in effect from time to time, and (b) the Federal Funds Rate,
as in effect from time to time, plus one-half of one percent (0.50%). The
Administrative Agent’s prime lending rate is a reference rate and does not
necessarily represent the lowest or best rate charged to customers. The
Administrative Agent may make commercial loans or other loans at rates of
interest at, above or below the Administrative Agent’s prime lending rate.
Each change in the Administrative Agent’s prime lending rate shall be effective
from and including the date such change is publicly announced as being
effective.

          “Bastogne”
shall mean Bastogne, Inc., a Nevada corporation.

          “Borrowing” shall mean a borrowing consisting of (i) Loans of the same
Class and Type, made, converted or continued on the same date and in case of
Eurodollar Loans, as to which a single Interest Period is in effect, or (ii) a
Swingline Loan.

          “Business” shall mean Services’ bill payment service for Subscribers and
the collection and disbursement services provided by Bastogne in connection
therewith.

          “Business Day” shall mean (i) any day other than a Saturday, Sunday or
other day on which commercial banks in Atlanta, Georgia are authorized or
required by law to close and (ii) if such day relates to a Borrowing of, a
payment or prepayment of principal or interest on, a conversion of or into, or
an Interest Period for, a Eurodollar Loan or a notice with respect to any of
the foregoing, any day on which dealings in Dollars are carried on in the
London interbank market.

          “Capital Expenditures” shall mean for any period, without duplication, (i)
the additions to property, plant and equipment and other capital expenditures
of the Parent and its Subsidiaries that are (or upon acquisition would be) set
forth on a consolidated statement of cash flows of the Parent for such period
prepared in accordance with GAAP and (ii) Capital Lease Obligations incurred by
the Parent and its Subsidiaries during such period.

4

 

          “Capital Lease Obligations” of any Person shall mean all obligations of
such Person to pay rent or other similar amounts under any lease (or other
arrangement conveying the right to use) of real or personal property, or a
combination thereof, which obligations are required to be classified and
accounted for as capital leases on a balance sheet of such Person under GAAP,
and the amount of such obligations shall be the capitalized amount thereof
determined in accordance with GAAP.

          “Capital Stock” shall mean any non-redeemable capital stock (or in the
case of a partnership or limited liability company, the partners’ or members’
equivalent equity interest) of the Parent or any of its Subsidiaries (to the
extent issued to a Person other than the Parent), whether common or preferred.

          “Change in Control” shall mean the occurrence of one or more of the
following events: (a) any sale, lease, exchange or other transfer (in a single
transaction or a series of related transactions) of all or substantially all of
the assets of the Parent to any Person or “group” (within the meaning of the
Securities Exchange Act of 1934 and the rules of the Securities and Exchange
Commission thereunder in effect on the date hereof), (b) the acquisition of
ownership, directly or indirectly, beneficially or of record, by any Person or
“group” (within the meaning of the Securities Exchange Act of 1934 and the
rules of the Securities and Exchange Commission thereunder as in effect on the
date hereof) of 30% or more of the outstanding shares of the voting stock of
the Parent; or (c) occupation of a majority of the seats (other than vacant
seats) on the board of directors of the Parent by Persons who were neither (i)
nominated by the current board of directors or (ii) appointed by directors so
nominated; or (d) the failure of the Parent to own and control, directly or
indirectly, 100% of the issued and outstanding capital stock of any other
Borrower (unless otherwise permitted hereunder).

          “Change in Law” shall mean (a) the adoption of any applicable law, rule or
regulation after the date of this Agreement, (b) any change in any applicable
law, rule or regulation, or any change in the interpretation or application
thereof, by any Governmental Authority after the date of this Agreement, or (c)
compliance by any Lender (or its Applicable Lending Office) or the Issuing Bank
(or for purposes of Section 2.17(b), by such Lender’s or the Issuing Bank’s
parent corporation, if applicable) with any request, guideline or directive
(whether or not having the force of law) of any Governmental Authority made or
issued after the date of this Agreement.

          “Class”, when used in reference to any Loan or Borrowing, refers to
whether such Loan, or the Loans comprising such Borrowing, are Revolving Loans
or Swingline Loans and when used in reference to any Commitment, refers to
whether such Commitment is a Revolving Commitment or a Swingline Commitment.

          “Closing Date” shall mean the date on which the conditions precedent set
forth in Section 3.1 and Section 3.2 have been satisfied or waived in
accordance with Section 10.2.

          “Code” shall mean the Internal Revenue Code of 1986, as amended and in
effect from time to time.

5

 

          “Collateral” shall mean all tangible and intangible property of any Loan
Party that is the subject of a Lien granted pursuant to a Loan Document to the
Collateral Agent for the benefit of the Secured Parties to secure the whole or
any part of the Obligations or any Guarantee thereof, and shall include,
without limitation, all casualty insurance proceeds and condemnation awards
with respect to any of the foregoing.

          “Collateral Agent” shall mean SunTrust Bank, in its capacity as collateral
agent for the Secured Parties.

          “Commitment” shall mean a Revolving Commitment or a Swingline Commitment
or any combination thereof (as the context shall permit or require).

          “Compliance Certificate” shall mean a certificate from the principal
financial officer of the Parent in the form of, and containing the
certifications set forth in, the certificate attached hereto as Exhibit 5.1(c).

          “Consolidated EBITDA” shall mean, for the Parent and its Subsidiaries for
any period, an amount equal to the sum of (i) Consolidated Net Income for such
period plus (ii) to the extent deducted in determining Consolidated Net Income
for such period, (A) Consolidated Interest Expense, (B) income tax expense
determined on a consolidated basis in accordance with GAAP, (C) depreciation
and amortization determined on a consolidated basis in accordance with GAAP,
(D) write-downs of in-process research and development costs determined on a
consolidated basis in accordance with GAAP, (E) non-recurring cash charges for
severance determined on a consolidated basis in accordance with GAAP in an
amount not to exceed 5% of Consolidated EBITDA (excluding this clause (E)), (F)
non-cash charges incurred in connection with the issuance of stock options and
(G) all other non-recurring non-cash charges, including, without limitation,
non-cash charges incurred in connection with the issuance by Parent of
warrants, determined on a consolidated basis in accordance with GAAP, in each
case for such period; provided, however, that with respect to any Person, or
substantially all of the assets of a Person, that is no longer a Subsidiary of
the Parent or its Subsidiaries or became a Subsidiary of the Parent or its
Subsidiaries, or was merged with or consolidated into, or acquired by, the
Parent or its Subsidiaries during such period, Consolidated EBITDA shall also
exclude or include, as the case may be, subject to the Administrative Agent’s
reasonable satisfactory review, the Consolidated EBITDA of such Person or the
Consolidated EBITDA attributable to such assets of such Person during such
period as if such Person or assets were sold or acquired as of the first day of
such period.

          “Consolidated EBITDAR” shall mean, for the Parent and its Subsidiaries for
any period, an amount equal to the sum of (i) Consolidated EBITDA for such
period and (ii) Consolidated Lease Expense for such period.

          “Consolidated Fixed Charges” shall mean, for the Parent and its
Subsidiaries for any period, the sum (without duplication) of (i) Consolidated
Interest Expense for such period and (ii) Consolidated Lease Expense for such
period.

          “Consolidated Interest Expense” shall mean, for the Parent and its
Subsidiaries for any period determined on a consolidated basis in accordance
with GAAP, the sum of (i) total

6

 

interest expense in connection with
Indebtedness, including without limitation the interest component of any
payments in respect of Capital Lease Obligations capitalized or expensed during
such period (whether or not actually paid during such period) plus (ii) the net
amount payable (or minus the net amount receivable) with respect to Hedging
Obligations during such period (whether or not actually paid or received during
such period).

          “Consolidated Lease Expense” shall mean, for the Parent and its
Subsidiaries for any period, the aggregate amount of fixed and contingent
rentals payable with respect to leases of real and personal property (excluding
Capital Lease Obligations) determined on a consolidated basis in accordance
with GAAP for such period.

          “Consolidated Net Income” shall mean, for the Parent and its Subsidiaries
for any period, the net income (or loss) of the Parent and its Subsidiaries for
such period determined on a consolidated basis in accordance with GAAP,
excluding therefrom (to the extent otherwise included therein) (i) any
extraordinary gains or losses, (ii) any gains attributable to write-ups of
assets, (iii) any equity interest of the Parent or any Subsidiary of the Parent
in the unremitted earnings of any Person that is not a Subsidiary and (iv) any
income (or loss) of any Person or assets of any Person accrued after the date
such Person ceased to be a Subsidiary or such assets were sold or otherwise
disposed of by such Person; provided, however, that Consolidated Net Income
shall include therein (to the extent otherwise excluded therefrom) any income
(or loss) of any Person accrued prior to the date it became a Subsidiary, or
was merged into or consolidated with the Parent or any Subsidiary, or the date
that such Person’s assets are acquired by the Parent or any Subsidiary.

          “Consolidated Net Worth” shall mean, as of any date, (i) the total assets
of the Parent and its Subsidiaries that would be reflected on the Parent’s
consolidated balance sheet as of such date prepared in accordance with GAAP,
after eliminating all amounts properly attributable to minority interests, if
any, in the stock and surplus of Subsidiaries, minus the sum of (i) the total
liabilities of the Parent and its Subsidiaries that would be reflected on the
Parent’s consolidated balance sheet as of such date prepared in accordance with
GAAP and (ii) the amount of any write-up in the book value of any assets
resulting from a revaluation thereof or any write-up in excess of the cost of
such assets acquired reflected on the consolidated balance sheet of the Parent
as of such date prepared in accordance with GAAP.

          “Consolidated Total Debt” shall mean, as of any date, all Indebtedness of
the Parent and its Subsidiaries measured on a consolidated basis on such date,
excluding Indebtedness of the type described in clause (xi) of the definition
of Indebtedness.

          “Consolidated Total Net Debt” shall mean, as of any date, (i) Consolidated
Total Debt, less (ii) all cash, cash equivalents and marketable securities of
the Parent and its
Subsidiaries, as determined in accordance with GAAP to the extent
maintained in domestic deposit accounts or investment accounts.

          “Contractual
Obligation” of any Person shall mean any provision of any
security issued by such Person or of any agreement, instrument or
undertaking under which such Person is obligated or by which it or any
of the property in which it has an interest is bound.

7

 

          “Copyright” shall have the meaning assigned to such term in the Security
Agreement.

          “Default” shall mean any condition or event that, with the giving of
notice or the lapse of time or both, would constitute an Event of Default.

          “Default Interest” shall have the meaning set forth in Section 2.12(c).

          “Dollar(s)” and the sign “$” shall mean lawful money of the United States
of America.

          “Domestic Subsidiary” shall mean any Subsidiary that is not a Foreign
Subsidiary.

          “Electronic Commerce Services Division” shall mean any division of
Services’ businesses which provides or supports services related to any
electronic commerce transactions or services, including, without limitation,
the Business and the Services’ bill presentment business.

          “Eligible Assignee” shall mean (i) a Lender; (ii) an Affiliate of a
Lender; (iii) an Approved Fund; and (iv) any other Person (other than a natural
Person) approved by the Administrative Agent, the Issuing Bank, and unless an
Event of Default has occurred and is continuing, the Parent (each such approval
not to be unreasonably withheld or delayed). If the consent of the Parent to
an assignment or to an Eligible Assignee is required hereunder (including a
consent to an assignment which does not meet the minimum assignment thresholds
specified in Section 10.4(b)(i)), the Parent shall be deemed to have given its
consent five Business Days after the date notice thereof has actually been
delivered by the assigning Lender (through the Administrative Agent) to the
Parent, unless such consent is expressly refused by the Parent prior to such
fifth Business Day.

          “Environmental Laws” shall mean all laws, rules, regulations, codes,
ordinances, orders, decrees, judgments, injunctions, notices or binding
agreements issued, promulgated or entered into by or with any Governmental
Authority, relating in any way to the environment, preservation or reclamation
of natural resources, the management, Release or threatened Release of any
Hazardous Material or to health and safety matters.

          “Environmental Liability” shall mean any liability, contingent or
otherwise (including any liability for damages, costs of environmental
investigation and remediation, costs of administrative oversight, fines,
natural resource damages, penalties or indemnities), of any Borrower or any
Subsidiary directly or indirectly resulting from or based upon (i) any actual
or alleged violation of any Environmental Law, (ii) the generation, use,
handling, transportation,
storage, treatment or disposal of any Hazardous Materials, (iii) any
actual or alleged exposure to any Hazardous Materials, (iv) the Release or
threatened Release of any Hazardous Materials or (v) any contract, agreement or
other consensual arrangement pursuant to which liability is assumed or imposed
with respect to any of the foregoing.

          “Equipment” shall mean all equipment, machinery, apparatus, fittings,
fixtures and other tangible personal property of every kind and description
used in the Electronic

8

 

Commerce Services Division of Services or owned by
Services or in which Services has an interest, and all parts, accessories and
special tools and all increases and accessions thereto and substitutions and
replacements therefor.

          “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as
amended from time to time, and any successor statute.

          “ERISA Affiliate” shall mean any trade or business (whether or not
incorporated), which, together with the Borrowers, is treated as a single
employer under Section 414(b) or (c) of the Code or, solely for the purposes of
Section 302 of ERISA and Section 412 of the Code, is treated as a single
employer under Section 414 of the Code.

          “ERISA Event” shall mean (i) any “reportable event”, as defined in
Section 4043 of ERISA or the regulations issued thereunder with respect to a
Plan (other than an event for which the 30-day notice period is waived); (ii)
the existence with respect to any Plan of an “accumulated funding deficiency”
(as defined in Section 412 of the Code or Section 302 of ERISA), whether or not
waived; (iii) the filing pursuant to Section 412(d) of the Code or Section
303(d) of ERISA of an application for a waiver of the minimum funding standard
with respect to any Plan; (iv) the incurrence by the Parent or any of its ERISA
Affiliates of any liability under Title IV of ERISA with respect to the
termination of any Plan; (v) the receipt by the Parent or any ERISA Affiliate
from the PBGC or a plan administrator appointed by the PBGC of any notice
relating to an intention to terminate any Plan or Plans or to appoint a trustee
to administer any Plan; (vi) the incurrence by the Parent or any of its ERISA
Affiliates of any liability with respect to the withdrawal or partial
withdrawal from any Plan or Multiemployer Plan; or (vii) the receipt by the
Parent or any ERISA Affiliate of any notice, or the receipt by any
Multiemployer Plan from the Parent or any ERISA Affiliate of any notice,
concerning the imposition of Withdrawal Liability or a determination that a
Multiemployer Plan is, or is expected to be, insolvent or in reorganization,
within the meaning of Title IV of ERISA.

          “Eurodollar” when used in reference to any Loan or Borrowing, refers to
whether such Loan, or the Loans comprising such Borrowing, bears interest at a
rate determined by reference to the Adjusted LIBO Rate.

          “Eurodollar Reserve Percentage” shall mean the aggregate of the maximum
reserve percentages (including, without limitation, any emergency,
supplemental, special or other marginal reserves) expressed as a decimal
(rounded upwards to the next 1/100th of 1%) in effect on any day to which the
Administrative Agent is subject with respect to the Adjusted LIBO Rate pursuant
to regulations issued by the Board of Governors of the Federal Reserve System
(or any Governmental Authority succeeding to any of its principal functions)
with respect to eurocurrency funding (currently referred to as “eurocurrency
liabilities” under Regulation D).
Eurodollar Loans shall be deemed to constitute eurocurrency funding and to
be subject to such reserve requirements without benefit of or credit for
proration, exemptions or offsets that may be available from time to time to any
Lender under Regulation D. The Eurodollar Reserve Percentage shall be adjusted
automatically on and as of the effective date of any change in any reserve
percentage.

          “Event of Default” shall have the meaning provided in Article VIII.

9

 

          “Excluded Taxes” shall mean with respect to the Administrative Agent, any
Lender, the Issuing Bank or any other recipient of any payment to be made by or
on account of any obligation of any Borrower hereunder, (a) income or franchise
taxes imposed on (or measured by) its net income by the United States of
America, or by the jurisdiction under the laws of which such recipient is
organized or in which its principal office is located or, in the case of any
Lender, in which its applicable lending office is located, (b) any branch
profits taxes imposed by the United States of America or any similar tax
imposed by any other jurisdiction in which any Lender is located and (c) in the
case of a Foreign Lender, any withholding tax that (i) is imposed on amounts
payable to such Foreign Lender at the time such Foreign Lender becomes a party
to this Agreement, (ii) is imposed on amounts payable to such Foreign Lender at
any time that such Foreign Lender designates a new lending office, other than
taxes that have accrued prior to the designation of such lending office that
are otherwise not Excluded Taxes, and (C) is attributable to such Foreign
Lender’s failure to comply with Section 2.19(e).

          “Federal Funds Rate” shall mean, for any day, the rate per annum (rounded
upwards, if necessary, to the next 1/100th of 1%) equal to the weighted average
of the rates on overnight Federal funds transactions with member banks of the
Federal Reserve System arranged by Federal funds brokers, as published by the
Federal Reserve Bank of New York on the next succeeding Business Day or if such
rate is not so published for any Business Day, the Federal Funds Rate for such
day shall be the average rounded upwards, if necessary, to the next 1/100th of
1% of the quotations for such day on such transactions received by the
Administrative Agent from three Federal funds brokers of recognized standing
selected by the Administrative Agent.

          “Fee Letter” shall mean that certain fee letter, dated as of April 9,
2004, executed by SunTrust Capital Markets, Inc. and SunTrust Bank and accepted
by Parent.

          “Fiscal Quarter” shall mean any fiscal quarter of the Parent.

          “Fiscal Year” shall mean any fiscal year of the Parent.

          “Fixed Charge Coverage Ratio” shall mean, as of any date, the ratio of (a)
Consolidated EBITDAR to (b) Consolidated Fixed Charges, in each case measured
for the four consecutive Fiscal Quarters ending on or immediately prior to such
date.

          “Foreign Lender” shall mean any Lender that is not a United States person
under Section 7701(a)(3) of the Code.

          “Foreign Subsidiary” shall mean any Subsidiary that is organized under the
laws of a jurisdiction other than one of the fifty states of the United States
or the District of Columbia.

          “Future ACH Master Agreements” shall mean agreements entered into after
the Closing Date between Checkfree Services and a Lender for the provision of
ACH Services.

          “GAAP” shall mean generally accepted accounting principles in the United
States applied on a consistent basis and subject to the terms of Section 1.3.

10

 

          “Governmental Authority” shall mean the government of the United States of
America, any other nation or any political subdivision thereof, whether state
or local, and any agency, authority, instrumentality, regulatory body, court,
central bank or other entity exercising executive, legislative, judicial,
taxing, regulatory or administrative powers or functions of or pertaining to
government.

          “Guarantee” of or by any Person (the “guarantor”) shall mean any
obligation, contingent or otherwise, of the guarantor guaranteeing or having
the economic effect of guaranteeing any Indebtedness or other obligation of any
other Person (the “primary obligor”) in any manner, whether directly or
indirectly and including any obligation, direct or indirect, of the guarantor
(i) to purchase or pay (or advance or supply funds for the purchase or payment
of) such Indebtedness or other obligation or to purchase (or to advance or
supply funds for the purchase of) any security for the payment thereof, (ii) to
purchase or lease property, securities or services for the purpose of assuring
the owner of such Indebtedness or other obligation of the payment thereof,
(iii) to maintain working capital, equity capital or any other financial
statement condition or liquidity of the primary obligor so as to enable the
primary obligor to pay such Indebtedness or other obligation or (iv) as an
account party in respect of any letter of credit or letter of guaranty issued
in support of such Indebtedness or obligation; provided, that the term
“Guarantee” shall not include endorsements for collection or deposits in the
ordinary course of business. The amount of any Guarantee shall be deemed to be
an amount equal to the stated or determinable amount of the primary obligation
in respect of which Guarantee is made or, if not so stated or determinable, the
maximum reasonably anticipated liability in respect thereof (assuming such
Person is required to perform thereunder) as determined by such Person in good
faith. The term “Guarantee” used as a verb has a corresponding meaning.

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

          “Hedging Obligations” of any Person shall mean any and all obligations of
such Person, whether absolute or contingent and howsoever and whensoever
created, arising, evidenced or acquired under (i) any and all Hedging
Transactions, (ii) any and all cancellations, buy backs, reversals,
terminations or assignments of any Hedging Transactions and (iii) any and all
renewals, extensions and modifications of any Hedging Transactions and any and
all substitutions for any Hedging Transactions.

          “Hedging Transaction” of any Person shall mean any transaction (including
an agreement with respect thereto) now existing or hereafter entered into by
such Person that is a rate swap, basis swap, forward rate transaction,
commodity swap, interest rate option, foreign
exchange transaction, cap transaction, floor transaction, collateral
transaction, forward transaction, currency swap transaction, cross-currency
rate swap transaction, currency option or any other similar transaction
(including any option with respect to any of these transactions) or any
combination thereof, whether linked to one or more interest rates, foreign
currencies, commodity prices, equity prices or other financial measures.

11

 

          “Indebtedness” of any Person shall mean, without duplication (i) all
obligations of such Person for borrowed money, (ii) all obligations of such
Person evidenced by bonds, debentures, notes or other similar instruments,
(iii) all obligations of such Person in respect of the deferred purchase price
of property or services (other than trade payables incurred in the ordinary
course of business, (iv) all obligations of such Person under any conditional
sale or other title retention agreement(s) relating to property acquired by
such Person, (v) all Capital Lease Obligations of such Person, (vi) all
obligations, contingent or otherwise, of such Person in respect of letters of
credit, acceptances or similar extensions of credit, (vii) all Guarantees of
such Person of the type of Indebtedness described in clauses (i) through (vi)
above, (viii) all Indebtedness of a third party secured by any Lien on property
owned by such Person, whether or not such Indebtedness has been assumed by such
Person, (ix) all obligations of such Person, contingent or otherwise, to
purchase, redeem, retire or otherwise acquire for value any common stock of
such Person, (x) Off-Balance Sheet Liabilities and (xi) all Hedging
Obligations. The Indebtedness of any Person shall include the Indebtedness of
any partnership or joint venture in which such Person is a general partner or a
joint venturer, except to the extent that the terms of such Indebtedness
provide that such Person is not liable therefor.

          “Indemnified Taxes” shall mean Taxes other than Excluded Taxes.

          “Information Memorandum” shall mean the Confidential Information
Memorandum dated April, 2004 relating to the Borrowers and the transactions
contemplated by this Agreement and the other Loan Documents.

          “Intellectual Property Security Agreement” shall mean the Amended and
Restated Intellectual Property Security Agreement, dated as of the date hereof,
executed by Services in favor of the Collateral Agent.

          “Intercreditor Agreement” shall mean that certain Intercreditor Agreement,
dated as of the date hereof, by and among the Secured Parties and acknowledged
by the Borrowers.

          “Interest Period” shall mean with respect to (i) any Swingline Borrowing,
such period as the Swingline Lender and the Borrowers shall mutually agree, and
(ii) any Eurodollar Borrowing, a period of one, two, three or six months;
provided, that:

      (i) the initial Interest Period for such Borrowing shall commence on
the date of such Borrowing (including the date of any conversion from a
Borrowing of another Type), and each Interest Period occurring thereafter
in respect of such Borrowing shall commence on the day on which the next
preceding Interest Period expires;

      (ii) if any Interest Period would otherwise end on a day other than
a Business Day, such Interest Period shall be extended to the next
succeeding Business Day, unless
such Business Day falls in another calendar month, in which case
such Interest Period would end on the next preceding Business Day;

      (iii) any Interest Period which begins on the last Business Day of a
calendar month or on a day for which there is no numerically
corresponding day in the calendar

12

 

month at the end of such Interest
Period shall end on the last Business Day of such calendar month; and

      (iv) no Interest Period may extend beyond the Termination Date.

          “Investment Services Division” shall mean the division of Services’
business which provides or supports a range of investment portfolio management
services to financial institutions, including broker dealers, money managers
and investment advisors.

          “Issuing Bank” shall mean SunTrust Bank or any other Lender, each in its
capacity as an issuer of Letters of Credit pursuant to Section 2.21.

          “LC Commitment” shall mean that portion of the Aggregate Revolving
Commitments that may be used by the Borrowers for the issuance of Letters of
Credit in an aggregate face amount not to exceed $20,000,000.

          “LC Disbursement” shall mean a payment made by the Issuing Bank pursuant
to a Letter of Credit.

          “LC Documents” shall mean the Letters of Credit and all applications,
agreements and instruments relating to the Letters of Credit.

          “LC Exposure” shall mean, at any time, the sum of (i) the aggregate
undrawn amount of all outstanding Letters of Credit at such time, plus (ii) the
aggregate amount of all LC Disbursements that have not been reimbursed by or on
behalf of the Borrowers at such time. The LC Exposure of any Lender shall be
its Pro Rata Share of the total LC Exposure at such time.

          “Lenders” shall have the meaning assigned to such term in the opening
paragraph of this Agreement and shall include, where appropriate, the Swingline
Lender and each Additional Lender that joins this Agreement pursuant to Section
2.22.

          “Letter of Credit” shall mean any letter of credit issued pursuant to
Section 2.21 by the Issuing Bank for the account of the Borrowers pursuant to
the LC Commitment.

          “Leverage Ratio” shall mean, as of any date, the ratio of (i) Consolidated
Total Debt as of such date to (ii) Consolidated EBITDA for the four consecutive
Fiscal Quarters ending on or immediately prior to such date.

          “LIBOR” shall mean, for any applicable Interest Period with respect to any
Eurodollar Loan, the British Bankers’ Association Interest Settlement Rate per
annum for deposits in Dollars for a period equal to such Interest Period
appearing on the display designated as Page 3750 on the Dow Jones Markets
Service (or such other page on that service or such other service designated by
the British Bankers’ Association for the display of such Association’s
Interest Settlement Rates for Dollar deposits) as of 11:00 a.m. (London,
England time) on the day that is two Business Days prior to the first day of
the Interest Period or if such Page 3750 is unavailable for any reason at such
time, the rate which appears on the Reuters Screen ISDA Page as of such date
and such time; provided, that if the Administrative Agent determines that the
relevant foregoing sources are unavailable for the relevant Interest Period,
LIBOR shall mean the

13

 

rate of interest determined by the Administrative Agent to
be the average (rounded upward, if necessary, to the nearest 1/100th of 1%) of
the rates per annum at which deposits in Dollars are offered to the
Administrative Agent two (2) Business Days preceding the first day of such
Interest Period by leading banks in the London interbank market as of 10:00
a.m. (Atlanta, Georgia time) for delivery on the first day of such Interest
Period, for the number of days comprised therein and in an amount comparable to
the amount of the Eurodollar Loan of the Administrative Agent.

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

          “Loan Documents” shall mean, collectively, this Agreement, the Notes (if
any), the LC Documents, the Subsidiary Guaranty Agreement, the Security
Documents, the Intercreditor Agreement, all Notices of Borrowing, all Notices
of Conversion/Continuation, all Compliance Certificates, the Fee Letter, all
landlord waivers and consents, bailee agreements and any and all other
instruments, agreements, documents and writings executed in connection with any
of the foregoing.

          “Loan Parties” shall mean the Borrowers and the Subsidiary Loan Parties.

          “Loans” shall mean all Revolving Loans and Swingline Loans in the
aggregate or any of them, as the context shall require.

          “Material Adverse Effect” shall mean, with respect to any event, act,
condition or occurrence of whatever nature (including any adverse determination
in any litigation, arbitration, or governmental investigation or proceeding),
whether singularly or in conjunction with any other event or events, act or
acts, condition or conditions, occurrence or occurrences whether or not
related, a material adverse change in, or a material adverse effect on, (i) the
business, results of operations, financial condition, assets, liabilities or
prospects of the Parent and of the Parent and its Subsidiaries taken as a
whole, (ii) the ability of the Loan Parties to perform any of their respective
obligations under the Loan Documents, (iii) the rights and remedies of the
Administrative Agent, the Issuing Bank, the Swingline Lender and the Lenders
under any of the Loan Documents or (iv) the legality, validity or
enforceability of any of the Loan Documents.

          “Material Indebtedness” shall mean Indebtedness (other than the Loans and
Letters of Credit) or Hedging Obligations of the Parent or any of its
Subsidiaries in an aggregate principal amount exceeding $10,000,000. For
purposes of determining the amount of attributed
Indebtedness from Hedging Obligations, the “principal amount” of any Hedging
Obligations at any time shall be the Net Mark-to-Market Exposure of such
Hedging Obligations at such time.

          “Material Subsidiary” shall mean at any time any direct or indirect
Subsidiary of the Parent having: (a) assets in an amount equal to at least 10%
of the total assets of the Parent and its Subsidiaries determined on a
consolidated basis as of the last day of the most recent

14

 

Fiscal Quarter at such
time; or (b) Consolidated EBITDA (measured for such Subsidiary on a stand-alone
basis) in an amount equal to at least 10% of Consolidated EBITDA of the Parent
and its Subsidiaries on a consolidated basis for the 12-month period ending on
the last day of the most recent Fiscal Quarter at such time. Notwithstanding
the foregoing, “Material Subsidiary” shall not include any SPVs.

          “Material Domestic Subsidiary” shall mean any Domestic Subsidiary that is
also a Material Subsidiary or that owns a Material Subsidiary.

          “Merchants” shall mean individual and business merchants that Bastogne is
authorized and directed to pay by any Subscriber, and any financial
institutions to which Subscriber Funds (as such term is defined in the ACH
Master Agreement #1) are transferred in order to effect payments to such
individual and business merchants.

          “Moody’s” shall mean Moody’s Investors Service, Inc.

          “Multiemployer Plan” shall have the meaning set forth in Section
4001(a)(3) of ERISA.

          “Net Leverage Ratio” shall mean, as of any date, the ratio of (i)
Consolidated Total Net Debt as of such date to (ii) Consolidated EBITDA for the
four consecutive Fiscal Quarters ending on or immediately prior to such date;
provided, however, that with respect to the calculation of Net Leverage Ratio
pursuant to Section 3.2(c), Indebtedness outstanding under this Agreement will
be measured as of such date but all other Consolidated Total Net Debt shall be
measured as of the last day of the most recently ended fiscal month for which
the Borrower has closed its books, which the Borrower agrees to do promptly in
accordance with past practice.

          “Net Mark-to-Market Exposure” of any Person shall mean, as of any date of
determination with respect to any Hedging Obligation, the excess (if any) of
all unrealized losses over all unrealized profits of such Person arising from
such Hedging Obligation. “Unrealized losses” shall mean the fair market value
of the cost to such Person of replacing the Hedging Transaction giving rise to
such Hedging Obligation as of the date of determination (assuming the Hedging
Transaction were to be terminated as of that date), and “unrealized profits”
means the fair market value of the gain to such Person of replacing such
Hedging Transaction as of the date of determination (assuming such Hedging
Transaction were to be terminated as of that date).

          “Notes” shall mean, collectively, the Revolving Credit Notes and the
Swingline Note.

          “Notices of Borrowing” shall mean, collectively, the Notices of Revolving
Borrowing and the Notices of Swingline Borrowing.

          “Notice of Conversion/Continuation” shall mean the notice given by the
Parent to the Administrative Agent in respect of the conversion or continuation
of an outstanding Borrowing as provided in Section 2.6(b).

          “Notice of Revolving Borrowing” shall have the meaning as set forth in
Section 2.3.

15

 

          “Notice of Swingline Borrowing” shall have the meaning as set forth in
Section 2.4(b).

          “Obligations” shall mean all amounts owing by the Borrowers to the
Collateral Agent, the Administrative Agent, the Issuing Bank or any Lender
(including the Swingline Lender) pursuant to or in connection with this
Agreement or any other Loan Document, including without limitation, all
principal, interest (including any interest accruing after the filing of any
petition in bankruptcy or the commencement of any insolvency, reorganization or
like proceeding relating to any Borrower, whether or not a claim for
post-filing or post-petition interest is allowed in such proceeding), all
reimbursement obligations, fees, expenses, indemnification and reimbursement
payments, costs and expenses of the Collateral Agent, the Administrative Agent,
the Issuing Bank and all Lenders (including all fees and expenses of counsel to
the Collateral Agent, the Administrative Agent, the Issuing Bank and any Lender
(including the Swingline Lender) incurred pursuant to this Agreement or any
other Loan Document), whether direct or indirect, absolute or contingent,
liquidated or unliquidated, now existing or hereafter arising hereunder or
thereunder, and all Hedging Obligations owed to the Collateral Agent, the
Administrative Agent, any Lender or any of their Affiliates incurred in order
to limit interest rate or fee fluctuation with respect to the Loans and Letters
of Credit, and all obligations and liabilities incurred in connection with
collecting and enforcing the foregoing, together with all renewals, extensions,
modifications or refinancings thereof.

          “Off-Balance Sheet Liabilities”of any Person shall mean (i) any
repurchase obligation or liability of such Person with respect to accounts or
notes receivable sold by such Person, (ii) any liability of such Person under
any sale and leaseback transactions that do not create a liability on the
balance sheet of such Person, (iii) any Synthetic Lease Obligation or (iv) any
obligation arising with respect to any other transaction which is the
functional equivalent of or takes the place of borrowing but which does not
constitute a liability on the balance sheet of such Person.

          “OSHA” shall mean the Occupational Safety and Health Act of 1970, as
amended from time to time, and any successor statute.

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

          “Parent” shall mean CheckFree Corporation, a Delaware corporation.

          “Participant” shall have the meaning set forth in Section 10.4(d).

          “Patent” shall have the meaning assigned to such term in the Security
Agreement.

          “Payment Office” shall mean the office of the Administrative Agent located
at 303 Peachtree Street, N.E., Atlanta, Georgia 30308, or such other location
as to which the Administrative Agent shall have given written notice to the
Parent and the other Lenders.

16

 

          “PBGC” shall mean the Pension Benefit Guaranty Corporation referred to and
defined in ERISA, and any successor entity performing similar functions.

          “Perfection Certificate” shall have the meaning assigned to such term in
the Security Agreement.

          “Permitted Acquisitions” shall mean the acquisition by any Borrower or any
Subsidiary thereof of all or substantially all of the business or a line of
business (whether by the acquisition of Capital Stock, assets or a combination
thereof) of any other Person; provided, that (i) such business or line of
business is in the same, a substantially related or a complimentary line of
business as the business of the Borrowers and their Subsidiaries, taken as a
whole, conducted on the Closing Date, (ii) such acquisition is made with the
approval of the board of directors of the Person to be acquired, (iii) both
before and immediately after giving pro forma effect to any such acquisition
(A) no Default or Event of Default shall have occurred and be continuing and
(B) all representations and warranties contained herein and in the other Loan
Documents would be true and correct in all material respects, (iv) immediately
after giving pro forma effect to such acquisition as though the acquisition had
closed on the first day of the most recently ended four consecutive Fiscal
Quarter period for which financial statements have been delivered pursuant to
Section 5.1, the Borrowers would be in compliance with the financial covenants
contained in Article VI as of the most recent Fiscal Quarter in respect of
which the Parent is required to have delivered a Compliance Certificate
pursuant to Section 5.1(c); (v) the total cash consideration paid in connection
with all such acquisitions during the most recently ended four consecutive
Fiscal Quarter period for which financial statements have been delivered
pursuant to Section 5.1 shall not exceed 50% of Consolidated EBITDA for such
four Fiscal Quarter period (excluding for purposes of this calculation the
Person, assets or line of business being acquired), and (vi) the total
consideration paid in connection with all such acquisitions during the most
recently ended four consecutive Fiscal Quarter period for which financial
statements have been delivered pursuant to Section 5.1 shall not exceed 75% of
Consolidated EBITDA for such four Fiscal Quarter period (excluding for purposes
of this calculation the Person, assets or line of business being acquired).

          “Permitted Encumbrances” shall mean:

      (i) Liens imposed by law for taxes not yet due or which are being
contested in good faith by appropriate proceedings and with respect to
which adequate reserves are being maintained in accordance with GAAP;

      (ii) statutory Liens of landlords, carriers, warehousemen,
mechanics, materialmen and similar Liens arising by operation of law in
the ordinary course of business for amounts not yet due or which are
being contested in good faith by
appropriate proceedings and with respect to which adequate reserves
are being maintained in accordance with GAAP;

      (iii) pledges and deposits made in the ordinary course of business
in compliance with workers’ compensation, unemployment insurance and
other social security laws or regulations;

17

 

      (iv) deposits or pledges to secure the performance of bids, trade
contracts, leases, statutory obligations, surety and appeal bonds,
performance bonds and other obligations of a like nature, in each case in
the ordinary course of business;

      (v) judgment and attachment liens not giving rise to an Event of
Default or Liens created by or existing from any litigation or legal
proceeding that are currently being contested in good faith by
appropriate proceedings and with respect to which adequate reserves are
being maintained in accordance with GAAP; and

      (vi) easements, zoning restrictions, rights-of-way and similar
encumbrances on real property imposed by law or arising in the ordinary
course of business that do not secure any monetary obligations and do not
materially detract from the value of the affected property or materially
interfere with the ordinary conduct of business of the Parent and its
Subsidiaries taken as a whole;

provided, that the term “Permitted Encumbrances” shall not include any
Lien securing Indebtedness.

          “Permitted Investments” shall mean:

      (i) direct obligations of, or obligations the principal of and
interest on which are unconditionally guaranteed by, the United States
(or by any agency thereof to the extent such obligations are backed by
the full faith and credit of the United States), in each case maturing
within one year from the date of acquisition thereof;

      (ii) commercial paper having the highest rating, at the time of
acquisition thereof, of S&P or Moody’s and in either case maturing within
six months from the date of acquisition thereof;

      (iii) certificates of deposit, bankers’ acceptances and time
deposits maturing within 180 days of the date of acquisition thereof
issued or guaranteed by or placed with, and money market deposit accounts
issued or offered by, any domestic office of any commercial bank
organized under the laws of the United States or any state thereof which
has a combined capital and surplus and undivided profits of not less than
$500,000,000;

      (iv) fully collateralized repurchase agreements with a term of not
more than 30 days for securities described in clause (i) above and
entered into with a financial institution satisfying the criteria
described in clause (iii) above;

      (v) mutual funds investing solely in any one or more of the
Permitted Investments described in clauses (i) through (iv) above; and

      (vi) any Investments made pursuant to the Investment policy for
Subscriber Funds, as adopted on January 31, 2002.

          “Person” shall mean any individual, partnership, firm, corporation,
association, joint venture, limited liability company, trust or other entity,
or any Governmental Authority.

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          “Plan” shall mean any employee pension benefit plan (other than a
Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section
412 of the Code or Section 302 of ERISA, and in respect of which the Parent or
any ERISA Affiliate is (or, if such plan were terminated, would under Section
4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5) of
ERISA.

          “Pro Rata Share” shall mean, with respect to the Revolving Commitment of
any Lender at any time, a percentage, the numerator of which shall be such
Lender’s Revolving Commitment (or if such Revolving Commitment has been
terminated or expired or the Loans have been declared to be due and payable,
such Lender’s Revolving Credit Exposure), and the denominator of which shall be
the sum of the Revolving Commitments of all Lenders (or if such Revolving
Commitments have been terminated or expired or the Loans have been declared to
be due and payable, all Revolving Credit Exposure of all Lenders).

          “Regulation D” shall mean Regulation D of the Board of Governors of the
Federal Reserve System, as the same may be in effect from time to time, and any
successor regulations.

          “Related Parties” shall mean, with respect to any specified Person, such
Person’s Affiliates and the respective directors, officers, employees, agents
and advisors of such Person and such Person’s Affiliates.

          “Release” shall mean any release, spill, emission, leaking, dumping,
injection, pouring, deposit, disposal, discharge, dispersal, leaching or
migration into the environment (including ambient air, surface water,
groundwater, land surface or subsurface strata) or within any building,
structure, facility or fixture.

          “Required Lenders” shall mean, at any time, Lenders holding more than 50%

of the aggregate outstanding Revolving Commitments at such time or if the
Lenders have no Revolving Commitments, then Lenders holding more than 50% of
the Revolving Credit Exposure.

          “Requirement of Law” for any Person shall mean the articles or certificate
of incorporation, bylaws, partnership certificate and agreement, or limited
liability company certificate of organization and agreement, as the case may
be, and other organizational and governing documents of such Person, and any
law, treaty, rule or regulation, or determination of a Governmental Authority,
in each case applicable to or binding upon such Person or any of its property
or to which such Person or any of its property is subject.

          “Responsible Officer” shall mean any of the president, the chief executive
officer, the chief operating officer, the chief financial officer, the
treasurer or a vice president of any Borrower or such other representative of
any Borrower as may be designated in writing by any
one of the foregoing; and, with respect to the financial covenants only,
the chief financial officer or the treasurer of the Parent.

          “Restricted Payment” shall have the meaning set forth in Section 7.5.

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          “Revolving Commitment” shall mean, with respect to each Lender, the
obligation of such Lender to make Revolving Loans to the Borrowers and to
participate in Letters of Credit and Swingline Loans in an aggregate principal
amount not exceeding the amount set forth with respect to such Lender on Annex
I, as such annex may be amended pursuant to Section 2.21, or in the case of a
Person becoming a Lender after the Closing Date through an assignment of an
existing Revolving Commitment, the amount of the assigned “Revolving
Commitment” as provided in the Assignment and Acceptance executed by such
Person as an assignee, as the same may be increased or deceased pursuant to
terms hereof.

          “Revolving Credit Exposure” shall mean, with respect to any Lender at any
time, the sum of the outstanding principal amount of such Lender’s Revolving
Loans, LC Exposure and Swingline Exposure.

          “Revolving Credit Note” shall mean a promissory note of the Borrowers
payable to the order of a requesting Lender in the principal amount of such
Lender’s Revolving Commitment, in substantially the form of Exhibit A.

          “Revolving Loan” shall mean a loan made by a Lender (other than the
Swingline Lender) to any Borrower under its Revolving Commitment, which may
either be a Base Rate Loan or a Eurodollar Loan.

          “S&P” shall mean Standard & Poor’s.

          “Secured Parties” shall mean the Collateral Agent, the Administrative
Agent, the Lenders, holders of Hedging Obligations that are Lenders or
Affiliates of Lenders at the time such Hedging Obligations are executed, and
the ACH Providers.

          “Security Agreement” shall mean that certain Amended and Restated Security
Agreement, dated as of the date hereof, executed by Services in favor of the
Collateral Agent.

          “Security Documents” shall mean, collectively, the Security Agreement, the
Intellectual Property Security Agreement, the Perfection Certificate, and all
other instruments and agreements now or hereafter securing the whole or any
part of the Obligations or any Guarantee thereof, all UCC financing statements,
fixture financing statements, and all other documents, instruments, agreements
and certificates executed and delivered by any Loan Party to the Collateral
Agent and the other Secured Parties in connection with the foregoing.

          “Software Division” shall mean the division of Services’ business which
provides software, and the maintenance, support and professional services
related thereto, to large financial service providers and other companies,
excluding any software or services related to or used in connection with the
Business or the Electronic Commerce Services Division.

          “SPV” shall mean Bastogne or any other special purpose bankruptcy remote
Subsidiary formed after the Closing Date.

          “Subscribers” shall mean the individual consumers and businesses that have
contracted with Services, or a financial institution, Merchant or other service
provider which has contracted with Services, for the bill payment services of
Services.

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          “Subsidiary” shall mean, with respect to any Person (the “parent”), any
corporation, partnership, joint venture, limited liability company, association
or other entity the accounts of which would be consolidated with those of the
parent in the parent’s consolidated financial statements if such financial
statements were prepared in accordance with GAAP as of such date, as well as
any other corporation, partnership, joint venture, limited liability company,
association or other entity (i) of which securities or other ownership
interests representing more than 50% of the equity or more than 50% of the
ordinary voting power, or in the case of a partnership, more than 50% of the
general partnership interests are, as of such date, owned, controlled or held,
or (ii) that is, as of such date, otherwise controlled, by the parent or one or
more subsidiaries of the parent or by the parent and one or more subsidiaries
of the parent. Unless otherwise indicated, all references to “Subsidiary”
hereunder shall mean a Subsidiary of the Parent.

          “Subsidiary Guaranty Agreement” shall mean the Subsidiary Guaranty
Agreement, dated as of the date hereof and substantially in the form of Exhibit
D, made by certain Subsidiaries of the Parent in favor of the Collateral Agent
for the benefit of the Secured Parties.

          “Subsidiary Guaranty Supplement” shall mean each supplement substantially
in the form of Annex I to the Subsidiary Guaranty Agreement executed and
delivered by a Subsidiary of the Parent pursuant to Section 5.10.

          “Subsidiary Loan Party” shall mean any Subsidiary that executes or becomes
a party to the Subsidiary Guaranty Agreement.

          “Swingline Commitment” shall mean the commitment of the Swingline Lender
to make Swingline Loans in an aggregate principal amount at any time
outstanding not to exceed $10,000,000.

          “Swingline Exposure” shall mean, with respect to each Lender, the
principal amount of the Swingline Loans in which such Lender is legally
obligated either to make a Base Rate Loan or to purchase a participation in
accordance with Section 2.4, which shall equal such Lender’s Pro Rata Share of
all outstanding Swingline Loans.

          “Swingline Lender” shall mean SunTrust Bank, or any other Lender that may
agree to make Swingline Loans hereunder.

          “Swingline Loan” shall mean a loan made to any Borrower by the Swingline
Lender under the Swingline Commitment.

          “Swingline Note” shall mean the promissory note of the Borrowers payable
to the order of the Swingline Lender in the principal amount of the Swingline
Commitment, substantially the form of Exhibit B.

          “Swingline Rate” shall mean, for any Interest Period, the rate as offered
by the Administrative Agent and accepted by the Parent. The Parent is under no
obligation to accept this rate and the Administrative Agent is under no
obligation to provide it.

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          “Synthetic Lease” shall mean a lease transaction under which the parties
intend that (i) the lease will be treated as an “operating lease” by the lessee
pursuant to Statement of Financial Accounting Standards No. 13, as amended and
(ii) the lessee will be entitled to various tax and other benefits ordinarily
available to owners (as opposed to lessees) of like property.

          “Synthetic Lease Obligations” shall mean, with respect to any Person, the
sum of (i) all remaining rental obligations of such Person as lessee under
Synthetic Leases which are attributable to principal and, without duplication,
(ii) all rental and purchase price payment obligations of such Person under
such Synthetic Leases assuming such Person exercises the option to purchase the
lease property at the end of the lease term.

          “Taxes” shall mean any and all present or future taxes, levies, imposts,
duties, deductions, charges or withholdings imposed by any Governmental
Authority.

          “Termination
Date” shall mean the earliest of (i) August 20, 2007, (ii)
the date on which the Revolving Commitments are terminated pursuant to Section
2.7 and (iii) the date on which all amounts outstanding under this Agreement
have been declared or have automatically become due and payable (whether by
acceleration or otherwise).

          “Trademark” shall have the meaning assigned to such term in the Security
Agreement.

          “Type”, when used in reference to a Loan or Borrowing, refers to whether
the rate of interest on such Loan, or on the Loans comprising such Borrowing,
is determined by reference to the Adjusted LIBO Rate or the Base Rate.

          “Uniform Commercial Code” or “UCC” shall mean the Uniform Commercial Code
as in effect from time to time in the State of Georgia.

          “Withdrawal Liability” shall mean liability to a Multiemployer Plan as a
result of a complete or partial withdrawal from such Multiemployer Plan, as
such terms are defined in Part I of Subtitle E of Title IV of ERISA.

          Section 1.2. Classifications of Loans and Borrowings. For purposes of
this Agreement, Loans may be classified and referred to by Class (e.g. a
“Revolving Loan” or “Swingline Loan”) or by Type (e.g. a “Eurodollar Loan” or
“Base Rate Loan”) or by Class and Type (e.g. “Revolving Eurodollar Loan”).
Borrowings also may be classified and referred to by Class (e.g. “Revolving
Borrowing”) or by Type (e.g. “Eurodollar Borrowing”) or by Class and Type
(e.g. “ Revolving Eurodollar Borrowing”).

          Section 1.3. Accounting Terms and Determination. Unless otherwise defined
or specified herein, all accounting terms used herein shall be interpreted, all
accounting determinations hereunder shall be made, and all financial statements
required to be delivered hereunder shall be prepared, in accordance with GAAP
as in effect from time to time, applied on a basis consistent with the most
recent audited consolidated financial statement of the Parent delivered
pursuant to Section 5.1(a); provided, that if the Parent notifies the
Administrative Agent that the Borrowers wish to amend any covenant in Article
VI to eliminate the effect of any

22

 

change in GAAP on the operation of such
covenant (or if the Administrative Agent notifies the Parent that the Required
Lenders wish to amend Article VI for such purpose), then the Borrowers’
compliance with such covenant shall be determined on the basis of GAAP in
effect immediately before the relevant change in GAAP became effective, until
either such notice is withdrawn or such covenant is amended in a manner
satisfactory to the Parent and the Required Lenders.

          Section 1.4. Terms Generally. The definitions of terms herein shall apply
equally to the singular and plural forms of the terms defined. Whenever the
context may require, any pronoun shall include the corresponding masculine,
feminine and neuter forms. The words “include”, “includes” and “including”
shall be deemed to be followed by the phrase “without limitation”. The word
“will” shall be construed to have the same meaning and effect as the word
“shall”. In the computation of periods of time from a specified date to a
later specified date, the word “from” means “from and including” and the word
“to” means “to but excluding”. Unless the context requires otherwise (i) any
definition of or reference to any agreement, instrument or other document
herein shall be construed as referring to such agreement, instrument or other
document as it was originally executed or as it may from time to time be
amended, restated, supplemented or otherwise modified (subject to any
restrictions on such amendments, supplements or modifications set forth
herein), (ii) any reference herein to any Person shall be construed to include
such Person’s successors and permitted assigns, (iii) the words “hereof”,
“herein” and “hereunder” and words of similar import shall be construed to
refer to this Agreement as a whole and not to any particular provision hereof,
(iv) all references to Articles, Sections, Exhibits and Schedules shall be
construed to refer to Articles, Sections, Exhibits and Schedules to this
Agreement and (v) all references to a specific time shall be construed to refer
to the time in the city and state of the Administrative Agent’s principal
office, unless otherwise indicated.

ARTICLE II

AMOUNT AND TERMS OF THE COMMITMENTS

          Section 2.1. General Description of Facilities. Subject to and upon the
terms and conditions herein set forth, (i) the Lenders hereby establish in
favor of the Borrowers a revolving credit facility pursuant to which each
Lender severally agrees (to the extent of such Lender’s Revolving Commitment)
to
make Revolving Loans to the Borrowers in accordance with Section 2.2, and
(ii) the Issuing Bank agrees to issue Letters of Credit in accordance with
Section 2.21, (iii) the Swingline Lender agrees to make Swingline Loans in
accordance with Section 2.4, and (iv) each Lender agrees to purchase a
participation interest in the Letters of Credit and the Swingline Loans
pursuant to the terms and conditions hereof; provided, that in no event shall
the aggregate principal amount of all outstanding Revolving Loans, Swingline
Loans and outstanding LC Exposure exceed at any time the Aggregate Revolving
Commitment Amount from time to time in effect.

          Section 2.2. Revolving Loans. Subject to the terms and conditions set
forth herein, each Lender severally agrees to make Revolving Loans to the
Borrowers, from time to time during the Availability Period, in an aggregate
principal amount outstanding at any time that will not result in (a) such
Lender’s Revolving Credit Exposure exceeding such Lender’s

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Revolving Commitment
or (b) the aggregate Revolving Credit Exposures of all Lenders exceeding the
Aggregate Revolving Commitment Amount. During the Availability Period, the
Borrowers shall be entitled to borrow, prepay and reborrow Revolving Loans in
accordance with the terms and conditions of this Agreement; provided, that the
Borrowers may not borrow or reborrow should there exist a Default or Event of
Default.

          Section 2.3. Procedure for Revolving Borrowings. The Parent shall give
the Administrative Agent written notice (or telephonic notice promptly
confirmed in writing) of each Revolving Borrowing substantially in the form of
Exhibit 2.3 (a “Notice of Revolving Borrowing”) (x) prior to 11:00 a.m.
(Atlanta, Georgia time) one (1) Business Day prior to the requested date of
each Base Rate Borrowing and (y) prior to 11:00 a.m. (Atlanta, Georgia time)
three (3) Business Days prior to the requested date of each Eurodollar
Borrowing. Each Notice of Revolving Borrowing shall be irrevocable and shall
specify: (i) the applicable Borrower (which shall be deemed to be the Parent if
no specification is made), (ii) the aggregate principal amount of such
Borrowing, (iii) the date of such Borrowing (which shall be a Business Day),
(iv) the Type of such Revolving Loan comprising such Borrowing, and (v) in the
case of a Eurodollar Borrowing, the duration of the initial Interest Period
applicable thereto (subject to the provisions of the definition of Interest
Period). Each Revolving Borrowing shall consist entirely of Base Rate Loans or
Eurodollar Loans, as the Parent may request. The aggregate principal amount of
each Eurodollar Borrowing shall be not less than $5,000,000 or a larger
multiple of $1,000,000, and the aggregate principal amount of each Base Rate
Borrowing shall not be less than $1,000,000 or a larger multiple of $100,000;
provided, that Base Rate Loans made pursuant to Section 2.4 or Section 2.21(c)
may be made in lesser amounts as provided therein. At no time shall the total
number of Eurodollar Borrowings outstanding at any time exceed six. Promptly
following the receipt of a Notice of Revolving Borrowing in accordance
herewith, the Administrative Agent shall advise each Lender of the details
thereof and the amount of such Lender’s Revolving Loan to be made as part of
the requested Revolving Borrowing.

          Section 2.4. Swingline Commitment.

          (a) Subject to the terms and conditions set forth herein, the Swingline
Lender agrees to make Swingline Loans to each Borrower, from time to time
during the Availability
Period, in an aggregate principal amount outstanding at any time not to
exceed the lesser of (i) the Swingline Commitment then in effect and (ii) the
difference between (x) the Aggregate Revolving Commitment Amount and (y) the
aggregate Revolving Credit Exposures of all Lenders; provided, that the
Swingline Lender shall not be required to make a Swingline Loan to refinance an
outstanding Swingline Loan. The Borrowers shall be entitled to borrow, repay
and reborrow Swingline Loans in accordance with the terms and conditions of
this Agreement.

          (b) (i) The Parent shall give the Administrative Agent written notice (or
telephonic notice promptly confirmed in writing) of each Swingline Borrowing
substantially in the form of Exhibit 2.4 (a “Notice of Swingline Borrowing”)
prior to 10:00 a.m. (Atlanta, Georgia time) on the requested date of each
Swingline Borrowing. Each Notice of Swingline Borrowing shall be irrevocable
and shall specify: (i) the applicable Borrower (which shall be deemed to be the
Parent if no specification is made), (ii) the principal amount of such
Swingline Loan, (iii) the date of such Swingline Loan (which shall be a
Business Day) and (iv) the account of the applicable Borrower to which the
proceeds of such Swingline Loan should be credited.

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The Administrative Agent
will promptly advise the Swingline Lender of each Notice of Swingline
Borrowing. Each Swingline Loan shall accrue interest at the Base Rate or any
other interest rate as agreed between the Parent and the Swingline Lender and
shall have an Interest Period (subject to the definition thereof) as agreed
between the Parent and the Swingline Lender. The aggregate principal amount of
each Swingline Loan shall be not less than $100,000 or a larger multiple of
$50,000, or such other minimum amounts agreed to by the Swingline Lender and
the Parent. The Swingline Lender will make the proceeds of each Swingline Loan
available to the applicable Borrower in Dollars in immediately available funds
at the account specified by the Parent in the applicable Notice of Swingline
Borrowing not later than 1:00 p.m. (Atlanta, Georgia time) on the requested
date of such Swingline Loan.

          (c) The Swingline Lender, at any time and from time to time in its sole
discretion, may, on behalf of the Borrowers (which hereby irrevocably
authorizes and directs the Swingline Lender to act on their behalf), give a
Notice of Revolving Borrowing to the Administrative Agent requesting the
Lenders (including the Swingline Lender) to make Base Rate Loans in an amount
equal to the unpaid principal amount of any Swingline Loan. Each Lender will
make the proceeds of its Base Rate Loan included in such Borrowing available to
the Administrative Agent for the account of the Swingline Lender in accordance
with Section 2.5, which will be used solely for the repayment of such Swingline
Loan.

          (d) If for any reason a Base Rate Borrowing may not be (as determined in
the sole discretion of the Administrative Agent), or is not, made in accordance
with the foregoing provisions, then each Lender (other than the Swingline
Lender) shall purchase an undivided participating interest in such Swingline
Loan in an amount equal to its Pro Rata Share thereof on the date that such
Base Rate Borrowing should have occurred. On the date of such required
purchase, each Lender shall promptly transfer, in immediately available funds,
the amount of its participating interest to the Administrative Agent for the
account of the Swingline Lender. If such Swingline Loan bears interest at a
rate other than the Base Rate, such Swingline Loan shall automatically become a
Base Rate Loan on the effective date of any such participation and interest
shall become payable on demand.

          (e) Each Lender’s obligation to make a Base Rate Loan pursuant to Section
2.4(c) or to purchase the participating interests pursuant to Section 2.4(d)
shall be absolute and unconditional and shall not be affected by any
circumstance, including without limitation (i) any setoff, counterclaim,
recoupment, defense or other right that such Lender or any other Person may
have or claim against the Swingline Lender, any Borrower or any other Person
for any reason whatsoever, (ii) the existence of a Default or an Event of
Default or the termination of any Lender’s Revolving Commitment, (iii) the
existence (or alleged existence) of any event or condition which has had or
could reasonably be expected to have a Material Adverse Effect, (iv) any breach
of this Agreement or any other Loan Document by any Borrower, the
Administrative Agent or any Lender or (v) any other circumstance, happening or
event whatsoever, whether or not similar to any of the foregoing. If such
amount is not in fact made available to the Swingline Lender by any Lender, the
Swingline Lender shall be entitled to recover such amount on demand from such
Lender, together with accrued interest thereon for each day from the date of
demand thereof (i) at the Federal Funds Rate until the second Business Day
after such demand and (ii) at the Base Rate at all times thereafter. Until such
time as such Lender makes its required payment, the Swingline Lender shall be
deemed to continue to have outstanding Swingline Loans in the

25

 

amount of the
unpaid participation for all purposes of the Loan Documents. In addition, such
Lender shall be deemed to have assigned any and all payments made of principal
and interest on its Loans and any other amounts due to it hereunder, to the
Swingline Lender to fund the amount of such Lender’s participation interest in
such Swingline Loans that such Lender failed to fund pursuant to this Section,
until such amount has been purchased in full.

          Section 2.5. Funding of Borrowings.

          (a) Each Lender will make available each Loan to be made by it hereunder
on the proposed date thereof by wire transfer in immediately available funds by
11:00 a.m. (Atlanta, Georgia time) to the Administrative Agent at the Payment
Office; provided, that the Swingline Loans will be made as set forth in Section
2.4. The Administrative Agent will make such Loans available to the applicable
Borrower by promptly crediting the amounts that it receives, in like funds by
the close of business on such proposed date, to an account maintained by the
applicable Borrower with the Administrative Agent or at such Borrower’s option,
by effecting a wire transfer of such amounts to an account designated by the
Parent to the Administrative Agent.

          (b) Unless the Administrative Agent shall have been notified by any Lender
prior to 5 p.m. (Atlanta, Georgia time) one (1) Business Day prior to the date
of a Borrowing in which such Lender is to participate that such Lender will not
make available to the Administrative Agent such Lender’s share of such
Borrowing, the Administrative Agent may assume that such Lender has made such
amount available to the Administrative Agent on such date, and the
Administrative Agent, in reliance on such assumption, may make available to the
applicable Borrower on such date a corresponding amount. If such corresponding
amount is not in fact made available to the Administrative Agent by such Lender
on the date of such Borrowing, the Administrative Agent shall be entitled to
recover such corresponding amount on demand from such Lender together with
interest at the Federal Funds Rate until the second Business Day after such
demand and thereafter at the Base Rate. If such Lender does not pay such
corresponding amount forthwith upon the Administrative Agent’s demand therefor,
the Administrative Agent shall promptly notify the Parent, and the Borrowers
shall immediately pay
such corresponding amount to the Administrative Agent together with
interest at the rate specified for such Borrowing. Nothing in this subsection
shall be deemed to relieve any Lender from its obligation to fund its Pro Rata
Share of any Borrowing hereunder or to prejudice any rights which any Borrower
may have against any Lender as a result of any default by such Lender
hereunder.

          (c) All Revolving Borrowings shall be made by the Lenders on the basis of
their respective Pro Rata Shares. No Lender shall be responsible for any
default by any other Lender in its obligations hereunder, and each Lender shall
be obligated to make its Loans provided to be made by it hereunder, regardless
of the failure of any other Lender to make its Loans hereunder.

          Section 2.6. Interest Elections.

          (a) Each Borrowing initially shall be of the Type specified in the
applicable Notice of Borrowing, and in the case of a Eurodollar Borrowing,
shall have an initial Interest Period as specified in such Notice of Borrowing.
Thereafter, the Parent may elect to convert such

26

 

Borrowing into a different
Type or to continue such Borrowing, and in the case of a Eurodollar Borrowing,
may elect Interest Periods therefor, all as provided in this Section. The
Parent may elect different options with respect to different portions of the
affected Borrowing, in which case each such portion shall be allocated ratably
among the Lenders holding Loans comprising such Borrowing, and the Loans
comprising each such portion shall be considered a separate Borrowing. This
Section shall NOT apply Swingline Borrowings, which may not be converted or
continued.

          (b) To make an election pursuant to this Section, the Parent shall give
the Administrative Agent prior written notice (or telephonic notice promptly
confirmed in writing) of each Borrowing substantially in the form of Exhibit
2.6 (a “Notice of Conversion/Continuation”) that is to be converted or
continued, as the case may be, (x) prior to 11:00 a.m. (Atlanta, Georgia time)
one (1) Business Day prior to the requested date of a conversion into a Base
Rate Borrowing and (y) prior to 11:00 a.m. (Atlanta, Georgia time) three (3)
Business Days prior to a continuation of or conversion into a Eurodollar
Borrowing. Each such Notice of Conversion/Continuation shall be irrevocable and
shall specify (i) the Borrowing to which such Notice of Continuation/Conversion
applies and if different options are being elected with respect to different
portions thereof, the portions thereof that are to be allocated to each
resulting Borrowing (in which case the information to be specified pursuant to
clauses (iii) and (iv) shall be specified for each resulting Borrowing); (ii)
the effective date of the election made pursuant to such Notice of
Continuation/Conversion, which shall be a Business Day, (iii) whether the
resulting Borrowing is to be a Base Rate Borrowing or a Eurodollar Borrowing;
and (iv) if the resulting Borrowing is to be a Eurodollar Borrowing, the
Interest Period applicable thereto after giving effect to such election, which
shall be a period contemplated by the definition of “Interest Period”. If any
such Notice of Continuation/Conversion requests a Eurodollar Borrowing but does
not specify an Interest Period, the Parent shall be deemed to have selected an
Interest Period of one month. The principal amount of any resulting Borrowing
shall satisfy the minimum borrowing amount for Eurodollar Borrowings and Base
Rate Borrowings set forth in Section 2.3.

          (c) If, on the expiration of any Interest Period in respect of any
Eurodollar Borrowing, the Parent shall have failed to deliver a Notice of
Conversion/Continuation, then, unless such Borrowing is repaid as provided
herein, the Parent shall be deemed to have elected to convert such Borrowing
to a Base Rate Borrowing. No Borrowing may be converted into, or continued as,
a Eurodollar Borrowing if a Default or an Event of Default exists, unless the
Administrative Agent and each of the Lenders shall have otherwise consented in
writing. No conversion of any Eurodollar Loans shall be permitted except on
the last day of the Interest Period in respect thereof.

          (d) Upon receipt of any Notice of Conversion/Continuation, the
Administrative Agent shall promptly notify each Lender of the details thereof
and of such Lender’s portion of each resulting Borrowing.

          Section 2.7. Optional Reduction and Termination of Commitments.

          (a) Unless previously terminated, all Commitments shall terminate on the
Termination Date.

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          (b) Upon at least three (3) Business Days’ prior written notice (or
telephonic notice promptly confirmed in writing) to the Administrative Agent
(which notice shall be irrevocable), the Borrowers may reduce the Aggregate
Revolving Commitment Amount in part or terminate the Aggregate Revolving
Commitments in whole; provided, that (i) any partial reduction shall apply to
reduce proportionately and permanently the Revolving Commitment of each Lender,
(ii) any partial reduction pursuant to this Section 2.7 shall be in an amount
of at least $5,000,000 and any larger multiple of $1,000,000, and (iii) no such
reduction shall be permitted which would reduce the Aggregate Revolving
Commitment Amount to an amount less than the outstanding Revolving Credit
Exposures of all Lenders. Any such reduction in the Aggregate Revolving
Commitment Amount below the sum of the principal amount of the Swingline
Commitment and the LC Commitment shall result in a proportionate reduction
(rounded to the next lowest integral multiple of $100,000) in the Swingline
Commitment and the LC Commitment.

          Section 2.8. Repayment of Loans.

          (a) The outstanding principal amount of all Revolving Loans shall be due
and payable (together with accrued and unpaid interest thereon) on the
Termination Date.

          (b) The principal amount of each Swingline Borrowing shall be due and
payable (together with accrued and unpaid interest thereon) on the earlier of
(i) the last day of the Interest Period applicable to such Borrowing and (ii)
the Termination Date.

          Section 2.9. Evidence of Indebtedness. (a) Each Lender shall maintain in
accordance with its usual practice appropriate records evidencing the
Indebtedness of each Borrower to such Lender resulting from each Loan made by
such Lender from time to time, including the applicable Borrower and the
amounts of principal and interest payable thereon and paid to such Lender from
time to time under this
Agreement. The Administrative Agent shall maintain appropriate records in
which shall be recorded (i) the Revolving Commitment of each Lender, (ii) the
amount of each Loan made hereunder by each Lender, the Class and Type thereof
and the Interest Period applicable thereto, (iii) the date of each continuation
thereof pursuant to Section 2.6, (iv) the date of each conversion of all or a
portion thereof to another Type pursuant to Section 2.6, (v) the date and
amount of any principal or interest due and payable or to become due and
payable from the applicable Borrower to each Lender hereunder in respect of
such Loans and (vi) both the date and amount of any sum received by the
Administrative Agent hereunder from any Borrower in respect of the Loans and
each Lender’s Pro Rata Share thereof. The entries made in such records shall be
prima facie evidence, absent manifest error, of the existence and amounts of
the obligations of the Borrowers therein recorded; provided, that the failure
or delay of any Lender or the Administrative Agent in maintaining or making
entries into any such record or any error therein shall not in any manner
affect the obligation of any Borrower to repay the Loans (both principal and
unpaid accrued interest) of such Lender in accordance with the terms of this
Agreement.

          (b) At the request of any Lender (including the Swingline Lender) at any
time, the Borrowers agree that they will execute and deliver to such Lender a
Revolving Credit Note and in the case of the Swingline Lender only, a Swingline
Note, payable to the order of such

28

 

Lender and such Lender agrees, upon receipt
of such new Note and request of the Borrower, such Lender will promptly cancel
and return any Note replaced by such new Note to the Parent.

          Section 2.10. Optional Prepayments. Each Borrower shall have the right at
any time and from time to time to prepay any Borrowing, in whole or in part,
without premium or penalty, by giving irrevocable written notice (or telephonic
notice promptly confirmed in writing) to the Administrative Agent no later than
(i) in the case of prepayment of any Eurodollar Borrowing, 12:00 noon (Atlanta,
Georgia time) not less than three (3) Business Days prior to any such
prepayment, (ii) in the case of any prepayment of any Base Rate Borrowing, not
less than one Business Day prior to the date of such prepayment, and (iii) in
the case of Swingline Borrowings, prior to 12:00 noon (Atlanta, Georgia time)
on the date of such prepayment. Each such notice shall be irrevocable and shall
specify the proposed date of such prepayment and the principal amount of each
Borrowing or portion thereof to be prepaid. Upon receipt of any such notice,
the Administrative Agent shall promptly notify each affected Lender of the
contents thereof and of such Lender’s Pro Rata Share of any such prepayment.
If such notice is given, the aggregate amount specified in such notice shall be
due and payable on the date designated in such notice, together with accrued
interest to such date on the amount so prepaid in accordance with Section
2.12(e); provided, that if a Eurodollar Borrowing is prepaid on a date other
than the last day of an Interest Period applicable thereto, the Borrowers
jointly and severally shall also pay all amounts required pursuant to Section
2.18. Each partial prepayment of any Revolving Loan shall be in a minimum
amount of $1,000,000 and integral multiples of $100,000; each partial
prepayment of any Swingline Loan shall have no minimum. Each prepayment of a
Borrowing shall be applied ratably to the Loans comprising such Borrowing.

          Section 2.11. Mandatory Prepayments. If at any time the Revolving Credit
Exposure of all Lenders exceeds the Aggregate Revolving Commitment Amount, as
reduced pursuant to Section 2.7 or otherwise, the Borrowers shall immediately,
jointly and severally, repay Swingline Loans and Revolving Loans in an
amount equal to such excess, together with all accrued and unpaid interest
on such excess amount and any amounts due under Section 2.18. Each prepayment
shall be applied first to the Swingline Loans to the full extent thereof,
second to the Base Rate Loans to the full extent thereof, and finally to
Eurodollar Loans to the full extent thereof. If after giving effect to
prepayment of all Swingline Loans and Revolving Loans, the Revolving Credit
Exposure of all Lenders exceeds the Aggregate Revolving Commitment Amount, the
Borrowers shall deposit in an account with the Administrative Agent, in the
name of the Administrative Agent and for the benefit of the Issuing Bank and
the Lenders, an amount in cash equal to such excess plus any accrued and unpaid
fees thereon to be held as collateral for the LC Exposure. Such account shall
be administered in accordance with Section 2.21(g) hereof.

          Section 2.12. Interest on Loans.

          (a) The Borrowers jointly and severally shall pay interest on each Base
Rate Loan at the Base Rate in effect from time to time and on each Eurodollar
Loan at the Adjusted LIBO Rate for the applicable Interest Period in effect for
such Loan, plus, in each case, the Applicable Margin in effect from time to
time.

          (b) The Borrowers jointly and severally shall pay interest on each
Swingline Loan at the Swingline Rate in effect from time to time.

29

 

          (c) While an Event of Default exists or after acceleration, at the option
of the Required Lenders, the Borrowers jointly and severally shall pay interest
(“Default Interest”) with respect to all Eurodollar Loans at the rate otherwise
applicable for the then-current Interest Period plus an additional 2% per annum
until the last day of such Interest Period, and thereafter, and with respect to
all Base Rate Loans (including all Swingline Loans) and all other Obligations
hereunder (other than Loans), at an all-in rate in effect for Base Rate Loans,
plus an additional 2% per annum.

          (d) Interest on the principal amount of all Loans shall accrue from and
including the date such Loans are made to but excluding the date of any
repayment thereof. Interest on all outstanding Base Rate Loans shall be payable
quarterly in arrears on the last day of each March, June, September and
December and on the Termination Date. Interest on all outstanding Eurodollar
Loans shall be payable on the last day of each Interest Period applicable
thereto, and, in the case of any Eurodollar Loans having an Interest Period in
excess of three months, on each day which occurs every three months after the
initial date of such Interest Period, and on the Termination Date. Interest on
each Swingline Loan shall be payable on the maturity date of such Loan, which
shall be the last day of the Interest Period applicable thereto, and on the
Termination Date. Interest on any Loan which is converted into a Loan of
another Type or which is repaid or prepaid shall be payable on the date of such
conversion or on the date of any such repayment or prepayment (on the amount
repaid or prepaid) thereof. All Default Interest shall be payable on demand.

          (e) The Administrative Agent shall determine each interest rate applicable
to the Loans hereunder and shall promptly notify the Parent and the Lenders of
such rate in writing (or by telephone, promptly confirmed in writing). Any
such determination shall be conclusive and binding for all purposes, absent
manifest error.

          Section 2.13. Fees.

          (a) The Borrowers jointly and severally shall pay to the Administrative
Agent for its own account fees in the amounts and at the times previously
agreed upon in writing by the Parent and the Administrative Agent.

          (b) The Borrowers jointly and severally agree to pay to the Administrative
Agent for the account of each Lender a commitment fee, which shall accrue at
the Applicable Percentage per annum (determined daily in accordance with
Schedule I) on the average daily amount of the unused Revolving Commitment of
such Lender during the Availability Period..

          (c) The Borrowers jointly and severally agree to pay (i) to the
Administrative Agent, for the account of each Lender, a letter of credit fee
with respect to its participation in each Letter of Credit, which shall accrue
at a rate per annum equal to the Applicable Margin for Eurodollar Loans then in
effect on the average daily amount of such Lender’s LC Exposure attributable to
such Letter of Credit during the period from and including the date of issuance
of such Letter of Credit to but excluding the date on which such Letter of
Credit expires or is drawn in full (including without limitation any LC
Exposure that remains outstanding after the Termination Date) and (ii) to the
Issuing Bank for its own account a fronting fee, which shall accrue at the rate
of 0.125% per annum on the average daily amount of the LC Exposure

30

 

(excluding
any portion thereof attributable to unreimbursed LC Disbursements) during the
Availability Period (or until the date that such Letter of Credit is
irrevocably cancelled, whichever is later), as well as the Issuing Bank’s
standard fees with respect to issuance, amendment, renewal or extension of any
Letter of Credit or processing of drawings thereunder. Notwithstanding the
foregoing, if the Required Lenders elect to increase the interest rate on the
Loans to the Default Interest pursuant to Section 2.12(c), the rate per annum
used to calculate the letter of credit fee pursuant to clause (i) above shall
automatically be increased by an additional 2% per annum.

          (d) Accrued fees under paragraphs (b) and (c) above shall be payable
quarterly in arrears on the last day of each March, June, September and
December, commencing on September 30, 2004 and on the Termination Date (and if
later, the date the Loans and LC Exposure shall be repaid in their entirety);
provided, further that any such fees accruing after the Termination Date shall
be payable on demand.

          Section 2.14. Computation of Interest and Fees. Interest hereunder based
on the Base Rate and the fees referred to in Section 2.13(b) and (c)(ii) shall
be computed on the basis of a year of 365 days (or 366 days in a leap year) and
paid for the actual number of days elapsed (including the first day but
excluding the last day). All other interest and the fees referred to in
Section 2.13(c)(i) shall be computed on the basis of a year of 360 days and
paid for the actual number of days elapsed (including the first day but
excluding the last day). Each determination by the Administrative Agent of an
interest amount or fee hereunder shall be made in good faith and, except for
manifest error, shall be final, conclusive and binding for all purposes.

          Section 2.15. Inability to Determine Interest Rates. If prior to the
commencement of any Interest Period for any Eurodollar Borrowing:

          (a) the Administrative Agent shall have determined (which determination
shall be conclusive and binding upon the Borrowers) that, by reason of
circumstances affecting the relevant interbank market, adequate means do not
exist for ascertaining LIBOR for such Interest Period, or

          (b) the Administrative Agent shall have received notice from the Required
Lenders that the Adjusted LIBO Rate does not adequately and fairly reflect the
cost to such Lenders (or Lender, as the case may be) of making, funding or
maintaining their (or its, as the case may be) Eurodollar Loans for such
Interest Period,

the Administrative Agent shall give written notice (or telephonic notice,
promptly confirmed in writing) to the Parent and to the Lenders as soon as
practicable thereafter. In the case of Eurodollar Loans, until the
Administrative Agent shall notify the Parent and the Lenders that the
circumstances giving rise to such notice no longer exist, (i) the obligations
of the Lenders to make Eurodollar Revolving Loans or to continue or convert
outstanding Loans as or into Eurodollar Loans shall be suspended and (ii) all
such affected Loans shall be converted into Base Rate Loans on the last day of
the then current Interest Period applicable thereto unless the Borrowers prepay
such Loans in accordance with this Agreement. Unless the Parent notifies the
Administrative Agent at least one Business Day before the date of any
Eurodollar Revolving

31

 

Borrowing for which a Notice of Revolving Borrowing has
previously been given that it elects not to borrow on such date, then such
Revolving Borrowing shall be made as a Base Rate Borrowing.

          Section 2.16. Illegality. If any Change in Law shall make it unlawful or
impossible for any Lender to make, maintain or fund any Eurodollar Loan and
such Lender shall so notify the Administrative Agent, the Administrative Agent
shall promptly give notice thereof to the Parent and the other Lenders,
whereupon until such Lender notifies the Administrative Agent and the Parent
that the circumstances giving rise to such suspension no longer exist, the
obligation of such Lender to make Eurodollar Revolving Loans, or to continue or
convert outstanding Loans as or into Eurodollar Loans, shall be suspended. In
the case of the making of a Eurodollar Revolving Borrowing, such Lender’s
Revolving Loan shall be made as a Base Rate Loan as part of the same Revolving
Borrowing for the same Interest Period and if the affected Eurodollar Loan is
then outstanding, such Loan shall
be converted to a Base Rate Loan either (i) on the last day of the then
current Interest Period applicable to such Eurodollar Loan if such Lender may
lawfully continue to maintain such Loan to such date or (ii) immediately if
such Lender shall determine that it may not lawfully continue to maintain such
Eurodollar Loan to such date. Notwithstanding the foregoing, the affected
Lender shall, prior to giving such notice to the Administrative Agent,
designate a different Applicable Lending Office if such designation would avoid
the need for giving such notice and if such designation would not otherwise be
disadvantageous to such Lender in the good faith exercise of its discretion.

          Section 2.17. Increased Costs.

          (a) If any Change in Law shall:

      (i) impose, modify or deem applicable any reserve, special deposit
or similar requirement that is not otherwise included in the
determination of the Adjusted LIBO Rate hereunder against assets of,
deposits with or for the account of, or credit extended by, any Lender
(except any such reserve requirement reflected in the Adjusted LIBO Rate)
or the Issuing Bank; or

      (ii) impose on any Lender or on the Issuing Bank or the eurodollar
interbank market any other condition affecting this Agreement or any
Eurodollar Loans made by such Lender or any Letter of Credit or any
participation therein;

and the result of either of the foregoing is to increase the cost to such
Lender of making, converting into, continuing or maintaining a Eurodollar Loan
or to increase the cost to such Lender or the Issuing Bank of participating in
or issuing any Letter of Credit or to reduce the amount received or receivable
by such Lender or the Issuing Bank hereunder (whether of principal, interest or
any other amount), then the Borrowers jointly and severally shall promptly pay,
upon written notice from and demand by such Lender on the Parent (with a copy
of such notice and demand to the Administrative Agent), to the Administrative
Agent for the account of such Lender, within five Business Days after the date
of such notice and demand, additional amount or amounts sufficient to
compensate such Lender or the Issuing Bank, as the case may be, for such
additional costs incurred or reduction suffered.

32

 

          (b) If any Lender or the Issuing Bank shall have determined that on or
after the date of this Agreement any Change in Law regarding capital
requirements has or would have the effect of reducing the rate of return on
such Lender’s or the Issuing Bank’s capital (or on the capital of such Lender’s
or the Issuing Bank’s parent corporation) as a consequence of its obligations
hereunder or under or in respect of any Letter of Credit to a level below that
which such Lender or the Issuing Bank or such Lender’s or the Issuing Bank’s
parent corporation could have achieved but for such Change in Law (taking into
consideration such Lender’s or the Issuing Bank’s policies or the policies of
such Lender’s or the Issuing Bank’s parent corporation with respect to capital
adequacy) then, the Borrowers jointly and severally shall pay to such Lender,
as specified below, such additional amounts as will compensate such Lender or
the Issuing Bank or such Lender’s or the Issuing Bank’s parent corporation for
any such reduction suffered.

          (c) A certificate of a Lender or the Issuing Bank setting forth the amount
or amounts necessary to compensate such Lender or the Issuing Bank or such
Lender’s or the Issuing Bank’s parent corporation, as the case may be,
specified in paragraph (a) or (b) of this Section shall be delivered to the
Parent (with a copy to the Administrative Agent) and shall be conclusive,
absent manifest error. The Borrowers jointly and severally shall pay any such
Lender or the Issuing Bank, as the case may be, such amount or amounts within
10 days after receipt thereof.

          (d) Failure or delay on the part of any Lender or the Issuing Bank to
demand compensation pursuant to this Section shall not constitute a waiver of
such Lender’s or the Issuing Bank’s right to demand such compensation;
provided, that the Borrower shall not be required to compensate a Lender or the
Issuing Bank under this Section for any increased costs or reductions incurred
more than 180 days prior to the date that such Lender or the Issuing Bank
notifies the Borrower of such increased costs or reductions and of such
Lender’s or the Issuing Bank’s intention to claim compensation therefor;
provided further, that if the Change in Law giving rise to such increased costs
or reductions is retroactive, then such 180-day period shall be extended to
include the period of such retroactive effect.

          Section 2.18. Funding Indemnity. In the event of (a) the payment of any
principal of a Eurodollar Loan other than on the last day of the Interest
Period applicable thereto (including as a result of an Event of Default), (b)
the conversion or continuation of a Eurodollar Loan other than on the last day
of the Interest Period applicable thereto or (c) the failure by any Borrower to
borrow, prepay, convert or continue any Eurodollar Loan on the date specified
in any applicable notice (regardless of whether such notice is withdrawn or
revoked), then, in any such event, the Borrowers shall jointly and severally
compensate each Lender, within ten (10) days after written demand from such
Lender to Parent, for any loss, cost or expense attributable to such event. In
the case of a Eurodollar Loan, such loss, cost or expense shall be deemed to
include an amount determined by such Lender to be the excess, if any, of (A)
the amount of interest that would have accrued on the principal amount of such
Eurodollar Loan if such event had not occurred at the Adjusted LIBO Rate
applicable to such Eurodollar Loan for the period from the date of such event
to the last day of the then current Interest Period therefor (or in the case of
a failure to borrow, convert or continue, for the period that would have been
the Interest Period for such Eurodollar Loan) over (B) the amount of interest
that would accrue on the principal amount of such Eurodollar Loan for the same
period if the Adjusted LIBO Rate were

33

 

set on the date such Eurodollar Loan was
prepaid or converted or the date on which the applicable Borrower failed to
borrow, convert or continue such Eurodollar Loan. A certificate as to any
additional amount payable under this Section 2.18 submitted to the Parent by
any Lender (with a copy to the Administrative Agent) shall be conclusive,
absent manifest error. Failure or delay on the part of any Lender or the
Issuing Bank to demand compensation pursuant to this Section shall not
constitute a waiver of such Lender’s or the Issuing Bank’s right to demand such
compensation; provided, that the Borrower shall not be required to compensate a
Lender or the Issuing Bank under this Section for any loss, cost or expense
incurred more than 180 days prior to the date that such Lender or the Issuing
Bank notifies the Borrower of such loss, cost or expense and of such Lender’s
or the Issuing Bank’s intention to claim compensation therefor.

          Section 2.19. Taxes.

          (a) Any and all payments by or on account of any obligation of any
Borrower hereunder shall be made free and clear of and without deduction for
any Indemnified Taxes or Other Taxes; provided, that if any Borrower shall be
required to deduct any Indemnified Taxes or Other Taxes from such payments,
then (i) the sum payable shall be increased as necessary so that after making
all required deductions (including deductions applicable to additional sums
payable under this Section) the Administrative Agent, any Lender or the Issuing
Bank (as the case may be) shall receive an amount equal to the sum it would
have received had no such deductions been made, (ii) the Borrowers shall make
such deductions and (iii) the Borrowers shall pay the full amount deducted to
the relevant Governmental Authority in accordance with applicable law.

          (b) In addition, the Borrowers jointly and severally shall pay any Other
Taxes to the relevant Governmental Authority in accordance with applicable law.

          (c) The Borrowers jointly and severally shall indemnify the Administrative
Agent, each Lender and the Issuing Bank, within ten (10) days after written
demand therefor, for the full amount of any Indemnified Taxes or Other Taxes
paid by the Administrative Agent, such Lender or the Issuing Bank, as the case
may be, on or with respect to any payment by or on account of any obligation of
any Borrower hereunder (including Indemnified Taxes or Other Taxes imposed or
asserted on or attributable to amounts payable under this Section) and any
penalties, interest and reasonable expenses arising therefrom or with respect
thereto, whether or not such Indemnified Taxes or Other Taxes were correctly or
legally imposed or asserted by the relevant Governmental Authority. A
certificate as to the amount of such payment or liability delivered to the
Parent by a Lender or the Issuing Bank, or by the Administrative Agent on its
own behalf or on behalf of a Lender or the Issuing Bank, shall be conclusive
absent manifest error.

          (d) As soon as practicable after any payment of Indemnified Taxes or Other
Taxes by any Borrower to a Governmental Authority, the Parent shall deliver to
the Administrative Agent the original or a certified copy of a receipt issued
by such Governmental Authority evidencing such payment, a copy of the return
reporting such payment or other evidence of such payment reasonably
satisfactory to the Administrative Agent.

34

 

          (e) Any Foreign Lender that is entitled to an exemption from or reduction
of withholding tax under the Code or any treaty to which the United States is a
party, with respect to payments under this Agreement shall deliver to the
Parent (with a copy to the Administrative Agent), at the time or times
prescribed by applicable law, such properly completed and executed
documentation prescribed by applicable law or reasonably requested by the
Parent as will permit such payments to be made without withholding or at a
reduced rate. Without limiting the generality of the foregoing, each Foreign

Lender agrees that it will deliver to the Administrative Agent and the Parent
(or in the case of a Participant, to the Lender from which the related
participation shall have been purchased), as appropriate, two (2) duly
completed copies of (i) Internal Revenue Service Form W-8 ECI, or any successor
form thereto, certifying that the payments received from the Borrowers
hereunder are effectively connected with such Foreign Lender’s conduct of a
trade or business in the United States; or (ii) Internal Revenue Service
Form W-8 BEN, or any successor form thereto, certifying that such Foreign
Lender is entitled to benefits under an income tax treaty to which the United
States is a party which reduces the rate of withholding tax on payments of
interest; or (iii) Internal Revenue Service Form W-8 BEN, or any successor form
prescribed by the Internal Revenue Service, together with a certificate (A)
establishing that the payment to the Foreign Lender qualifies as “portfolio
interest” exempt from U.S. withholding tax under Code section 871(h) or 881(c),
and (B) stating that (1) the Foreign Lender is not a bank for purposes of Code
section 881(c)(3)(A), or the obligation of the Borrowers hereunder is not, with
respect to such Foreign Lender, a loan agreement entered into in the ordinary
course of its trade or business, within the meaning of that section; (2) the
Foreign Lender is not a 10% shareholder of any Borrower within the meaning of
Code section 871(h)(3) or 881(c)(3)(B); and (3) the Foreign Lender is not a
controlled foreign corporation that is related to the Borrowers within the
meaning of Code section 881(c)(3)(C); or (iv) such other Internal Revenue
Service forms as may be applicable to the Foreign Lender, including Forms W-8
IMY or W-8 EXP. Each such Foreign Lender shall deliver to the Parent and the
Administrative Agent such forms on or before the date that it becomes a party
to this Agreement (or in the case of a Participant, on or before the date such
Participant purchases the related participation). In addition, each such
Foreign Lender shall deliver such forms promptly upon the obsolescence or
invalidity of any form previously delivered by such Foreign Lender. Each such
Foreign Lender shall promptly notify the Parent and the Administrative Agent at
any time that it determines that it is no longer in a position to provide any
previously delivered certificate to the Parent (or any other form of
certification adopted by the Internal Revenue Service for such purpose).

          (f) In the event that Administrative Agent or any Lender determines in its
sole discretion that it has obtained any refund of Taxes in respect of which an
additional payment amount described in subsection 2.7B(ii)(c) was paid,
Administrative Agent or such Lender thereupon shall repay to Borrower an amount
with respect to such refund equal to any net reduction in Taxes actually
obtained by Administrative Agent or such Lender as is attributable to such
refund, net of all out-of-pocket expenses of the Administrative Agent or such
Lender and without interest (other than interest paid by the relevant taxing
authority with respect to such refund); provided, however, that Borrower, upon
the request of Administrative Agent or such Lender, agrees to repay the amount
paid over to Borrower (plus any penalties, interest or other charges imposed by
the relevant taxing authority) to Administrative Agent or such Lender in the
event Administrative Agent or such Lender is required to repay such refund to
such taxing authority. Nothing in this paragraph shall require Administrative
Agent or any Lender to make

35

 

available to Borrower or any other Person any tax
returns or other information Administrative Agent or such Lender deems to be
confidential or proprietary.

          Section 2.20. Payments Generally; Pro Rata Treatment; Sharing of Set-offs.

          (a) Each Borrower shall make each payment required to be made by it
hereunder (whether of principal, interest, fees or reimbursement of LC
Disbursements, or of amounts payable under Sections 2.17, 2.18 and 2.19, or
otherwise) prior to 12:00 noon (Atlanta, Georgia time), on the date when due,
in immediately available funds, free and clear of any defenses, rights of
set-off, counterclaim or withholding or deduction of taxes. Any amounts
received after such time on any date may, in the discretion of the
Administrative Agent, be deemed to have been received on the next succeeding
Business Day for purposes of calculating
interest thereon. All such payments shall be made to the Administrative
Agent at the Payment Office, except payments to be made directly to the Issuing
Bank or Swingline Lender as expressly provided herein and except that payments
pursuant to Sections 2.17, 2.18 and 2.19 and 10.3 shall be made directly to the
Persons entitled thereto. The Administrative Agent shall distribute any such
payments received by it for the account of any other Person to the appropriate
recipient promptly following receipt thereof. If any payment hereunder shall
be due on a day that is not a Business Day, the date for payment shall be
extended to the next succeeding Business Day, and, in the case of any payment
accruing interest, interest thereon shall be made payable for the period of
such extension. All payments hereunder shall be made in Dollars.

          (b) If at any time insufficient funds are received by and available to the
Administrative Agent to pay fully all amounts of principal, unreimbursed LC
Disbursements, interest and fees then due hereunder, such funds shall be
applied (i) first, towards payment of interest and fees then due hereunder,
ratably among the parties entitled thereto in accordance with the amounts of
interest and fees then due to such parties, and (ii) second, towards payment of
principal and unreimbursed LC Disbursements then due hereunder, ratably among
the parties entitled thereto in accordance with the amounts of principal and
unreimbursed LC Disbursements then due to such parties.

          (c) If any Lender shall, by exercising any right of set-off or
counterclaim or otherwise, obtain payment in respect of any principal of or
interest on any of its Revolving Loans or participations in LC Disbursements or
Swingline Loans that would result in such Lender receiving payment of a greater
proportion of the aggregate amount of its Revolving Loans and participations in
LC Disbursements and Swingline Loans and accrued interest thereon than the
proportion received by any other Lender, then the Lender receiving such greater
proportion shall purchase (for cash at face value) participations in the
Revolving Loans and participations in LC Disbursements and Swingline Loans of
other Lenders to the extent necessary so that the benefit of all such payments
shall be shared by the Lenders ratably in accordance with the aggregate amount
of principal of and accrued interest on their respective Revolving Loans and
participations in LC Disbursements and Swingline Loans; provided, that (i) if
any such participations are purchased and all or any portion of the payment
giving rise thereto is recovered, such participations shall be rescinded and
the purchase price restored to the extent of such recovery, without interest,
and (ii) the provisions of this paragraph shall not be construed to apply to
any payment made by any Borrower pursuant to and in accordance with the express
terms of this Agreement or any payment obtained by a Lender as consideration
for the

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assignment of or sale of a participation in any of its Loans or
participations in LC Disbursements or Swingline Loans to any assignee or
participant, other than to any Borrower or any Subsidiary or Affiliate thereof
(as to which the provisions of this paragraph shall apply). Each Borrower
consents to the foregoing and agrees, to the extent it may effectively do so
under applicable law, that any Lender acquiring a participation pursuant to the
foregoing arrangements may exercise against any Borrower rights of set-off and
counterclaim with respect to such participation as fully as if such Lender were
a direct creditor of such Borrower in the amount of such participation.

          (d) Unless the Administrative Agent shall have received notice from the
Parent prior to the date on which any payment is due to the Administrative
Agent for the account of the Lenders or the Issuing Bank hereunder that the
Borrowers will not make such payment, the Administrative Agent may assume that
the Borrowers have made such payment on such date
in accordance herewith and may, in reliance upon such assumption,
distribute to the Lenders or the Issuing Bank, as the case may be, the amount
or amounts due. In such event, if the Borrowers have not in fact made such
payment, then each of the Lenders or the Issuing Bank, as the case may be,
severally agrees to repay to the Administrative Agent forthwith on demand the
amount so distributed to such Lender or Issuing Bank with interest thereon, for
each day from and including the date such amount is distributed to it to but
excluding the date of payment to the Administrative Agent, at the greater of
the Federal Funds Effective Rate and a rate determined by the Administrative
Agent in accordance with banking industry rules on interbank compensation.

          (e) If any Lender shall fail to make any payment required to be made by it
pursuant to Section 2.4(b), 2.5, 2.21(d) or 10.3(d), then the Administrative
Agent may, in its discretion (notwithstanding any contrary provision hereof),
apply any amounts thereafter received by the Administrative Agent for the
account of such Lender to satisfy such Lender’s obligations under such Sections
until all such unsatisfied obligations are fully paid.

          Section 2.21. Letters of Credit.

          (a) During the Availability Period, the Issuing Bank, in reliance upon the
agreements of the other Lenders pursuant to Section 2.21(d), agrees to issue,
at the request of the Parent, Letters of Credit for the account of any Borrower
on the terms and conditions hereinafter set forth; provided, that (i) each
Letter of Credit shall expire on the earlier of (A) the date one year after the
date of issuance of such Letter of Credit (or in the case of any renewal or
extension thereof, one year after such renewal or extension) and (B) the date
that is five (5) Business Days prior to the Termination Date; (ii) each Letter
of Credit shall be in a stated amount of at least $250,000; and (iii) any
Borrower may not request any Letter of Credit, if, after giving effect to such
issuance (A) the aggregate LC Exposure would exceed the LC Commitment or (B)
the aggregate Revolving Credit Exposure of all Lenders would exceed the
Aggregate Revolving Commitment Amount. Upon the issuance of each Letter of
Credit each Lender shall be deemed to, and hereby irrevocably and
unconditionally agrees to, purchase from the Issuing Bank without recourse a
participation in such Letter of Credit equal to such Lender’s Pro Rata Share of
the aggregate amount available to be drawn under such Letter of Credit. Each
issuance of a Letter of Credit shall be deemed to utilize the Revolving
Commitment of each Lender by an amount equal to the amount of such
participation.

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          (b) To request the issuance of a Letter of Credit (or any amendment,
renewal or extension of an outstanding Letter of Credit), the Parent shall give
the Issuing Bank and the Administrative Agent irrevocable written notice at
least three (3) Business Days prior to the requested date of such issuance
specifying the applicable Borrower, the date (which shall be a Business Day)
such Letter of Credit is to be issued (or amended, extended or renewed, as the
case may be), the expiration date of such Letter of Credit, the amount of such
Letter of Credit, the name and address of the beneficiary thereof and such
other information as shall be necessary to prepare, amend, renew or extend such
Letter of Credit. In addition to the satisfaction of the conditions in Article
III, the issuance of such Letter of Credit (or any amendment which increases
the amount of such Letter of Credit) will be subject to the further conditions
that such Letter of Credit shall be in such form and contain such terms as the
Issuing Bank shall approve and that the applicable Borrower shall have executed
and delivered any additional applications,
agreements and instruments relating to such Letter of Credit as the
Issuing Bank shall reasonably require; provided, that in the event of any
conflict between such applications, agreements or instruments and this
Agreement, the terms of this Agreement shall control.

          (c) At least two Business Days prior to the issuance of any Letter of
Credit, the Issuing Bank will confirm with the Administrative Agent (by
telephone or in writing) that the Administrative Agent has received such notice
and if not, the Issuing Bank will provide the Administrative Agent with a copy
thereof. Unless the Issuing Bank has received notice from the Administrative
Agent on or before the Business Day immediately preceding the date the Issuing
Bank is to issue the requested Letter of Credit directing the Issuing Bank not
to issue the Letter of Credit because such issuance is not then permitted
hereunder because of the limitations set forth in Section 2.21(a) or that one
or more conditions specified in Article III are not then satisfied, then,
subject to the terms and conditions hereof, the Issuing Bank shall, on the
requested date, issue such Letter of Credit in accordance with the Issuing
Bank’s usual and customary business practices.

          (d) The Issuing Bank shall examine all documents purporting to represent a
demand for payment under a Letter of Credit promptly following its receipt
thereof. The Issuing Bank shall notify the Parent and the Administrative Agent
of such demand for payment and whether the Issuing Bank has made or will make a
LC Disbursement thereunder; provided, that any failure to give or delay in
giving such notice shall not relieve any Borrower of its obligation to
reimburse the Issuing Bank and the Lenders with respect to such LC
Disbursement. The Borrowers jointly and severally shall be irrevocably and
unconditionally obligated to reimburse the Issuing Bank for any LC
Disbursements paid by the Issuing Bank in respect of such drawing, without
presentment, demand or other formalities of any kind. Unless the Parent shall
have notified the Issuing Bank and the Administrative Agent prior to 11:00 a.m.
(Atlanta, Georgia time) on the Business Day immediately prior to the date on
which such drawing is honored that any Borrower intends to reimburse the
Issuing Bank for the amount of such drawing in funds other than from the
proceeds of Revolving Loans, the Parent shall be deemed to have timely given a
Notice of Revolving Borrowing to the Administrative Agent requesting the
Lenders to make a Base Rate Borrowing on the date on which such drawing is
honored in an exact amount due to the Issuing Bank; provided, that for
purposes solely of such Borrowing, the conditions precedents set forth in
Section 3.2 hereof shall not be applicable. The Administrative Agent shall
notify the Lenders of such Borrowing in accordance with Section 2.3, and each
Lender shall make the proceeds of its Base Rate Loan included in such Borrowing
available to the

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Administrative Agent for the account of the Issuing Bank in
accordance with Section 2.5. The proceeds of such Borrowing shall be applied
directly by the Administrative Agent to reimburse the Issuing Bank for such LC
Disbursement.

          (e) If for any reason a Base Rate Borrowing may not be (as determined in
the sole discretion of the Administrative Agent), or is not, made in accordance
with the foregoing provisions, then each Lender (other than the Issuing Bank)

shall be obligated to fund the participation that such Lender purchased
pursuant to subsection (a) in an amount equal to its Pro Rata Share of such LC
Disbursement on and as of the date which such Base Rate Borrowing should have
occurred. Each Lender’s obligation to fund its participation shall be absolute
and unconditional and shall not be affected by any circumstance, including
without limitation (i) any setoff, counterclaim, recoupment, defense or other
right that such Lender or any other Person
may have against the Issuing Bank or any other Person for any reason
whatsoever, (ii) the existence of a Default or an Event of Default or the
termination of the Aggregate Revolving Commitments, (iii) any adverse change in
the condition (financial or otherwise) of any Borrower or any of its
Subsidiaries, (iv) any breach of this Agreement by any Borrower or any other
Lender, (v) any amendment, renewal or extension of any Letter of Credit or (vi)
any other circumstance, happening or event whatsoever, whether or not similar
to any of the foregoing. On the date that such participation is required to be
funded, each Lender shall promptly transfer, in immediately available funds,
the amount of its participation to the Administrative Agent for the account of
the Issuing Bank. Whenever, at any time after the Issuing Bank has received
from any such Lender the funds for its participation in a LC Disbursement, the
Issuing Bank (or the Administrative Agent on its behalf) receives any payment
on account thereof, the Administrative Agent or the Issuing Bank, as the case
may be, will distribute to such Lender its Pro Rata Share of such payment;
provided, that if such payment is required to be returned for any reason to any
Borrower or to a trustee, receiver, liquidator, custodian or similar official
in any bankruptcy proceeding, such Lender will return to the Administrative
Agent or the Issuing Bank any portion thereof previously distributed by the
Administrative Agent or the Issuing Bank to it.

          (f) To the extent that any Lender shall fail to pay any amount required to
be paid pursuant to paragraph (d) of this Section 2.21 on the due date
therefor, such Lender shall pay interest to the Issuing Bank (through the
Administrative Agent) on such amount from such due date to the date such
payment is made at a rate per annum equal to the Federal Funds Rate; provided,
that if such Lender shall fail to make such payment to the Issuing Bank within
three (3) Business Days of such due date, then, retroactively to the due date,
such Lender shall be obligated to pay interest on such amount at the Default
Rate.

          (g) If any Event of Default shall occur and be continuing, on the Business
Day that the Parent receives notice from the Administrative Agent or the
Required Lenders demanding the deposit of cash collateral pursuant to this
paragraph, the Borrowers shall deposit in an account with the Administrative
Agent, in the name of the Administrative Agent and for the benefit of the
Issuing Bank and the Lenders, an amount in cash equal to 102% of the LC
Exposure as of such date plus any accrued and unpaid fees thereon; provided,
that the obligation to deposit such cash collateral shall become effective
immediately, and such deposit shall become immediately due and payable, without
demand or notice of any kind, upon the occurrence of any Event of Default with
respect to any Borrower described in clause (h) or (i) of Section 8.1. Such
deposit shall be held by the Administrative Agent as collateral for the payment

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and performance of the obligations of the Borrowers under this Agreement. The
Administrative Agent shall have exclusive dominion and control, including the
exclusive right of withdrawal, over such account. Each Borrower agrees to
execute any documents and/or certificates to effectuate the intent of this
paragraph. Other than any interest earned on the investment of such deposits,
which investments shall be made at the option and sole discretion of the
Administrative Agent and at the Borrowers’ risk and expense, such deposits
shall not bear interest. Interest and profits, if any, on such investments
shall accumulate in such account. Moneys in such account shall applied by the
Administrative Agent to reimburse the Issuing Bank for LC Disbursements for
which it had not been reimbursed and to the extent so applied, shall be held
for the satisfaction of the reimbursement obligations of the Borrowers for the
LC Exposure at such time or, if the maturity of the Loans has been accelerated,
with the consent of the Required Lenders, be applied to satisfy other
obligations of the Borrowers under this Agreement. If the Borrowers
are required to provide an amount of cash collateral hereunder as a result
of the occurrence of an Event of Default, such amount (to the extent not so
applied as aforesaid) shall be returned to the Borrowers within three Business
Days after all Events of Default have been cured or waived.

          (h) Promptly following the end of each Fiscal Quarter, the Issuing Bank
shall deliver (through the Administrative Agent) to each Lender and the Parent
a report describing the aggregate Letters of Credit outstanding at the end of
such Fiscal Quarter. Upon the request of any Lender from time to time, the
Issuing Bank shall deliver to such Lender any other information reasonably
requested by such Lender with respect to each Letter of Credit then
outstanding.

          (i) Each Borrower’s obligation to reimburse LC Disbursements hereunder
shall be absolute, unconditional and irrevocable and shall be performed
strictly in accordance with the terms of this Agreement under all circumstances
whatsoever and irrespective of any of the following circumstances:

      (i) Any lack of validity or enforceability of any Letter of Credit
or this Agreement;

      (ii) The existence of any claim, set-off, defense or other right
which any Borrower or any Subsidiary or Affiliate of any Borrower may
have at any time against a beneficiary or any transferee of any Letter of
Credit (or any Persons or entities for whom any such beneficiary or
transferee may be acting), any Lender (including the Issuing Bank) or any
other Person, whether in connection with this Agreement or the Letter of
Credit or any document related hereto or thereto or any unrelated
transaction;

      (iii) Any draft or other document presented under a Letter of Credit
proving to be forged, fraudulent or invalid in any respect or any
statement therein being untrue or inaccurate in any respect;

      (iv) Payment by the Issuing Bank under a Letter of Credit against
presentation of a draft or other document to the Issuing Bank that does
not comply with the terms of such Letter of Credit;

40

 

      (v) Any other event or circumstance whatsoever, whether or not
similar to any of the foregoing, that might, but for the provisions of
this Section, constitute a legal or equitable discharge of, or provide a
right of setoff against, the Borrowers’ obligations hereunder; or

      (vi) The existence of a Default or an Event of Default.

Neither the Administrative Agent, the Issuing Bank, the Lenders nor any Related
Party of any of the foregoing shall have any liability or responsibility by
reason of or in connection with the issuance or transfer of any Letter of
Credit or any payment or failure to make any payment thereunder (irrespective
of any of the circumstances referred to above), or any error, omission,
interruption, loss or delay in transmission or delivery of any draft, notice or
other communication under or relating to any Letter of Credit (including any
document required to make a drawing thereunder), any error in interpretation of
technical terms or any consequence arising from
causes beyond the control of the Issuing Bank; provided, that the foregoing
shall not be construed to excuse the Issuing Bank from liability to any
Borrower to the extent of any actual direct damages (as opposed to special,
indirect (including claims for lost profits or other consequential damages) or
punitive damages, claims in respect of which are hereby waived by each Borrower
to the extent permitted by applicable law) suffered by any Borrower that are
caused by the Issuing Bank’s failure to exercise care when determining whether
drafts or other documents presented under a Letter of Credit comply with the
terms thereof. The parties hereto expressly agree, that in the absence of
gross negligence or willful misconduct on the part of the Issuing Bank (as
finally determined by a court of competent jurisdiction), the Issuing Bank

shall be deemed to have exercised care in each such determination. In
furtherance of the foregoing and without limiting the generality thereof, the
parties agree that, with respect to documents presented that appear on their
face to be in substantial compliance with the terms of a Letter of Credit, the
Issuing Bank may, in its sole discretion, either accept and make payment upon
such documents without responsibility for further investigation, regardless of
any notice or information to the contrary, or refuse to accept and make payment
upon such documents if such documents are not in strict compliance with the
terms of such Letter of Credit.

          (j) Each Letter of Credit shall be subject to the Uniform Customs and
Practices for Documentary Credits (1993 Revision), International Chamber of
Commerce Publication No. 500, as the same may be amended from time to time,
and, to the extent not inconsistent therewith, the governing law of this
Agreement set forth in Section 10.5.

          Section 2.22. Increase of Commitments; Additional Lenders.

          (a) So long as no Event of Default has occurred and is continuing, from
time to time after the Closing Date, the Parent may, upon at least 30 days’
written notice to the Administrative Agent (who shall promptly provide a copy
of such notice to each Lender), who shall promptly notify the Lenders, propose
to increase the Aggregate Revolving Commitment Amount up to an amount not to
exceed $200,000,000 (the amount of any such increase, the “Additional
Commitment Amount”). Each Lender shall have the right for a period of 15 days
following receipt of such notice, to elect by written notice to the Parent and
the Administrative Agent to increase its Revolving Commitment by a principal
amount equal to its Pro Rata Share of the Additional Commitment Amount. No
Lender (or any successor thereto) shall have any

41

 

obligation to increase its
Revolving Commitment or its other obligations under this Agreement and the
other Loan Documents, and any decision by a Lender to increase its Revolving
Commitment shall be made in its sole discretion independently from any other
Lender.

          (b) If any Lender shall not elect to increase its Revolving Commitment
pursuant to subsection (a) of this Section, the Parent may designate another
bank or other financial institution (which may be, but need not be, one or more
of the existing Lenders) which at the time agrees to, in the case of any such
Person that is an existing Lender, increase its Revolving Commitment and in the
case of any other such Person (an “Additional Lender”), become a party to this
Agreement; provided, however, that any new bank or financial institution must
be acceptable to the Administrative Agent, which acceptance will not be
unreasonably withheld or delayed. The sum of the increases in the Revolving
Commitments of the existing Lenders pursuant to this subsection (b) plus the
Revolving Commitments of the Additional
Lenders shall not in the aggregate exceed the unsubscribed amount of the
Additional Commitment Amount.

          (c) An increase in the aggregate amount of the Revolving Commitments
pursuant to this Section 2.22 shall become effective upon the receipt by the
Administrative Agent of an agreement in form and substance satisfactory to the
Administrative Agent signed by the Borrowers, by each Additional Lender and by
each other Lender whose Revolving Commitment is to be increased, setting forth
the new Revolving Commitments of such Lenders and setting forth the agreement
of each Additional Lender to become a party to this Agreement and to be bound
by all the terms and provisions hereof, together with such evidence of
appropriate corporate authorization on the part of the Borrowers with respect
to the increase in the Revolving Commitments and such opinions of counsel for
the Borrowers with respect to the increase in the Revolving Commitments as the
Administrative Agent may reasonably request.

          (d) Upon the acceptance of any such agreement by the Administrative Agent,
the Aggregate Revolving Commitment Amount shall automatically be increased by
the amount of the Revolving Commitments added through such agreement and Annex
I shall automatically be deemed amended to reflect the Revolving Commitments of
all Lenders after giving effect to the addition of such Revolving Commitments.

          (e) Upon any increase in the aggregate amount of the Revolving Commitments
pursuant to this Section 2.22 that is not pro rata among all Lenders, (x)
within five Business Days, in the case of any Base Rate Loans then outstanding,
and at the end of the then current Interest Period with respect thereto, in the
case of any Eurodollar Loans then outstanding, the Borrowers shall prepay such
Loans in their entirety and, to the extent the Borrowers elect to do so and
subject to the conditions specified in Article III, the Borrowers shall
reborrow Loans from the Lenders in proportion to their respective Revolving
Commitments after giving effect to such increase, until such time as all
outstanding Loans are held by the Lenders in such proportion and (y) effective
upon such increase, the amount of the participations held by each Lender in
each Letter of Credit then outstanding shall be adjusted such that, after
giving effect to such adjustments, the Lenders shall hold participations in
each such Letter of Credit in the proportion its respective Revolving
Commitment bears to the aggregate Revolving Commitments after giving effect to
such increase.

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          Section 2.23. Mitigation of Obligations.. If any Lender requests
compensation under Section 2.17, or if any Borrower is required to pay any
additional amount to any Lender or any Governmental Authority for the account
of any Lender pursuant to Section 2.19, then such Lender shall use reasonable
efforts to designate a different lending office for funding or booking its
Loans hereunder or to assign its rights and obligations hereunder to another of
its offices, branches or affiliates, if, in the sole judgment of such Lender,
such designation or assignment (i) would eliminate or reduce amounts payable
under Section 2.17 or Section 2.19, as the case may be, in the future and (ii)
would not subject such Lender to any unreimbursed cost or expense and would not
otherwise be disadvantageous to such Lender. The Borrowers hereby jointly and
severally agree to pay all costs and expenses incurred by any Lender in
connection with such designation or assignment.

          Section 2.24. Defaulting Lenders.

          (a) If for any reason any Lender (a “Defaulting Lender”) shall fail or
refuse to perform any of its obligations under this Agreement or any other Loan
Document to which it is a party within the time period specified for
performance of such obligation or, if no time period is specified, if such
failure or refusal continues for a period of two Business Days after notice
from the Administrative Agent, then, in addition to the rights and remedies
that may be available to the Administrative Agent or the Borrowers under this
Agreement or applicable law, such Defaulting Lender’s right to participate in
the administration of the Loans, this Agreement and the other Loan Documents,
including without limitation, any right to vote in respect of, to consent to or
to direct any action or inaction of the Administrative Agent or to be taken
into account in the calculation of the Required Lenders, shall be suspended
during the pendency of such failure or refusal. If a Lender is a Defaulting
Lender because it has failed to make timely payment to the Administrative Agent
of any amount required to be paid to the Administrative Agent hereunder
(without giving effect to any notice or cure periods), in addition to other
rights and remedies which the Administrative Agent or any Borrower may have
under the immediately preceding provisions or otherwise, the Administrative
Agent shall be entitled (i) to collect interest from such Defaulting Lender on
such delinquent payment for the period from the date on which the payment was
due until the date on which the payment is made at the Federal Funds Rate, (ii)
to withhold or setoff and to apply in satisfaction of the defaulted payment and
any related interest, any amounts otherwise payable to such Defaulting Lender
under this Agreement or any other Loan Document and (iii) to bring an action or
suit against such Defaulting Lender in a court of competent jurisdiction to
recover the defaulted amount and any related interest. Any amounts received by
the Administrative Agent in respect of a Defaulting Lender’s Loans shall not be
paid to such Defaulting Lender and shall be held uninvested by the
Administrative Agent and either applied against the purchase price of such
Loans under the following subsection (b) or paid to such Defaulting Lender upon
the Defaulting Lender’s curing of its default.

          (b) Any Lender who is not a Defaulting Lender shall have the right, but
not the obligation, in its sole discretion, to acquire all of a Defaulting
Lender’s Commitment. Any Lender desiring to exercise such right shall give
written notice thereof to the Administrative Agent and the Parent no sooner
than 2 Business Days and not later than 5 Business Days after such Defaulting
Lender became a Defaulting Lender. If more than one Lender exercises such
right, each such Lender shall have the right to acquire an amount of such
Defaulting Lender’s Commitment in proportion to the Commitments of the other
Lenders exercising such right. If

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after such 5th Business Day, the Lenders
have not elected to purchase all of the Commitment of such Defaulting Lender,
then the Parent may, by giving written notice thereof to the Administrative
Agent, such Defaulting Lender and the other Lenders, either (i) demand that
such Defaulting Lender assign its Commitment to an Eligible Assignee subject to
and in accordance with the provisions of Section 10.4(b) for the purchase price
provided for below or (ii) terminate the Commitment of such Defaulting Lender,
whereupon such Defaulting Lender shall no longer be a party hereto or have any
rights or obligations hereunder or under any of the other Loan Documents. No
party hereto shall have any obligation whatsoever to initiate any such
replacement or to assist in finding an Eligible Assignee. Upon any such
purchase or assignment, the Defaulting Lender’s interest in the Loans and its
rights hereunder (but not its liability in respect thereof or under the Loan
Documents or this Agreement to the extent the same relate to the period prior
to the effective date of the purchase) shall terminate on the date of purchase,
and the Defaulting Lender shall promptly execute all documents reasonably
requested to surrender and transfer such interest to the purchaser or assignee
thereof, including an appropriate
Assignment and Acceptance and, notwithstanding Section 10.4(b), shall pay
to the Administrative Agent an assignment fee in the amount of $1,000. The
purchase price for the Commitment of a Defaulting Lender shall be equal to the
amount of the principal balance of the Loans outstanding and owed by the
Borrowers to the Defaulting Lender. Prior to payment of such purchase price to
a Defaulting Lender, the Administrative Agent shall apply against such purchase
price any amounts retained by the Administrative Agent pursuant to the last
sentence of the immediately preceding subsection (a). The Defaulting Lender
shall be entitled to receive amounts owed to it by the Borrowers under the Loan
Documents which accrued prior to the date of the default by the Defaulting
Lender, to the extent the same are received by the Administrative Agent from or
on behalf of the Borrowers. There shall be no recourse against any Lender or
the Administrative Agent for the payment of such sums except to the extent of
the receipt of payments from any other party or in respect of the Loans.

          Section 2.25. Replacement of Lenders. If any Lender requests compensation
under Section 2.17, or if the Borrowers are required to pay any additional
amount to any Lender or any Governmental Authority of the account of any Lender
pursuant to Section 2.19, or if any Lender is a Defaulting Lender, then the
Borrowers may, at its sole expense and effort, upon notice to such Lender and
the Administrative Agent, (a) require such Lender to assign and delegate,
without recourse (in accordance with and subject to the restrictions set forth
in Section 10.4(b) all its interests, rights and obligations under this
Agreement to an assignee that shall assume such obligations (which assignee may
be another Lender) or (b) if no Default or Event of Default has occurred and is
continuing, terminate the Revolving Commitment of such Lender; provided, that
(i) prior the replacement of such Lender with an assignee, the Borrowers shall
have received the prior written consent of the Administrative Agent, which
consent shall not be unreasonably withheld, (ii) such Lender shall have
received payment of an amount equal to the outstanding principal amount of all
Loans owed to it, accrued interest thereon, accrued fees and all other amounts
payable to it hereunder, from the assignee (in the case of such outstanding
principal and accrued interest), if applicable, and from the Borrowers (in the
case of all other amounts) and (iii) in the case of a claim for compensation
under Section 2.17 or payments required to be made pursuant to Section 2.19,
such assignment or termination of Revolving Commitment will result in a
reduction in such compensation or payments. A Lender shall not be required to
make any such assignment and delegation or have its Revolving Commitment

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terminated if, prior thereto, as a result of a waiver by such Lender or
otherwise, the circumstances entitling the Borrower to require such assignment

and delegation cease to apply.

ARTICLE III

CONDITIONS PRECEDENT TO LOANS AND LETTERS OF CREDIT

          Section 3.1. Conditions To Effectiveness. The obligations of the Lenders
(including the Swingline Lender) to make Loans and the obligation of the
Issuing Bank to issue any Letter of Credit hereunder shall not become effective
until the date on which each of the following conditions is satisfied (or
waived in accordance with Section 10.2).

          (a) The Administrative Agent shall have received all fees and other
amounts due and payable on or prior to the Closing Date, including
reimbursement or payment of all out-of-pocket expenses (including reasonable
fees, charges and disbursements of outside counsel to the Administrative Agent)
required to be reimbursed or paid by the Borrowers hereunder or under any other
Loan Document.

          (b) The Administrative Agent (or its counsel) shall have received the
following, each in form and substance satisfactory to the Administrative Agent:

      (i) a counterpart of this Agreement signed by or on behalf of each
party hereto or written evidence satisfactory to the Administrative Agent
(which may include telecopy transmission of a signed signature page of
this Agreement) that such party has signed a counterpart of this
Agreement;

      (ii) a duly executed Revolving Credit Note payable to each Lender
and a duly executed Swingline Note payable to the Swingline Lender;

      (iii) the Subsidiary Guaranty Agreement duly executed by all
Material Subsidiaries that are Domestic Subsidiaries (other than Services
and Checkfree Investment);

      (iv) the duly executed Security Agreement and Intellectual Property
Security Agreement, together with (A) UCC financing statements and other
applicable documents under the laws of the jurisdictions with respect to
the perfection of the Liens granted under such agreements, as requested
by the Collateral Agent in order to perfect such Liens, duly authorized
or executed by Services, (B) copies of favorable UCC, tax, judgment and
fixture lien search reports in all necessary or appropriate jurisdictions
and under all legal and trade names of Services, indicating that there
are no prior Liens on any of the Collateral other than Permitted
Encumbrances, and (C) a Perfection Certificate duly completed and
executed by Services;

      (v) the Intercreditor Agreement, duly executed by all Secured
Parties;

      (vi) a certificate of the Secretary or Assistant Secretary of each
Loan Party, attaching and certifying copies of its bylaws and of the
resolutions of its boards of directors, or partnership agreement or
limited liability company agreement, or

45

 

comparable organizational documents and authorizations, authorizing
the execution, delivery and performance of the Loan Documents to which it
is a party and certifying the name, title and true signature of each
officer of such Loan Party executing the Loan Documents to which it is a
party;

      (vii) certified copies of the articles or certificate of
incorporation, certificate of organization or limited partnership, or
other registered organizational documents of each Loan Party, together
with certificates of good standing or existence, as may be available from
the Secretary of State of the jurisdiction of organization of such Loan
Party and each other jurisdiction where such Loan Party is required to be
qualified to do business as a foreign corporation;

      (viii) a favorable written opinion of Alston & Bird, LLP, counsel to
the Loan Parties, addressed to the Administrative Agent and each of the
Lenders, and covering such matters relating to the Loan Parties, the Loan
Documents and the transactions contemplated therein as the Administrative
Agent or the Required Lenders shall reasonably request;

      (ix) a certificate, dated the Closing Date and signed by a
Responsible Officer, certifying that (x) no Default or Event of Default
exists, (y) all representations and warranties of each Loan Party set
forth in the Loan Documents are true and correct and (z) since the date
of the financial statements of the Parent described in Section 4.4, there
shall have been no change which has had or could reasonably be expected
to have a Material Adverse Effect;

      (x) a duly executed Notice of Revolving Borrowing, if applicable;

      (xi) a duly executed funds disbursement agreement;

      (xii) certified copies of all consents, approvals, authorizations,
registrations and filings and orders required to be made or obtained
under any Requirement of Law, or by any Contractual Obligation of each
Loan Party, in connection with the execution, delivery, performance,
validity and enforceability of the Loan Documents or any of the
transactions contemplated thereby, and such consents, approvals,
authorizations, registrations, filings and orders shall be in full force
and effect and all applicable waiting periods shall have expired, and no
investigation or inquiry by any governmental authority regarding this
Agreement or any transaction being financed with the proceeds hereof
shall be ongoing;

      (xiii) copies of (A) the internally prepared unaudited quarterly
financial statements of Parent and its Subsidiaries on a consolidated
basis for the Fiscal Quarter ending on December 31, 2003, and (B) the
audited consolidated financial statements for Parent and its Subsidiaries
for the Fiscal Year ending June 30, 2003;

      (xiv) certificates of insurance, in form and detail acceptable to
the Administrative Agent, describing the types and amounts of insurance
(property and liability) covering any of the tangible insurable
Collateral maintained by the Services, in each case naming the
Administrative Agent as loss payee or additional insured, as the

46

 

case may be, together with a lender’s loss payable endorsement in
form and substance satisfactory to the Administrative Agent; and

      (xv) a certificate, dated the Closing Date and signed by the chief
financial officer of each Loan Party, confirming the solvency of each
Loan Party before and after giving effect to all transactions
contemplated by the Loan Documents.

          Section 3.2. Each Credit Event. The obligation of each Lender to make a
Loan on the occasion of any Borrowing and of the Issuing Bank to issue, amend,
renew or extend any Letter of Credit is subject to the satisfaction of the
following conditions:

          (a) at the time of and immediately after giving effect to such Borrowing
or the issuance, amendment, renewal or extension of such Letter of Credit, as
applicable, no Default or Event of Default shall exist;

          (b) at the time of and immediately after giving effect to such Borrowing
or the issuance, amendment, renewal or extension of such Letter of Credit, all
representations and warranties of each Loan Party set forth in the Loan
Documents shall be true and correct in all material respects on and as of the
date of such Borrowing or the date of issuance, amendment, extension or renewal
of such Letter of Credit, in each case before and after giving effect thereto
(except for such representation and warranties which relate to an earlier date
or such changes in factual circumstances as are expressly permitted under the
Loan Documents);

          (c) after giving effect to such Borrowing or the issuance, amendment,
renewal or extension of such Letter of Credit, as applicable, the Net Leverage
Ratio as of such date would not be greater than 1.75:1.00; and

          (d) the Administrative Agent shall have received such other documents,
certificates, information or legal opinions as the Administrative Agent may
reasonably request, all in form and substance reasonably satisfactory to the
Administrative Agent.

          Each Borrowing and each issuance, amendment, extension or renewal of any
Letter of Credit shall be deemed to constitute a representation and warranty by
the Borrowers on the date thereof as to the matters specified in paragraphs (a)
and (b) of this Section 3.2.

          Section 3.3. Delivery of Documents. All of the Loan Documents,
certificates, legal opinions and other documents and papers referred to in this
Article III, unless otherwise specified, shall be delivered to the
Administrative Agent for the account of each of the Lenders and, except for the
Notes, in sufficient counterparts or copies for each of the Lenders and shall
be in form and substance satisfactory in all respects to the Administrative
Agent.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES

          The Borrower represents and warrants to the Administrative Agent and each
Lender as follows:

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          Section 4.1. Existence; Power. Each Borrower and each of their
Subsidiaries (i) is duly organized, validly existing and in good standing as a
corporation, partnership or limited liability company under the laws of the
jurisdiction of its organization, (ii) has all requisite power and authority to
carry on its business as now conducted, and (iii) is duly qualified to do
business, and is in good standing, in each jurisdiction where such
qualification is required, except where a failure to be so qualified could not
reasonably be expected to result in a Material Adverse Effect.

          Section 4.2. Organizational Power; Authorization. The execution, delivery
and performance by each Loan Party of the Loan Documents to which it is a party
are within such Loan Party’s organizational powers and have been duly
authorized by all necessary organizational, and if required, shareholder,
partner or member, action. This Agreement has been duly executed and delivered
by each Borrower, and constitutes, and each other Loan Document to which any
Loan Party is a party, when executed and delivered by such Loan Party, will
constitute, valid and binding obligations of such Borrower or such Loan Party
(as the case may be), enforceable against it in accordance with their
respective terms, except as may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium, or similar laws affecting the
enforcement of creditors’ rights generally and by general principles of equity.

          Section 4.3. Governmental Approvals; No Conflicts. The execution,
delivery and performance by each Borrower of this Agreement, and by each Loan
Party of the other Loan Documents to which it is a party (a) do not require any
consent or approval of, registration or filing with, or any action by, any
Governmental Authority, except those as have been obtained or made and are in
full force and effect, (b) will not violate any Requirements of Law applicable
to any Borrower or any of its Subsidiaries or any judgment, order or ruling of
any Governmental Authority, (c) will not violate or result in a default under
any indenture, material agreement or other material instrument binding on any
Borrower or any of its Subsidiaries or any of its assets or give rise to a
right thereunder to require any payment to be made by any Borrower or any of
its Subsidiaries and (d) will not result in the creation or imposition of any
Lien on any asset of any Borrower or any of its Subsidiaries, except Liens (if
any) created under the Loan Documents.

          Section 4.4. Financial Statements. The Parent has furnished to each
Lender the audited consolidated balance sheet of the Parent and its
Subsidiaries as of June 30, 2003 and the related consolidated statements of
income, shareholders’ equity and cash flows for the Fiscal Year then ended
prepared by Deloitte & Touche, LLP certified by a Responsible Officer. Such
financial statements fairly present the consolidated financial condition of the
Parent and its Subsidiaries as of such dates and the consolidated results of
operations for such periods in conformity with GAAP consistently applied.
Since June 30, 2003, there have been no changes with respect to any Borrower
and its Subsidiaries which have had or could reasonably be expected to have,
singly or in the aggregate, a Material Adverse Effect.

          Section 4.5. Litigation and Environmental Matters.

          (a) No litigation, investigation or proceeding of or before any
arbitrators or Governmental Authorities is pending against or, to the knowledge
of the Borrowers, threatened against or affecting any Borrower or any of its
Subsidiaries (i) as to which there is a reasonable

48

 

possibility of an adverse determination that could reasonably be expected
to have, either individually or in the aggregate, a Material Adverse Effect or
(ii) which in any manner draws into question the validity or enforceability of
this Agreement or any other Loan Document.

          (b) Except for the matters set forth on Schedule 4.5 and except for
matters that could not reasonably be expected to have, either individually or
in the aggregate, a Material Adverse Effect, none of the Borrowers or any of
their Subsidiaries (i) has failed to comply with any Environmental Law or to
obtain, maintain or comply with any permit, license or other approval required
under any Environmental Law, (ii) has become subject to any Environmental
Liability, (iii) has received notice of any claim with respect to any
Environmental Liability or (iv) knows of any basis for any Environmental
Liability.

          Section 4.6. Compliance with Laws and Agreements. Each Borrower and each
Subsidiary is in compliance with (a) all Requirements of Law and all judgments,
decrees and orders of any Governmental Authority and (b) all indentures,
agreements or other instruments binding upon it or its properties, except where
non-compliance with either of subsections (a) or (b), either singly or in the
aggregate, could not reasonably be expected to result in a Material Adverse
Effect.

          Section 4.7. Investment Company Act, Etc. None of the Borrowers nor any
of their Subsidiaries is (a) an “investment company” or is “controlled” by an
“investment company”, as such terms are defined in, or subject to regulation
under, the Investment Company Act of 1940, as amended, (b) a “holding company”
as defined in, or subject to regulation under, the Public Utility Holding
Company Act of 1935, as amended or (c) otherwise subject to any other
regulatory scheme limiting its ability to incur debt.

          Section 4.8. Taxes. Each Borrower and its Subsidiaries and each other
Person for whose taxes any Borrower or any Subsidiary are liable have timely
filed or caused to be filed all Federal income tax returns and all other
material tax returns that are required to be filed by them, and have paid all
taxes shown to be due and payable on such returns or on any assessments made
against it or its property and all other taxes, fees or other charges imposed
on it or any of its property by any Governmental Authority, except where the
same are currently being contested in good faith by appropriate proceedings and
for which any Borrower or such Subsidiary, as the case may be, has set aside on
its books adequate reserves. The charges, accruals and reserves on the books
of any Borrower and its Subsidiaries in respect of such taxes are adequate, and
no tax liabilities that could be materially in excess of the amount so provided
are anticipated.

          Section 4.9. Margin Regulations. None of the proceeds of any of the Loans
or Letters of Credit will be used, directly or indirectly, for “purchasing” or
“carrying” any “margin stock” with the respective meanings of each of such
terms under Regulation U of the Board of Governors of the Federal Reserve
System as now and from time to time hereafter in effect or for any purpose that
violates the provisions of Regulation U. None of the Borrowers nor any of
their Subsidiaries is engaged principally, or as one of its important
activities, in the business of extending credit for the purpose of purchasing
or carrying “margin stock.”

49

 

          Section 4.10. ERISA. No ERISA Event has occurred or is reasonably
expected to occur that, when taken together with all other such ERISA Events
for which liability is reasonably expected to occur, could reasonably be
expected to result in a Material Adverse Effect. The present value of all
accumulated benefit obligations under each Plan (based on the assumptions used
for purposes of Statement of Financial Standards No. 87) did not, as of the
date of the most recent financial statements reflecting such amounts, exceed
the fair market value of the assets of such Plan, and the present value of all
accumulated benefit obligations of all underfunded Plans (based on the
assumptions used for purposes of Statement of Financial Standards No. 87) did
not, as of the date of the most recent financial statements reflecting such
amounts, exceed the fair market value of the assets of all such underfunded
Plans.

          Section 4.11. Ownership of Property.

          (a) Each of the Borrowers and their Subsidiaries has good title to, or
valid leasehold interests in, all of its real and personal property material to
the operation of its business, including all such properties reflected in the
most recent audited consolidated balance sheet of the Parent referred to in
Section 4.4 or purported to have been acquired by any Borrower or any
Subsidiary after said date (except as sold or otherwise disposed of in the
ordinary course of business), in each case free and clear of Liens prohibited
by this Agreement. All leases that in the aggregate are material to the
business or operations of the Borrowers and their Subsidiaries are valid and
subsisting and are in full force.

          (b) Each of the Borrowers and their Subsidiaries owns, or is licensed, or
otherwise has the right, to use, all patents, trademarks, service marks, trade
names, copyrights and other intellectual property material to its business, and
the use thereof by the Borrowers and their Subsidiaries does not infringe in
any material respect on the rights of any other Person.

          (c) The properties of the Borrowers and their Subsidiaries are insured
with financially sound and reputable insurance companies which are not
Affiliates of the Borrowers (other than self insurance through a captive
insurance Subsidiary that is not a Material Subsidiary, either initially upon
investment into such Subsidiary or thereafter, for liabilities not currently
insured by the Borrowers and their Subsidiaries on the Closing Date and other
self insurance through such captive insurance Subsidiary as the Required
Lenders may approve, such approval not to be unreasonably withheld or delayed),
in such amounts with such deductibles and covering such risks as are
customarily carried by companies engaged in similar businesses and owning
similar properties in localities where any Borrower or any applicable
Subsidiary operates.

          Section 4.12. Disclosure. Each Borrower has disclosed to the Lenders all
agreements, instruments, and corporate or other restrictions to which the
Borrowers and all Subsidiaries are subject, and all other matters known to any
of them, that, with respect to any of the foregoing, individually or in the
aggregate, could reasonably be expected to result in a Material Adverse Effect.
Neither the Information Memorandum nor any of the reports (including without
limitation all reports that any Borrower is required to file with the
Securities and Exchange Commission), financial statements, certificates or
other information furnished by or on behalf of any Borrower to the
Administrative Agent or any Lender in connection with the negotiation or
syndication of this Agreement or any other Loan Document or delivered

50

 

hereunder or thereunder (as modified or supplemented by any other
information so furnished) contains any material misstatement of fact or omits
to state any material fact necessary to make the statements therein, taken as a
whole, in light of the circumstances under which they were made, not
misleading; provided, that with respect to projected financial information, the
Borrowers represent only that such information was prepared in good faith based
upon assumptions believed to be reasonable at the time.

          Section 4.13. Labor Relations. There are no strikes, lockouts or other
material labor disputes or grievances against any Borrower or any of its
Subsidiaries, or, to any Borrower’s knowledge, threatened against or affecting
any Borrower or any of its Subsidiaries, and no significant unfair labor
practice, charges or grievances are pending against any Borrower or any of its
Subsidiaries, or to any Borrower’s knowledge, threatened against any of them
before any Governmental Authority which strikes, lockouts, disputes, grievances
or charges could individually or in the aggregate, reasonably be expected to
cause a Material Adverse Effect.. All payments due from any Borrower or any of
its Subsidiaries pursuant to the provisions of any collective bargaining
agreement have been paid or accrued as a liability on the books of such
Borrower or any such Subsidiary, except where the failure to do so could not
reasonably be expected to have a Material Adverse Effect.

          Section 4.14. Subsidiaries Schedule 4.14 sets forth the name of, the
ownership interest of each Borrower in, the jurisdiction of incorporation of,
and the type of, each Subsidiary and identifies each Subsidiary that is a
Subsidiary Loan Party, in each case as of the Closing Date.

          Section 4.15. Insolvency. After giving effect to the execution and
delivery of the Loan Documents, the making of the Loans and issuance of Letters
of Credit under this Agreement, neither the Parent nor its Subsidiaries will be
“insolvent,” within the meaning of such term as defined in §101 of Title 11 of
the United States Code, as amended from time to time, or be unable to pay its
debts generally as such debts become due, or have an unreasonably small capital
to engage in any business or transaction, whether current or contemplated.

          Section 4.16. OFAC. No Loan Party (i) is a person whose property or
interest in property is blocked or subject to blocking pursuant to Section 1 of
Executive Order 13224 of September 23, 2001 Blocking Property and Prohibiting
Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism
(66 Fed. Reg. 49079 (2001)), (ii) engages in any dealings or transactions
prohibited by Section 2 of such executive order, or is otherwise associated
with any such person in any manner violative of Section 2, or (iii) is a person
on the list of Specially Designated Nationals and Blocked Persons or subject to
the limitations or prohibitions under any other U.S. Department of Treasury’s
Office of Foreign Assets Control regulation or executive order.

          Section 4.17. Patriot Act. Each Loan Party is in compliance, in all
material respects, with the (i) the Trading with the Enemy Act, as amended, and
each of the foreign assets control regulations of the United States Treasury
Department (31 CFR, Subtitle B, Chapter V, as amended) and any other enabling
legislation or executive order relating thereto, and (ii) the Uniting And
Strengthening America By Providing Appropriate Tools Required To Intercept And
Obstruct Terrorism (USA Patriot Act of 2001). No part of the proceeds of the
Loans will be

51

 

used, directly or indirectly, for any payments to any governmental
official or employee, political party, official of a political party, candidate
for political office, or anyone else acting in an official capacity, in order
to obtain, retain or direct business or obtain any improper advantage, in
violation of the United States Foreign Corrupt Practices Act of 1977, as
amended.

ARTICLE V

AFFIRMATIVE COVENANTS

          Each Borrower covenants and agrees that so long as any Lender has a
Commitment hereunder or any Obligation remains unpaid or outstanding:

          Section 5.1. Financial Statements and Other Information. The Parent will
deliver to the Administrative Agent and each Lender:

          (a) as soon as available and in any event within 90 days after the end of
each Fiscal Year of the Parent, a copy of the annual audited report for such
Fiscal Year for the Parent and its Subsidiaries, containing a consolidated
balance sheet of the Parent and its Subsidiaries as of the end of such Fiscal
Year and the related consolidated statements of income, stockholders’ equity
and cash flows (together with all footnotes thereto) of the Parent and its
Subsidiaries for such Fiscal Year, setting forth in each case in comparative
form the figures for the previous Fiscal Year, all in reasonable detail and
reported on by Deloitte & Touche, LLP or other independent public accountants
of nationally recognized standing (without a “going concern” or like
qualification, exception or explanation and without any qualification or
exception as to scope of such audit) to the effect that such financial
statements present fairly in all material respects the financial condition and
the results of operations of the Parent and its Subsidiaries for such Fiscal
Year on a consolidated basis in accordance with GAAP and that the examination
by such accountants in connection with such consolidated financial statements
has been made in accordance with generally accepted auditing standards;

          (b) as soon as available and in any event within 45 days after the end of
each Fiscal Quarter of the Parent, an unaudited consolidated balance sheet of
the Parent and its Subsidiaries as of the end of such Fiscal Quarter and the
related unaudited consolidated statements of income and cash flows of the
Parent and its Subsidiaries for such Fiscal Quarter and the then elapsed
portion of such Fiscal Year, setting forth in each case in comparative form the
figures for the corresponding quarter and the corresponding portion of Parent’s
previous Fiscal Year;

          (c) concurrently with the delivery of the financial statements referred to
in clauses (a) and (b) above, a Compliance Certificate signed by the principal
executive officer and the principal financial officer of the Parent;

          (d) concurrently with the delivery of the financial statements referred to
in clause (a) above, a certificate of the accounting firm that reported on such
financial statements stating whether they obtained any knowledge during the
course of their examination of such financial statements of any Default or
Event of Default (which certificate may be limited to the extent required by
accounting rules or guidelines);

52

 

          (e) as soon as available, and in any event within 120 days of the end of
each fiscal year, Services shall prepare a list, together with any supporting
detail and documentation reasonably requested by the Administrative Agent,
classifying each asset of Services as either an asset of the Electronic
Commerce Services Division, the Investment Services Division, the Software
Division or as otherwise unallocated. Such list shall be prepared by Services’
management in accordance with Financial Accounting Statement 142 and prior
practice (“FAS 142 Schedule”), shall otherwise be in form and substance
satisfactory to the Administrative Agent, shall be certified by the chief
financial officer, chief executive officer or treasurer as being true and
correct in all material respect, and shall be incorporated into the Parent’s
audited financial statements as prepared by Deloitte & Touche or other
independent certified public accountants of recognized national standing;

          (f) as soon as available, and in any event within ten (10) days of the end
of each calendar quarter, a report, in form and substance satisfactory to the
Administrative Agent, as to all personal tangible property and fixtures of
Services as of the last day of such calendar quarter, which shall designate
whether such personal tangible property and fixtures are used in connection
with or is related to the Business or Electronic Commerce Services Division,
the Investment Services Division or the Software Division and shall be
accompanied by such supporting detail and documentation reasonably requested by
the Administrative Agent, and such report shall be certified by the chief
financial officer, chief executive officer or treasurer of Servicer as being
true and correct in all material respects;

          (g) promptly after the same become publicly available, copies of all
periodic and other reports, proxy statements and other materials filed with the
Securities and Exchange Commission, or any Governmental Authority succeeding to
any or all functions of said Commission, or with any national securities
exchange, or distributed by any Borrower to its shareholders generally, as the
case may be; and

          (h) promptly following any request therefor, such other information
regarding the results of operations, business affairs and financial condition
of any Borrower or any Subsidiary as the Administrative Agent or any Lender may
reasonably request.

          Section 5.2. Notices of Material Events. The Borrowers will furnish to
the Administrative Agent and each Lender prompt written notice of the
following:

          (a) the occurrence of any Default or Event of Default;

          (b) the filing or commencement of any action, suit or proceeding by or
before any arbitrator or Governmental Authority against or, to the knowledge of
any Borrower, affecting any Borrower or any Subsidiary which, if adversely
determined, could reasonably be expected to result in a Material Adverse
Effect;

          (c) the occurrence of any event or any other development by which any
Borrower or any of its Subsidiaries (i) fails to comply with any Environmental
Law or to obtain, maintain or comply with any permit, license or other approval
required under any Environmental Law, (ii) becomes subject to any Environmental
Liability, (iii) receives notice of any claim with respect to any Environmental
Liability, or (iv) becomes aware of any basis for any

53

 

Environmental Liability and in each of the preceding clauses, which
individually or in the aggregate, could reasonably be expected to result in a
Material Adverse Effect;

          (d) the receipt by any Borrower or any of its Subsidiaries of any written
notice of an alleged default or event of default, in respect of any Material
Indebtedness of such Borrower or any of its Subsidiaries, or the occurrence of
any “Level III Default” under the ACH Programs with SunTrust Bank; and

          (e) the occurrence of any ERISA Event that alone, or together with any
other ERISA Events that have occurred, could reasonably be expected to result
in liability of the Borrowers and their Subsidiaries in an aggregate amount
exceeding $3,000,000.

Each notice delivered under this Section shall be accompanied by a written
statement of a Responsible Officer setting forth the details of the event or
development requiring such notice and any action taken or proposed to be taken
with respect thereto.

          Section 5.3. Existence; Conduct of Business. Each Borrower will, and will
cause each of its Subsidiaries to, do or cause to be done all things necessary
to preserve, renew and maintain in full force and effect its legal existence
and its respective rights, licenses, permits, privileges, franchises, patents,
copyrights, trademarks and trade names material to the conduct of its business
and will continue to engage in the same business as presently conducted or such
other businesses that are reasonably related thereto; provided, that nothing in
this Section shall prohibit any merger, consolidation, liquidation or
dissolution permitted under Section 7.3 or 7.6.

          Section 5.4. Compliance with Laws, Etc. Each Borrower will, and will cause
each of its Subsidiaries to, comply with all laws, rules, regulations and
requirements of any Governmental Authority applicable to its business and
properties, including without limitation, all Environmental Laws, ERISA and
OSHA, except where the failure to do so, either individually or in the
aggregate, could not reasonably be expected to result in a Material Adverse
Effect.

          Section 5.5. Payment of Obligations. Each Borrower will, and will cause
each of its Subsidiaries to, pay and discharge at or before maturity, all of
its obligations and liabilities (including without limitation all tax
liabilities and claims that could result in a statutory Lien) before the same
shall become delinquent or in default, except where (a) the validity or amount
thereof is being contested in good faith by appropriate proceedings, (b) such
Borrower or such Subsidiary has set aside on its books adequate reserves with
respect thereto in accordance with GAAP and (c) the failure to make payment
pending such contest could not reasonably be expected to result in a Material
Adverse Effect.

          Section 5.6. Books and Records. Each Borrower will, and will cause each of
its Subsidiaries to, keep proper books of record and account in which full,
true and correct entries shall be made of all dealings and transactions in
relation to its business and activities to the extent necessary to prepare the
consolidated financial statements of Parent in conformity with GAAP.

          Section 5.7. Visitation, Inspection, Etc. Each Borrower will, and will
cause each of its Subsidiaries to, permit any representative of the Collateral
Agent, the Administrative

54

 

Agent or any Lender, to visit and inspect its properties (including,
without limitation, the real estate and Equipment), to conduct audits of the
Collateral (including without limitation all Accounts and Inventory and all
records relating thereto), to examine its books and records and to make copies
and take extracts therefrom, and to discuss its affairs, finances and accounts
with any of its officers and with its independent certified public accountants
(so long as the Parent shall have an opportunity to be present during any such
discussions), all at such reasonable times and as often as the Collateral
Agent, the Administrative Agent or any Lender may reasonably request after at
least two Business Day’s prior notice to the Parent; provided, however, if an
Event of Default has occurred and is continuing, no prior notice shall be
required. The Borrowers shall be jointly and severally responsible for payment
of all reasonable out-of-pocket expenses incurred by the Collateral Agent and
the Administrative Agent for up to two visits per Fiscal Year if no Event of
Default has occurred and is continuing, and unlimited visits if an Event of
Default has occurred and is continuing.

          Section 5.8. Maintenance of Properties; Insurance. Each Borrower will,
and will cause each of its Subsidiaries to, (a) except as otherwise expressly
permitted in the Loan Documents, keep and maintain all property material to the
conduct of its business in good working order and condition, ordinary wear and
tear excepted and (b) maintain with financially sound and reputable insurance
companies, insurance with respect to its properties and business, and the
properties and business of its Subsidiaries, against loss or damage of the
kinds customarily insured against by companies in the same or similar
businesses operating in the same or similar locations. In addition, and not in
limitation of the foregoing, Services shall maintain and keep in force
insurance coverage on its Inventory that is a part of the Collateral, as is
consistent with best industry practices. Services shall at all times cause the
Administrative Agent to be named as loss payee or additional insured with
respect to its property that is a part of the Collateral, as the case may be,
on all of its casualty and liability policies, and shall keep the lender’s loss
payable endorsement delivered at closing in full force and effect.

          Section 5.9. Use of Proceeds and Letters of Credit. Each Borrower will
use the proceeds of all Loans to finance working capital needs, fund future
Permitted Acquisitions and for other general corporate purposes of the
Borrowers and their Subsidiaries. No part of the proceeds of any Loan will be
used, whether directly or indirectly, for any purpose that would violate any
rule or regulation of the Board of Governors of the Federal Reserve System,
including Regulations T, U or X thereof. All Letters of Credit will be used
for general corporate purposes.

          Section 5.10. Additional Subsidiaries.

          (a) In the event that, subsequent to the Closing Date, any Person becomes
a Material Domestic Subsidiary, whether pursuant to an acquisition or
otherwise, (x) the Parent shall promptly notify the Administrative Agent and
the Lenders of the creation or acquisition of such Subsidiary and (y) within
ten (10) Business Days thereafter, the Borrowers shall cause such Person (i) to
join the Subsidiary Guaranty Agreement as a new Subsidiary Loan Party by
executing and delivering to the Collateral Agent a supplement to the Subsidiary
Guaranty Agreement, and (ii) to deliver all such other documentation (including
without limitation, legal opinions and certified organizational documents) and
to take all such other actions as such

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Subsidiary would have been required to deliver and take pursuant to
Section 3.1 if such Subsidiary had been a Loan Party on the Closing Date.

          (b) If the aggregate Consolidated EBITDA or cash, Permitted Investments,
short and long term investments, accounts receivable and fixed assets (on a
non-consolidated basis) of the Borrowers and the Subsidiary Loan Parties at any
time are less than the Aggregate Subsidiary Threshold, then the Borrowers shall
cause one or more other Subsidiaries to become additional Subsidiary Loan
Parties, by complying with the requirements of clause (a) above with respect to
such Subsidiaries, within ten (10) Business Days after such Consolidated EBITDA
or cash, Permitted Investments, short and long term investments, accounts
receivable and fixed assets, become less than the Aggregate Subsidiary
Threshold, so that after including the Consolidated EBITDA and cash, Permitted
Investments, short and long term investments, accounts receivable and fixed
assets of any such additional Subsidiary Loan Parties, the aggregate
Consolidated EBITDA and cash, Permitted Investments, short and long term
investments, accounts receivable and fixed assets (on a non-consolidated basis)
of the Borrowers and all such Subsidiary Loan Parties would equal or exceed the
Aggregate Subsidiary Threshold. The Borrowers may elect at any time to have
any Subsidiary become an additional Subsidiary Loan Party as provided in clause
(a) above.

          (c) All actions to be taken pursuant to this Section 5.10 shall be at the
expense of the Borrowers and the other Loan Parties, and shall be taken to the
reasonable satisfaction of the Administrative Agent.

          (d) The Parent may request that any Subsidiary Loan Party be released
from, and discharged from its obligations under, the Subsidiary Guaranty
Agreement from time to time, and the Administrative Agent shall promptly, at
the expense of the Borrowers, so release and discharge any such Subsidiary Loan
Party from the Subsidiary Guaranty Agreement to the extent that the Borrowers
have certified in reasonable detail satisfactory to the Administrative Agent
that after giving effect to such release and discharge, the Borrowers are in
compliance with clauses (a) and (b) of this Section 5.10.

          Section 5.11. Further Assurances. The Borrowers will, and will cause each
Subsidiary Loan Party to, execute any and all further documents, financing
statements, agreements and instruments, and take all such further actions
(including the filing and recording of financing statements and other
documents), which may be required under any applicable law, or which the
Collateral Agent, the Administrative Agent or the Required Lenders may
reasonably request, to effectuate the transactions contemplated by the Loan
Documents or to grant, preserve, protect or perfect the Liens created by the
Security Documents or the validity or priority of such Lien, all at the expense
of the Loan Parties. The Borrowers also agree to provide to the Collateral
Agent, from time to time upon request, evidence reasonably satisfactory to the
Collateral Agent as to the perfection and priority of the Liens created or
intended to be created by the Security Documents.

          Section 5.12. Information Regarding Collateral. The Parent will furnish
to the Collateral Agent (a) at least thirty (30) days prior written notice of
any change in the jurisdiction of organization of Services or any other Credit
Party that owns any Collateral and (b) prompt written notice (which shall be no
later than 5 Business Days thereafter) of any change (i) in the

56

 

legal name of Services or such other Credit Party, (ii) in the chief
executive office, principal place of business, or principal office in which
Services or such other Credit Party maintains books or records relating to
Collateral, (iii) in the federal taxpayer identification number or
organizational number of Services or such other Credit Party or (iv) in the
identity or corporate structure of Services or such other Credit Party. The
Parent also agrees promptly to notify the Collateral Agent and the
Administrative Agent if any material portion of the Collateral is damaged or
destroyed.

ARTICLE VI

FINANCIAL COVENANTS

          Each Borrower covenants and agrees that so long as any Lender has a
Commitment hereunder or any Obligation remains unpaid or outstanding:

          Section 6.1. Net Leverage Ratio. The Borrowers will maintain on the last
day of each Fiscal Quarter a Net Leverage Ratio of not greater than 1.75:1.00.

          Section 6.2. Fixed Charge Coverage Ratio. The Borrowers will maintain, as
of the end of each Fiscal Quarter, commencing with the Fiscal Quarter ending
June 30, 2004, a Fixed Charge Coverage Ratio of not less than 2.50:1:00.

          Section 6.3. Consolidated Net Worth. The Borrowers will maintain at all
times Consolidated Net Worth of not less than an amount equal to (i) 75% of the
Consolidated Net Worth as at December 31, 2003, plus (ii) 50% of Consolidated
Net Income on a cumulative basis for all preceding Fiscal Quarters of the
Parent, commencing with the Fiscal Quarter ending March 31, 2004; provided,
that if Consolidated Net Income is negative in any Fiscal Quarter the amount
added for such Fiscal Quarter shall be zero and such negative Consolidated Net
Income shall not reduce the amount of Consolidated Net Income added from any
previous Fiscal Quarter. The minimum required amount of Consolidated Net Worth
set forth above shall be increased by 75% of the amount by which the Parent’s
“total stockholders’ equity” is increased as a result of any public or private
offering of common stock of the Parent after the Closing Date. Promptly upon
the consummation of such offering, the Parent shall notify the Administrative
Agent in writing of the amount of such increase in “total stockholders’
equity”.

          Section 6.4. Minimum EBITDA. The Borrowers will maintain, as of the last
day of each Fiscal Quarter, a minimum Consolidated EBITDA for the four
consecutive Fiscal Quarters ending on such date of $100,000,000.

          Section 6.5. Minimum Cash Balance. The Borrowers shall maintain at all
times in domestic accounts, at least $100,000,000 of cash, cash equivalents and
marketable securities as determined on a consolidated basis in accordance with
GAAP.

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ARTICLE VII

NEGATIVE COVENANTS

          Each Borrower covenants and agrees that so long as any Lender has a
Commitment hereunder or any Obligation remains unpaid or outstanding:

          Section 7.1. Indebtedness. The Borrowers will not, and will not permit
any of their Subsidiaries to, create, incur, assume or suffer to exist any
Indebtedness, except:

          (a) Indebtedness created pursuant to the Loan Documents;

          (b) Indebtedness of the Borrowers and their Subsidiaries existing on the
date hereof and set forth on Schedule 7.1 and extensions, renewals and
replacements of any such Indebtedness that do not increase the outstanding
principal amount thereof (immediately prior to giving effect to such extension,
renewal or replacement) or shorten the maturity or the weighted average life
thereof;

          (c) unsecured Indebtedness of any Borrower or any Subsidiary owing to any
other Borrower or Subsidiary; provided, that any such Indebtedness that is owed
by a Subsidiary that is not a Subsidiary Loan Party shall be subject to Section
7.4;

          (d) unsecured Guarantees by any Borrower or any Subsidiary of Indebtedness
of any other Borrower or Subsidiary; provided, that Guarantees by any Loan
Party of Indebtedness of any Subsidiary that is not a Subsidiary Loan Party
shall be subject to Section 7.4;

          (e) Indebtedness incurred with respect to ACH Programs and other similar
programs and arrangements for the provision of ACH Services with parties other
than Lenders, and any Indebtedness arising under the ARC Transmission
Agreement;

          (f) Indebtedness in respect of Hedging Obligations permitted by Section
7.9; and

          (g) other Indebtedness of the Borrowers and their Subsidiaries in an
aggregate principal amount not to exceed the greater of (i) 33% of Consolidated
EBITDA for the four fiscal quarter period for which financial statements
required hereunder have most recently been delivered at the time such
Indebtedness is incurred or (ii) $50,000,000 at any time outstanding; provided,
however, that (x) no more than $50,000,000 of such Indebtedness may be secured
by property of the Borrowers and their Subsidiaries and (y) none of such
Indebtedness may be secured by intangible Collateral.

Borrowers will not, and will not permit any Subsidiary to, issue any preferred
stock or other preferred equity interests that (i) matures or is mandatorily
redeemable pursuant to a sinking fund obligation or otherwise, (ii) is or may
become redeemable or repurchaseable by such Borrower or such Subsidiary at the
option of the holder thereof, in whole or in part or (iii) is convertible or
exchangeable at the option of the holder thereof for Indebtedness or preferred
stock or any other

58

 

preferred equity interests described in this paragraph, on or prior to, in the
case of clause (i), (ii) or (iii), the first six months immediately following
the Termination Date.

          Section 7.2. Negative Pledge. The Borrowers will not, and will not permit
any of their Subsidiaries to, create, incur, assume or suffer to exist any Lien
on any of their assets or property now owned or hereafter acquired or, except:

          (a) Liens created in favor of the Collateral Agent pursuant to the
Security Documents for the benefit of the Secured Parties;

          (b) Permitted Encumbrances;

          (c) any Liens on any property or asset of any Borrower or any Subsidiary
existing on the Closing Date set forth on Schedule 7.2; provided, that such
Lien shall not apply to any other property or asset of any Borrower or any
Subsidiary;

          (d) Liens securing Indebtedness permitted by Section 7.1(g);

          (e) any Lien (i) existing on any asset of any Person at the time such
Person becomes a Subsidiary of any Borrower, (ii) existing on any asset of any
Person at the time such Person is merged with or into any Borrower or any
Subsidiary of any Borrower or (iii) existing on any asset prior to the
acquisition thereof by any Borrower or any Subsidiary of any Borrower;
provided, that any such Lien was not created in the contemplation of any of the
foregoing and any such Lien secures only those obligations which it secures on
the date that such Person becomes a Subsidiary or the date of such merger or
the date of such acquisition; and

          (f) extensions, renewals, or replacements of any Lien referred to in
paragraphs (a) through (d) of this Section; provided, that the principal amount
of the Indebtedness secured thereby is not increased and that any such
extension, renewal or replacement is limited to the assets originally
encumbered thereby.

          Section 7.3. Fundamental Changes.

          (a) The Borrowers will not, and will not permit any Subsidiary to, merge
into or consolidate into any other Person, or permit any other Person to merge
into or consolidate with it, or sell, lease, transfer or otherwise dispose of
(in a single transaction or a series of transactions) all or substantially all
of its assets (in each case, whether now owned or hereafter acquired) or all or
substantially all of the stock of any of its Subsidiaries (in each case,
whether now owned or hereafter acquired) or liquidate or dissolve; provided,
that if at the time thereof and immediately after giving effect thereto, no
Default or Event of Default shall have occurred and be continuing (i) any
Borrower or any Subsidiary may merge with a Person (other than a merger of a
Borrower with another Borrower) if any Borrower (or such Subsidiary if a
Borrower is not a party to such merger) is the surviving Person, (ii) any
Borrower may merge with another Borrower, provided that if Services is a party
to such merger, but is not the surviving Person, the surviving Person has
executed and delivered to the Collateral Agent assumption agreements, in form
and substance satisfactory to the Collateral Agent, with respect to the
Security Agreement and the Intellectual Property Security Agreement, together
with (aa) UCC financing statements, amendments and other applicable documents
under the laws of the jurisdictions with respect to

59

 

the perfection of the Liens granted under such agreements, as requested by
the Collateral Agent in order to perfect such Liens, duly authorized or
executed by such surviving Person, (bb) copies of favorable UCC, tax, judgment
and fixture lien search reports in all necessary or appropriate jurisdictions
and under all legal and trade names of surviving Person, indicating that there
are no prior Liens on any of the Collateral other than Permitted Encumbrances,
(cc) a Perfection Certificate duly completed and executed by the surviving
Person, (dd) a certificate of the Secretary or Assistant Secretary of the
surviving Person, attaching and certifying copies of its certificate of
incorporation, bylaws and of the resolutions of its boards of directors,
authorizing the execution, delivery and performance of the foregoing documents
to which it is a party and certifying the name, title and true signature of
each officer of the surviving Person executing such documents, (ee)
certificates of good standing or existence, as may be available from the
Secretary of State of Delaware and each other jurisdiction where the surviving
Person is required to be qualified to do business as a foreign corporation;
(ff) a favorable written opinion of Alston & Bird, LLP, counsel to the
surviving Person, addressed to the Collateral Agent, the Administrative Agent
and each of the Lenders, and covering such matters relating to the surviving
Person, the foregoing documents and the transactions contemplated thereby as
the Administrative Agent or the Required Lenders shall reasonably request;
(iii) any Subsidiary (excluding Services and Checkfree Investment) may merge
into another Subsidiary; provided, that if any party to such merger is a
Subsidiary Loan Party, either (A) the Subsidiary Loan Party shall be the
surviving Person or (B) if the surviving Person was not a Subsidiary Loan Party
either (1) such Person shall become a Subsidiary Loan Party immediately upon
consummation of such merger and otherwise in accordance with Section 5.10 or
(2) the Borrowers shall have certified in reasonable detail satisfactory to the
Administrative Agent that after giving effect to such merger, the Borrowers are
in compliance with clauses (a) and (b) of this Section 5.10, and (iv) any
Subsidiary may sell, transfer, lease or otherwise dispose of all or
substantially all of its assets to any Borrower or to any Subsidiary Loan
Party, (iv) the Borrowers and their Subsidiaries may eliminate or discontinue
business lines and segments from time to time if (A) such action has been
approved by the Board of Directors of one of the Borrowers, and (B) such
elimination or discontinuance will not jeopardize the Borrowers’ ability to
perform under any of the Loan Documents; and (v) any Subsidiary (other than a
Subsidiary Loan Party) may liquidate or dissolve if the Borrowers determine in
good faith that such liquidation or dissolution is in the best interests of the
Borrowers and is not materially disadvantageous to the Lenders; provided, that
any such merger involving a Person that is not a wholly-owned Subsidiary
immediately prior to such merger shall not be permitted unless also permitted
by Section 7.4.

          (b) The Borrowers will not, and will not permit any Subsidiary to, engage
in any business other than businesses of the type conducted by the Borrowers
and their Subsidiaries on the date hereof and businesses reasonably related
thereto.

          Section 7.4. Investments, Loans, Etc. The Borrowers will not, and will
not permit any of their Subsidiaries to, purchase, hold or acquire (including
pursuant to any merger with any Person that was not a wholly-owned Subsidiary
prior to such merger), any common stock, evidence of indebtedness or other
securities (including any option, warrant, or other right to acquire any of the
foregoing) of, make or permit to exist any loans or advances to, Guarantee any
obligations of, or make or permit to exist any investment or any other interest
in, any other Person (all of the foregoing being collectively called
“Investments”), or purchase or otherwise

60

 

acquire (in one transaction or a series of transactions) any assets of any
other Person that constitute a business unit, or create or form any Subsidiary,
except:

          (a) Investments (other than Permitted Investments) existing on the date
hereof and set forth on Schedule 7.4 (including Investments in Subsidiaries);

          (b) Permitted Investments;

          (c) Accounts receivable of any Borrower or any Subsidiary arising from
advances made by them in the ordinary course of business;

          (d) cash deposits made in the ordinary course of business pursuant to the
requirements of government agencies or public utilities;

          (e) advances resulting in the ordinary course of business from overdrafts
in connection with the ACH Programs and other similar programs and arrangements
for the provision of ACH Services with parties other than Lenders and in
connection with the ARC Transmission Agreement;

          (f) Guarantees constituting Indebtedness permitted by Section 7.1;

          (g) Guarantees of obligations that do not constitute Indebtedness, to the
extent guaranteed in the ordinary course of business;

          (h) Investments made by any Borrower or any Subsidiary to or in any other
Borrower or Subsidiary; provided, further, that to the extent any Collateral is
transferred to a Borrower or Subsidiary that is not a party to the Security
Agreement or Intellectual Property Security Agreement, such Person shall (i)
have joined the Security Agreement and the Intellectual Property Security
Agreement, pursuant to agreements in form and substance satisfactory to the
Collateral Agent, and (ii) delivered to the Collateral Agent (aa) UCC financing
statements, amendments and other applicable documents under the laws of the
jurisdictions with respect to the perfection of the Liens granted under such
agreements, as requested by the Collateral Agent in order to perfect such
Liens, duly authorized or executed by such Person, (bb) copies of favorable
UCC, tax, judgment and fixture lien search reports in all necessary or
appropriate jurisdictions and under all legal and trade names of such Person,
indicating that there are no prior Liens on any of the Collateral other than
Permitted Encumbrances, (cc) a Perfection Certificate duly completed and
executed by such Person, (dd) a certificate of the Secretary or Assistant
Secretary of such Person, attaching and certifying copies of its certificate of
incorporation, bylaws and of the resolutions of its boards of directors,
authorizing the execution, delivery and performance of the foregoing documents
to which it is a party and certifying the name, title and true signature of
each officer of such Person executing such documents, (ee) certificates of good
standing or existence, as may be available from the Secretary of State of the
jurisdiction of organization of such Person and each other jurisdiction where
such Person is required to be qualified to do business as a foreign
corporation; and (ff) a favorable written opinion of Alston & Bird, LLP,
counsel to such Person, addressed to the Collateral Agent, the Administrative
Agent and each of the Lenders, and covering such matters relating to such
Person, the foregoing documents and the transactions contemplated thereby as
the Administrative Agent or the Required Lenders shall reasonably request;

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          (i) loans or advances to employees, officers or directors of any Borrower
or any Subsidiary in the ordinary course of business for travel, relocation and
related expenses; provided, however, that the aggregate amount of all such
loans and advances does not exceed $2,500,000 at any time;

          (j) Hedging Obligations permitted by Section 7.9;

          (k) Permitted Acquisitions; and

          (l) Other Investments which in the aggregate do not exceed $50,000,000 at
any time outstanding.

          Section 7.5. Restricted Payments. The Borrowers will not, and will not
permit any Subsidiary to, declare or make, or agree to pay or make, directly or
indirectly, any dividend on any class of its stock, or make any payment on
account of, or set apart assets for a sinking or other analogous fund for, the
purchase, redemption, retirement, defeasance or other acquisition of, any
shares of common stock or Indebtedness subordinated to the Obligations or
Guarantees thereof or any options, warrants, or other rights to purchase such
common stock or such Indebtedness, whether now or hereafter outstanding (each,
a “Restricted Payment”), except for (i) dividends payable by the Parent solely
in shares of any class of its common stock, (ii) Restricted Payments made by
any Borrower or Subsidiary to any other Subsidiary or the Parent or, in the
case of any cash dividend on any class of stock of a Subsidiary, any other
Person, so long as such dividend is paid pro rata to all holders of such
Subsidiary’s Capital Stock and (iii) Restricted Payments made in connection
with Indebtedness subordinated to the obligations to the extent permitted
pursuant to the subordination provisions related thereto.

          Section 7.6. Sale of Assets. The Borrowers will not, and will not permit
any Subsidiary to, convey, sell, lease, assign, transfer or otherwise dispose
of, any of its assets, business or property, whether now owned or hereafter
acquired, or, in the case of any Subsidiary, issue or sell any shares of such
Subsidiary’s common stock to any Person other than to any Borrower or a
Subsidiary Loan Party (or to qualify directors if required by applicable law),
except (a) the sale or other disposition for fair market value of obsolete or
worn out property or other property not necessary for operations disposed of in

the ordinary course of business; (b) the sale of inventory and Permitted
Investments in the ordinary course of business; (c) the sale of assets in any
Fiscal Year in amount not to exceed 10% of the book value of the total assets
of the Borrowers and their Subsidiaries determined as of the last day of the
prior Fiscal Year on a consolidated basis in accordance with GAAP; provided
that at no time shall the amount of tangible assets sold pursuant to this
clause (c) exceed 10% of the total tangible assets of the Borrowers and their
Subsidiaries determined as of the last day of the prior Fiscal Year on a
consolidated basis in accordance with GAAP and (d) the Borrowers and their
Subsidiaries may eliminate or discontinue business lines and segments from time
to time if (A) such action has been approved by the Board of Directors of one
of the Borrowers, and (B) such elimination or discontinuance will not
jeopardize the Borrowers’ ability to perform under any of the Loan Documents.

          Section 7.7. Transactions with Affiliates. The Borrowers will not, and
will not permit any Subsidiary to, sell, lease or otherwise transfer any
property or assets to, or

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purchase, lease or otherwise acquire any property or assets from, or
otherwise engage in any other transactions with, any of its Affiliates, except
(a) in the ordinary course of business at prices and on terms and conditions
not less favorable to such Borrower or such Subsidiary than could be obtained
on an arm’s-length basis from unrelated third parties, (b) transactions between
or among Loan Parties not involving any other Affiliates, (c) any Restricted
Payment permitted by Section 7.5 and (d) transactions with Affiliates described
on Schedule 7.7.

          Section 7.8. Restrictive Agreements. The Borrowers will not, and will not
permit any Subsidiary to, directly or indirectly, enter into, incur or permit
to exist any agreement that prohibits, restricts or imposes any condition upon
(a) the ability of any Borrower or any Subsidiary to create, incur or permit
any Lien upon any of its assets or properties, whether now owned or hereafter
acquired, or (b) the ability of any Subsidiary to pay dividends or other
distributions with respect to its common stock, to make or repay loans or
advances to any Borrower or any other Subsidiary, to Guarantee Indebtedness of
any Borrower or any other Subsidiary or to transfer any of its property or
assets to any Borrower or any Subsidiary of any Borrower; provided, that (i)
the foregoing shall not apply to restrictions or conditions imposed by law or
by this Agreement, any other Loan Document, any ACH Program Document, the ARC
Transmission Agreement, any organizational documents relating to SPVs or any
agreement set forth on Schedule 7.8, (ii) the foregoing shall not apply to
conditions imposed by Hedge Agreements with Lenders limiting creation,
incurrence or permitting Liens unless the obligations under such Hedge
Agreement are secured pari passu, (iii) the foregoing shall not apply to
customary restrictions and conditions contained in agreements relating to the
sale of a Subsidiary pending such sale, provided such restrictions and
conditions apply only to the Subsidiary that is sold and such sale is permitted
hereunder, (iv) clause (a) shall not apply to restrictions or conditions
imposed by any agreement relating to secured Indebtedness permitted by this
Agreement if such restrictions and conditions apply only to the property or
assets securing such Indebtedness and (v) clause (a) shall not apply to
customary provisions in leases restricting the assignment thereof.

          Section 7.9. Hedging Transactions. The Borrowers will not, and will not
permit any Subsidiary to, enter into any Hedging Transaction, other than
Hedging Transactions entered into with any Lender or any Affiliate of a Lender
in the ordinary course of business to hedge or mitigate risks to which any
Borrower or any Subsidiary is exposed in the conduct of its business or the
management of its liabilities. Solely for the avoidance of doubt, each
Borrower acknowledges that a Hedging Transaction entered into for speculative
purposes or of a speculative nature (which shall be deemed to include any
Hedging Transaction under which any Borrower or any of the Subsidiaries is or
may become obliged to make any payment (i) in connection with the purchase by
any third party of any common stock or any Indebtedness or (ii) as a result of
changes in the market value of any common stock or any Indebtedness) is not a
Hedging Transaction entered into in the ordinary course of business to hedge or
mitigate risks.

          Section 7.10. Amendment to Material Documents. The Borrowers will not, and
will not permit any Subsidiary to, amend, modify or waive any of its rights in
a manner materially adverse to the Lenders under its certificate of
incorporation, bylaws or other organizational documents.

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          Section 7.11. Accounting Changes. The Borrowers will not, and will not
permit any Subsidiary to, make any significant change in accounting treatment
or reporting practices, except as required by GAAP, or change the fiscal year
of the Parent or of any Subsidiary, except to change the fiscal year of a
Subsidiary to conform its fiscal year to that of the Parent.

ARTICLE VIII

EVENTS OF DEFAULT

          Section 8.1. Events of Default. If any of the following events (each an
“Event of Default”) shall occur:

          (a) any Borrower shall fail to pay any principal of any Loan or of any
reimbursement obligation in respect of any LC Disbursement when and as the same
shall become due and payable, whether at the due date thereof or at a date
fixed for prepayment or otherwise; or

          (b) any Borrower shall fail to pay any interest on any Loan or any fee or
any other amount (other than an amount payable under clause (a) of this Section
8.1) payable under this Agreement or any other Loan Document, when and as the
same shall become due and payable, and such failure shall continue unremedied
for a period of three (3) Business Days; or

          (c) any representation or warranty made or deemed made by or on behalf of
any Borrower or any Subsidiary in or in connection with this Agreement or any
other Loan Document (including the Schedules attached thereto) and any
amendments or modifications hereof or waivers hereunder, or in any certificate,
report, financial statement or other document submitted to the Administrative
Agent or the Lenders by any Loan Party or any representative of any Loan Party
pursuant to or in connection with this Agreement or any other Loan Document
shall prove to be incorrect in any material respect when made or deemed made or
submitted; or

          (d) any Borrower shall fail to observe or perform any covenant or
agreement contained in Sections 5.1, 5.2, 5.3 (with respect to any Borrower’s
existence) or Articles VI or VII; or

          (e) any Loan Party shall fail to observe or perform any covenant or
agreement contained in this Agreement (other than those referred to in clauses
(a), (b) and (d) above), and such failure shall remain unremedied for 30 days
after the earlier of (i) any executive officer of the Borrower becomes aware of
such failure, or (ii) notice thereof shall have been given to the Parent by
the Administrative Agent or any Lender; or

          (f) the occurrence of a “Level IV Default” under the ACH Master Agreement
#1; or

          (g) any Borrower or any Subsidiary (whether as primary obligor or as
guarantor or other surety) shall fail to pay any principal of or premium or
interest on any Material Indebtedness that is outstanding, when and as the same
shall become due and payable (whether at scheduled maturity, required
prepayment, acceleration, demand or otherwise), and

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such failure shall continue after the applicable grace period, if any,
specified in the agreement or instrument evidencing such Material Indebtedness;
or any other event shall occur or condition shall exist under any agreement or
instrument relating to such Material Indebtedness and shall continue after the
applicable grace period, if any, specified in such agreement or instrument, if
the effect of such event or condition is to accelerate, or permit the
acceleration of, the maturity of such Material Indebtedness; or any such
Material Indebtedness shall be declared to be due and payable; or required to
be prepaid or redeemed (other than by a regularly scheduled required
prepayment or redemption), purchased or defeased, or any offer to prepay,
redeem, purchase or defease such Indebtedness shall be required to be made, in
each case prior to the stated maturity thereof; or

          (h) any Borrower or any Material Subsidiary shall (i) commence a voluntary
case or other proceeding or file any petition seeking liquidation,
reorganization or other relief under any federal, state or foreign bankruptcy,
insolvency or other similar law now or hereafter in effect or seeking the
appointment of a custodian, trustee, receiver, liquidator or other similar
official of it or any substantial part of its property, (ii) consent to the
institution of, or fail to contest in a timely and appropriate manner, any
proceeding or petition described in clause (i) of this Section, (iii) apply for
or consent to the appointment of a custodian, trustee, receiver, liquidator or
other similar official for any such Borrower or any such Subsidiary or for a
substantial part of its assets, (iv) file an answer admitting the material
allegations of a petition filed against it in any such proceeding, (v) make a
general assignment for the benefit of creditors, or (vi) take any action for
the purpose of effecting any of the foregoing; or

          (i) an involuntary proceeding shall be commenced or an involuntary
petition shall be filed seeking (i) liquidation, reorganization or other relief
in respect of any Borrower or any Material Subsidiary or its debts, or any
substantial part of its assets, under any federal, state or foreign
bankruptcy, insolvency or other similar law now or hereafter in effect or (ii)
the appointment of a custodian, trustee, receiver, liquidator or other similar
official for any Borrower or any Material Subsidiary or for a substantial part
of its assets, and in any such case, such proceeding or petition shall remain
undismissed for a period of 60 days or an order or decree approving or
ordering any of the foregoing shall be entered; or

          (j) any Borrower or any Material Subsidiary shall become unable to pay,
shall admit in writing its inability to pay, or shall fail to pay, its debts as
they become due; or

          (k) an ERISA Event shall have occurred that, in the opinion of the
Required Lenders, when taken together with other ERISA Events that have
occurred, could reasonably be expected to result in liability to the Borrowers
and the Subsidiaries in an aggregate amount exceeding $5,000,000; or

          (l) any judgment or order for the payment of money in excess of
$10,000,000 in the aggregate shall be rendered against any Borrower or any
Subsidiary, and either (i) enforcement proceedings shall have been commenced by
any creditor upon such judgment or order or (ii) there shall be a period of 30
consecutive days during which a stay of enforcement of such judgment or order,
by reason of a pending appeal or otherwise, shall not be in effect; or

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          (m) any non-monetary judgment or order shall be rendered against any
Borrower or any Subsidiary that could reasonably be expected to have a Material
Adverse Effect, and there shall be a period of 30 consecutive days during
which a stay of enforcement of such judgment or order, by reason of a pending
appeal or otherwise, shall not be in effect; or

          (n) a Change in Control shall occur or exist; or

          (o) an Event of Default under any other Loan Document shall occur (and any
applicable cure period has expired); or

          (p) any material provision of any Subsidiary Guaranty Agreement shall for
any reason cease to be valid and binding on, or enforceable against, any
Subsidiary Loan Party, or any Subsidiary Loan Party shall so state in writing,
or any Subsidiary Loan Party shall seek to terminate its Subsidiary Guaranty
Agreement;

then, and in every such event (other than an event with respect to any Borrower
described in clause (h) or (i) of this Section) and at any time thereafter
during the continuance of such event, the Administrative Agent may, and upon
the written request of the Required Lenders shall, by notice to the Parent,
take any or all of the following actions, at the same or different times: (i)
terminate the Commitments, whereupon the Commitment of each Lender shall
terminate immediately; (ii) declare the principal of and any accrued interest
on the Loans, and all other Obligations owing hereunder, to be, whereupon the
same shall become due and payable immediately, without presentment, demand,
protest or other notice of any kind, all of which are hereby waived by each
Borrower, (iii) exercise all remedies contained in any other Loan Document and
(iv) exercise any other remedies available at law or in equity; and that, if
an Event of Default specified in either clause (h) or (i) shall occur, the
Commitments shall automatically terminate and the principal of the Loans then
outstanding, together with accrued interest thereon, and all fees, and all
other Obligations shall automatically become due and payable, without
presentment, demand, protest or other notice of any kind, all of which are
hereby waived by each Borrower.

ARTICLE IX

THE ADMINISTRATIVE AGENT

          Section 9.1. Appointment of Administrative Agent. (a) Each Lender
irrevocably appoints SunTrust Bank as the Administrative Agent and authorizes
it to take such actions on its behalf and to exercise such powers as are
delegated to the Administrative Agent under this Agreement and the other Loan
Documents, together with all such actions and powers that are reasonably
incidental thereto. The Administrative Agent may perform any of its duties
hereunder or under the other Loan Documents by or through any one or more
sub-agents or attorneys-in-fact appointed by the Administrative Agent. The
Administrative Agent and any such sub-agent or attorney-in-fact may perform any
and all of its duties and exercise its rights and powers through their
respective Related Parties. The exculpatory provisions set forth in this
Article shall apply to any such sub-agent or attorney-in-fact and the Related
Parties of the Administrative Agent, any such sub-agent and any such
attorney-in-fact and shall apply to their

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respective activities in connection with the syndication of the credit
facilities provided for herein as well as activities as Administrative Agent.

          (b) The Issuing Bank shall act on behalf of the Lenders with respect to
any Letters of Credit issued by it and the documents associated therewith until
such time and except for so long as the Administrative Agent may agree at the
request of the Required Lenders to act for the Issuing Bank with respect
thereto; provided, that the Issuing Bank shall have all the benefits and
immunities (i) provided to the Administrative Agent in this Article IX with
respect to any acts taken or omissions suffered by the Issuing Bank in
connection with Letters of Credit issued by it or proposed to be issued by it
and the application and agreements for letters of credit pertaining to the
Letters of Credit as fully as if the term “Administrative Agent” as used in
this Article IX included the Issuing Bank with respect to such acts or
omissions and (ii) as additionally provided in this Agreement with respect to
the Issuing Bank.

          Section 9.2. Nature of Duties of Administrative Agent. The Administrative
Agent shall not have any duties or obligations except those expressly set forth
in this Agreement and the other Loan Documents. Without limiting the generality
of the foregoing, (a) the Administrative Agent shall not be subject to any
fiduciary or other implied duties, regardless of whether a Default or an Event
of Default has occurred and is continuing, (b) the Administrative Agent shall
not have any duty to take any discretionary action or exercise any
discretionary powers, except those discretionary rights and powers expressly
contemplated by the Loan Documents that the Administrative Agent is required to
exercise in writing by the Required Lenders (or such other number or percentage
of the Lenders as shall be necessary under the circumstances as provided in
Section 10.2), and (c) except as expressly set forth in the Loan Documents, the
Administrative Agent shall not have any duty to disclose, and shall not be
liable for the failure to disclose, any information relating to any Borrower or
any of its Subsidiaries that is communicated to or obtained by the
Administrative Agent or any of its Affiliates in any capacity. The
Administrative Agent shall not be liable for any action taken or not taken by
it, its sub-agents or attorneys-in-fact with the consent or at the request of
the Required Lenders (or such other number or percentage of the Lenders as
shall be necessary under the circumstances as provided in Section 10.2) or in
the absence of its own gross negligence or willful misconduct. The
Administrative Agent shall not be responsible for the negligence or misconduct
of any sub-agents or attorneys-in-fact selected by it with reasonable care.
The Administrative Agent shall not be deemed to have knowledge of any Default
or Event of Default unless and until written notice thereof (which notice shall
include an express reference to such event being a “Default” or “Event of
Default” hereunder) is given to the Administrative Agent by the Parent or any
Lender, and the Administrative Agent shall not be responsible for or have any
duty to ascertain or inquire into (i) any statement, warranty or representation
made in or in connection with any Loan Document, (ii) the contents of any
certificate, report or other document delivered hereunder or thereunder or in
connection herewith or therewith, (iii) the performance or observance of any of
the covenants, agreements, or other terms and conditions set forth in any Loan
Document, (iv) the validity, enforceability, effectiveness or genuineness of
any Loan Document or any other agreement, instrument or document, or (v) the
satisfaction of any condition set forth in Article III or elsewhere in any
Loan Document, other than to confirm receipt of items expressly required to be
delivered to the Administrative Agent. The Administrative Agent may consult
with legal counsel (including counsel for the Parent) concerning all matters
pertaining to such duties.

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          Section 9.3. Lack of Reliance on the Administrative Agent. Each of the
Lenders, the Swingline Lender and the Issuing Bank acknowledges that it has,
independently and without reliance upon the Administrative Agent or any other
Lender and based on such documents and information as it has deemed
appropriate, made its own credit analysis and decision to enter into this
Agreement. Each of the Lenders, the Swingline Lender and the Issuing Bank also
acknowledges that it will, independently and without reliance upon the
Administrative Agent or any other Lender and based on such documents and
information as it has deemed appropriate, continue to make its own decisions in
taking or not taking of any action under or based on this Agreement, any
related agreement or any document furnished hereunder or thereunder.

          Section 9.4. Certain Rights of the Administrative Agent. If the
Administrative Agent shall request instructions from the Required Lenders with
respect to any action or actions (including the failure to act) in connection
with this Agreement, the Administrative Agent shall be entitled to refrain from
such act or taking such act, unless and until it shall have received
instructions from such Lenders; and the Administrative Agent shall not incur
liability to any Person by reason of so refraining. Without limiting the
foregoing, no Lender shall have any right of action whatsoever against the
Administrative Agent as a result of the Administrative Agent acting or
refraining from acting hereunder in accordance with the instructions of the
Required Lenders where required by the terms of this Agreement.

          Section 9.5. Reliance by Administrative Agent. The Administrative Agent
shall be entitled to rely upon, and shall not incur any liability for relying
upon, any notice, request, certificate, consent, statement, instrument,
document or other writing believed by it to be genuine and to have been signed,
sent or made by the proper Person. The Administrative Agent may also rely upon
any statement made to it orally or by telephone and believed by it to be made
by the proper Person and shall not incur any liability for relying thereon. The
Administrative Agent may consult with legal counsel (including counsel for the
Parent), independent public accountants and other experts selected by it and
shall not be liable for any action taken or not taken by it in accordance with
the advice of such counsel, accountants or experts.

          Section 9.6. The Administrative Agent in its Individual Capacity. The
bank serving as the Administrative Agent shall have the same rights and powers
under this Agreement and any other Loan Document in its capacity as a Lender as
any other Lender and may exercise or refrain from exercising the same as though
it were not the Administrative Agent; and the terms “Lenders”, “Required
Lenders”, “holders of Notes”, or any similar terms shall, unless the context
clearly otherwise indicates, include the Administrative Agent in its individual
capacity. The bank acting as the Administrative Agent and its Affiliates may
accept deposits from, lend money to, and generally engage in any kind of
business with any Borrower or any Subsidiary or Affiliate of any Borrower as if
it were not the Administrative Agent hereunder.

          Section 9.7. Successor Administrative Agent.

          (a) The Administrative Agent may resign at any time by giving notice
thereof to the Lenders and the Parent. Upon any such resignation, the Required
Lenders shall have the right to appoint a successor Administrative Agent,
subject to the approval by the Parent provided that no Default or Event of
Default shall exist at such time. If no successor Administrative

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Agent shall have been so appointed, and shall have accepted such
appointment within 30 days after the retiring Administrative Agent gives notice
of resignation, then the retiring Administrative Agent may, on behalf of the
Lenders and the Issuing Bank, appoint a successor Administrative Agent, which
shall be a commercial bank organized under the laws of the United States of
America or any state thereof or a bank which maintains an office in the United
States, having a combined capital and surplus of at least $500,000,000.

          (b) Upon the acceptance of its appointment as the Administrative Agent
hereunder by a successor, such successor Administrative Agent shall thereupon
succeed to and become vested with all the rights, powers, privileges and duties
of the retiring Administrative Agent, and the retiring Administrative Agent
shall be discharged from its duties and obligations under this Agreement and
the other Loan Documents. If within 45 days after written notice is given of
the retiring Administrative Agent’s resignation under this Section 9.7 no
successor Administrative Agent shall have been appointed and shall have
accepted such appointment, then on such 45th day (i) the retiring
Administrative Agent’s resignation shall become effective, (ii) the retiring
Administrative Agent shall thereupon be discharged from its duties and
obligations under the Loan Documents and (iii) the Required Lenders shall
thereafter perform all duties of the retiring Administrative Agent under the
Loan Documents until such time as the Required Lenders appoint a successor
Administrative Agent as provided above. After any retiring Administrative
Agent’s resignation hereunder, the provisions of this Article IX shall continue
in effect for the benefit of such retiring Administrative Agent and its
representatives and agents in respect of any actions taken or not taken by any
of them while it was serving as the Administrative Agent.

          Section 9.8. Authorization to Execute other Loan Documents. Each Lender
hereby authorizes the Administrative Agent to execute on behalf of all Lenders
all Loan Documents other than this Agreement.

          Section 9.9. Syndication Agent; Documentation Agents. Each Lender hereby
appoints Bank of America, N.A. as the Syndication Agent and each of KeyBank
National Association, US Bank and BNP Paribas as a Documentation Agent, and
hereby acknowledges and agrees that the Syndication Agent and Documentation
Agents shall have no duties or responsibilities hereunder in its capacity as
such.

ARTICLE X

MISCELLANEOUS

          Section 10.1. Notices.

          (a) Except in the case of notices and other communications expressly
permitted to be given by telephone, all notices and other communications to any
party herein to be effective shall be in writing and shall be delivered by hand
or overnight courier service, mailed by certified or registered mail or sent by
telecopy, as follows:

	 	 	 
	To the Borrowers:

	 	CheckFree Corporation

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	 	4411 East Jones Bridge Road
	

	 	Norcross, Georgia 30093
	

	 	Attention: Treasurer
	

	 	Telecopy Number: (678) 375-2627
	 
	 	 
	With a copy to:

	 	CheckFree Corporation
	

	 	4411 E. Jones Bridge Rd
	

	 	Norcross, GA 30092
	

	 	Attention: General Counsel
	

	 	Fax: (678) 375-3235
	 
	 	 
	To the Administrative Agent:

	 	SunTrust Bank
	 

	 	303 Peachtree Street, N. E., 3rd Floor
	

	 	Atlanta, Georgia 30308
	

	 	Attention: Brian Peters, Managing Director
	

	 	Telecopy Number: (404) 827-6118
	 
	 	 
	With a copy to:

	 	SunTrust Bank Agency Services
	

	 	303 Peachtree Street, N. E./25th Floor
	

	 	Atlanta, Georgia 30308
	

	 	Attention: Doris Folsom
	

	 	Telecopy Number: (404) 658-4906
	 
	 	 
	

	 	and
	 
	 	 
	

	 	King & Spalding LLP
	

	 	191 Peachtree St., NE
	

	 	Atlanta, GA 30303
	

	 	Attention: Carolyn Z. Alford
	

	 	Telecopy Number: (404) 572-5100
	 
	 	 
	To the Issuing Bank:

	 	SunTrust Bank
	

	 	25 Park Place, N. E./Mail Code 3706
	

	 	Atlanta, Georgia 30303
	

	 	Attention: Jon Conley
	

	 	Telecopy Number: (404) 588-8129
	 
	 	 
	To the Swingline Lender:

	 	SunTrust Bank
	

	 	Agency Services
	

	 	303 Peachtree Street, N.E./25th Floor
	

	 	Atlanta, Georgia 30308
	

	 	Attention: Ms. Doris Folsom
	

	 	Telecopy Number: (404) 658-4906
	 
	 	 
	To any other Lender:

	 	the address set forth in the Administrative
	

	 	Questionnaire

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Any party hereto may change its address or telecopy number for notices and
other communications hereunder by notice to the other parties hereto. All such
notices and other communications shall, when transmitted by overnight delivery,
or faxed, be effective when delivered for overnight (next-day) delivery, or
transmitted in legible form by facsimile machine, respectively, or if mailed,
upon the third Business Day after the date deposited into the mail or if
delivered, upon delivery; provided, that notices delivered to the
Administrative Agent, the Issuing Bank or the Swingline Bank shall not be
effective until actually received by such Person at its address specified in
this Section 10.1.

          (b) Any agreement of the Administrative Agent and the Lenders herein to
receive certain notices by telephone or facsimile is solely for the convenience
and at the request of the Parent. The Administrative Agent and the Lenders
shall be entitled to rely on the authority of any Person purporting to be a
Person authorized by the Parent to give such notice and the Administrative
Agent and Lenders shall not have any liability to any Borrower or other Person
on account of any action taken or not taken by the Administrative Agent or the
Lenders in reliance upon such telephonic or facsimile notice. The obligation
of each Borrower to repay the Loans and all other Obligations hereunder shall
not be affected in any way or to any extent by any failure of the
Administrative Agent and the Lenders to receive written confirmation of any
telephonic or facsimile notice or the receipt by the Administrative Agent and
the Lenders of a confirmation which is at variance with the terms understood by
the Administrative Agent and the Lenders to be contained in any such telephonic
or facsimile notice.

          Section 10.2. Waiver; Amendments.

          (a) No failure or delay by the Administrative Agent, the Issuing Bank or
any Lender in exercising any right or power hereunder or any other Loan
Document, and no course of dealing between any Borrower and the Administrative
Agent or any Lender, shall operate as a waiver thereof, nor shall any single or
partial exercise of any such right or power or any abandonment or
discontinuance of steps to enforce such right or power, preclude any other or
further exercise thereof or the exercise of any other right or power hereunder
or thereunder. The rights and remedies of the Administrative Agent, the
Issuing Bank and the Lenders hereunder and under the other Loan Documents are
cumulative and are not exclusive of any rights or remedies provided by law. No
waiver of any provision of this Agreement or any other Loan Document or consent
to any departure by any Borrower therefrom shall in any event be effective
unless the same shall be permitted by paragraph (b) of this Section, and then
such waiver or consent shall be effective only in the specific instance and for
the purpose for which given. Without limiting the generality of the foregoing,
the making of a Loan or the issuance of a Letter of Credit shall not be
construed as a waiver of any Default or Event of Default, regardless of whether
the Administrative Agent, any Lender or the Issuing Bank may have had notice or
knowledge of such Default or Event of Default at the time.

          (b) No amendment or waiver of any provision of this Agreement or the other
Loan Documents, nor consent to any departure by any Borrower therefrom, shall
in any event be effective unless the same shall be in writing and signed by
each Borrower and the Required Lenders or each Borrower and the Administrative
Agent with the consent of the Required Lenders and then such waiver or consent
shall be effective only in the specific instance and for the specific purpose
for which given; provided, that no amendment or waiver shall: (i) increase

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the Commitment of any Lender without the written consent of such Lender,
(ii) reduce the principal amount of any Loan or LC Disbursement or reduce the
rate of interest thereon, or reduce any fees payable hereunder, without the
written consent of each Lender affected thereby, (iii) postpone the date fixed
for any payment of any principal of, or interest on, any Loan or LC
Disbursement or interest thereon or any fees hereunder or reduce the amount of,
waive or excuse any such payment, or postpone the scheduled date for the
termination or reduction of any Commitment, without the written consent of each
Lender affected thereby, (iv) change Section 2.20 (b) or (c) in a manner that
would alter the pro rata sharing of payments required thereby, without the
written consent of each Lender, (v) change any of the provisions of this
Section or the definition of “Required Lenders” or any other provision hereof
specifying the number or percentage of Lenders which are required to waive,
amend or modify any rights hereunder or make any determination or grant any
consent hereunder, without the consent of each Lender; (vi) except as provided
in Section 5.10(d), release any guarantor or limit the liability of any such
guarantor under any guaranty agreement, without the written consent of each
Lender; or (vii) release all or substantially all collateral (if any) securing
any of the Obligations or agree to subordinate any Lien in such collateral to
any other creditor of any Borrower or any Subsidiary, without the written
consent of each Lender; provided further, that no such agreement shall amend,
modify or otherwise affect the rights, duties or obligations of the
Administrative Agent, the Swingline Bank or the Issuing Bank without the prior
written consent of such Person. Notwithstanding the foregoing, any provision
of this Agreement may be amended by an agreement in writing entered into by
each Borrower, the Required Lenders and the Administrative Agent (and, if their
rights, duties or obligations are affected thereby, the Issuing Bank and the
Swingline Lender) if (i) by the terms of such agreement the Commitment of each
Lender not consenting to the amendment provided for therein shall terminate
(but such Lender shall continue to be entitled to the benefits of Sections
2.17, 2.18, and 2.19 and 10.3) upon the effectiveness of such amendment and
(ii) at the time such amendment becomes effective, each Lender not consenting
thereto receives payment in full principal of and interest accrued on each Loan
made by it and all other amounts owing to it or accrued for its account under
this Agreement and is released from its obligations hereunder.

          Section 10.3. Expenses; Indemnification.

          (a) Each Borrower shall jointly and severally pay (i) all reasonable,
out-of-pocket costs and expenses of the Administrative Agent and its
Affiliates, including the reasonable fees, charges and disbursements of outside
counsel for the Administrative Agent and its Affiliates, in connection with the
syndication of the credit facilities provided for herein, the preparation and
administration of the Loan Documents and any amendments, modifications or
waivers thereof (whether or not the transactions contemplated in this Agreement
or any other Loan Document shall be consummated), (ii) all reasonable
out-of-pocket expenses incurred by the Issuing Bank in connection with the
issuance, amendment, renewal or extension of any Letter of Credit or any demand
for payment thereunder and (iii) all out-of-pocket costs and expenses
(including, without limitation, the reasonable fees, charges and disbursements
of outside counsel) incurred by the Administrative Agent, the Issuing Bank or
any Lender in connection with the enforcement or protection of its rights in
connection with this Agreement, including its rights under this Section, or in
connection with the Loans made or any Letters of Credit issued hereunder.

72

 

          (b) Each Borrower shall indemnify the Administrative Agent (and any
sub-agent thereof), each Lender and the Issuing Bank, and each Related Party of
any of the foregoing Persons (each such Person being called an “Indemnitee”)
against, and hold each Indemnitee harmless from, any and all losses, claims,
damages, liabilities and related expenses (including the fees, charges and
disbursements of any counsel for any Indemnitee), and shall indemnify and hold
harmless each Indemnitee from all fees, time charges and disbursements for
attorneys who may be employees of any Indemnitee, incurred by any Indemnitee or
asserted against any Indemnitee by any third party, any Borrower or any other
Loan Party arising out of, in connection with, or as a result of (i) the
execution or delivery of this Agreement, any other Loan Document or any
agreement or instrument contemplated hereby or thereby, the performance by the
parties hereto of their respective obligations hereunder or thereunder or the
consummation of the transactions contemplated hereby or thereby, (ii) any Loan
or Letter of Credit or the use or proposed use of the proceeds therefrom
(including any refusal by the Issuing Bank to honor a demand for payment under
a Letter of Credit if the documents presented in connection with such demand do
not strictly comply with the terms of such Letter of Credit), (iii) any actual
or alleged presence or Release of Hazardous Materials on or from any property
owned or operated by any Borrower or any of its Subsidiaries, or any
Environmental Liability related in any way to any Borrower or any of its
Subsidiaries, or (iv) any actual or prospective claim, litigation,
investigation or proceeding relating to any of the foregoing, whether based on
contract, tort or any other theory, whether brought by any third party, any
Borrower or any other Loan Party, and regardless of whether any Indemnitee is a
party thereto, provided that such indemnity shall not, as to any Indemnitee, be
available to the extent that such losses, claims, damages, liabilities or
related expenses (x) are determined by a court of competent jurisdiction by
final and nonappealable judgment to have resulted from the gross negligence or
willful misconduct of such Indemnitee or (y) result from a claim brought by any
Borrower or any other Loan Party against an Indemnitee for breach in bad faith
of such Indemnitee’s obligations hereunder or under any other Loan Document, if
any Borrower or such Loan Party has obtained a final and nonappealable judgment
in its favor on such claim as determined by a court of competent jurisdiction.

          (c) Each Borrower shall pay, and hold the Administrative Agent and each of
the Lenders harmless from and against, any and all present and future stamp,
documentary, and other similar taxes with respect to this Agreement and any
other Loan Documents, any collateral described therein, or any payments due
thereunder, and save the Administrative Agent and each Lender harmless from and
against any and all liabilities with respect to or resulting from any delay or
omission to pay such taxes.

          (d) To the extent that the Borrowers fail to pay any amount required to be
paid to the Administrative Agent, the Issuing Bank or the Swingline Lender
under clauses (a), (b) or (c) hereof, each Lender severally agrees to pay to
the Administrative Agent, the Issuing Bank or the Swingline Lender, as the case
may be, such Lender’s Pro Rata Share (determined as of the time that the
unreimbursed expense or indemnity payment is sought) of such unpaid amount;
provided, that the unreimbursed expense or indemnified payment, claim, damage,
liability or related expense, as the case may be, was incurred by or asserted
against the Administrative Agent, the Issuing Bank or the Swingline Lender in
its capacity as such.

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          (e) To the extent permitted by applicable law, no Borrower shall assert,
and each Borrower hereby waives, any claim against any Indemnitee, on any
theory of liability, for special, indirect, consequential or punitive damages
(as opposed to actual or direct damages) arising out of, in connection with or
as a result of, this Agreement or any agreement or instrument contemplated
hereby, the transactions contemplated therein, any Loan or any Letter of Credit
or the use of proceeds thereof.

          (f) All amounts due under this Section shall be payable promptly after
written demand therefor.

          Section 10.4. Successors and Assigns.

          (a) The provisions of this Agreement shall be binding upon and inure to
the benefit of the parties hereto and their respective successors and assigns
permitted hereby, except that no Borrower may assign or otherwise transfer any
of its rights or obligations hereunder without the prior written consent of
each Lender (and any attempted assignment or transfer by any Borrower without
such consent shall be null and void). Nothing in this Agreement, expressed or
implied, shall be construed to confer upon any Person (other than the parties
hereto, their respective successors and assigns permitted hereby and, to the
extent expressly contemplated hereby, the Related Parties of each of the
Administrative Agent and the Lenders) any legal or equitable right, remedy or
claim under or by reason of this Agreement.

          (b) Any Lender may assign to one or more Eligible Assignees all or a
portion of its rights and obligations under this Agreement (including all or a
portion of its Commitment and the Loans at the time owing to it); provided that
(i) except in the case of an assignment of the entire remaining amount of the
assigning Lender’s Commitment and the Loans at the time owing to it or in the
case of an assignment to a Lender, an Affiliate of a Lender or an Approved Fund
with respect to a Lender, the aggregate amount of the Commitment (which for
this purpose includes Loans outstanding thereunder) of the assigning Lender
subject to each such assignment (determined as of the date the Assignment and
Acceptance with respect to such assignment is delivered to the Administrative
Agent) shall not be less than $5,000,000, in the case of any assignment of a
Revolving Commitment, unless each of the Administrative Agent and, so long as
no Event of Default has occurred and is continuing, the Parent otherwise
consents (each such consent not to be unreasonably withheld or delayed), (ii)
each partial assignment shall be made as an assignment of a proportionate part
of all the assigning Lender’s rights and obligations under this Agreement with
respect to the Loan or the Commitment assigned, except that this clause (ii)
shall not prohibit any Lender from assigning all or a portion of its rights and
obligations among separate Commitments on a non-pro rata basis, and (iii) the
parties to each assignment shall execute and deliver to the Administrative
Agent an Assignment and Acceptance, together with a processing and recordation
fee of $1,000, and the Eligible Assignee, if it shall not be a Lender, shall
deliver to the Administrative Agent an Administrative Questionnaire. Upon (i)
the execution and delivery of the Assignment and Acceptance by the assigning
Lender and assignee Lender, (ii) acceptance and recording thereof by the
Administrative Agent pursuant to paragraph (c) of this Section, (iii) consent
thereof from the Parent to the extent required pursuant to this clause (b) and
(iv) if such assignee Lender is a Foreign Lender, compliance by such Person
with Section 2.19(e), from and after the effective date specified in each
Assignment and Acceptance, the Eligible Assignee thereunder shall be a party
hereto and, to the extent of the interest assigned

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by such Assignment and Acceptance, have the rights and obligations of a
Lender under this Agreement, and the assigning Lender thereunder shall, to the
extent of the interest assigned by such Assignment and Acceptance, be released
from its obligations under this Agreement (and, in the case of an Assignment
and Acceptance covering all of the assigning Lender’s rights and obligations
under this Agreement, such Lender shall cease to be a party hereto but shall
continue to be entitled to the benefits of Sections 2.17, 2.18, 2.19 and 10.3.
Any assignment or transfer by a Lender of rights or obligations under this
Agreement that does not comply with this paragraph shall be treated for
purposes of this Agreement as a sale by such Lender of a participation in such
rights and obligations in accordance with paragraph (d) of this Section.

          (c) The Administrative Agent, acting solely for this purpose as an agent
of the Parent, shall maintain at one of its offices in Atlanta, Georgia a copy
of each Assignment and Acceptance delivered to it and a register for the
recordation of the names and addresses of the Lenders, and the Commitments of,
and principal amount of the Loans owing to, each Lender pursuant to the terms
hereof from time to time (the “Register”). The entries in the Register shall
be conclusive, and each Borrower, the Administrative Agent and the Lenders may
treat each Person whose name is recorded in the Register pursuant to the terms
hereof as a Lender hereunder for all purposes of this Agreement,
notwithstanding notice to the contrary. The Register shall be available for
inspection by any Borrower and any Lender, at any reasonable time and from time
to time upon reasonable prior notice.

          (d) Any Lender may, without the consent of, or notice to, the Borrowers,
the Administrative Agent, the Swingline Bank or the Issuing Bank sell
participations to one or more banks or other entities (a “Participant”) in all
or a portion of such Lender’s rights and/or obligations under this Agreement
(including all or a portion of its Commitment and/or the Loans owing to it);
provided that (i) such Lender’s obligations under this Agreement shall remain
unchanged, (ii) such Lender shall remain solely responsible to the other
parties hereto for the performance of such obligations and (iii) each Borrower,
the Administrative Agent, the Swingline Bank, the Issuing Bank and the other
Lenders shall continue to deal solely and directly with such Lender in
connection with such Lender’s rights and obligations under this Agreement. Any
agreement or instrument pursuant to which a Lender sells such a participation
shall provide that such Lender shall retain the sole right to enforce this
Agreement and to approve any amendment, modification or waiver of any provision
of this Agreement; provided that such agreement or instrument may provide that
such Lender will not, without the consent of the Participant, agree to any
amendment, modification or waiver with respect to the following to the extent
affecting such Participant: (i) increase the Commitment of any Lender without
the written consent of such Lender, (ii) reduce the principal amount of any
Loan or LC Disbursement or reduce the rate of interest thereon, or reduce any
fees payable hereunder, without the written consent of each Lender affected
thereby, (iii) postpone the date fixed for any payment of any principal of, or
interest on, any Loan or LC Disbursement or interest thereon or any fees
hereunder or reduce the amount of, waive or excuse any such payment, or
postpone the scheduled date for the termination or reduction of any Commitment,
without the written consent of each Lender affected thereby, (iv) change
Section 2.20(b) or (c) in a manner that would alter the pro rata sharing of
payments required thereby, without the written consent of each Lender, (v)
change any of the provisions of this Section or the definition of “Required
Lenders” or any other provision hereof specifying the number or percentage of
Lenders which are required to waive, amend or modify any rights hereunder or
make any determination or grant any consent

75

 

hereunder, without the consent of each Lender; (vi) except as provided in
Section 5.10(d), release any guarantor or limit the liability of any such
guarantor under any guaranty agreement without the written consent of each
Lender except to the extent such release is expressly provided under the terms
of the Guaranty Agreement; or (vii) release all or substantially all collateral
(if any) securing any of the Obligations. Subject to paragraph (e) of this
Section, each Borrower agrees that each Participant shall be entitled to the
benefits of Sections 2.17, 2.18, and 2.19 to the same extent as if it were a
Lender and had acquired its interest by assignment pursuant to paragraph (b) of
this Section. To the extent permitted by law, each Participant also shall be
entitled to the benefits of Section 10.7 as though it were a Lender, provided
such Participant agrees to be subject to Section 10.7 as though it were a
Lender.

          (e) A Participant shall not be entitled to receive any greater payment
under Section 2.17 and Section 2.19 than the applicable Lender would have been
entitled to receive with respect to the participation sold to such Participant,
unless the sale of the participation to such Participant is made with the
Parent’s prior written consent. A Participant that would be a Foreign Lender
if it were a Lender shall not be entitled to the benefits of Section 2.19
unless the Parent is notified of the participation sold to such Participant and
such Participant agrees, for the benefit of the Borrowers, to comply with
Section 2.19(e) as though it were a Lender.

          (f) Any Lender may at any time pledge or assign a security interest in all
or any portion of its rights under this Agreement to secure obligations of such
Lender, including without limitation any pledge or assignment to secure
obligations to a Federal Reserve Bank; provided that no such pledge or
assignment of a security interest shall release a Lender from any of its
obligations hereunder or substitute any such pledgee or assignee for such
Lender as a party hereto.

          Section 10.5. Governing Law; Jurisdiction; Consent to Service of Process.

          (a) This Agreement and the other Loan Documents shall be construed in
accordance with and be governed by the law (without giving effect to the
conflict of law principles thereof) of the State of Georgia.

          (b) Each Borrower hereby irrevocably and unconditionally submits, for
itself and its property, to the non-exclusive jurisdiction of the United States
District Court of the Northern District of Georgia, and of any state court of
the State of Georgia located in Fulton County and any appellate court from any
thereof, in any action or proceeding arising out of or relating to this
Agreement or any other Loan Document or the transactions contemplated hereby or
thereby, or for recognition or enforcement of any judgment, and each of the
parties hereto hereby irrevocably and unconditionally agrees that all claims in
respect of any such action or proceeding may be heard and determined in such
Georgia state court or, to the extent permitted by applicable law, such Federal
court. Each of the parties hereto agrees that a final judgment in
any such action or proceeding shall be conclusive and may be enforced in
other jurisdictions by suit on the judgment or in any other manner provided by
law. Nothing in this Agreement or any other Loan Document shall affect any
right that the Administrative Agent, the Issuing Bank or any Lender may
otherwise have to bring any action or proceeding relating to this Agreement
or any other Loan Document against any Borrower or its properties in the courts
of any jurisdiction.

76

 

          (c) Each Borrower irrevocably and unconditionally waives any objection
which it may now or hereafter have to the laying of venue of any such suit,
action or proceeding described in paragraph (b) of this Section and brought in
any court referred to in paragraph (b) of this Section. Each of the parties
hereto irrevocably waives, to the fullest extent permitted by applicable law,
the defense of an inconvenient forum to the maintenance of such action or
proceeding in any such court.

          (d) Each party to this Agreement irrevocably consents to the service of
process in the manner provided for notices in Section 10.1. Nothing in this
Agreement or in any other Loan Document will affect the right of any party
hereto to serve process in any other manner permitted by law.

          Section 10.6. WAIVER OF JURY TRIAL. EACH PARTY HERETO IRREVOCABLY WAIVES,
TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A
TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF
THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH
PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY
OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY
WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER,
AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO
ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS,
THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

          Section 10.7. Right of Setoff. In addition to any rights now or hereafter
granted under applicable law and not by way of limitation of any such rights,
each Lender and the Issuing Bank shall have the right, at any time or from time
to time upon the occurrence and during the continuance of an Event of Default,
without prior notice to the Parent, any such notice being expressly waived by
the Parent to the extent permitted by applicable law, to set off and apply
against all deposits (general or special, time or demand, provisional or final)
of any Borrower at any time held or other obligations at any time owing by such
Lender and the Issuing Bank to or for the credit or the account of any Borrower
against any and all Obligations held by such Lender or the Issuing Bank, as the
case may be, irrespective of whether such Lender or the Issuing Bank shall have
made demand hereunder and although such Obligations may be unmatured. Each
Lender and the Issuing Bank agree promptly to notify the Administrative Agent
and the Parent after any such set-off and any application made by such Lender
and the Issuing Bank, as the case may be; provided, that the failure to give
such notice shall not affect the validity of such set-off and application.

          Section 10.8. Counterparts; Integration. This Agreement may be executed
by one or more of the parties to this Agreement on any number of separate
counterparts (including by telecopy), and all of said counterparts taken
together shall be deemed to constitute one and the same instrument. This
Agreement, the other Loan Documents, and any separate letter agreement(s)
relating to any fees payable to the Administrative Agent constitute the entire

77

 

agreement among the parties hereto and thereto regarding the subject matters
hereof and thereof and supersede all prior agreements and understandings, oral
or written, regarding such subject matters.

          Section 10.9. Survival. All covenants, agreements, representations and
warranties made by each Borrower herein and in the certificates or other
instruments delivered in connection with or pursuant to this Agreement shall be
considered to have been relied upon by the other parties hereto and shall
survive the execution and delivery of this Agreement and the making of any
Loans and issuance of any Letters of Credit, regardless of any investigation
made by any such other party or on its behalf and notwithstanding that the
Administrative Agent, the Issuing Bank or any Lender may have had notice or
knowledge of any Default or incorrect representation or warranty at the time
any credit is extended hereunder, and shall continue in full force and effect
as long as the principal of or any accrued interest on any Loan or any fee or
any other amount payable under this Agreement is outstanding and unpaid or any
Letter of Credit is outstanding and so long as the Commitments have not expired
or terminated. The provisions of Sections 2.17, 2.18, 2.19, and 10.3 and
Article IX shall survive and remain in full force and effect regardless of the
consummation of the transactions contemplated hereby, the repayment of the
Loans, the expiration or termination of the Letters of Credit and the
Commitments or the termination of this Agreement or any provision hereof. All
representations and warranties made herein, in the certificates, reports,
notices, and other documents delivered pursuant to this Agreement shall survive
the execution and delivery of this Agreement and the other Loan Documents, and
the making of the Loans and the issuance of the Letters of Credit.

          Section 10.10. Severability. Any provision of this Agreement or any other
Loan Document held to be illegal, invalid or unenforceable in any jurisdiction,
shall, as to such jurisdiction, be ineffective to the extent of such
illegality, invalidity or unenforceability without affecting the legality,
validity or enforceability of the remaining provisions hereof or thereof; and
the illegality, invalidity or unenforceability of a particular provision in a
particular jurisdiction shall not invalidate or render unenforceable such
provision in any other jurisdiction.

          Section 10.11. Confidentiality. Each of the Administrative Agent, the
Issuing Bank and each Lender agrees to take normal and reasonable precautions
to maintain the confidentiality of any information designated in writing as
confidential and provided to it by any Borrower or any Subsidiary, except that
such information may be disclosed (i) to any Related Party of the
Administrative Agent, the Issuing Bank or any such Lender, including without
limitation accountants, legal counsel and other advisors, so long as such
information remains confidential, (ii) to the extent required by applicable
laws or regulations or by any subpoena or similar legal process, (iii) to the
extent requested by any regulatory agency or authority, (iv) to the extent
that such information becomes publicly available other than as a result of a
breach of this Section, or which becomes available to the Administrative Agent, the Issuing Bank, any Lender or any Related Party of
any of the foregoing on a non-confidential basis from a source other than any
Borrower, (v) in connection with the exercise of any remedy hereunder or any
suit, action or proceeding relating to this Agreement or the enforcement of
rights hereunder, and (vi) subject to provisions substantially similar to this
Section 10.11, to any actual or prospective assignee or Participant or to any
prospective contractual counterparty (or its advisor) to any securitization,
hedge or other derivative transaction, or (vii) with the consent of the Parent.
Any Person required to maintain the confidentiality of any information as
provided for in this Section

78

 

shall be considered to have complied with its
obligation to do so if such Person has exercised the same degree of care to
maintain the confidentiality of such information as such Person would accord
its own confidential information.

          Section 10.12. Interest Rate Limitation. Notwithstanding anything herein
to the contrary, if at any time the interest rate applicable to any Loan,
together with all fees, charges and other amounts which may be treated as
interest on such Loan under applicable law (collectively, the “Charges”), shall
exceed the maximum lawful rate of interest (the “Maximum Rate”) which may be
contracted for, charged, taken, received or reserved by a Lender holding such
Loan in accordance with applicable law, the rate of interest payable in respect
of such Loan hereunder, together with all Charges payable in respect thereof,
shall be limited to the Maximum Rate and, to the extent lawful, the interest
and Charges that would have been payable in respect of such Loan but were not
payable as a result of the operation of this Section shall be cumulated and the
interest and Charges payable to such Lender in respect of other Loans or
periods shall be increased (but not above the Maximum Rate therefor) until such
cumulated amount, together with interest thereon at the Federal Funds Rate to
the date of repayment, shall have been received by such Lender.

          Section 10.13. Waiver of Effect of Corporate Seal. Each Borrower
represents and warrants that neither it nor any other Loan Party is required to
affix its corporate seal to this Agreement or any other Loan Document pursuant
to any requirement of law or regulation, agrees that this Agreement is
delivered such Borrower under seal and waives any shortening of the statute of
limitations that may result from not affixing the corporate seal to this
Agreement or such other Loan Documents.

ARTICLE XI

CROSS GUARANTY

          Section 11.1. Cross Guaranty. Each Borrower hereby agrees that such
Borrower is jointly and severally liable for, and hereby absolutely and
unconditionally guarantees to the Administrative Agent and the Lenders and
their respective successors and assigns, the full and prompt payment (whether
at stated maturity, by acceleration or otherwise) and performance of, all
Obligations owed or hereafter owing to the Administrative Agent and the Lenders
by each other Borrower. Each Borrower agrees that its guaranty obligation hereunder is a continuing guaranty of payment and
performance and not of collection, that its obligations under this Article XI
shall not be discharged until payment and performance, in full, of the
Obligations has occurred, and that its obligations under this Article XI shall
be absolute and unconditional, irrespective of, and unaffected by;

          (a) the genuineness, validity, regularity, enforceability or any future
amendment of, or change in, this Agreement, any other Loan Document or any
other agreement, document or instrument to which any Borrower is or may become
a party;

79

 

          (b) the absence of any action to enforce this Agreement (including this
Article XI) or any other Loan Document or the waiver or consent by the
Administrative Agent and the Lenders with respect to any of the provisions
thereof;

          (c) the existence, value or condition of, or failure to perfect its Lien
against, any security for the Obligations or any action, or the absence of any
action, by the Administrative Agent and the Lenders in respect thereof
(including the release of any such security);

          (d) the insolvency of any Loan Party; or

          (e) any other action or circumstances that might otherwise constitute a
legal or equitable discharge or defense of a surety or guarantor.

Each Borrower shall be regarded, and shall be in the same position, as
principal debtor with respect to the Obligations guaranteed hereunder.

          Section 11.2. Waivers by Borrowers. Each Borrower expressly waives all
rights it may have now or in the future under any statute, or at common law, or
at law or in equity, or otherwise, to compel the Administrative Agent or the
Lenders to marshal assets or to proceed in respect of the Obligations
guaranteed hereunder against any other Loan Party, any other party or against
any security for the payment and performance of the Obligations before
proceeding against, or as a condition to proceeding against, such Borrower. It
is agreed among each Borrower, the Administrative Agent and the Lenders that
the foregoing waivers are of the essence of the transaction contemplated by
this Agreement and the other Loan Documents and that, but for the provisions of
this Article XI and such waivers, the Administrative Agent and the Lenders
would decline to enter into this Agreement.

          Section 11.3. Benefit of Guaranty. Each Borrower agrees that the
provisions of this Article XI are for the benefit of the Administrative Agent
and the Lenders and their respective successors, transferees, endorsees and
assigns, and nothing herein contained shall impair, as between any other
Borrower and the Administrative Agent or the Lenders, the obligations of such
other Borrower under the Loan Documents.

          Section 11.4. Subordination of Subrogation, Etc. Notwithstanding anything
to the contrary in this Agreement or in any other Loan Document, and except as
set forth in Article XI., each Borrower hereby agrees not to exercise any and all rights at law or in equity to subrogation,
reimbursement, exoneration, contribution, indemnification or set off and any
and all defenses available to a surety, guarantor or accommodation co-obligor
until such time as the Obligations are paid in full and the Commitments and
this Agreement are terminated. Each Borrower acknowledges and agrees that this
provision is intended to benefit the Administrative Agent and the Lenders and
shall not limit or otherwise affect such Borrower’s liability hereunder or the
enforceability of this Article XI, and that the Administrative Agent, the
Lenders and their respective successors and assigns are intended third party
beneficiaries of the waivers and agreements set forth in this Section 11.4.

          Section 11.5. Election of Remedies. If the Administrative Agent or any
Lender may, under applicable law, proceed to realize its benefits under any of
the Loan Documents

80

 

giving the Administrative Agent or such Lender a Lien upon
any Collateral, whether owned by any Borrower or by any other Person, either by
judicial foreclosure or by non-judicial sale or enforcement, the Administrative
Agent or any Lender may, at its sole option, determine which of its remedies or
rights it may pursue without affecting any of its rights and remedies under
this Article XI. If, in the exercise of any of its rights and remedies, the
Administrative Agent or any Lender shall forfeit any of its rights or remedies,
including its right to enter a deficiency judgment against any Borrower or any
other Person, whether because of any applicable laws pertaining to “election of
remedies” or the like, each Borrower hereby consents to such action by the
Administrative Agent or such Lender and waives any claim based upon such
action, even if such action by the Administrative Agent or such Lender shall
result in a full or partial loss of any rights of subrogation that each
Borrower might otherwise have had but for such action by the Administrative
Agent or such Lender. Any election of remedies that results in the denial or
impairment of the right of the Administrative Agent or any Lender to seek a
deficiency judgment against any Borrower shall not impair any other Borrower’s
obligation to pay the full amount of the Obligations. In the event the
Administrative Agent or any Lender shall bid at any foreclosure or trustee’s
sale or at any private sale permitted by law or the Loan Documents, the
Administrative Agent or such Lender may bid all or less than the amount of the
Obligations and the amount of such bid need not be paid by the Administrative
Agent or such Lender but shall be credited against the Obligations. The amount
of the successful bid at any such sale, whether the Administrative Agent, the
Lender or any other party is the successful bidder, shall be conclusively
deemed to be the fair market value of the Collateral and the difference between
such bid amount and the remaining balance of the Obligations shall be
conclusively deemed to be the amount of the Obligations guaranteed under this
Article XI, notwithstanding that any present or future law or court decision or
ruling may have the effect of reducing the amount of any deficiency claim to
which Administrative Agent or any Lender might otherwise be entitled but for
such bidding at any such sale.

          Section 11.6. Limitation. Notwithstanding any provision herein contained
to the contrary, each Borrower’s liability under this Article XI (which
liability is in any event in addition to amounts for which such Borrower is
primarily liable under Article II) shall be limited to an amount not to exceed
as of any date the greater of:

          (a) the net amount of all Loans advanced to any other Borrower under this
Agreement and then re-loaned or otherwise transferred to, or for the benefit
of, such Borrower; and

          (b) the amount that could be claimed by the Administrative Agent and the
Lenders from such Borrower under this Article XI without rendering such claim
voidable or avoidable under Section 548 of Chapter 11 of the Bankruptcy Code or
under any applicable state Uniform Fraudulent Transfer Act, Uniform Fraudulent
Conveyance Act or similar statute or common law after taking into account,
among other things, such Borrower’s right of contribution and indemnification
from each other Borrower under Section 11.7.

          Section 11.7. Contribution with Respect to Guaranty Obligations.

          (a) To the extent that any Borrower shall make a payment under this
Article XI of all or any of the Obligations (other than Loans made to that
Borrower for which it is

81

 

primarily liable) (a
“Guarantor Payment”) that, taking
into account all other Guarantor Payments then previously or concurrently made
by any other Borrower, exceeds the amount that such Borrower would otherwise
have paid if each Borrower had paid the aggregate Obligations satisfied by such
Guarantor Payment in the same proportion that such Borrower’s “Allocable
Amount” (as defined below) (as determined immediately prior to such Guarantor
Payment) bore to the aggregate Allocable Amounts of each of the Borrowers as
determined immediately prior to the making of such Guarantor Payment, then,
following indefeasible payment in full in cash of the Obligations and
termination of the Commitments, such Borrower shall be entitled to receive
contribution and indemnification payments from, and be reimbursed by, each
other Borrower for the amount of such excess, pro rata based upon their
respective Allocable Amounts in effect immediately prior to such Guarantor
Payment.

          (b) As of any date of determination, the “Allocable Amount” of any
Borrower shall be equal to the maximum amount of the claim that could then be
recovered from such Borrower under this Article XI without rendering such claim
voidable or avoidable under Section 548 of Chapter 11 of the Bankruptcy Code or
under any applicable state Uniform Fraudulent Transfer Act, Uniform Fraudulent
Conveyance Act or similar statute or common law.

          (c) This Section 11.7 is intended only to define the relative rights of
Borrowers and nothing set forth in this Section 11.7 is intended to or shall
impair the obligations of Borrowers, jointly and severally, to pay any amounts
as and when the same shall become due and payable in accordance with the terms
of this Agreement, including Section 11.1. Nothing contained in this Section
11.7 shall limit the liability of any Borrower to pay the Loans made directly
or indirectly to that Borrower and accrued interest, Fees and expenses with
respect thereto for which such Borrower shall be primarily liable.

          (d) The parties hereto acknowledge that the rights of contribution and
indemnification hereunder shall constitute assets of the Borrower to which such
contribution and indemnification is owing.

          (e) The rights of the indemnifying Borrowers against other Credit Parties
under this Section 11.7 shall be exercisable upon the full and indefeasible
payment of the Obligations and the termination of the Commitments.

          Section 11.8.
Liability Cumulative. The liability of Borrowers under this
Article XI is in addition to and shall be cumulative with all liabilities of
each Borrower to the Administrative Agent and the Lenders under this Agreement
and the other Loan Documents to which such Borrower is a party or in respect of
any Obligations or obligation of the other Borrower, without any limitation as
to amount, unless the instrument or agreement evidencing or creating such other
liability specifically provides to the contrary.

(remainder of page left intentionally blank)

82

 

          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed under seal in the case of the Borrowers by their respective
authorized officers as of the day and year first above written.

	 	 	 	 	 
	 	 	CHECKFREE CORPORATION
	 
	 	 	 	 
	

	 	By
	 	/s/ David E. Mangum
	

	 	 	 	
 
	

	 	Name:
	 	David E. Mangum
	

	 	Title:
	 	Executive Vice President and
	

	 	 	 	Chief Financial Officer
	 
	 	 	 	 
	 	 	CHECKFREE SERVICES CORPORATION
	 
	 	 	 	 
	

	 	By
	 	/s/ David E. Mangum
	

	 	 	 	
 
	

	 	Name:
	 	David E. Mangum
	

	 	Title:
	 	Executive Vice President and
	

	 	 	 	Chief Financial Officer
	 
	 	 	 	 
	 	 	CHECKFREE INVESTMENT CORPORATION
	 
	 	 	 	 
	

	 	By
	 	/s/ David E. Mangum
	

	 	 	 	
 
	

	 	Name:
	 	David E. Mangum
	

	 	Title:
	 	Executive Vice President and
	

	 	 	 	Chief Financial Officer

[SIGNATURE PAGE TO REVOLVING CREDIT AGREEMENT]

 

 

	 	 	 	 	 
	 	 	SUNTRUST BANK, as Administrative Agent,
as Issuing Bank, as Swingline Lender and as a
Lender
	 
	 	 	 	 
	

	 	By
	 	/s/ Brian K. Peters
	

	 	 	 	
 
	

	 	Name:
	 	Brian K. Peters
	

	 	Title:
	 	Managing Director

[SIGNATURE PAGE TO REVOLVING CREDIT AGREEMENT]

 

 

	 	 	 	 	 
	 	 	BANK OF AMERICA, N.A. as a Lender
	 
	 	 	 	 
	

	 	By
	 	/s/ Brian L. Martin
	

	 	 	 	
 
	

	 	Name:
	 	Brian L. Martin
	

	 	Title:
	 	Vice President

[SIGNATURE PAGE TO REVOLVING CREDIT AGREEMENT]

 

 

	 	 	 	 	 
	 	 	KEYBANK NATIONAL ASSOCIATION as a
Lender
	 
	 	 	 	 
	

	 	By
	 	/s/ Jeff Kalinowski
	

	 	 	 	
 
	

	 	Name:
	 	Jeff Kalinowski
	

	 	Title:
	 	Vice President

[SIGNATURE PAGE TO REVOLVING CREDIT AGREEMENT]

 

 

	 	 	 	 	 
	 	 	US BANK, NATIONAL ASSOCIATION, as a
	

	 	Lender	 	 
	 
	 	 	 	 
	

	 	By
	 	/s/ John Holland
	

	 	 	 	
 
	

	 	Name:
	 	John Holland
	

	 	Title:
	 	Senior Vice President

[SIGNATURE PAGE TO REVOLVING CREDIT AGREEMENT]

 

 

	 	 	 	 	 
	 	 	BNP PARIBAS, as a Lender
	 
	 	 	 	 
	

	 	By
	 	/s/ Henry F. Setina
	

	 	 	 	
 
	

	 	Name:
	 	Henry F. Setina
	

	 	Title:
	 	Director
	 
	 	 	 	 
	

	 	By
	 	/s/ Jeff Tebeaux
	

	 	 	 	
 
	

	 	Name:
	 	Jeff Tebeaux
	

	 	Title:
	 	Vice President

[SIGNATURE PAGE TO REVOLVING CREDIT AGREEMENT]

 

 

	 	 	 	 	 
	 	 	REGIONS BANK, as a
Lender
 
	 

	 	By
	 	/s/ W. Brad Davis
	

	 	 	 	
 
	

	 	Name:
	 	W. Brad Davis
	

	 	Title:
	 	Vice President

[SIGNATURE PAGE TO REVOLVING CREDIT AGREEMENT]

 

 

	 	 	 	 	 
	 	 	BRANCH BANKING & TRUST COMPANY,
as a Lender
	 
	 	 	 	 
	

	 	By
	 	/s/ McKie M. Trottey
	

	 	 	 	
 
	

	 	Name:
	 	McKie M. Trottey
	

	 	Title:
	 	Vice President

[SIGNATURE PAGE TO REVOLVING CREDIT AGREEMENT]

 

 

	 	 	 	 	 
	 	 	MIZUHO CORPORATE BANK, LTD., as a
	

	 	Lender	 	 
	 
	 	 	 	 
	

	 	By
	 	/s/ Bertram Tang
	

	 	 	 	
 
	

	 	Name:
	 	Bertram Tang
	

	 	Title:
	 	Senior Vice President &
	

	 	 	 	Team Leader

[SIGNATURE PAGE TO REVOLVING CREDIT AGREEMENT]

 

 

ANNEX I

	 	 	 	 	 
	Lender
	 	Revolving Commitment Amount

	SunTrust Bank
	 	$	30,000,000	 
	Bank of America, N.A.
	 	$	30,000,000	 
	KeyBank National Association
	 	$	30,000,000	 
	US Bank, National Association
	 	$	25,000,000	 
	BNP Paribas
	 	$	25,000,000	 
	Regions Bank
	 	$	15,000,000	 
	Branch Banking & Trust Company
	 	$	15,000,000	 
	Mizuho Corporate Bank, Ltd.
	 	$	15,000,000	 

Annex 1

 

 

SCHEDULE I

APPLICABLE MARGIN AND APPLICABLE PERCENTAGE

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Applicable Margin	 	 	 	 	 	Applicable
	Pricing	 	 	 	 	 	for Eurodollar	 	Applicable Margin	 	Percentage for
	Level
	 	Leverage Ratio
	 	Loans
	 	for Base Rate Loans
	 	Commitment Fee

	I
	 	Less than 0.50: 1.00	 	 	1.00	%	 	 	0.00	%	 	 	0.20	%
	II
	 	Greater than or equal to 0.50:1.00 but less than 1.00:1.00	 	 	1.25	%	 	 	0.25	%	 	 	0.25	%
	III
	 	Greater than or equal to 1.00:1.00 but less than
1.50:1.00	 	 	1.50	%	 	 	0.50	%	 	 	0.30	%
	IV
	 	Greater than or equal  to 1.50:1.00	 	 	2.00	%	 	 	1.00	%	 	 	0.35	%<PAGE>

                                                                    EXHIBIT 10.1

                           METRETEK TECHNOLOGIES, INC.

                        INCENTIVE STOCK OPTION AGREEMENT
                            1998 STOCK INCENTIVE PLAN

      This INCENTIVE STOCK OPTION AGREEMENT (the "Agreement") is effective as of
the date set forth as the Grant Date in the attached Notice of Stock Option
Grant (the "Grant Date"), by and between Metretek Technologies, Inc., a Delaware
corporation (the "Company"), and the individual named as the Optionee in the
attached Notice of Stock Option Grant (the "Optionee").

                                    Recitals

      WHEREAS, the Company has adopted the Metretek Technologies, Inc. 1998
Stock Incentive Plan (as amended and/or restated from time to time, the "Plan");
and

      WHEREAS, pursuant to the provisions of the Plan, the Board of Directors of
the Company (the "Board") has authorized a grant to the Optionee of an option to
purchase shares of Common Stock, par value $.01 per share (the "Common Stock"),
of the Company on the terms and subject to the conditions set forth in this
Agreement;

                                    Agreement

      NOW, THEREFORE, in consideration of the premises, the parties hereto,
intending to be legally bound hereby, agree as follows:

      1.    Grant of Option. Upon the terms and conditions set forth in the
Plan, this Agreement and the attached Notice of Stock Option Grant, all of which
are incorporated herein by this reference the Company grants to the Optionee the
option (the "Option") to purchase the number of shares of Common Stock set forth
on the attached Notice of Stock Option Grant (the "Option Shares") at the
purchase price set forth on the attached Notice of Stock Option Grant (the
"Exercise Price"), which Exercise Price the Board of Directors has determined to
be equal to or greater than the fair market value of the Common Stock on the
Grant Date. Unless otherwise defined herein, all terms defined in the Plan and
used in this Agreement shall have the same respective meanings in this
Agreement. The Option is intended to qualify as an incentive stock option under
Section 422 of the Internal Revenue Code of 1986, as amended (the "Code").

      2.    Vesting of Option. The Option shall vest and become exercisable in
accordance with the vesting schedule set forth in the attached Notice of Stock
Option Grant.

      3.    Exercise of Option. The Option may be exercised by the Optionee (or
by any other person permitted by Section 8 hereof to exercise the Option) in
accordance with the following provisions:

<PAGE>

            (a)   Method of Exercise. The Option may be exercised, in whole or
in part, by giving written notice of exercise to the Company at its principal
executive offices stating the number of Option Shares to be purchased upon such
exercise, accompanied by payment in full of the Exercise Price for the Option
Shares to be purchased. Payment of the Exercise Price shall be made by any of
the following methods, or a combination thereof, at the election of the
Optionee:

                  (i)   Cash;

                  (ii)  Check, bank draft or money order made payable to the
                        Company;

                  (iii) Delivery of shares of Common Stock already owned by the
                        Optionee, surrendered in proper form for transfer and
                        valued at their Fair Market Value (as defined in the
                        Plan) on the date of delivery; or

                  (iv)  By irrevocable direction to a securities broker or
                        dealer acceptable to the Company to sell the Option
                        Shares and deliver all or part of the sales proceeds to
                        the Company.

            (b)   Delivery of Certificates. After payment in full for the Option
Shares purchased pursuant to the exercise of the Option has been received, the
Company shall deliver to the Optionee properly executed certificates
representing such Option Shares as promptly thereafter as is reasonably
practicable.

            (c)   Tax Withholding. In the event that the Company determines that
it is required to withhold any tax as a result of the exercise of the Option,
the Optionee, as a condition to the exercise of this option, shall make
arrangements satisfactory to the Company to enable it to satisfy all withholding
requirements. The Optionee shall also make arrangements satisfactory to the
Company to enable it to satisfy any withholding requirements that may arise in
connection with the vesting or disposition of Option Shares purchased by
exercising this option.

      4.    Expiration of the Option.

            (a)   Expiration Date. The Option shall expire upon the "Expiration
Date" set forth in the attached Notice of Stock Option Grant (the "Expiration
Date"); provided, however, that if the Optionee ceases to be an employee of the
Company or of any Subsidiary (as defined in the Plan) of the Company prior to
the Expiration Date, then the Optionee's right to exercise the Option, to the
extent it is otherwise then exercisable pursuant to Section 2 hereof, shall be
limited as provided in this Section 4.

            (b)   Death. In the event of the death of the Optionee, the Option
may continue to be exercised, to the extent the Option is otherwise exercisable
on the date of the Optionee's death (and without any further vesting), by the
Optionee's estate, personal representative or beneficiary,

<PAGE>

until the earlier of the Expiration Date or one year after the date of death, on
which date the Option shall expire.

            (c)   Disability. In the event the Optionee's employment with the
Company is terminated due to a "permanent disability" of the Optionee, then the
Option may continue to be exercised, to the extent the Option is otherwise
exercisable on the date of termination of employment (and without any further
vesting), until the earlier of the Expiration Date or one year after the date of
termination, on which date the Option shall expire. For purposes hereof, a
"permanent disability" shall be deemed to be the physical or mental inability of
the Optionee to perform the Optionee's duties to the Company because of a
physical or mental disability expected to last for a continuous period of at
least one year.

            (d)   Termination of Employment. In the event the Optionee's
employment with the Company is terminated for any reason other than those
provided in Subsections (b) or (c) above, then the Option may continue to be
exercised, to the extent the Option is otherwise exercisable on the date of
termination (and without any further vesting), until the earlier of the
Expiration Date or the date that is three months after the date of termination
of Optionee's employment, on which date the Option shall expire. For purposes of
this Agreement, an Optionee shall be deemed to be "employed" by the Company so
long as the Optionee is an employee, director, officer, consultant or advisor of
the Company or any Subsidiary (as defined in the Plan) of the Company.

            (e)   Transfer to Related Subsidiary. In the event the Optionee
ceases to be an employee of the Company in order to become an employee of any
subsidiary of the Company, or the Optionee ceases to be an employee of any such
subsidiary in order to become an employee of the Company or of another
subsidiary of the Company, then the Optionee shall be deemed to continue as an
employee of the Company for all purposes of this Agreement.

      5.    Change In Control. In the event of a "Change in Control" (as defined
in the Plan), subject to the applicable restrictions set forth in the Plan, for
a period of 60 days following a Change in Control, the Optionee may elect to
surrender any outstanding portion of the Option and to receive, in full
satisfaction therefor, a cash payment equal to the value of the Option
calculated on the basis of the Change in Control Price (as defined in the Plan)
of any Option Shares or the Fair Market Value of any property other than Option
Shares relating to such Option; provided, however, that in the case of a Change
in Control described in Section 9(b)(i)(C) or (D) of the Plan, the payment
described in this sentence shall not necessarily be made in cash but instead may
be made in the same form (i.e., cash, shares of Common Stock, other securities
or a combination thereof) as holders of shares of Common Stock receive in
exchange for their shares of Common Stock in the transaction that results in the
Change in Control. The rights of the Optionee in the event of a Change in
Control shall be governed by the Plan.

      6.    Adjustments in the Common Stock.

            (a)   In the event that any dividend or other distribution (whether
in the form of cash, Shares, other securities or other property),
recapitalization, forward or reverse stock split, reorganization, merger,
consolidation, split-up, combination, spin-off, combination, repurchase,

<PAGE>

liquidation, dissolution, exchange of shares of Common Stock or other securities
of the Company, or other similar corporate transaction or event affects the
shares of Common Stock such that an adjustment is necessary or determined by the
Board to be appropriate in order to prevent dilution or enlargement of the
Optionee's rights under this Agreement, then the Board shall proportionately
adjust any or all of (i) the number and kind of Option Shares which may
thereafter be issued in connection with the Option; (ii) the number and kind of
Option Shares issued or issuable with respect to outstanding Options; and (iii)
the Purchase Price.

            (b)   The grant of this Option shall not affect in any way the right
of the Company to adjust, reclassify, reorganize, or otherwise change its
capital or business structure or to merge, consolidate, dissolve, liquidate or
sell or transfer all or any part of its business or assets.

      7.    Legality of Initial Issuance.

            No Option Shares shall be issued upon the exercise of this Option
unless and until the Company has determined that:

            (a)   the Company has taken all actions required to register the
Option Shares under the Securities Act or to perfect an exemption from the
registration requirements thereof;

            (b)   any applicable listing requirement of any stock exchange or
other securities market on which the Common Stock is listed or traded has been
satisfied; and

            (c)   any other applicable provision of state or federal law has
been satisfied.

      8.    Transferability of the Option. The Option shall be transferable by
the Optionee only as follows:

            (a)   By will or the laws of descent and distribution; or

            (b)   Pursuant to a Qualified Domestic Relations Order as defined
under the Code or Title I of the Employee Retirement Income Security Act of
1974.

      9.    Plan Controls. This Option is granted pursuant to, and shall be
interpreted in a manner consistent with, the Plan. Any provision of this Option
that is inconsistent or in conflict with any provision of the Plan shall be
deemed to be superseded and governed by the provision of the Plan. All terms and
conditions of the Plan applicable to the Option which are not set forth in this
Agreement shall be deemed to be incorporated herein by this reference. Optionee
acknowledges he has received a copy of the Plan prior to executing this
Agreement.

      10.   No Rights As Stockholder Until Exercise. The Optionee shall have no
rights as a stockholder with respect to the Option Shares unless and until such
time as the Optionee has exercised the Option by delivering a properly completed
and executed notice of exercise and has paid in full the Purchase Price for the
number of Option Shares for which the Option is to be so exercised in accordance
with Section 2 hereof and certificates representing the Option Shares have

<PAGE>

been issued to the Optionee with respect thereto. Except as expressly provided
in the Plan and Section 6 hereof with respect to certain changes in the
capitalization of the Company, no adjustment in the number of Options or the
Purchase Price shall be made for dividends or similar rights for which the
record date is prior to such date of exercise.

      11.   No Right to Employment. Nothing contained in the Plan or this
Agreement shall confer, and the grant of the Option shall not be construed as
conferring, upon the Optionee, any right to continue in the employ or service of
the Company or any Subsidiary of the Company or interfering in any way with the
right of the Company or any Subsidiary of the Company to (a) terminate the
Optionee's employment or service at any time, or (b) increase or decrease the
compensation of the Optionee from the rate in existence at the time of granting
the Option.

      12.   Compliance with Rule 16b-3. If Rule 16b-3 promulgated under the
Securities Exchange Act of 1934, as amended, or any successor provision applies
to the Optionee or to the grant of the Option pursuant to the Plan to the
Optionee, then the grant of the Option hereunder is intended to be in compliance
with one or more of the exemptions provided in Rule 16b-3.

      13.   Miscellaneous.

            (a)   Notices. Any notice required or permitted to be given under
this Agreement shall be in writing and shall be deemed given when sent by first
class certified or registered mail, postage prepaid, return receipt requested,
or by personal delivery, addressed as follows:

                  (i)   If to the Company, at its principal executive offices;
                        or

                  (ii)  If to the Optionee, at the address set forth below his
                        signature on the attached Notice of Stock Option Grant.

The addresses for such notices may be changed from time to time by written
notice given in the manner provided for herein.

            (b)   Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of Delaware, without regard
to provisions governing conflicts of laws.

            (c)   Entire Agreement.This Agreement (along with the Plan)
constitutes the entire agreement and understanding between the parties hereto
regarding the subject matter hereof, and supersedes all prior written or oral
agreements, understandings and communications between the parties related to the
subject matter of this Agreement.

            (d)   Amendment. This Agreement may be modified, amended or
rescinded only by a written Agreement executed by all parties hereto.

<PAGE>

            (e)   Severability. If any provision of the Plan, this Agreement or
the Option is or becomes or is deemed to be invalid, illegal or unenforceable in
any jurisdiction, or would disqualify the Plan, this Agreement or the Option
under any law, this Agreement and the Option shall be deemed amended to conform
to applicable laws or, if it cannot be construed or deemed without, in the
determination of the Board, materially altering the intent of the Agreement and
the Option, it shall be deleted and the remainder of the Agreement shall remain
in full force and effect. If any of the terms or provisions of this Agreement or
the Option conflict with the requirements of applicable law or applicable rules
and regulations thereunder, including the requirements of Rule 16b-3, then such
terms or provisions shall be deemed inoperative to the extent necessary to avoid
the conflict with applicable law, or applicable rules and regulations, without
invalidating new remaining provisions hereof.

            (f)   Successor and Assigns. This Agreement shall be binding upon
and inure to the benefit of the parties hereto and their respective successors
and permitted assigns.

            (g)   Specific Performance and Remedies. The rights of the parties
under this Agreement are unique and, accordingly, the parties shall have the
right to, in addition to any other remedies as may be available to any of them
at law or in equity, to enforce their rights hereunder by actions for specific
performance in addition to any other legal or equitable remedies that they might
have to the extent permitted by law. All rights and remedies of the Company and
of the Optionee enumerated in this Agreement shall be accumulative, and, except
as expressly provided otherwise in this Agreement, none shall exclude any other
rights or remedies allowed by law or in equity, and each of said rights or
remedies may be exercised and enforced concurrently.

            (h)   Waivers. Any of the provisions of this Agreement may be waived
by an instrument in writing with the consent of the party or parties whose
rights are being waived. Any waiver of a breach of any provision of this
Agreement shall not operate or be construed as a waiver of any subsequent breach
of that provision or of any other provision hereof.

            (i)   Captions. The captions contained in this Agreement are
included for convenience of reference only and do not define, limit, explain or
modify this Agreement or its interpretation, construction or meaning and are in
no way to be construed as a part of this Agreement.

            (j)   Construction. For purposes of this Agreement, the following
rules of construction shall apply: (i) the word "or" is disjunctive but not
necessarily exclusive; and (ii) the number and gender of each pronoun shall be
construed to be such number and gender as the context, circumstances or its
antecedent may require.

(End of Incentive Stock Option Agreement)

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